1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - China's past economic growth model relying on investment and exports is unstable, and it is necessary to switch to a consumption - driven model for sustainable development. The current actual consumption rate is at least 15% lower than the optimal level, and there is a large room for improvement [3][11][14][114]. - Since 2010, China's household consumption rate has shown an upward trend after hitting the bottom. Currently, the household consumption propensity dominates the trend of the household consumption rate. How to improve the household consumption propensity is the core focus of subsequent policies [3][25][44]. - The United States and Japan have successfully transformed into consumer - driven economies through different paths, providing valuable references for China. However, China faces problems such as premature population aging, relatively lagging urbanization, and relatively insufficient income growth, so the consumption transformation may be more difficult. It is estimated that China needs about 15 years to become a consumer - driven country [4][46][114][115]. - The core constraints on China's household consumption rate are the systematic pressure on the consumption propensity on the demand side and the structural imbalance between supply and demand of service consumption on the supply side. Policies should focus on multiple dimensions such as increasing property income, improving the social security system, optimizing the population structure, building a consumption culture, and increasing the supply of high - quality service consumption [5][75][116]. 3. Summary According to the Table of Contents 3.1.大国发展引擎转变：消费转型是中国持续发展的必经之路 - The structure of investment, exports, and consumption determines the medium - and long - term development quality of the economy. China's export - oriented and investment - driven models have limitations, while the consumption - driven model is more stable, long - lasting, and sustainable [11]. - China's final consumption expenditure as a percentage of GDP is lower than the global average, and the capital formation as a percentage of GDP is significantly higher than that of international mainstream economies, showing an obvious investment - driven characteristic [14][15]. - By constructing a dynamic analysis framework of the optimal and actual consumption rates, it is found that China's actual household consumption rate has been lower than the optimal level since 1990. After 2010, the consumption gap began to narrow, and there is still at least a 15% room for improvement [21]. - An increase in interest rates leads to a decrease in the optimal household consumption rate, indicating that the substitution effect dominates the consumption - savings decision in China, and a lower interest rate is conducive to the recovery of consumption [21]. 3.2.消费率演变三阶段：基于LMDI因子分解探寻低消费原因 - Since the reform and opening - up, China's household consumption rate has gone through three stages: an initial up - and - down stage from 1978 - 2000, a continuous decline stage from 2000 - 2010, and a recovery stage since 2010 [25]. - Using the LMDI model to decompose the change in the household consumption rate, it is found that the consumption propensity and primary distribution mainly dominate the long - term trend of China's household consumption rate. After 2005, the consumption propensity became the core variable explaining household consumption [32]. - In different stages, different factors affected the consumption rate. From 1978 - 2000, inflation risks and government policies led to a decline in the consumption rate; from 2000 - 2010, the substitution of external demand for domestic demand and the imbalance in primary distribution led to a continuous decline in the consumption rate; since 2010, the household consumption propensity has dominated the trend of the household consumption rate, and the COVID - 19 pandemic has had an impact on the consumption rate [35][41][44]. 3.3.美日转型启示录 3.3.1.美国经验：人口红利+消费信贷创新 - After World War II, the United States achieved an economic transformation from a production - and - export - driven model to a consumption - oriented society. This transformation required government intervention in multiple aspects [47]. - The release of the population dividend, the improvement of urbanization, and the continuous growth of disposable income provided a foundation for the expansion of domestic demand in the United States. The government also promoted the development of consumption through credit innovation and the improvement of the social security system [47][51]. 3.3.2.日本经验：国民收入倍增计划 - In the 1970s, Japan transformed from a production - oriented economy to a consumption - oriented economy under the pressure of external environment deterioration. Although Japan faced problems such as premature population aging, the "National Income Doubling Plan" increased residents' purchasing power, and the improvement of the social security system and financial services promoted consumption [53][57][66]. 3.3.3.中国启示：城镇化、收入增收仍有空间 - China faces problems such as premature population aging, relatively lagging urbanization, and relatively insufficient income growth compared with the United States and Japan during their transformation periods. There is still potential for urbanization and income growth in China [71]. 3.4.政策工具箱：多维消费驱动战略 3.4.1.提升财产性收入：从利息依赖到权益赋能 - China's labor compensation ratio is comparable to that of major global economies, but the property income structure shows an extreme differentiation of "interest dependence and equity absence", which suppresses the consumption propensity. Policies should focus on capital market reform to increase the proportion of equity dividends and activate property income [76][78]. 