Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with expectations for a weak recovery in the North American market in the second half of the year [1][4]. Financial Performance - In 1H25, revenue decreased by 8.9% year-on-year to 9.75 billion yuan, and net profit attributable to shareholders fell by 28.5% to 400 million yuan, with non-recurring net profit down 30.2% to 380 million yuan [1]. - For 2Q25, revenue was 5.16 billion yuan, reflecting a 6.9% decline year-on-year but a 12.4% increase quarter-on-quarter. Net profit was 220 million yuan, down 24.8% year-on-year but up 25.4% quarter-on-quarter [1]. Business Segment Analysis - Domestic business revenue slightly decreased by 0.3% to 4.39 billion yuan, with a gross margin increase of 3.1 percentage points to 12.9% due to improved operational efficiency [2]. - North American business revenue fell by 30.5% to 2.56 billion yuan, with a gross margin decline of 5.1 percentage points to 13.1%, impacted by weak industry demand and tariff uncertainties [2]. - European business revenue increased by 0.5% to 1.31 billion yuan, but gross margin decreased by 2.6 percentage points to 14.9% due to capacity ramp-up challenges [2]. - Other regions saw a revenue increase of 14.0% to 1.50 billion yuan, with a gross margin rise of 4.7 percentage points to 24.6%, driven by strategic expansion in emerging markets [2]. Strategic Initiatives - The company is focusing on the development of new energy vehicles, delivering over 4,700 units of EV·DTB products in 1H25, and is leading in market share for electric heavy-duty trucks [3]. - Plans are in place to develop the EV-RT2.0 electric head truck, targeting short-distance, heavy-load scenarios for product development and validation [3]. Market Outlook - A weak recovery in the North American market is anticipated in 2H25, supported by potential easing of tariff policies and seasonal demand increases [3]. - Domestic policies promoting vehicle upgrades are expected to boost sales in the heavy truck and semi-trailer sectors, alongside strong investment demand in emerging markets like Africa and Southeast Asia [3]. Profit Forecast and Valuation - Due to ongoing low demand in the North American semi-trailer market, profit forecasts for 2025 and 2026 have been revised down by 21.7% and 16.4% to 1.11 billion yuan and 1.42 billion yuan, respectively [4]. - The current stock price corresponds to P/E ratios of 15.2 and 11.9 for 2025 and 2026, with a target price of 11.33 yuan, indicating a potential upside of 26.2% [4].

Financial Summary - As of June 30, 2025, total assets amounted to RMB 23.15 billion, an increase from RMB 22.69 billion as of December 31, 2024 [4][8]. - Total liabilities reached RMB 8.20 billion, up from RMB 7.75 billion in the previous year [6][8]. - Shareholders' equity totaled RMB 14.96 billion, slightly increasing from RMB 14.94 billion [8]. Income Statement Highlights - Operating revenue for the six months ended June 30, 2025, was RMB 9.75 billion, a decrease from RMB 10.70 billion in the same period of 2024 [10][12]. - Net profit for the same period was RMB 408.19 million, down from RMB 573.99 million year-on-year [10][12]. - Basic and diluted earnings per share were both RMB 0.21, compared to RMB 0.28 in the previous year [14]. Cash Flow Analysis - Net cash generated from operating activities was RMB 927.90 million, compared to RMB 913.79 million in the same period of 2024 [16][22]. - Cash flow from investing activities showed a net inflow of RMB 286.75 million, a significant improvement from a net outflow of RMB 227.35 million in the previous year [18][20]. - Cash flow from financing activities resulted in a net outflow of RMB 663.27 million, compared to RMB 771.26 million in the same period of 2024 [20][22]. Business Performance - The company produced approximately 53,000 various types of semi-trailers in the first half of 2025, with revenue from global semi-trailer business reaching RMB 6.92 billion, contributing a gross profit of RMB 1.13 billion [26][27]. - The "Starlink Plan" and "Xiongqi Plan" have shown effectiveness, with sales volume of Starlink semi-trailers in the Chinese market increasing by 10% and revenue rising by 11% [30][31]. - The company maintained a market share of 23.07% in the Chinese semi-trailer market, continuing to hold the top position for six consecutive years [33]. Future Outlook - The company aims to evolve into a "full value chain" operator for Starlink semi-trailers, with plans to integrate the "Xiongqi Plan" for liquid tankers to achieve similar results [40][41]. - The company is focused on enhancing its global supply chain resilience and adapting to geopolitical risks through organizational and operational improvements [41]. - The introduction of pure electric head-mounted trailers is a key strategy, with ongoing development and market penetration expected in the near future [42][43].

National Policies - The Ministry of Industry and Information Technology (MIIT) has implemented the "Fuel Consumption Limits for Heavy Commercial Vehicles" starting July 1, 2024, which includes changes in measurement methods, fuel consumption limits, and CO₂ emissions calculations compared to the previous standard [3] - The Ministry of Transport has initiated a standardized improvement action for "Driver's Home" services at highway service areas, focusing on expanding coverage, standardizing services, and enhancing safety and promotional efforts [6] - A meeting held on June 17 emphasized the need to protect the legal rights of truck drivers, ensuring that their complaints are handled promptly and effectively [8] - MIIT has released management guidelines for the modification of truck bodies, effective from July 2024, which will include various types of trucks and consider market conditions and quality control [11] Local Policies - Hebei Province has introduced electronic charter vehicle plates effective June 20, 2024, which will replace paper plates by August 1, 2024 [15] - Henan Province has issued guidelines for subsidies for the scrapping and updating of old operational trucks, with applications open until December 31, 2025 [17] - Sichuan Province has launched initiatives to improve the working environment for truck drivers, including the establishment of "Warm Homes" for drivers in key urban areas [19] - Ningxia has introduced an online application feature for subsidies related to the scrapping of old operational trucks, streamlining the process for applicants [22] - Inner Mongolia has established a rapid dispute resolution mechanism for truck toll fee complaints, aiming for quick responses and resolutions [24] - Shandong Province has opened a "green channel" for agricultural machinery transport, simplifying procedures for vehicles carrying harvesters [26] - Shenzhen has extended preferential traffic policies for new energy logistics vehicles, allowing them to operate in most areas with specific restrictions [28]