Company Overview - Nantong Chaoda Equipment Co., Ltd. is a leading domestic supplier of automotive interior and exterior moldings, focusing on the research, production, and sales of molds, automotive inspection tools, and automated tooling equipment [1] - The company is one of the few in China capable of providing full-process manufacturing and services for automotive interior and exterior molds, including R&D, design, casting, CNC processing, assembly, and maintenance [1] Financial Performance - In 2024, the company achieved a revenue of CNY 720,666,661.22, representing a year-on-year increase of 14.91% [2][7] - The net profit attributable to shareholders was CNY 96,599,670.73, up 1.24% from the previous year [2][7] - The revenue from mold business was CNY 422,520,041.20, an increase of 17.84% year-on-year [5] - The automotive inspection tools business generated revenue of CNY 76,430,586.40, up 21.56% [5] - Revenue from automated tooling equipment and components was CNY 188,053,161.69, increasing by 11.38% [5] Product Categories - The main products include: - Automotive interior and exterior molds, primarily for soft trim and foam components [2] - Automotive inspection tools for evaluating the quality of automotive parts [2] - Automated tooling equipment and components for production lines [2] Market Position and Competitive Landscape - The automotive mold industry is crucial, with over 90% of automotive parts requiring molds for production [3] - In developed countries, automotive molds account for over 40% of the total mold industry output, while about one-third of China's molds serve the automotive sector [3] - The domestic market for automotive molds is competitive, particularly in the mid-to-low-end segment, while high-end markets have fewer capable players [4] R&D and Innovation - The company invested CNY 39,365,075.53 and CNY 43,281,270.57 in R&D for 2023 and 2024, respectively, accounting for 6.28% and 6.01% of revenue [6] - The company holds 148 patents, including 77 invention patents, enhancing its competitive edge [6] - The company is recognized as a key player in the mold industry and has established good relationships with major automotive suppliers [6] Order and Growth Outlook - As of the end of 2024, the company had an order backlog of CNY 73,378.26 million [5] - The company anticipates continued growth driven by strong demand in the automotive sector [4] Strategic Developments - The company is expanding its international presence with subsidiaries in Germany, the USA, and Thailand to better serve global customers [9] - The company is exploring opportunities in the new energy vehicle sector, having developed products for major manufacturers like Tesla and BYD [8]

Core Viewpoint - The company intends to conduct financial derivatives trading to mitigate foreign exchange risks and reduce financial costs, aligning with its operational needs and not engaging in speculative activities [2][3][7] Group 1: Basic Situation of Financial Derivatives Trading - The company primarily engages in the research, production, and sales of molds, automotive fixtures, automation tools, and components, with significant export business settled in USD or EUR [2] - In response to unstable foreign exchange environments, the company plans to conduct financial derivatives trading to enhance its ability to manage foreign exchange risks and minimize adverse impacts on its operating performance [2][3] Group 2: Trading Limits and Management - The proposed trading limit for financial derivatives is set at a maximum of RMB 300 million (or equivalent foreign currency), valid for 12 months from the board's approval [3][6] - The board has authorized the chairman to manage the trading operations and sign relevant agreements, ensuring that the trading activities are conducted with reputable financial institutions [3][6] Group 3: Risk Analysis and Control Measures - The company emphasizes that its derivatives trading will focus on hedging against foreign exchange risks and will not involve speculative trading [4][5] - A comprehensive risk management framework has been established, including clear procedures for decision-making, authorization, and risk assessment, to ensure effective control over derivatives trading [4][5] Group 4: Impact of Financial Derivatives Trading - The financial derivatives trading is expected to effectively mitigate foreign exchange market risks, reduce financial costs, and enhance foreign exchange gains without negatively impacting the company's financial and operational status [5][6][7] - The company will adhere to relevant accounting standards for the recognition and measurement of financial instruments related to the derivatives trading [5] Group 5: Approval Procedures and Opinions - The board and supervisory committee have approved the proposal for financial derivatives trading, confirming that it aligns with regulatory requirements and serves the interests of the company and its shareholders [6][7] - Independent directors have also supported the proposal, emphasizing that the trading activities will not harm the interests of the company or minority shareholders [6][7]

Financial Performance - The company's net profit attributable to shareholders for 2024 is 96.6 million CNY [3] Business Focus and Growth Drivers - The core business revolves around mold manufacturing, particularly for automotive inspection tools and automation equipment [3] - Emphasis on technology accumulation and innovation to enhance production efficiency and product quality [3] - The company targets mid-to-high-end markets, providing comprehensive solutions including molds, inspection tools, and automation equipment [3] Industry Overview - The automotive interior and exterior market is experiencing stable growth, driven by increasing consumer demands for quality and aesthetics [4] - The market is also influenced by the rapid development of new energy vehicles and smart technologies, necessitating continuous innovation [4] - Global automotive sales are steadily increasing, contributing to ongoing demand in the automotive interior and exterior market, especially in China [4] Client Base and Market Position - The company serves a diverse range of clients, including major international automotive suppliers and local manufacturers [4] - Established long-term partnerships with renowned companies such as HP Pelzer, Faurecia, and BYD, among others [4]