I. Basic Introduction of the Company
Yuefeng Aluminum Company mainly engages in the research and development, production and sales of aluminum alloy components for new energy vehicle battery systems. It possesses a complete business system covering aluminum alloy material research and development, product design, advanced production processes and large-scale production. The company's main product is battery box body, which is a key component of the power battery system for new energy vehicles. Meanwhile, the company has developed component products such as battery cell casings and precision structural parts around the power battery systems of new energy vehicles.
The company has the following advantages:
1. Technical advantages
The company is a national high-tech enterprise. Since its establishment, it has been dedicated to the field of new energy vehicles. As one of the earliest domestic manufacturers to supply battery box bodies in bulk to BYD through new processes such as aluminum alloy extrusion and FSW. As of today, the company has become the largest supplier of aluminum alloy battery box bodies for BYD's new energy vehicles and has accumulated rich experience in product development and production. At present, the company has a complete business system covering the research and development of aluminum alloy materials, product design, advanced production processes, and large-scale production. It is capable of jointly participating in the development of complete vehicles and key components for downstream new energy vehicle manufacturers to quickly respond to the demands of downstream customers.
The company's R&D center was established in accordance with the standards of a national-level laboratory and has now been recognized as a provincial-level enterprise technology center. The company is equipped with a complete set of testing and analysis equipment, including battery box extrusion testing machines, blue light detectors, X-ray detectors, three-coordinate measuring machines, ARTUS direct reading spectrometers, electronic universal tensile testing machines, metallographic microscopes, salt spray test chambers, and liquid-cooled high and low temperature testing machines for new energy vehicles, etc. As of December 31, 2024, the company had a total of 142 patent rights, including 23 invention patents. There were 11 invention patents under application, covering key production processes and product structure designs of new energy vehicle power battery system components such as battery box bodies and battery cell shells.
2. Product advantages
Since its establishment, the company has been dedicated to the research and development, production and sales of aluminum alloy components for new energy vehicle power battery systems, with battery box bodies as its core products. Against the backdrop of the rapid development of new energy vehicles, the company has developed a strong technological research and development capability and is at the leading level in the industry in terms of high-performance aluminum alloy material research and development, digital full-process extrusion control technology, and advanced FSW welding technology. We are capable of synchronously developing key components of new energy vehicle battery systems such as highly integrated battery box bodies and ultra-thin battery cell casings with customers, and can continuously supply products with excellent performance and stable quality, thus forming a strong barrier in terms of product consistency and stability. The company's products can meet the requirements of different generations such as CTM, CTP and CTB, as well as battery box bodies for light trucks, heavy trucks and mining trucks. It has mass-produced a variety of advanced battery box body products, including brazed water-cooled plate liquid cooling integration, brazed direct cooling integration and profile water-cooled plate direct cooling integration. None of the new energy vehicles supplied by the company have been recalled due to quality issues with battery box bodies, and the product quality has been unanimously recognized by downstream customers.
3. Customer advantages
The design and development of battery box body products require the joint participation of vehicle manufacturers, power battery manufacturers and battery box suppliers. They have a high degree of customization and are key components of the battery system of new energy vehicles. Customers generally do not easily change such suppliers. Meanwhile, downstream customers will carry out a strict, complex and long-term certification process when choosing suppliers. They need to continuously conduct comprehensive assessment and evaluation of the suppliers' R&D and technological innovation capabilities, mass production supply capabilities, patent and process technologies, quality control capabilities, etc., and have established strict testing and verification procedures for the products. Due to the quality traceability requirements of the automotive industry, and considering the long verification cycle as well as the costs and uncertainties brought about by changing suppliers, once new energy vehicle and its first-tier supporting enterprises establish a good cooperative relationship with upstream suppliers, they will not frequently change suppliers under normal circumstances. In addition, as the current battery system integration technology for new energy vehicles gradually transitions to solutions such as CTP and CTB, the development trend of battery integration has further strengthened the deep binding between component suppliers and downstream customers.
Since its establishment in 2015, the company has grown into one of the leading manufacturers of battery box bodies for new energy vehicles in China. Relying on its outstanding R&D and design capabilities, excellent product performance, complete supporting service system and timely product delivery capacity, the company has gained a good reputation in the industry and accumulated extensive customer resources. As one of the earliest domestic manufacturers to supply battery box bodies in bulk to BYD through new processes such as aluminum alloy extrusion and FSW, the company has continued to be the largest supplier of aluminum alloy battery box bodies for BYD's new energy vehicles and has established a long-term and stable cooperative relationship. And it has gradually expanded into downstream vehicle manufacturers and battery manufacturers in the new energy industry such as CATL, Zhongke New Energy, Yutong, and XCMG New Energy. All the above-mentioned clients are well-known enterprises with good reputation, large scale and certain industry status. The core clients of the company are of high quality and stable, and long-term cooperative relationships can be maintained.
