SHUANGHUAN COMPANY(SZ:002472)2025-10-31 13:04Group 1: Financial Performance - The company's Q3 2025 revenue decreased by 7.56%, while the revenue for the first three quarters declined by 4.10% due to a drop in other business income. However, the main business revenue increased by 9.68% year-on-year [3] - The largest business segment is the new energy vehicle gear business, which saw growth both year-on-year and quarter-on-quarter [3] - The traditional fuel vehicle gear business experienced a decline in the first half of the year, but the rate of decline narrowed in Q3 [3] Group 2: Business Segments and Growth - The smart execution mechanism business segment showed year-on-year growth in the first three quarters [3] - The commercial vehicle gear business declined in the first half but increased in Q3, with expectations for a further narrowing of the annual decline [3] - The company’s internal analysis indicated that the market share in the new energy vehicle sector remained stable despite a slowdown in growth [3] Group 3: Production and Operational Efficiency - The Yuhuan base is the most stable and contributes significantly to the company, with a net profit margin outperforming the group average [4] - The Chongqing base has seen a gradual improvement in gross profit margin after a challenging transition, particularly in the new energy commercial vehicle sector [4] - The Jiangsu base has shown significant improvement in gross profit margin through enhanced forging efficiency and design capabilities [4] Group 4: International Expansion and Market Strategy - The construction of the Hungary factory is progressing, with the first assembly line for differential gears already in production [5] - The company is preparing for full value chain production in Hungary to meet customer demands for localized production [6] - The Hungary factory is expected to achieve breakeven next year as customer projects ramp up [7] Group 5: Capital Expenditure and Future Planning - The overall capital expenditure for the company is expected to remain at similar levels as previous years, primarily focused on equipment investment [8] - The capital expenditure for the Hungary factory will constitute a significant portion of the overall capital spending, alongside investments in Chongqing and Jiangsu for new energy commercial vehicle gear business [9] Group 6: Smart Execution Mechanism Development - The smart execution mechanism business includes segments such as smart home, smart automotive, and smart office, with the smart home segment currently holding the largest market share [9] - The company has entered the Tier 1 supply chain for smart automotive, with expected revenue contributions in the coming year [9] - The E-bike business is expanding, with efforts to penetrate the European Tier 1 customer supply chain [9]