Core Viewpoint - Ningbo Feishi Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with CICC as the sole sponsor, amid a growing trend of electric drive companies seeking dual listings in Hong Kong and A-shares [1][2]. Financial Performance - The company has faced a "revenue growth without profit" situation, with reported revenues of 1.376 billion yuan, 1.243 billion yuan, 1.5 billion yuan, and 909.19 million yuan for the years 2022, 2023, 2024, and the first half of 2025 respectively, while incurring losses of 130 million yuan, 112 million yuan, 177 million yuan, and 21.26 million yuan during the same periods [3][4]. - Cumulative losses over three and a half years reached 440 million yuan, primarily due to strategic investments in new energy vehicle solutions and significant impairment losses on financial and contract assets [3][4]. Business Structure - The main business segments include new energy vehicle solutions, special precision electric drive systems, industrial automation solutions, and other services, with the new energy vehicle segment rapidly growing to account for 60.4% of total revenue in the first half of 2025, up from 36.3% in the same period of 2024 [5][6]. - The company has secured 21 projects from commercial vehicle manufacturers and 26 projects from passenger vehicle manufacturers, with 21 projects already in mass production [5][8]. Market Dynamics - The global electric drive solutions market is projected to grow from 278.5 billion yuan in 2020 to 471.3 billion yuan in 2024, and is expected to reach 957.4 billion yuan by 2029, with the Chinese market showing a compound annual growth rate of 18.6% [10][12]. - The demand for electric drive solutions is driven by the urgent need for green and low-carbon transformation in industrial and transportation sectors, with new energy vehicle production in China reaching 12.672 million units in the first ten months of 2025, a year-on-year increase of 28.1% [12]. Competitive Position - As of 2024, Ningbo Feishi is the second-largest supplier of specialized electric drive solutions in China's industrial control sector, with a market share of 6.6% [13][14]. - Despite its leading position, the company faces challenges such as low gross margins, cash flow pressures, and high customer concentration, which could impact its profitability and long-term growth potential [8][14].

Core Viewpoint - Ningbo Feishi Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with CICC as the sole sponsor, amid a growing trend of electric drive companies seeking dual listings in Hong Kong [1][2]. Company Overview - Established in November 2001, Feishi Technology is a leading provider of electric drive solutions in China, offering customized systems characterized by high precision, efficiency, and torque, widely applied in various industrial sectors [2]. Financial Performance - The company has faced challenges with profitability, reporting revenues of 1.376 billion yuan, 1.243 billion yuan, 1.500 billion yuan, and 909.19 million yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively. During the same periods, net losses were 130 million yuan, 112 million yuan, 177 million yuan, and 21.26 million yuan, totaling 440 million yuan in losses over three and a half years [3][4]. - Despite a 58% year-on-year revenue increase in the first half of 2025, driven by the rapid growth of the new energy vehicle (NEV) solutions business, the company still reported a net loss of 21.26 million yuan [3][4]. Business Structure - The main business segments include NEV solutions, precision electric drive systems, industrial automation solutions, and other services. The NEV solutions segment has rapidly grown, accounting for 60.4% of total revenue in the first half of 2025, up from 36.3% in the same period of 2024 [5]. - The company has secured 21 projects with commercial vehicle manufacturers and 26 projects with passenger vehicle manufacturers, with 21 projects already in mass production [5]. Profitability and Margins - The gross margin has shown fluctuations, recorded at 8.29%, 14.26%, 16.13%, and 14.64% from 2022 to the first half of 2025 [6]. - The NEV solutions segment has a low gross margin of 1.5%, despite increasing sales volume from 96,700 units in 2022 to 131,800 units in the first half of 2025, with average selling prices dropping from 5,763 yuan to 4,166 yuan [5][6]. Customer Concentration and Risks - The company has a high customer concentration, with the top five customers accounting for 64.7% of revenue in the first half of 2025, up from 53% in 2022. This reliance on a few customers poses risks to profitability [7][8]. - Financial pressures are evident, with negative cash flow from operating activities in most reporting periods, and high levels of accounts receivable, indicating potential liquidity issues [8]. Industry Context - The global electric drive solutions market is projected to grow from 278.5 billion yuan in 2020 to 471.3 billion yuan in 2024, with China expected to see a compound annual growth rate of 18.6% [10]. - The demand for electric drive solutions is driven by the urgent need for carbon reduction in industrial and transportation sectors, with the NEV market in China experiencing significant growth, achieving a penetration rate of 46.4% by October 2025 [12]. Competitive Position - Feishi Technology ranks as the second-largest supplier of specialized electric drive solutions in China's industrial control sector, with a market share of 6.6% as of 2024 [13][14]. - Despite its leading position, the company faces challenges in converting competitive advantages into sustainable profitability due to low margins, cash flow constraints, and high customer concentration [14].

