Core Viewpoint - The announcement details the share buyback and capital reduction plan of Zhejiang Lichi Leao Environmental Technology Co., Ltd., a subsidiary of Changzhou Tenglong Automotive Parts Co., Ltd., involving a total capital of RMB 16,940 million for repurchasing 44% of the shares from certain shareholders [2][3][23]. Group 1: Transaction Overview - The buyback involves repurchasing a total of RMB 792 million in registered capital, which represents 44% of the total registered capital before the buyback [2][3]. - After the completion of the buyback and capital reduction, the registered capital of Lichi Leao will change to RMB 1,008 million, and the company will hold 96.43% of its shares [2][3][23]. Group 2: Valuation and Pricing - The total valuation of Lichi Leao's 100% equity was determined to be RMB 38,500 million based on an asset appraisal report, with a net asset value of RMB 21,390.72 million as of October 31, 2025 [4][8]. - The buyback price of RMB 16,940 million was agreed upon after considering the company's operational and financial conditions [4][8][23]. Group 3: Shareholder Details - The shareholders involved in the buyback include Wang Shuwen (22.5%), Lin Xueping (9%), Hong Zilin (4.5%), and Pan Hua (8%) [5][6]. - The transaction does not constitute a related party transaction or a major asset restructuring, and it does not require shareholder meeting approval [4][5][23]. Group 4: Financial Impact - The buyback will increase the company's ownership in Lichi Leao from 54% to 96.43%, which will not lead to changes in the consolidated financial statements or significantly impact the operational status of either company [23][27].

Group 1 - The company held its 24th meeting of the 5th Board of Directors on December 3, 2025, to discuss and approve the repurchase of shares by its subsidiary, Zhejiang Lichilei Environmental Technology Co., Ltd. [2][3] - The board approved a plan for Lichilei to repurchase 44% of its shares from certain shareholders for a total of RMB 16,940 million, increasing the company's ownership from 54% to 96.43% after the transaction [3][8][24] - The overall valuation of Lichilei's 100% equity was determined to be RMB 38,500 million based on an asset appraisal report, with a significant increase in net asset value [10][14] Group 2 - The repurchase involves a total registered capital of RMB 792 million, which corresponds to 44% of the total registered capital before the buyback [7][11] - The transaction does not constitute a related party transaction or a major asset restructuring, and it does not require shareholder approval [10][11] - The company will continue to monitor the progress of the repurchase and reduction of capital, which will be registered after a 45-day announcement period [24]

Company Overview - YouSheng Co., Ltd. (友升股份) is a professional manufacturer of aluminum alloy automotive components, focusing on lightweight automotive parts, particularly in the new energy vehicle sector [1] - The company has developed a product system that includes threshold beams, battery trays, bumpers, and subframes [1] IPO Details - The company is set to be listed on the Shanghai Stock Exchange with an issuance price of 46.36 CNY per share and a market capitalization of 6.713 billion CNY [4] - The issuance price-to-earnings ratio is 22.31, compared to the industry average of 29.08 [4] Financial Performance - Revenue from the threshold beam series is projected to be 1.748 billion CNY in 2024, contributing 48.90% to total revenue, while the battery tray series is expected to generate 1.064 billion CNY, contributing 29.77% [7] - The combined revenue contribution from these two product lines exceeds 75% [7] Market Position - The company holds a domestic market share of 64.25% for threshold beams and 12.30% for bumpers [7] - The battery tray products are expected to see significant market share growth as they begin bulk supply to major clients like CATL and Volvo starting in 2023 and 2024, respectively [7] Client Relationships - YouSheng has established stable partnerships with leading new energy vehicle manufacturers, including Tesla, GAC Group, NIO, and Xpeng Motors, with a high supply ratio of over 60% for many models [7] Awards and Recognition - The company was recognized as one of the "Top 20 Industrial Aluminum Profile Enterprises in China" by Shanghai Nonferrous Metals Network in April 2024 [8] - It has also received awards for quality assurance from major clients like BAIC New Energy and NIO [8] Fundraising Allocation - The company plans to allocate 12.71 billion CNY (51.43%) of the raised funds to the Yunnan YouSheng lightweight aluminum alloy component production base project [6] - An additional 7.00 billion CNY (28.33%) will be directed towards the annual production of battery trays and chassis components [6] - 5.00 billion CNY (20.24%) will be used to supplement working capital [6] Cash Flow Concerns - The company has indicated potential liquidity risks due to its reliance on prepayment for raw materials while offering credit terms of 60 to 90 days to customers [8] - The net cash flow from operating activities has shown a negative trend, with projected figures of 49.12 million CNY, 38.02 million CNY, and -253 million CNY for 2022, 2023, and 2024, respectively [8]