FORYOU CORP (Huizhou Foryou Group Co., Ltd.) (002906)

Equity Research Report | Industry: Auto Parts (Automotive Electronics + Precision Die-Casting) | Report Date: September 13, 2026 | Closing prices as of Friday, September 11, 2026; unless otherwise noted, all price/fund data are based on that day's post-close figures

This report was automatically compiled and generated by AI based on public information, for reference only and does not constitute investment advice.

1. Core Summary

The most decision-relevant fact about FORYOU CORP (002906.SZ) is that the change of control is still in progress and has not been completed. On August 21, 2026, controlling shareholder Huayue Investment signed a Share Transfer and Control Acquisition Agreement with Sichuan Jiuzhou Investment Holding Group (controlled by Mianyang SASAC), transferring 148,552,089 shares (28.30% of total share capital) by agreement at RMB 38.1011 per share, for total consideration of approximately RMB 5.660 billion; after the transfer is completed, Huayue Investment's stake will fall from 51.60% to 23.30%, Jiuzhou Group will become the controlling shareholder with 28.30%, and the actual controller will change from Zou Ganrong and seven others to Mianyang SASAC. The company's shares resumed trading on August 24, 2026. However, as of September 11, 2026, the transaction still requires multiple procedures, including approval by the listed company's shareholders' meeting of the proposal to waive share reduction commitments (to be deliberated at the third extraordinary shareholders' meeting on September 21), approval by state-owned asset regulatory authorities, merger control review (if required), Shenzhen Stock Exchange compliance confirmation, and CSDC transfer registration. The announcement explicitly warns of significant uncertainty, and it cannot be stated that the change of control has been completed.

Operationally, the company shows a clear pattern of "revenue growth without profit growth." For H1 2026, revenue was RMB 6.923 billion, up 30.36% year-on-year, and net profit attributable to parent was RMB 401 million, up 17.55% year-on-year, but non-GAAP net profit attributable to parent was only RMB 346 million, up just 7.07% year-on-year, with non-recurring gains and losses mainly from government subsidies of approximately RMB 63.39 million. For Q2 alone, revenue was RMB 3.827 billion (up 35.65% year-on-year, up 23.64% quarter-on-quarter), and net profit attributable to parent was RMB 236 million (up 26.71% year-on-year, up 42.11% quarter-on-quarter), with Q2 accelerating notably versus Q1. The core reason for the pressure on earnings quality is the continued decline in gross margin: H1 2026 gross margin was 16.82% (down 2.06 pct year-on-year), full-year 2025 was 18.36%, versus approximately 20.7% in 2024 and approximately 22.1% in 2022. The company's 2025 board of directors' work report already listed "sharp increases in memory chip prices" as one of its operational challenges, and combined with the "involution" annual price reductions in the auto industry, rising costs and declining prices are simultaneously compressing gross margin.

In terms of business structure, automotive electronics remains the main body, with 2025 revenue of RMB 9.675 billion, accounting for 74.15%, and gross margin of 16.59%; H1 2026 revenue was RMB 5.063 billion, accounting for 73.13%, with gross margin further declining to 14.80%. Precision die-casting had 2025 revenue of RMB 2.859 billion, up 38.47% year-on-year; H1 2026 revenue was RMB 1.574 billion, accounting for 22.73%, with gross margin of 22.84%, a relatively better structure. The company's share position is mixed: HUD had a domestic share of 23.4% in January-February 2025, ranking first (Guosen Securities said approximately 30% on 2026-07-23, differing in methodology and timing); in-vehicle mobile phone wireless charging had a domestic share of 25.3% in January-June 2024, ranking first; but cockpit domain control had a domestic share of only 4.8% in January-March 2025, ranking eighth, meaning the company is not yet a leader in higher-value segments.

On the market and valuation front, the closing price on September 11, 2026 was RMB 26.39 (down 2.11%), with total market capitalization of RMB 13.853 billion; total share capital and circulating share capital were both 525 million shares; PE(TTM) was approximately 16.46x, with multiple measures falling in the 16.5x-17.3x range, and price-to-book ratio of 1.94x. Based on East Money consensus EPS of RMB 1.86 for 2026E, the forward PE is approximately 14x. The stock has closed down for four consecutive trading days, with a cumulative decline of approximately 8% over the past five days. On September 11, volume ratio was 0.80 and turnover rate was 1.01%, indicating a decline on shrinking volume, with sell-side volume exceeding buy-side volume and order imbalance ratio of -21.41%. Institutional ratings over the past three months include 7 firms (6 Buy + 1 Accumulate), with explicit target price ranges of approximately RMB 28.5-43.0 and mainstream center at RMB 32-39, all above the current price, but note that some target prices date from April 2026 and have limited timeliness. Also note that the agreement transfer price of RMB 38.1011 represents a premium of approximately 48% over the pre-suspension closing price of RMB 25.66 on August 21, while the current price of RMB 26.39 is still approximately 30.7% below the transfer price.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Automotive electronics (smart cockpit, intelligent driving/assisted driving, intelligent connectivity): displays, HUD/PHUD, electronic rearview mirrors, smart acoustics, cockpit domain control (Qualcomm/SemiDrive/MediaTek solutions), AI BOX, in-vehicle wireless charging, digital keys, precision motion mechanisms, in-vehicle cameras, APA automatic parking, forward-view all-in-one units, driving domain control, cockpit-driving integrated domain control, etc.; 2025 revenue of RMB 9.675 billion, accounting for 74.15%, gross margin of 16.59%; H1 2026 revenue of RMB 5.063 billion, accounting for 73.13%, gross margin of 14.80%
• Precision die-casting (aluminum alloy, magnesium alloy, zinc alloy precision die-castings and precision machined parts): applied to new energy three-electric systems, power/braking/steering/body control systems, smart cockpit and intelligent driving system components (lidar, HUD, domain control housings), automotive high-speed high-frequency connectors, optical communication modules, etc.; 2025 revenue of RMB 2.859 billion, up 38.47% year-on-year (approximately 21.9% of total); full-year segment gross margin not available; H1 2026 revenue of RMB 1.574 billion, accounting for 22.73%, gross margin of 22.84%
• LED lighting/precision electronic components and others: H1 2026 revenue of RMB 286.7 million, accounting for 4.14%, gross margin of 19.59%; approximately RMB 510 million in 2025 (calculated as the difference, classified as "other" by East Money)
• Second growth curve (AI and robotics-related): optical communication modules and AI high-speed connector die-cast components have entered scaled production; AI data center server cooling/liquid cooling module components, robot high-level and low-level domain controllers, robot displays, joint module components, etc. have obtained design wins or orders; also involved in two-wheelers and low-altitude aircraft (has obtained business related to XPeng AeroHT flying car LCD instruments)

