Core Viewpoint - Meili Technology plans a significant asset restructuring by acquiring 100% of Hitched Holdings 3B.V. (HH3) for cash, which is expected to constitute a major asset restructuring [1][4]. Group 1: Acquisition Details - The acquisition will be conducted through Meili Technology's wholly-owned subsidiary, Meili Holding GmbH, from Hitched Holdings 2B.V. [4]. - The transaction aims to indirectly control ACPS Group, a German manufacturer of automotive towing systems, which has long-term partnerships with major automotive brands such as Volkswagen, Mercedes-Benz, BMW, and Tesla [1][7]. Group 2: Market Opportunities - The acquisition is positioned to capture growth in the domestic and international towing hook market, driven by the increasing market share of SUVs and relaxed domestic towing policies [7]. - Meili Technology aims to leverage ACPS Group's established customer base to shorten market expansion timelines and reduce costs [7]. Group 3: Financial Performance - ACPS Group has experienced fluctuating financial performance, with projected net profits of -5.21 million euros in 2023, -20.18 million euros in 2024, and a positive 0.74 million euros in the first half of 2025 [10]. - The group's net assets have been negative in recent years, with values of 1.06 million euros in 2023, -1.07 million euros in 2024, and -0.20 million euros in mid-2025 [10][11]. Group 4: Stock Performance - Following the announcement of the acquisition plan, Meili Technology's stock price rose by 10.77%, closing at 35.18 yuan per share, with a total market capitalization of 7.426 billion yuan [1]. - Prior to the announcement, the stock had a cumulative increase of over 20% in the 20 trading days leading up to the announcement [8].

Core Viewpoint - Meili Technology plans a significant asset restructuring by acquiring 100% equity of Hitched Holdings 3B.V. for cash, which is expected to constitute a major asset reorganization [2][5]. Group 1: Acquisition Details - The acquisition will allow Meili Technology to indirectly control ACPS Group, a German manufacturer of automotive towing hitches, which has long-term partnerships with major automotive brands such as Volkswagen, Mercedes-Benz, BMW, and Tesla [5][15]. - The transaction is aimed at quickly capturing market growth in the domestic and international towing hitch markets, driven by the increasing share of the global SUV market and the relaxation of domestic towing policies [15][16]. - Meili Technology's stock price surged by 10.77% to 35.18 CNY per share, with a total market capitalization of 7.426 billion CNY on October 24 [5]. Group 2: Financial Performance and Risks - ACPS Group has shown fluctuating financial performance, with projected net profits of -5.211 million euros in 2023, -20.182 million euros in 2024, and a positive 741.98 million euros in the first half of 2025 [19]. - The net assets of ACPS Group have been negative in recent years, with values of 1.0628 million euros in 2023, -1.0719 million euros in 2024, and -195.86 million euros in mid-2025 [19]. - Meili Technology's own financials show a net profit of 40.6977 million CNY in 2023, with projections of 107 million CNY in 2024 and 80.3979 million CNY in the first half of 2025 [21]. Group 3: Integration Challenges - Post-acquisition, Meili Technology faces integration risks due to differences in legal, accounting, tax systems, business models, and regional cultures, which may hinder achieving expected performance outcomes [24].

Core Viewpoint - Zhejiang Meili High Technology Co., Ltd. is issuing convertible bonds to raise up to RMB 300 million to support its business expansion and enhance its market competitiveness in the automotive parts industry, particularly in high-end spring products and precision injection molding [13][16]. Company Overview - Zhejiang Meili High Technology Co., Ltd. was established on May 16, 2002, with a registered capital of RMB 2,110.7468 million. The company focuses on the research, production, and sales of high-end spring products and precision injection parts, primarily serving the automotive industry [13][14]. - The company has experienced significant growth, with revenue increasing from RMB 1.087 billion to RMB 1.604 billion over the past three years, representing a growth rate of 21.44% [13][15]. Purpose of the Bond Issuance - The issuance of convertible bonds aligns with national development strategies and industry trends, aiming to optimize business layout and maintain competitive advantages [16]. - The funds raised will be used for projects that enhance production capacity and operational efficiency, particularly in response to the growing demand in the automotive sector [16][18]. Financial Performance and Dividend Policy - The company has a proactive profit distribution policy, prioritizing cash dividends. In recent years, it has distributed cash dividends totaling RMB 41.69 million, exceeding its average annual distributable profit of RMB 36.58 million by 113.96% [5][7]. - The company aims to maintain a minimum cash dividend of 20% of the distributable profit when conditions allow [4][5]. Risk Factors - The convertible bonds are rated AA- by Shanghai New Century, indicating a stable outlook. However, the bonds are unsecured, which may increase repayment risks if the company's operational performance deteriorates [8][9]. - The company faces potential risks related to market fluctuations, operational management, and the timely realization of project benefits, which could impact its financial stability and ability to meet bond obligations [8][9][10].