Core Viewpoint - Sanhua Intelligent (02050) is set to launch an IPO from June 13 to June 18, 2025, aiming to issue 360 million H-shares, with 7% allocated for public offering in Hong Kong and 93% for international offering, plus a 15% over-allotment option [1] Group 1: Company Overview - According to Frost & Sullivan, Sanhua is the largest manufacturer of refrigeration and air conditioning control components globally, with a market share of approximately 45.5% in the refrigeration and air conditioning control components market as of 2024 [1] - The company is also a leading manufacturer of automotive thermal management system components, ranking fifth globally with a market share of about 4.1% as of 2024 [1] - Sanhua aims to develop a smart low-carbon economy and create a green quality environment, focusing on research, promotion, and application of thermal management technology [1] Group 2: Fundraising and Use of Proceeds - The cornerstone investors, including Schroders, GIC, and others, have agreed to subscribe to shares amounting to approximately $562 million, with a total of 202 million shares expected to be subscribed at a price of HKD 21.87 per share [2] - Assuming no exercise of the over-allotment option and after deducting commissions and estimated expenses, the net proceeds from the global offering are expected to be approximately HKD 7.741 billion [3] - The net proceeds will be allocated as follows: 30% for ongoing global R&D and innovation, 30% for expanding and building new factories in China, 25% for enhancing overseas capacity, 5% for strengthening digital infrastructure, and 10% for working capital and general corporate purposes [4]

Group 1 - The company, Sanhua Intelligent (02050), plans to conduct an initial public offering (IPO) from June 13 to June 18, 2025, offering 360 million H-shares globally, with 7% allocated for public sale in Hong Kong and 93% for international sale, plus a 15% over-allotment option [1] - The company is the largest manufacturer of refrigeration and air conditioning control components globally, with a market share of approximately 45.5% in the refrigeration and air conditioning control components market and ranked fifth in the automotive thermal management system components market with a 4.1% share, according to Frost & Sullivan [1] - The company aims to develop a smart low-carbon economy and focuses on research, promotion, and application of thermal management technology, providing energy efficiency solutions to global customers [1] Group 2 - The company has entered into cornerstone investment agreements with several investors, including Schroders and GIC, agreeing to subscribe for shares at the offering price, totaling approximately $562 million [2] - Assuming no exercise of the over-allotment option and based on a median offering price of HKD 21.87 per share, the company estimates net proceeds from the global offering to be approximately HKD 7.741 billion [3] - The estimated net proceeds will be allocated as follows: 30% for ongoing global R&D and innovation, 30% for expanding and building new factories in China, 25% for enhancing overseas capacity, 5% for strengthening digital infrastructure, and 10% for working capital and general corporate purposes [3]

Group 1 - The company, Sanhua Intelligent (02050.HK), plans to globally issue approximately 360 million H-shares, with 25.22 million shares available in Hong Kong and about 335 million shares for international offering [1] - The expected pricing range for the shares is between HKD 21.21 and HKD 22.53, with the subscription period from June 13 to June 18, 2025, and trading expected to commence on June 23, 2025 [1] - According to Frost & Sullivan, the company is the largest manufacturer of refrigeration and air conditioning control components globally, holding a market share of approximately 45.5% in this sector [2] Group 2 - The company also ranks fifth in the global automotive thermal management system components market, with a market share of about 4.1% [2] - The company focuses on research and development in thermal management technology, providing energy-efficient solutions to global customers [2] - The company has established cornerstone investment agreements, with cornerstone investors agreeing to subscribe for shares totaling approximately USD 562 million (or about HKD 4.408 billion) [3][4] Group 3 - Assuming no exercise of the over-allotment option and a share price of HKD 21.87, the company estimates net proceeds from the global offering to be approximately HKD 7.7406 billion [5] - The intended use of proceeds includes approximately 30% for ongoing global R&D and innovation, 30% for expanding and building new factories in China, 25% for enhancing overseas capacity, 5% for strengthening digital infrastructure, and 10% for working capital and general corporate purposes [5]