3.4.2.社保制度迭代：从普惠性覆盖到质量提升 - China's social security system has problems such as incomplete coverage and significant differences in pension levels between urban and rural areas, which restrict the release of consumption momentum. Future policies should focus on improving the inclusiveness and quality of the social security system [80][89]. 3.4.3.人口结构优化：释放短中长期消费潜力 - China's low fertility rate and increasing dependency ratio put pressure on consumption. Fertility support policies can directly increase consumption in the short term and release the consumption potential of the youth group in the long term. The silver economy also has great potential [95][100]. 3.4.4.观念革新：消费文化构建 - The formation of a consumption - oriented society requires the construction of a consumption culture. Currently, Chinese residents' consumption concepts are still relatively conservative, and policies should balance the traditional thrift concept and the demand for consumption - driven transformation [103][107]. 3.4.5.增加优质服务消费供给 - China's service consumption has problems such as a low proportion of service industry added value in GDP and a low proportion of service - related expenditures in total consumption. Policies should focus on expanding the opening - up of the service industry, building a cross - border service trade promotion system, and increasing the supply of high - quality service consumption [109][112]. 3.5.总结与展望 - China needs to switch to a consumption - driven growth model. The consumption transformation may be more difficult than that of the United States and Japan, and it is estimated to take about 15 years. - Future policies should focus on improving the household consumption propensity from four dimensions: income, population structure, social security, and cultural construction, and increase the supply of high - quality service consumption on the supply side [114][115][116].

Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [3][5]. Core Insights - The company is a leader in the smart measurement and testing industry, actively integrating "AI+" products across various sectors, including power, healthcare, and smart devices [1][3]. - The company achieved a revenue of 807 million yuan in 2024, representing a year-on-year growth of 20.55%, and a net profit of 138 million yuan, up 29.21% year-on-year [2]. - The company is focusing on product structure upgrades, which have positively impacted profitability, with gross and net profit margins improving to 46.25% and 17.14%, respectively [2]. Financial Performance - The company forecasts revenues of 1.12 billion yuan in 2025, 1.47 billion yuan in 2026, and 1.81 billion yuan in 2027, with corresponding net profits of 188 million yuan, 245 million yuan, and 307 million yuan [4][5]. - The projected growth rates for revenue and net profit are 38.88% and 36.17% for 2025, respectively [4]. - The company’s earnings per share are expected to be 1.00 yuan in 2025, increasing to 1.62 yuan by 2027 [4]. Product Development and Market Strategy - The company is actively developing AI-integrated products, such as the AI-7760 power quality analyzer and AI medical devices, which are expected to drive future growth [3]. - The establishment of a joint venture for AI glasses aims to enhance the company's strategic positioning in the smart device market [3].

Investment Rating - The report assigns a "Buy" rating for the company, indicating an expectation of stock price appreciation exceeding 15% over the next six months [5]. Core Insights - The company is a global leader in prestressed materials, with significant revenue growth anticipated in its core businesses of prestressed materials and concrete products for rail transit. In 2024, the revenue from prestressed materials is projected to be 2.425 billion yuan, a year-on-year increase of 6.03%, with a net profit of 174 million yuan, reflecting a substantial year-on-year growth of 55.93% [2][3]. - The company is also focusing on expanding its market share in high-value products, driven by the robust development of national infrastructure projects, which is expected to enhance profitability further [2]. - The company is exploring new applications for fine wire products, particularly in the robotics tendon business, leveraging its existing technology in prestressed materials. This project is currently in the early research and technical preparation stage [3]. Financial Summary - The company’s revenue is expected to grow from 3.054 billion yuan in 2024 to 4.886 billion yuan by 2027, representing a compound annual growth rate (CAGR) of approximately 13.46% [4]. - The net profit attributable to the parent company is forecasted to increase from 237 million yuan in 2024 to 525 million yuan in 2027, with a CAGR of 19.09% [4]. - The earnings per share (EPS) is projected to rise from 0.28 yuan in 2024 to 0.61 yuan in 2027, indicating strong growth potential [4]. Market Position and Future Outlook - The company is positioned to benefit from ongoing infrastructure investments, with the China National Railway Group planning to complete 590 billion yuan in infrastructure investments and 2,600 kilometers of new lines in 2025 [2]. - The company aims to maintain stable supply for existing high-speed rail and metro projects while actively exploring new market opportunities in regions such as Beijing-Tianjin-Hebei and various metro lines in Guangzhou and Shenzhen [2].

