Core Viewpoint - The company has shown strong revenue growth and profitability improvement in the first half of 2025, with a significant increase in net profit exceeding expectations, driven by demand from automotive manufacturers in the Asia-Pacific region [1][2]. Revenue Performance - In H1 2025, the company's revenue reached $2.24 billion, a year-on-year increase of 6.8%, benefiting from the continuous growth in the Asia-Pacific region [1]. - Adjusted for unfavorable foreign currency translation and reduced commodity compensation, revenue growth was 7.6%, outperforming the market by 450 basis points [1]. - Revenue contributions from various products were as follows: EPS at $1.53 billion (up 9%), CIS at $230 million (up 3%), HPS at $90 million (up 2%), and DL at $400 million (up 4%) [1]. - The company secured $1.5 billion in new orders in H1 2025, with 69% from EPS and 47% from the Asia-Pacific region, and anticipates achieving $5 billion in orders for the full year [1]. Profitability Metrics - The gross margin improved by 1.5 percentage points year-on-year to 11.5%, with gross profit increasing by 22.7% to $260 million, driven by revenue growth and operational performance improvements [2]. - Adjusted EBITDA for H1 2025 was $230 million, a 16.8% increase year-on-year, with an EBITDA margin of 10.3%, up 0.9 percentage points [2]. - The net profit attributable to the parent company surged by 304.5% year-on-year to $63.48 million, with a net profit margin increase of 2.1 percentage points to 2.8% [2]. Strategic Developments - The company is advancing its core smart driving technologies, including steer-by-wire systems, rear-wheel steering, and line control braking, with significant contracts already secured from leading electric vehicle manufacturers [3]. - The MotionIQ software suite was launched to enhance smart motion control, integrating various functionalities to accelerate product launch and improve quality and cost efficiency [3]. - The Asia-Pacific region's revenue share increased by 2.3 percentage points to 30.6%, with higher profitability compared to North America and EMEASA [4]. Capacity Expansion - The company is expanding its production capacity in the Asia-Pacific region, with the opening of a new factory in Changshu and plans for a new facility in Liuzhou, expected to be operational by H1 2026 [4]. - The ongoing capacity expansion and increased utilization rates are anticipated to further enhance revenue and profitability in the Asia-Pacific region [4]. Investment Outlook - The company is expected to benefit from the trends of electrification and smart technology, maintaining steady growth and positioning itself among the leading manufacturers of linear steering systems [4]. - Revenue projections for 2025-2027 are $4.6 billion, $4.8 billion, and $5.1 billion, with net profits of $130 million, $160 million, and $180 million, reflecting year-on-year growth rates of 107%, 25%, and 11% respectively [4].