Relying on its long-term cooperative relationship with customers, the company has developed strong competitiveness in aspects such as synchronous product development, quality control, production scale, supply guarantee, and after-sales service response. Due to the long pre-assessment period for suppliers by the company's downstream customers, strict quality and service requirements, and complex review and certification systems, the cost of changing suppliers for the company is relatively high. Once a cooperative relationship is established, it will not be changed easily. The core customer resources accumulated by the company over a long period of time have laid a solid foundation for its continuous development in the future.
4. Scale advantage
The production of auto parts has a distinct scale effect. In 2024, the output of the company's main products continued to increase. In 2024, the company produced approximately 866,800 sets of battery box bodies and sold 812,600 sets. According to the data from the China Association of Automobile Manufacturers, the domestic sales of new energy vehicles in China are expected to reach approximately 12.866 million units in 2024. Based on this, it is estimated that the market share of the company's battery box body products is about 6.32%, ranking among the top in the industry. Large-scale production capacity ensures that the company can provide timely and stable delivery to customers, while reducing product production costs and enhancing the company's profitability and market competitiveness. Up to now, the company has supplied battery box body products for over 162 models of mainstream domestic new energy vehicle manufacturers and PACK manufacturers such as BYD, Geely Automobile, CATL, and Zhongke Innovation Energy, with a cumulative sales volume exceeding 2.8 million sets.
5. Team advantages
Mr. Wang Kaifeng, the founder of the company, has been deeply involved in the aluminum alloy industry for nearly four decades. He has extensive experience in the research of advanced aluminum alloy materials, product development and application, and has a profound understanding of the industry's development. He is capable of formulating the company's strategic development plan based on national industrial policies, industry development trends and the company's actual situation, driving the company's continuous development. As one of the first enterprises in the industry to adopt aluminum alloy extrusion technology for large-scale production of battery box bodies, the company has completed the replacement of traditional steel and die-cast parts, promoted the process of "modularization, platformization and lightweighting" of new energy vehicles, achieved continuous innovation and iteration of battery box body products, and contributed to the progress of battery system integration technology in new energy vehicles.
The core team of the company has accumulated rich experience in R&D, production, quality management and other aspects, and has mastered the patented technology and advanced production process of new energy vehicle power battery system components centered on battery box bodies. The core team of the company has always closely followed the development trends of the industry, grasped the development trends of the industry and the direction of technological innovation, and can ensure the company's competitive edge in the market through continuous process optimization and product upgrading, possessing independent and autonomous technological innovation capabilities.
Ii. What is the progress of this reorganization? How significant will the synergy be after the completion of the merger and acquisition?
The company's acquisition of Honglian Electronics is proceeding in an orderly manner as planned. The company is currently collaborating with intermediary agencies to conduct due diligence and audit assessment on the target company, Honglian Electronics, and is preparing the application documents. The draft disclosure and application work will be completed as soon as possible.
The company positions its products as "high-precision, high-strength and high-performance" aluminum alloy products. The company has currently achieved "high precision, high strength and high performance", which has been successfully applied in the field of new energy vehicles and is targeting the huge demand gap for "high precision and high surface area" materials in the 3C industry. One of the core products of the target company is a 2μ -level ultra-high precision rotating shaft, and the technology has been applied in the field of robotics. The main production bases of the target company are located in Dongguan and Suzhou. Meanwhile, the target company also has a production plant in Vietnam, forming an advantage of "materials + precision manufacturing" with Yuefeng Aluminum. Through technological complementarity, market synergy and global production capacity layout, a synergy effect is achieved.
Third, the degree of reliance on major clients has significantly weakened, and the trend of client diversification is obvious.
The company's development of new customers and mass production are going well. Since 2024, the company has signed long-term supply agreements with CATL, Zhongke Innovation Energy, Yutong, and XCMG New Energy, and has obtained multiple designated projects for battery box and box-related products. Since 2025, the company's new customer orders have grown rapidly, and the problem of relying on major customers has been fundamentally improved. The company's major clients, such as BYD, CATL, and Geely, have received continuous and stable mass production orders.
Fourth, the company has a complete industrial chain and has formed a closed loop of the industrial chain, significantly enhancing its cost control ability.
In recent years, the company has been actively expanding its industrial chain and has now achieved full industrial chain coverage from melting and casting, mold design and manufacturing, extrusion, machining, welding, automated production to scrap material recycling. The company's production efficiency has significantly increased and its cost control ability has notably improved.
V. The company's asset-liability ratio is healthy and its operational status is good.
The company replaces the factoring of creditor's rights certificates with higher capital costs through bank loans with lower capital costs, thereby reducing the company's financial costs while maintaining its healthy capital operation. The amount of the company's loans and the balance of the creditor's rights certificates basically maintain a 1:1 relationship to ensure that the risk of the company's asset-liability ratio is controllable.
Vi. The company's long-term cash flow is negative. Are there any corresponding plans to protect the rights and interests of investors?
The main reason for the company's negative cash flow is that it presents the cash flow obtained by factoring or discounting the receivable creditor's rights certificate "Di Lian" and the bills as cash inflows from financing activities, but does not include it in cash inflows from operating activities, resulting in a reduction in cash inflows from operating activities. The company has sufficient and healthy actual cash flow and is in good operating condition.