Investment Rating - The report maintains an "Outperform" rating for the industry [7] Core Insights - The report highlights the rapid growth of the "Guzi" economy, driven by multiple factors on both demand and supply sides, with a projected market size increase from 537 billion yuan in 2017 to 1689 billion yuan by 2024, reflecting a CAGR of 17.79% [3][21] - The demand for "Guzi" products is expected to benefit from the rise of emotional consumption and changing consumer attitudes, particularly among younger demographics [12][56] Summary by Sections 1. Emotional Consumption Rise and Market Outlook - The "Guzi" economy is positioned within the broader context of the expanding ACGN subculture, which includes animation, comics, games, and related merchandise [12] - The market for the broader "pan-second dimension" and related products is projected to grow from 221.2 billion yuan in 2017 to 597.7 billion yuan by 2024, with a CAGR of 15.26% [12][19] 2. Demand Side Analysis - The user base for "pan-second dimension" products in China is substantial, with an expected growth to 503 million users by 2024, indicating a strong willingness to purchase "Guzi" products [2][42] - Approximately 88.71% of anime/manga viewers express a willingness to buy "Guzi," with 81.78% having made purchases [45][50] - The average single purchase amount for "Guzi" products is 102 yuan, with consumers increasing their purchase frequency from 2.3 to 2.9 times per month [62][64] - The market penetration in lower-tier cities is still low, presenting opportunities for expansion due to the price advantages of "Guzi" products [68][72] 3. Supply Side Analysis - The "Guzi" economy's supply chain encompasses IP production, authorization, and product sales, with a notable rise in domestic IPs stimulating consumer interest [73][76] - The domestic IP authorization market is growing, with retail sales of authorized products expected to reach 1550.9 billion yuan by 2024, reflecting a CAGR of 11% [86][90] - The report notes that the sales of domestic IPs have surpassed those of Japanese IPs on platforms like Xianyu, indicating a shift in consumer preferences [80][81]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock's performance in the near term [5]. Core Insights - The company achieved a revenue growth of 11.6% year-on-year, reaching 25.9 billion yuan, and a net profit increase of 14.3% to 3.51 billion yuan for the fiscal year 2024/2025 [1][2]. - The brand's down jacket segment saw a revenue increase of 11% to 21.67 billion yuan, with the main brand, Bosideng, growing by 10.1% to 18.48 billion yuan [2]. - The company is focusing on enhancing operational efficiency through the expansion of its store network and improving single-store performance [3]. Financial Performance - The company reported a gross margin of 57.3%, a decrease of 2.3 percentage points year-on-year, while the net profit margin improved by 0.3 percentage points to 13.6% [3][4]. - The company’s inventory increased by 23.6% to 3.95 billion yuan, with a cash position of 4.18 billion yuan, indicating healthy cash flow [4]. - The company plans to achieve revenue growth of approximately 10% annually from FY2026 to FY2028, with projected revenues of 28.51 billion yuan, 31.46 billion yuan, and 34.77 billion yuan respectively [4]. Business Segments - The OEM processing management business grew by 26.4% to 3.37 billion yuan, while women's clothing and diversified apparel segments saw declines of 20.6% and growth of 2.8% respectively [2]. - The self-operated and wholesale channels for brand down jackets reported revenue increases of 5.2% and 24.3%, reaching 15.09 billion yuan and 5.72 billion yuan respectively [3]. Market Position - The company has expanded its retail store count by 253 to a total of 3,470 stores, with a net increase of 210 Bosideng brand stores [3]. - Online sales for brand down jackets grew by 9.4% to 7.48 billion yuan, accounting for 34.5% of total sales [3].