Core Viewpoint - The earnings presentation of Fu'ao Co., Ltd. highlighted the importance of direct communication with investors to reduce information asymmetry and enhance investor relations, emphasizing that sustained performance growth is crucial for long-term market valuation [1][3]. Group 1: Company Performance and Strategy - In the first half of the year, Fu'ao Co., Ltd. achieved significant growth in its suspension systems, new energy, and intelligent connected vehicle sectors, securing multiple orders from major automotive manufacturers [2]. - The company obtained 141 new orders, with a projected lifecycle revenue of 320.5 billion yuan, where 73.9% of the orders are from the new energy sector [2]. - The management acknowledged the challenges faced in certain business segments and outlined strategies to address these issues while continuing to focus on core markets [2]. Group 2: Market Perception and Valuation - The management recognized the discrepancy between the company's stock performance and industry trends, attributing it to various complex factors, including market preferences and the transitional phase of the company [3][4]. - Fu'ao Co., Ltd. is committed to improving its core competitiveness and enhancing communication with the market to better reflect its intrinsic value [3]. - The company has distributed approximately 4.75 billion yuan in share buybacks and 36.8 billion yuan in cash dividends since its listing in 2013, demonstrating its commitment to shareholder returns [4].

Group 1 - The company has achieved rapid growth in its suspension systems, new energy, and intelligent connected vehicle sectors during the first half of the year, successfully securing multiple series of electronic control shock absorber orders from major automakers such as Chery, Seres, and Changan [2] - A total of 141 new orders have been acquired, with an expected lifecycle revenue of 32.05 billion yuan, of which 73.9% comes from the new energy sector [2] - The company has also obtained 79 orders from traditional markets, projecting a lifecycle revenue of 17.89 billion yuan, which accounts for 55.8% of the total, and 62 orders from newly expanded markets with a lifecycle revenue of 14.16 billion yuan, representing 44.2% [2] Group 2 - FUSAI, a subsidiary of the company, was established in 2020 and has focused on building research and development capabilities and expanding market orders, achieving significant breakthroughs in the supply chains of major automakers like Hongqi, Volkswagen, and Toyota [3] - The company has built a stable R&D output capability by obtaining various certifications, including CNAS national laboratory certification, ASPICE software level 3 certification, and TiSAX cybersecurity certification, along with ISO9001 and IATF16949 certifications [3] - FUSAI has rapidly entered the supply chains of major automakers, achieving comprehensive breakthroughs in core products such as screens, instruments, radar, antennas, and intelligent domain controllers, driving significant revenue growth [3]

Core Viewpoint - Fuyao Automotive Parts Co., Ltd. is actively engaging with investment institutions to discuss its strategic developments and growth prospects in the automotive parts industry, particularly focusing on its electric shock absorber technology and expansion into new business areas [1][2]. Group 1: Electric Shock Absorber Technology - Fuyao's electric shock absorber platform is a leading supplier in the domestic suspension system market, with a projected revenue growth of 500% year-on-year in 2024, driven by early market entry and strong product quality [2]. Group 2: Subsidiary Developments - Fusay Automotive Electronics Co., Ltd., a subsidiary of Fuyao, focuses on smart cockpit, autonomous driving, and connected technology, achieving significant growth and recognition in the industry since its establishment in 2020 [2]. Group 3: Robotics and Business Strategy - Fuyao is concentrating on the automotive parts sector while maintaining a cautious approach towards the humanoid robotics field, indicating a preference for application-oriented developments in the latter [2]. Group 4: Mergers and Acquisitions - The acquisition of German ABC Company aims to enhance Fuyao's technological capabilities and expand its business reach, with a focus on optimizing operations and exploring emerging market opportunities [2]. Group 5: Investment in Emerging Technologies - Fuyao has invested 100 million yuan in the Qizhi Fund to support the flying car project, positioning itself to capitalize on the trillion-level market potential in this new sector [2].

Group 1: Company Performance and Market Strategy - The company emphasizes its commitment to market value management despite a stagnant market value over the past ten years, focusing on strategic areas such as lightweight, electrification, and intelligent connectivity [2][3] - Since its listing in 2013, the company has distributed nearly 4.7 billion CNY in cash dividends, stock dividends, and share repurchases, reflecting a commitment to shareholder returns [3] - The company has secured 141 new orders in the first half of the year, with a projected lifecycle revenue of 32.05 billion CNY, of which 73.9% comes from the new energy sector [4][5] Group 2: Challenges and Responses - The company acknowledges the impact of external factors such as macroeconomic conditions and market sentiment on stock performance, which may not fully reflect the company's actual value [3][7] - Management recognizes the significant undervaluation compared to industry peers and is actively working to improve this perception through solid operations and enhanced communication with investors [7][8] - The company is addressing challenges in various business segments, with notable growth in suspension systems and new energy sectors, while also managing risks in traditional markets [4][5] Group 3: Investor Relations and Communication - The earnings presentation serves as a crucial platform for the company to communicate its operational results and future outlook, aiming to reduce information asymmetry with investors [6] - Continuous performance growth is seen as a key driver for attracting long-term investors, with the company committed to transparent communication regarding its intrinsic value [6][8] - The management is focused on improving investor relations by addressing concerns and showcasing the company's growth potential and operational strengths [6][8]

