Core Viewpoint - The January 2026 performance of the new energy vehicle market was relatively flat, but new forces in the industry showed better year-on-year performance compared to the overall market [3]. Group 1: January Delivery Data - Leap Motor delivered 32,059 vehicles in January, a year-on-year increase of 27.4% but a month-on-month decrease of 31.9% [2]. - Li Auto delivered 27,668 vehicles, down 7.5% year-on-year and down 37.5% month-on-month [7]. - NIO delivered 27,182 vehicles, marking a significant year-on-year increase of 96.1% but a month-on-month decrease of 14.2% [6]. - Zeekr delivered 23,852 vehicles, with a year-on-year increase of 99.7% and a month-on-month decrease of 9.3% [8]. - Xpeng delivered 20,011 vehicles, down 34.1% year-on-year and down 38.0% month-on-month [5]. - Xiaomi delivered over 39,000 vehicles in January [8]. Group 2: Market Performance Analysis - The total retail market for narrow passenger cars in January was approximately 1.8 million units, a month-on-month decrease of 20.4% but a slight year-on-year increase [3]. - The new energy vehicle retail market is expected to reach 800,000 units, with a penetration rate of 44.4% [3]. - The five sample new force car companies (excluding Xiaomi and Aion) delivered a total of 130,772 vehicles, a year-on-year increase of 17.5% but a month-on-month decrease of 28.0% [3]. Group 3: Company-Specific Insights - Leap Motor's growth is attributed to strong product offerings like the C10 and B01, with plans to launch new models in 2026 [4]. - Xpeng's delivery decline is noted, but the company plans to launch multiple new models in 2026 [5]. - NIO's delivery increase is supported by strong sales of the ES8 and new software updates enhancing user experience [6]. - Li Auto's stable sales are backed by the L series, with ongoing expansion in the charging infrastructure [7]. - Zeekr's growth is driven by the success of the 7X model and plans for new model launches [8]. Group 4: Industry Trends - The smart driving technology is accelerating, with companies like Xpeng and Huawei leading the charge in promoting intelligent driving features [9]. - The industry is expected to see a shift towards more affordable smart driving solutions, enhancing competitiveness against joint venture brands [9]. - The rise of intelligent capabilities is becoming a critical factor in competition among automakers, with a focus on autonomous driving and user acceptance [10].

Investment Rating - The report maintains a positive investment rating for the new energy vehicle sector, indicating a favorable outlook for the industry [7]. Core Insights - The performance of the new energy vehicle market in January 2026 was relatively flat, with a total retail market size of approximately 1.8 million vehicles, a month-on-month decrease of 20.4%, but a slight year-on-year increase. The penetration rate for new energy vehicles reached 44.4% [4]. - Five key new energy vehicle companies (excluding Xiaomi and Aion) delivered a total of 130,772 vehicles in January, representing a year-on-year increase of 17.5% but a month-on-month decrease of 28.0%, outperforming the industry average [4]. - The report anticipates a stabilization and recovery in automotive demand post-Chinese New Year, driven by the rollout of local government subsidies and the introduction of new models [4]. Summary by Relevant Sections Delivery Performance - Leap Motor delivered 32,059 vehicles in January, a year-on-year increase of 27.4% but a month-on-month decrease of 31.9%. The strong performance is attributed to the competitive pricing of models C10 and B01 [5]. - Ideal Auto reported 27,668 vehicles delivered, a year-on-year decrease of 7.5% and a month-on-month decrease of 37.5%. The company is focusing on enhancing user experience through software updates and expanding its service network [9]. - NIO delivered 27,182 vehicles, marking a significant year-on-year increase of 96.1% but a month-on-month decrease of 14.2%. The ES8 model was the top performer [6]. - Zeekr delivered 23,852 vehicles, with a year-on-year increase of 99.7% and a month-on-month decrease