Core Viewpoint - The company reported its Q3 2025 earnings, showing a slight increase in revenue but a significant decline in net profit, while also highlighting the progress of its Moroccan factory and commitment to smart manufacturing [1][2][3]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 6.44 billion yuan, a year-on-year increase of 1.5% - The net profit attributable to shareholders was 1.02 billion yuan, a year-on-year decrease of 41.2% - The net profit after deducting non-recurring items was 990 million yuan, a year-on-year decrease of 42.2% - In Q3 2025, the company achieved revenue of 2.32 billion yuan, with year-on-year and quarter-on-quarter increases of 3.9% and 12.4% respectively - The net profit attributable to shareholders for Q3 was 340 million yuan, a year-on-year decrease of 47.0% but a quarter-on-quarter increase of 10.6% - The net profit after deducting non-recurring items for Q3 was 330 million yuan, a year-on-year decrease of 50.5% but a quarter-on-quarter increase of 4.3% [1]. Strategic Developments - The company is fully advancing its Moroccan factory, which is expected to gradually contribute profits next year - The "Senqilin (Morocco) annual production of 12 million high-performance passenger car and light truck radial tire project" has been completed and is operational, with expectations for large-scale production and profit contribution next year - The global capacity layout of Senqilin in China, Thailand, and Morocco provides a strong backing for the company to participate in global competition, enhancing overall competitiveness and profitability [1]. Smart Manufacturing Initiatives - The company is a pioneer in implementing smart manufacturing, with a demonstrative effect in the industry - It has developed a smart factory IoT system covering five main modules: smart central control system, smart production execution system, smart warehousing and logistics system, smart detection and scanning system, and smart scheduling and warning system - In 2022, the company received the "2022 National Intelligent Manufacturing Demonstration Factory" honor, becoming the only Chinese tire company to receive national-level intelligent manufacturing awards four times [2]. Shareholder Returns - The company is focusing on shareholder returns by implementing a mid-term dividend for 2025 - It plans to distribute a cash dividend of 3.0 yuan (including tax) for every 10 shares based on the total share capital on the dividend registration date, without issuing new shares or converting reserves into share capital [2]. Profit Forecast and Valuation - Considering the ramp-up of the Moroccan factory and tire industry demand trends, the company is projected to achieve revenues of 9.0 billion, 11.38 billion, and 13.06 billion yuan for 2025-2027, with year-on-year growth rates of 5.7%, 26.5%, and 14.7% respectively - The net profit attributable to shareholders is forecasted to be 1.41 billion, 1.99 billion, and 2.46 billion yuan for the same period, with year-on-year changes of -35.5%, +40.9%, and +23.6% - Based on the closing price on November 1, the corresponding PE ratios are projected to be 14, 10, and 8 times, maintaining a "strong buy" rating [3].

Core Viewpoint - Qingdao Senqilin Tire Co., Ltd. has approved the temporary use of idle raised funds to supplement working capital, ensuring that it does not affect the normal investment plan and safety of the raised funds [3][9][15]. Group 1: Board Meeting Details - The fourth board meeting of Qingdao Senqilin Tire Co., Ltd. was held on October 21, 2025, with all 9 directors participating [2]. - The meeting was chaired by Chairman Qin Long, and some independent directors attended via communication due to work commitments [2]. Group 2: Fund Usage Approval - The board approved the proposal to use up to 100 million RMB of idle funds raised from the 2023 stock issuance to temporarily supplement working capital, with a usage period not exceeding 12 months [3][15]. - The approval was unanimous, with 9 votes in favor and no opposition or abstentions [3]. Group 3: Fundraising Overview - The company raised approximately 2.8 billion RMB from the issuance of 94,307,847 shares at a price of 29.69 RMB per share, with a net amount of approximately 2.79 billion RMB after deducting issuance costs [9][10]. - As of June 30, 2025, the remaining balance of the raised funds was approximately 1.14 billion RMB, with 500 million RMB temporarily used for working capital [10][11]. Group 4: Previous Fund Usage - In a previous board meeting on October 18, 2024, the company had also approved the temporary use of idle funds, and by October 16, 2025, it had fully returned 50 million RMB to the dedicated fund account [13][14]. Group 5: Compliance and Verification - Guotai Junan Securities Co., Ltd. provided verification opinions, confirming that the use of idle funds complies with relevant regulations and does not affect the investment plan [5][16]. - The company committed to ensuring that the use of idle funds is related to its main business operations and will not be used for high-risk investments [14][16].

Core Viewpoint - The company intends to continue using part of the temporarily idle raised funds for cash management to enhance fund utilization efficiency and increase shareholder returns while ensuring the normal progress of investment projects and the safety of raised funds [1][4][8]. Summary by Sections 1. Basic Situation of Raised Funds - The company has received approval from the China Securities Regulatory Commission to issue 94,307,847 shares at a price of 29.69 RMB per share, raising a total of approximately 2.79 billion RMB [1]. 2. Investment Projects and Idle Situation - The raised funds will be allocated to projects including the Morocco tire project, with a total investment of 1.2 billion RMB for an annual production capacity of 6 million high-performance tires [2]. 3. Previous Use of Idle Funds for Cash Management - As of June 30, 2025, the balance of temporarily idle raised funds for cash management is 620 million RMB, with 20.45 million RMB remaining in the special account [3]. 4. Current Use of Idle Funds for Cash Management - The company plans to use up to 1 billion RMB of temporarily idle raised funds for cash management, with a usage period of twelve months from the board's approval date [4][5]. 5. Investment Types - The company will invest in highly liquid, safe, and principal-protected financial products, including structured deposits and time deposits [5]. 6. Implementation Method - The cash management decision falls within the board's approval authority, and the management team is authorized to make investment decisions and sign relevant contracts [5][7]. 7. Approval Procedures - The board and supervisory committee have approved the continued use of idle funds for cash management, confirming that it will not affect the normal operation of investment projects or harm shareholder interests [7][8].