Summary of Key Points Core Viewpoint The report outlines the usage of previously raised funds by Aotega New Energy Technology Co., Ltd., detailing the amount raised, its allocation, and the adjustments made to investment projects, including the termination of the "Central Research Institute" project and the reallocation of remaining funds to enhance liquidity. Group 1: Fundraising and Allocation - The company raised a total of RMB 442.64 million through a non-public offering of 111,898,727 shares at RMB 3.95 per share, approved by the China Securities Regulatory Commission on December 7, 2020 [1] - As of December 31, 2024, the total amount in the special account for the raised funds was RMB 432 million, with a difference of RMB 5.52 million due to unpaid issuance costs [1] - The company has made adjustments to the implementation of fundraising projects, including changing the project subject and location for the "Annual Production of 600,000 Electric Compressors" project to its wholly-owned subsidiary [1][2] Group 2: Fund Usage and Adjustments - The company decided to terminate the "Central Research Institute" project, reallocating the remaining funds of RMB 26.20 million to permanently supplement working capital [1][6] - The "Annual Production of 3.6 million Compressor Pistons" project was adjusted from an initial target of 15 million units, with surplus funds of RMB 1.12 million used to supplement working capital [1][5] - The company has utilized idle funds for cash management, including a plan to use up to RMB 55 million for short-term bank deposits, enhancing liquidity while ensuring capital safety [2][3] Group 3: Project Performance and Economic Impact - The cumulative returns from the "Annual Production of 3.6 million Compressor Pistons" project fell below the promised returns by over 20%, primarily due to reduced demand for fuel vehicle components and declining procurement prices [8][9] - The "Central Research Institute" project did not generate direct economic benefits and could not be evaluated separately, as its impact is tied to the overall performance of the company [8][9] - The company has confirmed that all fundraising projects have been completed or terminated, with a total of RMB 29.66 million in surplus funds from these projects to be permanently supplemented into working capital [7][8]

Core Viewpoint - The company aims to enhance its strategic focus on "cold and warm connection solutions and core components for compressors" and "automotive components" to navigate dual challenges from industry dynamics and domestic economic restructuring, emphasizing high-quality development and transformation [1]. Group 1: 2024 Business Overview - The company achieved a record high in sales of rotary compressors, with the Chinese rotary compressor industry sales reaching 297 million units in 2024, marking a year-on-year increase [1]. - The gross margin for the compressor and related refrigeration equipment business was 12.30%, an increase from the previous year [1]. - The subsidiary, Haili Marelli, showed significant performance improvement, focusing on operational management and cost control, leading to a notable enhancement in profitability [1]. Group 2: Board of Directors' Activities - The board approved several key resolutions, including the establishment of a factory in Thailand and the reappointment of the auditing firm for 2024 [2]. - The company distributed cash dividends of 0.10 yuan per share to all shareholders based on a total share capital of 1,077,769,006 shares [2]. Group 3: Financial Performance - The company reported a revenue of 1,874,708 million yuan in 2024, a 10.08% increase from 2023 [25]. - The net profit for the year was 1,669 million yuan, recovering from a loss of 7,398 million yuan in the previous year [25]. - The total assets increased by 10.44% to 2,349,457 million yuan, with current assets rising by 13.36% [29]. Group 4: Internal Control and Risk Management - The company implemented 35 internal control audit projects, enhancing oversight of overseas subsidiaries [10]. - A comprehensive risk assessment model was established to improve risk identification and management across all entities [12]. Group 5: Future Work Strategy - The company plans to continue its dual business strategy with a focus on globalization and digital transformation, aiming to enhance governance and risk management capabilities [13]. - Emphasis will be placed on green and low-carbon technology development, integrating sustainability into all operational aspects [14].

Group 1: Company Financials and Capital Management - The company plans to issue shares to its controlling shareholder at a price compliant with regulations, aimed at quickly enhancing capital for operations and R&D [2] - In 2024, the company expects an 18.78% revenue growth, primarily driven by the expansion of its automotive thermal management and energy storage liquid cooling markets [5] - The company is preparing to apply for a public offering of shares, with announcements to follow once materials are ready [1] Group 2: Stock Price and Market Management - The company acknowledges that stock price management is complex and influenced by various factors, and it aims to enhance investor relations and transparency [3] - The impact of shareholder Wang Jinfeng's judicial share reduction on stock price is being monitored, with expectations that its influence will diminish as his holdings decrease [7] Group 3: Technology and Product Development - The company has developed modular automotive air conditioning systems and is collaborating with suppliers to enhance control module adaptability for complex temperature management needs in electric vehicles [4] - The company is interested in expanding its thermal management technology into the rapidly growing liquid cooling market for computing servers, although detailed plans are not yet established [4] Group 4: Market Strategy and Customer Relations - The company aims to expand its customer base among domestic mainstream automotive brands while enhancing product coverage and increasing the share of new models [8] - The company maintains strong technical cooperation with both international and domestic electric vehicle brands to meet diverse technical requirements [8] Group 5: Future Outlook and Support - The company is a key player in the automotive parts sector of the Changjiang Industrial Group, which is expected to provide support for mergers and acquisitions to strengthen its market position [9] - The controlling shareholder is optimistic about the company's future and has provided significant assistance in reducing financing costs and expanding customer resources [9]