2.3 Position in the Industry Chain and Cost-Profit Structure

The company occupies a "midstream system integration + Tier-1 component" position in the automotive industry chain. It is neither an upstream resource-based company (does not control aluminum/zinc/chip pricing power), nor a downstream brand-based company (does not directly face end consumers), but earns money from midstream integration and manufacturing through full-stack software and hardware R&D, precision molds/precision manufacturing, and multi-category one-stop supporting. In terms of main business structure, automotive electronics accounts for approximately 70% of revenue, precision die-casting approximately 20%, with additional small segments including LED lighting/precision electronic components and second growth curve layout in AI and robotics.

• The core inputs for the automotive electronics segment are chips (cockpit domain control uses Qualcomm, SemiDrive, MediaTek and other solutions, plus AI BOX in cooperation with Intel; historically there were APA products based on Huawei HiSilicon chips) as well as display/optical components and structural parts; the company's 2025 board of directors' work report listed "sharp increases in memory chip prices" as one of its 2025 operational challenges, and Guosen Securities' research report risk warning also cites "upstream chip shortage and raw material price increase risks."
• The main raw materials for the precision die-casting segment are metals including aluminum alloy, magnesium alloy, and zinc alloy (the company has repeatedly stated it "has aluminum alloy, magnesium alloy, and zinc alloy product lines").
• Assessment of bargaining power: For electronic components such as chips, the company is a buyer/price taker (chips are dominated by international giants such as Qualcomm, and 2025 memory price increases directly compressed gross margin); for bulk metals such as aluminum alloy, it is likewise a price taker. The company's cost hedging comes more from in-house mold development, automated production lines (high-vacuum combined extrusion, friction welding, profile spray coating, multi-spindle machining, etc.) and economies of scale, rather than pricing power over upstream.
• Upstream concentration: Only 2022 annual report data available — top five suppliers' total procurement was RMB 850 million, accounting for 21.38% of annual procurement (Source: Zhongzheng Zhixun/Sohu reprint of 2022 annual report, https://news.sohu.com/a/668342064_120988533). This figure is from 2022, relatively dated, and same-basis data for 2024/2025 was not obtained; please refer to the latest annual report for specifics.
• Information gap: The specific raw material cost composition percentages for the automotive electronics segment (chip/display/structural parts proportions) were not found in first-hand disclosures, and no estimates are made.
• Customers are OEMs and Tier-1 component companies. Automotive electronics customers cover domestic brands (Changan, Chery, Geely, Great Wall, BAIC, BYD, Seres, Dongfeng, etc.), new forces (NIO, XPeng, Li Auto, Xiaomi, AITO, Leapmotor, etc.), and joint ventures/foreign companies (STELLANTIS Group, SAIC Volkswagen, FAW-Volkswagen, Volkswagen Anhui, SAIC-GM, Ford, Nissan, Hyundai, Kia, VINFAST, etc.); precision die-casting customers are mainly international Tier-1s including Molex, TE, BorgWarner, UMC, Bosch, ZF, Schaeffler, Forvia, Flex, Valeo, Nidec, etc.
• Customer concentration (key verifiable figures): 2024 annual report top five customers total sales of RMB 4.681 billion, accounting for 46.08% of annual sales (largest 11.20%, second 10.63%, third 10.17%, fourth 7.08%, fifth 7.00%), with no related-party sales (Source: company 2024 annual report "Major Sales Customers," Sina Finance announcement reprint and chaguwang.cn same-basis data mutually corroborating); 2022 annual report top five customers total RMB 2.145 billion, accounting for 38.05% (Source: 2022 annual report transcription, Sohu/Zhongzheng Zhixun).
• Information gap: The 2025 annual report and 2026 interim report only contain qualitative statements such as "low dependence on single customers" and "balanced top five customer proportions," without disclosing specific percentages — please refer to the latest annual report original text; this is noted as an information gap, the largest in this section.
• Industry range reference: A cninfo document dated 2024-05-14 (convertible bond/refinancing-related inquiry response) states that "Desay SV, Foryou Corp, Aerospace Science & Technology, and Joyson Electronics have relatively large sales scales... top five customer concentration ranges between 30%-56%," which can serve as an industry range reference.
• Structural bargaining dynamics: As a Tier-1/Tier-2 component supplier, the company generally faces annual price reduction (annual price negotiation) pressure from OEMs; the company hedges through multi-category supporting (increasing categories per vehicle), expanding international automaker customers, and ramping new categories, rather than through price increases, consistent with the company's own statement of "intensifying involution in the auto industry" in 2025.
• Absolute accounts receivable: RMB 3.036 billion as of 2023-12-31, RMB 4.249 billion as of 2024-12-31, RMB 4.832 billion as of 2025-12-31, RMB 4.545 billion as of 2026-06-30 (Source: Zhongcaiwang F10 balance sheet, Stockstar/Bank of China Hong Kong balance sheet reprint). Stockstar calculates that the 2026 interim basis "current accounts receivable to latest annual report net profit attributable to parent ratio reached 581.54%," with accounts receivable up 19.52% year-on-year. Turnover metrics (Source: gurufocus.cn/stock/SZSE:002906, single source, quarterly rolling basis, not cross-verified with annual report original text, for reference only): as of the most recent quarter ending 2026-03, accounts receivable turnover days were 127 days, inventory turnover days 82 days, accounts payable turnover days 205 days, cash conversion cycle 3.95 days; annual cash conversion cycle: 2021 84.09 → 2022 72.56 → 2023 62.47 → 2024 36.18 → 2025 17.47. Payables side: notes payable and accounts payable as of 2026-06-30 were RMB 6.341 billion, significantly greater than accounts receivable of RMB 4.545 billion (Stockstar balance sheet). Interpretation: The company's actual occupancy period for upstream suppliers (accounts payable turnover days of approximately 160-205 days) is significantly longer than the credit period extended to customers (receivables of approximately 105-127 days), with the cash conversion cycle compressed from 52-84 days in 2016-2021 to approximately 17 days in 2025, indicating that the company is actually in a position of "net occupation of upstream funds" in terms of working capital, with industry chain bargaining power not weak; however, this also brings a relatively tight payables/current assets structure (Stockstar notes "monetary funds/current liabilities only 18.81%").
• Regarding customer concentration, the 2024 annual report top five customers total sales of RMB 4.681 billion, accounting for 46.08% of annual sales (largest 11.20%, second 10.63%, third 10.17%, fourth 7.08%, fifth 7.00%), with no related-party sales, sourced from the company's 2024 annual report "Major Sales Customers" (Sina Finance announcement reprint, with chaguwang.cn same-basis data mutually corroborating); 2022 annual report top five customers total RMB 2.145 billion, accounting for 38.05% (Source: 2022 annual report transcription, Sohu/Zhongzheng Zhixun). The 2025 annual report and 2026 interim report only contain qualitative statements such as "low dependence on single customers" and "balanced top five customer proportions," without disclosing specific percentages; please refer to the latest annual report original text. Upstream supplier concentration is only available from the 2022 annual report: top five suppliers' total procurement was RMB 850 million, accounting for 21.38% of annual procurement; this data is relatively dated and same-basis data for 2024/2025 was not obtained; please refer to the latest annual report for specifics.

