Core Viewpoint - The Chinese automotive industry is experiencing a positive trend with over 10% year-on-year growth in both production and sales in the first five months of the year, driven by favorable policies and new product launches [1] Group 1: Industry Performance - The overall automotive market is showing increased consumer activity, particularly in the new energy vehicle sector, which continues to grow rapidly [1] - The export growth rate of automobiles has significantly improved, indicating a strengthening position in international markets [1] Group 2: Company Developments - Linyi Intelligent Manufacturing plans to acquire a 66.46% stake in Jiangsu Keda for 332 million yuan through convertible bonds and cash, with additional fundraising of up to 207 million yuan [2] - This acquisition will enable Linyi Intelligent Manufacturing to transition from a Tier 2 to a Tier 1 automotive supplier, enhancing its capabilities in automotive interior and exterior parts [2] - Jiangsu Keda, a high-tech enterprise, has 65 patents and serves major automotive manufacturers, providing a strong customer base for Linyi Intelligent Manufacturing [2] Group 3: Financial Insights - Jiangsu Keda's 100% equity is valued at 505 million yuan, with a net asset value of 247 million yuan, reflecting a 104.06% appreciation [3] - Jiangsu Keda is projected to achieve revenues of 815 million yuan and 899 million yuan in 2023 and 2024, respectively, with profit commitments of at least 47 million yuan, 56 million yuan, and 65 million yuan for the years 2025, 2026, and 2027 [3] - Linyi Intelligent Manufacturing's automotive and low-altitude economy business reported revenues of 2.117 billion yuan in 2024, marking a 52.90% year-on-year increase [3]

Core Viewpoint - Guangdong Lingyi Intelligent Manufacturing Co., Ltd. plans to acquire 66.46% of Jiangsu Keda's equity through convertible bonds and cash payment, making Jiangsu Keda a subsidiary, with an assessed value of 505 million yuan for 100% equity as of December 31, 2024 [1][2] Group 1: Acquisition Details - The final transaction price for the 66.46% equity of Jiangsu Keda is set at 332 million yuan [1] - Lingyi Intelligent Manufacturing aims to raise up to 207 million yuan by issuing shares to no more than 35 specific investors [2] Group 2: Business Impact - Jiangsu Keda, a key supplier for major automotive manufacturers like SAIC Motor and BYD, is expected to contribute net profits of 25.32 million yuan and 40.98 million yuan for 2023 and 2024, respectively [2] - The acquisition will enable Lingyi Intelligent Manufacturing to transition from a Tier 2 to a Tier 1 supplier in the automotive industry, enhancing customer loyalty and business stability [2] Group 3: Market Position and Growth - Lingyi Intelligent Manufacturing's automotive and low-altitude economy business is projected to achieve revenues of 2.117 billion yuan in 2024, reflecting a year-on-year growth of 52.90% [3] - Post-acquisition, the combined revenue of Lingyi Intelligent Manufacturing and Jiangsu Keda in the automotive sector is expected to expand rapidly, with Jiangsu Keda projected to generate 899 million yuan in revenue [3] Group 4: Industry Trends - Leading automotive companies prioritize suppliers with consumer electronics backgrounds, leveraging their mass production and cost control advantages [3] - The trend of consumer electronics firms entering the automotive sector often involves acquisitions and partnerships to integrate into the automotive supply chain [4]