Core Viewpoint - The company, Inner Mongolia Yili Industrial Group Co., Ltd., is undergoing capital adjustments for its wholly-owned subsidiaries to enhance the efficiency of fundraising and ensure the smooth implementation of investment projects [2][3][6]. Fundraising Basic Situation - The company completed a non-public issuance of shares on December 9, 2021, raising a net amount of RMB 2,000 million after deducting issuance costs of RMB 6,284,207.02 [2][3]. Use of Remaining Fundraising - The company plans to allocate RMB 1,089.50 million of the remaining funds from completed projects, with RMB 689.00 million for AI and safety capability upgrades, RMB 60.00 million for digital equipment upgrades at the Dulun factory, and RMB 341.85 million for working capital [3][4]. Capital Adjustment Details - The company intends to reduce the capital of its subsidiary, Jinhao Yili, by RMB 749.00 million and increase the capital of another subsidiary, Dulun Yili, by RMB 60.00 million [4][5]. Financial Data of Subsidiaries - As of December 31, 2024, Jinhao Yili reported total assets of RMB 4,066.99 million and net assets of RMB 3,947.23 million, with a net profit of RMB 288.42 million [5][6]. - Dulun Yili reported total assets of RMB 203.21 million and net assets of RMB 68.51 million as of December 31, 2024, with a net profit of RMB 1.38 million [5][6]. Impact of Capital Adjustment - The capital adjustments are aligned with the fundraising plan and are expected to improve the efficiency of fund usage, ensuring the successful implementation of investment projects [6][7]. Fundraising Special Account and Supervision Agreement - The company has established a special fundraising account and signed a tripartite supervision agreement with the sponsor and a bank to enhance the management and oversight of the fundraising [6][7][8]. Approval Procedures - The board of directors and the supervisory board have approved the capital adjustments and the establishment of the special fundraising account, confirming compliance with relevant regulations and the protection of shareholder interests [12][13].