Summary of Zongshen Power's Conference Call Company Overview - **Company**: Zongshen Power - **Industry**: General Machinery, Motorcycles, Aviation Engines, Energy Storage Key Points Financial Performance - In Q3 2025, Zongshen Power achieved a revenue of **9.583 billion** yuan, a year-on-year increase of **31%** [3] - Net profit reached **758 million** yuan, up **93.7%** year-on-year [3] - General machinery business revenue approached **5 billion** yuan, with a growth rate of **40%-50%** [2][3] - Engine business revenue was approximately **3 billion** yuan, growing by **20%-30%** [3] Business Segments Growth - General machinery and motorcycle products showed significant growth, with motorcycle and tricycle products increasing by **20%** in Q3, up from **14%** in the first half of the year [2][6] - The energy storage sector, although smaller, is experiencing strong market demand and growth [3] - The company is also exploring new opportunities in the aviation engine sector, establishing a new platform to address international sanctions and future capital operations [3] Product and Market Strategy - The company is transitioning from push-type lawn mowers to smart lawn mowers, aiming to increase product value [2][8] - Zongshen Power plans to enhance the proportion of high-value products, such as large-displacement motorcycle engines, to improve unit prices [8] - International business revenue now exceeds **50%**, with over **80%** of exports directed to North America [7] Manufacturing and Capacity Expansion - Zongshen Power has three factories in Vietnam, which serve as a crucial manufacturing base and a gateway to the North American market [10][11] - The company is also considering other potential markets, including South Africa, Hungary, and Mexico, to enhance its global footprint [12] Future Outlook - The company anticipates stable growth in core businesses, including general machinery, engines, energy storage, and aviation engines [13] - New product developments in the aviation engine sector are underway, with existing orders valued between **200 million** to **300 million** yuan [15] - The company is investing in electric and intelligent product capacities, necessitating new factory constructions [21] Emerging Trends and Innovations - Zongshen Power is leveraging artificial intelligence to enhance management and production efficiency, as well as to accelerate research and development processes [19] - The low-altitude economy is becoming more active, with increased demand for engines as manufacturers develop new aircraft models [18] Military and Strategic Developments - The military product segment is experiencing high demand, with a significant portion of revenue generated domestically due to international sanctions [20] - The integration with Longxing is progressing smoothly, focusing on asset swaps and independent property evaluations [23] Capital Expenditure Plans - Future capital expenditures will focus on electric and intelligent product development, including battery and inverter production [21] Acquisition Performance - The acquisition of Li Zhihui is expected to meet profit targets, with projected net profits between **55 million** to **60 million** yuan for 2025 [22] This summary encapsulates the key insights from Zongshen Power's conference call, highlighting its financial performance, growth strategies, market dynamics, and future outlook.