Core Viewpoint - Weifu High-Tech has established a joint venture to enhance its business in the fully active suspension system sector, leveraging its technological advantages and distribution channels [1][2]. Group 1: Joint Venture Details - Weifu High-Tech's subsidiary, Weifu Jinning, will invest 220 million yuan (approximately 32.1 million USD) for a 55% stake in the newly formed Weifu Baolong Technology Co., Ltd., while Baolong Technology will invest 180 million yuan (approximately 26 million USD) for a 45% stake [1]. - The joint venture aims to synergize Weifu Jinning's fully active suspension motor hydraulic pump technology with Baolong Technology's suspension system distribution advantages to maximize commercial benefits for both shareholders [2]. Group 2: Company Background and Financials - Weifu High-Tech, originally established in 1958, focuses on the research, production, and sales of core automotive components, with its automotive parts business generating 11.01 billion yuan (approximately 1.58 billion USD) in revenue in 2024, accounting for 98.6% of total revenue [2]. - The company has significantly increased its R&D investment, with expenditures of 582 million yuan, 668 million yuan, and 690 million yuan from 2022 to 2024, totaling 1.94 billion yuan (approximately 280 million USD) over three years [2]. - Despite the increase in R&D spending, Weifu High-Tech faces challenges due to intensified market competition and declining investment income, with revenues of 11.17 billion yuan and 2.834 billion yuan in 2024 and Q1 2025, reflecting year-on-year changes of 0.67% and -2.38% respectively [3].