Core Viewpoint - The company, Shanzi High-Tech Co., Ltd. (山子高科), is undergoing a strategic shift by selling 80% of its subsidiary, Yunfeng Automobile Co., Ltd. (云枫汽车), for 24.6 million yuan to focus on enhancing its core business and improving operational efficiency [2][5]. Group 1: Company Overview - Shanzi High-Tech, formerly known as Yinyi Co., Ltd., has transitioned from a real estate focus to a concentration on vehicle manufacturing, including both traditional and new energy vehicles [3]. - The company has established a comprehensive manufacturing ecosystem that includes high-end components, vehicle manufacturing, and semiconductor materials [6]. Group 2: Financial Performance - In 2024, Yunfeng Automobile generated revenue of 513 million yuan, contributing 10.20% to Shanzi High-Tech's total revenue, but reported a net loss of 75.71 million yuan [4]. - For the first quarter of 2025, Yunfeng's revenue was 127 million yuan, continuing to incur a net loss of 30.80 million yuan [4]. - Shanzi High-Tech's overall revenue for 2024 was 4.97 billion yuan, with a net profit loss of 1.73 billion yuan, marking a 6.85% decline in revenue year-on-year [7]. Group 3: Strategic Decisions - The decision to sell Yunfeng Automobile is aimed at reallocating resources to enhance the development of new vehicle models, thereby improving the company's competitive edge [5]. - Despite the strategic rationale, there was dissent from a board member regarding the potential legal risks and the alignment of this sale with the company's previous plans [5]. Group 4: Market Position and Future Outlook - The automotive industry in China has shown growth, with production and sales reaching 31.28 million and 31.43 million units respectively in 2024, reflecting a year-on-year increase of 3.7% and 4.5% [6]. - Shanzi High-Tech's vehicle production in 2024 included 8,970 passenger vehicles, with significant exports to countries along the Belt and Road Initiative [7]. - The company is also focusing on high-end manufacturing, with its subsidiary, Belgium's Bongi, making strides in the global market for automotive transmissions [8].