Deeply bound to Saudi Arabia's "2030 Vision": ZHIDA TECH (02650) won a large order of over one hundred million yuan for charging piles!

Recently, ZHIDA TECH (02650) announced that it has signed a large contract worth over a hundred million yuan with its Saudi local partner, Saudi Controls Ltd, for electric charging piles. The two sides will engage in deep cooperation in the next 5 years, with ZHIDA TECH supplying various AC and DC charging pile products and establishing a comprehensive manufacturing base to provide high-quality, localized electric vehicle charging products and services for the entire Middle East market. It is reported that ZHIDA TECH will complete the production equipment by December 2025 and transport it to Riyadh, with plans to start production in the first quarter of 2026. The construction of this new factory signifies a further deepening of ZHIDA TECH's strategic layout in Saudi Arabia. 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, although seemingly a normal cross-border order, is actually a precise positioning at a turning point in the era, declaring that ZHIDA TECH has obtained a "first-class ticket" to the trillion-dollar electricization market in the Middle East. Golden opportunity: The eve of explosive growth from zero to one Low penetration rate vs. high purchasing willingness Currently, the penetration rate of electric vehicles in Saudi Arabia is less than 1% - but this vast desert is not barren, but a "silent volcano" ready to erupt at any moment! A recent survey by PricewaterhouseCoopers 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 lacking in demand but is on the eve of an explosion. One can imagine the huge market increment from the current 1% status to an intention of 40%. Any company involved in it will benefit from this era's dividend. National will: Undeniable "2030 Vision" Saudi Arabia's transformation is not just a market action but a "self-revolution" driven by national top-level design that cannot fail. The "2030 Vision" is its core strategic blueprint, and the government has set clear goals: by 2030, 30% of vehicles in the capital Riyadh will be new energy-powered, and more than 5,000 fast charging piles will be built. By 2060, the goal is to achieve net zero emissions. Additionally, according to the plan, the Saudi government, through its Public Investment Fund (PIF), plans to invest approximately $39 billion by 2030 to create a complete electric vehicle industry chain from raw materials and vehicle manufacturing to charging infrastructure. This is a national-level strategic commitment with strong execution rigidity, driven by the entire national machinery, including policy bias, huge subsidies, and infrastructure construction. The blueprint is laid out, the track is set, and all that remains is for the participants to drive at full speed. Deep integration: Beyond supply, it's also about "teaching to fish" and ecosystem positioning If it were only about selling a batch of charging piles to Saudi Arabia, then it would be a "one-off" trade deal. But ZHIDA TECH's layout is clearly more profound and strategic. High barriers to technological output and exclusivity The announcement reveals that ZHIDA TECH is not just providing finished products to its partners but establishing a high-quality, localized manufacturing base. This means that ZHIDA TECH is exporting a complete manufacturing system and quality standards to Saudi Arabia, including a complete production line, testing systems, and digital management platforms. This deep technological binding establishes a high competitive barrier - it is far from comparable to "one-time sales"; instead, it is a "teaching to fish" deep cooperation model. In the future, the "genes" of charging equipment locally produced in Saudi Arabia will be defined by ZHIDA TECH. Once the Saudi partner accepts this system, subsequent technological upgrades, parts supply, and system maintenance will be highly dependent on ZHIDA TECH, creating strong business stickiness and exclusivity. A five-year order 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 the door to continuous revenue growth. In long-term cooperation, ZHIDA TECH can obtain sustained service income through software upgrades, operation and maintenance services, and spare parts supply. Its business model will evolve from "hardware sales" to a comprehensive ecosystem model of "hardware + software + services", reshaping its valuation logic. Seize the core ecological position and become the industry cornerstone By cooperating with the locally strong Saudi Controls, ZHIDA TECH has taken a core position in the supply chain of charging infrastructure in the Saudi Arabian electric vehicle industry's nascent stage. When the entire industry chain enters the explosive period, the OEMs need the supporting charging network, consumers rely on charging services, and the government checks 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. Win-win of social responsibility and economic benefits ZHIDA TECH's strategy of localized production perfectly fits the requirements of the "2030 Vision" for localizing the industrial chain. The establishment of the new factory will create a large number of manufacturing jobs in the local region. 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 business participant but also a co-builder of Saudi Arabia's national strategy. This role allows it to have a deeper understanding of local policies and demands, win the trust of the government and society, and lay a solid foundation for long-term cultivation. Top customer group: Selling what the "rich" desire most, "tech playthings" Saudi Arabia and the Middle East have the world's most elite purchasing power groups. For them, the logic of consumption decision-making is completely different from price-sensitive markets. Market foundation of "not lacking money" Saudi Arabia ranks among the top in per capita GDP, and consumers are extremely insensitive to prices but pursue brands, technology sense, and fresh experiences to the extreme. Through cooperation with Saudi Controls, ZHIDA TECH's products and brand will directly reach this group of "trendy" customers who pursue the ultimate experience, enjoying the best consumption dividends. Here, electric vehicles and charging piles are no longer just functional devices but represent components of a high-end, intelligent lifestyle. Conclusion: Layout in the present, win in the future In conclusion, ZHIDA TECH's billion-dollar order is worth far more than the contract amount itself. It is the result of a resonance of the three factors of timing (national strategy), location (market potential), and people (deep cooperation). By using technology output and localized production as a spear, ZHIDA TECH has not only seized the market's initiative but has also deeply integrated into Saudi Arabia's national development context, defined industry standards, and locked in long-term interests. For the capital market, ZHIDA TECH's layout greatly elevates its growth ceiling and valuation imagination. The company's business has shifted from domestic to global, and the race track has been upgraded from manufacturing charging equipment to a platform-type company for "new energy going global + standard output". From now on, ZHIDA TECH enters the Saudi and Middle Eastern new energy vehicle market at the best posture, primed for the trillion-dollar electric era opened by the oil empire. With Saudi Arabia's electric vehicles hitting the streets, each one may shine with the brilliance of ZHIDA TECH.