Core Viewpoint - The strategic cooperation agreement signed between Yunnei Power, Delong Aviation, and Huamin Lianxin Fund marks Yunnei Power's acceleration into the low-altitude economy and emerging fields, driven by innovation to cultivate new growth momentum [1][2]. Group 1: Strategic Cooperation - Yunnei Power will leverage its core technology advantages in the engine sector, collaborating with Delong Aviation's drone development capabilities and Huamin Lianxin Fund's investment experience to create strategic synergy [2]. - This partnership aims to broaden the application scenarios of Yunnei Power's engine products in the drone sector and utilize capital to accelerate the drone industry chain layout, fostering new performance growth points for the company [2]. Group 2: Innovation and Business Development - Despite short-term performance pressure indicated in the semi-annual report, Yunnei Power has made substantial progress in innovation, with small-scale sales of its unmanned delivery vehicles and smart agricultural machinery [3]. - The company is collaborating with China Post's Yunnan branch to advance road testing for unmanned delivery vehicles, indicating that its innovative business has entered the commercialization phase [3]. - In the new energy sector, its subsidiary Mingt Technology is consolidating market advantages with leading technology in charging pile payment systems, expanding into new energy and intelligent fields based on diesel engine technology [3]. Group 3: Long-term Development and Market Expansion - Yunnei Power is implementing multiple measures to enhance quality and efficiency, including optimizing customer settlement models, accelerating innovation in diesel, hybrid, and gas engine technologies, and achieving year-on-year cost reductions through lean operations [4]. - The establishment of overseas parts service centers is part of the strategy to continuously expand international market share [4]. - As a leader in China's internal combustion engine industry, Yunnei Power's strategy of combining traditional business stability with new business expansion is showing initial results, with promising prospects for transformation and upgrading [4].

Core Viewpoint - The company anticipates a net loss for the first half of 2025 due to adjustments in product settlement models and pricing strategies, leading to decreased revenue and profit margins [1][2]. Group 1: Performance Forecast - The performance forecast period is from January 1, 2025, to June 30, 2025, with an expected net profit in negative territory [1]. - The company has communicated with its accounting firm regarding the performance forecast, and there are no discrepancies noted [1]. Group 2: Reasons for Performance Changes - In the first half of 2025, the company adjusted its product settlement models and cycles to respond to market changes, resulting in a decrease in average sales price for engine products [1]. - This adjustment has led to a decline in both operating revenue and gross margin per engine, causing the operating profit to be insufficient to cover period expenses, thus increasing overall losses compared to the previous year [1]. Group 3: Strategic Initiatives - The company is actively seizing industry development opportunities by optimizing its management system and focusing on customer needs [2]. - Efforts include expanding terminal market outreach and accelerating technological innovation in diesel, hybrid, and gas engine sectors [2]. - The company is also implementing lean operations and optimizing human resources to reduce period expenses [2]. - New business projects centered around smart and green manufacturing are being cultivated, with initial sales of unmanned delivery vehicles and smart agricultural machinery [2]. - Internationally, the company is establishing overseas service centers and trade platforms to enhance export capabilities and overall competitiveness [2].

Group 1 - Yunnei Power has received an administrative penalty notice from the Yunnan Securities Regulatory Bureau and is actively addressing the regulatory requirements by organizing financial and auditing departments to rectify the issues mentioned in the notice [1] - The company is currently operating normally and is focusing on developing emerging business projects centered around smart manufacturing and green manufacturing, with initial sales of intelligent delivery vehicles and smart agricultural machinery [1] - To enhance its sustainable operational capacity, Yunnei Power is implementing multiple measures to improve its current passive business situation [1] Group 2 - In the traditional internal combustion engine sector, Yunnei Power is refining its marketing strategies and brand differentiation for diesel engines, aiming to expand its market presence [2] - The company is increasing the installation ratio in the existing market for non-road diesel engines and transitioning towards larger horsepower engines while exploring new markets such as agricultural machinery and international exports [2] - In the field of new energy powertrains, Yunnei Power is accelerating the development of gasoline and natural gas range-extended powertrains and hydrogen fuel cell powertrains, aiming for breakthroughs in the new energy market [2] Group 3 - On the international front, Yunnei Power is focusing on Southeast Asia, Africa, South America, and the Middle East to enhance its export capabilities and expand its international market presence [3] - The recent administrative penalty has negatively impacted the company's image, but it is expected to drive improvements in governance, internal control, and management standards, ultimately benefiting the company's long-term sustainable development [3] - The company plans to use this opportunity to continuously improve its internal governance system and enhance the quality of financial reporting and operational standards [3]

Company Overview - Kunming Yunnei Power Co., Ltd. was established in 1999 and listed on the Shenzhen Stock Exchange on April 15, 1999, with stock code 000903 [2] - The company primarily engages in engine and industrial-grade electronic products, including diesel engines, gasoline engines, and natural gas engines [2] Financial Performance - In 2024, the company experienced a decline in engine product sales and revenue due to structural differentiation in the commercial vehicle sector and rising penetration of new energy [4] - Despite a decrease in sales, the gross profit margin per engine increased compared to the previous year due to technological upgrades and internal management optimization [4] - The overall R&D expenditure increased compared to the previous year, but the company still reported a net loss due to rising financial costs after two consecutive years of losses [4] Product Development and Innovation - The company is focusing on the development of new energy products, including hybrid, range-extended, dual-fuel, and hydrogen fuel cell engines, as part of its "dual carbon" strategy [2] - The company is actively expanding its wire harness product business through technological innovation and increased R&D efforts [3] Business Expansion Strategies - For traditional internal combustion engines, the company is refining marketing strategies and promoting brand differentiation to expand market share [5] - In the industrial-grade electronic products sector, the company aims to enhance its technical capabilities and market competitiveness while participating in industry standard formulation [5] - The company is accelerating the development of new energy powertrains and emerging businesses, including L4 level intelligent delivery vehicles and smart rubber cutting machines [5] Market and Regulatory Environment - The company is currently cooperating with the China Securities Regulatory Commission regarding an ongoing investigation and has not received any conclusive opinions or decisions [5] - The company is also focusing on expanding its international market presence, particularly in Southeast Asia, Africa, South America, and the Middle East [5]