Core Viewpoint - The company, Wuhu Berteli Automotive Safety Systems Co., Ltd., is utilizing its own funds to pay for part of the fundraising investment projects and will replace these with raised funds, ensuring compliance with regulatory requirements and maintaining the integrity of the fundraising process [1][6]. Fundraising Overview - The company has issued 28,020,000 convertible bonds with a face value of RMB 100 each, raising a total of RMB 2,802,000,000. After deducting issuance costs of RMB 12,349,094.60, the net amount raised is RMB 2,789,650,905.40 [1][2]. - All raised funds are stored in a special account approved by the board of directors to ensure proper management and protection of investor rights [2]. Investment Project Details - The total amount intended for investment in fundraising projects is capped at RMB 280,200.00 million, with adjustments made based on the actual net amount raised after deducting issuance costs [2][3]. - Specific projects include: - 60 million sets of Electronic Mechanical Brake (EMB) systems with an adjusted investment of RMB 18,821.80 million [3]. - 100 million sets of electronic control chassis brake systems with an adjusted investment of RMB 22,645.00 million [3]. - A project in Mexico for producing 7.2 million lightweight components and 2 million brake calipers, with a total investment of USD 16,500 million, calculated at an exchange rate of 1 USD = 7 RMB [3][4]. Use of Own Funds - The company plans to use its own funds to finance part of the investment project in Mexico due to the need for foreign currency transactions, which cannot be directly handled by the domestic fundraising account [4]. - The process involves borrowing from its own funds to the Mexican subsidiary, which will then use these funds for project payments, followed by a replacement with the raised funds [4][5]. Impact on the Company - The use of own funds for part of the investment does not affect the normal implementation of the investment plan and does not change the direction of the raised funds or harm shareholder interests [5][6]. Approval Process - The board of directors and the supervisory board approved the use of own funds for the investment project at meetings held on August 28, 2025 [5][6]. Sponsor's Verification Opinion - The sponsor, China International Capital Corporation, has verified that the company has followed necessary approval procedures and that the use of own funds does not impact the normal progress of the investment projects [6].

Core Viewpoint - The automotive industry's price-cutting trend has led to a continuous decline in valuations across the supply chain, yet savvy investors are beginning to acquire undervalued stocks, particularly in the intelligent driving sector [1] Group 1: Intelligent Driving Sector - The intelligent driving segment is a core investment theme in the automotive industry, with domestic new energy vehicle penetration exceeding 40%, but high-level intelligent driving penetration remains low, primarily at the L2 stage [1] - Companies like Xpeng and Tesla are leading the push for higher-level intelligent driving, with only a few models achieving L2+ and L3 capabilities [1] - The steer-by-wire system is a key component of high-level intelligent driving, and the global steering system leader, Nexteer (耐世特), is gaining investor interest [1] Group 2: Company Performance and Market Position - Nexteer's valuation has dropped by 7% recently but has increased by over 77% this year, driven by improved fundamentals and strong competitiveness in the steer-by-wire sector [1] - The company is strategically expanding into the steer-by-wire chassis sector to meet industry mass production demands, further enhancing its fundamentals [1] - Nexteer holds a strong position in the global automotive steering system market, ranking among the top three with a market share of 16.16% in China, second only to Bosch Huayu [2][4] Group 3: Financial Outlook - Despite being a market leader, Nexteer faces significant competitive pressure from price wars and domestic substitution in the Chinese market, with revenue growth slowing to only 1.65% in 2024 [4] - The company has a high customer concentration, with its top three clients contributing 68.8% of revenue, which poses operational risks if major clients like General Motors face performance issues [4] - In Q1 2025, Nexteer secured $800 million in new orders, a 60% year-on-year increase, with a significant rise in orders from Chinese clients, indicating strong product recognition [5][11] Group 4: Product Development and Market Trends - The steer-by-wire system is becoming mainstream as the automotive industry shifts from traditional hydraulic systems to electronic systems, with significant growth potential in the L2+ and L3 intelligent driving segments [7][10] - Nexteer's product portfolio includes traditional hydraulic and electric power steering systems, with a notable increase in orders for steering columns and intermediate shafts in 2025 [8] - The company has made breakthroughs in steer-by-wire technology, winning multiple orders from leading electric vehicle manufacturers, which positions it well for future growth [10] Group 5: Investment Sentiment - Several investment banks are optimistic about Nexteer's prospects, forecasting a compound annual growth rate of 29% in net profit from 2025 to 2027, supported by strong order growth and product diversification [11] - The intelligent driving sector remains a hot investment theme, with Nexteer's fundamentals and multiple growth drivers expected to support its market value in the long term [12]

Group 1 - The automotive steering system is gradually transitioning from EPS to steer-by-wire technology, which offers better responsiveness, enhanced autonomous driving capabilities, and improved emergency steering safety [1] - The steer-by-wire system is essential for L3+ autonomous driving, with significant advancements since its first mass production application in the 2013 Infiniti Q50 [1] - The company is experiencing a recovery in its main business profitability and is building a comprehensive steer-by-wire chassis product portfolio, integrating trends such as electrification, automation, and software-defined vehicles [1] Group 2 - The company's net profit margin has significantly improved, with a projected net profit of $61.72 million in 2024, a 68.1% increase from $36.74 million in 2023 [2] - The company secured project orders totaling $6 billion in 2024, with 31% from new business, including multiple steer-by-wire orders, showcasing its strong competitiveness [2] - The company plans to strategically expand into the steer-by-wire chassis field with the release of rear-wheel steering (RWS) and electronic mechanical brake (EMB) systems in the first half of 2025, further enhancing future growth potential [2] Group 3 - The company is forecasted to achieve revenues of $4.469 billion, $4.772 billion, and $5.068 billion from FY2025 to FY2027, with year-on-year growth rates of 4.5%, 6.8%, and 6.2% respectively [2] - The projected net profit for the same period is $121 million, $162 million, and $186 million, reflecting growth rates of 96.2%, 34.1%, and 14.4% respectively [2] - Given the rapid profit growth phase, the company has a target price of HKD 7.61 per share, indicating a 24% upside potential from the current price, with a corresponding FY2025E PE of approximately 19 times [2]