I. Basic Information on Related Party Transactions
Xi'an Baode Automation Co., Ltd. (hereinafter referred to as "the Company") held the seventh meeting of the fourth board of directors on June 4, 2021, and the second extraordinary general meeting of shareholders in 2021 on June 21, 2021. The meetings approved the proposals regarding the sale of the R&D center assets and related party transactions, agreeing to transfer the property located at Room 10101, Building 1, No. 16, Jinye 1st Road, Xi'an High-tech Zone (Property Certificate No.: Shaanxi (2021) Xi'an Real Estate Certificate No. 0095217) and its ancillary facilities and related debts (hereinafter referred to as "R&D Center Assets") to Xi'an Shunheng New Intelligent Control Co., Ltd. (hereinafter referred to as "Shunheng New Intelligent"); and to transfer the land use rights (Land Certificate No.: Shaanxi (2018) Huxian Real Estate Certificate No. 0000521), buildings, ancillary facilities, and related debts (hereinafter referred to as "Caotang Assets") located in Sanfu Village, Caotang Town, Huxian County, to Xi'an Hengxiangsheng Intelligent Technology Co., Ltd. (hereinafter referred to as "Hengxiangsheng"). The counterparties for the transactions of the R&D Center Assets and Caotang Assets are other enterprises controlled by the actual controller of the Company, thus constituting related parties. On June 4, 2021, the Company signed the Asset and Related Debt Transfer Agreement with Xi