Core Viewpoint - Jinlong Automobile has shown significant stock performance with a year-to-date increase of 13.91% and a notable rise of 40.62% over the past 20 trading days, indicating strong market interest and potential growth in the commercial vehicle sector [1][2]. Financial Performance - For the period from January to September 2025, Jinlong Automobile achieved a revenue of 16.329 billion yuan, reflecting a year-on-year growth of 13.40% [2]. - The net profit attributable to the parent company reached 247 million yuan, marking a substantial increase of 223.71% compared to the previous year [2]. Stock Market Activity - As of November 5, Jinlong Automobile's stock price was 15.89 yuan per share, with a market capitalization of 11.394 billion yuan [1]. - The stock experienced a trading volume of 173 million yuan and a turnover rate of 1.55% on the same day [1]. - The net inflow of main funds was 21.42 million yuan, with significant buying activity from large orders [1]. Shareholder Information - As of September 30, 2025, the number of shareholders decreased by 5.02% to 61,200, while the average circulating shares per person increased by 5.28% to 11,706 shares [2][3]. - The cumulative cash distribution since the A-share listing amounts to 862 million yuan, with 104 million yuan distributed over the last three years [3]. Company Overview - Jinlong Automobile, established on October 18, 1996, and listed on November 8, 1993, is primarily engaged in the production and sales of large, medium, and light buses [1]. - The company's main business revenue composition is 94.59% from automotive and body parts, with the remaining 5.41% from other sources [1].

Summary of Jinlong Automobile Conference Call Company Overview - **Company**: Jinlong Automobile - **Industry**: Automotive, specifically bus manufacturing Key Financial Performance - **Q3 2025 Revenue**: 780,000 CNY, up 159.25% YoY [2] - **Earnings Per Share (EPS)**: 0.34 CNY, up 209.09% YoY [2] - **Total Bus Sales**: 34,862 units, up 5.86% YoY [2] - **Gross Margin**: Increased by nearly 2 percentage points QoQ due to cost reduction and higher-value orders [2][5] - **Net Profit**: 247 million CNY, up 223.71% YoY [3] Growth Drivers - **Cost Reduction and Efficiency**: Significant improvements in cost management and procurement strategies [2][5] - **Export Business**: Exports accounted for over 60% of total sales, contributing positively to gross margin [2][5] - **High-Value Orders**: Increased proportion of high-value orders has positively impacted profitability [2][5] Future Outlook - **Q4 2025 Expectations**: Continued growth in revenue and profit, but uncertainty in gross margin improvement [6] - **Annual Performance Goals**: Targeting positive net profit after deductions, a 2 percentage point increase in gross margin, and ROE exceeding 6% [7] - **Sales Projections**: Domestic sales may decline by 5%-10% in 2025, but overseas markets are expected to grow by 10%-15% annually [4][27] Export Market Insights - **Key Markets**: Significant growth in Asia, Middle East, Southeast Asia, and Northeast Asia, with Israel as the largest export destination [4][14] - **Demand Drivers**: Increased demand in Southeast Asia due to reduced exports from Japanese manufacturers and electric vehicle projects [4][14] Strategic Initiatives - **Intelligent Driving**: Early investments in smart driving technology, including partnerships with Baidu for autonomous buses [4][9] - **Consolidation of Subsidiaries**: Ongoing integration of three bus manufacturing subsidiaries to enhance operational efficiency [17][22] - **Centralized Procurement**: Achieved over 30% centralized procurement, aiming for 90% by the end of 2027 [10][19] Challenges and Risks - **Domestic Market Volatility**: Anticipated decline in domestic sales due to subsidy changes and market conditions [27] - **Competitive Landscape**: Need to improve market share against competitors like Yutong, which holds a significant portion of the market [29] Additional Insights - **Non-Recurring Gains**: Third-quarter non-recurring gains primarily from government subsidies and reduced financial income [8] - **Future Product Development**: Focus on enhancing vehicle comfort and performance through advanced technologies [29][30] Conclusion Jinlong Automobile is experiencing significant growth driven by export markets and strategic cost management. The company is well-positioned for future growth, although it faces challenges in the domestic market and competition. The focus on intelligent driving and centralized procurement will likely enhance its competitive edge in the coming years.

