Group 1: Investment Project Overview - The project "Intelligent Connected New Energy Vehicle All-Season Ice and Snow Testing Base" aims to enhance extreme environment testing capabilities and create new business growth points, with a total investment of CNY 1.039 billion and a construction period of approximately 3 years [2][3] - The testing base will feature various functional areas, including chassis calibration, three-electric system calibration, and flying car testing, enabling year-round testing to address the challenges posed by extreme ice and snow conditions [2] Group 2: Market Demand and Competitive Landscape - The project addresses the automotive industry's transition to electrification and intelligence, which presents new challenges for testing in cold environments, highlighting a clear and urgent market demand [3] - The main competitors in the winter vehicle testing sector are located in Northeast China, particularly in Inner Mongolia and Heilongjiang, with notable centers including Honghe Valley Automotive Testing Center and Bosch (Hulunbuir) Automotive Testing Technology Center [5] Group 3: Financial Performance and Projections - The Extreme Testing Center reported a net profit of over CNY 15 million from January to April 2025, compared to over CNY 7 million for the entire year of 2024, indicating a significant potential for profit growth [4] - The second phase of the Yangtze River Delta (Yancheng) Intelligent Connected Vehicle Testing Center is currently profitable and is expected to see increased capacity utilization as industry demand grows and relevant standards are established [6][7]

Group 1 - The company reported that its second-phase intelligent connected vehicle testing facility in the Yangtze River Delta (Yancheng) generated approximately 26 million yuan in revenue during the first half of the year, achieving a near break-even point [2]

Group 1: Company Performance and Financials - The company plans to distribute a cash dividend of RMB 0.52 per share for the fiscal year 2024, totaling RMB 68.76 million, which represents 61.10% of the net profit attributable to shareholders [3] - The company has gradually increased its cash dividend payout over the past three years, with distributions of RMB 30.42 million, RMB 71.41 million, and RMB 100.50 million from 2021 to 2023 [5] - The net profit change is minimal due to increased fixed costs from the newly operational Yangtze River Delta (Yancheng) intelligent connected vehicle testing facility [4] Group 2: Capital Expenditure and Investment Plans - Current capital expenditures are primarily for settling the remaining costs of the Yangtze River Delta intelligent connected vehicle testing facility [3] - Future capital expenditures will be arranged based on market demand and strategic planning [3] Group 3: Market Position and Strategic Initiatives - The company has signed contracts with multiple clients for the intelligent connected vehicle testing facility, laying the groundwork for capacity release [4] - The company is developing capabilities for low-altitude economy, including a testing platform for flying vehicles and a low-altitude flight monitoring platform [4] Group 4: Shareholder Relations and Market Management - The company emphasizes high-quality information disclosure and has received an A-level evaluation from the Shenzhen Stock Exchange for two consecutive years [5] - The company is considering stock buybacks in response to market conditions, with plans to evaluate this based on future strategic developments [6]

Core Viewpoint - The establishment of the intelligent connected vehicle testing ground by China Automotive Technology & Research Center (CATARC) represents a significant advancement in the automotive industry's shift towards intelligence and connectivity, filling a critical gap in systematic verification platforms for smart vehicles in China [1][2]. Group 1: Testing Ground Overview - The testing ground, built with an investment of 1.5 billion yuan, features innovative facilities such as the world's first intelligent connected tunnel and a multi-dimensional simulation platform for complex environments, creating a comprehensive verification system covering "vehicle-road-cloud-network-map" [1][2]. - The facility includes 8 dedicated testing roads for intelligent connected vehicles, a 32,000 square meter laboratory, and a comprehensive energy center capable of supporting various testing scenarios for smart vehicles, heavy-duty commercial vehicles, flying cars, and low-altitude aircraft [2]. Group 2: Technological Innovations - The intelligent connected complex environment multi-dimensional simulation platform utilizes rain and fog array technology and controllable light source point array technology to simulate various weather conditions for testing smart vehicle driving capabilities [3]. - The testing ground has integrated a low-altitude economic framework, featuring a super-wide testing runway that meets the takeoff and landing standards for general flying vehicles, thus supporting the testing of flying cars and low-altitude aircraft [3]. Group 3: Regional Development Impact - The testing ground aims to provide professional testing services to local smart connected vehicle companies, support the development of hydrogen fuel cell vehicles, and enhance the automotive industry's reputation in Yancheng [4]. - The facility will collaborate with universities and enterprises in the Yangtze River Delta region to establish an innovation hub for intelligent connected vehicles and participate in the formulation of relevant industry standards [4]. Group 4: Future Development Plans - CATARC plans to further develop the digital testing ground, creating virtual scenarios for testing and promoting open testing on public roads, while engaging in research and validation across various fields including communication devices and cloud control platforms [5]. - The company is actively involved in promoting the "vehicle-road-cloud integration" technology, contributing to the development of national standards for intelligent connected vehicles, which will enhance traffic management and intelligent driving assistance [5].

Group 1: Business Operations and Revenue - The Long Triangle (Yancheng) Intelligent Connected Vehicle Test Field is a company fundraising project, with expected output value contingent on macroeconomic conditions and market demand [3] - The first major client for 2024 is the China Automotive Center, with an overall business volume exceeding 70 million [3] - The company’s revenue growth in Q1 2025 is attributed to increased industry demand and successful client acquisition, particularly in the intelligent connected vehicle sector [6] Group 2: Industry Standards and Regulations - In February 2024, the Ministry of Industry and Information Technology and the State Administration for Market Regulation issued a notice to strengthen the management of intelligent connected vehicle product access and recalls, raising compliance requirements for the industry [4] - The company has participated in drafting multiple national standards, with 7 national standards and 12 group standards published to date [7] Group 3: Testing and Service Capabilities - The company operates over 100 kilometers of test roads and offers more than 100 types of characteristic road surfaces, meeting diverse testing needs for various vehicle types [6] - Although service prices may be slightly above the industry average, the company’s higher testing efficiency helps clients reduce overall R&D costs [6] Group 4: Future Prospects and Challenges - The transition to mandatory testing for intelligent connected vehicles is expected to boost the company’s business, increasing testing volume and client R&D investments [4] - Current L3 autonomous driving technology in China is still in the testing and demonstration phase, with commercial trials limited to specific areas and scenarios [4]