Resource Overview - The company has significant white marble resources: 0.9 billion tons at Chaohu Baomei and 5.8 billion tons at Wutai Baomei, with an additional 1.3 billion tons held by Anhui Baomei, which is not yet operational [3][4]. Magnesium Production Advantages - The company utilizes vertical furnace magnesium smelting technology, recognized in the national "14th Five-Year Plan" for its low energy consumption, high production efficiency, small footprint, low labor costs, and high automation [3][4]. Market Applications - Following the new national standards in 2024, the electric bicycle industry is rapidly adopting magnesium alloys to replace plastic components, with significant growth expected during the "15th Five-Year Plan" period [3][4]. - Major electric vehicle manufacturers are already using magnesium alloy components, leading to weight reduction, improved range, and enhanced shock absorption [3][4]. Future Plans - Over the next 3 to 5 years, the company aims to expand its scale and accelerate production across multiple bases, focusing on magnesium materials, particularly in the automotive sector [3][4]. - The company plans to increase the penetration of magnesium metal materials in various automotive components, including steering wheels and instrument panel supports [3][4]. Market Conditions - Magnesium prices have remained below aluminum prices, presenting unprecedented growth opportunities for magnesium alloy die-casting components [4]. Investor Relations Compliance - The company ensures compliance with information disclosure regulations, maintaining transparency and accuracy in communications with investors [4].

Group 1: Macro Strategy - The current economic situation indicates increasing pressure on stabilizing investment and consumption, suggesting that a new round of growth-stabilizing policies is imminent [26][27] - The expected GDP growth for the third quarter is between 4.7% and 4.9%, with a cumulative growth of approximately 5.1% for the first three quarters [26][27] - The policy direction includes utilizing debt limits, introducing new policy financial tools, and the likelihood of interest rate cuts to lower costs for homebuyers and businesses [26][27] Group 2: Stock and Bond Correlation - The correlation coefficient between stock and bond returns is projected to range from -0.216 to -0.229 from September to November 2025, indicating a continued upward trend compared to August 2025 [28][29] - The relationship between economic growth and inflation significantly influences stock and bond returns, with economic growth typically having an inverse effect on stock and bond yields [28][29] Group 3: Industry Insights - The Robotaxi industry is identified as a key investment theme for the next five years, with a focus on the revenue-generating capabilities of AI vehicles [19][20] - The copper market is experiencing a supply tightness due to maintenance in domestic smelting plants and disruptions in major mines, while demand is expected to increase as the holiday season approaches [21] - The aluminum market is seeing a slight increase in production capacity utilization, with expectations of price stability as demand rises during the peak season [21]

Core Insights - The company has been deeply involved in the magnesium alloy automotive parts sector for over a decade, achieving industry-leading product gross margins. It was established in 2003 and entered the magnesium alloy automotive parts field in 2014, currently serving notable clients such as Chery, Porsche, BMW, and Xpeng [1] - The company reported a revenue of 184 million yuan in the first half of 2025, a year-on-year increase of 0.1%, while the net profit attributable to shareholders was 31 million yuan, down 15.2% year-on-year, primarily due to expense ratios and fixed asset depreciation [1] - The gross margin for magnesium alloy die-casting products is projected to be 33.77% in 2024, an increase of 1.04 percentage points year-on-year, significantly higher than comparable companies [1] Market Potential - The demand for lightweight materials is significantly driven by the dual carbon goals and concerns over the range of new energy vehicles. The economic and corrosion resistance issues that previously limited the development of magnesium alloys have been largely resolved [1] - The market size for magnesium alloys is estimated to reach 16 billion yuan by 2025, based on projected sales of 16 million new energy vehicles and an average magnesium usage of 25 kg per vehicle. In an optimistic scenario, the market could exceed 50 billion yuan by 2030, potentially surpassing 100 billion yuan when considering applications in the robotics market [1] Product Expansion and Financial Strategy - The company has been expanding its magnesium alloy product line, moving from small to medium and large products. By the first half of 2022, revenue from medium and large products accounted for 60.18% of total revenue, an increase of 7.46 percentage points since 2019 [2] - The average selling price (ASP) of the company's products is expected to reach 62.5 yuan in 2024, with a compound annual growth rate (CAGR) of 18% from 2021 to 2024 [2] - The company plans to issue convertible bonds to raise no more than 450 million yuan for the construction of a project to produce 3 million sets of high-strength large magnesium alloy precision components annually. As of August 2025, the company has secured orders worth 1.363 billion yuan for magnesium alloy powertrain casings, with production expected to commence in 2026 [2] Technological Advancements - The company has been acquiring semi-solid magnesium alloy injection molding equipment since 2021, with five sets procured to date. A 6600T machine was delivered in July 2025, capable of a maximum theoretical injection weight of 38 kg [2] - The company has successfully completed mass production of various products, including display brackets and magnesium alloy electric drive casings, since 2022, indicating significant changes at the industrial level [2] Financial Forecast - The company is projected to achieve revenues of 590 million yuan, 1.077 billion yuan, and 1.519 billion yuan from 2025 to 2027, with net profits attributable to shareholders of 110 million yuan, 189 million yuan, and 282 million yuan respectively. The earnings per share (EPS) are expected to be 0.98 yuan, 1.69 yuan, and 2.52 yuan per share for the same period [3] - The current market capitalization corresponds to price-to-earnings (PE) ratios of 55, 32, and 21 for 2025 to 2027 [3] - The company is recognized as a small but precise player in the magnesium alloy die-casting industry, with leading capabilities in semi-solid magnesium alloy product mass production and a robust order backlog, anticipating a harvest period in the automotive magnesium alloy business starting in 2026 [3]