FORYOU CORP occupies a "midstream system integration + Tier-1 component" position in the automotive industry chain: it is not an upstream resource-based company (does not control aluminum/zinc/chip pricing power), nor a downstream brand-based company (does not directly face end consumers), but earns money from midstream integration and manufacturing through "full-stack software and hardware R&D + precision molds/precision manufacturing + multi-category one-stop supporting." The gross margin ceiling is constrained by two-sided pressure (upstream chip/metal costs + downstream OEM annual price reductions). The decline in gross margin from 21%-24% in 2020-2022 to 18.4% in 2025 and 16.8% in H1 2026 is a direct reflection of this structure. Whether gross margin can recover in the future depends on three factors: (1) product mix upgrading (increasing share of mid-to-high value new products such as HUD, cockpit domain control, digital acoustics, electronic rearview mirrors); (2) structural hedging from non-automotive businesses (AI optical communication/high-speed connectors/liquid cooling, robot components, zinc alloy die-casting with higher gross margin) ramping up; (3) chip cost declines such as memory — rather than price increases.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Data timing: Market data as of 2026-09-11 close; financials from 2026 interim report (disclosed 2026-08-19/20). 1H26 non-GAAP net profit attributable to parent was RMB 346 million, up 7.07% year-on-year; basic EPS RMB 0.76 (up 16.92% year-on-year); gross margin 16.82% (down 2.06 pct year-on-year); ROE 5.63%; debt-to-asset ratio 53.21% (up 8.71 pct year-on-year); net cash flow from operating activities RMB 352 million (up 45.8% year-on-year). Q2 alone non-GAAP net profit RMB 187 million (up 8.09% year-on-year, up 18.06% quarter-on-quarter), revenue up 23.64% quarter-on-quarter, net profit attributable to parent up 42.11% quarter-on-quarter. Full-year 2024 non-GAAP net profit RMB 632 million (+43.47%), EPS RMB 1.24. 2025 by business: automotive electronics RMB 9.675 billion (+27.25%), precision die-casting RMB 2.859 billion (+38.47%). 2021-2025 revenue (RMB million): 4,488/5,638/7,137/10,158/13,048; net profit attributable to parent (RMB million): 298.6/380.5/464.8/651.4/781.6. Sources: China Securities Journal, East Money, Jiemian News, Great Wall Securities/CICC/Soochow commentary, Everbright Securities International weekly, SZSE annual report PDF, etc.

The 2026 interim report shows "revenue growth without profit growth" characteristics: revenue up 30.36% year-on-year, but net profit attributable to parent only up 17.55% and non-GAAP net profit only up 7.07%, mainly due to price competition and rising raw material (commodity, memory) costs. Non-recurring gains and losses mainly came from government subsidies of approximately RMB 63.39 million. Q2 alone saw both revenue and profit accelerate on a quarter-on-quarter and year-on-year basis. Brokerages judge that Q2 gross margin improved quarter-on-quarter and that cost linkage mechanisms are expected to take effect in H2 (this judgment is an institutional view, not realized data).

3.2 Earnings Forecast

East Money consensus (past six months average, 12 firms covering): EPS 2025A RMB 1.49/2026E RMB 1.86/2027E RMB 2.31/2028E RMB 2.76; corresponding PE at current stock price: 2026E approximately 13.2x/2027E approximately 10.7x/2028E approximately 8.9x. Major brokerage net profit attributable to parent forecasts (RMB 100 million): Great Wall Securities (08-27) 9.26/11.04/12.76; Soochow Securities (08-25) 9.43/11.76/14.22 (revenue RMB 15.56/18.71/22.23 billion, up 19%/20%/19% year-on-year); Guotai Haitong (08-24) 9.46/11.46/14.02 (EPS RMB 1.80/2.18/2.67); Guohai Securities (08-24) 9.57/11.30/13.74; CICC (08-24) 9.40/11.69 (2028E not provided); Orient Securities (08-23) 9.23/11.65/13.71 (EPS RMB 1.81/2.25/2.71); Guosen Securities (08-22) 9.94/12.33/14.77; Huatai Securities (08-22) 9.41/11.47/13.78; Huaxi Securities (08-21) 9.60/11.79/13.95; Kaiyuan Securities (08-31) 9.57/12.07/14.52 (EPS RMB 1.82/2.30/2.77); CITIC Securities (04-30) 9.79/12.23/15.13; Huachuang Securities (04-14) 9.83/11.98/14.20. The 2028E consensus sample includes only 9 firms, with relatively large dispersion.

