Core Viewpoint - Jinshi Technology is divesting its idle assets, specifically the 100% equity of its wholly-owned subsidiary Hunan Jinshi Technology Co., Ltd., to optimize resource allocation and alleviate financial burdens while transitioning to the new energy storage business [1][2]. Group 1: Asset Sale and Financial Status - The asset sale plan was disclosed on August 3, with the transaction details still uncertain, including the buyer and transaction price [1]. - Hunan Jinshi, established in 2019, has been temporarily idle since the completion of its construction in March 2024, with a total asset value of 390 million yuan and liabilities of approximately 58.91 million yuan as of March 2025 [1]. - The subsidiary reported net losses of 14.58 million yuan and 4.30 million yuan for the first quarters of 2024 and 2025, respectively [1]. Group 2: Business Transition and Performance - Jinshi Technology originally focused on cigarette packaging but has faced declining profitability since 2021, leading to the cessation of its cigarette packaging business in 2024 [2]. - The company has shifted its focus to the new energy sector, particularly in supercapacitors and energy storage, aiming to concentrate resources on this strategic transition [2]. - From 2022 to 2024, Jinshi Technology's revenues were 185 million yuan, 33.91 million yuan, and 376 million yuan, with net losses of 36.59 million yuan, 44.57 million yuan, and 4.40 million yuan, respectively [3]. - In 2024, the energy storage equipment and systems generated revenues of 258 million yuan and 114 million yuan, accounting for 68.7% and 30.24% of total revenue [3]. - Despite the growth in revenue, the company continues to face losses due to high fixed asset depreciation and expenses from its subsidiaries [3].