Hangzhou Xzb Tech Co., Ltd. (603040) released its Q3 2025 financial report, posting revenue of RMB 203 million (+21% YoY, -3.7% QoQ) and net profit attributable to shareholders of RMB 67 million (+34% YoY, -10% QoQ). Gross margin reached 55.2%, hitting a two-year high with a YoY increase of 2.9 percentage points (PP) and QoQ growth of 1.1 PP.
**Key Highlights**: 1. **Automotive Sector Expansion**: - **Passenger Vehicles**: The company supplies domestic clients including SAIC Volkswagen, FAW-Volkswagen, and BYD, while expanding overseas partnerships with Volkswagen Europe, Volkswagen Mexico, Volkswagen Brazil, and Stellantis. Overseas revenue surged 31% YoY to RMB 200 million in H1 2025, accounting for 51% of total revenue. - **Commercial Vehicles**: Clients include JMC, Deutz, MAN, Scania, Liebherr, Caterpillar, John Deere, and Quanchai. Commercial vehicle revenue soared 130% YoY to RMB 70.54 million in H1 2025, with gross margin jumping 15.6 PP to 60%.
2. **Screw Subsidiary Launch**: In May 2025, the company invested RMB 77 million (77% stake) to establish *Jiuyueba Transmission*, focusing on R&D and production of roller screws and ball screws. On September 24, it unveiled its screw products after three years of development, targeting high-precision transmission solutions.
**Risks**: Potential delays in new product development, humanoid robot commercialization, or client demand volatility.
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