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][5]. Core Insights - The company is focusing on dry process technology, which is expected to replace traditional wet processes in battery manufacturing, leading to significant cost savings and efficiency improvements [2][4]. - The company has established a joint venture, Qingyan Nako, to enhance its capabilities in dry electrode equipment, which is becoming a core component in future battery manufacturing [2][34]. - The performance of the company's roller press machines is leading the market, with strong partnerships with major new energy companies enhancing its competitive position [2][4]. Financial Projections - Expected revenues for 2025, 2026, and 2027 are projected to be 1.58 billion, 2.37 billion, and 3.56 billion RMB respectively, with net profits of 244 million, 362 million, and 544 million RMB [2][4]. - The company anticipates a revenue growth rate of 50% for 2025 and 2026, and 50.46% for 2027 [4]. Company Overview - The company specializes in high-precision lithium battery roller press equipment, with a focus on dry process technology for electrode production [16][25]. - It has received various accolades, including being recognized as a "National High-tech Enterprise" and a "Specialized and Innovative Small Giant" [16]. Market Trends - The dry process technology is gaining traction due to its compatibility with solid-state batteries, which are expected to see significant growth in the coming years [2][69]. - The overall lithium battery market is projected to grow, with a notable increase in demand for roller press equipment as manufacturers shift towards dry processing methods [2][66].

Group 1: Demand and Economic Challenges - Total demand weakness has been emphasized as a significant challenge for China's economy, particularly in the context of insufficient domestic demand[2] - The 2024 Central Economic Work Conference highlighted the importance of addressing demand insufficiency to facilitate industrial upgrading[4] Group 2: Industrial Upgrading Dynamics - Industrial upgrading can be quantitatively described by categorizing manufacturing into high-growth and low-growth groups based on export structure changes[2] - High-growth groups have consistently expanded domestically faster than low-growth groups, but since 2021, their export growth has lagged behind that of low-growth groups[8] - The quality of industrial upgrading is measured by the ratio of export delivery value to operating income, which has shown a declining trend since 2021, indicating a slowdown in upgrading quality[8] Group 3: Profitability and Investment Trends - Before 2021, higher profitability in industries correlated with faster fixed asset investment, but this correlation weakened post-2021[8] - Employee salary growth has also slowed since 2021, reflecting broader economic challenges and demand issues[8] Group 4: Future Outlook - If demand insufficiency is addressed, the main themes of China's economic development will likely revert to industrial upgrading, high-end industrialization, and rising household incomes[4] - The capital market is expected to experience a long-term bull market driven by technological innovation and consumption upgrades once demand issues are resolved[4]

Report Overview - The report presents the top ten convertible bonds for July 2025, along with an analysis of the issuing companies [1][2][11] Company Summaries 1. Zhongte Convertible Bond (Zhongte Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 109.399 yuan; Conversion premium rate: 108.66%; PE - TTM of the underlying stock: 11.5 [5][11] - Company is a global leader in special steel manufacturing with a production capacity of about 20 million tons. It has a complete industrial chain and multiple production bases [11][12] - In 2024, revenue was 109.203 billion yuan (down 4.22% YoY), net profit attributable to shareholders was 5.126 billion yuan (down 10.41% YoY). In Q1 2025, revenue was 26.84 billion yuan (down 5.59% YoY), net profit attributable to shareholders was 1.384 billion yuan (up 1.76% YoY) [11] - Company highlights: largest variety - specification range, leading cost - control, and potential expansion through asset injection [12] 2. Shanlu Convertible Bond (Shanlu Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 113.766 yuan; Conversion premium rate: 50.91%; PE - TTM of the underlying stock: 3.9 [5][20] - Company focuses on road and bridge