Company Overview - The company maintains a high capacity utilization rate, with production levels dependent on vehicle sales. It plans to expand production lines based on market demand for specific projects [2]. - The company has technical reserves for its EMB products, which are not yet mass-produced. Market launch dates will depend on customer project schedules [2][3]. - The company has focused on corner module technology, integrating various systems to enhance vehicle functionality and support the development of intelligent driving [3]. Financial Performance - The company's gross profit margin has improved due to increased domestic vehicle sales and new international projects, alongside ongoing product structure optimization and cost reduction efforts [3]. - The company faces annual price reduction pressures from vehicle manufacturers but aims to optimize product structure and enhance internal management to address these challenges [4]. Competitive Position - As a leading domestic automotive brake system manufacturer, the company positions itself as a competitor to international brands, offering customized products with advantages in cost-effectiveness, service, and responsiveness [6]. - The company is actively pursuing opportunities as domestic automakers increase local supplier development and procurement [6]. Future Developments - Currently, the company does not have a robotics division but is researching components that may be used in robotic applications, such as ball screws and brushless motors [5].

Core Viewpoint - The company has been focusing on the development of corner module technology, aiming to provide comprehensive and systematic solutions for vehicles, which enhances the functionality and customization of automotive applications [1] Group 1 - The company integrates hub motors, electronic mechanical brakes (EMB), steering knuckles, active suspension, and chassis domain controllers into its solutions [1] - This integration allows for independent control of various vehicle systems, revolutionizing traditional Ackermann steering and enabling features such as in-place steering and lateral movement [1] - The advancements significantly expand the application scenarios for vehicles, catering to user demands for personalized and customized travel experiences [1] Group 2 - The developments lay a solid foundation for the widespread adoption of intelligent driving technologies [1]

Group 1: Company Performance - The company's gross profit margin has improved due to increased domestic automobile sales and the launch of new international projects, leading to a steady growth in performance [1] - The company is actively optimizing its product structure and enhancing internal cost reduction and efficiency measures, which effectively boosts manufacturing capabilities and gross profit margins [1] Group 2: Product Development - The company has technical reserves for its EMB products, which are not yet mass-produced; market launch dates depend on customer project plans [1] - The company has been focusing on corner module technology, providing comprehensive solutions that integrate hub motors, EMB, steering systems, active suspension, and chassis domain controllers, enabling independent control of vehicle systems [2] Group 3: Market Trends - The proportion of sales related to new energy vehicles is increasing year by year, correlating positively with the production and sales of downstream new energy vehicles [2] - The company aims to secure more clients and projects by offering essential braking systems, automotive electronics, and wheel motor products for new energy vehicles [2] Group 4: Operational Challenges - The company faces annual price reduction demands from vehicle manufacturers and is working to optimize product structure and improve internal management to address pricing pressures [2] - The Moroccan production base project is progressing in an orderly manner [2]

Core Viewpoint - The automotive parts giant Berteli is expanding into embodied intelligence and low-altitude economy, with a focus on humanoid robots and related core components [1][3]. Financial Performance - In the first half of the year, Berteli achieved revenue of 5.164 billion, a year-on-year increase of 30.0%, and a net profit attributable to shareholders of 522 million, up 14.2% [3]. - However, the second quarter saw a significant decline in growth, with revenue of 2.526 billion, a quarter-on-quarter decrease of 4.2%, and a net profit of 252 million, down 6.8% [3]. - The gross profit margin for the first half of the year was 18.56%, down from 22.14% in the same period over the past three years [3][4]. Future Growth Prospects - The company anticipates continued revenue growth in the second half of the year based on customer demand plans [3]. - Berteli's gross profit margin is expected to improve as the number of project orders increases and the proportion of smart electronic control products rises [4]. - In the second quarter, Berteli added 162 new projects, a year-on-year increase of 80.0%, with expected annualized revenue of 4.18 billion from these projects [5]. Technological Advancements - The automotive industry is transitioning from electrification to intelligence, with a focus on high-level autonomous driving requiring redundancy in braking and steering systems [6]. - Berteli is advancing in the development of Electronic Mechanical Braking (EMB) systems, which are seen as a future direction for line control braking [6][7]. - The company is also working on integrated chassis systems that combine braking, steering, and suspension, which are expected to provide competitive advantages [7]. Investment and Market Position - Berteli has established a fund for investing in humanoid robots and low-altitude economy sectors, with the fund already registered with the China Securities Investment Fund Association [7]. - Despite recent stock performance concerns from investors, the company believes its value is underestimated, with a closing stock price of 51 yuan and a market capitalization of 30.93 billion [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q2 gross margin improved sequentially but remains under pressure, with notable growth in electronic and overseas business [3][9] - The company reported a revenue of 5.16 billion yuan in the first half of 2025, a year-on-year increase of 30.0%, and a net profit of 522 million yuan, up 14.2% year-on-year [8][9] - The company is expanding its production capacity and advancing technology development to strengthen its long-term growth foundation [9] Financial Performance Summary - For 2023A, total revenue is projected at 7.474 billion yuan, with a year-on-year growth of 34.93% [1] - The net profit attributable to the parent company for 2023A is estimated at 891.50 million yuan, reflecting a year-on-year increase of 27.57% [1] - The latest diluted EPS for 2023A is 1.47 yuan per share, with a P/E ratio of 32.44 [1] Revenue and Profit Forecast - Revenue forecasts for 2025-2027 are 12.92 billion yuan, 15.50 billion yuan, and 18.38 billion yuan, with year-on-year growth rates of 30%, 20%, and 19% respectively [9] - The net profit attributable to the parent company for 2025-2027 is projected at 1.44 billion yuan, 1.74 billion yuan, and 2.08 billion yuan, with year-on-year growth rates of 19%, 21%, and 20% respectively [9] Margin Analysis - The gross margin for Q2 2025 is reported at 19.19%, showing a sequential recovery but still under pressure year-on-year [3] - The company’s net profit margin for Q2 2025 is 9.98%, reflecting a significant year-on-year decline primarily due to pressure on gross margins [3]

