Core Viewpoint - Baili Technology (603959) is facing a significant event as its controlling shareholder, Xizang Xinhai New Venture Capital Co., Ltd., is set to auction 48.0788 million shares, representing approximately 9.81% of the company's total share capital, due to a debt-related court ruling [1][3]. Group 1: Auction Details - The first auction of the shares is scheduled from October 16, 2025, to October 17, 2025 [3]. - The shares being auctioned are part of a collateral for a trust loan debt of 302 million yuan that was successfully acquired by Hunan Pailer Technology Co., Ltd. [3]. - Hunan Pailer previously acquired 10 million shares (2.04% of total shares) through a prior auction held on September 25-26, 2024 [4]. Group 2: Financial Performance - Baili Technology has been experiencing continuous losses, with a reported revenue of 515 million yuan in the first half of 2025, a decrease of 8.24% year-on-year [4]. - The net loss for the same period was approximately 52.1 million yuan, primarily due to a reduction in new business orders and a slowdown in signed projects [4]. - If the current auction is successful, the controlling shareholder's stake will decrease to 58.0264 million shares, approximately 11.83% of the total share capital [4]. Group 3: Company Background - Baili Technology, originally established as Baling Petrochemical Design Institute, expanded into the new energy equipment sector through acquisitions, including the full acquisition of Baili Lithium Battery in 2017 [4]. - The company's main business includes engineering consulting, process package development, and smart production line integration [4].