Investment Overview - The company is establishing a new subsidiary, Hunan Xiangdian Strong Magnetic Technology Co., Ltd., with a registered capital of RMB 100 million [2][24] - The investment structure includes a cash contribution of RMB 60 million from the company's wholly-owned subsidiary, Changsha Xiangdian Electric Technology Co., Ltd., and a 40% contribution from Huazhong University of Science and Technology through intellectual property [2][4] Investment Details - Changsha Xiangdian Electric Technology Co., Ltd. will hold a 60% stake, while Huazhong University of Science and Technology will hold 40%, with 70% of the university's contribution awarded to the technical team as personal shares [2][4] - The first phase of cash contribution from Changsha Xiangdian is RMB 30.795 million, with the second phase to follow [4] Strategic Importance - The focus of the new company is on the development of magnetic levitation bearing high-speed motors, which are identified as a strategic product direction for the company [3][56] - The collaboration with Huazhong University aims to leverage their technological advantages in magnetic levitation bearing control technology to accelerate the development of the high-speed motor industry [3][56] Financial Projections - The new company is projected to achieve a net present value of investment returns of RMB 108.32 million by the seventh year of operation, indicating a positive outlook for investment recovery [20] Governance Structure - The new company will have a governance structure consisting of a shareholders' meeting, a board of directors with five members, and a management team [17][35] - The board will include three members nominated by Changsha Xiangdian, one by Huazhong University, and one by Lu Yang, who represents the technical team [17][35] Risk Management - The company acknowledges potential risks related to product development, market demand, and the exit strategy for the university's investment, with measures in place to mitigate these risks [22][56]