Core Viewpoint - Harbin Electric Group Jiamusi Electric Machine Co., Ltd. (Jiamusi Electric) held an online performance briefing for the first half of 2025, discussing business strategies, market opportunities, and financial management with investors [1][2]. Business Layout and Development - The company has made technological preparations in response to updated national energy efficiency standards, leading to increased sales of high-efficiency motors such as YXKK, YJKK, YE5, and YBX3 [3]. - To address competitive pressures in the traditional motor business, the company optimized its technology, launching the YXKK2 series, which achieves low costs and high profits [3]. - The company has established a specialized design office and sales team for the hydropower sector, although no contracts have been signed yet [3]. New Business Opportunities and Product Promotion - The company has been polite in responding to inquiries about promoting hub motors for electric vehicles but has not seen market conversion over the years [3]. - The company is actively researching the liquid cooling market for data centers and increasing its technological reserves [3]. Market Management Initiatives - The company plans to complete a major asset restructuring by December 2023, acquiring controlling interest in a key pump company [3]. - In March 2025, the company intends to issue 1.01 billion shares at 10.92 yuan per share to raise 11 billion yuan [3]. - The company will implement an equity incentive plan and distribute cash dividends of no less than 30% of the annual distributable profits [3]. Market Expansion - The gross profit margin for foreign sales is 36.36%, significantly higher than domestic margins, prompting the company to focus on international market expansion [3]. - The company is monitoring national industry policies to guide its market strategies [3]. Technical Applications - The magnetic suspension bearings and drive control systems can be applied in the oil and chemical industries but are not suitable for robotics [3]. - The company has independently developed a mechanical arm patent, which is currently in the application stage for production use [3]. Operational Performance - The company's operating performance in the first half of the year declined year-on-year due to a downturn in the motor sector, but it plans to intensify market development efforts in the second half [3]. - The company expects a continuous net inflow of operating cash flow in the second half, supported by sufficient cash reserves to mitigate cash flow risks [3].

Group 1: Company Performance and Financials - The company plans to hold regular performance exchange meetings based on regulatory requirements and actual conditions, including annual and semi-annual performance briefings [2] - The company has increased its registered capital by over 500 million, expanding its business scope to include communication and IoT equipment manufacturing [3] - The company reported a decline in revenue and profit from traditional motor business, while nuclear power business has seen growth [4] - The company’s domestic sales account for 99.56% of total revenue, while international sales account for only 0.44%, but international gross margin is significantly higher at 36.36% [10] Group 2: Market Strategy and Product Development - The company is actively conducting market research and increasing technological reserves to adapt to market demands [4][18] - The company has developed a new series of YXKK2 motors that achieve low costs and high profits, addressing the profitability issues in traditional motors [4] - The company is focusing on expanding into the hydropower industry and has established a specialized design office and sales team for this purpose [9] - The company has built the largest 30 MW permanent magnet test base in the country, which is now operational [22] Group 3: Investor Relations and Market Management - The company has implemented a market value management system and is actively monitoring market changes and stock fluctuations [5][27] - The company has a cash dividend policy of at least 30% of distributable profits annually [11] - The company has invested 180 million in digital transformation, resulting in a 35% increase in production efficiency and a 56% increase in capacity [42] Group 4: Future Outlook and Challenges - The company is optimistic about the positive impact of the new energy efficiency standards on its performance [26] - The company is facing challenges in cash flow, with a net outflow in the first half of the year but expects a net inflow in the second half [31] - The company is committed to enhancing its market presence and improving its stock performance through various strategies [30][24]