Core Insights - Zhejiang Shibao reported a revenue of 1.524 billion yuan for the first half of 2025, representing a year-on-year growth of 35.32% [1] - The net profit attributable to shareholders reached 93 million yuan, up 39.09% year-on-year, while the net profit excluding non-recurring items was 80 million yuan, reflecting a 25.27% increase [1] - The operating cash flow net amount was 91 million yuan, showing a significant year-on-year growth of 484.21% [1] Performance Drivers - The company's performance growth is primarily driven by the acceleration of trends in automotive electrification, intelligence, and globalization, along with the increasing market share of Chinese passenger vehicles [1] - There was a notable increase in sales of the company's electrified and intelligent steering system products [1] Company Overview - Zhejiang Shibao specializes in the research, manufacturing, and sales of automotive steering gears and other key components of steering systems [1] - The company has production bases in Hangzhou, Yiwu, Siping, Wuhu, and Changzhou, and it operates a group research institute in Hangzhou and an automotive intelligent technology R&D center in Beijing [1] - With over 30 years of experience in the automotive industry, Zhejiang Shibao has a diversified and international customer base, serving as a first-tier supplier to many reputable vehicle manufacturers [1] Technological Advancements - The company is one of the first in China to independently develop electric power steering systems and intelligent steering systems for vehicles, providing advanced active steering solutions for autonomous driving cars [1] - As of July 2025, Zhejiang Shibao is supplying intelligent steering systems and key components to several mainstream vehicle manufacturers, including Chery, Geely, NIO, and Li Auto [2] - The company's steer-by-wire technology is applicable for L3 and above intelligent driving models, with customer projects currently under development [2]

Group 1: Revenue Growth and Performance - The company's revenue growth in 2024 and Q1 2025 is primarily driven by product structure optimization and increased value per vehicle [1] - Profit growth is attributed to effective cost control, leading to a decrease in expense ratio relative to revenue [2] - The company maintains a strong outlook for sustainable growth, focusing on smart and electric technology routes [2] Group 2: Production and Technology Development - The company has solid technical reserves in steer-by-wire technology and is progressing with several mainstream automakers, with some projects expected to be mass-produced by 2026 [2] - The steering industry is undergoing a competitive restructuring due to the acceleration of vehicle electrification and intelligence [2] - The company plans to enhance R&D investment to strengthen its position in the smart steering sector [2] Group 3: Market Expansion and Client Base - The company is actively expanding its international market presence and is in the process of qualification certification with several well-known international automakers [2] - Major clients in the passenger vehicle sector include traditional automakers like Chery and Geely, as well as new players like NIO and Li Auto [3] - The company is optimistic about revenue growth in 2025, driven by increasing penetration of new energy vehicles and demand for intelligent steering systems [3] Group 4: Future Product Launches and Collaborations - New production capacity in 2025 will focus on electric steering columns and R-EPS [3] - The company is engaged in technical exchanges for steering technology with various clients in the unmanned logistics vehicle sector [3] - The company has developed technology reserves in rear-wheel steering, with projects expected to be mass-produced by 2026 [3]