of 9.3% [10]. - Xpeng delivered 20,011 vehicles, reflecting a year-on-year decrease of 34.1% and a month-on-month decrease of 38.0% [6]. Market Trends - The report highlights the ongoing trend of intelligent driving technology adoption, with companies like Xpeng and Huawei leading the charge. The expectation is that advancements in intelligent driving will lower hardware costs and expand market access [12]. - The report suggests that the intelligent driving capabilities will become a key competitive factor for automakers, with a focus on companies that are leading in this area [12]. Investment Recommendations - The report recommends focusing on companies with strong intelligent driving capabilities and those that are well-positioned in the new energy vehicle supply chain. Specific companies highlighted include Geely, Xpeng, and BYD [12].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Electric Vehicles (EV) and New Energy Vehicles (NEV) - **Market Growth**: The overseas market is expected to be a significant growth area for China EV sales in 2026, with a projected **35% year-over-year (yoy) volume growth** [1][15]. Core Insights - **Price Competition Framework**: A framework was developed to assess potential price cuts in overseas markets based on three parameters: 1. Is the auto market in contraction? 2. Do Chinese OEMs have high penetration? 3. Is there excess production capacity? - Thailand is currently the only market exhibiting all three parameters, making it an exception rather than the norm for price competition [1][16][24]. - **Profitability in Overseas Markets**: Chinese OEMs, particularly BYD, are achieving significantly higher Average Selling Prices (ASP), gross margins, and unit profits in overseas markets compared to domestic sales. For instance, BYD's ASP is **50%-120% higher**, with gross margins **5-10% higher**, and unit profits **43%-420% higher** for the same models sold outside China [3][49]. - **NEV Market Penetration**: As China's NEV penetration reaches **60%** with a slowdown to **11% yoy growth** by 2026, overseas markets are entering a mass-adoption phase. The overseas NEV sales are expected to reach **7.4 million units** in 2026, with Chinese brands fulfilling **55%** of this volume [4][62][65]. Market Dynamics - **Thailand as a Case Study**: Thailand is highlighted as a key market for Chinese OEMs due to favorable local policies and cultural proximity. The market is projected to see **141,000 NEV sales** in 2025, with a **26% market share** for Chinese brands [17][18]. - **Price Cuts and Market Concerns**: Two rounds of price cuts in Thailand have raised concerns about a potential price war similar to that in China. The price cuts were driven by market contraction, high penetration of Chinese OEMs, and excess production capacity [31][39]. - **Future Risks**: If other overseas markets begin to exhibit similar conditions as Thailand, there could be a **16%-19% downside** to cash margins at 0% [2][12][44]. Investment Recommendations - **Recommended Stocks**: BYD and XPeng are identified as well-positioned for overseas growth due to their higher exposure to international markets and expanding sales networks [4][62]. Additional Insights - **Cyclical Nature of the Auto Industry**: The cyclical nature of the auto industry and potential changes in local production requirements could impact future pricing strategies and market dynamics [2][44][46]. - **Local Production Capacity**: Chinese OEMs are building localized production capacity to meet overseas demand, with expectations of **0.9 million** and **1.7 million** NEV production capacity overseas by the end of 2025 and 2026, respectively [4][62]. - **Competitive Landscape**: Chinese brands are gaining market share in various overseas markets, with significant growth in developed markets such as the UK, Spain, and Australia, where they achieved double-digit market share gains [75][76]. This summary encapsulates the key points discussed in the conference call, focusing on the dynamics of the Chinese EV market, particularly in relation to overseas expansion and competitive strategies.

