Core Viewpoint - Yantai Aidi Investment Co., Ltd. has been established with a registered capital of 100 million yuan, focusing on investment activities and management services [1] Company Summary - The newly established company is fully owned by Aidi Precision (603638) [1] - The business scope includes investment with self-owned funds, enterprise management, engineering management services, and conference and exhibition services [1]

Financial Performance - The company reported a total revenue of 1.569 billion yuan for the first half of 2025, representing a year-on-year increase of 13.15% [1] - The net profit attributable to shareholders was 207 million yuan, up 5.34% year-on-year [1] - In Q2 2025, total revenue was 798 million yuan, a 5.84% increase year-on-year, while net profit decreased by 3.04% to 105 million yuan [1] - The gross margin was 27.52%, down 2.64% year-on-year, and the net margin was 13.24%, down 6.57% year-on-year [1] - The company’s earnings per share (EPS) increased by 4.17% to 0.25 yuan [1] Financial Ratios and Metrics - The company's accounts receivable accounted for 305.43% of the net profit, indicating a significant amount of receivables relative to profit [1][3] - The total expenses (selling, administrative, and financial) amounted to 120 million yuan, representing 7.65% of revenue, an increase of 5.14% year-on-year [1] - The company’s return on invested capital (ROIC) was 7.56%, with a historical median ROIC of 15.41% since its listing [1][2] Cash Flow and Debt Situation - The cash flow situation is concerning, with cash and cash equivalents to current liabilities at only 74.06% [3] - The interest-bearing debt ratio reached 27.38%, and the total interest-bearing debt to the average operating cash flow over the past three years was 17.24% [3] Shareholder Information - The largest fund holding in the company is the Debon Minyu Progress Quantitative Mixed A fund, which holds 178,500 shares and has not changed its position [4] - The fund's current scale is 57 million yuan, with a net value of 1.294 as of August 29, showing a 3.59% increase from the previous trading day and a 56.05% increase over the past year [4]

Core Viewpoint - The document outlines the fundraising management measures of Yantai Eddie Precision Machinery Co., Ltd, emphasizing the importance of safeguarding investor rights and ensuring the proper use of raised funds in accordance with legal regulations and company commitments [1][2]. Group 1: Fundraising Overview - Fundraising refers to the capital raised through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for equity incentive plans [1]. - The company must use the raised funds prudently and ensure that their use aligns with the commitments made in the issuance application documents [1][2]. Group 2: Fund Management and Usage - The board of directors is responsible for formulating detailed plans for the use of raised funds, ensuring transparency and compliance with regulations [2][3]. - The company must establish special accounts for the raised funds, which should be managed centrally and not exceed the number of investment projects [4][5]. - A tripartite supervision agreement must be signed with the underwriter and the commercial bank within one month of the funds being in place, detailing the management and withdrawal conditions [5][6]. Group 3: Fund Usage Restrictions - Raised funds must be used strictly for the intended projects and cannot be diverted for high-risk investments or for the benefit of related parties [7][8]. - Any changes in the use of raised funds or the investment projects must be approved by the board and disclosed to shareholders [10][11]. Group 4: Oversight and Reporting - The company must maintain detailed records of the usage of raised funds and conduct regular audits to ensure compliance with the established management measures [20][21]. - Any discrepancies between the actual usage of funds and the disclosed plans must be reported, and adjustments to the investment plans should be made if necessary [21][22]. Group 5: Handling of Excess Funds - Excess funds raised beyond the planned amount should be allocated to ongoing or new projects, or for share buybacks, with clear disclosure of the usage plan [38][39]. - The company must ensure that any temporary use of excess funds for cash management or working capital does not affect the normal progress of investment projects [39].

