Research Flash | Fuao Co., Ltd. Hosts China International Capital Corporation, Yinhai and 4 Other Institutions; 100 Million Yuan Layout for Flying Cars / Yugan Shock Absorber Production Capacity to Reach 6 Million Units

On March 18, FuAo Automotive Parts Co., Ltd. (referred to as “FuAo Co., Ltd.”) hosted a targeted research session with five institutions, including China International Capital Corporation Yinghai (Hong Kong) Fund Limited and Zhongrun Hong Kong Limited. The company’s management engaged in in-depth discussions with institutional investors on core topics such as emerging business development, merger and acquisition progress, and traditional business transformation, signaling strategic advancements in low-altitude economy, new energy support, and other fields.

Event Overview

According to disclosures, this investor relations activity was a targeted research session held on March 18, 2026, from 4:30 PM to 6:30 PM at FuAo Automotive Parts Co., Ltd., in the form of a symposium. Participating organizations included China International Capital Corporation Yinghai (Hong Kong) Fund Limited, Zhongrun Hong Kong Limited, Huahai Capital (Shenzhen) Limited, Yiting (Hong Kong) Family Management Services Consulting Limited, and FuHengChang Investment.

The company’s reception team comprised key personnel from multiple departments, including Board Secretary Zhang Ning, Securities Affairs Representative Liu Yan, Planning and Development Department Platform Business Planning and Project Management Director Wang Weiguo, Marketing Department (Overseas Business Unit) Marketing Information Business Director Feng Sha, R&D Center R&D Management Engineer Yang Yu, and Finance Control Department (Board Office) General Affairs Supervisor Shen Xiangjun.

Key Research Highlights

1 Billion Yuan Investment in Flying Car Project to Build a Second Growth Curve

Regarding the progress of the FAW Flag Wing Technology investment, the company stated it has invested 1 billion yuan to participate in Flag Zhi Fund, which in turn invests in the flying car project of Flag Wing Technology. In February 2026, the company further invested in FAW Flag Wing (Shenzhen) Technology Co., Ltd. through an open auction on the Shenzhen United Property Rights Exchange. This move is a significant strategic layout in the low-altitude economy and a key step in deepening the industrial chain and accelerating the construction of a second growth curve after securing core product orders such as Xiaopeng Hui Sky Air Conditioner and Battery Cooler.

Yuan’an Shock Absorbers Completed Relocation and Production Capacity to Reach 6 Million Units/Year

Regarding Yuan’an Shock Absorbers’ merger and integration, the company introduced that Chongqing Yuan’an Shock Absorbers Co., Ltd. completed the overall relocation and construction of its factory in February 2026, with the new plant officially put into operation. FuAo Dongji Gong, a subsidiary of FuAo Co., Ltd., fully empowered R&D, processes, and operations. The company mainly supplies electric control shock absorbers, air spring systems, and other products to automakers such as Seres, Blue Electric, and Richee New Energy. In terms of capacity planning, after the first phase reaches full production, it will produce 4 million shock absorbers annually. After the second phase expansion begins in 2027, total capacity will increase to 6 million units per year, significantly surpassing the original capacity.

Traditional Chassis Business Transition Remains Steady; New Energy Customers Continue to Expand

In response to the pressure of transforming traditional fuel vehicle chassis business, the company stated that core components such as chassis, suspension, and shock absorbers are not exclusive to fuel vehicles but are key components shared by both fuel and new energy vehicles. Relying on independent core technology and rapid response capabilities, the company has adapted to the iteration pace of new energy vehicle manufacturers, continuously optimizing customer structure. Currently, it has successfully expanded high-quality new energy customers such as Seres, Chery, and Xiaopeng, demonstrating strong business resilience and a steady transformation process.

Heat Management Business Integration and Upgrading; Secured Projects with Xiaopeng Hui Tian and Others

As a core business segment, heat management has completed resource integration. By acquiring the foreign equity of the former Valeo joint venture, it was converted into a wholly owned subsidiary (now named “FuAo Huaiqi Automotive Heat Management System (Changchun) Co., Ltd.”), achieving full control over core technology and capacity. The business has already secured key customer projects with Xiaopeng Hui Tian, Geely, and others. Moving forward, it will strengthen system integration capabilities and accelerate overseas market deployment, aiming to establish a leading domestic and globally competitive growth segment.

Dual-Track Development of Battery Recycling Business to Build a Full Lifecycle Value Chain

The company’s holding subsidiary FuAo Smart Energy is responsible for the layout of the new energy aftermarket, focusing on two main directions: first, second-life utilization of batteries through testing, disassembly, reassembly, and repair, applying recycled battery packs in energy storage and backup power scenarios; second, element recovery of batteries using hydrometallurgical processes to extract key metals like lithium carbonate, completing a closed-loop full lifecycle of new energy batteries.

Continued Deepening of Overseas Layout; Multi-Path Promotion of Globalization

The company has established presence in key regions such as North America (Mexico) and Europe (Germany), with operational and service agencies in the US and Europe to support global customer needs. In the future, it will combine market conditions and customer demands, advancing overseas business steadily through self-built factories, joint ventures, and acquisitions, optimizing the global business structure.

Focus on Market Value Management to Promote Reasonable Valuation

Regarding the issue of “long-term undervaluation” of market capitalization, the company emphasized its high regard for market performance and intrinsic value alignment. It has incorporated market value management and value enhancement into key priorities, striving to ensure the company’s worth is reasonably reflected.

This research did not involve any major information that required disclosure, and no presentation slides or related attachments were used during the activity.

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