Core Viewpoint - Bafang Electric (Suzhou) Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, primarily due to weak terminal demand and increased competition in the electric bicycle industry [2][3]. Financial Performance - Revenue for the first half of 2025 was approximately 643.39 million RMB, a decrease of 5.68% compared to 682.12 million RMB in the same period last year [2][3]. - Total profit for the period was about 36.83 million RMB, down 28.29% from 51.36 million RMB year-on-year [2][3]. - Net profit attributable to shareholders was approximately 32.19 million RMB, reflecting a 36.44% decrease from 50.65 million RMB in the previous year [2][3]. - The basic earnings per share decreased by 36.36% to 0.14 RMB from 0.22 RMB [2][3]. Business Overview - The company primarily engages in the research, production, and sales of electric bicycle motors and related electrical systems, with a focus on electric bicycles [3][4]. - Bafang Electric has developed a range of products including mid-mounted and hub motors, and has capabilities to supply complete electrical systems for various types of electric bicycles [3][4]. Research and Development - In the first half of 2025, the company invested approximately 27.05 million RMB in R&D, a decrease of 36.90% compared to the previous year [2][3]. - The company filed for 4 new patents and received 17 patent grants, indicating a commitment to technological advancement [4]. Market Strategy - Bafang Electric is expanding its global footprint by establishing service networks in multiple European countries, enhancing local support and customer experience [5][6]. - The company has signed a partnership agreement with a UK service provider to manage dealer services, which is expected to boost business growth in the UK market [5][6]. Compliance and Sustainability - The company is preparing for the new EU certification standards for electric bicycle batteries, ensuring compliance and enhancing product safety [6]. - Bafang Electric's self-built testing center has achieved international recognition, which will expedite the certification process for its battery products [6]. Shareholder Returns - In the first half of 2025, the company completed a cash dividend distribution amounting to 36.75% of its net profit for the previous year, aligning with its shareholder return strategy [7][8]. - Since its listing in November 2019, Bafang Electric has distributed approximately 1.03 billion RMB in cash dividends [7][8]. Corporate Governance - The company has strengthened its governance framework to mitigate risks and ensure compliance with relevant laws and regulations [7][8]. - Bafang Electric emphasizes communication with key stakeholders to enhance oversight in critical areas such as related party transactions and insider information [8].