Core Viewpoint - Shanghai Laimu Electronic Co., Ltd. plans to jointly invest with related parties to establish Hunan Sakaban Technology Co., Ltd., with the investment involving intellectual property and cash contributions [1][2]. Summary by Sections Overview of Related Transactions - Hunan Laimu Technology Co., Ltd. intends to invest in Hunan Sakaban Technology Co., Ltd. by contributing the application rights of a patent related to a robot operating environment valued at RMB 2.5 million, holding 3.9683% of the joint venture [1][2]. - Zhu Xin'ai, the chairman and general manager of the company, will contribute RMB 5 million in cash for a 7.9365% stake in the joint venture [1][3]. Related Parties - