The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Post Hearing Information Pack, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Post Hearing Information Pack. Post Hearing Information Pack of ESTUN AUTOMATION CO., LTD 南京埃斯頓自動化股份有限公司 (the "Company") (A joint stock company ...

Summary of the Conference Call on Robotics and Physical AI Industry Overview - The discussion centers around the **industrial robotics industry**, highlighting a significant shift in adoption since 2020, referred to as a **Robot Renaissance** [1][16]. - The industry is experiencing a new phase driven by advancements in **AI**, which is expected to elevate the **compound annual growth rate (CAGR)** to the low-teens and significantly increase the **total addressable market (TAM)** [1]. Key Points and Arguments - The original Robot Renaissance transitioned from **pre-programmed, fixed paths** to **real-time flexible path planning**, enabling applications like **machine tending, palletizing, and smart welding** [2][6]. - The next phase will focus on **complex task planning**, allowing robots to perform tasks requiring higher cognitive functions, such as **long-sequence, high dexterity tasks** and **collaborations between machines and humans** [2][6]. - Without these advancements, growth in the industrial robot sector would likely slow to single digits. The forecast predicts a **10-year CAGR of 12%**, sustaining beyond the next decade [2][11]. - There is a notable variance in **robot penetration** across different industries, indicating significant growth potential as enhanced flexibility in robots narrows this gap [2][6]. Technological Insights - **Physical AI** is identified as the enabling technology for the new Robot Renaissance, comprising a multi-layer AI ecosystem that includes: 1. **Robots and their digital twins** 2. **Task/path planning software** powered by multimodal AI 3. **Sensors** for collecting physical data 4. **Digital representations of environments** for simulating interactions [3][30]. - The demand for **sensors**, both vision and non-vision, is expected to rise significantly to support advanced robotic functions [4][38]. Industry Players and Collaborations - Key beneficiaries of the trends in physical AI include **FANUC, Keyence, and Mech-Mind** [5][35]. - Leading robot manufacturers like **FANUC** are expanding into the **brain layer** of physical AI and seeking collaborations, as evidenced by their recent partnerships with **NVIDIA** and the adoption of **ROS2** [4][38]. Investment Implications - The report recommends an **Outperform** rating for companies such as **FANUC, Keyence, Inovance, Cognex, Hikvision, and Harmonic Drive**, while suggesting a **Market Perform** rating for **Estun** [51]. Additional Insights - The report emphasizes that while **Physical AI** expands robot capabilities, it does not disrupt existing robot manufacturers, as the core motion control algorithms remain essential [4][38]. - The distinction between the **"brain"** and **"world"** models is crucial, with different players serving each layer, which is often misunderstood [4][38]. - The report highlights the importance of **sensor technology** in enhancing robotic task planning and building the digital environment models [4][38]. This summary encapsulates the key insights and implications from the conference call regarding the industrial robotics sector and the transformative role of physical AI.

