Core Viewpoint - The company plans to increase its investment in its wholly-owned subsidiary, Xuanhan Zhengyuan Micro Glass Fiber Co., Ltd., by converting a debt of 209.8951 million RMB into equity, thereby enhancing the subsidiary's financial strength and market competitiveness [1][2][7]. Investment Overview - The investment amount is 209.8951 million RMB, which will increase the registered capital of Xuanhan Zhengyuan to 438.0053 million RMB [5][6]. - The debt conversion into equity will not constitute a related party transaction or a major asset restructuring as per relevant regulations [3][5]. Financial Data - As of December 31, 2024, Xuanhan Zhengyuan had total assets of approximately 906.41 million RMB and total liabilities of approximately 416.78 million RMB, resulting in net assets of approximately 489.62 million RMB [4]. - For the first half of 2025, the company reported total assets of approximately 884.91 million RMB and total liabilities of approximately 469.56 million RMB, with net assets of approximately 415.35 million RMB [4]. Impact of the Investment - The conversion of debt to equity is expected to meet the operational and financial needs of the subsidiary, enhancing its asset strength and market competitiveness, which aligns with the company's strategic investment planning [7]. - The company will maintain 100% ownership of Xuanhan Zhengyuan after the capital increase [6][7]. Legal and Procedural Aspects - The debt-to-equity conversion requires approval from market supervision authorities, and the company will assist in the necessary legal procedures for the registration change [6][7].

Group 1 - The company plans to distribute a cash dividend of RMB 0.02 per share (including tax) based on the total share capital on the record date for the profit distribution [3][4][5] - The total amount of cash dividends to be distributed is estimated to be RMB 20,433,607.06 (including tax), which represents 33.89% of the net profit attributable to shareholders for the corresponding period [4][5][6] - The profit distribution plan is subject to approval by the company's shareholders' meeting [5][6] Group 2 - The company held a board meeting on August 20, 2025, where the cash dividend proposal was approved, aligning with the company's profit distribution policy and shareholder return plan [6][8] - The audit committee of the board also approved the cash dividend proposal, stating it complies with relevant regulations and reflects the company's commitment to reasonable returns for investors [8][9] - Independent directors expressed that the profit distribution plan aligns with the company's long-term development needs and does not harm the interests of shareholders, especially minority shareholders [9] Group 3 - The company has issued a report on the use of raised funds, detailing the actual amount raised and its allocation [31][32] - The total amount raised from the issuance of convertible bonds was RMB 510 million, with a net amount of RMB 501.73 million after deducting fees [31][32] - As of June 30, 2025, the company has utilized RMB 442.50 million of the raised funds, with a remaining balance of RMB 68.83 million [33][34] Group 4 - The company has established a special account for the management of raised funds, ensuring compliance with relevant regulations [34][36] - The company signed a tripartite supervision agreement with banks to manage the raised funds, ensuring proper oversight [36][37] - The company has not used idle raised funds for temporary working capital, maintaining the integrity of the investment projects [46][49] Group 5 - The company plans to increase its wholly-owned subsidiary, Xuanhan Zhengyuan Microfiber Co., Ltd., by converting debt into equity, amounting to RMB 20.99 million [60][61] - This investment is part of the company's ongoing project to produce high-performance ultra-fine glass fiber, which has already reached its intended operational state [60][61] - The board has approved this investment, which does not require shareholder approval as it falls within the board's authority [61][62]

Group 1 - The company announced the implementation of a project for the annual production of 50,000 tons of high-performance ultra-fine glass fiber cotton, which is managed by its wholly-owned subsidiary, Xuanhan Zhengyuan [1] - The company previously borrowed 209.8951 million RMB from its subsidiary to fund the project, which has a total investment of 213.1264 million RMB, including financial income and interest [1] - The project is expected to reach its intended usable status by June 2024 [1] Group 2 - The company plans to increase its investment in Xuanhan Zhengyuan through a debt-to-equity conversion, resulting in a registered capital increase of 209.8951 million RMB for the subsidiary [1]

Core Viewpoint - The company is increasing its investment in its wholly-owned subsidiary, Hunan Maoyuan Forestry Co., Ltd., by converting 1.4 billion yuan of debt into equity, which will improve the subsidiary's financial structure and reduce its debt ratio significantly [1][5]. Group 1: Investment Details - The investment amount is 1.4 billion yuan, which will increase the registered capital of Maoyuan Forestry from 471.48 million yuan to 1.87148 billion yuan [1][2]. - This capital increase does not require approval from the shareholders' meeting and does not constitute a related party transaction or a major asset restructuring as per regulations [2][5]. Group 2: Subsidiary Overview - Maoyuan Forestry was established on June 28, 2005, with a registered capital of 471.48 million yuan and is located in the Hunan Free Trade Zone [2]. - As of the end of December 2024, Maoyuan Forestry had total assets of 3.43913 billion yuan, total liabilities of 2.96072 billion yuan, and an asset-liability ratio of 86% [2][4]. Group 3: Debt Conversion Impact - The company will convert 1.4 billion yuan of Maoyuan Forestry's debt into paid-in capital, reducing its debt ratio from approximately 86% to around 45% [5][6]. - The equity structure of Maoyuan Forestry will remain unchanged, continuing as a wholly-owned subsidiary of the company [5]. Group 4: Purpose and Impact of the Capital Increase - The capital increase aims to align with the State-owned Assets Supervision and Administration Commission's guidelines for reducing leverage in high-debt subsidiaries [5]. - Improving Maoyuan Forestry's financial structure is expected to enhance its risk resistance, operational sustainability, and support future business development [5].

Overview - The company has completed a capital increase through debt-to-equity conversion for its wholly-owned subsidiary and subsidiary, aiming to optimize the asset-liability structure and enhance competitive advantages [1][2] Capital Increase Details - The company approved a capital increase of USD 11.58 million for its subsidiary Cheersson Queretaro Precision Metal Forming S. DE R.L.DE C.V. (referred to as "Mexico Rema"), with USD 5,000 allocated to registered capital and USD 11.575 million to capital reserves [1] - The registered capital of BVI Rema increased from USD 10,000 to USD 15,000, while Mexico Rema's registered capital rose from 19,286,595 Mexican Pesos to 29,184,331.41 Mexican Pesos [2] Shareholding Structure - Post-capital increase, the shareholding structure of Mexico Rema is as follows: - BVI Rema: 25,325,731.41 Mexican Pesos (86.78%) - Rema (Hong Kong) Technology Co., Ltd.: 3,858,600.00 Mexican Pesos (13.22%) - Total: 29,184,331.41 Mexican Pesos (100.00%) [2]