Core Viewpoint - The automotive industry is responding to the need for shorter payment terms to improve cash flow and support sustainable development, with approximately 20 companies committing to a unified payment term of 60 days for suppliers starting June 10 [1][2]. Group 1: Industry Response - Major automotive companies, including China FAW, SAIC Group, and new entrants like NIO and Xiaopeng Motors, are adopting a 60-day payment term to enhance cash flow and operational efficiency [2][3]. - The commitment to shorten payment terms aligns with the revised "Regulations on Payment for Small and Medium Enterprises," which mandates large enterprises to pay small and medium suppliers within 60 days [2]. Group 2: Supplier Perspective - Suppliers, such as Zhuhai Guanyu and Haitai Technology, view the reduction in payment terms as beneficial for alleviating accounts receivable pressure, improving cash flow, and reducing financing costs [3][4]. - Experts from the China Automobile Circulation Association highlight that shorter payment terms can enhance the operational resilience and innovation capabilities of suppliers, addressing previous cash flow challenges [3][8]. Group 3: Challenges and Industry Dynamics - The average payment term for Chinese automotive companies is significantly longer, ranging from 170 to 200 days, compared to international counterparts like Toyota and Mercedes [5][6]. - Factors contributing to longer payment terms include the complexity of the automotive supply chain, market competition, and the use of financial instruments that can extend payment periods [7][10]. Group 4: Future Outlook - Experts emphasize that while the commitment to a 60-day payment term is a positive step, it is crucial to streamline the entire payment process from acceptance to invoicing to ensure suppliers receive payments promptly [10][12]. - The automotive industry must enhance collaboration across the supply chain and leverage digital transformation to improve overall efficiency and competitiveness [11][12].

Core Viewpoint - The company Lianyi Intelligent Manufacturing plans to acquire a 66.46% stake in Jiangsu Keda for 332 million yuan, aiming to transition from a Tier 2 to a Tier 1 automotive supplier, enhancing its capabilities in the automotive parts industry [1][2][3]. Group 1: Acquisition Details - Lianyi Intelligent Manufacturing will issue convertible bonds and pay cash to acquire the stake in Jiangsu Keda, which will become a subsidiary post-transaction [1]. - The valuation of Jiangsu Keda's 100% equity is set at 505 million yuan, with the final transaction price for the 66.46% stake being 332 million yuan [1][3]. - The company plans to raise up to 207 million yuan through a stock issuance to support the acquisition [1]. Group 2: Strategic Objectives - The acquisition allows Lianyi Intelligent Manufacturing to quickly enter the automotive decorative parts sector, enhancing its product matrix and customer resources [2][3]. - The company aims to assist Jiangsu Keda in expanding its operations internationally, aligning with the localization strategies of automotive manufacturers [2]. Group 3: Financial Performance and Projections - Jiangsu Keda reported revenues of 815 million yuan and 899 million yuan for the fiscal years 2023 and 2024, respectively, with net profits of approximately 25.32 million yuan and 40.98 million yuan [4]. - The asset appraisal indicates a value increase of 258 million yuan, representing a 104.06% appreciation [3]. - Performance commitments have been established, with expected net profits for Jiangsu Keda set at no less than 47 million yuan, 56 million yuan, and 65 million yuan for the years 2025, 2026, and 2027, respectively [3]. Group 4: Industry Context - The automotive sector is still in a nurturing phase for Lianyi Intelligent Manufacturing, which has historically focused on precision components for Apple [5][6]. - The company is diversifying its revenue streams, with automotive and low-altitude economy businesses generating only 4.79% of total revenue in 2024, indicating significant growth potential [6][7]. - The acquisition of Jiangsu Keda is expected to enhance Lianyi Intelligent Manufacturing's revenue structure and expand its automotive business [7].