Capital Layout - The company plans to list on the Hong Kong Stock Exchange (HKEX) to enhance its global capital operations and broaden financing channels, aiming to improve the global competitiveness of its core businesses in mechanical manufacturing and digital marketing [1][2] - The decision to go public in Hong Kong is driven by a tightening domestic financing environment and significant performance volatility, making it essential for the company to seek new capital opportunities [1][2] - The market response is mixed, with some optimistic about the potential for new growth, while others are concerned that unresolved performance issues may render the move ineffective [1][2] Performance Volatility - The company has experienced significant profit fluctuations over the past four years, with a pattern of "loss-loss-profit-loss," indicating instability in net profits despite maintaining revenue above 20 billion yuan [2][3] - In 2021, the company's net profit suffered a loss of 1.019 billion yuan, a decline of over 120% year-on-year, primarily due to a drop in the fair value of its investment in Li Auto and issues with receivables [3] - The company achieved a net profit of 1.966 billion yuan in 2023, a year-on-year increase of 545.71%, but faced another loss of 259 million yuan in 2024 as Li Auto's stock price declined [3][4] Dependency on Li Auto - The company's financial performance is heavily reliant on the stock performance of Li Auto, leading to a lack of control over its earnings [4][6] - In the first half of 2025, the company reported a net profit of 478 million yuan, a year-on-year increase of 164.28%, but 155 million yuan of this was attributed to Li Auto-related gains, highlighting weak core business profitability [4][5] Core Business Challenges - Both of the company's main business segments, mechanical manufacturing and digital marketing, are facing significant growth challenges, with revenues declining in the first half of 2025 [5] - Mechanical manufacturing revenue decreased by 5.04% to 2.131 billion yuan, while digital marketing revenue fell by 10.9% to 7.477 billion yuan, indicating a lack of growth momentum [5] - The mechanical manufacturing sector is impacted by slowing domestic infrastructure investment and fluctuating raw material prices, while the digital marketing sector faces intensified competition and rising customer acquisition costs [5] Associated Risks - The company's performance is closely tied to Li Auto's financial health, with any downturn in Li Auto's revenue and stock price directly affecting the company's investment returns and overall profitability [6][7] - In the first half of 2025, Li Auto reported its first revenue decline since its IPO, with a projected 40% drop in new vehicle deliveries, which could negatively impact the company's future earnings [7]