Core Viewpoint - The company reported a significant "revenue decrease but profit increase" in the third quarter and the first three quarters of 2025, alongside plans to spin off its subsidiary for a listing on the Sci-Tech Innovation Board [1][2] Financial Performance - In Q3 2025, the company achieved operating revenue of 2.237 billion yuan, a year-on-year decrease of 7.56% [1] - The net profit attributable to shareholders in Q3 was 321 million yuan, reflecting a year-on-year increase of 21.22% [1] - For the first three quarters of 2025, the company reported operating revenue of 6.466 billion yuan, down 4.10% year-on-year [1] - The net profit attributable to shareholders for the first three quarters was 899 million yuan, up 21.73% year-on-year [1] Reasons for Revenue Decline - The company attributed the revenue decline to a decrease of 842 million yuan in other business income compared to the previous year, while the main business income increased by 566 million yuan, representing a growth of 9.68% year-on-year [1] Spin-off Plans - The company plans to spin off its subsidiary, Zhejiang Huandong Robot Joint Technology Co., Ltd. (Huandong Technology), for a listing on the Sci-Tech Innovation Board, with the application accepted by the Shanghai Stock Exchange on November 25, 2024 [1] - As of the end of Q3 2025, the spin-off process is progressing smoothly [1] Company Profile - The company is a leading global gear manufacturer, with products spanning traditional fuel vehicles, new energy vehicles, rail transportation, non-road machinery, industrial robots, industrial reducers, and consumer gears [2] - It serves well-known domestic and international clients, including ZF, Cummins, Caterpillar, SAIC, and FAW [2]

Business Segment Performance - In 2024, the automotive gear business generated revenue of 391 million CNY, accounting for 58.79% of total revenue; the power tool gear business generated 140 million CNY, representing 21.03%; and the revenue from reducers, tools, equipment, and other gears was 134 million CNY, making up 20.18% of total revenue [1]. Production Capacity and Utilization - As of the end of 2024, the company's production capacity for new energy vehicle gears was approximately 5.6 million units, with an actual production of 5.3974 million units, resulting in a utilization rate of about 96.38% [2]. Product Development and Market Expansion - The company is focusing on small modulus gears for humanoid robots, which presents new growth opportunities. It plans to expand its product offerings in planetary roller screw products and related core components for the humanoid robot industry [2][3]. - The company has established relationships with renowned humanoid robot manufacturers and aims to enhance its competitive edge in this sector [3]. Client Base and Market Position - The company’s power tool gear clients include globally recognized brands such as TTI, Bosch, and Makita. With the recovery of the power tool industry, the company anticipates increased demand and aims to further enhance its market share [3]. Equipment Investment and Technological Advancements - The company is investing in advanced manufacturing equipment to support the production of precision small gears and reducers, which are essential for humanoid robots. This includes high-precision gear and screw processing equipment [3]. - In 2024, the company achieved breakthroughs in micro modulus cutting tools, with the smallest modulus reaching 0.05mm, positioning it at the forefront of the industry [3]. International Expansion - The Vietnam factory has entered the trial production phase since 2025, with all necessary qualifications completed and equipment installed. The production line is currently in trial production with sufficient orders, and capacity will be adjusted based on demand [3]. Industry Outlook - The humanoid robot industry is expected to accelerate due to increased domestic policy support and the establishment of various industrial funds. The year 2025 is anticipated to mark the beginning of mass production in this sector [4].