Core Viewpoint - Zhao Ming, former CEO of Honor, officially announced his new role at Qianli Technology, marking a significant career shift from consumer electronics to the smart automotive and AI sectors [1][4]. Group 1: Zhao Ming's Transition - Zhao Ming has been appointed as the co-chairman of Qianli Technology and is a candidate for the sixth board of directors as a non-independent director [3]. - He expressed his excitement about joining Qianli Technology, indicating a long-term commitment to the company [3]. - This transition signifies Zhao Ming's move from a consumer electronics giant to a focus on smart vehicles and AI technology [4]. Group 2: Qianli Technology's Strategic Direction - Qianli Technology has initiated an "AI+Car" strategic layout, transitioning from traditional automotive manufacturing to a technology-driven enterprise [7]. - The company has merged various teams to enhance its capabilities in intelligent driving and smart cockpit technologies [7]. - Qianli Technology, previously known as Lifan Technology, has undergone significant changes, including a rebranding and a shift in ownership structure [8]. Group 3: Market Performance - In January 2026, Qianli Technology reported total vehicle sales of 7,119 units, with only 30 units being electric vehicles, indicating a substantial reliance on traditional models [10]. - The sales data revealed a dramatic decline in electric vehicle sales, down 98.28% year-over-year, while other vehicle sales surged by 638.44% [11]. - The company is positioning itself as a technology enterprise centered on "AI+Car," moving away from traditional automotive classifications [11]. Group 4: Industry Trends - The automotive sector is witnessing a trend where former executives from mobile phone companies are transitioning into the automotive industry, indicating a blending of technology and automotive expertise [14].

Summary of Qianli Technology Conference Call Company Overview - Qianli Technology is positioned advantageously in the wave of intelligence, boasting top-tier AI and autonomous driving talent reserves, making it one of the few companies in the A-share market capable of providing a full suite of algorithm solutions [2][3] - The company underwent bankruptcy restructuring, bringing in strategic investors such as Geely and Liangjiang Capital, and established Ruiblu Automobile in partnership with Geely [2][4] - In 2024, the founder of Megvii, Yin Qi, will become the chairman, marking a transition to a technology-driven enterprise [2][4] Core Business Lines - Qianli Technology's core business includes three main segments: motorcycles, passenger vehicles (Ruiblu Automobile), and intelligent driving technology [6] - The motorcycle business is stable and profitable, while the passenger vehicle segment focuses on ride-hailing and exports, and intelligent driving technology is a key development area [2][6] Financial Status - The company's financial situation before 2025 relies heavily on motorcycle and Ruiblu Automobile sales, with motorcycle sales being stable and profitable, while Ruiblu's performance is more volatile [7] - Overall profit margins have remained stable since the restructuring, and cash flow is expected to improve in 2026 through H-share listing [7] Robot Taxi Development - Qianli Technology is optimistic about the Robot Taxi market, which is projected to grow significantly from 80 billion to 700 billion between 2030 and 2035 [8][9] - The company collaborates with Cao Cao Mobility and Geely to build a robust Robot Taxi ecosystem, providing algorithms, platforms, and vehicle models [9] - Plans include launching a low-cost Robot Taxi solution and participating directly in operations through local government partnerships [9] Future Plans - The company aims to deepen its AI and automotive strategy, enhancing technical capabilities and expanding market share [10] - As a core supplier for Geely in L2 support algorithms, Qianli Technology anticipates revenue potential of 10 billion to 20-30 billion [10] - Plans to achieve a scale of 10,000 Robot Taxis correspond to a market value potential of 30-50 billion [10] - The company will also explore expansion into cockpit and robotics sectors, driven by AI [10] Shareholding Structure - Liangjiang Venture Capital and other local government entities hold 30% of the shares, while Chongqing Lifan Holdings owns 13% [5] - Mercedes-Benz announced an investment in December 2025, acquiring a 3% stake in the company [5]

