Core Viewpoint - Longying Intelligent Manufacturing (领益智造) has launched a new employee stock ownership plan (ESOP) for 2025, aiming to incentivize core employees and enhance performance through specific targets [2][3][4] Employee Stock Ownership Plan - The 2025 ESOP involves a maximum of 26.4 million shares, targeting up to 100 core employees, excluding major shareholders and their relatives [2][4] - The shares will be sourced from the company's repurchased stock, with a purchase price of 4.49 yuan per share, which is 54.20% of the average repurchase price of 8.3205 yuan per share [3][4] Performance Targets - The ESOP includes performance assessment goals, requiring revenue growth of at least 10%, 20%, and 30% from 2025 to 2027, or net profit growth of the same percentages [4] - Analysts suggest that maintaining a 10% growth rate over three consecutive years poses a significant challenge [4] Previous Incentive Plans - Since 2021, Longying has implemented five incentive plans, covering over 2,600 employees, including stock options and restricted stock plans [5][6] - The company has granted a total of 54.546 million stock options and 15.2234 million restricted shares to core employees in previous years [5][6] Financial Performance - In Q1 2023, Longying reported a net profit of 565 million yuan, a year-on-year increase of over 20% [2][9] - The company has seen fluctuations in net profit, with figures of 1.853 billion yuan in 2021, 2.051 billion yuan in 2022, and 1.753 billion yuan in 2024, reflecting a decline of 14.50% [8][9] R&D Investment - Longying has invested approximately 59.18 billion yuan in R&D over the past three years, with annual expenditures around 20 billion yuan [7][8] Industry Expansion - The company is diversifying its business from the "fruit chain" to the "car chain," with plans to enter the automotive parts market through the acquisition of a 66.46% stake in Jiangsu Kedasit [9] - Longying aims to explore new growth avenues in robotics, AI glasses, foldable screens, and servers by 2025 [9]

Core Viewpoint - Liyi Intelligent Manufacturing plans to acquire 66.46% of Jiangsu Kedastern Automotive Technology Co., Ltd. for 332 million yuan, marking its entry into the automotive trim industry [1] Group 1: Acquisition Details - The acquisition involves issuing convertible bonds and cash to eight parties, with a total transaction price of 332 million yuan [1] - Liyi Intelligent Manufacturing also plans to raise up to 207 million yuan through a share issuance to no more than 35 specific investors [1] - The acquisition is subject to regulatory approval [1] Group 2: Jiangsu Kedastern's Performance - Jiangsu Kedastern reported revenues of 815 million yuan and 899 million yuan for 2023 and 2024, respectively, with corresponding net profits of 25.32 million yuan and 40.98 million yuan [2] - The 100% equity of Jiangsu Kedastern is valued at 505 million yuan, with a net asset value of 247 million yuan as of December 31, 2024, indicating an asset appraisal increase of 258 million yuan, or 104.06% [2] - Performance commitments have been made for net profits of no less than 47 million yuan, 56 million yuan, and 65 million yuan for the years 2025, 2026, and 2027, respectively [2] Group 3: Strategic Implications - The acquisition will enable Liyi Intelligent Manufacturing to transition from a Tier 2 to a Tier 1 supplier, enhancing customer loyalty and business stability [3] - The company aims to expand its product offerings in the automotive sector, including interior and exterior trim components, thereby increasing product value and profit margins [3] - Liyi Intelligent Manufacturing has been diversifying its business to reduce reliance on a single customer, with a focus on the smart automotive sector [4] Group 4: Financial Overview - In 2024, Liyi Intelligent Manufacturing achieved revenues of 44.211 billion yuan, a year-on-year increase of 29.56%, while net profit decreased by 14.5% to 1.753 billion yuan [4] - The AI terminal business accounted for 92% of the revenue, while the automotive and low-altitude economy sectors generated 2.117 billion yuan, representing only 4.79% of total revenue [4]