China Zhongji Investment participated in the pre-IPO round of financing for Yatong Group.

Recently, China Zhongji Investment completed a Pre-IPO round of financing for Laizhou Yatong Metal Products Group Co., Ltd. (hereinafter referred to as "Yatong Group") China Zhongji Investment has been deeply involved in the automotive industry chain and has already invested in projects such as Dayun Automobile, BAIC New Energy, and Sitong New Materials. Yatong Group is also expected to launch its IPO plan in the near future.

Yatong Group, formerly known as Laizhou Yatong Metal Manufacturing Co., Ltd., established in April 2002, has developed from a simple manufacturing enterprise into a large group enterprise over more than a decade, forming a business structure with two major business segments and seven major production bases.

Yatong Group's two major business segments include automotive parts manufacturing and mining special vehicle business. The automotive parts manufacturing business began in 2003, mainly including the research, development, production, and sales of automotive stamping and welding assembly components. In 2005, the company became a supplier to China National Heavy Duty Truck Group, in 2006, it became a Tier-1 supplier to SAIC-GM, and in 2008, Yatong Mold Co., Ltd. was established. Currently, it has become a Tier-1 supplier to SAIC-GM, China National Heavy Duty Truck Group, SAIC Group, Daimler, BAIC Foton, and Weichai Power. In 2010, Laizhou Yatong Heavy Equipment Co., Ltd. (hereinafter referred to as "Yatong Heavy Equipment"), a wholly-owned subsidiary of Yatong Group, was established, mainly engaged in the research and development and production of explosion-proof special vehicles for mines, and gradually established a leading advantage in the market segment.

Yang Xiaoying, Managing Director and Partner of China Zhongji Investment, said that the investment in Yatong Group is mainly based on the following reasons:

1. Clear Strategy, Promising Prospects

The founder of Yatong Group seized the opportunity of the rapid development of China's automotive industry, leading the company from passenger car parts to quickly become a core supplier to first-tier automakers, entering the commercial vehicle sector, and, through eight years of intensive investment, developed a series of explosion-proof special vehicles for mines, addressing industry pain points and achieving continuous rapid development. The clear development strategy has enabled the company to overcome cycles and achieve counter-cyclical growth, and the future development prospects of the company are good, with sustainable growth expected.

2. High-Quality Customers, Stable Cooperation

Yatong Group's main customers are leading mainstream automakers such as SAIC-GM and China National Heavy Duty Truck Group, and large mining enterprises such as China Shenhua. As a Tier-1 supplier, the company has been working closely with SAIC-GM, China National Heavy Duty Truck Group, SAIC Passenger Vehicle, SAIC Commercial Vehicle, Daimler, BAIC Foton, and Weichai Power for over ten years, enjoying high customer loyalty. The development cycle of automotive stamping and welding parts is relatively long, running concurrently with the development of the whole vehicle project, and requires long-term prior technical and design coordination, as well as special mold and process development. Due to production and time costs, the cooperation between automakers and stamping parts companies is relatively stable. The company's explosion-proof special vehicles for mines fill a domestic gap, addressing industry pain points, and have been well-received by major coal mine customers since their launch.

3. Innovative R&D, Advance Preparation

The company attaches great importance to technological innovation and product R&D, taking a customer-centric approach and proactively pursuing continuous innovation, owning 12 invention patents and numerous utility model patents. The company has actively introduced leading industry talents and established close industry-academia-research cooperation relationships with Tsinghua University, Shanghai Jiao Tong University, GM China Science Institute, the China Nonferrous Metals Research Institute, China University of Mining and Technology, and Changsha Institute of Mining Research, laying a foundation for strengthening long-term R&D capabilities.

In terms of lightweighting, the company's newly developed cast aluminum alloy material has high strength, high toughness, excellent casting filling and solidification shrinkage characteristics, and has completely independent intellectual property rights. It can be widely used in chassis brackets, body structural parts, and engine powertrain systems for sedans, heavy trucks, and light trucks, with technology and cost already leading the industry.

4. Reasonable Industrial Layout, Strong Risk Resistance

In the automotive stamping and welding industry, Yatong Group has strategically deployed two different market segments: passenger vehicles and commercial vehicles, achieving complementary risk management; on the other hand, the mining special vehicle business, after eight years of R&D, has gradually opened up the market and is growing rapidly, greatly improving the company's overall profitability and risk resistance.

▲Yatong Heavy Equipment's key product: Explosion-proof concrete mixing and transportation vehicle

Yang Xiaoying emphasized that Yatong Group has a founder-led entrepreneurial management team, with a solid business foundation and vibrant new businesses. With this investment in Yatong Group, we will empower the company's development, and believe that in the future we can accompany the company's sustainable growth, bringing good returns to investors and achieving a win-win outcome for all parties.

Wen Yuanhua, President and Partner of China Zhongji Investment, said that the automotive industry is entering a new era, with many structural opportunities. China Zhongji Investment is deeply involved in the automotive industry and will further improve its layout in various market segments. We look forward to further cooperation with more high-quality resources in the industry, and work together to contribute to the development and growth of China's automotive industry.