For the first half of 2026, JOYSON ELEC (00699) adhered to its operational targets of "steady growth and improved performance," navigating various challenges with flexibility. The company's core automotive parts business achieved stable development, with profitability demonstrating notable resilience. During the reporting period, revenue reached approximately RMB 28.1 billion, while net profit attributable to shareholders stood at around RMB 740 million, reflecting a year-on-year increase of roughly 4.4%. Operating cash flow improved to approximately RMB 1.93 billion, showing gradual upward momentum. Concurrently, through organizational innovation and strategic expansion, JOYSON is leveraging its expertise in automotive core components, R&D, and high-end manufacturing to accelerate its entry into emerging technology industries such as intelligent agents, AI computing centers, and low-altitude aircraft, thereby cultivating a second growth curve.

The resilience of the main business remained evident, with overseas gross margins continuing to climb. Amid a challenging global automotive market and rising raw material costs, JOYSON ELEC maintained strong profitability, keeping its core business gross margin steady at approximately 17.8%. In recent years, the company has consistently optimized its global supply chain and production capacity layout, actively integrating Chinese supply chain resources, enhancing overseas procurement systems, advancing lean manufacturing and automation upgrades, and dynamically adjusting capacity deployment based on market demand. As the benefits of overseas integration and long-term cost-reduction initiatives gradually materialize, the company's overseas gross margin improved by about 0.3 percentage points year-on-year to roughly 18.1% in the first half, further bolstering profitability. Data indicates that the overseas business gross margin has more than doubled from 9% in the first half of 2022.

To continuously strengthen its core competitiveness, JOYSON ELEC has focused its R&D investments on frontier areas including intelligent driving, other cutting-edge smart EV technologies, emerging intelligent agents, and server power solutions. During the reporting period, R&D expenditure totaled approximately RMB 2.28 billion. In core automotive technologies, the company is advancing innovation in intelligent driving, domain fusion controllers, and in-vehicle optical communication under the new electronic and electrical architecture, while intensifying the deep integration of large models into its intelligent cockpit offerings. In automotive safety, it has developed a range of innovative safety solutions and continues to contribute to the refinement of industry standards and regulations.

Benefiting from sustained R&D investment and the accelerating commercialization of intelligent driving, JOYSON's autonomous driving business, built on a "multi-chip platform + ecosystem collaboration" technical route, has not only developed full-stack solutions from entry-level to high-end but has also entered the stage of mass production and delivery. Regarding new orders, the projected full-lifecycle order value for newly secured projects in the first half reached approximately RMB 44.9 billion. Leading domestic brands and new EV startups have become the core drivers of order growth, with their share steadily increasing, providing solid support for the company's long-term development.

Seizing the dual opportunities of overseas intelligence upgrades and the accelerated global expansion of Chinese automakers. In the first half of 2026, China's auto industry exhibited characteristics of "overall pressure, structural adjustment, and intense competition," with sustained price wars compressing profitability in the domestic sector and posing challenges to the stability of the industrial chain and the industry's healthy, sustainable development. New energy vehicles, intelligence, and going global remain the core growth drivers. JOYSON ELEC stands out as one of the few Chinese auto parts companies with a complete global footprint, operating manufacturing bases and R&D centers in major automotive-producing countries. This combination of Chinese roots and global reach offers unique advantages: on one hand, it enables rapid response to demand, reduced communication costs, and the use of global resources to provide Chinese OEMs with cost-effective, end-to-end solutions covering R&D, production, and after-sales service for their overseas ventures. On the other hand, it leverages China's intelligent electric technology strengths alongside global experience to capitalize on new opportunities for intelligence upgrades in overseas markets.

In terms of intelligence upgrades for overseas OEMs, JOYSON ELEC has secured mass-production project awards from European, Japanese, and Korean automakers, with products serving global markets including Europe and Asia. These include advanced driver assistance systems, intelligent cockpits, and zone controllers. In supporting Chinese brands' global expansion, the company has successively obtained orders for overseas-bound models from domestic brands and new EV startups. Amid evolving global trade dynamics and tariff policy adjustments in some countries, Chinese automakers are transitioning from complete vehicle exports to a new phase of "technology export + localized production" (Going Global 2.0). JOYSON is actively pursuing localized production opportunities with leading domestic brands overseas. Currently, its overseas factories have secured and are mass-producing local orders from several top domestic OEMs, with ongoing efforts to expand collaborations with more Chinese automakers, positioning the company to gain a first-mover advantage in this trend.

Aggressively expanding business boundaries and strategically upgrading its energy management business. In recent years, JOYSON ELEC has been migrating its automotive energy management technologies and capabilities to emerging high-end technology scenarios such as intelligent agents, AI computing centers, and low-altitude aircraft. This marks a strategic evolution of its energy management business from an auto parts provider to a comprehensive high-end intelligent new energy solution service provider. For instance, in the AIDC field, the company is intensively developing products and integrated solutions including AC/DC power conversion units, high-power DC/DC converters, and fully immersed liquid-cooled power cabinets, with samples expected to be launched and brought to market by September 2026.

Furthermore, JOYSON ELEC is offering comprehensive energy solutions for emerging intelligent agents, encompassing "cells/modules/battery packs + battery management systems + data services + charging infrastructure." It is also supplying a three-in-one product integrating battery management, DC voltage conversion, and power distribution units to a foreign eVTOL company. Additionally, the company is developing power management and distribution module products for other leading domestic high-tech sector clients, with samples expected to be delivered within the year. In the emerging intelligent agent domain, employing a strategy combining organic growth, business partnerships, and strategic investments, JOYSON has established three subsidiaries: Lingxi Intelligent, Chaoping Technology, and Joen New Energy, focusing on key technology areas such as dexterous hands, intelligent agent "brains," and comprehensive energy solutions.

Since the start of the year, JOYSON ELEC has continuously driven the iteration and upgrade of core components for intelligent agents, releasing new products such as the Lingxi series dexterous hands, intelligent brains, head assemblies, and solid-liquid hybrid energy solutions. It has also delivered high-performance body exoskeletons and central controllers to leading clients in North America and domestically. Looking ahead, the company will persist in its evolution from an auto parts manufacturer to an intelligent technology company, actively seizing market opportunities presented by new energy vehicles, intelligent driving, and the global expansion wave, while continuously exploring growth avenues in emerging fields like intelligent agents, AI computing centers, and low-altitude aircraft to cultivate new momentum for long-term, sustainable development.