Core Viewpoint - The company, Dongfang Precision, announced plans to sell 100% equity in Fosber Group, Fosber Asia, and Tiruña Asia for cash, which are key operators of its corrugated cardboard production line business, contributing nearly 70% of its revenue in 2024. This move aims to deepen strategic focus and shift towards developing water propulsion equipment and emerging industries [1][4][14]. Financial Performance - In 2024, the assets being sold accounted for 39.66% of the company's total assets and 30.23% of its net assets, while contributing 67.20% of its total revenue [5][17]. - The company's revenue from intelligent corrugated packaging equipment was 84% in 2024, indicating that the sale represents a significant divestment from its traditional business [17]. Business Strategy - The sale is part of a strategy to increase investment in the water propulsion equipment sector, with the goal of becoming a world-class supplier in this field [17]. - The company has previously engaged in multiple cross-industry acquisitions, including the successful acquisition of Baisheng Power in 2015, which is now the main operator of its water propulsion equipment business [17][18]. Market Position - Baisheng Power's main product is outboard motors, which are characterized by high technical value. However, the company faces significant competition from established brands like Yamaha and Mercury, with Baisheng's revenue in 2024 being less than $10 million compared to Yamaha's $2.141 billion [19][19]. - The outboard motor business has shown weak profitability, with a gross margin of 21.38% in the first half of 2025, significantly lower than the company's traditional corrugated packaging equipment business [19]. Challenges and Risks - The company has faced challenges in its cross-industry ventures, notably a significant impairment loss of 3.926 billion yuan related to its acquisition of a battery pack manufacturer, highlighting the risks associated with entering new industries without prior experience [20][21]. - The company is also venturing into the field of embodied intelligence, competing with both emerging startups and established electronics giants, which adds to the complexity of its strategic direction [24].

Group 1: Strategic Focus and Asset Sale - The company aims to optimize resource allocation and focus on domestic development of technology and new productivity businesses by selling certain assets, with a strategic shift towards emerging industries [2][4][7]. - The asset sale is part of the company's commitment to the national "new productivity" strategy and technology transformation, with a focus on high-end intelligent equipment manufacturing [3][5][7]. - The base consideration for the asset sale is €774 million, which will be prudently managed to support the implementation of the technology transformation strategy [8]. Group 2: Business Development and Investment - The company plans to increase investment in its water propulsion equipment business, particularly in the subsidiary Baisheng Power, which has seen a compound annual growth rate (CAGR) of over 20% in revenue and net profit over the past five years [9][10]. - Baisheng Power is positioned to become a world-class supplier of water propulsion equipment, with a focus on developing high-horsepower outboard engines [11]. - The company has made strategic investments in artificial intelligence and robotics, as well as controllable nuclear fusion, to align with national development strategies and explore new growth areas [12][13][15]. Group 3: Market Position and Future Outlook - The global market for outboard engines exceeds $100 billion, with leading brands like Yamaha and Mercury generating significant revenues, highlighting the growth potential for Baisheng Power [10]. - The new manufacturing base in Suzhou is expected to enhance production capacity and support the launch of advanced products, contributing to future sales growth [11]. - The company is committed to enhancing shareholder returns, having distributed over ¥2.1 billion in dividends and share buybacks since its listing [8].