construction and maintenance, with a comprehensive business system [20] - In 2024, revenue was 71.348 billion yuan (down 2.3% YoY), net profit attributable to shareholders was 2.322 billion yuan (up 1.47% YoY). In Q1 2025, revenue was 9.764 billion yuan (up 1.95% YoY), net profit attributable to shareholders was 0.249 billion yuan (up 1.89% YoY) [20] - Company highlights: state - owned background, potential in debt - resolution, local infrastructure opportunities, and overseas expansion [21] 3. Jintong Convertible Bond (Jintong Zhuanzhai) - Bond Rating: AA+; 6 - month - end closing price: 128.025 yuan; Conversion premium rate: 5.74%; PE - TTM of the underlying stock: 20.7 [5][31] - Company engages in non - ferrous metal processing, providing materials for emerging industries [31] - In 2024, revenue was 124.161 billion yuan (up 12.36% YoY), net profit attributable to shareholders was 0.462 billion yuan (down 12.29% YoY). In Q1 2025, revenue was 27.285 billion yuan (up 9.89% YoY), net profit attributable to shareholders was 0.151 billion yuan (up 38.55% YoY) [31] - Company highlights: rebound in copper processing, growth in rare - earth permanent magnets, and expansion in electromagnetic flat wire business [32] 4. Aima Convertible Bond (Aima Zhuanzhai) - Bond Rating: AA; 6 - month - end closing price: 123.919 yuan; Conversion premium rate: 37.61%; PE - TTM of the underlying stock: 14.1 [5][40] - Company is a leading player in the electric two - wheeler industry [40] - In 2024, revenue was 21.606 billion yuan (up 2.71% YoY), net profit attributable to shareholders was 1.988 billion yuan (up 5.68% YoY). In Q1 2025, revenue was 6.232 billion yuan (up 25.82% YoY), net profit attributable to shareholders was 0.605 billion yuan (up 25.12% YoY) [40] - Company highlights: subsidy - driven demand, new national standard benefits, and potential margin improvement [41] 5. Xingye Convertible Bond (Xingye Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 124.495 yuan; Conversion premium rate: 13.03%; PE - TTM of the underlying stock: 6.4 [5][52] - Company is a large - scale joint - stock commercial bank with multiple financial licenses [52] - In 2024, revenue was 212.226 billion yuan (up 0.66% YoY), net profit attributable to shareholders was 77.205 billion yuan (up 0.12% YoY). In Q1 2025, revenue was 55.683 billion yuan (down 3.58% YoY), net profit attributable to shareholders was 23.796 billion yuan (down 2.22% YoY) [52] - Company highlights: stable growth in net interest income, stable asset quality, and expanding scale [53] 6. Youfa Convertible Bond (Youfa Zhuanzhai) - Bond Rating: AA; 6 - month - end closing price: 126.782 yuan; Conversion premium rate: 6.47%; PE - TTM of the underlying stock: 14.7 [5][64] - Company is the largest welded steel pipe manufacturer in China [64] - In 2024, revenue was 54.822 billion yuan (down 10.01% YoY), net profit attributable to shareholders was 0.425 billion yuan (down 25.46% YoY). In Q1 2025, revenue was 11.402 billion yuan (up 6.06% YoY), net profit attributable to shareholders was 0.133 billion yuan (up 9680.17% YoY) [64] - Company highlights: national layout, overseas market expansion, and high dividend policy [65] 7. Chongyin Convertible Bond (Chongyin Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 125.956 yuan; Conversion premium rate: 12.15%; PE - TTM of the underlying stock: 7.3 [5][77] - Company is a regional joint - stock commercial bank in the upper reaches of the Yangtze River [77] - In 2024, revenue was 13.679 billion yuan (up 3.54% YoY), net profit attributable to shareholders was 5.117 billion yuan (up 3.8% YoY). In Q1 2025, revenue was 3.581 billion yuan (up 5.3% YoY), net profit attributable to shareholders was 1.624 billion yuan (up 5.33% YoY) [77] - Company highlights: regional economic development opportunities, asset scale growth, and strategic risk management [78] 8. Baidian Convertible Bond (Baidian Zhuanzhai) - Bond Rating: AA; 6 - month - end closing price: 131.325 yuan; Conversion premium rate: 2.85%; PE - TTM of the underlying stock: 24.3 [5][88] - Company is a high - tech enterprise in power distribution equipment [88] - In 2024, revenue was 4.985 billion yuan (up 