Core Viewpoint - The document outlines the external investment management system of Yantai Eddie Precision Machinery Co., Ltd, aiming to standardize investment behavior, enhance investment efficiency, and mitigate risks while maximizing the time value of funds [1][2]. Group 1: General Principles - The external investment is defined as the company's activities to invest monetary funds, equity, or assessed physical or intangible assets for future returns [1]. - The investment management should align with the company's development strategy, rationally allocate resources, and create good economic benefits [2]. Group 2: Approval Authority - The company implements a professional management and hierarchical approval system for external investments, with the shareholders' meeting and board of directors as decision-making bodies [2][3]. - The approval process must adhere to national laws, regulations, and the company's articles of association [2]. Group 3: Organizational Management - The board of directors and the president's office are responsible for decision-making regarding external investments, with the president being the main responsible person for project evaluation and suggestions [3][4]. - The finance department manages the financial aspects of external investments, while the administrative department handles fixed asset investments [3][4]. Group 4: Decision Management - Short-term investment decisions involve pre-selection of investment opportunities by the president's office, with the finance department providing cash flow status [4][5]. - Long-term investment projects require preliminary evaluation, feasibility studies, and approval from the board of directors [6][7]. Group 5: Transfer and Recovery of Investments - The company can recover investments under specific circumstances, such as project termination or bankruptcy [8][9]. - Investment transfers must comply with the relevant laws and regulations, following the same approval process as the initial investment [8][9]. Group 6: Personnel Management - For joint ventures, the company appoints directors and management personnel to oversee operations and decision-making [9]. - Appointed personnel must fulfill their responsibilities according to the company's interests and report on investment conditions [9]. Group 7: Financial Management and Auditing - The finance department is responsible for comprehensive financial records of external investments, ensuring compliance with accounting standards [10][11]. - Annual checks on long-term and short-term investments are mandated, along with regular audits of subsidiaries [10][11]. Group 8: Reporting and Disclosure - The company must fulfill information disclosure obligations according to laws and regulations [11]. - Subsidiaries are required to adhere to the company's information disclosure management system [11].

General Principles - The management system for related party transactions aims to ensure fairness, justice, and transparency in transactions between the company and related parties, protecting the interests of the company and its shareholders, especially minority investors [2] - Related party transactions are defined as matters involving the transfer of resources or obligations between the company or its subsidiaries and related parties [2] Scope of Related Parties and Transactions - Related parties include both legal entities and natural persons that have a special relationship with the company, which may lead to biased interests [3] - The types of related party transactions include but are not limited to asset purchases or sales, external investments, financial assistance, guarantees, leasing, management contracts, donations, debt restructuring, R&D project transfers, licensing agreements, and purchasing raw materials [5][6] Pricing and Management of Related Transactions - Related party transactions should follow pricing principles such as national pricing, market pricing, and negotiated pricing, with a fallback to cost plus reasonable profit if no other pricing is available [4] - The financial department is responsible for tracking market price and cost changes related to these transactions and reporting to the board [7] Procedures and Disclosure of Related Transactions - Transactions exceeding 3 million RMB with related legal entities or 300,000 RMB with related natural persons must be submitted to the board for approval and disclosed promptly [5] - The company must hire qualified intermediaries to evaluate or audit transactions that require disclosure, ensuring transparency and compliance with regulations [6] Board and Shareholder Meeting Procedures - Related directors must abstain from voting on related party transactions, and the board meeting must be attended by a majority of non-related directors to make decisions [11][12] - Related shareholders must also abstain from voting, ensuring that decisions are made in the best interest of the company and its shareholders [12] Record Keeping and Amendments - Records of related party transaction decisions and resolutions must be maintained for at least 10 years [14] - The management system can be amended by the board and must be approved by the shareholders' meeting [14]

Core Points - The document outlines the independent director working system of Yantai Eddie Precision Machinery Co., Ltd, aiming to enhance corporate governance and ensure independent directors operate without conflicts of interest [2][3][4]. Group 1: General Principles - The independent director is defined as a board member who does not hold any other position within the company and has no direct or indirect interests that could affect their independent judgment [2]. - The number of independent directors must be at least one-third of the total board members, including at least one accounting professional [3]. Group 2: Qualifications and Appointment - Independent directors must maintain independence and cannot be individuals with certain relationships or interests in the company, such as being a major shareholder or having significant business dealings with the company [5][6]. - Candidates for independent director positions must have relevant experience, good personal character, and meet specific legal and regulatory requirements [6][8]. Group 3: Responsibilities and Powers - Independent directors are responsible for participating in board decisions, supervising potential conflicts of interest, and providing professional advice to enhance decision-making [17][18]. - They have special powers, including hiring external consultants, proposing meetings, and expressing independent opinions on matters that may harm the company or minority shareholders [18][19]. Group 4: Work Conditions and Support - The company must provide necessary working conditions and support for independent directors, ensuring they have access to relevant information and resources [29][30]. - Independent directors are entitled to a reasonable allowance, which must be approved by the board and disclosed in the annual report [34][36].

