Core Viewpoint - Chongqing New Aluminum Era Technology Co., Ltd. has disclosed significant information regarding its half-year performance, cost control strategies, third-quarter order expectations, and the progress of the acquisition of Honglian Electronics during a specific institutional research meeting held on September 15, 2025 [1] Group 1: Financial Performance - In the first half of 2025, the company reported revenue of 1.544 billion yuan, representing a year-on-year increase of 68.82% [1] - The net profit attributable to shareholders was 140 million yuan, reflecting a year-on-year growth of 37.33% [1] - The company has secured long-term supply agreements with major clients such as CATL, Zhongxin Hang, Yutong, and Xugong New Energy, with stable mass production orders from key customers like BYD, CATL, and Geely [1] Group 2: Cost Control Strategies - The management is optimizing the organizational structure to reduce costs and improve efficiency [1] - Production management is leveraging automation and machine replacement to lower labor and manufacturing costs while enhancing technical standards for cost reduction [1] - The new generation automated production line for new energy battery boxes, funded by the company's investment projects, showcases its technical strength and supports future development [1] Group 3: Order Expectations and Acquisition Progress - The company is currently experiencing stable and orderly production operations, with sales data to be disclosed in the upcoming periodic report [1] - The acquisition of Honglian Electronics has been accepted by the Shenzhen Stock Exchange, but it still requires approval from the China Securities Regulatory Commission, introducing uncertainty regarding the final approval timeline [1] - The acquisition is a key strategic move for the company, as Honglian Electronics specializes in precision components, which will enhance the company's product offerings and market reach, leveraging synergies in raw materials, technology, and sales channels [1]

Financial Performance - The company reported a revenue of 1.544 billion, representing a year-on-year growth of 68.82% [2] - The net profit attributable to shareholders was 140 million, with a year-on-year increase of 37.33% [2] Cost Management Strategies - The management is focused on optimizing the management structure to reduce costs and improve efficiency [3] - Automation upgrades and technological advancements are being implemented to lower labor and manufacturing costs [3] - The new automated production line for battery boxes is designed to meet customer needs efficiently, showcasing the company's technological capabilities [3] Order Status - The company is experiencing stable production and operations, with sales data to be disclosed in upcoming reports [4] Acquisition Progress - The company has received acceptance notification from the Shenzhen Stock Exchange for the acquisition of Honglian Electronics, pending further regulatory approvals [5] - The timeline for approval remains uncertain, and the company will disclose updates as required by regulations [5] Strategic Rationale for Acquisition - Honglian Electronics specializes in high-precision components, which aligns with the company's focus on high-performance aluminum products for the new energy vehicle sector [7] - The acquisition aims to fill the demand gap in the 3C industry for high-precision materials, enhancing the company's product offerings and market reach [7] - There are significant synergies in raw materials, technology, and sales channels between the company and Honglian Electronics, which can drive innovation and market expansion [7]

Revenue and Client Dependency - The company's revenue increased by 68.82% year-on-year in the first half of the year, primarily due to an increase in battery box orders [3] - Long-term supply agreements have been signed with major clients such as CATL, Zhongxin Aviation, Yutong, and XCMG, significantly improving client dependency issues [3] Profitability and Financial Performance - The company's gross margin decreased due to market pressure leading to price reductions, aligning with the "volume up, price down" market trend [3] - Financial expenses rose primarily due to increased debt certificate factoring [3] Strategic Acquisitions - The acquisition of Honglian Electronics is part of the company's strategic development, focusing on high-precision aluminum products for the new energy vehicle sector [4] - The core product of Honglian Electronics includes a super high-precision pivot, which has applications in the robotics field [4] Investment Projects 1. Lightweight High-Strength New Energy Vehicle Components Project - Located in Nanchuan District, Chongqing, this project aims to produce 800,000 sets of lightweight high-strength components, enhancing product structure and market share [7] 2. New Aluminum Era Automotive Lightweight Components Project - This project will serve as the management headquarters and R&D center, focusing on components for new energy vehicles and 3C products [7] 3. Chongqing Qijiang New Aluminum Era Aluminum Alloy Recycling Project - This project aims to build 80,000 tons of high-end aluminum rods and 40,000 tons of extruded profiles, enhancing upstream supply capabilities [8] Risk Considerations - Currently, the company is in the product development stage for aluminum body and robotics sectors, with no confirmed orders, leading to uncertainty regarding mass production [5][10] - Investors are advised to exercise caution and be aware of potential risks associated with ongoing projects [6][10]

Core Viewpoint - Chongqing New Aluminum Era Technology Co., Ltd. plans to issue shares and pay cash to acquire the equity of Dongguan Honglian Electronics Co., Ltd., necessitating an asset valuation report for the shareholders' equity involved in this transaction [5][9]. Group 1: Valuation Purpose and Scope - The purpose of the valuation is to provide a market value reference for the acquisition of Dongguan Honglian Electronics Co., Ltd. by Chongqing New Aluminum Era Technology Co., Ltd. [5][9]. - The valuation object is the total equity value of Dongguan Honglian Electronics Co., Ltd. [5][9]. - The valuation scope includes all assets and liabilities of Dongguan Honglian Electronics Co., Ltd., covering current assets, long-term equity investments, fixed assets, intangible assets, and other non-current assets, as well as current and non-current liabilities [5][9]. Group 2: Valuation Methodology and Results - The valuation date is set for March 31, 2025, and the valuation methods employed are the asset-based approach and the income approach [5][9]. - The valuation report indicates that the total book value of assets for Dongguan Honglian Electronics Co., Ltd. is 1,066.96 million yuan, total liabilities are 708.87 million yuan, and the net asset book value is 358.09 million yuan. The market value of the shareholders' equity, as determined by the income approach, is 1,310.47 million yuan, reflecting an increase of 952.38 million yuan and a growth rate of 265.96% [5][9]. Group 3: Company Profiles - Chongqing New Aluminum Era Technology Co., Ltd. is located in Fuling District, Chongqing, with a registered capital of 1,438.41 million yuan and was established on December 18, 2015. Its business scope includes technology services, production, and sales of aluminum materials and automotive parts [5][6]. - Dongguan Honglian Electronics Co., Ltd. is based in Dongguan, Guangdong Province, with a registered capital of 60 million yuan and was established on November 17, 2009. The company specializes in the research, production, and sales of electronic products and metal products [6][7].