3.3 Valuation Levels and Institutional Ratings

As of 2026-09-11 close, stock price was RMB 26.39 (down 2.11%), total market capitalization RMB 13.853 billion, circulating market capitalization RMB 13.847 billion, total share capital 525 million shares (fully circulating). PE(TTM) 16.46x, dynamic PE 17.26x, static PE 17.72x, price-to-book ratio 1.94x. Combined with consensus EPS of RMB 1.86 (2026E), the forward PE is approximately 14x. Institutional rating distribution: 7 firms within 3 months (6 Buy + 1 Accumulate), composite rating "Buy" (coefficient 4.86); 12 firms within 6 months (8 Buy, 4 Accumulate); 17 firms within 1 year (11 Buy, 6 Accumulate). Explicit target price range of approximately RMB 28.5-43.0, with mainstream center at RMB 32-39, generally above the 2026-09-11 closing price of RMB 26.39. Note: Some brokerage target prices date from 2026-04 and are no longer the latest, and their earnings bases are higher than post-interim report new forecasts; AAStocks 09-08/09 showed market capitalization of RMB 14.57-14.80 billion, PE(TTM) 17.3-17.9 (slightly earlier date, slightly higher stock price, normal fluctuation).

4. Recent News and Announcements

4.1 Controlling Shareholder Signs Share Transfer Agreement and Control is Proposed to Change

On 2026-08-05 the Huayue Investment board of directors, on 2026-08-14 the Jiuzhou Group board of directors, and on 2026-08-17 the Huayue Investment shareholders' meeting separately approved the transaction; the company received notice on August 17 and suspended trading from market open on August 18. On 2026-08-21, controlling shareholder Huizhou Huayue Investment Co., Ltd. signed a Share Transfer and Control Acquisition Agreement with Sichuan Jiuzhou Investment Holding Group Co., Ltd. (controlled by Mianyang SASAC, holding approximately 74.69%). Transaction details: Huayue Investment transferred 148,552,089 unrestricted tradable shares (28.30% of total share capital) by agreement at RMB 38.1011 per share, for total consideration of RMB 5,659,997,998.20 (approximately RMB 5.660 billion). Post-change equity: Huayue Investment from 270,851,352 shares (51.60%) down to 122,299,263 shares (23.30%); Jiuzhou Group 148,552,089 shares (28.30%), becoming controlling shareholder; actual controller changing from Zou Ganrong, Zhang Yuanze, Wu Wei, Li Daoyong, Sun Yongdi, Chen Shiyin, Li Guanghui, Zeng Renwu to Mianyang SASAC. Lock-up: Jiuzhou Group commits not to transfer the acquired shares within 60 months from the completion of transfer registration, and not to pledge within 36 months; own funds proportion of the acquisition funds shall be no less than 50%, with the self-raised portion potentially being acquisition loans. Business plan: Jiuzhou Group stated no plans to change the main business or make major adjustments within 12 months, and no restructuring plans to inject related-party assets within 36 months from the transfer date. Trading resumed from market open on 2026-08-24 (Monday).

4.2 Approval Procedures Still Required for the Change of Control (Still Incomplete as of 2026-09-11)

As of 2026-09-11 still incomplete, with significant uncertainty: (1) the listed company's shareholders' meeting passing the proposal to waive the voluntary commitments regarding reduction intentions and share lock-up of the controlling shareholder, indirect controlling shareholder, actual controller and their related parties; (2) obtaining approval from the authorized state-owned asset regulatory authority; (3) passing merger control review by the State Administration for Market Regulation (if required); (4) obtaining the SZSE compliance confirmation opinion; (5) CSDC handling share transfer registration; (6) other necessary procedures.

4.3 Transaction Consideration and Control Premium

The pre-suspension closing price on August 21 was RMB 25.66, with market capitalization of approximately RMB 13.469 billion (National Business Daily basis), while the transfer price of RMB 38.1011 corresponds to a total valuation of approximately RMB 20 billion (524,919,041 shares × RMB 38.1011). The agreement transfer price represents a premium of approximately 48% over the market price, significantly higher than the typical 0-20% premium range for A-share control agreement transfers. The unit price and total consideration are consistent in the announcement original text and multiple media (National Business Daily, China Fund News, Cailianshe affiliates). As of 2026-09-11 close at RMB 26.39, with market capitalization of RMB 13.853 billion, it is still approximately 30.7% below the transfer price of RMB 38.1011.

4.4 Performance Commitments (Single Source, Needs to Be Flagged)

According to a National Business Daily report on 2026-08-21: Original controlling shareholder Huayue Investment and eight actual controllers including Zou Ganrong committed that 2026 net profit attributable to parent shall be no less than RMB 860 million; 2026-2027 combined no less than RMB 1.8 billion; 2026-2028 three-year combined no less than RMB 2.8 billion. If not achieved, cash compensation applies, with maximum compensation not exceeding 50% of total transaction consideration; Huayue Investment shall pledge shares equivalent to RMB 2.8 billion to Jiuzhou Group. Total consideration is paid in three installments (40%/30%/30%, approximately RMB 2.264 billion/1.698 billion/1.698 billion), with the second installment after transfer registration and the third installment after board and management restructuring is completed. Reference: 2025 net profit attributable to parent was approximately RMB 782 million. This set of figures was only found in one National Business Daily report and could not be verified with the same level of detail from other sources; it is recommended to verify against the announcement original text.

4.5 Resolutions of the Sixth Meeting of the Fifth Board of Directors

2026-08-18 sixth meeting of the fifth board of directors: approved the 2026 interim report; renewed the appointment of Deloitte Touche Tohmatsu Certified Public Accountants as the 2026 auditor, with audit fees estimated at RMB 2.73 million (including RMB 300,000 for internal control audit); due to cumulative exercise of 2,000 stock options by incentive recipients, registered capital changed from RMB 524,917,041 to RMB 524,919,041, with corresponding amendments to the Articles of Association; resolved to convene the second extraordinary shareholders' meeting on 2026-09-08.

4.6 Resolutions of the Seventh Meeting of the Fifth Board of Directors and the Commitment Waiver Proposal

2026-09-03 seventh meeting of the fifth board of directors: approved the "Proposal on Waiving the Voluntary Commitments Regarding Reduction Intentions and Share Lock-up of the Controlling Shareholder, Indirect Controlling Shareholder, Directors and/or Senior Management and Their Close Relatives" (4 votes in favor, with related directors Zou Ganrong, Zhang Yuanze, Wu Wei, Li Daoyong, Sun Yongdi recusing); and resolved to convene the third extraordinary shareholders' meeting on 2026-09-21. Waiver content: Huayue Investment and Jiangxi Yuecai waive commitments made at IPO including "long-term holding to ensure controlling status" and "limited reduction under the premise of not losing controlling status"; Zou Ganrong and other current directors/senior management and close relatives Ren Yun and You Bo waive the "and/or indirect" wording in the original commitments (i.e., the annual transfer cap is calculated only on 25% of "directly held" shares); former senior management Zeng Renwu and Chen Shiyin's commitments have been fulfilled upon departure. The announcement states the waiver "does not contain irrevocable or unalterable language." Announcement numbers 2026-037/038/039.

