Core Viewpoint - Suzhou Sonavox Electronics Co., Ltd. is issuing convertible bonds to raise up to RMB 330 million for technological upgrades and working capital, targeting the growing demand in the automotive acoustic products market driven by the rapid development of electric vehicles and smart cars [17][20]. Company Overview - The company is based in Suzhou, Jiangsu Province, and specializes in manufacturing automotive speakers, audio systems, and electronic components [16]. - The company is listed on the Shanghai Stock Exchange with the stock code 688533 [16]. Bond Issuance Details - The total amount of convertible bonds to be issued is capped at RMB 33 million, with each bond having a face value of RMB 100 and a maturity of six years [21]. - The bonds will be convertible into A-shares and listed on the Sci-Tech Innovation Board [20][21]. Market Context - The global electric vehicle market is projected to grow significantly, with sales expected to reach 18.24 million units in 2024, a year-on-year increase of 24.4% [17]. - In China, the production and sales of new energy vehicles are forecasted to grow by 34.4% and 35.5% respectively in 2024, indicating a strong market potential for automotive acoustic products [17]. Industry Trends - The demand for automotive acoustic products is increasing as consumers prioritize in-car entertainment experiences, especially in electric vehicles where sound quality is crucial due to lower ambient noise levels [18]. - The number of speakers in electric vehicles is significantly higher than in traditional fuel vehicles, with configurations often exceeding 8-12 speakers per vehicle [18]. Use of Proceeds - The funds raised will be allocated to upgrading production lines for smart manufacturing, developing new audio technologies, and supplementing working capital to support the company's expanding operations [20][21].

Company Overview - Suzhou Shangsheng Electronics Co., Ltd. is primarily engaged in the research, development, production, and sales of automotive speakers, audio systems, new electronic components, digital audio and video coding and decoding devices, high-end audio equipment, and related products [1][2]. Financial Information - The registered capital of the company is RMB 160 million, with significant contributions from various stakeholders, including Suzhou Shangsheng Investment Management Co., Ltd. and others [1]. - The financial statements were approved by the company's board of directors on April 27, 2023 [1]. Accounting Policies - The company prepares its financial statements based on the going concern principle, indicating a history of profitable operations and financial resources to support ongoing activities [1][3]. - The financial statements comply with the requirements of the enterprise accounting standards, reflecting the company's financial position and performance accurately [1][3]. Consolidation Scope - The company includes all controlled subsidiaries in its consolidated financial statements, ensuring that all significant internal transactions and balances are eliminated during consolidation [3][4]. - The consolidation scope is determined based on control, and any changes in the consolidation scope for the year 2022 are detailed in the notes [3][4]. Financial Instruments - Financial instruments are recognized when the company becomes a party to the contractual provisions of the financial asset or financial liability [5][6]. - The classification and measurement of financial assets depend on the company's business model for managing financial assets and the contractual cash flow characteristics of the financial assets [6][7]. Inventory Management - The company employs a perpetual inventory system, valuing inventory at actual cost, which includes procurement, processing, and other costs [14]. - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs when necessary [14]. Long-term Investments - Long-term equity investments are initially measured at cost, with adjustments made for any differences between the initial investment cost and the fair value of identifiable net assets acquired [15][16]. - The company uses the equity method for investments in entities over which it has significant influence or joint control, recognizing its share of the investee's profits or losses [17][18]. Real Estate and Fixed Assets - Investment properties are measured at cost and depreciated over their useful lives, with specific depreciation rates outlined for different asset categories [19][20]. - Fixed assets are also measured at cost, with depreciation calculated using the straight-line method based on the estimated useful life of the assets [19][20].

Core Points - Suzhou Sonavox Electronics Co., Ltd. was established in accordance with the Company Law and Securities Law of the People's Republic of China, with a registered capital of RMB 160 million [4][6] - The company was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on April 19, 2021, after issuing 40 million shares to the public [4][6] - The company's business scope includes the production of automotive speakers, audio systems, and various electronic components, as well as import and export activities [7][8] Company Structure - The company is a permanent stock corporation with its legal representative being the chairman, who is elected according to the company's articles of association [4][8] - The company has a total of 160 million shares issued, all of which are ordinary shares [6][8] - The founding shareholders include Suzhou Sonavox Investment Management Co., Ltd., Nanjing Tongtai Venture Capital Partnership, and others [6][8] Share Issuance and Management - The company follows principles of openness, fairness, and justice in its share issuance, ensuring equal rights for all shares of the same category [7][8] - The company can increase its capital through various methods, including issuing shares to unspecified or specific targets, distributing bonus shares, or converting reserves into share capital [8][9] - The company is prohibited from repurchasing its own shares except under specific circumstances, such as capital reduction or employee stock ownership plans [8][9] Governance and Rights - Shareholders have rights to dividends, voting, and supervision of the company's operations, and can request to convene shareholder meetings [11][12] - The company must maintain transparency and provide necessary conditions for the activities of the Communist Party organization within the company [7] - The company is required to disclose information regarding significant events and maintain the independence of its operations and finances [17][18] Shareholder Meetings - The company holds annual shareholder meetings within six months after the end of the fiscal year, and can convene temporary meetings under certain conditions [27][30] - Decisions made at shareholder meetings require a two-thirds majority vote from the attending shareholders [24][30] - The company must provide legal opinions on specific issues discussed at shareholder meetings [25][30]

Core Insights - The 21st Shanghai International Automobile Industry Exhibition focuses on innovation and showcases cutting-edge technologies from leading global automotive companies [1] - Harman International, a subsidiary of Samsung Electronics, presents various automotive technology solutions, including smart interaction, in-car connectivity, and audio systems [1][3] Group 1: Company Developments - Christian Sobottka, President and CEO of Harman, emphasizes China's significance as a key market for automotive technology innovation, introducing solutions showcased at CES 2025 [3] - Harman has established a comprehensive layout in China covering R&D, production, and supply chain, with a new manufacturing facility in Suzhou that began operations in February 2025, involving an investment of 100 million RMB [3] Group 2: Technology Showcased - Smart Interaction System: Ready Engage integrates Cerence AI voice assistant for personalized AI interaction; Ready Upgrade allows for software updates every three months and vehicle upgrades every six months [4] - In-Car Connectivity Technology: Ready Connect enhances communication stability in remote areas; Ready Link Marketplace supports third-party in-car application development [4] - Safety Monitoring System: Ready Care utilizes AI and neuroscience principles to monitor driver physiological data in real-time and provide intervention solutions [4] - Audio and Display Technology: Collaboration with Samsung on automotive-grade HDR10+ display technology and Neo QLED screens; Seat Sonic audio system enables sound zone control through seat integration [4] Group 3: Market Trends - The Chinese electric vehicle market is driving technological breakthroughs in areas such as in-car displays and smart cockpits, with Harman's R&D team responsible for over 40% of global in-car display technology development [6] - The annual production capacity of in-car display modules at the Suzhou factory is set to reach 1.2 million units [6] - According to third-party data, the global smart cockpit market is expected to exceed $80 billion by 2025, with China accounting for 35% of this market [6] - Harman's showcased innovations, such as AR situational intelligence systems and cadmium-free quantum dot film technology, indicate a 60% increase in the pace of technological iteration in the automotive electronics sector compared to three years ago [6]