Core Viewpoint - Feishi Technology is attempting a second IPO on the Hong Kong Stock Exchange after failing to list on the Sci-Tech Innovation Board, focusing on electric drive solutions but has not yet achieved profitability [1] Group 1: Company Overview - Feishi Technology, established in 2001, is a global supplier of electric drive solutions, providing comprehensive and customized electric drive systems primarily for industrial control and new energy vehicles [1] - The company was previously unsuccessful in its IPO attempt on the Sci-Tech Innovation Board in 2021, where it aimed to raise 1.6 billion RMB [1] - As of 2024, Feishi Technology is the second-largest supplier of specialized electric drive solutions in China's industrial control sector and the sixth-largest third-party supplier of electric drive systems for passenger vehicles [1] Group 2: Financial Performance - Feishi Technology has not yet turned a profit, with projected revenues of 1.376 billion RMB, 1.243 billion RMB, and 1.5 billion RMB for 2022, 2023, and 2024 respectively, alongside losses of 130 million RMB, 112 million RMB, and 177 million RMB for the same years [1][2] - For the first half of 2025, the company reported a revenue increase of 58%, with losses narrowing, attributed to growth in its new energy vehicle solutions business, which increased its revenue share from 36.3% in 2024 to 60.4% [2] Group 3: Future Plans and Shareholder Structure - The company plans to increase investment in R&D, deepen its globalization strategy, and expand its application scenarios while building a top talent team through industry-academia collaboration [3] - The major shareholders include Ren Wenjie and Hu Jin, who collectively hold approximately 49.48% of the company, with other investors including Beijing-Tianjin-Hebei Fund and Shenzhen Saifu [3] - Feishi Technology transitioned from a Sino-foreign joint venture to a domestic enterprise in 2015, and established a research center in Italy in 2018 [3]

Macro Strategy - The "Innovation Bull" market is entering a consolidation phase, driven by a positive cycle of capital pricing and industrial implementation under policy guidance [1][13] - Current macro policies are still being implemented, and the "KOT" valuation system is gradually improving, with medium to long-term funds expected to enter the market annually [1][13] - Market liquidity and valuations have improved, with public fund net values exceeding 1, indicating potential for accelerated fund issuance [1][13] - The market is likely to extend towards technology sectors such as computing power, chips, robotics, and energy storage as the "Innovation Bull" evolves into a comprehensive bull market [1][13] Fixed Income - The report discusses how to identify arbitrage opportunities in the Sci-Tech Bond ETF component bonds, focusing on bonds with an implied rating of AA+ or higher and smaller issuance sizes [2][14] - The report emphasizes the importance of liquidity and credit quality in selecting bonds for inclusion in the ETF, with a preference for bonds issued by central state-owned enterprises [2][14] - The report highlights the potential for price appreciation of bonds that are included in the ETF due to passive fund inflows [2][15] Industry Analysis - The report identifies the "brain" as a key component in the development of embodied intelligence, with various companies exploring different technological paths [4][16] - The embodied intelligence market is expected to grow rapidly, with significant investment in brain technology, which is seen as the most critical and challenging aspect of the market [4][16] - Key players in the market include companies like 品茗科技, 银河通用, and Tesla, among others, with a recommendation to focus on these related stocks [4][16] Company Recommendations - 派能科技 (688063) is projected to recover from impairment and exchange rate impacts, with expected net profits of 1.0/5.0/7.2 billion yuan for 2025-2027, reflecting significant growth [5][17] - 巨子生物 (02367.HK) has received approval for its first type I recombinant collagen product, which is expected to drive growth in the medical beauty sector, with projected net profits of 25.66/32.14/40.46 billion yuan for 2025-2027 [6][18] - 联合动力 (301656) reported a slight decline in net profit but maintains a positive long-term outlook, with expected net profits of 11.3/16.8/25.8 billion yuan for 2025-2027 [7][21] - 杰瑞股份 (002353) continues to show growth potential with projected net profits of 30/35/40 billion yuan for 2025-2027, despite short-term delivery challenges [8][22]