4.7 Resolutions of the 2026 Second Extraordinary Shareholders' Meeting

2026-09-08 second extraordinary shareholders' meeting (on-site + online): 332 shareholders and proxies attending, representing 312,367,710 shares, accounting for 59.5078% of voting shares; passed the "Proposal on Renewing the Appointment of the Accounting Firm" (99.9151% in favor) and the "Proposal on Changing the Company's Registered Capital and Amending the Articles of Association" (special resolution, 99.9181% in favor).

4.8 Notice of the 2026 Third Extraordinary Shareholders' Meeting

The 2026-09-21 third extraordinary shareholders' meeting (record date 2026-09-14, on-site registration date 2026-09-18) will deliberate the commitment waiver proposal, with related shareholders recusing from voting and separate vote counting for minority investors. As of the cutoff of these minutes (approximately September 11), results are not yet available.

4.9 Participation in the 2026 Guangdong Jurisdiction Investor Collective Reception Day and Interim Results Briefing

From 15:30-17:00 on 2026-09-15, the company will participate in the "2026 Guangdong Jurisdiction Investor Collective Reception Day and Jurisdiction Listed Company Interim Results Briefing" (Panorama Roadshow), with attendees: Chairman and President Zou Ganrong, Chief Financial Officer Peng Zibin, and Board Secretary Li Cuicui.

4.10 2026 Interim Results Announcement

2026-08-19/20 disclosed the 2026 interim report: total operating revenue RMB 6.923 billion (YoY +30.36%); net profit attributable to parent RMB 401 million (YoY +17.55%); non-GAAP net profit attributable to parent RMB 346 million (YoY +7.07%); net cash flow from operating activities RMB 352 million (+45.8%); EPS RMB 0.7645. Q2 alone: revenue RMB 3.827 billion (YoY +35.65%, QoQ +23.64%); net profit attributable to parent RMB 236 million (YoY +26.71%, QoQ +42.11%); non-GAAP RMB 187 million (YoY +8.09%, QoQ +17.6%). Q1 net profit attributable to parent RMB 166 million, revenue RMB 3.096 billion. Structural characteristics: high revenue growth but "revenue growth without profit growth" tendency (non-GAAP growth only 7.07%); non-recurring gains and losses mainly composed of government subsidies of RMB 63.39 million. Dividends: 2026-08-20 interim "no profit distribution"; previously on 2026-04-29 announced the 2025 annual plan of RMB 5.00 per 10 shares (ex-dividend date field not clearly displayed on the page I obtained, needs verification).

4.11 No Q3 Earnings Preview

As of 2026-09-11, no 2026 Q3 earnings preview/pre-increase announcement was found.

4.12 Investor Relations Interaction (AI Computing-Related, 2026-09-10)

Data center cabinet products include aluminum alloy and zinc alloy multi-series precision components, with some projects "already beginning mass production this year," currently accounting for a relatively small proportion of company revenue. Copper alloy liquid cooling module heat dissipation components have completed sample testing. The company has laid out cold-forged aluminum alloy optical module housings and liquid cooling CAGE components, with related projects in progress (no disclosure on whether customer orders/design wins have been obtained). On 2026-09-03, the 10jqka concept database added the "equity transfer (M&A restructuring)" concept tag.

4.13 Repurchases and Shareholder Increases/Decreases

Repurchases: No share repurchase plans or repurchase progress announcements were found for the company during this period; tentatively judged as "none." If the report requires a definitive conclusion, it is recommended to further check the CNINFO "repurchase" announcement catalog. Shareholder increases/decreases: Apart from the aforementioned "waiver of reduction commitments" matter, no actual reduction announcements by the controlling shareholder or directors/supervisors/senior management during August-September 2026 were found; the latest records shown in Baidu Finance's "senior management increases/decreases" section are still historical data such as Liu Bin's reduction of 20,000 shares on 2023-01-16, which is stale information and should not be cited as "recent news."

4.14 Regulatory and Policy Situation

No regulatory inquiries, penalties, or case filings against the company. The policy-related approvals involving the company are approval by the state-owned asset regulatory authority and merger control review by the State Administration for Market Regulation (if required).

4.15 Brokerage Views (as News-Side Background)

Concentrated ratings after the interim report: Guotai Haitong 2026-08-25 Buy/target price RMB 32.40; CICC 2026-08-24 Buy/RMB 37.60; Orient Securities 2026-08-23 Buy/RMB 38.72; Huatai Securities (late August) Buy/RMB 28.47; Guosen Securities 2026-07-23 Buy/RMB 32.18. Average target price RMB 37.00 (range RMB 28.47-45.53). This summary comes from a single aggregation page (Baidu Finance), representing multiple brokerages but through second-hand aggregation; it is recommended to verify dates against each brokerage's original research report as needed.

4.16 Uncertainty and Usage Notes

1. The change of control is not yet complete: multiple procedures including the shareholders' meeting (9/21) waiver proposal, state-owned asset approval, merger control review, SZSE compliance confirmation, and CSDC transfer registration have not been completed. The announcement explicitly warns of "significant uncertainty," and no statement should be written as "change of control completed." 2. Performance commitments (RMB 860 million/1.8 billion/2.8 billion) and three-installment payment ratios are currently only found in one National Business Daily report, a single source, and need to be verified against the original Share Transfer Agreement/Equity Change Report. 3. The large price gap between the transfer price of RMB 38.1011 and the market price of RMB 26-29 (premium of approximately 48%) is genuine announcement data but has room for interpretation (control premium, bidding process, etc.); the report should present both figures and flag the difference. 4. Market data (RMB 26.39, market capitalization RMB 13.853 billion, PE(TTM) 16.46) are based on the 2026-09-11 close; the September 10 close was RMB 26.96, with market capitalization of RMB 14.152 billion; the two-day sources differ (Cailianshe cls.cn / SZSE page), with good consistency. 5. These minutes do not cover developments after 2026-09-11 (such as the 9/15 results briefing and 9/21 shareholders' meeting results); if the latest status is needed, a new search should be conducted. 6. "No repurchases" is a negative conclusion based on search results, subject to tool search recall limitations, not exhaustive verification.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