Summary of the Conference Call on Robotics and Physical AI Industry Overview - The discussion centers around the **industrial robotics industry**, highlighting a significant shift in adoption since 2020, referred to as a **Robot Renaissance** [1][16]. - The industry is experiencing a new phase driven by advancements in **AI**, which is expected to elevate the **CAGR** (Compound Annual Growth Rate) to the low-teens and significantly increase the long-term **TAM** (Total Addressable Market) [1][2]. Key Points and Arguments Evolution of Robotics - The original Robot Renaissance involved a transition from **pre-programmed, fixed paths** to **real-time flexible path planning**, enabling applications like machine tending, palletizing, and smart welding [2][6]. - The next phase focuses on **complex task planning**, allowing for high dexterity tasks and deeper collaborations between machines and humans [2][6]. - Without these advancements, growth in the industrial robot sector would likely slow to single digits; however, the forecasted ten-year CAGR is expected to accelerate to **12%** [2][11]. Role of Physical AI - **Physical AI** is described as a multi-layer AI ecosystem that enhances robot capabilities without disrupting existing robot manufacturers [3][4]. - The ecosystem includes: 1. Robots and their **digital twins** 2. **Task/path planning software** powered by multimodal AI 3. **Sensors** for collecting physical data 4. A **digital representation** of the environment for simulating interactions [3][30]. Market Dynamics - Demand for **sensors**, both vision and non-vision, is expected to rise significantly, supporting advanced robotic task planning and the development of "world models" [4][38]. - Leading companies like **FANUC** are expanding into the "brain" layer of Physical AI while seeking collaborations in both the "brain" and "world" layers [4][38]. Key Beneficiaries - Major beneficiaries of the trends in industrial robotics include **FANUC**, **Keyence**, and **Mech-Mind** (the latter being a private company) [5][35]. - The report recommends an **Outperform** rating for FANUC, Keyence, Inovance, Cognex, Hikvision, and Harmonic Drive, while suggesting a **Market Perform** rating for Estun [51]. Additional Insights - The report emphasizes the **variance in robot penetration** across different industries, indicating significant growth potential in sectors with low automation adoption rates [2][19]. - The integration of **NVIDIA's technology** with FANUC's systems is highlighted as a strategic move to enhance simulation capabilities in production environments [49]. Conclusion - The industrial robotics sector is poised for substantial growth driven by advancements in Physical AI and complex task planning, with key players positioned to benefit from these trends. The forecasted CAGR of **12%** over the next decade reflects the optimistic outlook for the industry [2][11].

服务团队深入研究所实验室与成果展示平台，了解机器人关键技术、核心部件及系统集成最新突破，围 绕质量基础设施赋能产业链发展议题，与专家务实交流，精准锚定产业痛点与服务需求。 国家机器人质量检验检测中心（辽宁）主任分享创新探索成果。该中心在市场监管总局指导下，构 建"核心零部件—整机性能—场景应用"全链条评价体系，突破六大工业场景化测评技术，形成融合环境 与任务动态性的综合评价体系，精准赋能国产机器人提质增效。 针对北方部分机器人企业产品优质却市场认知度不足的现状，研究所专家建议，由区市场监管局牵头搭 建"产用研"协作平台，通过场景试用、反馈改进精准对接市场需求，培育本地供应链，推动产业链协同 发展。 区市场监管局积极回应建议，明确实施"质量赋能＋服务护航"双轮驱动策略：强化政策精准供给，搭建 产业协同平台，推动项目落地转化，建立常态化政企研沟通机制，以务实举措助力产业向高端迈进。 （来源：沈阳日报） 转自：沈阳日报 近日，浑南区市场监管局助企服务团队走进中国科学院沈阳自动化研究所，围绕工业机器人质量提升与 知识产权保护开展专项对接，以政研联动的务实之举，为区域机器人产业创新发展注入强劲动能。 沈阳日报、沈报全媒 ...

Core Insights - POSCO Holdings Inc. has enhanced its partnership with Yaskawa Electric to promote advanced automation in its global mobility-parts operations [1] Group 1: Partnership and Agreement - POSCO Mobility Solutions, Yaskawa, and POSCO DX signed a three-way agreement on January 14 to implement integrated robotic systems for producing drive motor cores, essential components for EVs and hybrid vehicles [2] - The collaboration will extend to POSCO Mobility Solutions' facilities in Cheonan, Pohang, and international locations in Poland, Mexico, and India [2] Group 2: Automation and Production Improvements - The planned robotic systems will automate material handling and real-time quality sorting, aiming to enhance safety, reduce manual labor, and increase production speed [3] - POSCO DX will manage system design and integration, while Yaskawa will provide high-precision robots and technical support [3] Group 3: Strategic Alignment - This initiative builds on successful pilot applications at the Pohang facility and aligns with POSCO's long-term strategy to enhance robotics, automation, and AI-driven manufacturing across its steel, battery, and industrial sectors [4] - The partnership supports the group's goal of advancing physical AI and transitioning to next-generation intelligent factories [4] Group 4: Stock Performance - Shares of POSCO Holdings Inc. (PKX) have increased by 22.6% over the past year, compared to a 48.7% rise in the industry [6]

