Core Viewpoint - The report highlights the robust growth of Huichuan Technology's core business and the contribution of new markets and fields, leading to a "buy" rating for the company [1]. Financial Performance - In H1 2025, the company achieved revenue of 20.509 billion yuan, a year-over-year increase of 26.73%, and a net profit attributable to shareholders of 2.968 billion yuan, up 40.15% year-over-year [2]. - For Q2 2025, the company reported revenue of 11.531 billion yuan, a year-over-year increase of 18.99% and a quarter-over-quarter increase of 28.44% [2]. Business Segments - The general automation segment saw a revenue increase of 17% year-over-year, generating approximately 8.8 billion yuan in H1 2025 [3]. - The new energy vehicle segment experienced significant growth, with revenue reaching approximately 9 billion yuan, a year-over-year increase of 50% [3]. - The smart elevator business reported revenue of approximately 2.3 billion yuan, showing a slight decline of about 1% year-over-year [3]. - The rail transit business maintained stable revenue at approximately 220 million yuan, year-over-year [3]. Market Performance - The overseas market maintained high gross margins and growth rates, with H1 2025 overseas revenue of 1.319 billion yuan, a year-over-year increase of 39.34% [4]. - The domestic market achieved revenue of 19.190 billion yuan in H1 2025, a year-over-year increase of 25.95% [4]. Future Outlook - The company forecasts revenues of 47.6 billion yuan, 59.1 billion yuan, and 71.2 billion yuan for 2025, 2026, and 2027, respectively, with corresponding growth rates of 28.5%, 24.1%, and 20.6% [5]. - Net profits are projected to be 5.528 billion yuan, 6.806 billion yuan, and 7.919 billion yuan for the same years, with growth rates of 29.0%, 23.1%, and 16.4% [5]. Investment Sentiment - Recent ratings from eight institutions indicate a positive outlook, with six "buy" ratings and two "hold" ratings, and an average target price of 85.0 yuan [9].

Group 1 - In the first seven months of this year, Jiangsu's private enterprises achieved an import and export volume of 1.47 trillion yuan, contributing 1.4 percentage points to the province's overall trade growth, showcasing the resilience and vitality of private enterprises in foreign trade [1] - Private foreign trade enterprises in Jiangsu are enhancing their export resilience through structural optimization, focusing on technology-intensive and green product transformations [2] - Companies like Kangli Elevator and Nantong Kaixuan Sports Goods are innovating their products and expanding their international market presence, with significant export figures reported [2] Group 2 - The green economy is becoming a new growth area for private enterprises, with companies like Wuxi Quanyu Electronics and Wuxi Kaiyuan Household Products expanding their overseas business, particularly in Europe and Japan [3] - The implementation of RCEP has significantly reduced tariffs for companies, enhancing their competitiveness in international markets [3] Group 3 - The flexibility of private enterprises allows them to quickly adapt to changes in overseas markets, leading to successful orders in niche markets, such as inflatable swimming pools and outdoor sports products [4] - Companies like Zhangjiagang Fojijia Food and Suzhou Taoyun Amusement Equipment are leveraging innovative products to capture overseas market opportunities [5][4] Group 4 - Policy support and precise services are crucial for the sustainable development of private foreign trade enterprises, with customs authorities providing guidance and facilitating efficient customs clearance [6][7] - The proactive disclosure policy by customs has helped companies avoid penalties and improve compliance, enhancing their operational efficiency [7] - Companies like New World Pump and HuGong Intelligent Technology are benefiting from credit advantages and policy support, leading to significant export growth [8][6]

Group 1: Import and Export Performance - In the first seven months of this year, Jiangsu's private enterprises achieved an import and export volume of 1.47 trillion yuan, contributing 1.4 percentage points to the province's overall trade growth [1] - Private enterprises are recognized as a "vanguard" in exploring international markets and seizing overseas orders, demonstrating strong resilience and vitality in foreign trade [1] Group 2: Structural Optimization and Innovation - Jiangsu's private foreign trade enterprises are enhancing their export resilience through structural optimization, focusing on the transition to technology-intensive and green products [2] - Companies like Kangli Elevator are integrating advanced technology into their products, such as smart elevators that provide personalized services and safety features [2] - Nantong Kaixuan Sports Goods Co., Ltd. has been innovating with new materials to enhance international competitiveness, achieving over 9 million yuan in exports in the first five months of the year [2] Group 3: Green Economy and Low-Carbon Initiatives - Private enterprises are increasingly entering the "low-carbon" market, with companies like Wuxi Quanyu Electronics reporting significant growth in lithium battery exports to Europe and South America [3] - Wuxi Kaiyuan Household Products Co., Ltd. has focused on the Japanese market, benefiting from reduced tariffs under RCEP, leading to a 10% year-on-year increase in exports [3] Group 4: Flexibility and Market Responsiveness - The ability of private enterprises to quickly adapt to changes in overseas markets has led to successful ventures in niche markets, such as inflatable swimming pools and outdoor sports products [4][5] - Companies like Suzhou Fuxijia Food Co., Ltd. have successfully exported innovative products to Germany, leveraging unique production techniques to capture overseas market interest [5] Group 5: Policy Support and Competitive Advantages - A series of supportive policies and services have facilitated the steady growth of private foreign trade enterprises, with customs authorities providing guidance and assistance [6][7] - The implementation of proactive disclosure policies by customs has helped companies avoid penalties and reduce costs, enhancing their competitive edge [7] - Jiangsu's private enterprises are benefiting from tax reductions and credit advantages, leading to improved order response times and increased export volumes [8]

Core Viewpoint - Shanghai Xinshi Technology Co., Ltd. (hereinafter referred to as "Xinshi") is initiating a private placement financing plan after being acquired by Haier Group, despite having reported losses for three consecutive years totaling over 1.72 billion yuan [3][7]. Financing and Control - Xinshi plans to issue 153 million shares to its controlling shareholder, Haier Kaos Industrial Intelligence Co., Ltd., raising approximately 1.219 billion yuan [3][5]. - Following the financing, Haier Kaos will hold 26.83% of Xinshi's total shares, further consolidating Haier Group's control over the company [5]. - The new board of directors consists of 9 members, with 5 non-independent directors having backgrounds in Haier Group, indicating a strong influence from Haier [4]. Financial Performance - Xinshi has reported a projected net profit of 1.55 to 2.3 million yuan for the first half of 2025, a turnaround from a loss of 18.75 million yuan in the same period last year [6]. - Despite the expected profit, the company anticipates a non-recurring net loss of approximately 15.25 to 16 million yuan for the same period [6]. - The company has faced significant losses in the past three years, with net profits of -1.057 billion yuan in 2022, -379 million yuan in 2023, and -288 million yuan in 2024, totaling 1.724 billion yuan [7]. Strategic Collaboration - Xinshi aims to enhance its profitability by collaborating with Haier Group to strengthen the industrial automation supply chain and optimize production processes [3][8]. - The partnership is expected to leverage Xinshi's hardware capabilities in industrial automation and Haier's industrial internet platform to provide comprehensive digital solutions [8]. Robotics Sector Investment - Xinshi is increasing its investment in the humanoid robotics sector, planning to launch a general-purpose controller and a complete humanoid robot by 2025 [9]. - The company anticipates significant cost reductions in hardware, positioning its control systems as a core competitive advantage in future technological iterations [9].