Core Viewpoint - The company is transitioning its energy storage business towards digital energy management, aiming for a breakthrough in new categories to reach a scale of over 1 billion [1] Group 1 - The company's energy storage business is shifting focus to digital energy management [1] - Future scale targets in new categories are expected to exceed 1 billion [1] - The growth potential for new categories such as sensors, vision, and pneumatic is promising due to the company's overall solution sales strategy [1]

Group 1: Investor Relations Activities - The investor relations activities took place from May 19 to May 29, 2025, involving multiple sessions including on-site research and strategy meetings [5]. - A total of 16 participants from various investment firms attended the first on-site research session on May 19 [1]. - The activities included participation from 33 individuals in the third on-site research session and 73 individuals in the fourth session [2][3]. Group 2: Company Cost Advantages - The company maintains cost advantages over foreign brands primarily through low costs in R&D, marketing, and management [5]. - Compared to domestic brands, the company benefits from leading product design, scale effects in procurement and manufacturing, and effective quality control [5]. - The company employs rapid product iteration and optimization to enhance performance while reducing costs, ensuring stable gross margins despite competitive pressures [6]. Group 3: PLC and Industrial Robot Development - The company is increasing investment in medium to large PLC products, which are crucial for high-end applications in industries like photovoltaics and lithium batteries [7]. - The industrial robot business has seen significant growth due to a strong sales platform, extensive customer base, and continuous optimization of the regional sales network [8]. - The company plans to expand its industrial robot product series to meet diverse industry needs, with applications already established in sectors such as 3C, photovoltaics, and lithium batteries [9]. Group 4: Product Expansion and Market Opportunities - The company is actively expanding its product lines in automation, including pneumatic and guide rail products, to meet customer demands and explore new market opportunities [10]. - The elevator business is projected to grow steadily, focusing on expanding into multinational enterprises and enhancing service offerings in the aftermarket [11]. - The company aims to leverage its comprehensive elevator electrical solutions to capture market share among domestic and international clients [11].

