Fundraising Overview - The company raised a total of RMB 488.376 million from its initial public offering (IPO) in April 2016, with a net amount of RMB 419.791 million after deducting issuance costs [1] - In October 2020, the company issued convertible bonds totaling RMB 640 million, with a net amount of RMB 632.506 million after related expenses [1] Fund Management - The company has established a three-party supervision agreement with its sponsor Tianfeng Securities and banks to ensure proper management of the raised funds, in compliance with regulatory requirements [2][5] - A new special account for fundraising was set up to manage the funds allocated for the "Brand Chain Vehicle Inspection Station Construction Project" [3][4] Project Adjustments - The company decided to change the use of RMB 99.0232 million from the initial public offering funds to the "Brand Chain Vehicle Inspection Construction Project," with the implementation now under its wholly-owned subsidiary, Duolun Vehicle Inspection Group [3] - The company has terminated two fundraising projects: the "Brand Chain Vehicle Inspection Station Construction Project" and the "Smart Traffic Integrated Solution R&D Upgrade Project," reallocating RMB 150 million for permanent working capital [7][8] Account Status - As of the announcement date, the special fundraising account for the "Brand Chain Vehicle Inspection Station Construction Project" has been closed, while other accounts remain active [8][10] - The remaining funds from the terminated projects will continue to be managed according to fundraising management requirements [8]

Core Viewpoint - The traditional automotive industry is facing intense competition and price wars, prompting companies like Dongfeng Motor to seek innovative solutions for sustainable growth rather than relying on price reductions [1][2]. Group 1: Dongfeng Motor's Innovations - Dongfeng Motor has established a smart manufacturing demonstration factory that utilizes 5G and big data technologies, enabling mixed-flow production of various vehicle types with 935 industrial robots, producing a new vehicle every 118 seconds [1]. - The company is advancing its "Tianyuan Intelligent" technology system and the new generation of Mahle power systems, while also developing the Dongfeng Hydrogen Boat series to diversify its new energy offerings [1]. - Dongfeng is focusing on integrating artificial intelligence with industry, enhancing vehicle intelligence and the vehicle-road-cloud integration level through advanced technologies like industrial internet and cloud computing [2]. Group 2: Market Dynamics and Strategies - The Chinese automotive market is transitioning from incremental expansion to stock competition, with increasing competition from new brands and cross-industry entrants, leading to a fundamental shift in consumer purchasing logic [1]. - Dongfeng rejects the notion of competing through price cuts, emphasizing that such practices harm the industry's long-term health and instead prioritizes technological innovation to enhance product and brand value [2]. - The collaboration between automotive companies and technology firms is becoming a trend, exemplified by Dongfeng's partnership with Huawei and China Mobile to create a 5G vehicle-road-cloud collaborative system covering 660 kilometers of open roads in Wuhan [2]. Group 3: Industry Implications - Dongfeng Motor's approach to smart transformation serves as an inspiring model for traditional automakers and the broader automotive industry, positioning the company to seize opportunities in the evolving market landscape [3].