Investment Overview - The company plans to establish two wholly-owned subsidiaries in Hong Kong: Xunchi Hong Kong Limited with a registered capital of HKD 50 million and Xunchi Hong Kong Oriental Limited with a registered capital of HKD 10 million [1][2] - The investment aims to leverage Hong Kong's financial ecosystem to enhance cross-border financial services for small and micro enterprises, thereby improving the competitiveness of the company's payment services [1][2] Approval and Compliance - The investment does not require approval from the board of directors or shareholders as per relevant regulations [2] - The establishment of the subsidiaries does not constitute a related party transaction or a major asset restructuring as defined by the Shanghai Stock Exchange [2] Impact on the Company - This investment is a significant step in the company's strategy to deepen digital trade reform and build a global trade comprehensive service provider [3] - The Yiwu Pay platform will enhance its cross-border financial service capabilities, providing compliant fund custody and guarantee payment services, addressing trust issues in transactions [3] - The investment aligns with the company's global development strategy, aiming to provide integrated financial solutions for small and micro enterprises globally, thus creating greater value for clients and driving company growth [3] Risk Considerations - The establishment of the subsidiaries and the application for the TCSP license are subject to government approval, which carries uncertainty [4] - The future operations may face uncertainties due to macroeconomic changes, industry policy shifts, market demand fluctuations, and intensified competition [4]

Group 1: Shareholding Increase Plan - The controlling shareholder, Yiwu China Commodity City Holdings Co., Ltd., plans to increase its stake in Zhejiang China Commodity City Group Co., Ltd. with a total investment of no less than RMB 5 billion and no more than RMB 10 billion within 12 months starting from April 9, 2025 [1][2] - As of April 11, 2025, the controlling shareholder has already acquired 6.9 million A-shares, representing a 0.13% increase, with a transaction amount of RMB 98.69 million [2] - On June 18, 2025, an additional 10.23 million A-shares were purchased, representing a 0.19% increase, with a transaction amount of RMB 199.84 million [2] Group 2: Investment in Hong Kong Subsidiary - The company plans to establish a wholly-owned subsidiary in Hong Kong, named Xunchi Hong Kong Limited, to enhance its cross-border financial service capabilities [7][8] - The registered capital for Xunchi Hong Kong Limited is set at HKD 50 million, while its subsidiary, Xunchi Hong Kong Oriental Limited, will have a registered capital of HKD 10 million [9][13] - This investment aligns with the company's strategy to deepen digital trade reform and enhance the competitiveness of its payment platform, Yiwu Pay, by providing comprehensive financial services [10][11]