5.3 Short-Term Outlook (Next Week, Scenario Analysis, For Reference Only)

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

Automotive electronics (smart cockpit/intelligent driving) benefits from increasing automotive intelligence penetration. The mid-term market space for the combination of center console displays + LCD instruments + HUD + cockpit domain control + wireless charging is estimated by Guosen Securities to exceed RMB 550 billion globally by 2030. Domestic suppliers continue to gain share through cost advantages and rapid response, with competitors including Desay SV, Foryou Corp, Joyson Electronics, Hirain Technologies, Aerospace Science & Technology, etc. Precision die-casting (automotive lightweighting + AI cooling structural components) demand comes from new energy three-electric systems, intelligent driving perception component housings (lidar/HUD/domain control), and newly added AI data center cooling/liquid cooling components. Domestic manufacturers are replacing foreign players in a market with numerous, relatively fragmented players.

6.2 Competitive Landscape

• Automotive electronics industry characterization: Benefits from increasing automotive intelligence penetration. The mid-term market space for the combination of center console displays + LCD instruments + HUD + cockpit domain control + wireless charging is estimated by Guosen Securities to exceed RMB 550 billion globally by 2030; domestic suppliers continue to gain share through cost advantages and rapid response.
• Automotive electronics competitors: Desay SV, Foryou Corp, Joyson Electronics, Hirain Technologies, Aerospace Science & Technology, etc.
• Precision die-casting industry characterization: Demand comes from new energy three-electric systems, intelligent driving perception component housings (lidar/HUD/domain control), and newly added AI data center cooling/liquid cooling components; domestic manufacturers are replacing foreign players in a market with numerous, relatively fragmented players.
• Foryou market position data (all sourced): HUD domestic market share of 23.4% in January-February 2025, ranking first (Gasgoo data, cited from Xiangcai Securities 2025-06-09 research report); 2025 annual report self-statement "HUD product market share ranks first domestically, global market share among the top"; Guosen Securities (2026-07-23) states HUD domestic market share of approximately 30%, first domestically — the two share figures (23.4% vs 30%) differ in methodology and timing, not contradictory but need to note respective time points.
• Foryou market position data (all sourced): In-vehicle mobile phone wireless charging domestic share of 25.3% in January-June 2024, first (Zoss Automotive Research, cited from Xiangcai Securities research report); 2025 annual report self-statement "market share continues to rank first domestically, global market share rose to second."
• Foryou market position data (all sourced): Cockpit domain control domestic share of only 4.8% in January-March 2025, ranking eighth (Gasgoo, cited from Xiangcai Securities research report) — indicating the company is not yet a leader in the higher-value domain control segment, which represents its share improvement potential.
• Customer structure: Extending from domestic brands + new forces to joint ventures/foreign companies (2025 annual report added design wins from SAIC Volkswagen, FAW-Volkswagen, Volkswagen Anhui, SAIC-GM, Ford North America, Changan Ford, Changan Mazda, Dongfeng Nissan, Beijing Hyundai, Yueda Kia, STELLANTIS, VINFAST, etc.).
• Capacity/scale signals: 2025 automotive electronics vehicle supporting sales volume of 21.1615 million pieces/sets (2024: 13.8147 million pieces/sets); precision die-casting sales volume of 598 million pieces (2024: 392 million pieces), production volume of 638 million pieces (Source: askci operating business data, cited from company periodic reports). In 2022-08, the company announced a planned private placement to raise no more than RMB 2 billion for smart automotive electronics product capacity expansion, automotive lightweight component capacity expansion, and intelligent driving platform R&D. 2026 capital expenditure focus: Thailand production base, automotive electronics Huizhou base expansion, AI zinc alloy die-casting expansion, precision die-casting Changxing Phase III project (poems 2026-06-08, single source, specific investment amounts could not be cross-verified).

6.3 Major Competitors

Compared with comparable companies, Foryou Corp's most direct comparable in automotive electronics is Desay SV (domestic leader in smart cockpit + intelligent driving domain control, larger sales scale than Foryou, stronger economies of scale and brand premium); Joyson Electronics has the largest scale and highest globalization; Hirain Technologies leans toward an "electronics + software" route with smaller scale; Aerospace Science & Technology is smaller in size with a product structure leaning toward instruments/sensors. In precision die-casting, Guangdong Hongtu, IKD, and Wencan Group are industry-general comparables, with Wencan Group betting on integrated die-casting/body structural components with larger tonnage and higher per-vehicle value. Foryou's key differentiation lies in: HUD domestic share of 23.4% in January-February 2025, ranking first (Gasgoo, cited from Xiangcai Securities 2025-06-09 research report; Guosen Securities 2026-07-23 states approximately 30%, differing in methodology and timing); in-vehicle mobile phone wireless charging domestic share of 25.3% in January-June 2024, first (Zoss Automotive Research, cited from Xiangcai Securities research report); but cockpit domain control domestic share of only 4.8% in January-March 2025, ranking eighth (Gasgoo, cited from Xiangcai Securities research report), indicating it is not yet a leader in higher-value segments, and share improvement potential is its main attraction. In terms of customer structure, the company is extending from domestic brands + new forces to joint ventures/foreign companies (2025 annual report added design wins from SAIC Volkswagen, FAW-Volkswagen, Volkswagen Anhui, SAIC-GM, Ford North America, Changan Ford, Changan Mazda, Dongfeng Nissan, Beijing Hyundai, Yueda Kia, STELLANTIS, VINFAST, etc.). Note: The precision die-casting comparable company list is industry-general benchmarking, not verified from the company's annual report "same-industry comparable companies" original text; recommend confirmation with the latest annual report/prospectus; the 2025 annual report and 2026 interim report did not disclose specific top five customer percentages, which is the largest information gap. Also note data timeliness: The latest hard data in these minutes are H1 2026 (as of 2026-06-30, disclosed in the 2026 interim report on 2026-08-20) and the 2025 annual report (disclosed 2026-03-28); market/financial page crawl dates are late August 2026 basis; gross margin for 2021 (21.0% vs 21.56%) and 2023 (21.60% vs 22.36%) show approximately 0.8-1.4 percentage point differences across different data sources, while 2024, 2025, and 2026H1 are consistent across three sources; turnover days data is from gurufocus.cn single source and quarterly rolling basis, for directional reference only; precision die-casting full-year 2025 gross margin was not separately obtained; upstream cost composition percentages were not found in first-hand disclosures, and no estimates are provided.