15.12% YoY), net profit attributable to shareholders was 0.196 billion yuan (up 79.05% YoY). In Q1 2025, revenue was 0.976 billion yuan (up 4.68% YoY), net profit attributable to shareholders was 0.037 billion yuan (up 11.47% YoY) [88] - Company highlights: improving profitability and strong order backlog [89] 9. Huayuan Convertible Bond (Huayuan Zhuanzhai) - Bond Rating: AA -; 6 - month - end closing price: 129.19 yuan; Conversion premium rate: 14.24%; PE - TTM of the underlying stock: 26.3 [5][101] - Company focuses on the vitamin D3 industrial chain [101] - In 2024, revenue was 1.243 billion yuan (up 13.58% YoY), net profit attributable to shareholders was 0.309 billion yuan (up 60.76% YoY). In Q1 2025, revenue was 0.326 billion yuan (down 1.18% YoY), net profit attributable to shareholders was 0.097 billion yuan (up 5.5% YoY) [101] - Company highlights: leading products in the industry, product expansion, and new drug approvals [102] 10. Yushui Convertible Bond (Yushui Zhuanzhai) - Bond Rating: AAA; 6 - month - end closing price: 124.888 yuan; Conversion premium rate: 30.54%; PE - TTM of the underlying stock: 26.6 [5][112] - Company is the largest water supply and drainage enterprise in Chongqing [112] - In 2024, revenue was 6.999 billion yuan (down 3.52% YoY), net profit attributable to shareholders was 0.785 billion yuan (down 27.88% YoY). In Q1 2025, revenue was 1.652 billion yuan (up 8.66% YoY), net profit attributable to shareholders was 0.237 billion yuan (up 28.91% YoY) [112] - Company highlights: stable local business, market expansion, and cost control [113]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The target price of Bo 25 Convertible Bonds on the first day of listing is expected to be between 123 - 128 yuan, and investors are advised to actively subscribe [3][19]. - The expected first - day new - bond lottery winning rate is around 0.0168% - 0.0235% [4][20]. 3. Summary According to Relevant Catalogs 3.1 Bo 25 Convertible Bonds New - Bond Analysis and Investment Recommendations 3.1.1 Convertible Bond Basic Terms Analysis - The issuance method of Bo 25 Convertible Bonds is priority placement and online issuance, with a bond and issuer rating of AA. The issuance scale is 2.802 billion yuan, the initial conversion price is 52.42 yuan, the conversion parity on June 30, 2025, is 100.52 yuan, the pure - bond value is 98.88 yuan. The game terms (downward revision, redemption, and put - back terms) are normal. The bond has high issuance scale, good liquidity, acceptable rating, and good bond - floor protection. It is easy for institutions to include it in their portfolios, and there is no objection to primary participation [2][15]. 3.1.2 New - Bond Initial Listing Price Analysis - The company is an auto parts supplier engaged in the R & D, production, and sales of automotive mechanical braking products, intelligent electronic control products, and mechanical steering products. The first - day target price of the convertible bonds is 123 - 128 yuan. Considering the current market environment and parity level, the conversion premium rate on the first day of listing is expected to be in the range of [22%, 27%] [3][18][19]. 3.1.3 Convertible Bond New - Bond Lottery Winning Rate Analysis - Assuming the old - shareholder placement ratio is 33% - 52%, the scale of Bo 25 Convertible Bonds available to the market is 1.345 - 1.877 billion yuan. Assuming 8 million online valid subscription accounts, the lottery winning rate is expected to be around 0.0168% - 0.0235% [4][20]. 3.2 Underlying Stock Fundamental Analysis 3.2.1 Company's Main Business and Industry Upstream - Downstream Situation - The company's main business is the R & D, production, and sales of automotive mechanical braking products, intelligent electronic control products, and mechanical steering products. The main upstream industries are steel and aluminum alloy industries, and the main downstream industries are vehicle manufacturers and their supporting markets. The upstream - downstream relationship between the vehicle and the braking and steering systems is mutually promoting and interdependent [21][22]. 