Group 1 - The company Shanghai Baolong Automotive Technology Co., Ltd. has issued convertible bonds totaling RMB 139 million, with a net amount of RMB 137.71 million after deducting issuance costs [3][24]. - The convertible bonds have a face value of RMB 100 each and will be listed on the Shanghai Stock Exchange starting November 27, 2024 [4][3]. - The bonds have a maturity period of 6 years, with interest rates increasing from 0.10% in the first year to 2.00% in the sixth year [5][4]. Group 2 - The company reported a revenue of RMB 702.49 million for 2024, representing a 19.12% increase compared to the previous year [22][23]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was RMB 25.24 million, a decrease of 14% from the previous year [22][23]. - The total assets of the company increased by 27.53% to RMB 1.08 billion [23]. Group 3 - The company is focused on the research, development, manufacturing, and sales of automotive intelligent and lightweight products, including tire pressure monitoring systems and various sensors [21][22]. - The company has production and research centers in multiple locations, including Shanghai, Anhui, and international sites in the USA, Germany, Poland, and Hungary [21]. - Major clients include global automotive manufacturers and first-tier suppliers [21]. Group 4 - The company has established a dedicated account for the management of raised funds, ensuring compliance with regulatory requirements [24][25]. - As of December 31, 2024, the company had significant balances in various bank accounts designated for project funding [25].

Core Viewpoint - The company is impacted by the U.S. tariffs on products exported from China and Germany, including valve stems, exhaust system components, balance weights, and other aftermarket parts, as well as equipment and tooling [1] Group 1: Valve Stems - The valve stems are manufactured by the company's domestic subsidiary and exported to the U.S. for assembly at the DILL factory, which benefits from lower tariffs compared to complete exports [1] - The company primarily targets the North American aftermarket (AM) market, which has a higher gross margin compared to the OEM market [1] - DILL has a strong market presence and long-term relationships with major North American retail and service chains, maintaining high gross margins despite tariff impacts [1] Group 2: Exhaust System Components - The company faced a 25% tariff on exhaust system components during the first round of the trade war in 2018, which was largely absorbed by downstream customers [1] - In 2023, the U.S. has increased tariffs on Chinese exports by a cumulative 54%, prompting the company to engage closely with North American customers to pass on tariff costs [1] - The company is assessing the impact of tariffs from different countries for long-term overseas manufacturing and supply chain development [1] Group 3: TPMS Products - The company is subject to a 20% tariff on TPMS products exported from Germany to the U.S. [1] - The company is accelerating the establishment of a TPMS assembly plant at its U.S. subsidiary DILL to expand its OEM business in North America [1] - The main competitor in the North American TPMS OEM market is Sensata, which has production capacity in Mexico, with uncertainty regarding compliance with USMCA local value-added requirements [1]