Regarding the new energy vehicle air conditioning compressor project, Beite Technology stated that the project aims to invest in the construction of a new phase of automobile air conditioning compressor production facilities based on the original factory area of ​​Shanghai Guangyu, and plans to produce electric air conditioning compressors and mechanical air conditioning compressors. The project is expected to start production in 2021 and form an annual production capacity of 3 million automobile air conditioning compressors by 2025.

The plan shows that the fundraising project will further expand the production scale of Beite Technology's new energy vehicle electric air conditioning compressors and mechanical power vehicle air conditioning compressor products, and enhance the company's R&D strength and innovation capabilities. Among them, mechanical power vehicle air conditioning compressor products are mainly used in large and medium-sized buses, engineering vehicles, trucks and other commercial vehicles and some passenger cars, and new energy vehicle electric air conditioning compressors are mainly used in new energy vehicles and some commercial vehicles.

It should be noted that the implementer of Beite Technology's fundraising project this time is Shanghai Guangyu. According to the information, Beite Technology completed the purchase of 1 0 0% equity of Shanghai Guangyu by issuing shares and paying cash in 2018, thereby adding an air conditioning compressor business segment. According to the 2019 interim report, Shanghai Guangyu achieved operating income of 231 million yuan and net profit of 27.657 million yuan in the first half of 2019.

Beite Technology stated in the plan that the automotive air-conditioning compressor products produced by Shanghai Guangyu have been widely used in OEM supporting of OEMs in the fields of heavy trucks, light trucks, engineering vehicles, passenger cars, etc., with mature R&D and manufacturing experience and supply chain resources, and have gradually formed the technical advantages of independent R&D and independent intellectual property rights of automotive air-conditioning compressors.

Beite Technology also stated that since the completion of the acquisition of Shanghai Guangyu, the company has gradually deployed automotive air-conditioning compressors, especially new energy vehicle air-conditioning compressors, while actively developing and transforming existing products, making full use of the current market opportunities of the rapid development of the new energy vehicle industry, developing a professional path, extending the industrial chain, and increasing added value, and improving the company's core competitiveness in the new energy vehicle market. This fundraising project is an expansion and upgrade of the company's existing automotive air-conditioning compressor product line, and it is also an important measure for the company to deepen its layout in the new energy vehicle industry.

The plan also shows that before this issuance, the controlling shareholder and actual controller of Beite Technology was Jin Kun, who held 35.33% of the company's shares, and Jin Kun's son Jin Xiaotang held 7.73%. The two were persons acting in concert and held a total of 43.06% of the company's shares. According to this issuance plan, if calculated based on the current share capital, the number of shares issued in this non-public offering will not exceed 107.7 million shares. After the issuance is completed, Jin Kun and Jin Xiaotang will hold a total shareholding ratio of no less than 33.12%. Jin Kun is still the controlling shareholder and actual controller of Beite Technology, which means that this issuance will not lead to a change in the control of Beite Technology.