Announcement on Subsidiary Capital Increase, Company Waiving Preemptive Rights, and Related Party Transaction
The company and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or major omissions.
I. Overview of the Transaction and Related Party Transaction
1. Transaction Overview
To promote the long-term development of Suzhou Victory Precision Manufacturing Technology Co., Ltd.'s (hereinafter referred to as "the Company" or "Victory Precision") wholly-owned subsidiary, Anhui Feiluo New Material Technology Co., Ltd. (hereinafter referred to as "Anhui Feiluo"), Anhui Feiluo plans to introduce Shucheng Shengto New Energy Investment Partnership (Limited Partnership) (hereinafter referred to as "Shucheng Shengto") as a new shareholder through a capital increase.
Prior to this capital increase, Anhui Feiluo was a wholly-owned subsidiary held 100% by the Company. Shucheng Shengto plans to increase the capital of Anhui Feiluo by RMB 35.20 million. The Company waives its preemptive rights for this capital increase. After the capital increase, Anhui Feiluo's registered capital will increase from RMB 200 million to RMB 235.20 million. The Company will hold 85.03% of the shares, and Shucheng Shengto will hold 14.97%. Anhui Feiluo will transition from a wholly-owned subsidiary to a holding subsidiary of the Company. The scope of the Company's consolidated financial statements remains unchanged.