Core Viewpoint - The company plans to invest approximately 5 billion yuan in a new energy vehicle parts industrial base and R&D center in Changzhou, Jiangsu Province, as a strategic move to enhance its position in the automotive parts industry and capitalize on the transformation of the automotive sector [1][2]. Investment Project Summary - The project will focus on the R&D and production of components such as electric motor systems, chassis parts, and thermal management components for new energy vehicles, covering an area of about 270 acres [1]. - Funding for the project will come from self-owned funds, bank loans, and other self-raised funds, with investments being phased based on the project's progress [1][2]. - The company aims to establish a subsidiary in Changzhou to manage the land acquisition and future operations related to the project [1]. Strategic Impact - This investment is seen as a key strategic initiative to strengthen the company's layout in the new energy parts industry and enhance its R&D capabilities and manufacturing levels [1][2]. - The project is expected to solidify and elevate the company's market position in the automotive parts sector, transitioning from components to systems, which will positively impact long-term business layout and operational performance [2]. Financial Performance - In the first half of 2025, the company reported a revenue of 19.97 billion yuan, a year-on-year increase of 5.42%, and a net profit attributable to shareholders of 2.52 billion yuan, up 16.36% [2]. - The automotive parts segment generated a revenue of 9.83 billion yuan, reflecting a year-on-year growth of 7.47%, becoming a significant growth driver for the company [3]. Business Development - The company’s subsidiary, Yaxinke, achieved an 18.28% increase in revenue through cost optimization and market expansion, with steady growth in market share for various vehicle parts [3]. - The company has successfully launched new businesses such as air suspension and thermal management systems, while also securing new orders for 48V BRM motors in Europe and achieving mass production of high-voltage motors for light electric vehicles in India [3].

Core Insights - Company achieved significant growth in revenue and profit, with a revenue of 19.97 billion and a net profit of 2.515 billion, reflecting a year-on-year increase of 5.42% and 16.36% respectively, indicating strong cost control and profit conversion capabilities [1] Group 1: Strategic Actions - Company rebranded to "Zhongchuang Zhiling (Zhengzhou) Industrial Technology Group Co., Ltd." to better reflect its core business and strategic direction [2] - The restructuring of the coal machinery business involved transferring related assets and operations to a wholly-owned subsidiary, enhancing focus on strategic management and resource integration [2] Group 2: Coal Machinery Segment - The coal machinery segment generated revenue of 10.149 billion, a year-on-year increase of 3.51%, maintaining stable profit growth [3] - The company is leveraging "intelligent integrated solutions" to enhance coal mining efficiency and safety, transitioning from experience-driven to data-driven management [3] - The overseas market orders for the coal machinery segment reached 0.775 billion, a remarkable increase of 137% year-on-year, indicating strong international demand [3] Group 3: Automotive Parts Segment - The automotive parts segment reported revenue of 9.833 billion, growing by 7.47%, becoming a key growth driver for the company [4] - The subsidiary Yaxinke achieved an 18.28% increase in revenue through cost optimization and market expansion, while Songe focused on profitability and growth in the European and North American markets [4] Group 4: Innovation and Digital Transformation - The company is committed to technological innovation and digital transformation, investing 300 million in Hanbo Semiconductor to enhance AI capabilities in smart mining and digital factories [5] - The company has implemented various digital projects, including the SAP project and a big data platform for coal machinery after-sales service, promoting a data-driven management approach [5] - The company maintains its status as the only "lighthouse factory" in the coal machinery industry, setting a benchmark for digitalization [5]