Financial News Agency, November 17 (Reporter Wu Chao) Bafang Co., Ltd. (603489.SH) experienced poor performance this year. In particular, net profit for the Q3 quarter fell by more than 80% year on year. At today's performance briefing, the company attributed the reason to changes in the structure of sales products: “The profit level of each product is different, and the change in the share of each product in total revenue has a great impact on profit.”

Regarding specific sales data, Bafang Co., Ltd. revealed that the company sold about 38,000 mid-mounted motors in the third quarter, and the gross margin level remained stable. However, financial data showed that in the Q3 quarter, the gross sales margin of Bafang Shares was 23.95%, down 7.21 percentage points from Q2.

At the performance conference, Bafang Co., Ltd. stated that currently the terminal market sells relatively few mid-motor products in the domestic market, and the development of electric bicycles in China has just begun. With the popularity of domestic cycling culture, there will be some room and prospects for development. However, at this stage, the main markets for Bafang's central motors are the European and American markets.

According to statistics from brokerage agencies, Bafang Co., Ltd. is the world leader in electric bicycle motors. It is the only Chinese electric moped motor manufacturer that accounts for more than 10% of the European market, and can provide a full range of core components for electric bicycles, from instruments to motors to batteries. However, the European and American markets are facing a short-term decline in demand this year, mainly due to high inflation and suppression of demand.

According to previous relevant disclosures, Bafang Co., Ltd. has set up subsidiaries in the US and major European regions. Since this year, the company has further strengthened services through subsidiaries, while employing overseas employees to implement “localized after-sales service” for the European market. With the Netherlands as the first site, the DDS (direct-to-dealerservice) dealer direct service system project was launched.

As to when performance will pick up, Bafang Co., Ltd. believes that the purchasing power of consumers in overseas terminal markets is affected by multiple factors, and it will still take time for it to gradually recover.

In terms of capacity expansion, the Bafang Tianjin electric vehicle drive system manufacturing project plant was completed in June and has now been put into use; the Bafang New Energy lithium battery pack and high-end drive system manufacturing project is expected to be put into use by the end of the year, and will become a production and operation base for wholly-owned subsidiaries Bafang New Energy and Sudong Electric in the future.

However, in recent times, as well-known companies such as Midea Group, Yadi, and Maverick have all deepened the layout of central motors, Bafang Co., Ltd.'s leading position in the country may be shaken. In response, the company said that as more and more competitors join, it may have a certain impact on the future competitive landscape. The company adheres to R&D innovation and continuously enhances product capabilities to meet increasingly intense challenges.

Furthermore, humanoid robots are being vigorously promoted by national ministries and departments such as the Ministry of Industry and Information Technology, and Bafang Co., Ltd. is also classified as a humanoid robot concept stock by some research reports because the company's motors, sensors, and other products can be applied. In response, the company stated that it is currently focusing on the electric two-wheeler industry and has not carried out empirical research on the extension of the business field to robotics.