Core Viewpoint - Lingyi Technology plans to deepen its automotive industry layout by acquiring 96.15% of Zhejiang Xianglong Machinery Co., Ltd. for 2.404 billion yuan, aiming to align with the trends of electrification and intelligence in the automotive sector [2][11]. Acquisition Details - The acquisition involves cash payment of 2.404 billion yuan, representing 12.09% of Lingyi Technology's audited net assets for the past year [8]. - The agreement was signed with multiple parties, including Venture Equities Management and others [6]. Financial Performance of Zhejiang Xianglong - As of June 30, 2025, Zhejiang Xianglong's total assets are 2.335 billion yuan, with a net asset of 827 million yuan. The projected revenues for 2024 and the first half of 2025 are 1.994 billion yuan and 969 million yuan, respectively [11]. - The net profit for 2024 and the first half of 2025 is expected to be 127 million yuan and 92.048 million yuan, respectively [11]. Valuation and Performance Commitments - The valuation of Zhejiang Xianglong's equity is assessed at 2.51 billion yuan, indicating a significant increase of 1.683 billion yuan (203.55% increase) over the audited net assets [13]. - Performance commitments from shareholders include a minimum net profit of 175 million yuan, 200 million yuan, and 225 million yuan for the years 2025, 2026, and 2027, respectively, totaling at least 600 million yuan [13]. Company Financials - For Q3 2025, Lingyi Technology reported revenues of 13.965 billion yuan, a year-on-year increase of 12.91%, and a net profit of 1.012 billion yuan, up 39.28% [15]. - The net profit excluding stock incentive expenses reached 1.111 billion yuan, reflecting a 51.35% increase [15]. International Expansion - Lingyi Technology is focusing on internationalization, with plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance overseas business and acquisition channels [2][17]. - The company has established 58 production and R&D sites globally, with significant revenue growth from overseas operations [17].

Core Viewpoint - Lingyi Zhi Zao plans to deepen its automotive industry layout by acquiring 96.15% of Zhejiang Xianglong for 2.404 billion yuan and is also preparing for an IPO in Hong Kong [2][5][6]. Group 1: Acquisition Details - The acquisition aims to enhance Lingyi Zhi Zao's presence in the automotive sector, aligning with trends in electric and intelligent vehicles, as well as expanding applications for AI terminal hardware [5][13]. - The acquisition agreement was signed on October 28, involving multiple parties including Venture Equities Management and Ningbo Jialong Industrial [9][11]. - The transaction price of 2.404 billion yuan represents 12.09% of Lingyi Zhi Zao's audited net assets from the past year [11]. Group 2: Financial Performance and Projections - Lingyi Zhi Zao reported a revenue of 13.965 billion yuan for Q3 2025, a year-on-year increase of 12.91%, with a net profit of 1.012 billion yuan, up 39.28% [17][18]. - Zhejiang Xianglong's total assets were reported at 2.335 billion yuan, with a net profit of 127 million yuan for 2024 [13][14]. - Performance commitments from Zhejiang Xianglong's shareholders include a minimum net profit of 1.75 billion yuan for 2025, 2 billion yuan for 2026, and 2.25 billion yuan for 2027, totaling at least 6 billion yuan [15]. Group 3: Strategic Goals - The acquisition is part of Lingyi Zhi Zao's strategy to optimize its income structure and enhance operational capabilities [17]. - The company aims to strengthen its international strategy through an H-share issuance and listing on the Hong Kong Stock Exchange [6][20]. - Lingyi Zhi Zao's overseas operations have seen significant growth, with 58 production and R&D sites established globally, contributing to its revenue increase [20].