Deeply involved in Saudi Arabia's "2030 Vision": ZHIDA TECH (02650) wins a big order worth over 100 million yuan for charging piles!

Recently, ZHIDA TECH (02650) announced that it has signed a multi-million dollar deal with its local partner Saudi Controls Ltd in Saudi Arabia for charging piles. The two sides will engage in deep cooperation over the next 5 years, with ZHIDA TECH supplying a variety of AC and DC charging pile products and fully establishing a manufacturing base, providing high-quality, localized electric vehicle charging products and services to the entire Middle Eastern market. It is reported that ZHIDA TECH will complete the production equipment by December 2025 and ship it to Riyadh, with plans to start production in the first quarter of 2026. The construction of this new factory signifies that ZHIDA TECH's strategic layout in Saudi Arabia will further deepen. In addition, ZHIDA TECH not only focuses on the Saudi market, but also plans to expand its business to other Middle Eastern countries such as the UAE, Qatar, and Kuwait in the coming years. This announcement, seemingly just an ordinary cross-border order, is actually a precise positioning by ZHIDA TECH at the turning point of the era, indicating that it has obtained a "first-class ticket" to the trillion-dollar electrication market in the Middle East. Golden track: The eve of the outbreak from zero to one Low penetration rate VS high buying intention Currently, the electric vehicle penetration rate in Saudi Arabia is less than 1% - but this vast desert is not barren, but a "silent volcano" ready to erupt at any time! A recent survey by PwC revealed a shocking trend: as many as 40% of the Saudi population expressed their intention to purchase electric vehicles in the next three to four years. This means that the market is not devoid of demand, but is on the eve of an explosion. We can imagine the huge market increment from the current 1% to the intended 40%. Any company involved in it will reap the benefits of this era. National will: The unquestionable "2030 Vision" Saudi Arabia's transformation is not just a market behavior, but a "self-revolution" driven by top-level design of the country, which cannot afford to fail. The "2030 Vision" is its core strategic blueprint, with the government setting clear goals: by 2030, 30% of vehicles in the capital Riyadh will be electrified, and more than 5,000 fast charging stations will be built, achieving net zero emissions by 2060. Furthermore, according to the plan, the Saudi government is planning to invest approximately $39 billion through its Public Investment Fund (PIF) by 2030 to build a complete electric vehicle industry chain from raw materials, vehicle manufacturing to charging infrastructure. This is a national strategic commitment with strong execution rigidity, backed by the entire national machinery pushing, including policy bias, huge subsidies, and infrastructure construction. The blueprint is set, the track is marked, and it is only waiting for participants to enter at full speed. Deep binding: More than just supply, but also "teaching people how to fish" and ecological positioning If it were just selling a batch of charging piles to Saudi Arabia, it would be a "one-time" trade deal. But ZHIDA TECH's layout is clearly more profound and strategic. High barriers to technology output and exclusivity The announcement reveals that ZHIDA TECH is not only providing finished products to its partners, but also establishing a high-quality, localized manufacturing base. This means that ZHIDA TECH is exporting a complete manufacturing system and quality standards to Saudi Arabia, which may include a complete production line, testing systems, and digital management platforms. This deep technical binding establishes a high competitive barrier - it is far from comparable to "one-time sales", but a deep cooperation mode of "teaching people how to fish". In the future, the "genes" of locally produced chargers in Saudi Arabia will be defined by ZHIDA TECH. Once the Saudi partners accept this system, future technological upgrades, component supplies, and system maintenance will highly depend on ZHIDA TECH, creating strong business stickiness and exclusivity. Five-year orders and sustainable income, a victory of long-termism A five-year long-term order clearly indicates the high recognition and reliance of customers on ZHIDA TECH's solutions and product quality. This provides ZHIDA TECH with stable and predictable cash flow for the next five years, and more importantly, it opens a door to continuous revenue growth. In the long-term cooperation, ZHIDA TECH can obtain continuous service revenue through software upgrades, operation and maintenance services, spare parts supply, etc., upgrading its business model from "hardware sales" to a comprehensive ecological model of "hardware + software + services", reshaping its valuation logic accordingly. Seizing the core ecological position, becoming an industrial cornerstone By cooperating with the local strong Saudi Controls, ZHIDA TECH has occupied a core position in the charging infrastructure