Core Viewpoint - ST Lian Shi, once a star in civil aviation equipment manufacturing, is now facing pre-restructuring due to debt issues, with a significant number of potential investors showing interest in its restructuring process [1][4]. Group 1: Restructuring Process - After over two months of recruiting investors, ST Lian Shi announced the selection of restructuring investors on September 3, 2025, attracting 58 interested parties [1][2]. - The selected investors include various state-owned enterprises and local asset management companies, with a subscription price of 5.65 CNY per share for a 24-month lock-up period and 6.73 CNY per share for a 12-month lock-up period [2][4]. - The current stock price of ST Lian Shi is 8.82 CNY per share, indicating a discount rate of 35.94% for the 24-month lock-up price and 23.70% for the 12-month lock-up price [2]. Group 2: Company Background and Financials - ST Lian Shi, established in 1993 and located in Chengdu, Sichuan, specializes in high-tech aviation precision components and has a strong industrial foundation [4]. - The company has been experiencing continuous losses since 2019, although its operating revenue has shown year-on-year growth since 2022 [4][5]. - As of the 2025 semi-annual report, ST Lian Shi reported goodwill of 2.468 billion CNY, with 1.911 billion CNY already provisioned for impairment [5]. Group 3: Investor Composition and Future Steps - The selected restructuring investors include major state-owned asset management firms, indicating a strong interest from entities with relevant industry experience [3][5]. - The next step after confirming the restructuring investors is to sign the restructuring investment agreement, with ongoing negotiations expected regarding potential changes in the controlling shareholder [5].

Group 1: Company Overview and Market Position - Chengdu Hangyu is currently the only domestic company capable of delivering finished single crystal blades for aviation engines directly to installation [1] - The company primarily serves domestic major manufacturers, with plans to expand its services internationally as domestic aviation engines and gas turbines enter foreign markets [2] - Chengdu Hangyu's products mainly cater to aviation engines and gas turbines, with a focus on high-temperature alloys and single crystal turbine blades [3][7] Group 2: Financial Performance and Projections - In 2024, the company expects a 30% year-on-year increase in capital expenditure, but fixed asset turnover is projected to decline by 15% [2] - The company reported a revenue of 130 million yuan in 2024, with a 20% increase in new order amounts [14] - The net profit margin is under pressure, with financial expenses increasing by 45% and interest expenses exceeding 120% of net profit [25] Group 3: Operational Challenges and Strategies - The company is facing challenges with inventory management, as inventory turnover has decreased by 25% [14] - There is a significant increase in accounts receivable turnover days by 35 days, with overdue accounts over one year rising to 38% [25] - The company is actively pursuing restructuring to mitigate high debt levels and improve operational efficiency [48][49] Group 4: Research and Development - R&D expenses decreased by 18% in 2024, raising concerns about the impact on core technology competitiveness [16] - The company plans to enhance its manufacturing capabilities and product development in the upcoming fiscal year [53] Group 5: Regulatory and Compliance Issues - The company is undergoing a restructuring process due to overdue debts, with a focus on compliance with judicial procedures [48][49] - Government subsidies accounted for over 90% of net profit in 2024, indicating a reliance on non-operational income [55]