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Core Viewpoint - Zhejiang Yifei Intelligent Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with Agricultural Bank of China International as the sole sponsor. The company focuses on industrial robots and related solutions, particularly in light industrial applications [1]. Group 1: Company Overview - Yifei Technology is a Chinese industrial robotics company specializing in the design, research and development, manufacturing, and commercialization of industrial robots [1]. - The company provides comprehensive robotic solutions and has established a full coverage technology ecosystem, achieving large-scale intelligent decision-making, environmental perception, precise control, and autonomous movement [1]. - According to a report by Frost & Sullivan, Yifei Technology ranks fifth among domestic companies in China that focus on industrial robots and related solutions for light industrial applications, based on projected revenue for 2024 [1].

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **Chinese economy**, focusing on various economic indicators and trends, particularly in the **retail, property, and investment sectors**. Core Insights and Arguments 1. **Retail Sales Performance**: - Retail sales growth slowed to **1.3% YoY** in November, down from **2.9% YoY** in October, which was weaker than market expectations of **2.9%** [110] - Sales of household appliances and automobiles contracted significantly, with household appliances down **19% YoY** and autos down **8% YoY** [110] - The overall consumption growth is expected to remain soft in 2026 due to high base effects and ongoing property downturn [110] 2. **Fixed Asset Investment (FAI)**: - FAI growth remained weak, with a **YoY decline of -11.1%** in November, slightly better than the previous month [85] - Manufacturing FAI saw a modest improvement, narrowing its decline to **-4.5% YoY** [85] - Infrastructure FAI continued to contract sharply at **-11.9% YoY** [85] - The deployment of special financing tools from policy banks may provide some support for FAI components in the future [85] 3. **Property Market Dynamics**: - The property market continues to face challenges, with property sales growth falling by **17.3% YoY** in November and new starts down **27.6% YoY** [70] - The average new home sales price in 70 cities declined by **0.4% MoM** in November, indicating ongoing price pressures [70] - The government has implemented various measures to support the property sector, but the recovery is expected to take time [70] 4. **Economic Growth Projections**: - Q4 GDP growth is anticipated to decelerate to around **4.2% YoY**, with full-year 2025 GDP growth averaging **4.9%**, aligning with the target of "around 5%" [4] - The Central Economic Work Conference (CEWC) is expected to set a GDP growth target of **4.5-5%** for 2026, although achieving this may be challenging due to anticipated slowdowns in exports and the property market [6] 5. **Monetary and Fiscal Policy**: - Modest policy easing is ongoing, with expectations of a **20bps cut in policy rates** by the end of 2026 [5] - The government plans to increase consumption subsidies to **RMB 400 billion** in 2026 from **RMB 300 billion** in 2025, aiming to support consumer spending [110] Other Important Insights - **Inflation Trends**: - November CPI inflation increased to **0.7% YoY**, driven by a rebound in food prices, while PPI recorded a slight decline of **-2.2% YoY** [125] - The inflation outlook suggests a potential rebound in CPI to **0.4%** in 2026, while PPI may only turn positive by late 2026 or early 2027 [125] - **Credit and Liquidity Conditions**: - Total social financing (TSF) growth stabilized at **8.5% YoY** in November, with new RMB loans totaling **RMB 390 billion** [140] - The PBC is expected to continue accommodative monetary policy, with further RRR cuts anticipated [150] This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the Chinese economy, particularly in retail, property, and investment sectors.

