Core Viewpoint - The board of Shanghai New Power Automotive Technology Co., Ltd. held its second meeting of the 11th session, where several key resolutions were passed regarding internal control evaluations, fundraising reports, project delays, and risk assessments [1][2][3] Group 1: Internal Control and Fundraising - The internal control evaluation report for the first half of 2025 was approved unanimously by the board [1] - A special report on the storage and actual use of the company's fundraising for the first half of 2025 was also approved [1] Group 2: Project Delays and Suspensions - The board agreed to postpone the "D25 high-performance diesel engine WGT project," "12VK power station product development project," and "new energy electric drive bridge product project" with new completion dates set for May 2026, August 2025, and July 2026 respectively [2] - The construction of the "new generation intelligent heavy truck" fundraising investment project by SAIC Hongyan was suspended [2] Group 3: Financial and Risk Assessments - The half-year report for 2025 was approved by the board [2] - A risk assessment report for SAIC Finance Company for the first half of 2025 was recognized and approved by the board and independent directors [2]

Core Viewpoint - The company announced a delay and suspension of certain fundraising investment projects due to market demand and operational adjustments, while ensuring that the essential aspects of the projects remain unchanged [1][5][6]. Fundraising Overview - The company raised approximately RMB 1.999 billion through a non-public issuance of 222,469,410 shares at a price of RMB 8.99 per share, with a net amount of RMB 1.979 billion remaining after expenses [1][2]. - As of June 30, 2025, the balance of the fundraising account was RMB 721.34 million, including interest of RMB 89.18 million [2][3]. Project Adjustments - The company has adjusted its fundraising usage plan, with specific projects experiencing delays in reaching their intended operational status [2][3]. - The projects affected include the "Commercial Vehicle Intelligent Engine Project," "New Generation High-Power Marine Engine Project," and "New Energy Electric Drive Bridge Project," with revised completion dates extending into 2026 and 2027 [3][4]. Reasons for Delays and Suspensions - Delays are attributed to market demand fluctuations and changes in customer requirements, impacting project timelines [3][5]. - The "New Generation Intelligent Heavy Truck Project" has been suspended due to the freezing of related funds by the court and ongoing bankruptcy restructuring proceedings for the subsidiary involved [5][6]. Impact on Company Operations - The delays and suspensions are deemed necessary decisions based on actual project progress and market conditions, with no substantial impact on the overall implementation of the projects or shareholder interests [5][6]. - The company maintains that these adjustments will not adversely affect its normal operations and are aligned with its strategic objectives [5][6]. Decision-Making Process - The decisions regarding project delays and suspensions were approved by the company's board and audit committee, following necessary regulatory procedures [6][7].

Summary of Key Points Core Viewpoint - The company has decided to postpone and suspend certain fundraising investment projects due to market demand and operational considerations, while ensuring that the essential aspects of the projects remain unchanged [4][6][7]. Group 1: Fundraising Overview - The company raised a total of approximately RMB 1.999 billion through a non-public issuance of 222,469,410 shares at a price of RMB 8.99 per share, with a net amount of approximately RMB 1.981 billion after deducting issuance costs [1]. - The funds are managed in a dedicated account, adhering to regulations and agreements with independent financial advisors and banks [2]. Group 2: Fundraising Utilization - As of June 30, 2025, the company has utilized approximately RMB 1.067 billion of the raised funds, with a remaining balance of approximately RMB 721 million [2]. - The adjusted fundraising plan includes specific projects such as "Commercial Vehicle Intelligent Engine Projects" and "New Energy Electric Drive Bridge Projects" [2]. Group 3: Project Postponement and Suspension - Certain projects, including the "D25 High-Performance Diesel Engine WGT Project" and "New Energy Electric Drive Bridge Product Development Project," have been postponed due to market conditions, with expected completion dates pushed to 2026 [4][6]. - The "New Generation Intelligent Heavy Truck Project" has been suspended due to legal issues affecting the subsidiary responsible for its implementation, which has led to a court-ordered restructuring [6][8]. Group 4: Impact and Decision-Making Process - The postponement and suspension of projects are based on careful consideration of market conditions and operational needs, and they do not alter the fundamental aspects of the projects or the intended use of funds [6][7]. - The decision has been approved by the company's board and audit committee, ensuring compliance with regulatory requirements [7].

Core Viewpoint - The bankruptcy restructuring application for SAIC Hongyan, a wholly-owned subsidiary of Shanghai New Power Automotive Technology Co., Ltd., reflects a structural crisis in the traditional fuel heavy truck industry and marks a critical turning point in the company's dual-business strategy transformation [1] Industry Challenges - SAIC Hongyan's decline mirrors the industry's struggles, with its sales plummeting from 63,000 units in 2021 to 5,511 units in 2024, dropping out of the top ten in the heavy truck market [2] - Financially, as of the end of 2024, SAIC Hongyan's total liabilities exceeded total assets by 2.892 billion yuan, and current liabilities surpassed current assets by 3.773 billion yuan, with cumulative losses of 6.326 billion yuan from 2022 to 2024 [2] - The overall heavy truck market in China saw sales drop to 900,000 units in 2024, nearly halving from the peak in 2020, exacerbated by policies accelerating the phase-out of fuel vehicles [2] Bankruptcy Restructuring - The creditor's application for bankruptcy restructuring cites the inability to repay due debts and severe insolvency, yet acknowledges the potential for restructuring based on SAIC Hongyan's technological assets [3] - The company holds the world's first intelligent connected heavy truck demonstration operation license and has successfully exported pure electric heavy trucks, indicating some operational viability [3] - A successful restructuring could alleviate SAIC Hongyan's debt burden, with the company reporting a 24.43% year-on-year decrease in cash to 4.096 billion yuan and a rising debt ratio of 74.90% in Q1 2025 [3] Strategic Transition - The core issue for Shanghai New Power is the painful transition between traditional energy and new energy sectors, following a 32.03 billion yuan acquisition of SAIC Hongyan in 2021 to establish a dual-business model [4] - The heavy truck business has incurred losses for three consecutive years, leading to a net profit loss for the company, with Q1 2025 losses narrowing to 210 million yuan but maintaining a low gross margin of 0.36% and a net margin of -15.32% [4] - The court has accepted the bankruptcy case, but uncertainty remains regarding whether SAIC Hongyan will officially enter the restructuring process, indicating a critical juncture for the legacy power company [4]