Investment Overview - The company plans to establish two wholly-owned subsidiaries in Hong Kong: Xunchi Hong Kong Limited with a registered capital of HKD 50 million and Xunchi Hong Kong Oriental Limited with a registered capital of HKD 10 million [1][2] - The investment aims to leverage Hong Kong's financial ecosystem to enhance cross-border financial services for small and micro enterprises, thereby improving the competitiveness of the company's payment services [1][2] Approval and Compliance - The investment does not require approval from the board of directors or shareholders as per relevant regulations [2] - The establishment of the subsidiaries does not constitute a related party transaction or a major asset restructuring as defined by the Shanghai Stock Exchange [2] Impact on the Company - This investment is a significant step in the company's strategy to deepen digital trade reform and build a global trade comprehensive service provider [3] - The Yiwu Pay platform will enhance its cross-border financial service capabilities, providing compliant fund custody and guarantee payment services, addressing trust issues in transactions [3] - The investment aligns with the company's global development strategy, aiming to provide integrated financial solutions for small and micro enterprises globally, thus creating greater value for clients and driving company growth [3] Risk Considerations - The establishment of the subsidiaries and the application for the TCSP license are subject to government approval, which carries uncertainty [4] - The future operations may face uncertainties due to macroeconomic changes, industry policy shifts, market demand fluctuations, and intensified competition [4]