Core Viewpoint - Zhejiang Wuzhou Xinchun Group Co., Ltd. plans to cancel its supervisory board and amend its articles of association in accordance with the revised Company Law and relevant regulations, transferring the supervisory powers to the audit committee of the board of directors [1][2]. Summary by Sections Cancellation of Supervisory Board - The company has decided to abolish the supervisory board, with its powers being transferred to the audit committee of the board of directors [1]. - Current supervisors will be relieved of their duties upon the approval of the shareholders' meeting [1]. Amendments to Articles of Association - The articles of association will be revised to reflect the cancellation of the supervisory board and the new structure of the board of directors [2]. - The number of directors will remain at seven, with six elected by the shareholders and one employee director elected by the employee representative assembly [1]. Specific Amendments - The first article of the articles of association will now include employees as stakeholders alongside shareholders and creditors [2]. - The legal representative of the company will be elected from among the directors, and the resignation of the legal representative will require the company to appoint a new representative within 30 days [2]. - The company’s operational scope has been updated to include various manufacturing and sales activities, including bearings and automotive parts [3][4]. Shareholder Rights and Responsibilities - Shareholders will retain the right to sue the company, directors, and senior management under the revised articles [3][4]. - The articles will specify the responsibilities of the board and management in case of legal violations leading to company losses [16][17]. Financial Assistance and Capital Increase - The company may provide financial assistance for acquiring its shares under certain conditions, with a cap of 10% of the total issued capital [6]. - The methods for increasing capital have been updated to include public and private offerings, as well as other legal means [7][8]. Share Transfer and Restrictions - The articles stipulate that shares can be transferred according to legal provisions, with specific restrictions on the transfer of shares held by directors and senior management [9][10]. Governance and Decision-Making - The decision-making process for significant company actions, including capital increases and major asset transactions, will require shareholder approval [23][24]. - The articles outline the conditions under which the board can make decisions regarding external guarantees and financial commitments [25][26].

Group 1 - The stock price of Longxi Co., Ltd. as of August 7, 2025, is 22.65 yuan, down by 0.36 yuan or 1.56% from the previous trading day's closing price [1] - The opening price for the day was 23.00 yuan, with a highest price of 23.14 yuan and a lowest price of 22.40 yuan, and the trading volume reached 236,205 hands with a transaction amount of 534 million yuan [1] - Longxi Co., Ltd. specializes in the research, production, and sales of bearings and accessories, with applications in engineering machinery, automotive, metallurgy, and mining sectors [1] Group 2 - The company is categorized under the general equipment manufacturing industry and is involved in sectors such as humanoid robots and commercial aerospace [1] - The Chinese manned space engineering office announced a breakthrough in the country's lunar exploration program, which has brought attention to Longxi Co., Ltd. as a related concept stock [1] Group 3 - On August 7, 2025, the net outflow of main funds for Longxi Co., Ltd. was 70.36 million yuan, accounting for 0.78% of the circulating market value [1] - Over the past five days, the net inflow of main funds was 15.73 million yuan, representing 0.17% of the circulating market value [1]

Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company is actively optimizing its product structure to improve profitability and is advancing the industrialization of high-end precision screw rods [1] - The company experienced a revenue growth of 5.10% in 2024, but its net profit declined by 33.88% due to losses from overseas operations [5][6] - The company aims to control overseas investment risks and gradually improve profitability by reallocating resources towards the European market [5] Financial Performance Summary - In 2024, the company achieved a revenue of 3.265 billion yuan, a year-on-year increase of 5.10%, while the net profit was 91.37 million yuan, a decrease of 33.88% [4] - For Q1 2025, the company reported a revenue of 889 million yuan, a year-on-year increase of 15.06%, with a net profit of 37.84 million yuan, a slight increase of 0.05% [4] - The company's gross margin for 2024 was 16.52%, down 1.02% year-on-year, while the net margin was 2.79%, down 1.84% year-on-year [6] Business Segment Analysis - The bearing and accessory sector accounted for the largest revenue share at 54.91%, followed by thermal management system components at 28.87% and automotive parts at 14.44% [5] - The company is focusing on high-precision, long-life bearings and accelerating the industrialization of high-end precision screw rods, which are expected to become new growth drivers [6][8] Future Projections - Revenue projections for 2025-2027 are 3.616 billion, 4.173 billion, and 4.872 billion yuan, representing year-on-year growth rates of 10.8%, 15.4%, and 16.7% respectively [9] - Expected net profits for the same period are 160 million, 207 million, and 279 million yuan, with growth rates of 74.8%, 29.5%, and 34.7% respectively [9]