General Provisions - The company is established as a joint-stock limited company in accordance with the Company Law and other relevant regulations [1] - The company was approved by the China Securities Regulatory Commission for its initial public offering of 44 million shares on December 23, 2016, and was listed on the Shanghai Stock Exchange on January 20, 2017 [1] - The registered capital of the company is RMB 831.088208 million [2] Business Objectives and Scope - The company's business objective is to rely on advanced production technology to produce high-quality products that meet market demand, achieving international advanced quality standards and satisfactory economic and social benefits [3] - The business scope includes manufacturing and sales of construction machinery, hydraulic machinery, metal tools, industrial robots, and various technical services [3][4] Shares - The company issues shares in the form of stocks, including common and preferred shares, with a total of 831.088208 million shares, all of which are common shares [6] - The shares are issued based on principles of openness, fairness, and justice, ensuring equal rights for each share of the same type [6] Shareholder Rights and Obligations - Shareholders enjoy rights according to the type of shares held, including the right to dividends, participation in shareholder meetings, and the right to supervise the company's operations [12] - Shareholders holding more than 5% of voting shares must report any pledging of their shares to the company [15] Shareholder Meetings - The company holds annual and temporary shareholder meetings, with the annual meeting held once a year and temporary meetings called under specific circumstances [42][43] - The board of directors is responsible for convening shareholder meetings, and independent directors can propose temporary meetings [46][47] Decision-Making and Voting - Major decisions, such as capital increases, mergers, and significant asset transactions, require approval from the shareholders' meeting [17][18] - Voting at shareholder meetings must follow specific procedures, and proposals must be clearly stated in the meeting notice [52][53]

Core Points - The document outlines the rules governing the board of directors of Yantai Aidi Precision Machinery Co., Ltd, aiming to clarify responsibilities, decision-making processes, and operational standards [2][25]. Group 1: General Provisions - The rules are established to ensure the board of directors operates effectively and in compliance with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China [2]. - The board is responsible to the shareholders and consists of 9 directors, including 3 independent directors and 1 employee representative [2][3]. Group 2: Board Powers and Responsibilities - The board has the authority to convene shareholder meetings, execute resolutions, and determine the company's operational plans and investment strategies [2]. - It is responsible for formulating profit distribution plans, managing capital changes, and overseeing significant transactions such as mergers and acquisitions [2][3]. Group 3: Board Structure - The board elects a chairman who presides over meetings and ensures the execution of board resolutions [4][5]. - A board secretary is appointed to manage meeting preparations, documentation, and information disclosure [5][6]. Group 4: Meeting Procedures - Board meetings can be regular or temporary, with specific conditions under which temporary meetings must be convened [11][12]. - Notices for meetings must be sent in advance, detailing the agenda and necessary materials for discussion [13][14]. Group 5: Voting and Decision-Making - A quorum for meetings requires the presence of more than half of the directors, and decisions are made based on majority votes [15][16]. - Proposals must be clearly defined and submitted in advance, with provisions for independent directors to express their opinions on personnel matters [19][20]. Group 6: Record Keeping and Compliance - Detailed records of meetings, including attendance and voting results, must be maintained for a minimum of ten years [22][23]. - The board is required to ensure compliance with laws and regulations, and any violations must be reported to the relevant authorities [24][25].

General Provisions - The rules are established to standardize company behavior and ensure shareholders can exercise their rights according to relevant laws and regulations [1][2] - The company must strictly follow legal and regulatory requirements when convening shareholder meetings [1][2] Shareholder Meeting Authority - The shareholder meeting is the company's authority body, responsible for electing directors, approving major transactions, and other significant decisions [1][3] - Specific powers include approving mergers, asset sales exceeding 30% of total assets, and related party transactions over 30 million RMB [1][2][3] Related Party Transactions - Related party transactions must be approved by the shareholder meeting if they exceed certain thresholds, including guarantees over 10% of net assets [2][3] - Shareholders with a conflict of interest must abstain from voting on related party transactions [21][22] Meeting Types and Notifications - The company must hold an annual shareholder meeting within six months after the end of the fiscal year and can hold temporary meetings as needed [4][5] - Notifications for meetings must include time, location, agenda, and rights of shareholders to attend and vote [11][12] Voting and Resolutions - Resolutions can be ordinary or special, with ordinary resolutions requiring a simple majority and special resolutions requiring two-thirds approval [46][48] - Voting can be conducted in person or via electronic means, ensuring accessibility for all shareholders [53][62] Meeting Procedures - The meeting must be conducted in an orderly manner, with provisions for addressing disruptions and ensuring all shareholders can participate [26][27] - Minutes of the meeting must be recorded, detailing attendance, discussions, and voting outcomes [44][45] Amendments and Compliance - The rules may be amended in response to changes in laws or company bylaws, requiring a shareholder meeting for approval [73][74] - The company must ensure compliance with all relevant regulations and disclose information as required [75][76]

Core Viewpoint - Eddie Precision (603638) announced that it will hold its first extraordinary general meeting of shareholders on September 19, 2025, to review multiple proposals, including the proposal to abolish the supervisory board [1] Group 1 - The extraordinary general meeting is scheduled for September 19, 2025 [1] - The agenda includes the proposal to cancel the supervisory board [1]