The Zhitong Finance App learned that the market has long anchored Yuanzheng Technology (02488) as an “automobile maintenance equipment manufacturer”, and the valuation follows traditional manufacturing logic. Based on the 2026 mid-term results, the company has formed three major business patterns of “equipment as the entrance, software as the foundation, and AI and service as the growth engine”. It is steadily upgrading to an AI service provider in the automotive industry, and its corporate value is fundamentally changing.
Equipment business: terminal portal with a global layout
Diagnostic equipment is a key hardware carrier and business distribution portal. By the end of June 2026, Yuanzheng equipment had connected more than 420 million vehicles worldwide, and nearly 3.9 million terminals were active, covering 234 countries and regions, and was in the first tier of the global industry. The equipment business revenue for the first half of 2026 was about 900 million yuan, an increase of 3.1% over the previous year. Unlike the one-time sales logic of traditional hardware vendors, stock terminals are physical touchpoints for recurring revenue from software business, AI, and services. The larger the scale, the more stable the penetration base of value-added business.
Software business: the core foundation for stabilizing recurring revenue
The software business is a mature chassis for recurring revenue. The revenue comes from customers paying upgrade fees for adapting new model agreements, iterative feature upgrades, and advanced diagnostic modules. The software business revenue for the first half of 2026 was about 120 million yuan, up 67.9% year on year, accounting for 11% of total revenue. Compared to the characteristics of the hardware business that confirms revenue at once and relies on new shipments, the software business has continuous revenue, stable cash flow, high gross margin, and strong customer stickiness, which is the core support for the company's transformation.
AI and services: the second growth curve for rapid growth
AI and services are the fastest-growing business segment in recent years, including AI agents, remote diagnosis, and vehicle data. It provides value-added services to customers in the automotive industry, such as repair shops, car owners, parts dealers, OEMs, insurance companies, used car dealers, auto finance institutions, environmental inspection agencies, and vehicle management offices. In the first half of 2026, about 1.666 million orders were issued for remote diagnosis, with revenue of 16.1 million yuan, an increase of 45.7% over the previous year; the automotive data business revenue was 15.4 million yuan, an increase of 93.6% over the previous year, leading all sectors in growth. The launch of the “Xiaozheng AI Smart Device” embeds AI into the entire maintenance process and promotes the expansion of the business from “selling equipment” to “selling services.”
Yuanzheng Technology has built three layers of differentiated competitive barriers: one is an entry barrier for stock terminals, and large-scale global inventory terminals form a unique service and data collection network, making it difficult for new entrants to replicate in the short term; the second is a closed-loop data barrier. By the end of June 2026, the cumulative number of diagnostic reports exceeded 2.3 billion, and massive data continues to flow back and feed back the model iteration, forming a positive growth flywheel of “installed capacity growth → data accumulation → service value-added → driving more installations”; the third is a global channel barrier, where network dealers covering the world can reuse and push value-added Business, drastically reducing the market Expansion costs.
In the past, the market was priced by pure hardware companies, and PE remained around 7 times higher for a long time, significantly lower than comparable companies in software, AI, and services. As the share of software business revenue steadily increases, AI and services continue to expand, and the company's recurring revenue structure continues to be optimized. The valuation logic is gradually shifting from hardware manufacturer PE to a composite valuation system of “equipment business+ software business+AI and service” — equipment supports the basic performance market, software contributes to profit stability, AI and services release long-term growth elasticity, and the company has plenty of room for long-term valuation.
Looking ahead to the next stage, Yuanzheng Technology will anchor AI service positions in the automotive industry, deepen collaboration between the three major businesses, accelerate the penetration of AI service terminals, iterate AI end-side models based on terminal and data advantages, consolidate competitive barriers, and have clear room for long-term value improvement.