1. The company is an integrated auto parts supplier. Provide suppliers of internal and external decoration systems, key functional parts and intelligent electronic integrated control systems for passenger cars. The top five customers of the company in 2016 were FAW-Volkswagen, brilliance BMW, Fuwei-Johnson, Beijing Mercedes-Benz and FAW Toyota, accounting for 29.33%, 4.95%, 4.21%, 4.05% and 4.05% of the company's sales respectively.
2. Go deep into the layout and enter the manufacture of new energy vehicles in an all-round way. Since 2015, the company has participated in Wuzhoulong, Jiangsu Cawei, Changchun New Energy and other new energy vehicle manufacturing enterprises through equity cooperation.
3. Li Xianyu, the actual controller of the company, acquired a stake in EFA-S75% of Germany in November 2015. EFA-S is mainly engaged in the design, production and modification of electric vehicles, and is one of the leading companies in the electric vehicle modification industry in Germany. Its customers are mainly Mercedes-Benz-Benz, United Parcel Service Inc Express Service Company (referred to as "UPS"), and its main products are Mercedes-Benz sprintercity 35 mini-bus retrofit, UPS logistics vehicle refit and so on. EFA-S resources are expected to be used by listed companies to carry out new energy vehicle business.
4. the total subscription of major shareholders has increased, highlighting the optimistic expectations of major shareholders on the company's strategy. The company will not issue more than 300 million shares of non-public shares, and the total amount of funds to be raised will not exceed 5 billion yuan. the funds to be raised will be used to invest in the construction of a high-end electric vehicle R & D and production base in Germany, with an annual production capacity of 100000 vehicles. Funds will be raised for investment in infrastructure and the first phase of the project, with an annual production capacity of 30,000 vehicles and a total investment of 1.139 billion euros (about 8.4 billion yuan). Production is expected to start in September 2019.
5. Adopt a brand-new technology route and strive to subvert the existing new energy vehicles. Mileage anxiety, charging anxiety and charging pile resource allocation are the main obstacles in the development of new energy vehicles. The company adopts a new technical route, through fast charging + extended range mode, to fundamentally solve the two major anxieties. At the same time, the company's products are positioned at the high end and will be listed from 2019 to 2020. Therefore, the company's products strive to improve their competitiveness and do not rely on the state subsidy policy.
6. The company's net profit in 2017 and 2018 is expected to be 598 million yuan and 692 million yuan, corresponding to 18x and 15.6x PE respectively.
7. Risk hint: the risk of demand change of new energy vehicles and the risk of technology replacement of new energy vehicles.