Group 1 - The company conducted a research meeting on September 17, 2025, in Shenzhen with four institutions including Huaxi Securities and Baoying Fund [1] - The main customer structure for 2024 will primarily consist of joint venture brands, with a significant increase in revenue contribution from independent brands due to the rising penetration of new energy vehicles [1] - The integrated die-casting business, located in Guangzhou, has invested in four large die-casting machines, aiming to achieve profitability this year despite a slight loss in the first half of the year with revenue of 291 million yuan [1] Group 2 - The interior and exterior trim business has stable revenue but has experienced a slight decline in gross margin due to industry competition, with plans to invest in mainstream products like smart cockpits and illuminated trim [1] - The company has a technical reserve in magnesium alloy die-casting, which it developed over a decade ago, and is now seeing increased interest from manufacturers as raw material prices decline [1] - The company is actively pursuing overseas production capacity, particularly in Southeast Asia and North America, and will adapt its plans based on international political and economic conditions [1]

Group 1: Customer Structure and Market Strategy - The main customer structure for 2024 remains focused on joint venture brands, but the revenue share from independent brands is gradually increasing due to the rising penetration of new energy vehicles, with a larger growth rate expected this year [1] - The company is actively adjusting its market strategy to keep pace with market trends and continuously improve its market share [1] Group 2: Integrated Die-Casting Business - The integrated die-casting business is primarily located in the Guangzhou factory, which has invested in four large die-casting machines with capacities of 16,000T, 12,000T, and two 7,000T machines, mainly producing components for new energy vehicles [1] - The revenue for the Guangzhou factory in the first half of the year was 291 million yuan, currently in a slight loss, but aims to achieve profitability as business volume increases [1][2] - The future trend for integrated die-casting is expected to enhance vehicle lightweighting and simplify manufacturing processes, with increasing adoption among major manufacturers [2] Group 3: Interior and Exterior Trim Business - The interior and exterior trim business includes products such as grilles, fenders, engine hoods, and emblems, primarily supplied to American, Japanese, and independent brand customers [3] - Revenue from the interior and exterior trim business has remained stable in recent years, although profit margins have slightly declined due to industry competition [3] Group 4: Magnesium Alloy Business - The company has previously developed magnesium alloy die-casting products and possesses certain technical reserves, but has not continued this business due to market issues [4] - With the recent decrease in raw material prices and the lightweight nature of magnesium alloys compared to aluminum alloys, more manufacturers are willing to explore magnesium alloy applications [4] Group 5: Overseas Production Capacity Planning - The company is actively planning to establish overseas production facilities, focusing on die-casting and interior/exterior trim business segments in regions such as Southeast Asia and North America [5] - Initial feasibility analyses are being conducted due to international political and economic factors, with plans to adapt based on changes in these relationships [5]