Investment Highlights - The company's revenue for 2024 is projected to be 7.035 billion yuan, a year-on-year increase of 3.9%, with automotive business revenue at 4.217 billion yuan, up 12.9% year-on-year, while motorcycle business remains stable at 2.14 billion yuan [2] - Cash flow has improved, with a net operating cash flow of 525 million yuan in 2024, marking a turnaround from losses; the debt-to-asset ratio is 46.28%, significantly improved from the peak of 85.4% in 2019, indicating a gradual release of financial risk [2] - As the proportion of intelligent driving business increases, the company's profit structure is expected to continue to optimize [2] Strategic Transformation - Following its bankruptcy restructuring in 2020, the company established a stable control structure by introducing Geely Group, Chongqing Liangjiang Capital, and Megvii Technology, forming a "car company + government + technology" triad [3] - The company officially changed its name from "Lifan Technology" to "Qianli Technology" in 2025, marking its expansion from traditional manufacturing to smart mobility [3] - The management team, led by Megvii's founder Yin Qi, focuses on AI strategy, while former Huawei Car BU president Wang Jun oversees technology implementation, providing talent support for the "AI + car" strategy [3] Intelligent Driving Technology - The company has launched the Qianli Intelligent Driving 1.0 plan, covering multiple levels of intelligent driving functions, with plans to release an L3-level solution within six months and Robotaxi technology by H2 2026 [4] - The "Qianli Haohan" system, combined with Thor chips and multimodal large models, has already been mass-produced in models like Zeekr 9X, with technical indicators leading the industry [4] - The company leverages Geely's computing power center and AI-Drive large model to generate complex driving scenarios at a rate of 10,000 kilometers per hour, showcasing industry-leading data iteration efficiency [4] Business Synergy and Growth - The terminal business, particularly Ruiblue Automotive, focuses on the charging and swapping new energy sector, achieving sales of 38,131 units in H1 2025, a year-on-year increase of 176% [5] - The company is closely tied to Cao Cao Mobility, which is projected to have a 5.4% market share in the ride-hailing sector in 2024, ranking among the top three in the industry [5] - The total cost of ownership (TCO) for Cao Cao's customized vehicles is estimated to be 33%-40% lower than industry standards, enhancing profitability in the ride-hailing business [6] Financial Forecast and Investment Rating - The company forecasts revenues of 8.9 billion yuan, 10.6 billion yuan, and 12.8 billion yuan for 2025, 2026, and 2027, respectively, with corresponding PS valuations of 5.86, 4.89, and 4.06 times [7] - Given the successful AI transformation and expected growth in intelligent driving business, the company is rated as a "buy" for initial coverage [7] Motorcycle Business - The motorcycle business focuses on both fuel and new energy segments, with stable revenue and profitability, and an upward trend in revenue from 2020 to 2024 [43] - The company has launched high-displacement models and integrated smart features, with the motorcycle business expected to grow significantly, mirroring trends seen in Japan [46][49] Automotive Business - Qianli Technology's automotive segment, particularly through Ruiblue Automotive, is expected to see a significant increase in revenue share, reaching 59.96% of total revenue by 2024 [51] - The company has a strong export history, with fuel models seeing significant growth, and plans to expand its international market presence [59] Technology Business - The company aims to establish an "AI + car" ecosystem, with a focus on intelligent driving and smart cockpit technologies, leveraging partnerships with Geely and other industry players [65][106] - The establishment of Chongqing Qianli Intelligent Driving Technology Co., Ltd. in 2025 marks a significant step in integrating technology, capital, and policy resources for future growth in the intelligent driving sector [70][72]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is undergoing a significant transformation from traditional manufacturing to smart mobility, with a focus on AI-driven technologies and strategic partnerships [12][15]. - Financial indicators are gradually improving, with a forecasted revenue increase and a positive cash flow outlook, indicating a recovery from previous financial difficulties [6][27]. - The strategic partnership with Geely and the introduction of new technologies are expected to enhance the company's competitive position in the smart driving sector [70][80]. Summary by Sections 1. Business Transformation and Financial Analysis - The company has shifted from a motorcycle-centric business to a focus on smart vehicles, with significant investments in AI technology and strategic partnerships [12][15]. - Revenue is projected to grow from 7.04 billion yuan in 2024 to 10.64 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 19.8% [1]. - The net profit is expected to increase significantly, from 40 million yuan in 2024 to 160 million yuan in 2026, reflecting a strong recovery trajectory [1]. 2. Business Segments Performance - The motorcycle business remains stable, with a focus on high-displacement models and a gradual recovery in revenue and profitability [43][44]. - The automotive segment, particularly through the joint venture with Geely, is expected to contribute significantly to revenue, with a projected 59.96% share of total revenue by 2024 [53][54]. - The technology segment is expanding, with a focus on AI-driven solutions and smart driving technologies, aiming to establish a comprehensive ecosystem [70][80]. 3. Strategic Partnerships and Market Position - The company has formed a robust partnership with Geely and other tech firms, enhancing its capabilities in AI and smart driving [70][80]. - The introduction of the "千里浩瀚" smart driving solution is expected to position the company as a key player in the autonomous driving market [89]. - The company plans to leverage its partnerships to enhance its product offerings and expand its market reach, particularly in the smart mobility sector [70][80].

