Core Viewpoint - The announcement from Haojiang Intelligent (301320.SZ) addresses concerns raised by the China Securities Investor Service Center regarding the necessity of capital increase for the loss-making Qingdao Fifth Element Technology Co., Ltd., the reasonableness of the valuation, and the rationale for providing interest-free financial assistance [1] Group 1: Company Response to Investor Concerns - The company attributes the recent losses of Fifth Element to intensified market competition, product price reductions for inventory clearance, tariffs causing order delays, and ongoing R&D investments in medical electronics that have yet to generate revenue [1] - The company emphasizes its possession of core technologies such as UVC deep ultraviolet, 28 patents, and a mature customer base, asserting that integration with Haojiang will create synergies in R&D and sales, thereby expanding into the mid-to-high-end health product market and fostering new profit growth points [1] Group 2: Valuation and Financial Assistance - The valuation of Fifth Element was assessed using the asset-based approach, with a net asset valuation of 5.3141 million yuan, representing a 161.49% increase over the book value, primarily due to off-balance-sheet assets such as patents, trademarks, software copyrights, and production molds not reflected in the original financial statements [1] - Regarding the interest-free loan of 4.005 million yuan provided to the original controlling shareholder, Ma Anxiang, the company states that this amount is small and manageable in terms of risk, with Ma Anxiang having a good credit status and a commitment to prioritize repayment through future dividends [1]