Core Viewpoint - Wuhu Berteli Automotive Safety Systems Co., Ltd. plans to use its own funds to lend to Wuhu Berteli Mexico Co., Ltd. for the payment of a project, which will later be replaced with raised funds to ensure project operation and fund security [1][5]. Fundraising Basic Situation - The company has issued 28,020,000 convertible bonds with a total fundraising amount of RMB 2,802,000,000, with a net amount of RMB 2,789,650,905 after deducting issuance costs [1][2]. Fundraising Investment Project Situation - The raised funds will be used for various projects, including the "720 million lightweight components and 200 million brake calipers project" in Mexico, with a total investment of USD 16.5 million [5][6]. Reason for Using Own Funds - The use of self-funds is necessary due to the nature of the project involving overseas construction and procurement, which requires payments in multiple currencies that cannot be directly handled by domestic fundraising accounts [5][6]. Specific Operation Process - The process involves the approval of payment requests, signing contracts, and ensuring that the funds used will be replaced with raised funds in a timely manner, with oversight from the company and sponsor institutions [6][7]. Impact on the Company - The operation of using self-funds for project payments does not affect the normal implementation of investment plans and does not change the direction of raised funds or harm shareholder interests [6][7]. Special Opinions - The supervisory board and sponsor institution have both agreed that the use of self-funds for project payments is necessary and does not harm the company's or shareholders' interests [7][8].

Core Points - Wuhu Berteli Automotive Safety Systems Co., Ltd. plans to use raised funds to replace self-raised funds that were previously invested in fundraising projects and paid issuance expenses totaling RMB 3.1475 million [1][4][5] - The company issued 28,020,000 convertible bonds with a total fundraising amount of RMB 2.802 billion, netting RMB 2.78965 billion after deducting issuance costs [1][2][3] Fundraising Overview - The total amount raised from the issuance of convertible bonds is RMB 2.802 billion, with issuance costs amounting to RMB 12.3490946 million, resulting in a net amount of RMB 2.7896509054 billion [1][2] - All raised funds are stored in a special account approved by the board of directors [2] Investment Project Adjustments - The company has adjusted the planned investment amounts for various projects, including: - Electronic Mechanical Brake (EMB) R&D and industrialization project: Adjusted from RMB 50 million to RMB 22.645 million - High-strength aluminum alloy casting project: Remains at RMB 31.091 million - Working capital: Adjusted from RMB 81.9533 million to RMB 80.71839 million - The total planned investment amount was adjusted from RMB 336.94905 million to RMB 280.2 million [2][3] Pre-investment and Issuance Expenses - As of July 29, 2025, the company has pre-invested RMB 716.6213 million of self-raised funds into fundraising projects [3] - The total issuance expenses amounted to RMB 12.3491 million, with RMB 3.1475 million paid from self-raised funds [3][4] Compliance and Approval - The board of directors approved the use of raised funds to replace pre-invested self-raised funds, ensuring compliance with relevant regulations and that the replacement does not affect the normal progress of fundraising projects [4][5] - The supervisory board and accounting firm confirmed that the procedures followed are in accordance with regulatory requirements [5][6]