Core Viewpoint - Q3 2025 financial results of Qianli Technology show significant revenue growth driven by automotive and motorcycle sales, but profitability remains a concern due to high costs and low margins [1][2] Financial Performance - Q3 revenue reached 2.762 billion yuan, a year-on-year increase of 51.2% [1] - Net profit attributable to shareholders was approximately 22.11 million yuan, up 60.75% year-on-year [1] - Non-recurring net profit showed a loss of 42.41 million yuan, a year-on-year decline of 657% [1][2] - For the first three quarters, total revenue was 6.946 billion yuan, a 44.27% increase year-on-year [1] - Net profit attributable to shareholders for the first three quarters was nearly 53.28 million yuan, a 33.37% increase year-on-year [1] Business Segments - Growth in revenue is primarily attributed to increased sales in the automotive and motorcycle sectors [1] - Key automotive products include the micro electric vehicle "Blue Balloon" and the A0-level fuel SUV "Ruilan X3 PRO," both priced under 60,000 yuan [1] - The "Blue Balloon" achieved over 3,000 units sold in September after its launch, while "Ruilan X3 PRO" sales exceeded 5,700 units in July and August but dropped to 2,381 units in September [1] Profitability Challenges - The sales profit margin for Q3 was -2%, indicating challenges in profitability despite revenue growth [1] - The increase in net profit was largely due to government subsidies and foreign exchange gains, with government subsidies amounting to 87.59 million yuan [2] - Excluding non-recurring gains, the company reported a net loss of 42.41 million yuan, primarily due to increased advertising expenses and R&D costs for a new smart vehicle cockpit operating system [2] Strategic Developments - Qianli Technology, originally Lifan Automotive, underwent a transformation after judicial restructuring and is now focusing on an "AI + Vehicle" strategy [2] - The company announced three main business directions: intelligent driving, intelligent cockpit, and Robotaxi services, which are capital-intensive [2] - Plans for an IPO in Hong Kong were initiated in mid-October, with high market valuations based on future potential in the new business areas, which have yet to generate revenue [2]

香港交易及結算所有限公司、香港聯合交易所有限公司及證券及期貨事務監察委員會對本申請版本的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本申請版本全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Chongqing Afari Technology Co., Ltd. 重慶千里科技股份有限公司 （「本 公 司」） （於中華人民共和國註冊成立的股份有限公司） 的申請版本 警 告 本申請版本乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監會」）的要求而 刊發，僅用作提供資訊予香港公眾人士。 本申請版本為草擬本，當中所載資料並不完整，亦可能會作出重大變動。 閣下閱覽本文件，即表示 閣 下 知悉、接納並向本公司、其聯席保薦人、整體協調人、顧問或包銷團成員表示同意： 於本公司招股章程根據香港法例第32章公司（清 盤 及 雜 項 條 文）條 例 呈 交 香 港 公 司 註 冊 處 處 長 登 記 前，不 會 向 香 港 公 眾 人 士 提 出 要 約 或 邀 請。倘 於 適 當 時 候 向 香 港 公 眾 人 士 提 出 要 約 或 邀 請，有 意 ...

