Core Insights - The company, Altec Automotive Technology Co., Ltd., is the largest independent automotive design firm in Asia and the only one listed in A-shares, highlighting its uniqueness in the market [1] - The company is advancing its "technology + supply chain" strategy globally, having established seven R&D centers in regions such as Japan, Southeast Asia, and the Middle East [1] Group 1: Business Overview - Altec provides comprehensive "turnkey" services across the entire vehicle and component development process, focusing on core component R&D and manufacturing [1] - The company has initiated mass production of its power system components and is collaborating with Yazaki's subsidiary in China for high-voltage electrical systems [1] Group 2: Strategic Developments - Altec has partnered with the Japanese listed company YAMATO to provide technical solutions and electric powertrain kits for the oil-to-electric conversion of commercial vehicles, with significant market potential supported by local government subsidies [2] - The company has secured an order of approximately 337 million yuan for heavy-duty truck oil-to-electric conversion, with production expected to start in April 2025 [2] Group 3: Market Position and Competition - Altec is positioned uniquely in the automotive design industry, with competitors categorized into three types: independent design firms like Altec, overseas firms such as AIDAC, and domestic firms like Longchuang Design [2] - The company currently faces minimal competition in the early stages of its oil-to-electric business, benefiting from supply chain cost advantages compared to overseas firms and first-mover advantages in client development and supply chain access compared to domestic firms [2] Group 4: Financial Performance and Future Outlook - The company has experienced losses due to price competition in the domestic automotive market, lack of profitability in overseas markets, and accounting provisions for impairment [2] - Future business outlook includes deepening design collaborations with existing clients, expanding new client acquisition, and increasing revenue from mass production of core components like electromagnetic clutches [2]

Company Overview - Altec Automotive Technology Co., Ltd. is the largest independent automotive design company in Asia and the only automotive design company listed on A-shares, showcasing strong scarcity in the market [2]. - The company has over 20 years of industry experience, accumulating rich project experience and core technological barriers, having developed nearly 500 vehicle models for over 80 clients [2][3]. Business Development - Altec has established seven R&D centers globally, focusing on markets in Japan, Southeast Asia, and the Middle East, to support its "technology + supply chain" strategy [3]. - The company has initiated cooperation with international automotive groups, enhancing its capabilities to assist global enterprises in transitioning to the automotive sector [3]. Key Projects and Orders - Altec has entered the oil-to-electric conversion business in Japan, partnering with YAMATO to provide technology solutions and export electric conversion kits [4][5]. - The company has secured a heavy-duty truck oil-to-electric order worth approximately CNY 337 million, with plans to expand its market presence in Japan [5]. Client Base and Market Expansion - Altec has developed strong relationships with major automotive manufacturers, including Honda, Nissan, and Toyota, and is actively exploring new clients and overseas market opportunities [6][7]. - The company aims to maintain existing client relationships while expanding its client base and enhancing its professional capabilities [7]. Industry Position and Competition - Altec is the only independent automotive design company listed on A-shares, distinguishing itself from competitors that are either affiliated with automotive manufacturers or parts suppliers [8]. - The company currently faces no significant competition in its oil-to-electric business in Japan, leveraging its advanced technology and established supply chain advantages [11][12]. Financial Performance and Challenges - Recent losses are attributed to intense price competition in the domestic automotive industry and the lengthy process of establishing overseas partnerships [9]. - Altec plans to transform its business model and improve operational efficiency to enhance profitability [9]. Future Outlook - The company will continue to deepen relationships with existing clients while pursuing new projects and markets, aiming for a comprehensive service model that integrates vehicle development and supply chain management [13]. - Altec's core component business is expected to improve as it begins mass production of various products, contributing to overall performance enhancement [14].

Core Viewpoint - In 2024, electric retrofitted trucks will be included in Japan's electrification subsidy program, covering two-thirds of the conversion costs, providing a significant cost advantage for electric retrofitted trucks [1] Group 1: Market Opportunity - Japan has over 3 million existing light and medium-heavy trucks, representing a market space exceeding 1 trillion yuan for oil-to-electric conversion business [1] - The company is actively positioning itself in this blue ocean market [1] Group 2: Business Model - The company develops oil-to-electric technology solutions for clients and exports corresponding three-electricity kits to Japan, where partners will retrofit existing models for end customers [1] - The company delivered the first batch of 103 light truck oil-to-electric conversion kits in April this year [1] Group 3: Future Plans - Based on the success with light trucks, the company has received new orders for heavy truck oil-to-electric conversions, with an order value of approximately 337 million yuan [1] - The company will focus on expanding its oil-to-electric business in Japan and exploring similar business models in other regional markets to drive revenue growth [1]