Research Express | Jiangsu Yunyi Electric Welcomes 38 Institutions Including Caitong Securities: Three Major Drivers Behind the 2025 Gross Profit Margin Improvement Revealed

On March 31, Jiangsu Yunyi Electrical Appliances Co., Ltd. (hereinafter referred to as “Yunyi Electrical Appliances”) received 38 institutional investors, including Caitong Securities, Oriental Fortune Securities, Fullgoal Fund, Citibank, etc., through a telephone conference. Liang Chao, Secretary to the Board of Directors, and Xia Yitong, Representative for Securities Affairs, held in-depth exchanges with the institutional investors on issues including the reasons for the 2025 gross margin improvement, overseas capacity planning, progress in core business, and the company’s 2026 strategic plan.

Basic information on the research

Core business highlights and future plans

2025 gross margin improvement: three-pronged drivers—scale effects, stronger procurement bargaining power, and cost reduction/efficiency improvement

The company said that the gross margin improvement in 2025 mainly resulted from three factors. First, the continued release of scale effects: the scale of core businesses such as wiper systems and semiconductor products grew steadily, effectively diluting unit fixed costs. Second, enhanced procurement bargaining power: as the business scale expanded, the company increased its say in the supply chain, and raw material procurement costs were effectively controlled. Third, deeper internal cost reduction and efficiency improvement: by comprehensively advancing lean management, the production processes and operational efficiency have been continuously optimized, and the company’s cost control capabilities have been further strengthened.

Overseas market layout: multiple regions with new placements; the Morocco factory plan is under advancement

In terms of overseas business, the company’s export core products include intelligent power control modules, nitrogen-oxygen sensors, intelligent wiper systems, etc. The company has already established a subsidiary in Malaysia and a marketing center in Slovenia. At the same time, it is actively advancing the Morocco investment and plant-building plan, laying the groundwork for improving penetration in overseas markets.

Clear growth logic for core business lines

• Wiper system business: In 2025, around the “volume and price rising together” strategy, the company promoted product upgrades from a single wiper arm and blade to a comprehensive upgrade to mechanical and electronic wiper systems. This not only increased the value per unit of each product, but also precisely matched customers’ high-quality requirements for product consistency and stability downstream.
• Semiconductor power device business: In 2025, the business achieved relatively rapid growth, with the core reason being continued breakthroughs in market share. Technologically, it adopts the internationally first-created “chemical etching method” to improve product performance and reliability. In production, it uses self-developed non-standard automated equipment to raise production levels and efficiency per employee, accelerating the pace of domestic substitution.
• Sensor sector: The product matrix continues to be refined. New products such as particulate matter sensors, PM2.5 sensors, preheating relays, and others are being advanced in R&D and customer docking according to plan, and related product fixed-location work is being carried out in an orderly manner.
• Nitrogen-oxygen sensor business: With relatively high profitability, the core advantages lie in deep technological barriers (achieving import substitution), vertical integration across the industrial chain (independent R&D and manufacturing of key components), and clear advantages in product cost performance.
• Connector business: While ensuring profitability, the company’s product prices have advantages over competitors, with outstanding cost performance. It has strong mold development capabilities, with a professional team of more than 100 people and 15 years of industry experience in total. It adopts a forward development process to ensure product consistency and stability.

Robotics business: customer sample submission has been initiated; axial flux motor R&D is underway

The company’s robotics business is progressing smoothly. It has already begun business docking with passenger vehicle customers. Leveraging key technological advantages such as automotive-grade controllers and encoders, the company has preliminarily completed the development of a rotating joint module product and initiated sample submission, while also participating in joint development of other robotics projects with customers. In terms of technical R&D, the company is working with universities to develop axial flux motors, striving to introduce module products equipped with this motor as soon as possible.

2026 outlook: intensify the core business + take a forward-looking layout of emerging industries

The company said that in 2026, it will continue to focus deeply on the intelligent automotive core electronics sector, further deepen vertical integration of the industrial chain, improve the self-manufacturing rate of core components, and expand its business footprint while improving the quality of its revenue structure—driving a continuous rise in profitability through scale effects. At the same time, it will rely on its core capabilities to take a forward-looking layout of emerging industries, seize the growth opportunities of artificial intelligence development, and leverage advantages in technology accumulation, technological homology, and automotive-grade manufacturing experience to focus on cutting-edge fields such as embodied intelligence, cultivating a second growth curve.

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