Core Viewpoint - Shenzhen Megmeet Electric Co., Ltd. plans to issue shares to specific investors in 2025, with the underwriting by Guojin Securities Co., Ltd. The issuance aims to raise funds for various projects aligned with the company's core business in the power electronics sector. Group 1: Issuance Overview - The issuance will be directed towards specific investors, including the company's controlling shareholder, with a maximum of 35 investors participating [16][17] - The total number of shares to be issued will not exceed 163,694,084 shares, which is 30% of the company's total share capital prior to the issuance [19] - The issuance price will be determined through a bidding process, with the minimum price set at 80% of the average trading price over the previous 20 trading days [16][11] Group 2: Use of Proceeds - The funds raised will be allocated to several projects, including the expansion of the global R&D center, the construction of an intelligent power and control R&D testing center, and the expansion of production bases in Thailand and Zhuzhou [12][13] - The projects are closely related to the company's main business in the electrical automation industry and are not in overcapacity or restricted industries [12][13] Group 3: Compliance and Regulatory Aspects - The issuance has been approved by the company's board and shareholders, complying with the relevant laws and regulations [10][12] - Guojin Securities has conducted necessary due diligence and confirmed that the application documents meet legal requirements without any false statements or omissions [10][6] Group 4: Financial and Operational Context - The company operates in a technology-intensive industry, focusing on power electronics and related control technologies, with a diverse product range including smart appliances, medical devices, and industrial automation [23][24] - The company has experienced fluctuations in gross profit margins, which were 23.57%, 24.54%, 25.07%, and 22.77% over the past years, indicating potential pressure from market competition and raw material costs [24]

Core Viewpoint - The company reported lower-than-expected financial performance for 2024 and Q1 2025, primarily due to declining gross margins and changes in expenses and profits [1][2]. Financial Performance Summary - For 2024, the company achieved revenue of 8.172 billion yuan, a year-on-year increase of 21%, but the net profit attributable to shareholders was 436 million yuan, a decrease of 31% [1]. - In Q1 2025, revenue reached 2.316 billion yuan, reflecting a year-on-year growth of 27% and a quarter-on-quarter increase of 2%. However, the net profit attributable to shareholders was 107 million yuan, down 23% year-on-year but up 329% quarter-on-quarter [1]. - The gross margin for Q4 2024 and Q1 2025 was 23.90% and 22.95%, respectively, showing a decline of 0.65 and 2.95 percentage points year-on-year [2]. Business Segment Performance - In 2024, the smart home appliance control business generated revenue of 3.74 billion yuan, up 43% year-on-year, while the power supply business brought in 2.35 billion yuan, an 11% increase [3]. - For Q1 2025, the smart home appliance control business revenue was 1.23 billion yuan, a 32% increase year-on-year, and the power supply business revenue was 490 million yuan, up 1% [3]. - The company is expected to continue steady revenue growth as it expands its focus on key product areas and overseas markets [3]. Strategic Outlook - The company is diversifying its business and expects improved profitability as various segments scale up [2]. - The data center business is progressing steadily, with expectations for significant deliveries starting in the second half of 2025 [3]. - The company aims to leverage customer partnerships for product updates and market opportunities, building a competitive moat [4]. Profit Forecast and Valuation - The company has adjusted its gross margin assumptions and forecasts net profits of 622 million yuan, 789 million yuan, and 1.013 billion yuan for 2025, 2026, and 2027, respectively [5]. - The estimated price-to-earnings ratio for 2025 is set at 46.4 times, reflecting a 40% premium over comparable companies, with a target price of 52.91 yuan [5].