Core Viewpoint - The company, Zhongqi Co., Ltd., emphasizes its unique advantages as a third-party automotive testing facility, highlighting its diverse infrastructure, strong technical capabilities, and good service capacity, which allows it to maintain a significant position in the automotive testing service sector despite competition from in-house testing facilities of automotive manufacturers [1]. Summary by Relevant Sections - **Company Advantages** - Zhongqi Co., Ltd. possesses a rich variety of testing facilities and strong technical expertise, which enhances its service capabilities [1]. - **Market Position** - The presence of in-house testing facilities by automotive manufacturers does not pose a substantial threat to Zhongqi Co., Ltd.'s business, as manufacturers may still opt for external testing services when their own facilities are limited or saturated [1]. - **Industry Contribution** - The company is positioned to continue contributing to the development of the automotive industry by providing essential testing services that ensure the completeness and accuracy of testing projects [1].

Core Viewpoint - The company has experienced over 20% revenue growth this year, driven by the transition from voluntary to mandatory compliance testing in the intelligent connected vehicle sector, accelerated transformation in the automotive industry towards intelligence and electrification, and significant customer expansion efforts [1][2]. Business Drivers and Performance - The company reported a revenue of approximately 71.34 million yuan and a net profit of 15.27 million yuan for the first four months of 2025, with a return on equity of 15.08% [2]. - The second phase project has generated around 26 million yuan in revenue in the first half of the year, achieving near breakeven [2]. Industry Trends and Company Positioning - The company is prepared for the upcoming mandatory standards for L3 and L4 autonomous driving, having established a testing environment at its intelligent connected vehicle testing site in the Yangtze River Delta [3]. - The company is involved in the formulation of various international and national automotive standards and has extended its business boundaries through the acquisition of the China Automotive Research and Testing Center [3]. Capacity and Overseas Expansion - The company is optimizing its first-phase testing facility's capacity utilization and is in the ramp-up phase for the second phase [4]. - The company is exploring the feasibility of overseas expansion as part of its 14th Five-Year Plan [5]. Emerging Fields and Accounts Receivable Management - The company is developing testing technologies for flying cars and has established a road testing scenario and flight supervision platform, although this area currently has a minimal impact on revenue [6]. - The company's accounts receivable management is healthy, with low collection risks, and it is working on optimizing management to improve collection efficiency [6].

Group 1: Revenue Growth and Drivers - The company achieved a revenue of approximately 213 million CNY in the first half of 2025, representing a 24% increase compared to the previous year [3] - Key drivers for revenue growth include: - Policy promotion leading to a shift from voluntary to mandatory compliance testing for intelligent connected vehicles [3] - Increased demand from the automotive industry as manufacturers accelerate their transition to smart and electric vehicles [3] - Capacity release and customer breakthroughs following the operational launch of new testing facilities [3] Group 2: Project Contributions and Capacity Utilization - The second phase project contributed approximately 26 million CNY in revenue in the first half of the year, achieving near breakeven [4] - The project is in a cultivation period where demand drives capacity release, with increasing certainty of future growth as standards advance [4] - The company’s first-phase testing facility has potential for improved capacity utilization, while the second phase is still ramping up [10] Group 3: Profitability and Financial Performance - The Extreme Testing Center reported a net profit of 15.27 million CNY in the first four months of 2025, double that of the entire previous year [4] - The net asset return rate for the Extreme Testing Center was 15.08% [4] - The company’s accounts receivable management is healthy, with risks considered low due to the nature of the business model and customer quality [13] Group 4: Market Trends and Strategic Positioning - Manufacturers are increasingly focusing on extreme environment testing due to market competition and consumer demand for reliable performance in various conditions [6] - The company plays a significant role in the formulation of automotive industry standards, participating in multiple standard-setting committees [8] - The company is exploring opportunities for expansion in regions outside East China, assessing potential partnerships and acquisition strategies [9] Group 5: Future Outlook and Innovations - The company is actively researching the feasibility of overseas testing facilities to support domestic manufacturers' global expansion [11] - Investments are being made in low-altitude economy testing capabilities, including the establishment of a low-altitude flight monitoring platform [12] - The company is monitoring industry policies that may enhance accounts receivable turnover and cash flow stability [13]