3.2.2 Company's Operating Conditions - From 2022 to Q1 2025, the company's operating income showed an overall upward trend, with year - on - year growth rates of 58.61%, 34.93%, 32.95%, and 41.83% respectively. The comprehensive gross profit margin showed a slight downward trend, and the net profit margin also fluctuated. The company's R & D expenses gradually increased, while the accounts receivable turnover rate showed a downward trend. The net profit attributable to the parent company showed an upward trend, and the profitability showed a fluctuating trend [25][30][35]. 3.2.3 Company's Equity Structure and Major Subsidiaries - As of December 31, 2024, the company's equity structure was relatively concentrated. The top two shareholders held 32.8% of the shares, and the top ten shareholders held 52.16% of the shares. The company has 18 subsidiaries and 3 affiliated companies [43]. 3.2.4 Company's Business Characteristics and Advantages - The company has an independent forward - development ability in the fields of automotive mechanical braking products, intelligent electronic control products, and mechanical steering products. Its competitive advantages include a comprehensive product matrix, strong product competitiveness, continuous product - technology innovation, cost - control advantages through reasonable division of labor and management, and brand advantages through strict product - quality control [46][50][51]. 3.2.5 Allocation of This Fund - Raising - The company plans to issue convertible bonds to raise a total of no more than 2.802 billion yuan. The funds will be invested in projects such as the annual production of 600,000 sets of EMB R & D and industrialization, 1 million sets of wire - controlled chassis braking system industrialization, 1 million sets of EPB construction, high - strength aluminum alloy casting, and the annual production of 7.2 million lightweight parts and 2 million brake calipers in Mexico [13][52].

Investment Rating - The report recommends a "Buy" rating for the company Mao Geping, with a target price positioned in the range of 300-500 RMB for 30ml products, targeting the upper middle class [5]. Core Insights - The Chinese perfume market is projected to reach 26.1 billion RMB in 2023, with a CAGR of 12.82% from 2023 to 2028, indicating strong growth potential [1][45]. - The market penetration of perfumes in China is currently low, with a per capita spending of only 16 RMB in 2023, significantly lower than that of developed countries, suggesting substantial room for growth as consumer awareness and acceptance increase [2][50]. - The competitive landscape is dominated by international brands like Chanel and Dior, while local brands such as "Guanxia" and "Wenxian" are emerging by integrating Eastern cultural elements and modern design [3]. Summary by Sections Market Overview - The Chinese perfume market is experiencing rapid growth, with a CAGR of 15% from 2018 to 2023, significantly outpacing global market growth [40]. - The market share of China in the global perfume market is expected to rise from 3.68% in 2023 to 5.67% by 2028, reflecting the increasing importance of the Chinese market [45]. Market Trends - The shift from material consumption to emotional consumption is driving the growth of the perfume market, with consumers increasingly valuing emotional experiences [4]. - The rise of online shopping and social media platforms is reshaping the perfume purchasing landscape, with online sales expected to grow at a CAGR of 22% from 2023 to 2028 [53][54]. Competitive Landscape - International brands currently dominate the market, but local brands are gaining traction by offering products that resonate with Chinese cultural values [3]. - Mao Geping is expanding its product line into perfumes, leveraging its brand recognition and cultural elements to differentiate itself from international competitors [3]. Future Outlook - The report highlights the potential for significant growth in the perfume sector, particularly in lower-tier cities and through online channels, as consumer preferences evolve [50][54]. - The increasing focus on emotional value and self-expression among consumers is expected to further drive the demand for perfumes in China [4][39].