7. Risk Warnings

• Significant uncertainty risk regarding the change of control: As of September 11, 2026, the Share Transfer and Control Acquisition Agreement still requires the listed company's shareholders' meeting to pass the proposal to waive the voluntary commitments regarding reduction intentions and share lock-up of the controlling shareholder, indirect controlling shareholder, actual controller and their related parties (to be deliberated at the third extraordinary shareholders' meeting on September 21, 2026, with related shareholders recusing from voting), and requires approval from the authorized state-owned asset regulatory authority, merger control review by the State Administration for Market Regulation (if required), SZSE compliance confirmation opinion, CSDC share transfer registration, and other procedures. The company announcement has explicitly warned of significant uncertainty, and the possibility of transaction failure or delay objectively exists.
• Risk of continued gross margin decline: The company's consolidated gross margin has fallen from approximately 22.1% in 2022 and approximately 20.7% in 2024 to 18.36% in 2025 and 16.82% in H1 2026 (down 2.06 pct year-on-year), with the automotive electronics segment gross margin declining from 16.59% in 2025 to 14.80% in H1 2026. The company's 2025 board of directors' work report has listed "sharp increases in memory chip prices" as an operational challenge, and Guosen Securities research report also warns of "upstream chip shortage and raw material price increase risks"; if memory chip and aluminum, magnesium, zinc and other metal prices continue to rise while annual price reduction pressure from OEMs remains unchanged, gross margin may continue to be squeezed from both sides.
• Earnings quality and "revenue growth without profit growth" risk: H1 2026 revenue up 30.36% year-on-year, but net profit attributable to parent only up 17.55% and non-GAAP net profit attributable to parent only up 7.07%, with non-GAAP growth far below revenue growth; non-recurring gains and losses mainly from government subsidies of approximately RMB 63.39 million, and non-GAAP performance better reflects core operating profitability. If government subsidies and other non-recurring items decrease going forward, net profit attributable to parent growth may further converge toward non-GAAP growth, deviating from the brokerage consensus of RMB 0.92-0.99 billion for 2026E net profit attributable to parent.
• Risk of single-source performance commitment details and achievability: Regarding the commitments that 2026 net profit attributable to parent shall be no less than RMB 860 million, 2026-2027 combined no less than RMB 1.8 billion, 2026-2028 combined no less than RMB 2.8 billion, and details such as cash compensation if not achieved (capped at 50% of total consideration), Huayue Investment pledging shares equivalent to RMB 2.8 billion, and total consideration paid in 40%/30%/30% three installments, these are currently only found in one National Business Daily report (2026-08-21) and could not be verified with the same level of detail from other sources; the original Share Transfer Agreement and Equity Change Report should be the basis. Moreover, the committing party's shareholding will drop to 23.30% after the transaction is completed; if compensation is triggered, actual execution capability and share pledge arrangements need continuous monitoring.
• Risk of tight accounts receivable and balance sheet structure: Accounts receivable as of June 30, 2026 were RMB 4.545 billion, continuously rising from RMB 3.036 billion at end-2023 and RMB 4.249 billion at end-2024, up 19.52% year-on-year; Stockstar calculates its ratio to latest annual report net profit attributable to parent at 581.54%; during the same period, debt-to-asset ratio was 53.21%, up 8.71 pct year-on-year, and monetary funds/current liabilities only 18.81%. The company relies on long payment terms to upstream suppliers (notes payable and accounts payable of RMB 6.341 billion) to maintain a low cash conversion cycle of approximately 17 days; if supply chain payment terms tighten or downstream customer collections slow, working capital pressure will amplify.
• Risk of uncertain ramp-up pace for precision die-casting and AI/robotics new businesses: Precision die-casting 2025 revenue was RMB 2.859 billion, up 38.47% year-on-year, but full-year 2025 segment gross margin was not separately disclosed, and the sustainability of its H1 2026 gross margin of 22.84% being higher than automotive electronics remains to be verified; among AI and robotics-related businesses, data center cabinet precision components "some projects have already begun mass production this year" but "currently account for a relatively small proportion of company revenue," copper alloy liquid cooling module heat dissipation components have only completed sample testing, and cold-forged aluminum alloy optical module housings and liquid cooling CAGE components are still in progress with no disclosure on whether customer orders or design wins have been obtained. Whether related orders can be converted into scaled revenue is uncertain, and it will be difficult to offset the decline in automotive electronics gross margin in the short term.
• Risk of customer concentration and data disclosure gaps: 2024 annual report top five customers total sales of RMB 4.681 billion, accounting for 46.08% of annual sales (largest 11.20%); 2022 annual report top five was 38.05%; customer concentration shows an upward trend; the 2025 annual report and 2026 interim report only provide qualitative statements of "low dependence on single customers" and "balanced top five customer proportions" without disclosing specific percentages, making it impossible to judge the latest actual level of customer concentration risk. Additionally, upstream cost composition (chip/display/structural parts proportions) was not found in first-hand disclosures, creating an information blind spot in attributing gross margin changes.
• Risk of deviation between stock price and fundamentals/event expectations: The 2026-09-11 closing price of RMB 26.39 is approximately 30.7% below the agreement transfer price of RMB 38.1011, while institutional target price range of RMB 28.5-43.0 (mainstream center RMB 32-39) is generally above the current price, with some target prices dating from April 2026 and limited timeliness; the stock has fallen approximately 8% cumulatively over the past five days and closed down for four consecutive days, with volume ratio of 0.80 and turnover rate of 1.01%, indicating a decline on shrinking volume with sell volume exceeding buy volume (order imbalance ratio -21.41%), showing short-term selling pressure. The stock price is simultaneously influenced by multiple expectations including control change progress, performance commitment fulfillment, and gross margin trajectory; any expectation falling short could bring valuation volatility.
• Risk of undetermined timing for key tracking events: The September 15, 2026 Guangdong jurisdiction investor collective reception day and interim results briefing, and the September 21, 2026 third extraordinary shareholders' meeting deliberation results on the commitment waiver proposal were both still pending as of September 11, 2026; as of the same date, the company had not disclosed a 2026 Q3 earnings preview. If the September 21 waiver proposal fails to pass, the control change process could be hindered; meanwhile, the 2026 interim "no profit distribution" and the 2025 annual plan of RMB 5.00 per 10 shares mean dividend policy continuity also needs to be confirmed by subsequent company announcements.

