Core Viewpoint - Jin Chun Co., Ltd. plans to acquire 51% of Anhui Jin Sheng Yuan Material Technology Co., Ltd. for a cash consideration of 51.918 million yuan, marking a strategic move into the automotive industry chain from a non-woven fabric supplier to a downstream player [1] Company Summary - The acquisition will allow Jin Chun to consolidate Jin Sheng Yuan into its financial statements as a subsidiary, enhancing its position in the automotive materials market [1] - Jin Sheng Yuan, a subsidiary of Jin Rui Investment Group, focuses on the development and production of automotive-grade protective products, complementing Jin Chun's existing non-woven fabric offerings [1] - Jin Sheng Yuan's main product is specialized protective car covers, which are applicable to various parts of vehicles, indicating a potential for collaboration in lightweight automotive materials [1] Industry Summary - The Chinese automotive industry is poised for growth, with a target of approximately 32.3 million vehicle sales in 2025, representing a 3% year-on-year increase, and a significant focus on new energy vehicles [2] - The automotive sector is a key pillar of the national economy, with a long supply chain and strong growth potential, particularly for upstream material suppliers [2] - Jin Sheng Yuan has demonstrated profitability, with projected revenues of approximately 71.1 million yuan for 2024 and 23.2 million yuan for the first eight months of 2025, alongside net profits of about 8.5 million yuan and 4.7 million yuan respectively [2] - The profit commitments from the transaction parties for Jin Sheng Yuan are set at no less than 7 million yuan, 12 million yuan, and 13 million yuan for the years 2025, 2026, and 2027, respectively, totaling a minimum of 32 million yuan [2]

Core Viewpoint - The company plans to acquire 51.00% of Anhui Jingshengyuan Material Technology Co., Ltd. for a cash consideration of 51.918 million yuan, which will result in Jingshengyuan becoming a subsidiary included in the company's consolidated financial statements [1] Group 1 - The acquisition price for the stake in Jingshengyuan is set at 51.918 million yuan [1] - Following the transaction, Jingshengyuan will be classified as a controlling subsidiary of the company [1] - Jingshengyuan specializes in the research, development, production, and sales of automotive-grade protective products, positioning it within the downstream sector of the company's industry [1] Group 2 - Non-woven fabric materials are one of the main raw materials for Jingshengyuan, and the company is a significant supplier of these materials to Jingshengyuan prior to the acquisition [1] - The company is recognized as one of the larger domestic manufacturers of non-woven materials with superior product performance [1]