Core Viewpoint - The commercial vehicle sector is experiencing a significant performance surge in Q3 2025, with major companies reporting substantial revenue and profit increases after a challenging first half of the year [1][2]. Group 1: Commercial Vehicle Performance - Ten listed commercial vehicle companies reported total revenue exceeding 124.4 billion yuan and net profit over 5.8 billion yuan in Q3 2025 [1]. - Weichai Power led the industry with revenue of 57.42 billion yuan and a net profit of 3.23 billion yuan [1]. - Eighty percent of commercial vehicle companies saw significant increases in both revenue and net profit in Q3 compared to the previous half [1]. Group 2: Heavy Truck Sales Growth - Heavy truck sales in Q3 showed remarkable growth, with monthly sales of 84,900 units in July, 88,000 units in August, and 105,000 units in September, representing year-on-year increases of 45.6%, 41%, and 82% respectively [1][2]. - Major heavy truck manufacturers, including FAW Jiefang and Foton Motor, reported revenues exceeding 15 billion yuan and net profits over 300 million yuan in Q3 [2]. Group 3: Policy and Market Drivers - Government policies supporting the commercial vehicle sector, including subsidies for scrapping old vehicles and promoting natural gas and "National IV" vehicles, have stimulated market growth [3][4]. - The penetration rate of new energy vehicles in the commercial vehicle sector is rapidly increasing, contributing to market expansion, with 24,000 new energy heavy trucks sold in September alone, marking a 184% year-on-year increase for the first nine months [3]. Group 4: Bus Sector Performance - Bus companies also reported significant revenue increases, with Yutong Bus achieving 10.24 billion yuan in revenue and a net profit of 1.357 billion yuan in Q3, reflecting a 32.3% and 78.9% year-on-year increase respectively [5][6]. - King Long Motor reported a revenue of 6.002 billion yuan and a net profit increase of 1211% in Q3, driven by increased sales and enhanced export business [7].

Core Viewpoint - Xiamen King Long has successfully won two major bids in the new energy bus procurement market, totaling 20.97 million yuan [1]. Group 1: Bid Results - Xiamen King Long won the bid for the 8-meter pure electric bus procurement project by Xincheng Public Transport Company, with a bid amount of 11.7 million yuan [3][5]. - The company also secured the bid for the 6.5-meter new energy bus procurement project by Baoying County Yimin Public Transport Company, with a bid amount of 9.27 million yuan [6]. Group 2: Project Details - The 8-meter bus project is identified under project number 202521140012151164, and it is a legally required bidding project [5]. - The 6.5-meter bus project is part of the 2025 procurement plan for Baoying County [6].

Core Viewpoint - The company reported strong financial performance in Q3 2025, with significant revenue and profit growth, driven by export sales and internal cost optimization [3][4][5]. Financial Performance - In Q3 2025, the company achieved revenue of 6.002 billion yuan, a year-on-year increase of 29.43% and a quarter-on-quarter growth of 11.05%. The net profit attributable to shareholders reached 131 million yuan, up 1211.04% year-on-year and 88.64% quarter-on-quarter [3]. - The company’s gross profit margin in Q3 2025 was 13.6%, an increase of 4.3 percentage points year-on-year and 1.8 percentage points quarter-on-quarter, primarily due to internal cost optimization [6][7]. Sales and Export Performance - The company’s sales volume for Q1, Q2, and Q3 of 2025 were 11,000, 11,500, and 12,400 units respectively, showing a year-on-year increase of 11.19% in Q1, a decrease of 12.20% in Q2, and a significant increase of 23.64% in Q3. The export volume in Q3 was 7,200 units, up 33.67% year-on-year [4][5]. Cost and Expense Management - The company’s expense ratio was 10.8% in Q3 2025, with a slight year-on-year increase of 0.12 percentage points, mainly due to a rise in sales expenses [7]. - The improvement in profitability is attributed to both internal cost optimization and an upgraded sales structure, which are expected to drive long-term growth [5][6]. Strategic Developments - The integration of three companies and management changes are ongoing, with the completion of a 40% equity acquisition of Jinlong Bus in December 2024. This integration is expected to optimize procurement and enhance gross profit margins [8]. - Management changes aim to improve operational efficiency, providing a strategic foundation for future profitability [8]. Profit Forecast and Investment Rating - The company maintains revenue projections of 25 billion yuan, 26.8 billion yuan, and 28.5 billion yuan for 2025-2027, with corresponding net profits of 440 million yuan, 640 million yuan, and 830 million yuan, reflecting growth rates of 182%, 45%, and 28% respectively. The company is rated as a "buy" [9].

Core Insights - The company reported a revenue of 16.33 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 13.4%, and a net profit attributable to shareholders of 250 million yuan, up 223.7% year-on-year [1] - In Q3 alone, the company achieved a revenue of 6 billion yuan, a year-on-year growth of 29.4% and a quarter-on-quarter increase of 11.0%, with a net profit of 130 million yuan, reflecting a staggering year-on-year growth of 1,211.0% [1] Revenue and Profitability - Q3 sales volume reached 12,000 units, marking a year-on-year increase of 23.6% and a quarter-on-quarter increase of 7.7% [1] - The export volume for Q3 was 7,574 units, accounting for 61.3% of total sales, with a slight quarter-on-quarter increase of 0.4 percentage points [1] - The average revenue per vehicle in Q3 was 486,000 yuan, which is an increase of 22,000 yuan year-on-year and 15,000 yuan quarter-on-quarter [1] Cost Management and Efficiency - The gross profit margin for Q3 was 13.6%, up 4.3 percentage points year-on-year and 1.8 percentage points quarter-on-quarter, attributed to improved sales structure and accelerated cost reduction from centralized procurement [2] - The company’s expense ratio for Q3 was 10.8%, with a slight year-on-year increase of 0.1 percentage points and a quarter-on-quarter increase of 1.4 percentage points [2] - The net profit margin for Q3 improved to 2.2%, reflecting a year-on-year increase of 2.0 percentage points and a quarter-on-quarter increase of 0.9 percentage points [2] Strategic Developments - The company has accelerated the integration of its three subsidiaries, with a 40% stake acquisition in Xiamen King Long expected to be completed by January 2025 [2] - The new chairman, Chen Feng, has initiated a new phase of reform within the group since May [2] - The company anticipates further optimization of costs and an increase in profitability due to improved product structure and deeper overseas expansion [2] Future Projections - The company is projected to achieve revenues of 26.25 billion yuan, 29.51 billion yuan, and 32.47 billion yuan for the years 2025 to 2027, with net profits of 380 million yuan, 910 million yuan, and 1.16 billion yuan respectively [3]

