Summary of Desay SV's Conference Call Company Overview - **Company**: Desay SV - **Industry**: Automotive Electronics Key Financial Performance - **Revenue**: Achieved over 14.6 billion CNY in H1 2025, a year-on-year increase of 25% [3] - **Net Profit**: 1.22 billion CNY, up 46% year-on-year, with a net profit margin of 8.35% [2][3] - **Gross Margin**: Maintained above 20% [2][3] - **Order Scale**: Annualized order scale exceeded 18 billion CNY in H1 2025, with cockpit orders surpassing 10 billion CNY [7] Product and Market Performance - **Product Growth**: Intelligent cockpit and advanced driver assistance domain control products grew over 50% [2][3] - **Market Share**: Cockpit domain control accounted for 21% of total revenue, while advanced driver assistance domain control accounted for 24% [2][3] - **Client Structure**: Continuous optimization with significant growth from domestic brands (Geely, Chery, Great Wall) and joint ventures (Volkswagen, Toyota) [5] Strategic Goals and Future Outlook - **Growth Target**: Aim to maintain over 20% growth in the next strategic cycle and enter the top 30 global automotive parts suppliers [6][8] - **Global Expansion**: Focus on expanding into Europe, Japan, and Southeast Asia through localized operations and diversified outbound strategies [8][16] - **Innovation in New Fields**: Exploring new business areas such as unmanned delivery and robotics [8] Regulatory and Technological Developments - **Compliance with New Regulations**: Enhanced safety and reliability of driver assistance systems in response to new regulations [4][9] - **Collaboration with Qualcomm**: Development of integrated driving and cockpit solutions expected to launch in Q1 2026, with a cost advantage of 20% over market solutions [4][19] Challenges and Responses - **Production Capacity Utilization**: Noted decline in utilization rates for intelligent cockpit and driving systems, attributed to market demand changes and production adjustments [28][29] - **Supply Chain and Chip Development**: Addressing challenges posed by self-developed automotive chips and the need for high-performance chips to keep pace with rapid technological advancements [25][26] Investment and Future Projects - **New Capacity Investments**: Plans for new production facilities in Huizhou and Chengdu, with total investments nearing 2 billion CNY [28] - **AI Computing Center**: Investment in AI computing capabilities to enhance competitive edge and support internal operations [36][37] Conclusion Desay SV is positioned for significant growth in the automotive electronics sector, with a strong focus on innovation, global expansion, and compliance with evolving regulations. The company aims to leverage its technological advancements and strategic partnerships to enhance its market position and drive future profitability.