Group 1 - The company announced a reduction in the capital of the Tianjin Haihe Bohong New Materials Equity Investment Fund Partnership, which it participated in, resulting in a decrease of its subscribed capital from 29,700,000.00 RMB to 26,686,835.39 RMB, maintaining a 19.80% stake [1][2] - The reduction was approved during the fifth board meeting and the fifth supervisory board meeting held on May 27, 2025, and the fund has completed the necessary business registration changes [2] - The fund's total capital after the reduction is approximately 13,347,819.96 RMB, with the fund's management being handled by Bozheng Capital Investment Co., Ltd. and Tianjin Ruixing Investment Management Co., Ltd. [2]

Core Viewpoint - The company announces a reduction in its capital contribution to the Tianjin Haihe Bohong New Materials Equity Investment Fund, which constitutes a related party transaction, following the fund's exit from certain investments and the need for capital adjustment [1][2][4]. Summary by Sections Transaction Overview - The Tianjin Haihe Bohong Fund reduced its capital contribution from CNY 150 million to CNY 134.78 million after exiting investments in Shandong Kaisheng New Materials Co., Ltd. and Tianjin Jiurui Biotechnology Co., Ltd., receiving a total of CNY 15.218 million [1][4][8]. - The company holds a 19.80% stake in the Haihe Bohong Fund, which is managed by Tianjin Ruixing Investment Management Co., Ltd., a related party in which the company owns 40% [1][5]. Related Party Transaction - The reduction in capital does not constitute a major asset restructuring and is within the board's approval authority, thus not requiring a shareholder meeting [2][3]. - The company has previously approved a reduction in its capital contribution to the fund from CNY 99 million to CNY 29.7 million due to changes in the fund's circumstances [3][4]. Financial Data - The Haihe Bohong Fund's total assets were reported at CNY 301.58 million, with net assets of CNY 301.54 million, and a net profit of CNY 5.44 million for the last audited year [6][7]. - The fund's financial performance showed a significant loss in the previous year, indicating a need for capital restructuring [7]. Approval Process - The board of directors and the supervisory board unanimously approved the capital reduction and related party transaction, confirming compliance with legal and regulatory requirements [12][13]. - Independent directors also supported the transaction, stating it aligns with the fund's operational needs and does not harm shareholder interests [12][13].