supply chain in the nascent stage of the Saudi electric vehicle industry. When the entire industry chain enters the explosive period, vehicle manufacturers need supporting charging networks, consumers rely on charging services, and the government evaluates the construction progress, as an early and deep participant, ZHIDA TECH will become an indispensable cornerstone. The dividends brought by this "early positioning" will be difficult for latecomers to reach. A win-win situation of social responsibility and economic benefits ZHIDA TECH's localization production strategy perfectly meets the requirement of industry chain localization in the "2030 Vision". The establishment of the new factory will create a large number of manufacturing jobs locally. It is estimated that the Saudi electric vehicle ecosystem is expected to contribute 2% to non-oil GDP and create over 100,000 new jobs. ZHIDA TECH is not only a commercial participant, but also a co-builder of Saudi national strategy. This role enables it to more deeply understand local policies and requirements, win the trust of government and society, and lay a solid foundation for long-term cultivation. Top customers: Selling the most desired "technology toys" to the "wealthy" Saudi Arabia and the Middle Eastern market have the most top purchasing power groups in the world. For them, the logic of consumer decision-making is completely different from price-sensitive markets. Market base of "no money shortage" Saudi Arabia has a high GDP per capita, and consumers are extremely insensitive to prices, but they pursue brands, technology sense, and fresh experiences to the extreme. Through cooperation with Saudi Controls, ZHIDA TECH's products and brands will directly reach this group of luxury-seeking "trendy" customers, enjoying the best consumption dividends. Here, electric vehicles and charging piles are no longer just functional devices, but components of a high-end, intelligent lifestyle. Getting rid of the "oil smell" and embracing technology fashion The new generation of Saudi elites also yearn to get rid of the traditional "oil" label and embrace a technology-driven lifestyle representing the future and environmental protection. Driving smart electric vehicles and using locally manufactured advanced charging equipment are becoming a new fashion trend and expression of patriotism. If ZHIDA TECH's products can successfully link with the "glory" and technological forefront image of "Saudi manufacturing", it will establish high customer loyalty and brand premium. In simple terms, what ZHIDA TECH is doing is selling the most interesting "new tech toys" to the world's most "wealthy" consumers, creating an ideal market model that all companies crave. "Oil empire" self-revolution: Investing in the most certain future "Revolutionizing their own fate" Saudi Arabia is more aware than any other country that a single economic model based on oil is not sustainable. Therefore, its determination and urgency in promoting electrification transformation are unprecedented and a fight for survival that cannot be lost. This is not a luxury, but a "life and death battle" concerning the country's fate for the next few decades. Investing in companies like ZHIDA TECH that help achieve this transformation is an investment in the certainty of this national-level "self-revolution". "Irrigating the flowers of new energy with oil profits" Saudi Arabia's transformation has an unparalleled capital advantage compared to any other country - they are using their abundant traditional energy income to provide huge subsidies, perfect infrastructure, and incubate local brands in the new energy vehicle industry. This means that this emerging market is driven by the profits of the "old energy", with its development momentum far surpassing other markets relying on fiscal subsidies. This is a perfect loop where the "past" funds the "future". Conclusion: Layout in the present, winning in the future In summary, this multi-million dollar order by ZHIDA TECH is worth far more than the contract amount itself. It is the result of the resonance of the three factors of timing (national strategy), location (market potential), and people (deep cooperation). ZHIDA TECH, with its technology output and local production as the spearhead, not only seizes the market advantage but also deeply integrates into Saudi Arabia's national development context, defines industry standards, and locks in long-term interests. For the capital market, ZHIDA TECH's layout greatly enhances its growth ceiling and valuation imagination. The company's business transitions from the domestic market to the global stage, with the track upgrading from charging equipment manufacturing to a platform company of "new energy going global + standard output". From now on, ZHIDA TECH enters the Saudi and Middle Eastern new energy vehicle market in the best posture, taking the lead in laying out a trillion-dollar new era of electrification initiated by the oil empire itself. When electric vehicles in Saudi Arabia hit the streets, each one may shine with the brilliance of ZHIDA TECH.