Core Viewpoint - The announcement details the issuance of A-shares by Xiamen Yingqu Technology Co., Ltd. to specific investors, addressing the dilution of immediate returns and outlining measures to compensate for this dilution [1][5]. Financial Impact Analysis - The issuance is projected to increase the total share capital from 77,744.18 million shares to 83,164.23 million shares [3][4]. - The total amount of funds raised from this issuance is estimated at 80,000 million yuan [3]. - The company analyzed three scenarios for net profit attributable to shareholders for 2025: 1. No growth compared to the previous year, resulting in a diluted earnings per share (EPS) of 0.32 yuan [4]. 2. A 10% increase in net profit, leading to a diluted EPS of 0.36 yuan [4]. 3. A 20% increase in net profit, resulting in a diluted EPS of 0.39 yuan [4]. Use of Proceeds - The raised funds will be allocated to the expansion of manufacturing bases in Malaysia and Mexico, production expansion of health environment products, and upgrades to the R&D center [6][9]. - The projects align with the company's existing business and aim to enhance overseas operations, meet customer supply chain demands, and strengthen R&D capabilities [6][8]. Company Strategy - The company is focused on a "Big Triangle" development strategy, establishing synchronized operations across Asia, Europe, and America to enhance its global manufacturing capabilities [6][8]. - The company aims to provide comprehensive smart manufacturing solutions, integrating R&D, production, and supply chain management [6][8]. Management and Technical Preparedness - The company has a stable team of experienced management and technical personnel in the smart manufacturing sector, ensuring effective project implementation [7]. - Significant technological reserves have been built in areas such as embedded software and hardware development, wireless communication, and artificial intelligence [7][8]. Measures to Mitigate Dilution Risk - The company has established a fundraising management system to ensure the proper use of raised funds and to mitigate risks associated with immediate return dilution [9][10]. - Specific measures include strict supervision of fund usage, regular internal audits, and a commitment to enhance shareholder returns through improved profitability [9][10]. Commitment to Shareholder Returns - The company has outlined a three-year dividend plan (2025-2027) to ensure reasonable returns for shareholders [10]. - Commitments from major shareholders and management to not interfere with company operations or harm company interests have been made to protect investor rights [11][12].

Core Viewpoint - Yingqu Technology (002925.SZ) reported a decline in both revenue and net profit for the third consecutive year, with revenue of 3.573 billion yuan, down 7.45% year-on-year, and a net profit of 251 million yuan, down 44.17% year-on-year, primarily due to a painful revenue structure adjustment and a significant drop in its innovative consumer electronics business [2][3][6]. Revenue and Profit Performance - The company has experienced a continuous decline in revenue and net profit over the past three years, with revenue dropping from 7.061 billion yuan in 2021 to 3.573 billion yuan in 2024, and net profit decreasing from 1.093 billion yuan to 251 million yuan during the same period [6][12]. - The gross profit margin for 2024 was recorded at 28.36%, down from 30.70% in the previous year, reflecting a decrease of 2.36 percentage points [6]. Business Segment Analysis - The innovative consumer electronics segment, which previously accounted for over 60% of revenue, saw a significant decline, with revenue falling to 1.137 billion yuan in 2024, representing 31.82% of total revenue, down from over 43.05 billion yuan in 2021 [3][5]. - The automotive electronics segment was the only area showing positive growth, achieving revenue of 614 million yuan in 2024, a year-on-year increase of 19.43%, but it still only accounted for 17.19% of total revenue [5][6]. - The smart control components business has shown slow growth and volatility, with revenues fluctuating between 9.55 billion yuan and 11.45 billion yuan from 2020 to 2024, including a decline in 2022 and 2024 [4][6]. Financial Management and Shareholder Actions - Despite the declining performance, the company declared a substantial dividend of 323 million yuan, which represents 195.07% of its net profit for 2024, raising concerns about the sustainability of such payouts amid ongoing financial pressures [7][12]. - The major shareholder, Wanlida, has pledged over 60% of its shares, indicating potential liquidity issues, as the high dividend payout may be a strategy to alleviate financial strain on the major shareholder [7][14]. Investment and Future Outlook - The company is focusing on expanding its UDM (User Defined Manufacturing) model and plans to strengthen its automotive electronics and health environment businesses by 2025 [3][6]. - Yingqu Technology has been investing heavily in construction projects, with significant funds allocated to multiple manufacturing facilities, including a 500 million USD investment in a Mexican manufacturing base, which is currently only 24.46% complete [9][13].