Core Viewpoint - The recent announcement by the China Securities Regulatory Commission (CSRC) regarding the supplementary material requirements for overseas listing has sparked significant interest in the capital market, particularly for companies like Hainan Aochuang Holdings, which plans to list on NASDAQ under the ticker "ANE" [1][4]. Group 1: Regulatory Changes - The CSRC has requested four categories of supplementary information from Aochuang Holdings, including compliance of the equity control structure, the status of domestic operating entities, changes in equity relationships, and operational compliance issues [4]. - The CSRC's actions are seen as a response to the prolonged "frozen period" for overseas listing applications, which has caused anxiety in the market [6]. - The CSRC aims to create a more transparent, efficient, and predictable regulatory environment for overseas listings, as emphasized in a meeting led by CSRC Vice Chairman Li Ming [6]. Group 2: NASDAQ Listing Requirements - NASDAQ has proposed to increase the minimum fundraising requirement for new listings primarily operating in China to $25 million [6]. - Additionally, the minimum public float market value for companies choosing to list based on net profit standards will rise from $5 million to $15 million [7]. - These new requirements may force companies like Aochuang Holdings, which plans to raise only $6 million, to reconsider their listing strategies, potentially shifting to the New York Stock Exchange (NYSE) or Hong Kong Stock Exchange (HKEX) [9]. Group 3: Market Implications - The combination of the CSRC's regulatory updates and NASDAQ's new listing standards is expected to create a new environment for Chinese companies seeking to list in the U.S. [9]. - The future trend for Chinese companies going public in the U.S. is likely to be characterized by a reduction in quantity but an increase in quality, with only those companies that possess core competitiveness and meet regulatory requirements successfully entering the international capital market [11].

Core Viewpoint - Nanjing Runke Automotive Service Co., Ltd. has been established with a registered capital of 1 million RMB, indicating a new player in the automotive service industry [1] Company Summary - The legal representative of Nanjing Runke Automotive Service Co., Ltd. is Wang Jihao [1] - The company is involved in various automotive-related services, including vehicle repair and maintenance, wholesale and retail of auto parts, and manufacturing of automotive components [1] - The company also engages in the sale of lubricants, electronic equipment, and daily necessities, showcasing a diverse business model [1] Industry Summary - The establishment of Nanjing Runke Automotive Service Co., Ltd. reflects ongoing growth and diversification within the automotive service sector in China [1] - The company’s operations are subject to regulatory approvals, particularly for inspection and testing services, highlighting the importance of compliance in the industry [1]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has announced supplementary material requirements for 13 companies, including AoChuang Holdings, which plans to go public on NASDAQ under the ticker "ANE" [1] Group 1: Regulatory Requirements - The CSRC has requested AoChuang Holdings to provide clarification on its equity control structure, including compliance with foreign investment regulations and the legitimacy of its setup and reverse mergers [2] - The company must also detail the establishment and operational history of its domestic entities, including Hainan AoChuang New Energy Development Co., Ltd. and Aomei (Hainan) New Energy Technology Co., Ltd., along with compliance regarding share acquisition and foreign investment [2][3] - AoChuang Holdings is required to explain the reasons behind the share acquisition by shareholders in September 2023, including pricing basis and any potential conflicts of interest with other stakeholders [2] Group 2: Business Operations - The domestic operational entity of AoChuang Holdings is involved in various automotive services, including vehicle sales, maintenance, and insurance agency services, primarily serving clients in Hainan Province [3] - The company must verify whether its business activities align with the scope of its business license, particularly regarding network taxi services and other specified operations, ensuring compliance with foreign investment restrictions [3]

"推动汽车智能化与汽车服务业智能化二者协同发展，将让中国建立起比其他国家更稳、更扎实、更无 可替代的汽车产业。"11月7日，车百会理事长张永伟在第一届自动驾驶出行生态论坛上表示。 张永伟随后具体谈及了推动"两化"协同发展的四个意义。他首先给出了智能化时代汽车产业竞争力 的"新三角模型"。 具体来看，"新三角模型"的第一个角是在非智能、包括新能源时期，汽车产业主要关心的是汽车自身的 技术进步和汽车制造，这构成了汽车竞争力的主要来源。 第二个角是现在进入智能化时代，更多可以为汽车赋能的是数字和AI技术。所以从一定意义上来讲， 未来会对汽车产业产生根本性影响的是数字和AI技术，这会成为汽车产业竞争力的第二个重要来源。 第三个角是汽车服务业，过去只关心汽车制造，当汽车离开工厂就进入了使用环节。未来，服务生态要 植入汽车全生命周期价值的开发。 第三点意义是，智能化将是汽车服务的发展方向。 张永伟表示："从大背景来看，智能化不仅仅是汽车制造业的发展方向，也是汽车服务业的发展方向。" 他继而谈到："当消费者关注汽车本身的同时，也会将更多的体验放在整个汽车的使用环节上，包括养 护、停车等，这会极大地增加汽车对消费产生的凝聚力 ...

