Investment Highlights - The controlling shareholder plans to increase its stake in the company by 50 to 100 million yuan within the next six months [1] - The company intends to raise no more than 1.2 billion yuan through a targeted issuance, with funds allocated for semiconductor equipment precision components (500 million yuan), communication and automotive parts for die-casting (500 million yuan), and working capital (200 million yuan) [2] - The company has officially entered the server liquid cooling market through a joint venture with Gigabyte Innovation Green Energy Co., Ltd., aiming to provide efficient water cooling plate designs and related server cooling kits for domestic and international clients [2][3] Business Potential - The company is expected to exceed market expectations in the liquid cooling and semiconductor equipment sectors, with the targeted issuance accelerating capacity construction and consolidating its leading position [2] - The semiconductor equipment precision components segment has already begun operations, supplying products to leading clients in Shanghai and Shenzhen [3] - The collaboration with Gigabyte Innovation is expected to leverage both parties' strengths in design and mass production, focusing on high-power GPU and AI server applications [3] Future Outlook - The company is set to expand its high-end applications, supported by major clients like Huawei and Tesla, with a North American factory expected to commence production by the end of the year [3] - The company is actively developing its robotics business, having supplied aluminum-magnesium alloys to Tesla since 2016 [4] - The company anticipates a turnaround in performance, with projected net profits of -140 million yuan, 200 million yuan, and 430 million yuan for 2025 to 2027, reflecting a significant recovery and growth trajectory [4]

Group 1: North America Operations - The North America production base has secured contracts with clients in the autonomous electric vehicle and energy storage sectors, with production expected to commence within the year [1]. Group 2: Semiconductor Business - The semiconductor business was established as Chongqing Yulai Sheng Precision Technology Co., Ltd. in May 2025, focusing on manufacturing specialized equipment and precision components for semiconductor clients [2]. Group 3: Liquid Cooling Strategy - The company has developed a strategic plan for liquid cooling technology in response to the growing demand for heat dissipation in data centers, high-performance computing, and artificial intelligence [3]. - The liquid cooling technology is applied in three main sectors: electric vehicles, communication cooling, and data centers [3]. Group 4: Server Liquid Cooling Collaboration - A recent partnership with JuLiang Company aims to develop key components for liquid cooling servers, enhancing service offerings for both domestic and international clients [4]. Group 5: Communication Business Positioning - The company possesses comprehensive technology from thermal simulation to mass production in the 5.5G and 5G-A sectors, with a leading position in phase-change liquid cooling technology [5]. Group 6: Future Performance Expectations - The company anticipates facing short-term performance challenges but views 2025 as a pivotal year for transformation and foundational strengthening, expecting growth drivers to emerge by 2026 [6]. Group 7: Development Plans - The strategic path includes maintaining technological leadership in communications, deepening relationships with quality automotive clients, and expanding into emerging sectors like energy storage and semiconductors [7].