Core Viewpoint - The company reported a revenue of 985 million yuan and a net profit of 161 million yuan for the first half of 2025, indicating a year-on-year growth of 8.91% and 14.27% respectively, driven by stable performance in traditional home appliances and expansion in the new energy vehicle and industrial commercial sectors [1][2]. Group 1: Financial Performance - The company achieved a revenue of 985 million yuan in the first half of 2025, reflecting an 8.91% increase year-on-year [1]. - The net profit attributable to shareholders reached 161 million yuan, marking a 14.27% growth compared to the previous year [1]. Group 2: Business Expansion - The company’s electric heating components are widely used in various applications, including kitchen, clothing care, bathroom, and HVAC, with significant progress in the cleaning appliance category [1]. - The demand for battery thermal management in new energy vehicles has increased, leading to a rapid growth in the sales of heating components, with the company entering the supply chains of several domestic and joint venture brands [2]. Group 3: Strategic Development - The company plans to continue increasing R&D investment focused on energy-saving and intelligent electric heating components, while also enhancing production capacity and delivery capabilities to meet diverse and global customer needs [3]. - The business structure of "traditional stability + emerging growth" is seen as strategically valuable, providing stable cash flow from home appliances while benefiting from long-term growth potential in new energy vehicle heating and industrial equipment sectors [2].

Core Viewpoint - The recent financial report of Heatway Co., Ltd. (603075) shows positive growth in revenue and net profit for the first half of 2025, indicating improved profitability and operational efficiency [1]. Financial Performance - The total revenue for the first half of 2025 reached 985 million yuan, an increase of 8.91% year-on-year - The net profit attributable to shareholders was 161 million yuan, up 14.27% year-on-year - In Q2 2025, total revenue was 531 million yuan, reflecting a 9.21% increase year-on-year, while net profit for the quarter was 91.78 million yuan, a rise of 9.98% year-on-year - Gross margin improved to 31.75%, up 1.71% year-on-year, and net margin increased to 16.25%, up 5.05% year-on-year - Total operating expenses (selling, administrative, and financial expenses) amounted to 65.67 million yuan, accounting for 6.66% of revenue, a decrease of 9.14% year-on-year [1]. Key Financial Metrics - Earnings per share (EPS) rose to 0.40 yuan, an increase of 14.29% year-on-year - Operating cash flow per share surged to 0.35 yuan, a significant increase of 296.49% year-on-year - The company's net asset per share was 4.96 yuan, up 2.92% year-on-year [1]. Changes in Financial Items - Significant changes in financial items include a 32.03% decrease in trading financial assets due to the maturity of large deposits - Accounts receivable increased by 18.63% to 509 million yuan, attributed to revenue growth - Interest-bearing liabilities decreased by 14.39% to 318 million yuan, indicating improved debt management - The net cash flow from operating activities saw a dramatic increase of 299.01% due to early sales of receivables [3]. Business Operations - The company reported a return on invested capital (ROIC) of 12.57% for the previous year, indicating strong capital returns - The net profit margin was recorded at 15.51%, reflecting high added value in products or services [4]. - The company has a balanced revenue stream, with 44.32% from domestic sales and 55.68% from exports [6]. Product and Market Focus - The company exports various electric heating components, including those for civilian, commercial, industrial, and new energy vehicles - The electric heating components for new energy vehicles are already in use by major brands such as Mercedes-Benz, BMW, and Volkswagen [9]. - The sales model primarily involves direct sales, as most products are customized and developed in collaboration with clients [10]. Employee Incentives - The company implemented its first stock incentive plan in 2024, which will vest over two years, aiming to align employee benefits with company growth [8].

Summary of Key Points Core Viewpoint The report outlines the fundraising activities and the actual usage of the raised funds by Hangzhou Rewei Electric Heating Technology Co., Ltd. for the first half of 2025, detailing the total amount raised, the allocation of funds, and the management of these funds. Fundraising Overview - The company raised a total of RMB 924.23 million by issuing 40,010,000 shares at RMB 23.10 per share, with a net amount of RMB 805.63 million after deducting issuance costs [1][2]. - The funds were fully received by September 5, 2023, and verified by Tianjian Accounting Firm [2]. Fund Usage and Balance - As of June 30, 2025, the actual usage of the raised funds was RMB 396.25 million, with a remaining balance of RMB 395.04 million [2][3]. - The breakdown of fund usage includes: - Project investments: RMB 363.18 million - Permanent working capital supplementation from oversubscription: RMB 27 million - Net interest income: RMB 12.67 million [2][3]. Fund Management - The company has established a fund management system to ensure the effective use of raised funds, including opening dedicated bank accounts and signing tripartite supervision agreements with banks and sponsors [2][3]. - As of June 30, 2025, the company maintained six dedicated fundraising accounts with a total balance of RMB 172.31 million [3]. Temporary Fund Supplementation - The company approved the temporary use of up to RMB 200 million of idle funds for working capital, with RMB 20 million still outstanding as of the report date [4]. - Additionally, the company is authorized to use up to RMB 480 million of idle funds for cash management, investing in low-risk, high-liquidity products [4][5]. Oversubscription Fund Usage - The company has utilized RMB 13.50 million of oversubscription funds for permanent working capital supplementation, with no other uses reported for ongoing or new projects [5][6]. Other Fund Usage Situations - The company has not reported any significant issues regarding the disclosure and usage of the raised funds, ensuring timely and accurate reporting [6][7]. - There have been no changes in the investment projects funded by the raised capital during the reporting period [6][8].

Investment Rating - The report assigns a "Buy" investment rating for the company, marking the first coverage of the stock [7]. Core Views - The company is positioned to benefit from the dual drivers of new energy and intelligent manufacturing, with steady expansion across multiple business areas [3]. - The demand for electric heating components is expected to grow significantly due to the rapid increase in new energy vehicle production and sales, which are projected to reach 12.89 million units in 2024, reflecting a year-on-year growth of 34.4% [3]. - The company has established itself as a primary supplier of thermal management systems for new energy vehicles, leveraging various heating technologies to meet the green and low-carbon trends [3]. Summary by Sections Market Performance - The company's stock performance is compared against the CSI 300 index, indicating a positive trend [2]. Business Dynamics - In 2024, the company's revenue from electric heating components for new energy vehicles reached 157 million yuan, a year-on-year increase of 28.95%, with a gross margin of 31.61% [4]. - The production volume of electric heating components for new energy vehicles reached 3.05 million units, a 90.63% increase year-on-year, while the shipment volume was 2.52 million units, up 45.66% year-on-year [4]. - The company has deepened collaborations with several global clients, enhancing its international and diversified customer base [4]. Capacity and Profitability - The company has established production capacity in Zhejiang and Thailand, utilizing flexible manufacturing and automation to improve delivery capabilities [5]. - The gross margin for the electric heating components business improved to 30.72% in 2024, an increase of 0.7 percentage points from 2023, with net profit growing by 19.90% year-on-year [5]. - In Q1 2025, the company reported revenue of 454 million yuan, a year-on-year increase of 8.56%, and a net profit of 68.82 million yuan, up 20.54% year-on-year [5]. Earnings Forecast - The company is projected to achieve revenues of 2.122 billion yuan, 2.340 billion yuan, and 2.554 billion yuan for the years 2025, 2026, and 2027, respectively [9]. - The earnings per share (EPS) are forecasted to be 0.90 yuan, 1.04 yuan, and 1.17 yuan for the same years, with corresponding price-to-earnings (P/E) ratios of 23.5, 20.2, and 18.0 [7][9].