Core Viewpoint - The transformation journey of YouSheng Co., from focusing on industrial aluminum profiles to specializing in high-end components for new energy vehicles, reflects the resilience and strategic foresight of Chinese automotive parts manufacturers in the face of industry changes [1][3][4]. Company Transformation - YouSheng Co. was established in 1992, initially focusing on industrial aluminum profiles with a registered capital of 4 million USD [3][4]. - The company faced operational challenges and a need for transformation around 2003 due to market saturation and external pressures from foreign shareholders [4][5]. - The strategic shift from "industrial aluminum profiles" to "automotive aluminum alloy components" was initiated by Chairman Luo Shibing, who identified the growing demand for lightweight materials in the automotive sector [5][6]. Technological Innovation - YouSheng Co. invested heavily in R&D to overcome technical barriers, forming specialized teams to enhance aluminum alloy formulations and processing techniques [6][7]. - The company has achieved significant advancements, including a 20% increase in material strength and a 30% improvement in production efficiency through proprietary technologies [7][8]. - YouSheng Co. has developed a collaborative model with clients, allowing early involvement in vehicle design, which has strengthened partnerships and facilitated entry into major automotive supply chains [7][8]. Commitment to Industry Upgrades - The company's mission has evolved from merely producing components to providing modular solutions that enhance overall vehicle performance and reduce production costs [8][9]. - YouSheng Co. has successfully reduced vehicle weight by 10% to 15% through aluminum components, contributing to lower carbon emissions [8][9]. Market Position and Achievements - The company has established itself as a key supplier for major automotive brands, including Tesla, and has received multiple industry awards for quality and innovation [10][11]. - YouSheng Co. is planning to utilize funds from its IPO to expand production capabilities, particularly in Yunnan, which is expected to enhance its market competitiveness [10][11]. Global Expansion Strategy - In 2023, YouSheng Co. initiated a global expansion strategy to meet the needs of international clients, establishing production bases in Mexico and Europe [12][13]. - The company aims to shorten delivery times and enhance responsiveness to urgent orders by situating production facilities closer to key clients [12][13]. Future Outlook - YouSheng Co. plans to continue developing higher strength and lighter aluminum materials while exploring composite components to further reduce weight in new energy vehicles [13]. - The company is focused on expanding its market share in Europe and Southeast Asia, while deepening collaborative development with clients to solidify its position in the industry [13].

Core Viewpoint - The transformation journey of YouSheng Co., from focusing on industrial aluminum profiles to specializing in high-end components for the new energy vehicle (NEV) sector, reflects the company's strategic adaptation to industry changes and its commitment to technological innovation [2][4][10]. Group 1: Company Transformation - YouSheng Co. was established in 1992, initially focusing on industrial aluminum profiles, and quickly gained a foothold in the Yangtze River Delta market [2]. - The company faced operational challenges and a need for transformation around 2003, leading to a strategic pivot towards automotive aluminum alloy components due to the rising demand for lightweight materials in the automotive industry [3][4]. - The transition was difficult, with the company lacking customer resources and industry experience, leading to cash flow issues and a six-month period without salary payments [5]. Group 2: Technological Innovation - YouSheng Co. developed three core technologies: high-performance aluminum alloy materials, advanced processing techniques, and lightweight product design, resulting in 176 authorized patents, including 29 invention patents [6][8]. - The company improved aluminum alloy strength by over 20% and enhanced processing efficiency by 30% through self-developed equipment [6][10]. - The introduction of a "collaborative development" model allowed the company to engage early in customer vehicle design, leading to successful partnerships with major automotive manufacturers [7][10]. Group 3: Market Positioning and Achievements - YouSheng Co. has positioned itself as a solution provider rather than just a product supplier, offering modular solutions that enhance efficiency and reduce costs for clients [8][10]. - The company has successfully entered the supply chains of leading NEV manufacturers, including Tesla, and has received multiple industry awards for quality and innovation [9][10]. - The company plans to use funds from its IPO to invest in a new production base in Yunnan, which is expected to increase production capacity by 100,000 tons and meet the growing demand for battery trays [10][11]. Group 4: Global Expansion Strategy - In 2023, YouSheng Co. initiated a global expansion strategy to establish production bases in Mexico and Bulgaria to meet the needs of international clients like Tesla and Volvo [12]. - The Mexican base aims to shorten delivery times and enhance responsiveness to urgent orders, with a transportation time of only three days to Tesla's Texas factory [12]. - Future plans include expanding production capacity in Europe and increasing market share in Southeast Asia, with a focus on collaborative development with clients [13].

Core Viewpoint - Shanghai Yousheng Aluminum Industry Co., Ltd. (Yousheng) is a key supplier of lightweight components for the domestic new energy vehicle (NEV) sector, with a significant increase in revenue from 2.106 billion yuan to 3.574 billion yuan over the past three years, driven by a growing share of NEV-related products [1] Company Overview - Yousheng has evolved over 30 years from an industrial aluminum profile manufacturer to a comprehensive aluminum alloy automotive parts manufacturer, focusing on core structural components such as threshold beams, battery trays, bumpers, and subframes for NEVs [1] - The company has established itself as a core supplier for leading global automotive manufacturers, including Tesla, NIO, and GAC Group [1] Client Relationships - Yousheng maintains deep collaborations not only with automakers like Tesla but also with major automotive tier-one suppliers such as Hesteel, CATL, Lingyun Industrial, Fawer Automotive, and Huayu Automotive [1] - The automotive industry's stringent quality, performance, and safety standards create long-term stable partnerships, making it difficult for companies to switch suppliers once a relationship is established [1] Technological Competitiveness - The company builds its core competitiveness through "independent research and development of high-performance aluminum alloy materials + advanced processing technology + lightweight end-product design," significantly enhancing collision energy absorption while achieving lightweight designs [2] Market Expansion - Yousheng has established a multi-dimensional layout system that is close to automakers and radiates through the supply chain, with subsidiaries in various Chinese provinces and a production base in Mexico [2] - The company is also targeting the European NEV market with a new facility in Bulgaria, set to begin operations in early 2026, enhancing local supply capabilities [2] Industry Outlook - The lightweight segment of the NEV market is currently experiencing growth opportunities, with predictions that aluminum usage per vehicle will reach 250 kg by 2025 and 350 kg by 2035 [3] - Yousheng plans to raise 2.471 billion yuan through its IPO, primarily for the Yunnan lightweight aluminum alloy component production base and projects related to battery trays and vehicle body manufacturing, which will strengthen its scale and delivery capabilities [3]