Core Viewpoint - Beijing Electronic City High-Tech Group Co., Ltd. (referred to as "the company" or "Electronic City High-Tech") announced that its investee, Electronic City Huaping Dongjiu (Ningbo) Investment Management Co., Ltd. (referred to as "the target company" or "Electronic City Huaping Dongjiu"), plans to reduce its registered capital from RMB 20 million to RMB 10 million, with the reduction amounting to RMB 10 million. This capital reduction does not involve related transactions and does not constitute a major asset restructuring as defined by regulations [2][5][15]. Summary by Sections 1. Overview of the Matter - The target company was established in 2018 with a registered capital of RMB 10 million, equally funded by Electronic City High-Tech and Dongjiu (Shanghai) Investment Management Consulting Co., Ltd. [3] - In 2019, the registered capital was increased to RMB 20 million through additional contributions from both parties [3][4]. 2. Business Performance of the Target Company - Electronic City Huaping Dongjiu has maintained stable operations and profitability since its inception, having distributed profits totaling RMB 31 million, of which RMB 15.5 million was distributed to Electronic City High-Tech, exceeding its historical investment [5]. 3. Purpose of Capital Reduction - The capital reduction is a strategic move to optimize the capital structure of Electronic City Huaping Dongjiu, aligning its financial strength and operational strategy for future development. It aims to enhance the efficiency of capital usage by returning excess funds to shareholders [6]. 4. Details of the Capital Reduction Plan - The capital reduction will be executed proportionally between Electronic City High-Tech and AGL, with each party's capital contribution being reduced by RMB 5 million [11]. - The reduction price is set at RMB 1 per unit of registered capital, totaling RMB 10 million [11]. - The payment for the capital reduction will be made in a lump sum within 15 working days after the completion of the capital reduction registration [12]. 5. Impact on the Listed Company - The capital reduction is expected to optimize the capital structure of Electronic City Huaping Dongjiu and improve the efficiency of shareholder capital usage. Electronic City High-Tech will recover its initial investment of RMB 5 million, which will enhance its capital efficiency without adversely affecting its main business or financial results [15]. 6. Approval Process for the Capital Reduction - The board of directors of the company approved the capital reduction proposal during its meeting on October 14, 2025, and authorized management to handle related matters [16].