Market Overview - On November 7, the automotive service sector declined by 0.58% compared to the previous trading day, with Shanghai Wumart leading the decline [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Stock Performance - The following table summarizes the closing prices and percentage changes of key automotive service stocks: - Guoji Automobile (600335): Closed at 6.42, up 0.47% - Zhongqi Co., Ltd. (301215): Closed at 6.73, down 0.30% - Jiaoyun Co., Ltd. (600676): Closed at 6.25, down 0.32% - Haowu Co., Ltd. (000757): Closed at 5.52, down 0.36% - Alter (300825): Closed at 11.47, down 0.43% - Dezong Automobile (920030): Closed at 7.38, down 0.54% - Beiba Media (600386): Closed at 4.96, down 0.80% - China Automotive Research (601965): Closed at 17.20, down 0.92% - Shenhua Holdings (600653): Closed at 2.10, down 0.94% - Xiamen Xinda (000701): Closed at 6.12, down 1.29% [1][2] Capital Flow - The automotive service sector experienced a net outflow of 33.43 million yuan from institutional investors, while retail investors saw a net inflow of 56.43 million yuan [2] - The following table details the capital flow for specific stocks: - Guoji Automobile (600335): Net inflow of 9.69 million yuan from institutional investors - Alter (300825): Net inflow of 1.47 million yuan from institutional investors - Zhongqi Co., Ltd. (301215): Net outflow of 6.12 million yuan from institutional investors, with a significant net inflow of 17.11 million yuan from retail investors - Shanghai Wumart (600822): Net outflow of 9.68 million yuan from institutional investors, with a net inflow of 7.31 million yuan from retail investors [3]

Core Viewpoint - Recently, Guohui Automotive Services (Hebei) Co., Ltd. was established with a registered capital of 50 million RMB, indicating a significant investment in the automotive service sector [1] Company Overview - The legal representative of Guohui Automotive Services is Zheng Fulong [1] - The company has a registered capital of 50 million RMB [1] Business Scope - The company operates in various sectors including: - Motor vehicle repair and maintenance - Automobile sales, including new energy vehicles and electric vehicles - Wholesale and retail of auto parts - Sales of automotive decoration products and charging piles - Manufacturing of traffic safety and control equipment - Agricultural machinery services, including recycling and leasing [1] - Additional services include: - Business agency and consulting services - Market research and marketing planning - Second-hand car trading and leasing services - Operation of electric vehicle charging infrastructure [1]

