Summary of Jianbang Technology Conference Call Company Overview - **Company**: Jianbang Technology - **Industry**: Automotive and Electronic Components Key Points Financial Performance - Jianbang Technology reported a revenue growth of **19.3%** in the first half of 2025, reaching **CNY 375 million** [3] - Net profit attributable to shareholders increased by **27.2%**, amounting to **CNY 49 million** [3] - The second quarter saw revenue and net profit growth of **19.3%** and **16.5%** respectively [3] Business Highlights - Non-automotive parts business emerged as a core highlight, generating **CNY 65 million** in revenue, a **183.2%** increase, accounting for **17%** of total revenue [2][4] - Pool products alone contributed over **CNY 45 million**, with a **200%** year-on-year growth [2][4] - High-value electronic and electrical business grew by **60.6%** [2] - E-commerce channel revenue reached **CNY 170 million**, up **18%**, making up **45.4%** of total revenue [2][4] Strategic Initiatives - Accelerated globalization and self-production strategies, establishing Xunyan Technology for automotive electronics, with around **200 products** now self-produced [2][5] - Open platform model encourages innovation, allowing small projects under **CNY 100,000** to proceed without high-level approval [2][10] - Focus on R&D and channel development, leveraging Chinese production resources for flexibility [11] Market Challenges - Tariff issues impacted operations starting April 2025, causing temporary disruptions in business [6] - Despite challenges, the company managed to maintain steady growth in Q2 due to internal factors like platform trends and ecosystem development [6] Future Development Strategy - Aiming to build a comprehensive platform ecosystem focused on mechanical and industrial products [7] - Plans to enhance product diversity and continue expanding e-commerce channels, which have shown significant growth [24] Product Development and Market Trends - The company is exploring new product categories, including robotic lawn mowers and RV-related products, with initial revenues from lawn mower parts at **CNY 20,000** [14] - The RV market is expected to grow, particularly in the U.S. and Australia, with a focus on both new and aftermarket products [14] Production and Supply Chain - The Thai factory received production licenses in July 2025, but is not expected to break even in Q4 due to high fixed costs [14][15] - Current production focuses on automotive parts, with ongoing challenges in ramping up capacity due to local labor shortages [16] Financial Outlook - Operating cash flow decreased due to increased inventory preparations, rising from **CNY 100 million** to **CNY 180 million** [27][28] - Credit impairment losses increased due to reverse provisions, indicating improved accounts receivable management [29] E-commerce and Market Expansion - E-commerce revenue is projected to continue growing, with a target of **20-30%** online sales by 2030 [24] - Major cross-border e-commerce platforms remain significant contributors to revenue, with ongoing interest in automotive parts [25] Automotive Electronics and Commercial Vehicle Development - The automotive electronics segment is expected to maintain growth, with new products in testing phases [20][26] - Development of commercial vehicle products, including sensors and systems for automated driving, is underway [26] Conclusion - Jianbang Technology is positioned for continued growth through strategic diversification, e-commerce expansion, and a focus on high-value products, despite facing challenges from tariffs and production ramp-up issues.

Investment Rating - The investment rating for the company is upgraded to "Buy" [5] Core Views - The company is transitioning from automotive parts to a platform model that includes products for pools, yachts, and other areas, indicating the emergence of a "platform-type" company [5] - In H1 2025, the company achieved revenue of 375 million yuan, a year-on-year increase of 21%, and a net profit attributable to shareholders of 49.41 million yuan, up 27% year-on-year [6] - The electronic and electrical systems business saw a revenue increase of 61% year-on-year, driven by the demand for integrated "hardware and software" products [6] - The company is expanding its product ecosystem with rapid growth in non-automotive parts sales, particularly in household products, which achieved a revenue increase of 183% year-on-year [6] Financial Performance - For H1 2025, the company reported a revenue of 200 million yuan in Q2, reflecting a year-on-year growth of 19% and a quarter-on-quarter growth of 14% [6] - The company’s total market capitalization is approximately 2.45 billion yuan, with a circulating market value of about 1.37 billion yuan [3] - The company’s debt-to-asset ratio stands at 23.86%, indicating a relatively low level of financial leverage [3] Revenue and Profit Forecast - The company is expected to achieve net profits of 129 million yuan, 147 million yuan, and 177 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 1.95 yuan, 2.24 yuan, and 2.69 yuan per share [8] - The projected revenue for 2025 is 883 million yuan, with a year-on-year growth rate of 17.38% [8] - The company’s P/E ratios for the years 2025, 2026, and 2027 are projected to be 19.1, 16.7, and 13.9 respectively [8]