Core Viewpoint - The company reported a revenue of 1.899 billion yuan for 1H25, representing a year-on-year increase of 26.0%, and a net profit attributable to shareholders of 40 million yuan, up 69.5% year-on-year, although the performance slightly missed expectations due to higher-than-expected expense growth [1] Financial Performance - For 1H25, the company achieved a revenue of 1.899 billion yuan, with a net profit of 40 million yuan and a non-recurring net profit of 25 million yuan, marking a turnaround from losses year-on-year [1] - In 2Q25, revenue was 939 million yuan, showing a quarter-on-quarter increase of 42.4% but a slight decline of 2.1% compared to the previous quarter; net profit was 13 million yuan, reflecting a year-on-year turnaround but a quarter-on-quarter decrease of 49.8% [1] Business Segments - The smart equipment business generated revenue of 1.117 billion yuan in 1H25, down 3.8% year-on-year, attributed to the company's focus on order quality; the electric drive business saw revenue of 781 million yuan, up 126.1% year-on-year, driven by significant projects with major clients [2] - The company secured over 1.8 billion yuan in new orders in 1H25, with more than 500 million yuan from overseas projects, indicating steady progress in its major client and international strategies [2] Profitability and Cost Management - The gross margins for the smart equipment and electric drive segments improved to 17.4% and 12.8%, respectively, benefiting from enhanced order quality and product structure optimization [3] - The expense ratio for 2Q25 was 15.3%, with management expenses slightly decreasing and R&D expenses increasing quarter-on-quarter [3] Future Outlook - The company is exploring opportunities in the humanoid robotics sector, positioning itself as a solution provider for industrial applications and aiming to leverage its technological expertise in smart equipment and electric control [3] - The company maintains its profit forecasts for 2025 and 2026 at 150 million yuan and 210 million yuan, respectively, with a target price increase of 35.1% to 38.5 yuan, indicating an 18.75% upside potential from the current stock price [4]

Core Viewpoint - Wolong Electric Drive has officially launched its IPO journey in Hong Kong after releasing its complete prospectus, positioning itself as a key player in the electric drive systems and robotics sectors [1] Company Overview - Wolong Electric Drive is a leading global provider of electric drive system solutions, focusing on research, production, sales, and services across five core business segments: explosion-proof electric drive systems, industrial electric drive systems, HVAC electric drive systems, new energy transportation electric drive systems, and robotic components and systems [1][4] Financial Performance - The company reported revenues of approximately 14.27 billion yuan, 15.57 billion yuan, and 16.25 billion yuan for the years 2022, 2023, and 2024 respectively, with net profits of 839 million yuan, 553 million yuan, and 832 million yuan for the same years [2] Market Position - According to data from Frost & Sullivan, Wolong Electric Drive ranks first in the global explosion-proof electric drive system market with a market share of about 4.5%, fourth in the industrial electric drive system market with a 2.8% share, and fifth in the HVAC electric drive system market with a 2.0% share [3] International Expansion - The company has a significant overseas business presence due to strategic acquisitions of various electric drive companies, particularly in Europe and the U.S., establishing a strong global footprint [4] Robotics Business - Although the company's robotics components and systems currently represent a small portion of its overall business, it has garnered high market valuations due to future growth prospects in the robotics sector [5][6] Strategic Partnerships - Wolong Electric Drive has formed a strategic partnership with Shanghai Zhiyuan New Technology Co., becoming a significant shareholder and establishing a joint innovation center, which enhances its position in the robotics market [6] Industry Trends - The trend of robotics companies seeking IPOs in Hong Kong has gained momentum, with several firms successfully listing, which has bolstered confidence in the market [7]

Group 1 - Wuxi Xingqu Technology Co., Ltd. successfully completed a Series B financing round, led by semiconductor leader Chiplink Integration and market-oriented industrial capital [2] - The financing will be used for mass production of a new generation of ultra-integrated electric drive systems, research and development of silicon carbide technology, and global market expansion [2] - Xingqu Technology, established in 2021, is a high-performance electric drive company backed by Geely Holding Group and has nearly 20 years of R&D and manufacturing experience in power transmission systems and electronic components [2] Group 2 - The first phase of Xingqu Technology's factory has an annual production capacity of 300,000 electric drive systems and 250,000 motors, with an average capacity utilization rate exceeding 100% in 2024 [3] - The second phase of the project, covering 60,000 square meters, is expected to be topped out by the end of this year, with total electric drive system capacity projected to exceed 1 million units and motor capacity to exceed 2.5 million units by 2026 [3] - Since its establishment, Xingqu Technology has completed a full product line layout for pure electric and hybrid electric drives and has successfully expanded its customer base to over a dozen domestic and international clients [3]