Zhejiang Shibao Co., Ltd. (hereinafter referred to as "the Company") is a listed company on the main board of the Shenzhen Stock Exchange. To meet the capital needs for the Company's business development and enhance its capital strength and profitability, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law"), the "Administrative Measures for the Registration of Issuance of Securities by Listed Companies" (hereinafter referred to as the "Registration Measures") and other relevant laws, administrative regulations, departmental rules or normative documents, and the "Articles of Association of Zhejiang Shibao Co., Ltd." (hereinafter referred to as the "Articles of Association"), the Company has compiled the "Analysis Report on the Justification for Zhejiang Shibao Co., Ltd.'s 2026 Issuance of A Shares to Specific Objects" (hereinafter referred to as the "This Justification Analysis Report").
Unless otherwise specified in this Justification Analysis Report, the terms used herein have the same meaning as in the "Zhejiang Shibao Co., Ltd. 2026 Plan for Issuance of A Shares to Specific Objects".
I. Background and Purpose of the Issuance to Specific Objects
(I) Background of the Issuance to Specific Objects
- Continuous Growth of the Automotive Industry and Steady Expansion of the Steering System Market
The automotive industry is one of the pillar industries of global economic development. In 2025, global automobile production is expected to be approximately 99.8 million vehicles, with a compound annual growth rate of 5.16% from 2020 to 2025. As the world's largest automobile market, China's automobile production and sales are expected to reach 34.53 million and 34.40 million vehicles respectively in 2025, with a year-on-year increase of 10.4% and 9.4%. China's automobile sales are expected to exceed 34.75 million vehicles in 2026. As a core component of automobiles, the steering system market is highly correlated with automobile production and sales. The continuous growth of the automotive industry provides a solid market foundation for the steering system industry.
- Synergy of New Energy Vehicles and Intelligent Driving Drives Structural Upgrade of Steering Systems
New energy vehicles are an important direction for the transformation and upgrading of the global automotive industry and a strategic choice for the high-quality development of China's automotive industry. According to statistics from the China Association of Automobile Manufacturers, China's new energy vehicle sales are expected to reach 16.49 million vehicles in 2025, a year-on-year increase of 28.2%, and the market penetration rate of new energy vehicles will reach 47.9%, an increase of 7 percentage points compared to 2024. The rapid development of new energy vehicles poses new technical requirements for steering systems.
At the same time, the continuous upgrading of intelligent driving functions places higher demands on the response speed, control accuracy, and functional safety of steering systems. As intelligent driving levels increase from L2 to L3 and L4, the execution end will inevitably require the steering system to upgrade from mechanical components to electronic components to adapt to the millisecond-level response required for high-level intelligent driving.
The synergistic effect of new energy vehicles and intelligent driving is driving a comprehensive upgrade of steering systems, bringing significant structural market opportunities for domestic steering companies with technical accumulation and forward-looking layout.
- The Window of Technological Change for Independent Brands and Accelerated Progress of Domestic Substitution