Auto + Robotics Tier 1 + In-vehicle Optical Communication Strategy Creates New Growth Space

1. Upgrade of intelligent driving product structure: New orders for high-end intelligent products such as intelligent driving domain controllers, central computing units, and on-board multi-link screens have exceeded RMB20 bn. After in-depth strategic cooperation with Momenta, a leading domestic algorithm company, the company has quickly secured orders from 2 leading domestic automakers.

2. As a Tier 1 supplier, relying on relevant driving factors such as in-vehicle bracket drive and vehicle weight reduction, the company focuses on the demand for optical modules in the automotive field. The automotive on-board field is the foundation of the company's business, but the greater market potential in the future lies in the AI computing power field. In the organic growth field, the company has strategically invested in Fast Photonics, an optical module manufacturer, and there is no exclusion of further cooperation actions in the future. In the endogenous field, the on-board high-voltage power supply and AI server power supply share the same technical origin. By meeting the needs of automaker customers, the company layouts the power supply demand of autonomous driving AI data centers.

3.Auto main business performance: The Beta of the overseas whole vehicle market is superior to that of the domestic market. In 1Q26, domestic auto sales decreased by 17% YoY, while overseas auto sales increased by 42% YoY. Joyson derives 75% of its revenue from overseas markets and is closely bound to core automakers including Volkswagen, BMW, Mercedes-Benz, major North American customers, Toyota, and Hyundai. The company’s global customer base and supply chain structure directly benefit from the recovery and structural upgrading of the global auto market. Currently, the level of intelligence and the penetration rate of NEVs overseas are relatively low: While China’s L2+ penetration exceeds 70%, the global average is only ~30%; similarly, NEV penetration stands at ~53% in China vs. ~24% globally. The popularization of intelligence and NEVs has become the main layout direction of major automakers in recent years. Domestic independent brands are seeking overseas expansion, and the company’s global production capacity and high-standard products can help them go global, thereby enabling Joyson to benefit from this process.