Core Points - The company, Jilin Liyuan Precision Co., Ltd., held its 12th meeting of the 6th Board of Directors on August 22, 2025, where it approved a financial assistance agreement with its indirect controlling shareholder, Jiangsu Bubugao Real Estate Co., Ltd. [1][2][5] Group 1: Financial Assistance Agreement - Jiangsu Bubugao will provide a loan of 20 million yuan (approximately 2 million) to the company, which is interest-free and has a term of 12 months [6][10] - The loan does not require any collateral from the company [10] - The transaction is classified as a related party transaction due to Jiangsu Bubugao's indirect ownership of 22.54% of the company's shares [6][8] Group 2: Board Approval Process - The proposal for the financial assistance was unanimously approved by the board with 5 votes in favor, 0 against, and 4 abstentions due to conflicts of interest [2][7] - The independent directors also reviewed and approved the proposal, confirming its alignment with legal and regulatory requirements [14] Group 3: Impact and Purpose of the Loan - The loan is intended to support the company's liquidity and stability, reflecting the indirect controlling shareholder's commitment to the company's development [12] - The company asserts that this transaction will not adversely affect its financial condition or independence [12][14]

Core Viewpoint - The announcement details the progress of a lawsuit involving Kairde Holdings Co., Ltd. and its implications for the company's financial situation, particularly regarding a case filed by Shenzhen Yonghuiyuan Supply Chain Co., Ltd. [2][19] Group 1: Lawsuit Details - Kairde has received a notice from the Guangdong High Court regarding a case where Shenzhen Yonghuiyuan Supply Chain Co., Ltd. is seeking execution supervision against a prior ruling by the Shenzhen Intermediate People's Court [2] - The case involves Kairde's objections to execution orders related to its debt obligations, which have been previously disclosed in multiple announcements [2][19] - The Guangdong High Court has officially accepted the case for review, indicating ongoing legal proceedings [17] Group 2: Financial Implications - The previous ruling by the Shenzhen Intermediate People's Court is expected to have no impact on Kairde's profits for the year 2024, as the company has already accounted for the related liabilities during its bankruptcy restructuring [19] - However, the ongoing execution supervision process introduces uncertainty regarding potential future impacts on the company's profits [19] Group 3: Regulatory Investigation - Kairde is currently under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, with the investigation still ongoing [23][24] - The company has reported that it has filed criminal complaints against former controlling shareholders for actions that led to historical debt issues, which were resolved through bankruptcy restructuring in 2021 [24] - Kairde is committed to cooperating with the CSRC and will provide monthly updates on the investigation's progress [24]