Core Viewpoint - Zhejiang Dibai Electric Co., Ltd. plans to conduct commodity futures and foreign exchange hedging business for the year 2026 to mitigate risks associated with price fluctuations of raw materials and exchange rate changes [2][4][19]. Group 1: Commodity Futures Hedging - The company aims to reduce the impact of price volatility of copper and aluminum, which are key raw materials, by utilizing futures contracts for hedging [4][19]. - The maximum amount of margin and premiums for copper and aluminum futures hedging is set at 10 million RMB, with a maximum contract value of 100 million RMB on any trading day [5]. - The funding for this hedging will come from the company's own funds, and the trading will be conducted on the Shanghai Futures Exchange [6][10]. Group 2: Foreign Exchange Hedging - The purpose of the foreign exchange hedging is to minimize the risks arising from exchange rate fluctuations between the RMB and foreign currencies like USD and EUR, which can affect the company's export business [9][19]. - The maximum amount of margin and premiums for foreign exchange hedging is capped at 1 million USD, with a maximum contract value of 10 million USD on any trading day [9]. - Similar to commodity hedging, the funding will also be sourced from the company's own funds, and the transactions will involve reputable financial institutions [11][10]. Group 3: Approval Process - The board of directors approved the hedging proposal during the third meeting of the sixth board on December 30, 2025, and it does not require shareholder approval [2][13]. - The decision was made with unanimous support from all attending directors, indicating strong internal consensus on the hedging strategy [24]. Group 4: Risk Management - The company has established a risk management framework to address potential risks associated with both commodity and foreign exchange hedging, including price volatility, internal control risks, and legal risks [14][17]. - A dedicated hedging management team has been set up to oversee the hedging activities, ensuring compliance with internal policies and effective risk monitoring [16][18]. Group 5: Impact on Operations - The hedging activities are aligned with the company's operational needs and are expected to enhance its risk management capabilities without adversely affecting its core business [19][20].

Group 1: Business Growth and Product Development - The company has seen rapid profit growth in the automotive parts sector, driven by advancements in laser radar technology and the development of new products such as active suspension motors and steer-by-wire motors [1] - The company maintains a gross margin of approximately 28% over the past few years, focusing on high-quality development through product optimization and deep collaboration with leading overseas clients [2] - The company is advancing the research and development of high-efficiency industrial motors, utilizing innovative designs that reduce costs while enhancing energy efficiency [3] Group 2: Market Strategy and Competitive Position - The company aims to avoid competition in saturated markets by focusing on high-value products in emerging application areas, such as industrial control and medical sectors, maintaining high gross margins [2] - Future strategies include optimizing resource allocation, enhancing automation production levels, and increasing the supply of customized high-value products through collaboration with quality clients [2] Group 3: Product Applications and Innovations - The company is developing dexterous hand products with advanced motion control systems, targeting applications in automation and robotics, currently in small-scale supply stages [4] - The company is also exploring the application of axial flux motors in new energy vehicles and low-altitude economies, which promise higher power density and efficiency compared to traditional radial motors [3] Group 4: Overseas Production Capacity - The company's Vietnam factory was expanded in 2024 to serve North American clients, while the Mexico factory commenced production in 2025, focusing on home appliances and industrial control products [5][6] - The Vietnam factory operates with higher efficiency and cost control, while the Mexico factory is gradually improving its production management and operational levels [6]

Core Viewpoint - Jiangsu Leili is advancing its layout in the humanoid robot sector while maintaining strong growth in its core micro motor and component business, despite a slight decline in net profit in 2024 [1][2]. Financial Performance - In 2024, the company achieved revenue of 3.519 billion yuan, a year-on-year increase of 14.38%, while net profit attributable to shareholders was 294 million yuan, a decrease of 7.14%. The net profit excluding non-recurring items was 301 million yuan, an increase of 3.53% [1]. - In Q1 2025, the company reported revenue of 908 million yuan, a year-on-year increase of 25.81%, and net profit attributable to shareholders of 94 million yuan, up 28.15% [1]. Product Development and Innovation - Jiangsu Leili has adopted an "Electric Motor+" strategy, expanding its product offerings to include precision gearboxes, sensors, and drive control systems, with several new products entering mass production in non-home appliance sectors in 2024 [1][2]. - The company has developed a comprehensive motion control system solution for humanoid robots, including linear joints, rotary joints, and dexterous hands, and is focusing on high-precision sensors and control components through external investments and collaborations [2][3]. Strategic Partnerships - Jiangsu Leili has established a partnership with Blue Technology, a leading quadruped robot company in China, to supply joint actuators for quadruped robots and enhance resource integration for product development and cost reduction [3]. Global Expansion and Market Strategy - The company is enhancing its overseas production capacity and sales network to mitigate the impact of U.S.-China trade tensions, with approximately 18% of its revenue coming from the U.S. market in 2024 [4]. - Jiangsu Leili has established R&D and manufacturing bases in North America, Europe, Southeast Asia, South Korea, and Hong Kong, with a completed expansion of its Vietnam factory and a new factory in Mexico set to begin production in 2025 [4].