Core Viewpoint - The announcement discusses the potential dilution of immediate returns due to the issuance of A-shares and outlines measures to mitigate this impact on shareholders [1][5][11]. Financial Impact of the Issuance - Before the issuance, the total share capital of the company is 338,526,168 shares, and the new issuance will not exceed 30% of this amount, leading to a maximum total of 368,526,168 shares post-issuance [1][4]. - The company projects a 10% increase in net profit for 2025 compared to 2024, resulting in a net profit of approximately 7,857.94 million yuan post-issuance [4]. - Basic earnings per share (EPS) before the issuance is 0.200 yuan, which is expected to decrease to 0.227 yuan after the issuance under the 10% growth scenario [4]. Relationship of Fundraising Projects to Existing Business - The company has over 20 years of experience in the automotive parts industry, focusing on chassis components and lightweight aluminum parts [6]. - The fundraising project aims to establish a production base for planetary roller screws, which aligns with the company's existing metal processing capabilities [6][7]. - The project is expected to facilitate the company's strategic transition from traditional automotive parts to high-end equipment manufacturing [6]. Measures to Mitigate Dilution of Immediate Returns - The company plans to enhance the management of raised funds to ensure compliance and effective use [10]. - It aims to accelerate the implementation of the fundraising project to improve profitability and maintain shareholder interests [10]. - The company will strengthen its governance structure and operational efficiency to support long-term growth and shareholder returns [10]. Commitments from Management and Major Shareholders - The board and senior management commit to protecting shareholder interests and ensuring the effectiveness of the measures to mitigate dilution [11][12]. - Major shareholders pledge not to interfere with company operations or harm company interests during the fundraising process [12][13].

Group 1: Investor Relations Activities - The company participated in the "2025 Investor Online Reception Day" event on June 12, 2025, organized by the Hubei Provincial Listed Companies Association [3] - The event was conducted remotely, with participation from various stakeholders including the Hubei Securities Regulatory Bureau and investors [3] Group 2: Key Customer Information - Major clients include Dongfeng Commercial Vehicle Co., Ltd., Shaanxi Fast Gear Co., Ltd. (a subsidiary of Weichai Holding Group), and BYD Company Limited [4] Group 3: Technology and Production Capabilities - The company has technical advantages in aluminum alloy lightweight components, particularly in die-casting and precision machining processes [4] - Current production capacity meets existing customer order demands, with no immediate plans for expansion [5] - The company employs order-based production to meet customer requirements, utilizing advanced technologies in aluminum alloy manufacturing [4][6] Group 4: Business Strategy and Market Outlook - The company is in a transformation phase, with a focus on increasing revenue from passenger vehicle components [4] - The management emphasizes a dual approach of "commercial and passenger vehicles, oil and electricity" for sustainable growth [4] - The company is committed to creating greater value for customers as part of its operational philosophy [6] Group 5: Financial Performance - The second quarter's operational and profit situation is pending, with details to be disclosed in the upcoming semi-annual report [6]

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company is experiencing a decline in performance for 2024, with a projected revenue of 4.41 billion yuan, down 8.79% year-on-year, and a net profit of 416.26 million yuan, down 41.71% year-on-year [1][4] - The automotive segment revenue is expected to be 3.78 billion yuan, a decrease of 10.87% year-on-year, with a significant drop in sales volume by 16.2% [2] - The company is focusing on new sectors such as energy storage and humanoid robots while maintaining its core competency in aluminum alloy lightweight technology [2][3] Financial Performance Summary - For 2024, the company anticipates a revenue of 44.09 billion yuan, with a net profit of 4.16 billion yuan, and a basic earnings per share (EPS) of 0.45 yuan, reflecting a decline of 41.56% year-on-year [1][4] - In Q1 2025, the company reported a revenue of 10.46 billion yuan, down 8.12% year-on-year, and a net profit of 0.96 billion yuan, down 39.15% year-on-year [1] - The company’s EBITDA for 2024 is projected at 1.18 billion yuan, with a net profit margin of 9.44% [4][11] Operational Strategy - The company is enhancing its internal operational management capabilities and expanding its production capacity, with a focus on cost optimization through technological innovation [3] - It has established a production network across China, North America, and Southeast Asia, aiming for a "China + North America + Southeast Asia" triangular capacity network [3] - The company is implementing a centralized procurement and strategic cooperation model with key suppliers to manage costs effectively [3]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [5] Core Views - The company is experiencing a decline in performance for 2024, with a projected revenue of 4.41 billion yuan, down 8.79% year-on-year, and a net profit of 416.26 million yuan, down 41.71% year-on-year [1][4] - The automotive segment revenue is expected to be 3.78 billion yuan, a decrease of 10.87% year-on-year, with a significant drop in sales volume by 16.2% [2] - The company is focusing on new growth areas such as energy storage and humanoid robots while leveraging its core aluminum alloy lightweight technology [2][3] Financial Performance Summary - For 2024, the company anticipates a revenue of 44.09 billion yuan, with a net profit of 4.16 billion yuan, reflecting a significant decline compared to the previous year [1] - The first quarter of 2025 shows a revenue of 10.46 billion yuan, down 8.12% year-on-year, and a net profit of 0.96 billion yuan, down 39.15% year-on-year [1] - The company’s earnings per share (EPS) for 2024 is projected at 0.45 yuan, a decrease of 41.56% year-on-year [1] Operational Strategy - The company is enhancing its internal operational management capabilities and expanding its production capacity, with a focus on cost optimization through technological innovation [3] - It has established a production network across China, North America, and Southeast Asia, aiming to provide integrated lightweight solutions to global customers [3] - The company is implementing a "zero inventory" management model and optimizing supply chain collaboration to improve inventory turnover rates [3]

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company has a stable growth trajectory in its automotive parts business, with significant potential in the lightweight and robotics sectors. The expansion into planetary roller screw production is expected to open new growth avenues [8][14]. Summary by Sections 1. Company Overview - The company has been deeply engaged in the automotive chassis parts sector for over 20 years, focusing on high-value components. It has established itself as a leading manufacturer in China [14][19]. - The company has diversified its business by entering the automotive air conditioning compressor market and aluminum lightweight components, aligning with industry trends towards energy efficiency and lightweighting [14][19]. 2. Business Performance - The company achieved total revenue of 2,024 million yuan in 2024, representing a year-on-year growth of 7.6%. The net profit attributable to shareholders was 71.4 million yuan, up 40.4% year-on-year [25][29]. - The chassis parts business generated revenue of 1,397 million yuan in 2024, with a growth rate of 7%. The lightweight business contributed 133 million yuan, growing by 1% [29][57]. 3. Financial Projections - The company is projected to achieve net profits of 121.72 million yuan, 201.86 million yuan, and 565.36 million yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 70%, 66%, and 180% [1][8]. - The earnings per share (EPS) are expected to rise from 0.36 yuan in 2025 to 1.67 yuan in 2027, reflecting a significant increase in profitability [1]. 4. Market Position and Strategy - The company has a strong market position in the steering and shock absorber segments, with a market share of 40-50%. It is also expanding its high-precision components business, which is expected to see substantial growth [8][57]. - The company is investing 1.85 billion yuan to establish a production base for planetary roller screws, targeting the growing humanoid robot market, which is projected to exceed 90 billion yuan by 2030 [8][14]. 5. Product and Customer Base - The product portfolio includes steering components, shock absorbers, and aluminum lightweight parts, catering to major automotive manufacturers such as Bosch, BYD, and ZF [19][51]. - The company has established production bases in key automotive industry clusters across China, enhancing its responsiveness to customer needs and reducing logistics costs [55].