Core Viewpoint - Xiaopeng Motors is gearing up for a significant product year in 2026, launching multiple new models and enhancing its technology to compete in both domestic and global markets [2][7][38]. Group 1: Product Launch and Technology - Xiaopeng Motors introduced four new models on January 8, 2026, focusing on range extension and advanced technology [2][3]. - The new models feature self-developed Turing chips, moving away from Nvidia's Orin X chips, and include enhancements like the second-generation VLA and VLM for improved driving assistance and smart cockpit capabilities [3][4][21]. - The company emphasizes that its range-extended vehicles are fundamentally electric, maintaining low energy consumption and offering a pure electric range of 430 km [11][12]. Group 2: Market Position and Growth - In 2025, the sales of range-extended vehicles in China reached 1.235 million units, a 6% increase year-on-year, while pure electric vehicle sales grew by 24.4% [9]. - Xiaopeng Motors ranked among the top ten global new energy brands in sales, with the potential to break into the top five with the addition of range-extended models [9][10]. - The company aims to achieve a sales target of 550,000 to 600,000 vehicles in 2026, representing a 30% increase from 2025 [52][53]. Group 3: Global Market Strategy - Xiaopeng Motors is actively targeting international markets, with a goal of achieving a 1:1 sales ratio between overseas and domestic markets [41][50]. - The company has expanded its presence to 60 countries and regions, indicating a strong commitment to global growth [51]. - The focus on global media engagement during product launches reflects Xiaopeng's strategy to enhance its visibility and reputation in international markets [46][50]. Group 4: Competitive Landscape - The automotive market in 2026 is expected to be increasingly competitive, with strong rivals like Tesla, Xiaomi, BYD, and Leap Motor [58][59]. - Xiaopeng Motors is positioning itself to leverage its technological advancements and product offerings to navigate this competitive environment [60].

Investment Rating - The report maintains an "Overweight" rating for the automotive industry, indicating a positive outlook compared to the overall market performance [10]. Core Insights - The 2026 new energy vehicle (NEV) purchase tax subsidy policy has shifted from a flat-rate model to a tiered proportional subsidy, resulting in a slight decrease in per-vehicle subsidy amounts. Companies with a higher proportion of low-end models, such as Geely and BYD, will experience a more significant subsidy reduction, while high-end brands will be less affected [2][3]. - The adjustment in subsidy policy is expected to reshape the sales structure of NEVs in 2026, with a decline in demand for low-end models and a relative advantage for mid-to-high-end models [2]. Summary by Relevant Sections Subsidy Policy Analysis - The new subsidy policy will lead to a 19% reduction for Geely and a 14% reduction for BYD, while companies like Xiaopeng, Great Wall, and Leap Motor will see a smaller impact of around 10% due to their higher proportion of mid-to-high-end models [2]. - The demand for A0 and A00 level low-end models, which previously relied heavily on subsidies, is expected to decrease significantly [2]. Sales Analysis of Key Companies - Xiaopeng Motors delivered nearly 430,000 vehicles in 2025, a 126% year-on-year increase. However, the average selling price (ASP) dropped from approximately 190,000 yuan in 2024 to 160,000 yuan in the first half of 2025 due to changes in product mix [3]. - Leap Motor achieved a delivery volume of 597,000 vehicles in 2025, doubling from 290,000 in 2024. The company plans to launch two high-end models in 2026 and aims for a sales target of 1 million vehicles [4]. - Great Wall Motors sold 1.32 million vehicles in 2025, with a 7% year-on-year growth. The company has set a sales target of 1.8 million vehicles for 2026, reflecting a 40% increase [5]. Investment Recommendations - The report suggests focusing on new energy vehicle companies with advantages in AI and robotics, such as Xiaopeng, NIO, and Li Auto, as well as component manufacturers like Yinchuan, Fuda, and Shuanghuan, which are expected to benefit from the new subsidy policies [6].

