Core Viewpoint - Huawai Technology Co., Ltd. is advancing its overseas expansion strategy by acquiring assets from the German company Vitz and its affiliates for a total of €10.3 million, aiming to enhance its research, production, and sales of spring products in Europe [1][2][8] Investment Background - The investment decision was approved during the board meeting on October 20, allowing up to €20 million to be invested in two German subsidiaries for spring product operations [2] - The funding for this acquisition will come from the company's own or self-raised funds [2] Transaction Counterparty - The main counterparty is Johann Vitz GmbH & Co. KG, a company established in 1908, which has recently filed for bankruptcy [3] - Vitz specializes in the production of springs and stamped parts, with an estimated revenue of €34 million in 2024 [3] Transaction Details - The acquisition consists of three agreements totaling €10.3 million, which includes fixed assets, land, buildings, and equipment [4][5][6] - The first agreement involves the purchase of fixed assets and intellectual property for €800,000 [4] - The second agreement covers the acquisition of land and buildings for €5.5 million [5] - The third agreement pertains to the purchase of machinery and equipment for €4 million [6] - The total amount represents 51.5% of the initially planned €20 million investment [6] Strategic Significance - The acquisition aims to integrate Vitz's technological expertise and customer resources in the spring sector, enhancing Huawai's competitiveness in the European market [7][8] - The assets acquired will support local production in Germany, fulfilling supply commitments to overseas customers and improving R&D capabilities [8]

Core Viewpoint - The company is focusing on a youth-oriented strategy by targeting college campuses and large factory canteens to enhance its market penetration among younger consumers [1][2] Group 1: Youth-Oriented Strategy - The company is constructing a precise penetration system for young consumers by leveraging "college towns + large factory canteens" as breakthrough scenarios [1] - The company is innovating product offerings to meet the evolving tastes of young consumers, launching new products monthly, such as the tea-marinated series inspired by Minnan tea culture [1] - The company has invested 7.8179 million yuan in R&D during the reporting period, a year-on-year increase of 15.54%, to support product matrix expansion and flavor innovation [1] Group 2: Quality Assurance and Supply Chain - The company emphasizes quality and safety as the lifeline of its long-term development, adhering to the principle of "good raw materials + good craftsmanship = good products" [3] - The company has established long-term strategic partnerships with leading suppliers to ensure raw material quality and supply safety [3] - The company has implemented a comprehensive quality management system and has received multiple international food safety certifications [3] Group 3: Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.473 billion yuan and a net profit attributable to the parent company of 105 million yuan [4] - The company reported a year-on-year increase of 28.70% in operating cash flow and a decrease of 8.46% in operating costs [4] - The second quarter saw a 61.25% quarter-on-quarter improvement in operating revenue and a 487.18% increase in net profit attributable to the parent company [4] Group 4: Global Expansion Strategy - The company is advancing its overseas expansion strategy, establishing a multi-dimensional overseas development matrix [6] - In North America, the company has penetrated Chinese supermarkets and opened direct stores, reaching a million Chinese consumers through its network [6] - The company’s dual-track strategy of "standardized production + localized operation" is key to its overseas expansion success [6] Group 5: Cultural Promotion and Brand Value - The company is not only exporting products but also promoting Chinese marinated food culture internationally [7] - The company’s product, "Tiger Skin Chicken Feet," won the "Delicious Award" from the International Flavor Evaluation Institute in Belgium, enhancing its cultural influence [7] - The company plans to invest in a production base in Nepal to leverage local beef resources, supporting its global supply chain [7]