Summary of the Conference Call for Sanlian Forging Company Overview - **Company**: Sanlian Forging - **Industry**: Forging and manufacturing of automotive components Key Financial Performance - **2025 H1 Revenue**: 775 million RMB, a year-on-year increase of 6.86% [3] - **Net Profit**: 71 million RMB, with a non-recurring net profit of 69 million RMB, representing growth of 3.88% and 5.93% respectively [3] - **Full Year Growth Expectation**: Anticipated revenue and profit growth in the range of 5%-10% for the entire year [2] Customer Structure - **Top Customers**: - ZF Friedrichshafen (ZF) increased its share to 20%, potentially surpassing Schaeffler as the largest customer by year-end [2][5] - The top five customers account for 56%-57% of total revenue, maintaining stability in customer structure [5] Profitability and Margins - **Gross Margin Performance**: - Domestic gross margin under pressure due to new factory trials in Wuhu, with losses of approximately 10 million RMB expected to break even by year-end [6] - Export gross margin improved significantly due to product structure adjustments and reduced pricing pressure abroad [6] Business Segments and Growth Drivers - **Steering Knuckle and Fork Business**: - Growth driven by increased project volume from ZF [7] - New orders from Xinxiang Jinruiteng contributed to revenue growth in the fork business [7] - **New Projects**: - BMW Air Suspension and Ideal Motor Shaft projects have commenced supply, with IGBT copper plates gradually ramping up [8] - Focus on product development in robotics, with positive feedback on linear detectors [9] International Expansion - **Morocco Factory Plans**: - First overseas factory planned in Morocco with an initial investment of 120 million RMB, aimed at serving the European market [2][25] - Expected to begin construction by year-end or early next year, with a total investment of 600-700 million RMB over five years [25][28] - **Customer Commitment**: - While no formal commitments from customers, there are verbal assurances of prioritizing projects at the Moroccan facility [12][33] Future Revenue Projections - **2026 Revenue Expectations**: - Anticipated revenue of 1.8 to 1.9 billion RMB, driven by several key projects including the aluminum control arm for BMW and IGBT copper plate projects [4][19] R&D and Product Development - **New Product Development**: - RGBT cooling copper plates and thermal management systems expected to enter production in 2025 and 2026 [4][13] - Investment of 80 million RMB in precision forging components, focusing on robotics and aerospace parts [4][13] Challenges and Market Conditions - **Cost and Pricing**: - Higher costs in Morocco due to supply chain issues, with overseas pricing generally higher than domestic [29][30] - Customers are generally understanding of the price differences, seeking reasonable profit margins for long-term partnerships [30] Conclusion - **Overall Outlook**: - The company maintains a positive outlook for future growth, particularly in overseas markets, while continuing to enhance product quality and production efficiency [10][12]

人民财讯8月27日电，三联锻造（001282）8月27日晚间公告，公司拟发行可转债募集资金总额不超过 6.5亿元，将用于新能源汽车零部件精密加工项目、汽车轻量化锻件生产(一期)项目、精密锻造零部件研 发项目、汽车精密锻件摩洛哥生产基地项目(一期)及补充流动资金。 ...

Fundraising Plan - The company plans to issue convertible bonds to raise a total of no more than 790 million yuan, with the adjusted amount for this issuance being no more than 650 million yuan after deducting excess funds from previous fundraising [1][2][3]. Project Necessity and Feasibility - The company aims to enhance its competitive advantage and profitability by investing in precision machining projects for automotive parts, aligning with industry trends towards one-stop procurement [4][5]. - The establishment of dedicated production lines will improve product quality stability and supply chain efficiency, addressing the increasing demands from downstream customers [6][7]. - The rapid growth of the new energy vehicle market necessitates an expansion of production capacity to meet rising demand for components like motor shafts and gears [8][9]. Market Potential - The global automotive parts market is projected to grow significantly, with an estimated market size of 2,061.64 billion USD in 2024, driven by the increasing demand for electric vehicles [8][9]. - The company has established strong relationships with major automotive clients, including Bosch and Magna, ensuring a stable customer base and ongoing demand for its products [9][15]. Technological and Operational Advantages - The company has accumulated extensive experience in production management and technology development, which supports the successful implementation of new projects [16][17]. - The introduction of advanced equipment and automation in production processes enhances the company's ability to meet high precision and efficiency standards [10][19]. Strategic Expansion - The establishment of a production base in Morocco aligns with the company's strategy to diversify its global production network and respond to international market demands [22][23]. - This move is expected to mitigate risks associated with international trade tensions and enhance the company's competitiveness in the European market [24][25]. Policy Support - The company benefits from favorable national policies promoting the development of the new energy vehicle industry, which supports its strategic initiatives [14][20]. - Local government incentives in Morocco further enhance the investment environment for the company's overseas expansion [28].

Core Viewpoint - Wuhu Sanlian Forging Co., Ltd. plans to issue convertible bonds to raise up to RMB 650 million for various investment projects, including precision forging and lightweight automotive components [5][16]. Group 1: Issuance Overview - The company intends to issue convertible bonds that can be converted into company shares, with a total fundraising amount not exceeding RMB 650 million [5]. - The bonds will have a face value of RMB 100 each and a term of 6 years from the issuance date [5][7]. - The interest rate will be determined based on market conditions and company specifics, with annual interest payments [5][6]. Group 2: Financial Information - As of June 30, 2025, the company's total assets amounted to approximately RMB 2.62 billion, showing a significant increase from RMB 1.31 billion in 2022 [21][22]. - The company's total liabilities were approximately RMB 1.02 billion, with a notable rise in short-term borrowings to RMB 598 million [22]. - The total equity attributable to shareholders reached approximately RMB 1.60 billion, reflecting growth from RMB 642 million in 2022 [22]. Group 3: Fund Utilization - The net proceeds from the bond issuance will be allocated to projects such as precision machining for new energy vehicle components and the production of lightweight forged automotive parts [16][17]. - The company has previously used excess funds from prior fundraising for working capital, with a portion of these funds now redirected to ongoing projects [17][18].

Core Viewpoint - The company plans to issue convertible bonds to unspecified investors, which may dilute immediate returns for existing shareholders, and has proposed measures to mitigate this impact [1][2][3] Group 1: Financial Impact Analysis - The issuance of convertible bonds is expected to dilute immediate returns based on various assumptions regarding the conversion of bonds into shares by June 30, 2026, and December 31, 2026 [2][4] - If all bonds are converted by June 30, 2026, the total share capital will increase to 252,432,226 shares, while if none are converted, it will remain at 222,185,600 shares [2][4] - The company has provided projections for net profit per share under different growth scenarios (0%, 10%, and 20% increases) for 2025 and 2026, indicating potential impacts on earnings per share [3][5] Group 2: Fundraising and Project Allocation - The total amount to be raised from the bond issuance is capped at 79,000 million yuan, with a net amount of up to 65,000 million yuan after deducting issuance costs [8][10] - The funds will be allocated to projects related to the company's existing business, including precision forging and automotive lightweight components [10][11] Group 3: Measures to Mitigate Dilution - The company has committed to implementing specific measures to ensure effective use of the raised funds and to mitigate the dilution of immediate returns for shareholders [15][16] - A detailed management system for the raised funds has been established, ensuring compliance with relevant laws and regulations [16][17] Group 4: Commitment from Management - The company's board of directors and senior management have made commitments to ensure the fulfillment of measures aimed at compensating for the dilution of immediate returns [18] - The controlling shareholders and actual controllers have also pledged not to interfere with the company's management and to uphold the interests of shareholders [18]