Market Overview - The automotive service sector experienced a decline of 0.31% on November 6, with Xiamen Xinda leading the drop [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - Xiamen Xinda (000701) closed at 6.20, down 3.43% with a trading volume of 449,100 shares and a transaction value of 280 million [1] - Other notable declines included Beiba Media (600386) down 1.19%, and Dezhong Automobile (920030) down 1.07% [1] - Conversely, Guoji Automobile (600335) saw a slight increase of 0.31% [1] Capital Flow - The automotive service sector saw a net outflow of 33.96 million from institutional investors and 30.07 million from speculative funds, while retail investors contributed a net inflow of 64.02 million [3] - Xiamen Xinda experienced the largest net outflow among individual stocks, totaling 37.62 million [3] - Retail investors showed significant interest in Xiamen Xinda, with a net inflow of 60.31 million despite the overall decline [3]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 grew 11.1% to $125.4 million, marking a record quarter for the company [4] - Net income for the quarter decreased 11.8% to $13.1 million, reflecting a 10.5% net income margin [25] - EBITDA declined 8.1% to $19.9 million, with an EBITDA margin of 15.9% [25] - Year-to-date revenue grew 13.1%, while year-to-date net income increased 3.7% [25] Business Line Data and Key Metrics Changes - Total window film product line grew 22.2% in the quarter, serving as a significant growth driver [23] - Total insulation revenue increased over 21%, including product and service for dealership services [23] - Corporate-owned stores and OEM business performed solidly despite some challenges in the OEM sector [23] Market Data and Key Metrics Changes - The U.S. region revenue grew 11.1% to a record $71.7 million, while the EU region saw a 28.8% increase to $16.5 million [4] - Canada revenue declined from the prior year, continuing a trend of a slow market [6] - Latin America remained flat due to weakness in Mexico, with a shift to a direct model in Brazil impacting performance [7] Company Strategy and Development Direction - The company aims to increase gross margin by approximately 10 percentage points to around 52%-54% by the end of 2028 [15] - Focus on investing in core business and manufacturing, with plans for potential service business acquisitions within the dealership services sector [17] - The company is prioritizing investments in existing markets rather than pursuing new lines of business [14] Management's Comments on Operating Environment and Future Outlook - Management noted a mixed sentiment in the aftermarket and dealer channels, with challenges in the retail automotive business impacting consumer affordability [44][48] - The company remains optimistic about long-term growth despite current market challenges, emphasizing the importance of strategic investments [12][49] - Management expressed confidence in the integration of the recent acquisition in China and its potential to enhance direct distribution capabilities [21] Other Important Information - The acquisition of the Chinese distributor was completed for just under $53 million, with a new entity formed to manage the assets [26] - The company added approximately $22 million in inventory as part of the acquisition, which will impact cash flow positively as it is sold through [10][28] - SG&A expenses grew 20.8% in the quarter, reflecting increased costs associated with the acquisition and other operational expenses [24] Q&A Session Summary Question: Can you elaborate on the out-of-line price increases and how they were mitigated? - Management indicated that price increases impacted gross margin by about 170 basis points, but they have robust supplier options to mitigate these effects [33] Question: What is the early dealer response to the rollout of colored films? - The rollout has been well received, with expectations of market growth and increased engagement from dealerships and OEMs [37] Question: What are the revenue assumptions underpinning the expected operating margin expansion by 2028? - Management expects low double-digit organic revenue growth to continue, supporting the margin expansion goal [42] Question: Can you provide an update on sentiment across the aftermarket and dealer channel? - Sentiment is mixed, with some challenges in the retail automotive sector, but opportunities for the company to provide value in tougher conditions [44][48] Question: What is the expected impact on gross margin in Q4 and the following quarters? - A drag on gross margin is expected in Q4 due to higher-priced inventory from China, but record gross margins are anticipated in Q1 and Q2 of 2026 [50][52]

Market Overview - The automotive service sector increased by 0.44% on November 5, with Beiba Media leading the gains [1] - The Shanghai Composite Index closed at 3969.25, up 0.23%, while the Shenzhen Component Index closed at 13223.56, up 0.37% [1] Stock Performance - Beiba Media (600386) closed at 5.06, up 2.85% with a trading volume of 200,100 shares and a turnover of 101 million yuan [1] - Sunhua Holdings (600653) closed at 2.14, up 2.39% with a trading volume of 669,400 shares and a turnover of 143 million yuan [1] - Other notable performers include: - Dezhong Automobile (920030) at 7.50, up 1.35% [1] - Xiamen Xinda (000701) at 6.42, up 0.94% [1] - Guoji Automobile (600335) at 6.37, up 0.79% [1] Capital Flow - The automotive service sector experienced a net outflow of 62.24 million yuan from institutional investors and 43.80 million yuan from speculative funds, while retail investors saw a net inflow of 106 million yuan [2] - The detailed capital flow for key stocks shows: - Beiba Media had a net outflow of 13.66 million yuan from institutional investors [3] - Shanghai Material Trade (600822) saw a net inflow of 8.90 million yuan from institutional investors [3] - Xiamen Xinda experienced a significant net outflow of 40.78 million yuan from institutional investors [3]

Meeting Overview - The first extraordinary general meeting of shareholders for 2025 was held on November 3, 2025, at the conference room on the second floor of 517 Hengyu Road, Jiading District, Shanghai [2] - The meeting was presided over by Chairman Zhu Yanyang, utilizing a combination of on-site and online voting methods [2][3] Attendance - All 9 current directors attended the meeting, along with all 3 current supervisors and the board secretary, Li Jiabao [3] Resolutions Passed - The following resolutions were approved during the meeting: - Proposal to cancel the supervisory board and amend the Articles of Association, along with handling business registration changes [4] - New and revised management system proposals, including: - Shareholder meeting rules [4] - Board meeting rules [4] - Independent director work system [5] - Cumulative voting system implementation details [5] - Fund management system [5] - External investment management system [5] - External guarantee system [5] - Related party transaction decision-making system [5] - Director and senior management compensation management system [5] - Director and senior management resignation management system [6] Legal Verification - The meeting was witnessed by Shanghai Jinmao Kaide Law Firm, with lawyers Yu Guang and Zhang Bowen confirming that the meeting's procedures complied with legal and regulatory requirements [6]