Summary of the Conference Call for Ju Yi Technology Company Overview - **Company**: Ju Yi Technology - **Period**: First half of 2025 - **Revenue**: 1.899 billion RMB, a year-on-year increase of 25.9% [2][6] - **Net Profit**: Significant improvement with a net profit growth of 69.48% [3][6] Key Highlights Financial Performance - **Q2 Revenue Growth**: Q2 revenue increased by 42.45% year-on-year [2][6] - **Gross Margin**: Overall gross margin improved to 15.52%, with smart equipment at 17.43% and motor control at 12.79% [2][8] - **Operating Cash Flow**: Increased by 15.83% to 137 million RMB [2][3] - **Cash and Equivalents**: Grew by 42% to 1.097 billion RMB [2][3] Business Segments Smart Equipment - **Stable Performance**: New orders exceeded 1.8 billion RMB, with over 500 million RMB from overseas [2][5] - **Key Partnerships**: Collaborations with major automotive companies like BYD, Geely, and Tesla, accounting for over 80% of revenue [2][5] Motor Control Components - **Explosive Growth**: Revenue increased by over 100% year-on-year, with overseas revenue growing by over 150% [2][5] - **New Projects**: Significant increase in orders from clients like Ideal, Vietnam VF, and Changan [2][5] Strategic Initiatives R&D Investment - **R&D Spending**: 136 million RMB, a 22.47% increase, representing 7.14% of revenue [4][9] - **Focus Areas**: Development in smart connections, automation technology, and AI integration [4][10] Future Outlook - **Profitability Expectations**: Motor control business expected to reach breakeven, with potential profitability next year [4][15] - **International Expansion**: Plans to enhance international operations and supply chain channels [11][38] Operational Improvements - **Cost Management**: Reduction in three expense ratios by 0.37 percentage points [3][8] - **Accounts Receivable**: Decreased by 194 million RMB, with a credit impairment reversal of 10.04 million RMB [2][3][18] Market Positioning - **Automation in Assembly**: Focus on increasing automation in assembly lines, addressing the need for higher efficiency [31][32] - **AI Integration**: Ongoing development of AI applications to enhance operational efficiency and product quality [37][40] Conclusion - **Management Confidence**: Positive outlook for the second half of 2025, with expectations of improved business scale and operational efficiency [15][16][17]