SCS(SH:601555) Zheng Quan Zhi Xing·2025-07-16 14:12Summary of Key Points Core Viewpoint - The company, Shandong Yahua Electronics Co., Ltd., is collaborating with related parties to establish a controlling subsidiary, Shandong Yahua International Trade Co., Ltd., to enhance its overseas market presence and diversify its international business strategy [1][5][6]. Group 1: Overview of Related Transactions - The investment structure includes Yahua Electronics contributing 3.75 million RMB for a 75% stake, while the related party Liu Shuxin and a partnership contribute 0.5 million RMB and 0.75 million RMB for 10% and 15% stakes respectively [1][2]. - Liu Shuxin, a former director and vice president of the company, is classified as a related natural person, making this transaction a related party transaction [2][9]. - The board of directors and the supervisory board approved the investment proposal, which does not require shareholder approval as it falls within the board's authority [2][9]. Group 2: Necessity and Impact of the Transaction - The establishment of the subsidiary is crucial for the company's strategic development, aiming to enhance customer service capabilities and accelerate penetration into overseas markets [5][6]. - The investment will not adversely affect the company's normal operations or financial status, ensuring no pressure on existing business activities [6][8]. - The subsidiary will be included in the company's consolidated financial statements, and the investment aligns with the company's strategic planning [7][10]. Group 3: Related Party and Other Transaction Parties - Liu Shuxin has a background in various managerial roles and possesses significant experience in overseas market expansion, which is expected to benefit the new subsidiary [3][6]. - The partnership involved in the investment is Zibo Baize Chao Yue Investment Partnership, which is managed by Yahua Information Technology (Shandong) Co., Ltd. [3][4]. Group 4: Approval and Compliance - The independent directors unanimously agreed that the investment is fair and does not harm the interests of the company or its minority shareholders [9][10]. - The transaction complies with relevant regulations and has undergone necessary approval processes, ensuring transparency and fairness [10].