Summary of the Conference Call on New Motion Technology Company Overview - New Motion Technology is one of the few domestic companies capable of stable mass production of high-performance MEMS gyroscopes, having established a closed-loop technology system encompassing chip design, process solutions, packaging, and testing [2][3][7] - The company has a strong foundation and a management team with deep scientific research backgrounds, contributing to its competitive edge in the MEMS sensor market [2][7] Industry Insights - The global high-performance inertial sensor market was approximately $3.7 billion in 2023 and is expected to reach $7 billion by 2028, with the domestic market projected to exceed 7 billion RMB [2][6] - The MEMS sensor market is experiencing significant growth, particularly in applications for industrial communication, high-reliability automotive electronics, and medical fields [2][8] Key Developments - New Motion Technology has achieved a breakthrough in R&D, with its FM accelerometer now capable of mass production and beginning small-scale shipments [2][4] - The company is actively developing a 6-axis automotive-grade IMU for applications in intelligent driving and humanoid robots, expanding its application scenarios [5][4] Competitive Advantages - New Motion Technology has a strong technological barrier and a long-term growth logic, being one of the few domestic suppliers capable of stable mass production of high-performance MEMS gyroscopes [3][7] - The company maintains a high gross margin of around 85% and a net profit margin of approximately 50%, primarily due to high average selling prices and relatively low unit costs [2][7][19] Market Trends - The demand for high-performance MEMS sensors is growing, with significant applications in defense and aerospace, which account for about half of the market share [6][12] - The MEMS market is expected to grow at a compound annual growth rate (CAGR) of approximately 10% from 2021 to 2027, with high growth in defense and industrial sectors [12] Application Areas - MEMS sensors are widely used in various fields, including industrial communication, automotive electronics, and medical applications [8] - In the intelligent connected vehicle sector, the combination of IMU and GNSS is accelerating development, with MEMS sensors becoming mainstream for vehicle navigation [11] Emerging Opportunities - The low-altitude economy and humanoid robots represent significant growth points for MEMS technology, with IMUs being crucial for navigation and stability [4][14][15] - The commercial aerospace sector is a core application area for MEMS, with a market size of approximately $3 billion in 2023, expected to reach $4 billion by 2029 [17] Conclusion - New Motion Technology is well-positioned to capitalize on the growing demand for high-performance MEMS sensors, with its strong R&D capabilities, competitive advantages, and expanding application scenarios in various industries [2][3][4][19]

Company Overview - Anhui Xindong Lian Technology Co., Ltd. was established in 2012 and successfully listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on June 30, 2023, with stock code 688582. The company specializes in MEMS technology and integrates integrated circuits with traditional high-end inertial industries, promoting the development of inertial sensors and pressure sensors towards intelligence, miniaturization, ease of use, localization, and IC integration [2]. Financial Performance - For the first half of 2025, the company achieved operating revenue of 253.13 million yuan, a year-on-year increase of 84.34%. The net profit attributable to shareholders was 154.32 million yuan, up 173.37% year-on-year. The net cash flow from operating activities was 189.50 million yuan, reflecting a growth of 110.55% [3]. - The company plans to distribute a cash dividend of 1.56 yuan per 10 shares (including tax), totaling 62.51 million yuan, which accounts for 40.51% of the net profit attributable to shareholders [3]. Research and Development - The company's R&D expenses amounted to 58.11 million yuan, representing 22.95% of operating revenue, an increase of 8.17% year-on-year. The proportion of R&D expenses to revenue decreased from 39% in the same period last year to 22.95% due to higher revenue growth [4]. Product Development - The company is focusing on two main routes for its IMU products: high-precision IMU modules for low-altitude economy and aerospace, and low-cost, highly integrated chip IMUs to compete with products from Murata and Bosch [5]. - The company is also developing solutions that combine inertial navigation and visual navigation, anticipating significant future demand for inertial devices [3]. Market Outlook - The demand for FM accelerometers is strong, with many customers now matching the company's FM accelerometers with high-performance gyroscopes [8]. - The company sees a growing market for its inertial devices and IMUs in the drone sector, as the pricing of its products aligns well with the cost requirements of various drone applications [9]. Competitive Landscape - The company competes in the MEMS gyroscope field, where its products are positioned to replace traditional mechanical gyroscopes and fiber optic gyroscopes. MEMS technology offers a balance of low cost and high integration, making it suitable for mass production [7]. - The company maintains a competitive edge with an average price of around 2,000 to 3,000 yuan per chip and a gross margin exceeding 80% [7]. Future Plans - The company aims to continue its stock incentive plans approximately every two years to maintain long-term employee motivation [12]. - The outlook for the second half of 2025 is positive, with expectations of fulfilling existing contracts and securing new orders from major clients [13].

Investment Rating - The report maintains a "Recommended" investment rating for the company [1][9][13] Core Views - The company achieved significant growth in H1 2025, with revenue reaching 253 million yuan, a year-on-year increase of 84.34%, and a net profit attributable to shareholders of 154 million yuan, up 173.37% year-on-year [4][8] - The company's gross margin improved to 86.54%, an increase of 5.36 percentage points, and the net profit margin rose to 60.96%, a substantial increase of 19.85 percentage points [8] - The growth is attributed to several factors, including leading product performance, successful customer onboarding for mass production, and an increase in trial and sample requests from potential clients [8][9] Financial Performance Summary - Revenue projections for 2025-2027 are adjusted to 355 million yuan (previously 304 million yuan), 512 million yuan (previously 419 million yuan), and 731 million yuan (previously 569 million yuan) respectively [9] - The company’s earnings per share (EPS) are projected to be 0.89 yuan in 2025, 1.28 yuan in 2026, and 1.82 yuan in 2027 [11] - The price-to-earnings (P/E) ratios are expected to be 89.9X for 2025, 62.3X for 2026, and 43.7X for 2027, indicating a strong growth potential [9][11] Research and Development - The company emphasizes technology research and development, with R&D expenses amounting to 58.1 million yuan in H1 2025, representing 22.95% of revenue [8] - Ongoing projects include enhancements to existing products and the development of new types of sensors, such as pressure sensors and high-performance MEMS IMUs for automotive applications [8][9] Market Position and Future Outlook - The company’s MEMS inertial sensors are noted for their superior performance, with the main product, the gyroscope, showing rapid growth [9] - The company has a robust order backlog and significant growth potential, supported by its competitive product offerings and market demand [9]