Core Viewpoint - Zongshen Power (001696.SZ) has reported strong growth in its operating performance, driven by its two traditional main businesses: general machinery and motorcycle engines, with a projected net profit of 479 million to 564 million yuan for the first half of the year, representing a year-on-year increase of 70% to 100% [1][3][4] Group 1: Financial Performance - For the first half of the year, the company expects a net profit attributable to shareholders of 479 million to 564 million yuan, compared to 282 million yuan in the same period last year, indicating a growth rate of 70% to 100% [3][4] - The company anticipates a non-recurring net profit of 456 million to 536 million yuan, also reflecting a year-on-year increase of 70% to 100% [3] - In the first quarter, Zongshen Power achieved operating revenue and net profit of 3.243 billion yuan and 226 million yuan, respectively, marking year-on-year growth of 39.11% and 88.28% [3][4] Group 2: Business Segments - The growth in net profit is attributed to the expansion of the general machinery and motorcycle engine businesses, as well as increased investment income from joint ventures [4][5] - The company has maintained profitability since its reverse listing in 2003, with annual profits exceeding 200 million yuan since 2007 [5][7] - Zongshen Power's revenue has shown a consistent upward trend, with revenues reaching 10.506 billion yuan in 2024, marking the first time it surpassed 10 billion yuan [5][8] Group 3: Strategic Development - The company is undergoing continuous transformation and upgrading, expanding from motorcycles to engines, general machinery, and now into new energy power systems and energy storage [1][6][8] - Zongshen Power has invested over 300 million yuan annually in research and development over the past two years to support its technological advancements [2][8] - The company is actively pursuing a dual-driven strategy in the new energy sector, establishing product systems in new energy power systems and energy storage, with significant contributions to revenue from these new business lines [8]