Core Viewpoint - Chongqing Qianli Technology Co., Ltd. reported significant growth in revenue and net profit for the first half of 2025, driven by increased sales in both automotive and motorcycle sectors, while also focusing on AI and smart manufacturing technologies [2][3]. Company Overview and Financial Indicators - The company achieved an operating income of approximately 4.18 billion RMB, a 40.04% increase compared to the same period last year [3][10]. - Total profit reached approximately 57.30 million RMB, a significant recovery from a loss of 130.15 million RMB in the previous year [3][10]. - Net profit attributable to shareholders was approximately 31.17 million RMB, up 19% from 26.19 million RMB in the previous year [3][10]. - The company reported a net cash flow from operating activities of approximately 1.31 billion RMB, a 396.29% increase year-on-year [3][10]. Industry Development - The automotive industry in China continued to grow, with total vehicle sales reaching 15.65 million units in the first half of 2025, a year-on-year increase of 11.4% [4][5]. - New energy vehicle sales surged to 6.94 million units, marking a 40.3% increase and a market penetration rate exceeding 44% [4][5]. - The motorcycle industry also saw healthy growth, with total sales of 10.61 million units, a 11.54% increase year-on-year [4][5]. Business Operations and Strategy - The company focuses on the "AI + Vehicle" strategy, aiming to establish a global smart mobility technology brand [4][5]. - The automotive segment emphasizes building a comprehensive charging and swapping capability, while the motorcycle segment aims for international expansion [5][6]. - The company launched the "Qianli Smart Driving 1.0" solution, which includes various versions capable of complex interactions and decision-making [5][6]. Financial Performance Analysis - The company's operating costs increased to approximately 3.84 billion RMB, reflecting a 40.34% rise due to higher sales [10]. - Research and development expenses rose by 59.67% to approximately 287.59 million RMB, driven by investments in smart vehicle technologies [10]. - The company reported a significant increase in other income, primarily due to government subsidies [10]. Future Outlook - The company plans to enhance its investment in technology and strengthen partnerships with major automotive manufacturers to promote the application of AI technologies [8][9]. - The focus will remain on integrating software and hardware resources to build a comprehensive strategic ecosystem [8][9].

Core Points - The opening of the "Shanghai-Chongqing Direct Fast Line" has significantly reduced transportation time from Chongqing to Shanghai by nearly one-third, enhancing efficiency [3] - The fast line, operational since 2020, has cut the passage time by over 50% and reduced logistics costs by 40%, making it the preferred waterway for container customers between the two cities [3] - In the first half of this year, the Chongqing area dispatched 647 vessels and transported 204,000 TEUs via the fast line, marking increases of 22.1% and 31.6% respectively, thereby activating the potential of the "Golden Waterway" [4] Industry Developments - The Chongqing Municipal Committee emphasized the need to deepen reforms to enhance the service capacity of the inland open comprehensive hub, with smooth external logistics channels being a crucial support for this goal [3] - In addition to the fast line, the "Western Land-Sea New Corridor" is facilitating the export of vehicles, with over 26,400 vehicles exported through the Guoyuan Port in the first half of the year, reflecting a growth of 25% [4] - The establishment of a green channel for automobile exports in collaboration with Chongqing Customs aims to streamline customs clearance processes, significantly reducing the time required for trains at border ports [3][4]

Group 1 - The "White Paper on the Development of Intelligent Connected New Energy Automotive and Motorcycle Industry in Beibei District, Chongqing" outlines six major opportunity lists for the industry, with a total project scale of 22.5 billion yuan [1] - The opportunity list includes projects related to complete vehicles, automotive electronics, core component R&D, industry transformation, aftermarket services, and a sub-fund for the industry [1] - The automotive and motorcycle industry is a pillar industry in Beibei, with over 100 related enterprises and a preliminary establishment of a complete industrial ecosystem [2] Group 2 - In the first quarter of this year, the industrial enterprises in the automotive and motorcycle industry chain achieved an output value of 4.846 billion yuan, a year-on-year increase of 15.4%, accounting for 17.8% of the total industrial output value in the district [2] - The company Lifan Technology Group has rebranded to "Chongqing Qianli Technology Co., Ltd." to embrace the wave of intelligence, with its subsidiary, Ruiblue Automotive, achieving a record high sales volume of 59,094 vehicles in 2024 [2] - Chongqing Shundoli Motorcycle Co., Ltd. is actively transforming from traditional manufacturing to intelligent manufacturing, investing 150 million yuan to update over 440 sets of equipment, resulting in a 30% increase in production efficiency [2][5]