Core Viewpoint - The company plans to use raised funds to increase capital or provide loans to its wholly-owned subsidiaries for the implementation of fundraising projects, ensuring the smooth execution of these projects and aligning with the company's development strategy [1][5][9]. Fundraising Overview - The company raised a total of RMB 2,789,650,905.40 through the issuance of 28,020,000 convertible bonds at a face value of RMB 100 each, as approved by the China Securities Regulatory Commission [1][2]. - The total amount intended for investment projects is RMB 280,200.00 million, with adjustments made based on the actual fundraising amount after deducting issuance costs [2][3]. Fund Allocation - The company will allocate RMB 42,899.94 million to Wuhu Berteli Electronic Control Systems Co., Ltd., RMB 24,477.43 million to Weihai Berteli Automotive Safety Systems Co., Ltd., and RMB 59,207.19 million to Wuhu Berteli Mexico LLC for various projects [3][8]. - The projects include the development and industrialization of electronic mechanical brakes, line control chassis brake systems, and electronic parking brake systems, among others [3][5]. Subsidiary Information - Wuhu Berteli Electronic Control Systems Co., Ltd. has total assets of RMB 159,654.70 million and net assets of RMB 71,152.60 million as of March 31, 2025 [5]. - Weihai Berteli Automotive Safety Systems Co., Ltd. reported total assets of RMB 165,136.44 million and net assets of RMB 137,267.44 million as of March 31, 2025 [6]. - Wuhu Berteli Mexico LLC has total assets of RMB 132,930.10 million and net assets of RMB 23,483.07 million as of March 31, 2025 [7]. Purpose and Impact of Fund Usage - The use of raised funds for capital increase or loans is aimed at ensuring the successful implementation of fundraising projects, which aligns with the company's strategic goals and complies with relevant laws and regulations [8][9]. - The company maintains control over its subsidiaries during the funding period, minimizing financial risks [8]. Fund Management - The raised funds will be managed in a dedicated account, and a four-party supervision agreement will be established to ensure compliance with regulations [8]. - The company will adhere to the relevant disclosure obligations as per legal requirements [8]. Approval Process - The board of directors and the supervisory board approved the use of raised funds for the subsidiaries during meetings held on July 30, 2025, without the need for shareholder approval [8][9].

Overview - The company plans to utilize a maximum of 1,300 million RMB of idle raised funds for cash management, with a usage period not exceeding 12 months [1][2][6]. Cash Management Purpose - The objective is to enhance the efficiency of fund utilization without affecting the construction of fundraising projects and normal operations, thereby increasing returns for the company and its shareholders [2][6]. Cash Management Amount - The maximum amount for cash management is set at 1,300 million RMB, which can be used in a rolling manner within the specified period [2][5]. Fund Source and Related Information - The funds for cash management will come from temporarily idle raised funds, which were raised through the issuance of convertible bonds totaling 2,802 million RMB, with a net amount of 2,790 million RMB after deducting issuance costs [2][3]. Investment Products - The company will invest in high-security, liquid, principal-protected financial products, including but not limited to structured deposits, time deposits, and large-denomination certificates of deposit [4][7]. Investment Management - The board of directors has authorized the management team to handle the purchase of cash management products, including selecting qualified financial institutions and signing relevant contracts [5][6]. Approval Process - The cash management plan was approved in the ninth meeting of the fourth board of directors and the ninth meeting of the fourth supervisory board, and does not require submission to the shareholders' meeting [5][6]. Risk Control Measures - The company will implement strict risk control measures and ensure compliance with relevant laws and regulations to protect the safety of the funds [7][8]. Impact on the Company - The cash management of idle funds will not affect the normal construction of fundraising projects and is expected to improve fund utilization efficiency and increase returns for the company and its shareholders [7][8]. Sponsor Institution's Opinion - The sponsor institution has confirmed that the cash management plan complies with relevant regulations and will not change the purpose of the raised funds, thus benefiting the company and all shareholders [8].

Summary of Key Points Core Viewpoint The company, Wuhu Berteli Automotive Safety Systems Co., Ltd., is utilizing raised funds to replace pre-invested self-raised funds and paid issuance expenses, following regulatory compliance and internal approvals [1][6][9]. Group 1: Fundraising Overview - The company issued 28,020,000 convertible bonds with a total fundraising amount of RMB 2,802,000,000, resulting in a net amount of RMB 2,789,650,905 after deducting issuance costs of RMB 12,349,094.60 [1][2]. - All raised funds are stored in a special account approved by the board of directors to ensure proper management and usage [2]. Group 2: Fund Allocation and Adjustments - The total planned investment for projects was RMB 336,949.05 million, with the adjusted amount for raised funds being RMB 278,965.09 million [2][3]. - Specific project funding adjustments include: - Electronic Mechanical Brake (EMB) project: adjusted from RMB 50,000.00 to RMB 22,645.00 million - High-strength aluminum alloy casting project: adjusted from RMB 35,000.00 to RMB 31,091.00 million - Working capital: adjusted from RMB 81,953.30 to RMB 80,718.39 million [2][3]. Group 3: Pre-Investment and Issuance Expenses - As of July 29, 2025, the company pre-invested RMB 71,662.13 million of self-raised funds into the projects [3][5]. - The total issuance expenses amounted to RMB 1,234.91 million, with RMB 314.75 million paid from self-raised funds [5][6]. Group 4: Compliance and Approval Process - The board of directors approved the use of raised funds to replace pre-invested self-raised funds and paid issuance expenses, totaling RMB 71,976.88 million [6][8]. - The monitoring committee confirmed that the procedures followed comply with relevant regulations and do not affect the normal progress of the fundraising projects [8][9]. - The sponsor institution verified that the replacement of funds aligns with the implementation plan and adheres to regulatory requirements [9].