Core Viewpoint - The company reported its Q3 2025 results, showing stable revenue growth but a decline in net profit, indicating improved profitability quality despite challenges in the market [1]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 13.51 billion, a year-on-year increase of 11.7%, and a net profit of 470 million, a year-on-year decrease of 21.2% [1]. - In Q3 2025, the company recorded revenue of 4.87 billion, a year-on-year growth of 10.55%, and a net profit of 162 million, a year-on-year increase of 0.63% [1]. - The gross margin for the first three quarters of 2025 was 19.10%, an increase of 0.40 percentage points year-on-year, while Q3 gross margin was 19.72%, a decrease of 0.28 percentage points year-on-year but an increase of 1.18 percentage points quarter-on-quarter [1]. Operational Efficiency - The company maintained stable operational efficiency with sales expenses of 98 million, a sales expense ratio of 0.73%, down by 0.05 percentage points year-on-year [1]. - Management expenses totaled 691 million, with a management expense ratio of 5.11%, an increase of 0.18 percentage points year-on-year [1]. - Research and development expenses were 1.015 billion, with a research expense ratio of 7.51%, an increase of 0.22 percentage points year-on-year [1]. - Financial expenses amounted to 107 million, a decrease of 18 million year-on-year [1]. Industry Outlook - The downstream sectors, particularly consumer electronics and the new energy industry, are experiencing rising demand, driven by policies like "trade-in for new" and the explosive growth of AI-driven products [2]. - The new energy vehicle industry continues to grow globally, significantly impacting the automotive and energy sectors, with China leading in production and sales [3]. - The company is rapidly advancing its global production base construction, with multiple domestic and international projects progressing as planned [3]. Profit Forecast - The company is projected to achieve revenues of 19.074 billion, 21.897 billion, and 24.043 billion from 2025 to 2027, with corresponding net profits of 692 million, 958 million, and 1.209 billion [4].

Industry Overview - The Chinese automotive industry is undergoing significant transformation, with a strong focus on innovation and the development of new energy vehicles (NEVs) [1] - In 2024, China's NEV production and sales are projected to reach 12.888 million and 12.866 million units, respectively, marking year-on-year increases of 34.4% and 35.5% [1] - The government is promoting the development of a modern industrial system, emphasizing the integration of digital technology with manufacturing advantages to support the growth of intelligent connected NEVs [1] Company Highlights - Changying Precision has become a leading domestic manufacturer of precision electronic components, focusing on battery structure parts and high-voltage electrical connections for NEVs [2] - Since expanding its NEV production capacity in 2021, Changying Precision has experienced rapid revenue growth, with a compound annual growth rate exceeding 60% [2] - The company has a robust R&D team of over 5,000 members and has invested approximately 8% of its revenue in R&D over the past three years, holding over 2,200 patents [2] Technological Advancements - Bojun Technology is engaged in the research and development of lightweight materials and advanced manufacturing processes, including hot forming and integrated die-casting [3] - The company's R&D investment increased from 85 million yuan in 2023 to 160 million yuan in 2024, a year-on-year rise of 90.17% [3] - Bojun Technology holds 5 registered trademarks and 94 patents, including 17 invention patents and 77 utility model patents [3] Market Position - Sanhua Intelligent Controls is a global leader in automotive thermal management systems, with a compound annual growth rate of over 23% in revenue and 25% in net profit over the past 20 years [4] - The company has consistently increased its R&D investment, reaching 1.352 billion yuan in 2024, maintaining a stable ratio of approximately 4.5% of revenue [4] - Sanhua is focusing on smart factory initiatives, leveraging big data and AI to enhance production efficiency and product quality [5] Future Outlook - The automotive parts industry in Shenzhen is actively engaging in the technological transformation of the NEV sector, driving advancements in intelligent connectivity and new energy [5] - With ongoing technological progress and industry upgrades, Shenzhen's automotive parts companies are expected to shine on the global stage, contributing to a smarter, greener, and more efficient automotive industry [5]