Core Insights - The commercial vehicle sector saw a rise of 0.72% on October 31, with Foton Motor leading the gains [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Commercial Vehicle Sector Performance - Foton Motor (600166) closed at 3.00, up 4.17% with a trading volume of 3.89 million shares and a transaction value of 1.183 billion [1] - China National Heavy Duty Truck Group (000951) closed at 18.14, up 3.78% with a trading volume of 312,300 shares and a transaction value of 564 million [1] - King Long Motor (600686) closed at 15.14, up 2.64% with a trading volume of 808,000 shares and a transaction value of 1.253 billion [1] - Other notable performances include Shuguang Co. (600303) up 1.86% and FAW Jiefang (000800) up 1.27% [1] Fund Flow Analysis - The commercial vehicle sector experienced a net outflow of 174 million from institutional investors and 167 million from speculative funds, while retail investors saw a net inflow of 342 million [2][3] - Yutong Bus (600066) had a significant net outflow of 91.16 million from institutional investors, while retail investors contributed a net inflow of 89.92 million [3] - Jianghuai Automobile (600418) saw a net inflow of 51.86 million from institutional investors, but a net outflow of 31.11 million from retail investors [3]

Core Viewpoint - China's bus exports have shown significant growth, with a total of 55,598 buses exported from January to September 2025, marking a year-on-year increase of 31.77% [1][10]. Group 1: Export Performance - In September 2025, a total of 7,228 buses were exported, reflecting a month-on-month increase of 8.71% and a year-on-year increase of 37.36% [1][3]. - The overall monthly export volume has exceeded 7,000 units for three consecutive months, indicating a trend towards higher export volumes [3]. - The export of large buses reached 4,744 units in September, a year-on-year increase of 78.61%, setting a new monthly record [5][10]. Group 2: Market Segmentation - The export of large buses has been particularly strong, while the medium bus segment saw a decline, and light buses experienced a slight recovery [5][6]. - In September, the export of seated buses and public transport buses maintained robust growth, with seated buses exporting 3,749 units (up 33.7%) and public transport buses exporting 3,473 units (up 93.16%) [8][9]. - The large public bus segment showed a significant increase, with exports reaching 2,878 units, a year-on-year surge of 124.14% [9]. Group 3: Company Rankings - Yutong led the export rankings with 10,742 units from January to September 2025, a year-on-year increase of 18.17% [10][12]. - The Xiamen Golden Dragon group followed closely with exports of 9,152 units, reflecting a substantial year-on-year growth of 77.99% [10][12]. - Ankai Bus and Foton Ouhui also showed significant growth, with Ankai's exports increasing by 178.21% year-on-year [10][12]. Group 4: Future Outlook - The future of China's bus export market appears promising, with a need for companies to align with overseas demand, optimize product structures, and enhance technology and services to capture broader market opportunities [31].

Group 1 - Fujian local stocks experienced a significant rise, with Pingtan Development achieving 8 consecutive trading limits in 11 days [1] - Fulongma and Fujian Jinsen recorded 2 consecutive trading limits [1] - Other companies such as Zhuoyue New Energy, Luchao Information, Jinlong Automobile, and Sanmu Group also saw increases [1]

Core Viewpoint - The company, Xiamen King Long Motor Group Co., Ltd., has released its third-quarter report for 2025, ensuring the accuracy and completeness of the information provided in the report [7][9]. Financial Data - The third-quarter financial statements have not been audited [3]. - The report includes major accounting data and financial indicators, although specific figures are not detailed in the provided text [3][4]. - The company has confirmed that there were no significant changes in the net profit of merged entities during the reporting period [7]. Corporate Governance - The board of directors and the supervisory board have guaranteed the authenticity and completeness of the quarterly report, taking legal responsibility for any inaccuracies [2][9]. - The board meeting to approve the third-quarter report was held on October 30, 2025, with all seven directors present, and the resolution passed unanimously [8][10]. Investor Communication - An earnings briefing is scheduled for November 12, 2025, to discuss the third-quarter performance and address investor questions [11][12]. - The briefing will be conducted online, allowing investors to submit questions in advance [14].