Investment Rating - The industry investment rating is "Overweight" indicating that the industry is expected to outperform the overall market [12]. Core Insights - The 2026 new energy vehicle purchase tax subsidy policy has shifted from a "one-size-fits-all" model to a tiered proportional subsidy, resulting in a slight decrease in per-vehicle subsidy amounts. Companies with a higher proportion of low-end models, such as Geely and BYD, will experience a more significant subsidy reduction, while high-end brands are largely unaffected [2][3]. - The adjustment in subsidy policy is expected to significantly reshape the sales structure of new energy vehicles in 2026, with demand for low-end models likely to decline, benefiting mid-to-high-end models and companies with higher average selling prices (ASP) [3]. Summary by Sections Subsidy Policy Analysis - The 2026 subsidy policy will lead to a reduction in subsidies for companies with a higher share of low-end models, with Geely facing a 19% reduction and BYD a 14% reduction. In contrast, companies like Xiaopeng, Great Wall, and Leap Motor will see a reduction of around 10% due to their higher proportion of mid-to-high-end models [3][4]. Sales Analysis of Key Companies - **Xiaopeng Motors**: Projected delivery volume for 2025 is approximately 430,000 units, a 126% increase year-on-year. December deliveries were 37,500 units, showing a decline due to subsidy reductions. The ASP is expected to drop from nearly 190,000 yuan in 2024 to 160,000 yuan in the first half of 2025. Xiaopeng plans to launch seven dual-power models in 2026, which are expected to benefit from the policy changes [4][5]. - **Leap Motor**: Expected to deliver 597,000 units in 2025, doubling from 290,000 units in 2024. The growth is driven by new models and overseas market expansion. Despite the introduction of lower-priced models, Leap Motor has maintained its gross margin due to effective cost control. The 2026 sales target is set at 1 million units [5][6]. - **Great Wall Motors**: Anticipated sales for 2025 are 1.32 million units, a 7% increase. The company has optimized its internal structure, with new models compensating for declines in older models. The sales target for 2026 is set at 1.8 million units, reflecting a 40% year-on-year growth expectation [6]. Investment Recommendations - The report suggests focusing on new energy vehicle companies that have advantages in AI and robotics, such as Xiaopeng, NIO, and Li Auto, as well as key Tier 1 suppliers. It also recommends second-hand car companies and component manufacturers with low valuations and growth potential, such as Yinchuan, Fuda, and others [2][6].

Investment Rating - The report assigns a "Buy" rating for the company [7] Core Insights - The company achieved total revenue of 20.38 billion yuan in Q3 2025, a year-on-year increase of 101.8%, with net loss significantly narrowing to 0.38 billion yuan. Total deliveries reached 116,007 units, up 149.3%, marking a historical high. The comprehensive gross margin exceeded 20% for the first time, reaching 20.1%, indicating a notable improvement in profitability [1][4] - The company has launched a "dual power" strategy combining pure electric and range-extended vehicles to address user range anxiety. The first range-extended model, X9 EREV, was launched in November 2025, featuring a 63.3 kWh battery and a conversion efficiency exceeding 3.6 kWh/L, achieving a pure electric range of 452 km. Additional range-extended versions of key models are expected in Q1 2026, alongside four new models in 2026, including two SUVs based on the MONA platform [2] - The company is transitioning from "smart cars" to a "physical AI" company, showcasing its commitment and specific path at the 2025 Technology Day. The core technology, VLA 2.0, enhances reasoning efficiency by 12 times and improves average takeover mileage in complex scenarios by 13 times. The model is set to be fully deployed in Ultra models by Q1 2026 and is expected to extend to robotics and other embodied intelligence fields [3] - The company forecasts revenues of 75.8 billion yuan, 132.1 billion yuan, and 166.3 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 85.4%, 74.3%, and 25.9%. The net profit attributable to the parent company is projected to be -1.55 billion yuan, 2.00 billion yuan, and 6.13 billion yuan for the same years [4][5]

Core Viewpoint - A class action lawsuit has been filed against DexCom, Inc. for allegedly making false and misleading statements regarding its products, particularly the G6 and G7 glucose monitoring devices, during the class period from July 26, 2024, to September 17, 2025 [2][3]. Group 1: Lawsuit Details - The lawsuit is filed in the United States District Court for the Southern District of New York on behalf of all individuals and entities who purchased DexCom securities during the specified class period [2]. - Investors have until December 26, 2025, to apply to be appointed as lead plaintiff in the lawsuit [2]. Group 2: Allegations - The complaint alleges that DexCom made unauthorized design changes to the G6 and G7 devices that were not approved by the FDA, which compromised their reliability and posed health risks to users [3]. - It is claimed that the enhancements to the G7 were overstated, and the company downplayed the severity of issues related to the devices, leading to increased regulatory scrutiny and potential legal repercussions [3]. Group 3: Next Steps for Investors - Investors who suffered losses or have information regarding the claims are encouraged to contact the law firm for further details and assistance [4].