Company Overview - Xingyuan Zhuomei Technology Co., Ltd. is located in Ningbo, Zhejiang Province, established on July 16, 2003, and listed on December 15, 2022. The company specializes in the research, production, and sales of magnesium alloy and aluminum alloy precision die-casting products and supporting die-casting molds [1]. Business Composition - The main business revenue composition is as follows: magnesium alloy die-casting parts account for 68.00%, aluminum alloy die-casting parts for 21.43%, molds for 9.46%, and others for 1.11% [1]. Stock Performance - On September 18, the stock price of Xingyuan Zhuomei fell by 5%, closing at 54.49 CNY per share, with a trading volume of 402 million CNY and a turnover rate of 21.68%. The total market capitalization is 6.103 billion CNY [1]. Shareholder Information - Among the top ten circulating shareholders, Ping An Fund's advanced manufacturing theme stock fund (019457) increased its holdings by 450,800 shares in the second quarter, holding a total of 806,400 shares, which represents 2.41% of the circulating shares. The estimated floating loss today is approximately 2.3144 million CNY [2]. Fund Performance - The Ping An advanced manufacturing theme stock fund (019457) was established on October 24, 2023, with a latest scale of 430 million CNY. Year-to-date returns are 99.89%, ranking 7 out of 4222 in its category; the one-year return is 186.5%, ranking 1 out of 3804; and since inception, the return is 111.38% [2]. Fund Management - The fund manager of Ping An advanced manufacturing theme stock fund is Zhang Yinxian, who has been in the position for 1 year and 331 days. The total asset size of the fund is 1.425 billion CNY, with the best return during the tenure being 111.38% and the worst return being 29.88% [3].

Group 1 - The latest stock price of WanFeng Aowei is 18.87 yuan, an increase of 0.70 yuan compared to the previous trading day [1] - The stock reached a maximum of 19.07 yuan and a minimum of 18.00 yuan during the trading session, with a total trading volume of 2.04 million hands and a transaction amount of 3.798 billion yuan [1] - The company operates in the automotive parts industry, focusing on the research, production, and sales of aluminum alloy wheels and magnesium alloy die-cast parts [1] Group 2 - WanFeng Aowei's main office is located in Zhejiang and is a significant supplier of automotive parts in the Yangtze River Delta region [1] - The net inflow of main funds for WanFeng Aowei on that day was 337 million yuan, with a cumulative net inflow of 501 million yuan over the past five trading days [1]

Core Viewpoint - The company reported a revenue of 3.45 billion yuan in the first half of 2025, showing a year-on-year increase of 6.16%, with a net profit attributable to shareholders of 573 million yuan, up 27.42% year-on-year [3]. Financial Performance - In Q2 2025, the company achieved a revenue of 1.784 billion yuan, representing a year-on-year growth of 11.01% and a quarter-on-quarter increase of 7.12%. The net profit attributable to shareholders for the same period was 316 million yuan, reflecting a year-on-year increase of 44.95% and a quarter-on-quarter increase of 22.77% [3]. - The company's net profit margin for H1 2025 was 16.6%, an increase of 2.8 percentage points year-on-year, while the gross profit margin was 29.25%, up 0.57 percentage points year-on-year [4]. Cost Management - The expense ratio for Q2 2025 was 7.69%, down 5.30 percentage points year-on-year and 3.70 percentage points quarter-on-quarter. The breakdown of expenses showed sales, management, financial, and R&D expense ratios at 0.65%, 6.46%, -4.19%, and 4.77% respectively [5]. Strategic Developments - The acquisition of Zhuoerbo is progressing, with commitments for net profits of no less than 1.415 billion yuan, 1.569 billion yuan, and 1.741 billion yuan for 2025-2027, totaling a minimum of 4.725 billion yuan [7]. - The company is expanding its overseas production capacity, with the second phase of the factory in Mexico starting production in H1 2025 and a new aluminum casting factory in Malaysia under construction [8]. Business Outlook - The company forecasts net profits attributable to shareholders of 1.19 billion yuan, 1.486 billion yuan, and 1.778 billion yuan for 2025-2027, with corresponding price-to-earnings ratios of 16x, 13x, and 11x [9].