8. Conclusion and Outlook

The growth logic mainly comes from three lines: First, automotive electronics new products and customer structure upgrading. The company's customers have extended from domestic brands + new forces to joint ventures/foreign companies (2025 annual report added design wins from SAIC Volkswagen, FAW-Volkswagen, Volkswagen Anhui, SAIC-GM, Ford North America, Changan Ford, Changan Mazda, Dongfeng Nissan, Beijing Hyundai, Yueda Kia, STELLANTIS, VINFAST, etc.), 2025 automotive electronics vehicle supporting sales volume of 21.1615 million pieces/sets (2024: 13.8147 million pieces/sets), HUD and wireless charging shares rank first domestically, and cockpit domain control share of only 4.8% means there is share improvement potential in higher-value segments. Second, precision die-casting ramp-up, with 2025 sales volume of 598 million pieces (2024: 392 million pieces), production volume of 638 million pieces, customers including Molex, TE, BorgWarner, Bosch, ZF and other international Tier-1s, with H1 2026 gross margin of 22.84% higher than automotive electronics. Third, AI and robotics-related second curve: optical communication modules and AI high-speed connector die-cast components have entered scaled production, some data center cabinet precision component projects began mass production in 2026 (currently accounting for a relatively small proportion of revenue), copper alloy liquid cooling module heat dissipation components have completed sample testing, cold-forged aluminum alloy optical module housings and liquid cooling CAGE components are in progress, robot high-level and low-level domain controllers, displays, and joint module components have obtained design wins or orders, and the company has also obtained XPeng AeroHT flying car LCD instrument-related business. Brokerage consensus for 2026E net profit attributable to parent is approximately RMB 0.92-0.99 billion (approximately +18% to +27% year-on-year), and 2027E approximately RMB 1.10-1.23 billion.

However, whether the above growth can be realized as profit depends on whether gross margin can stop declining. The industry chain position determines that the company earns money from midstream integration and manufacturing: upstream chips (cockpit domain control uses Qualcomm, SemiDrive, MediaTek solutions, plus AI BOX in cooperation with Intel) and aluminum alloy, magnesium alloy, zinc alloy are all price takers, downstream faces general annual price reduction pressure from OEMs, and the company itself hedges through multi-category supporting, expanding international customers, and ramping new categories rather than price increases. The decline in gross margin from 21%-24% in 2020-2022 to 18.4% in 2025 and 16.8% in H1 2026 is a direct reflection of this structure. The brokerage judgment that "Q2 gross margin improved quarter-on-quarter and cost linkage mechanisms will take effect in H2" is an institutional view rather than realized data. On the working capital side, accounts receivable as of June 30, 2026 were RMB 4.545 billion and notes payable and accounts payable were RMB 6.341 billion; the company's actual occupancy period for upstream is longer than the credit period extended to customers, with the 2025 cash conversion cycle compressed to approximately 17 days, indicating industry chain bargaining power is not weak, but monetary funds/current liabilities of only 18.81% and debt-to-asset ratio of 53.21% (up 8.71 pct year-on-year) also mean a relatively tight structure, with accounts receivable to latest annual report net profit attributable to parent ratio reaching 581.54%.

The change of control is another important variable independent of fundamentals. If the transaction is completed, the company will become an enterprise under Mianyang SASAC, with Jiuzhou Group committing not to transfer the acquired shares within 60 months, not to pledge within 36 months, and stating no plans to change the main business or make major adjustments within 12 months and no restructuring plans to inject related-party assets within 36 months, which is conducive to business continuity. According to a National Business Daily report on 2026-08-21 (single source, needs verification against announcement original text), original controlling shareholder Huayue Investment and eight actual controllers committed that 2026 net profit attributable to parent shall be no less than RMB 860 million, 2026-2027 combined no less than RMB 1.8 billion, 2026-2028 combined no less than RMB 2.8 billion, with cash compensation if not achieved, capped at 50% of total transaction consideration; Huayue Investment shall pledge shares equivalent to RMB 2.8 billion to Jiuzhou Group, and total consideration is paid in 40%/30%/30% three installments. Based on 2025 net profit attributable to parent of RMB 782 million, the 2026 commitment of RMB 860 million corresponds to approximately +10% growth, lower than brokerage consensus and also lower than the +17.55% already achieved in H1 2026. The achievability of this commitment target, and whether the September 21 commitment waiver proposal can pass the shareholders' meeting (related shareholders recusing, minority investors separately counted), are key nodes to track going forward. Currently, the company's participation in the Guangdong jurisdiction investor collective reception day and interim results briefing on September 15, 2026, and the third extraordinary shareholders' meeting on September 21, 2026, are both events with results not yet available.

Data Sources

• 002906 Foryou Corp
• Foryou Corp (sz002906)
• Foryou Corp (002906) - Foryou Corp (002906)
• Foryou Corp Listed Company Information - Foryou Corp Listed Company Information
• Foryou Corp (002906)_Stock Overview_Stock Price_Real-time Quotes_Charts_News_Commentary_Financial Reports_FinScope-AI Makes Investing Simpler
• Stock Code: 002906
• Foryou Corp (SZ002906) Business Analysis-PC_HSF10 Data
• Foryou Corp (002906.CH) - Traditional Business Continues to Grow, Second Growth Curve Gradually Clear - Weekly Picks
• Foryou Corp (002906) What Does the Company Do
• Foryou Corp: H1 2025 Net Profit RMB 341 Million, Up 18.98% Year-on-Year - Zhongzheng Intelligent Financial News Foryou Corp (002906) Disclosed 2025 Interim Report on August 20