Summary of Key Points Core Viewpoint - The report outlines the sponsorship work conducted by CITIC Securities for Sichuan Chuanrun Co., Ltd. in 2024, highlighting the company's financial challenges and ongoing projects, as well as the measures taken by the sponsor to ensure compliance and effective management of the company's operations [1][3]. Group 1: Sponsorship Work Overview - CITIC Securities has timely reviewed the company's information disclosure documents and has not missed any reviews [1]. - The company has established and effectively executed internal regulations to prevent related party transactions and manage fundraising [1]. - Monthly checks on the company's fundraising special accounts have been conducted, ensuring alignment with disclosed project progress [1]. Group 2: Project Investment Progress - As of December 31, 2024, the investment progress of the fundraising project "Chuanrun Hydraulic Liquid Cooling Product Industrialization and Intelligent Manufacturing Upgrade" is at 5.69% [1][5]. - The company has added Ousheng Hydraulic as an implementation entity for the fundraising project, indicating proactive engagement with partners [1][3]. - The sponsor has urged the company to monitor project progress closely and fulfill disclosure obligations in case of delays or significant events [1][3]. Group 3: Financial Performance and Challenges - The company anticipates a net loss attributable to shareholders for 2024, influenced by market demand fluctuations and intensified competition [1][3]. - Adjustments in sales strategies have led to a decline in revenue, as the company focuses on the profitability of orders [3]. - Increased investment in strategic areas such as liquid cooling and offshore wind power is aimed at promoting high-quality development [3]. Group 4: Compliance and Regulatory Measures - The sponsor has identified issues in the company's operations and has taken measures to ensure compliance with regulations [1][9]. - Continuous monitoring and training have been implemented to enhance the capabilities of the company's personnel in compliance and operational management [9]. - The sponsor has faced regulatory warnings in other projects, emphasizing the importance of thorough due diligence and adherence to guidelines [9].