1. Report Industry Investment Rating - No information provided in the content 2. Core Viewpoints of the Report - The company's performance in Q1 2025 was mainly due to the good growth of China's GDP in Q1, the effectiveness of consumption - stimulating and trade - in policies, the rapid recovery of the lithium - battery industry, and the company's internal improvements since 2024 [24]. - The decline in the gross margin of the general automation business in 2024 was mainly affected by product structure changes, and it decreased slightly year - on - year in Q1 2025 [24]. - The company aims for the general automation business to grow by 10% - 30% in 2025 [25]. - The company expects the growth of the process industry business to be higher than that of the general automation business as a whole in 2025 [27]. - The company's annual profit target for 2025 is set at 5% - 25% considering the uncertainty of the external environment [33]. 3. Summary According to the Table of Contents 3.1. Research Basic Situation - The research object is Inovance Technology, belonging to the electronic components industry. The reception time was April 29, 2025. The company's reception staff included the chairman and president, directors, vice - presidents, the board secretary, independent directors, and the financial director [17]. 3.2. Detailed Research Institutions - The total number of participants in the research was about 770 [20]. 3.3. Research Institution Proportion - No information provided in the content 3.4. Main Content Data 3.4.1. Impact of Tariffs - In April, the impact of tariffs on the industry was small, and the situation in May and June needed further observation. The direct impact on the general automation business was small, while the indirect impact was hard to judge. OEM industry customers such as textile and plastic industries might be affected [24][28]. 3.4.2. Gross Margin of General Automation Business - The decline in the gross margin of the general automation business in 2024 was mainly due to product structure changes. In Q1 2025, it decreased slightly year - on - year [24]. 3.4.3. Business Goals - The company's general automation business target for 2025 is about 10% - 30% [25]. 3.4.4. New Product Layout - The company builds different management and organizational models for different product categories. For example, the strategy for high - efficiency motors is "motor +", for large - load six - joint robots is "operation island + process", and for solenoid valves is to combine electrical and pneumatic technologies [26]. 3.4.5. Process Industry Business - The company sees good entry points in the process industry, including the trend of localization and the industry's digital and intelligent transformation. The company is strengthening its capabilities in digitalization and large - scale PLCs and creating demonstration projects. It expects the process industry business to grow faster than the general automation business [26][27]. 3.4.6. Competition with Foreign Brands - The company's advantages in competing with foreign brands are high internal operational efficiency, fast response to customer needs, and the ability to provide customized solutions with processes [27]. 3.4.7. Order Confirmation Cycle - The confirmation cycle for standard products is 1 - 2 months, and for process industry business, it is about half a year depending on project acceptance [28]. 3.4.8. Internationalization Strategy - The company focuses on developed markets (e.g., Europe, the US) and emerging markets (e.g., South Korea, Vietnam, India). In developed markets, it targets leading multinational enterprises with customized solutions; in emerging markets, it uses a "industry line + regional line" model to develop channel systems [28]. 3.4.9. IFA Industrial Software Platform - IFA is the first all - integrated industrial automation software platform in China, providing an all - in - one and highly integrated platform, which is of great significance [28]. 3.4.10. AI Application in Industrial Automation - The company applies AI in production manufacturing in areas such as quality inspection, production scheduling optimization, process parameter optimization, and equipment fault warning. It also plans to integrate industrial AI solutions into digital solutions [29]. 3.4.11. Humanoid Robot Business - **Development Strategy**: The company views humanoid robots as a long - term project. It will make moderate and scaled - up investments based on core components [30][31]. - **Product Layout**: It focuses on components such as low - voltage high - power drives, frameless torque motors and modules, and planetary roller screws. It uses an ecological cooperation model for sensors [32]. - **Customer Engagement**: It communicates closely with customers during component development for customized development [31][32]. - **Business Formats**: The company will selectively participate in different humanoid robot business formats, providing scenario - based solutions [32]. - **Product Landing Scenarios**: It will prioritize the TOB end [33]. 3.4.12. Nanjing Production Base - The Nanjing production base has been put into operation, with a planned capacity of 400,000 units/sets of industrial robots and precision machinery products. The company is expanding production lines, and the capacity is gradually increasing [33]. 3.4.13. Profit Goals and Cash Flow - The company's annual profit target for 2025 is 5% - 25% considering external uncertainties. The good cash flow in 2024 and Q1 2025 was due to the positive impact of bill collection on the cash flow statement [33].

Group 1: Company Performance and Market Outlook - In April 2025, the company observed some impact from tariffs but deemed it minor, with further observation needed for May and June [1] - The company's Q1 2025 performance was driven by strong domestic GDP growth, consumer stimulus policies, and a rapid recovery in the lithium battery industry [1] - The 2024 gross margin for the general automation business is expected to decline by approximately 2 percentage points due to product structure changes [2] - The 2025 target for the general automation business is set between 10% to 30% [2] Group 2: Product Strategy and Development - The company is focusing on high-efficiency motors, large-load six-axis robots, and electromagnetic valves as part of its new product strategy [2] - The company aims to enhance its capabilities in digitalization and large PLCs to support the process industry [3] - The IFA industrial software platform is highlighted as a significant development, integrating IT and OT [10] Group 3: Market Expansion and Competition - The company plans to expand its presence in the process industry, expecting growth to exceed that of the general automation sector [4] - To compete with foreign brands, the company emphasizes high internal operational efficiency and customized solutions for specific industries [5] - The company is targeting both developed markets (Europe, USA) and emerging markets (Korea, Vietnam, India) for international expansion [9] Group 4: Future Investments and Innovations - The company views humanoid robots as a long-term investment opportunity, with a market realization expected in three years [12] - Investment in humanoid robotics will focus on core components and customized solutions based on client needs [13] - The Nanjing production base has been launched with a planned capacity of 400,000 units of industrial robots and precision machinery [14] Group 5: Financial Performance and Cash Flow - The company set a profit target for 2025 between 5% to 25%, considering external uncertainties [14] - Positive cash flow in 2024 and Q1 2025 is attributed to effective bill collection strategies [14]