Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, with expectations for a weak recovery in the North American market in the second half of the year [1][4]. Financial Performance - In 1H25, revenue decreased by 8.9% year-on-year to 9.75 billion yuan, and net profit attributable to shareholders fell by 28.5% to 400 million yuan, with non-recurring net profit down 30.2% to 380 million yuan [1]. - For 2Q25, revenue was 5.16 billion yuan, reflecting a 6.9% decline year-on-year but a 12.4% increase quarter-on-quarter. Net profit was 220 million yuan, down 24.8% year-on-year but up 25.4% quarter-on-quarter [1]. Business Segment Analysis - Domestic business revenue slightly decreased by 0.3% to 4.39 billion yuan, with a gross margin increase of 3.1 percentage points to 12.9% due to improved operational efficiency [2]. - North American business revenue fell by 30.5% to 2.56 billion yuan, with a gross margin decline of 5.1 percentage points to 13.1%, impacted by weak industry demand and tariff uncertainties [2]. - European business revenue increased by 0.5% to 1.31 billion yuan, but gross margin decreased by 2.6 percentage points to 14.9% due to capacity ramp-up challenges [2]. - Other regions saw a revenue increase of 14.0% to 1.50 billion yuan, with a gross margin rise of 4.7 percentage points to 24.6%, driven by strategic expansion in emerging markets [2]. Strategic Initiatives - The company is focusing on the development of new energy vehicles, delivering over 4,700 units of EV·DTB products in 1H25, and is leading in market share for electric heavy-duty trucks [3]. - Plans are in place to develop the EV-RT2.0 electric head truck, targeting short-distance, heavy-load scenarios for product development and validation [3]. Market Outlook - A weak recovery in the North American market is anticipated in 2H25, supported by potential easing of tariff policies and seasonal demand increases [3]. - Domestic policies promoting vehicle upgrades are expected to boost sales in the heavy truck and semi-trailer sectors, alongside strong investment demand in emerging markets like Africa and Southeast Asia [3]. Profit Forecast and Valuation - Due to ongoing low demand in the North American semi-trailer market, profit forecasts for 2025 and 2026 have been revised down by 21.7% and 16.4% to 1.11 billion yuan and 1.42 billion yuan, respectively [4]. - The current stock price corresponds to P/E ratios of 15.2 and 11.9 for 2025 and 2026, with a target price of 11.33 yuan, indicating a potential upside of 26.2% [4].

1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints of the Report - In 2024, the company's European and Australian semi - trailer businesses achieved good results against the trend. The European business optimized the product structure and promoted supply chain localization to increase the gross profit margin by 2.4 percentage points, while the Australian business achieved the best historical profit performance and maintained a stable market position [23]. - In 2025, the company aims to build new productive forces through the "Star - Chain Plan", "Good - Development Plan", and "Rise - Up Plan", and enhance its leading position in the global semi - trailer business [24]. - The company will deepen global supply chain management, optimize cost control, and improve production efficiency in its European business in 2025, and support SDC and LAG to explore new productive forces in the European semi - trailer field [24]. 3. Summary by Relevant Catalogs 3.1 Research Basic Situation - The research object is CIMC Vehicles, belonging to the automobile manufacturing industry. The reception time was from March 31 to April 3, 2025. The listed company's reception staff included the Investor Relations Director, Manager, and other personnel [17]. 3.2 Detailed Research Institutions - The research institutions included fund management companies (E Fund Management Co., Ltd., Guolian Fund Management Co., Ltd.), securities companies (Haitong Securities Co., Ltd., Huatai Securities Co., Ltd.), and investment companies (Juming Investment Co., Ltd.) [18]. 3.3 Research Institution Proportions - Fund management companies accounted for 40%, securities companies accounted for 40%, and investment companies accounted for 20% [20]. 3.4 Main Content Data - **2024 European and Australian Market Performance and Outlook**: In 2024, the EU's new truck registrations decreased by 6.3%. The company's European and Australian semi - trailer businesses achieved good results against the trend. The European business increased the gross profit margin by 2.4 percentage points, and the Australian business achieved the best historical profit performance and ranked among the top six in the market share for two consecutive years [23]. - **2025 Core Measures and Goals for Performance Improvement**: The company will implement the "Star - Chain Plan", "Good - Development Plan", and "Rise - Up Plan" to build new productive forces, deepen its leading position in the global semi - trailer business, and improve profitability. It will also expand cooperation with new - energy vehicle manufacturers in the EV·DTB upper - body products, iterate the design and manufacturing of pure - electric tractor - trailer trains, and build productive services [24][25]. - **2024 Domestic Centralized Procurement Level and Future Planning**: In 2024, the company's centralized procurement ratio increased from less than 50% to over 85%, and the organizational structure was adjusted to a three - layer structure of "collection", "procurement", and "purchase". The cost - saving from centralized procurement was over 80 million yuan. In 2025, the company will further strengthen the supply - chain system with "centralized procurement as the mainstay and supply guarantee as the supplement" [26]. - **Evolution from "Cross - Ocean Operation" to "Borderless Enterprise"**: The company has evolved from the "production→export" model to "cross - ocean operation, local manufacturing", and has established local legal - person governance structures and manufacturing plants in mature markets. In the future, it will expand sales in the global southern market and enhance the resilience of the global supply chain for its North American semi - trailer business [26][27].