Investment Rating - The report does not explicitly provide an investment rating for the industry [1]. Core Insights - The global labor market is estimated to be valued at $40 trillion, with approximately 4 billion workers worldwide, suggesting a significant total addressable market for humanoid and industrial robots [42][43]. - The report anticipates that by 2050, there will be an estimated 1 billion humanoids globally, indicating a substantial growth potential in the humanoid robotics sector [48]. - The report highlights that China currently dominates the humanoid landscape, with significant government support and numerous publicized events showcasing humanoid technology [73][86][89]. Summary by Sections Humanoids - Humanoids are capable of performing complex tasks that require advanced dexterity and intelligence, but they are still in development and require significant training and data [59]. - The primary barrier to scaling humanoids is the availability of data for training [61]. - The report notes that the cost of building a humanoid robot is significantly lower in China, estimated at around $50,000 compared to $130,000 in the US, highlighting the impact of supply chain efficiencies [150][152]. Industrial Robots - Industrial robots are effective at performing simple, repetitive tasks but may require modifications to existing workplaces [60]. - The report identifies that the most relevant job replacements for industrial robots are in boring, dangerous, and repetitive tasks, particularly in warehouses and heavy manufacturing [45]. - The report emphasizes that the integration of AI and robotics is accelerating, driven by labor shortages and technological advancements [36]. Market Dynamics - The report discusses the competitive landscape, noting that major US tech firms are beginning to test humanoids in various applications, including delivery operations [114]. - It highlights a significant public support gap for humanoids between the US and China, with higher acceptance and interest in China [102][107]. - The report also mentions that every major auto company in China is involved in humanoid development, indicating a strong industry push [98].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Global Manufacturing - **Company**: Morgan Stanley Asia Limited Core Insights and Arguments 1. **China's Dominance in Global Manufacturing**: China accounts for 15% of global exports and 28% of global manufacturing GDP, maintaining a trade surplus with 177 out of 225 economies [2][111] 2. **Projected Export Market Share**: China's global export market share is projected to increase to 16.5% by 2030, up from 15% currently, driven by its strengths in advanced manufacturing and emerging sectors like EVs, batteries, and robotics [1][4][92] 3. **Export Growth in Key Segments**: From 2019 to 2024, China's export growth outpaced global growth in 11 out of the 15 fastest-growing export segments, capturing 19% of the incremental export market revenue in these categories [2][23] 4. **Geopolitical Concerns and Diversification Efforts**: Trade partners are concerned about China's dominance, leading to efforts to diversify supply chains away from China, particularly by the US and EU [3][4] 5. **China's Strategic Industrial Policies**: China's industrial policy is characterized by robust execution, financial backing, and regulatory support, enabling rapid scaling of new industries [9][10] 6. **Talent Pool and Education**: The number of university graduates in China has increased by 42% from 2019 to 2024, with a significant share in STEM fields, enhancing the country's manufacturing capabilities [10][18] 7. **Automotive Sector Evolution**: China has transformed from a net importer of auto parts to the world's largest exporter of autos, with a trade surplus in this sector growing from US$40 billion in 2017 to US$116 billion in 2025 [56] 8. **Innovation in EVs**: Chinese companies are leading in EV production and battery manufacturing, with over 50% of global EVs sold being from China [56][57] 9. **Impact of Global Industrial Policies**: A resurgence in global industrial policies has been noted, with 75% of major economies implementing trade and industry-oriented interventions [58][59] Additional Important Insights 1. **China's Export Market Share Dynamics**: While China's share in US imports has decreased, its global export market share (excluding the US) has risen from 13.2% in 2017 to 17% currently [75][111] 2. **Challenges and Risks**: Risks include persistent deflationary pressures due to overcapacity and the effectiveness of protectionist measures that may hinder China's ability to maintain its market share [106][110] 3. **Regional Implications**: Countries like Japan and Korea face increased competitive pressure, while Vietnam, Malaysia, and India may benefit from supply chain diversification but remain dependent on China for critical inputs [96][98][99] This summary encapsulates the key points discussed in the conference call regarding China's position in global manufacturing and the implications for the industry and other economies.