Core Viewpoint - The company reported a strong performance in the first half of 2025, with significant year-on-year growth in revenue and net profit, indicating robust operational efficiency and profitability [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 3.45 billion, a year-on-year increase of 6.16% - The net profit attributable to shareholders was 573 million, up 27.42% year-on-year - The net profit excluding non-recurring items was 553 million, reflecting a 32.26% increase year-on-year - In Q2 2025, revenue reached 1.784 billion, growing 11.01% year-on-year and 7.12% quarter-on-quarter - The net profit for Q2 was 316 million, a year-on-year increase of 44.95% and a quarter-on-quarter increase of 22.77% - The net profit excluding non-recurring items for Q2 was 317 million, up 61.1% year-on-year and 34.2% quarter-on-quarter [1]. Profitability Metrics - The net profit margin for H1 2025 was 16.6%, an increase of 2.8 percentage points year-on-year - The gross profit margin was 29.25%, up 0.57 percentage points year-on-year - In Q2 2025, the net profit margin was 17.70%, increasing by 4.14 percentage points year-on-year and 2.26 percentage points quarter-on-quarter - The gross profit margin for Q2 was 29.74%, with year-on-year and quarter-on-quarter increases of 2.1 percentage points and 1.0 percentage points, respectively [1]. Expense Ratios - The expense ratio for Q2 2025 was 7.69%, a decrease of 5.30 percentage points year-on-year and 3.70 percentage points quarter-on-quarter - The breakdown of expense ratios included sales at 0.65%, management at 6.46%, financial at -4.19%, and R&D at 4.77%, with year-on-year changes of -0.41, +0.83, -4.80, and -0.91 percentage points, respectively - Financial expenses decreased by 69.02 million quarter-on-quarter, primarily due to increased exchange gains [2]. Strategic Developments - The acquisition of 卓尔博 is progressing, with the Shanghai Stock Exchange's merger and acquisition committee reviewing the matter on August 25 - 卓尔博 has committed to achieving net profits of no less than 141.5 million, 156.9 million, and 174.1 million for 2025-2027, totaling a minimum of 472.5 million over three years - The subsidiary 富乐精密 plans to apply for listing on the New Third Board, which will enhance the company's asset liquidity [2]. Expansion Initiatives - The company has established overseas production capacity, with the second phase of the factory in Mexico commencing operations in H1 2025 and a new aluminum casting plant in Malaysia under construction - The company is focusing on magnesium alloy technology development to tap into the automotive lightweighting and humanoid robot sectors - The wholly-owned subsidiary 瞬动机器人 is responsible for the R&D, manufacturing, and sales of components and wearable terminal products in the robotics field, which will drive long-term growth [3]. Profit Forecast and Investment Rating - The company maintains profit forecasts of 1.19 billion, 1.49 billion, and 1.78 billion for 2025-2027 - The current market capitalization corresponds to price-to-earnings ratios of 16 times, 13 times, and 11 times for the respective years - The company maintains a "buy" rating [3].

Core Viewpoint - Ningbo Xingyuan Zhuomei Technology Co., Ltd. is responding to the inquiry letter regarding its application for issuing convertible bonds, providing detailed explanations on various financial metrics and operational strategies. Financial Performance - The company's main business revenue for the reporting periods was 214.68 million, 265.98 million, 171.15 million, 53.23 million, and 55.12 million, with net profits of 53.65 million and a growth rate of 30.98% [1]. - The company's inventory values at the end of each reporting period were 49.93 million, 62.45 million, and 71.77 million, with an asset-liability ratio of 7.88% as of September 30, 2024 [1]. Cash Flow Analysis - The net cash flow from operating activities was consistently lower than net profit, with discrepancies attributed to inventory changes and non-cash expenses [2][3]. - The company experienced a significant increase in accounts receivable, impacting cash flow negatively, particularly in 2022 [2]. Gross Margin Fluctuations - The fluctuation in gross margin was influenced by the prices of magnesium and aluminum alloy raw materials, with sensitivity analysis indicating that a 10% change in raw material prices could affect gross margins by approximately 2.04% to 2.85% [4][5]. - The gross margin for magnesium alloy die-casting products was significantly affected by raw material price increases, leading to a decrease in profitability in 2022 [3][4]. Pricing Mechanisms - The company employs a pricing strategy based on cost-plus and market quotations, with adjustments made for raw material price fluctuations and other factors [6][7]. - There are annual price reduction clauses in place for certain products, with reductions ranging from 10.19% to 35.87% over the years [8][9]. Competitive Position - Compared to industry peers, the company's gross margin for die-casting products remains higher, attributed to its focus on magnesium alloy products and a smaller competitive landscape [4][5]. - The company has maintained a competitive edge in the magnesium alloy sector due to its long-standing expertise and strategic partnerships with suppliers [6][7]. Risk Management Strategies - The company has implemented measures to mitigate the impact of raw material price volatility, including optimizing inventory management and establishing strategic supplier relationships [5][6]. - Specific pricing adjustment mechanisms are in place to address significant fluctuations in raw material costs, ensuring that the company can maintain profitability [10].