Core Viewpoint - The Gross Law Firm is notifying shareholders of DexCom, Inc. about a class action lawsuit due to allegations of misleading statements and undisclosed material changes to their glucose monitoring products, which may have health implications for users [1][3]. Group 1: Allegations Against DexCom - The complaint alleges that DexCom made unauthorized design changes to its glucose monitoring products, the G6 and G7, which were not approved by the U.S. Food and Drug Administration [3]. - These design changes reportedly rendered the G6 and G7 devices less reliable, posing a material health risk to users who depend on them for accurate glucose readings [3]. - The enhancements claimed for the G7, including its reliability and accuracy, were allegedly overstated, and the company downplayed the severity of the issues related to the G7 devices [3]. Group 2: Legal and Financial Implications - The allegations suggest that DexCom is facing increased regulatory scrutiny and potential enforcement actions, which could lead to significant legal, reputational, and financial harm [3]. - The public statements made by DexCom were claimed to be materially false and misleading throughout the relevant period, which could impact investor confidence and stock performance [3]. Group 3: Class Action Participation - Shareholders who purchased shares of DXCM between January 8, 2024, and September 17, 2025, are encouraged to register for the class action, with a deadline for lead plaintiff applications set for December 26, 2025 [4]. - Participants will be enrolled in a portfolio monitoring system to receive updates on the case's progress, with no cost or obligation to join [4].

Summary of Hengtong Optic-Electric Conference Call Industry Overview - **Global Fiber Optic Demand**: There is a significant tension in global fiber optic demand, driven by accelerated domestic construction and international backbone, metropolitan, and access network developments. The adoption of AR technology is expected to sustain demand growth in the coming years [2][3][7]. - **International Market Growth**: The international market has shown substantial price increases, particularly in backbone and metropolitan networks, with many countries actively advancing infrastructure development [4][5]. Company Insights - **Hengtong's Position**: Hengtong Optic-Electric maintains stable production capacity for conventional fiber optics while heavily investing in special fibers, such as G6,541 ultra-low loss fiber and multi-core hollow laser fibers. The new fiber center is expected to release capacity in the first half of next year [2][10][12]. - **Production Capacity Utilization**: The company has been operating at full capacity since the beginning of 2025, with no significant changes in conventional fiber capacity [14][10]. - **Special Fiber Development**: Hengtong is a leader in the multi-core fiber sector, with prices approximately ten times that of G652D fiber. The company has received certifications from major telecom operators [12][13]. Financial Performance - **Revenue Composition**: Fiber optics and cables account for over 80% of Hengtong's total revenue, with overseas customers contributing 30%-50% and domestic operators about 40% [22][24][25]. - **Price Trends**: Domestic fiber prices have increased by approximately 10%, while international prices, particularly in the U.S., are significantly higher, with G652D priced at $5.5 to $6 per meter [9][20]. Future price increases are anticipated due to changing supply-demand dynamics [9]. Market Dynamics - **Domestic Operator Bidding**: The bidding volume from domestic operators remains stable, but the new "Eight Vertical and Eight Horizontal" project is expected to drive demand for special fibers [6][10]. - **Supply-Side Changes**: Major suppliers, including Corning and Prysmian, are expanding their special fiber offerings, impacting traditional 652D fiber production capacity [8][10]. Future Outlook - **Demand Projections**: The demand for fiber optics is expected to continue growing in the coming years, driven by advancements in AR technology and data center construction [7][18]. - **Expansion Plans**: Hengtong plans to expand production capacity within 6-12 months, depending on the type of fiber and existing infrastructure [11][18]. The company is also focusing on green production practices to meet future demand [27]. Strategic Initiatives - **International Market Strategy**: Hengtong is leveraging its brands to navigate tariff barriers in the U.S. market, with expectations of sales growth by 2027 [5][16]. The company has established multiple production bases globally to support its international operations [23][32]. - **Adaptation to Market Changes**: Hengtong is adjusting its procurement strategies based on regional market conditions, ensuring minimal impact on sales despite challenges in raw material sourcing [19][31]. Conclusion - **Industry Outlook**: The fiber optic communication industry is poised for optimistic growth, particularly with the increasing influence of AI and drone applications. Hengtong Optic-Electric is well-positioned to capitalize on these trends, presenting significant investment opportunities [33].