Group 1: Company Overview and Market Position - Fawer Automotive Parts Co., Ltd. is a leading domestic supplier of suspension damping systems, with a significant market share in the electronic damping system sector [2][3] - The revenue from electronic damping systems is projected to grow fivefold year-on-year in 2024, driven by early market positioning and strong product quality [2][3] Group 2: Subsidiary and Technological Advancements - Fawer Automotive Electronics Co., Ltd., a subsidiary, focuses on intelligent cockpit, autonomous driving, and connected technology, achieving rapid growth in revenue and market presence [4] - The company has established a robust R&D foundation, obtaining multiple certifications and awards, including a ranking of 22nd in the 2024 Chinese automotive intelligent supplier revenue list [4] Group 3: Strategic Direction and Investments - The company is committed to its core business in automotive parts, with no immediate plans to expand into the robotics sector due to significant differences in application and technology [5] - Fawer has invested 100 million yuan in the Qizhi Fund to explore emerging business opportunities, particularly in the flying car sector, aiming to establish a foothold in a trillion-yuan market [6]

Group 1 - The company has established an electromagnetic valve assembly production line and an electronic control shock absorber assembly production line for its passenger car air suspension project [1] - Currently, products are in the sample submission and verification stage, with no designated manufacturers for pre-installation [1]

Group 1: International Market Expansion - Fawer Automotive Parts Co., Ltd. is advancing its international development through multi-dimensional strategies, including establishing offices in Europe and acquiring a German fastener company to integrate into the local automotive supply chain [2][3] - In the U.S., the company has formed a local entity to enhance customer response efficiency and solidify its market share, while a factory in Mexico aims to reduce production costs and improve product competitiveness in North and Latin America [2][3] - The resource sharing, technical collaboration, and market synergy among overseas business units are gradually becoming evident, with plans to optimize operations and explore emerging market opportunities [3] Group 2: Subsidiary and R&D Focus - Fawer’s subsidiary, Fusay, is a core strategic resource in intelligent cockpits, autonomous driving, and connected technologies, focusing on R&D capability and market order expansion [3] - The company has established R&D teams in Changchun and Dalian, achieving stable R&D output and penetrating mainstream automotive supply chains with products like screens, instruments, and radar [3] Group 3: External Market Development - Since the beginning of the 14th Five-Year Plan, the company has significantly improved its external market revenue, with the external market revenue share increasing from 14% at the start of the 13th Five-Year Plan to 30% [3] - In 2024, the company secured 307 new orders, with 142 from external markets, leading to an external order revenue share of 48%, and over 80% of new energy orders covering various product series [3]

Group 1: Business Strategy and Market Positioning - The company aims to implement a comprehensive chassis strategy, focusing on resource sharing across market, manufacturing, and R&D sectors to enhance collaboration among business units [2] - The external market revenue share has increased to 30%, with new orders from external markets reaching 48% in 2024, indicating a diversification of the customer base [3] Group 2: Customer Structure and Key Clients - Major clients include internal customers from the FAW Group, such as FAW Hongqi, FAW Volkswagen, FAW Toyota, FAW Jiefang, and FAW Bestune, alongside significant external clients [3] - The company has successfully expanded its customer structure, particularly in the new energy vehicle sector, providing robust support for stable growth [3] Group 3: Product Offerings and Partnerships - The company's electronic control shock absorber products are supplied to various models under the Seres brand, as well as to automakers like Hongqi, Geely, Chery, Changan, and Xiaopeng [4] Group 4: International Development and Expansion - The company has established an international strategic layout, including a European office and a German fastener acquisition to integrate into the European automotive supply chain [5] - In North America, the establishment of a U.S. company and a factory in Mexico aims to enhance market responsiveness and reduce production costs, improving competitiveness in the Americas [5] Group 5: Future Directions and Focus Areas - The company will continue to focus on its core automotive parts business, emphasizing R&D, production, and sales, while monitoring industry trends for potential strategic expansions into robotics if aligned with its capabilities [6]

Group 1: Company Strategy and Market Position - The company aims to strengthen customer cooperation and expand high-quality domestic and international customer resources to enhance market share [2][3] - Focus on cost control through a low-cost strategy and improving operational quality across the entire value chain [2][3] - Emphasis on R&D in "lightweight, electrification, intelligence, and connectivity" to accelerate product transformation and upgrade [2][3] Group 2: Financial Performance and Management - In Q1 2025, the company reported a revenue of CNY 3.627 billion, a decrease of 3.64% year-on-year, while net profit increased by 0.26% to CNY 163 million [11] - In 2024, the company achieved a revenue of CNY 16.468 billion, a growth of 3.95%, with net profit rising by 11.93% to CNY 676 million [12][13] - The net cash flow from operating activities increased by 961.69% in 2024, attributed to improved cash management practices [14] Group 3: R&D and Product Development - The company plans to increase R&D investment in 2025, focusing on core technologies such as chassis systems and electric systems [15] - The company has successfully developed electric control shock absorbers, leading to significant revenue growth and market share in this segment [6][9] Group 4: Market Expansion and Order Growth - In 2024, the company secured 307 new orders, with external market orders accounting for 48% of total revenue, and over 80% of new energy orders [8] - The company’s strategy includes differentiated market expansion tactics tailored to various customer groups to achieve significant order growth [8] Group 5: Industry Trends and Challenges - The automotive parts industry is rapidly transforming towards electrification, intelligence, connectivity, and low-carbon solutions, requiring stronger R&D capabilities [9][10] - The company aims to adapt to these changes by enhancing its core competencies and maintaining a flexible operational strategy [10]