Core Viewpoint - The company reported a comprehensive revenue of approximately RMB 270 million for the six months ending June 30, 2025, representing a year-on-year increase of about 13.70% [1] - The company experienced an operating loss of approximately RMB 44.69 million, a significant increase from RMB 3.55 million in the same period of 2024, primarily due to increased administrative expenses and a shift from profit to loss in other income and expenses [1] Group 1: Financial Performance - Comprehensive revenue reached approximately RMB 270 million, up about 13.70% year-on-year [1] - Operating loss increased to approximately RMB 44.69 million from RMB 3.55 million in the previous year [1] - Administrative expenses rose by approximately RMB 18.49 million during the period [1] Group 2: Business Focus - The company is dedicated to the research, development, production, and sales of automotive electronic products, as well as the construction and development of automotive dealership networks [1] - Key automotive electronic products include inverters, chargers, multifunctional power supplies, and cooling and heating boxes, primarily sold in China, North America, and Europe [1] - The company also operates in the automotive sales, after-sales service, insurance products, and automotive financial products distribution in Inner Mongolia [1] Group 3: Hydrogen Fuel Cell Business - The company commenced hydrogen fuel cell-related business in the second half of 2023, targeting government and Internet Data Center (IDC) clients [1] - The construction of facilities and production lines for the hydrogen fuel cell business has been largely completed, although this segment has not yet generated revenue [1]

Core Viewpoint - The introduction of a new round of "comprehensive financial policies" aims to alleviate financial pressure on the automotive industry and stimulate economic growth through enhanced liquidity and reduced financing costs [1][2]. Financial Policy Measures - The new policy includes ten measures, notably a significant reduction in the reserve requirement ratio (RRR) for automotive finance companies and financial leasing companies from 5% to 0%, which is expected to ease funding pressures in the automotive sector [1][2]. - The People's Bank of China emphasizes the need for flexible monetary policy tools to maintain liquidity and support economic stability amid global financial market fluctuations [2]. Impact on Automotive Industry - The policy is seen as a much-needed relief for automotive manufacturers, supply chain companies, and dealers, helping to stabilize development across various segments of the industry [2][3]. - The reduction in RRR is anticipated to make financing easier for companies, accelerate cash flow, and lower consumer loan costs, thereby stimulating automotive consumption [2][3]. Financial Product Innovation - The easing of financial conditions is expected to lead to a broader range of financial products and lower interest rates, making financing options more attractive compared to full cash purchases [3][11]. - Automotive finance companies are likely to explore new business opportunities and innovate financial products and services due to increased available funds [2][11]. Market Dynamics - The automotive finance penetration rate in China has shown fluctuations, with a drop in 2023 followed by a projected increase in 2024, indicating the growing importance of financial tools in automotive consumption [8]. - The financial services provided by automotive finance companies are becoming increasingly vital for both consumers and dealers, as evidenced by the rising share of financial and insurance business income among dealers [8]. Structural Changes in the Market - The automotive market is undergoing structural changes, with a significant rise in new energy vehicle sales, while traditional automotive finance companies face challenges due to competition from commercial banks [10][12]. - The current financial environment aims to improve the asset-liability structure of automotive finance companies, which have been experiencing declining profits and increasing non-performing loan rates [10][12]. Future Outlook - The policy reflects a commitment from regulatory authorities to support the automotive industry and enhance consumer demand through improved financing options [12]. - The effectiveness of the policy will depend on how automotive finance companies and financial leasing firms implement their strategies to benefit consumers and expand their business [11][12].