Core Viewpoint - The company is experiencing fluctuations in sales and profitability, with a focus on the growth of its premium brands and the development of new electric vehicle models to enhance market presence and technological capabilities [4][5][6][8]. Sales Performance - In July 2025, the company's vehicle sales decreased by 6.4% year-on-year and 14.3% month-on-month, totaling 10,280 units, while cumulative sales from January to July increased by 98.6% to 77,000 units [4]. - For the year 2024, the company achieved a total vehicle sales increase of 23.53% to 114,000 units, with the premium brand, Extreme Fox, seeing a significant rise of 169.91% to 81,000 units [6]. Financial Performance - In Q4 2024, the company reported a revenue of 14.51 billion yuan, a year-on-year increase of 1.3%, but a net loss that expanded by 28.7% to 6.95 billion yuan. The revenue for Q4 2024 decreased by 6.3% year-on-year and 22.8% month-on-month to 4.69 billion yuan [5]. - In Q1 2025, the company’s revenue surged by 150.8% year-on-year to 3.77 billion yuan, while the net loss narrowed by 6.2% to 950 million yuan [5]. Margin Recovery - The gross margin for Q1 2025 improved to -7.5%, a year-on-year increase of 0.4 percentage points and a month-on-month increase of 14.5 percentage points, primarily driven by the strong sales of the Extreme Fox brand [7]. - The company anticipates further margin recovery with the upcoming launch of new models equipped with advanced driving systems [7]. Strategic Initiatives - The company announced plans to raise up to 6 billion yuan through a private placement to fund the development of various new energy vehicle models and AI-driven platforms [8]. - The "Three-Year Leap Action" initiative aims to enhance brand collaboration and market penetration in the mid-to-high-end segments through technological advancements and improved channel efficiency [8].

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - July sales showed a decline both year-on-year and month-on-month, with total sales of 10,280 units, a decrease of 6.4% year-on-year and 14.3% month-on-month. Cumulative sales from January to July increased by 98.6% to 77,000 units [1]. - The company's performance in Q4 2024 was slightly below expectations, with revenue of 14.51 billion yuan, a year-on-year increase of 1.3%, and a net loss of 6.95 billion yuan, an increase of 28.7% year-on-year. In Q1 2025, revenue increased by 150.8% year-on-year to 3.77 billion yuan, with a net loss of 9.5 billion yuan, narrowing by 6.2% year-on-year [1][2]. - The company is expected to benefit from the launch of new high-end models, particularly the Xiangjie S9T, which is anticipated to enhance its market position in the high-end segment [2][3]. Sales and Financial Performance - The company’s automotive sales for 2024 are projected to increase by 23.53% to 114,000 units, with the extreme fox brand expected to see a significant rise of 169.91% to 81,000 units [2]. - The gross margin for Q1 2025 is expected to improve, driven by strong sales of the extreme fox brand and the upcoming launch of new models equipped with advanced technology [2][3]. - The company plans to raise up to 6 billion yuan through a private placement to enhance its electric vehicle technology capabilities and support the development of multiple new energy vehicle models [3]. Financial Projections - Revenue projections for 2025 and 2026 are set at 32.32 billion yuan and 57.73 billion yuan, respectively, with expected net losses of 4.81 billion yuan and 2.05 billion yuan [5][12]. - The report anticipates a return to profitability by 2027, with a projected net profit of 870 million yuan [3][5]. Market Position and Strategy - The company is focusing on dual-brand development with Xiangjie and Extreme Fox to enhance its market penetration in the mid-to-high-end segments [3]. - The report highlights the importance of technological advancements and brand positioning in improving the company's competitive edge in the rapidly evolving electric vehicle market [3].