Core Viewpoint - The company has made advancements in the field of industrial robotics, including the launch of a new intelligent lawn mowing robot, and plans to further develop its product offerings based on strategic goals and market demand [1] Group 1 - The company successfully developed and delivered its first self-developed "Zongshen" industrial robot in May 2020, enhancing automation and efficiency in production processes [1] - The company has introduced a new intelligent lawn mowing robot product as part of its ongoing efforts in the industrial robotics sector [1] - Future product development will be aligned with the company's strategic direction and market needs, indicating a commitment to expanding its robotics business [1]

Group 1: Business Growth Strategies - The company employs analytical and constructive strategies to balance traditional high-end upgrades with new business resource investments, ensuring the synergy of two growth curves [1] - The fuel power business is transitioning towards high-end, high-value sectors, while the new energy business is rapidly scaling up in electric drive systems, energy storage, and hydrogen energy [2] Group 2: New Energy Business Performance - The new energy product system has been established, covering electric drive systems, energy storage, and hydrogen energy, with a focus on maintaining stable growth in traditional businesses while innovating in new energy [2] - Financial data regarding the new energy business, including revenue share and gross margin, can be found in the company's 2025 semi-annual report [2] Group 3: Product Development and Market Feedback - The hydrogen forklift is currently in demonstration applications within industrial parks and has not yet achieved commercialization [2] - The company has successfully achieved batch supply of small aviation engines through its subsidiary, Zongshen Aviation [4] Group 4: Financial Performance and Cost Management - The company reported a 79.37% year-on-year increase in net profit for the first half of 2025, driven by growth in traditional businesses and investment income [8] - To manage costs amid raw material price fluctuations, the company is implementing long-term strategic partnerships and improving production efficiency [8] Group 5: Market Position and Future Plans - The company is positioned as a leading manufacturer of small and medium-sized power machinery, with a focus on high-end, intelligent, and electric product transformations [3] - The company is exploring strategic opportunities to expand into humanoid robots and other robotic platforms based on existing technology [3]

Investment Rating - Strongly recommended (maintained) [2] Core Views - The company reported significant growth in revenue and net profit for Q2 2025, driven by strong performance in motorcycle engines and general machinery, with net profit doubling in the latter segment [1][5] - The low-altitude economy policies are driving growth, and the company has achieved a milestone in obtaining certification for its self-developed aviation engine [1][6] - The company is expected to achieve net profits of 1.08 billion, 1.29 billion, and 1.44 billion yuan in 2025, 2026, and 2027 respectively, corresponding to PE ratios of 28.6, 24.0, and 21.4 [6][7] Financial Performance Summary - For H1 2025, total revenue reached 6.693 billion yuan, with a year-on-year increase of 39.05%, and net profit of 506 million yuan, up 79.37% [5][6] - In Q2 2025, total revenue was 3.450 billion yuan, with a year-on-year increase of 39.00%, and net profit of 279 million yuan, up 72.74% [5][6] - The general machinery business saw total revenue of 3.647 billion yuan in H1 2025, a year-on-year increase of 73.06%, with net profit of 370 million yuan, up 139.79% [5][6] - The motorcycle engine business generated revenue of 2.330 billion yuan in H1 2025, a year-on-year increase of 14.39%, with net profit of 133 million yuan, up 39.30% [5][6] Business Segment Insights - The general machinery segment is strengthening its market position through collaboration and resource integration, maintaining leadership in various applications such as emergency power generation and drone charging [5][6] - The motorcycle engine segment is focusing on market expansion in emerging markets like Mexico and Brazil, while enhancing technology and supply chain optimization [5][6] - The aviation engine segment is capitalizing on low-altitude economic policies and has successfully certified its CA500 aviation piston engine, marking a significant achievement in compliance with domestic and international standards [6][7]