Core Viewpoint - Hefei Urban Construction Development Co., Ltd. has approved a capital increase and share expansion for its wholly-owned subsidiary, Hefei Xinpo Real Estate Co., Ltd., to introduce Hefei High-tech Holding Group Co., Ltd. as an investor for the development of a specific land parcel in Hefei High-tech Zone [1][2]. Group 1: Capital Increase and Share Structure - The registered capital of Xinpo Real Estate will increase by RMB 42.857143 million, with Hefei High-tech Holding contributing the same amount, resulting in a new registered capital of RMB 142.857143 million [1]. - Before the capital increase, the shareholding structure was entirely held by Hefei Urban Construction, with a 100% stake [1]. - After the capital increase, Hefei Urban Construction will hold 70% of the shares, while Hefei High-tech Holding will hold 30% [1]. Group 2: Governance Structure - Xinpo Real Estate will have a board of directors consisting of three members, with two nominated by Hefei Urban Construction and one by Hefei High-tech Holding [2]. - The chairman of the board will be a director nominated by Hefei Urban Construction, who will also serve as the legal representative of the project company [2]. - The company will not have a supervisory board but will appoint one supervisor nominated by Hefei Urban Construction [2]. Group 3: Purpose and Impact of the Transaction - The capital increase aims to facilitate the development and inventory clearance of the GX202403 land parcel project in Hefei High-tech Zone, enhancing the project's competitiveness [2]. - This cooperation is not expected to have a significant impact on the company's daily operations or main business [2].