( 於中華人民共和國註冊成立的股份有限公司 ) 股份代號 : 2050 全球發售 聯席保薦人、整體協調人、聯席全球協調人、 聯席賬簿管理人及聯席牽頭經辦人 重要提示 重要提示：閣下如對本招股章程任何內容有任何疑問，應諮詢專業獨立意見。 ZHEJIANG SANHUA INTELLIGENT CONTROLS CO., LTD. 浙江三花智能控制股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 全球發售 | ： | | | ： | | | ： | | | ： | | | | | | ： | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 全球發售項下 360,330,000股H股（視 乎 發 售 量 調 | 發售股份數目 整權及超額配股權行使與否而 | 定） | 香港發售股份數目 25,223,100股H股（可 予 重 新 分 配 | 及視乎發售量調整權行使與否 | 而定） | 國際發售股份數目 335,106,900股H股（可 予 重 新 分 配 | ...

Core Viewpoint - NIO is advancing its battery production capabilities and has secured a partnership to supply its self-developed batteries to McLaren for hybrid models, indicating a strategic move to enhance its market presence in the high-performance automotive sector [2][3]. Group 1: Battery Production and Partnerships - NIO plans to supply its self-developed 46 series cylindrical batteries to McLaren, which has generated significant industry interest [2]. - The battery team at NIO was established in 2021, initially collaborating with CATL on joint R&D projects, and announced plans to accelerate production in 2023 with a 40GWh capacity planned for the new cylindrical battery production base in Hefei [2]. - Despite initial plans, NIO has temporarily paused the construction of its Hefei factory due to various factors, but production has not ceased and is proceeding steadily [2][4]. Group 2: Technological Innovations - NIO is developing a dual-chemistry battery system that activates high-nickel cathodes for rapid acceleration and switches to lithium iron phosphate for steady driving, which is particularly suitable for supercars [3][4]. - The battery design includes advanced thermal management technology, maintaining a temperature difference of within 5°C during continuous track driving [4]. Group 3: Strategic Challenges and Financial Considerations - NIO's founder has outlined a three-step strategy to establish a complete supply chain, but the company faces challenges in achieving this due to previous R&D setbacks that have delayed battery integration into its own models [4][5]. - NIO's financial situation is precarious, with a cash reserve of 26 billion yuan, which is only sufficient to sustain operations for four quarters, necessitating urgent cost reduction and efficiency improvements [5].

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company's revenue faced short-term pressure, with Q1 2025 revenue at 1.11 billion, a year-on-year decrease of 10.55% and a quarter-on-quarter decrease of 9.61%. The company has established a strong brand reputation and customer base, serving over 200 major clients globally, including more than 130 in the new energy sector [2] - The gross profit margin significantly improved to 25.33% in Q1 2025, an increase of 4.84 percentage points year-on-year, driven by product structure optimization and cost control. The net profit margin after deducting non-recurring items rose to 11.08%, up 2.21 percentage points year-on-year, indicating enhanced profitability [3] - The company is expanding its new energy business, with electronic water pump products gaining market share in the domestic new energy passenger vehicle market. The company is also actively developing non-automotive businesses, focusing on sectors such as 5G base stations and AI computing centers, which are expected to drive a second growth curve [4] - The traditional business remains stable, with turbocharger housings benefiting from the penetration of hybrid models and export growth. The company is accelerating its global layout, with a production base in Thailand expected to be completed by September 2025, which will help mitigate tariff risks and optimize the supply chain [5] Financial Forecasts - The company maintains its profit forecasts for 2025 and 2026, with new profit projections for 2027. Expected revenues for 2025, 2026, and 2027 are 5.87 billion, 7.06 billion, and 8.14 billion respectively, with net profits of 452 million, 587 million, and 700 million. The EPS for these years is projected to be 0.79, 1.02, and 1.22 respectively [8]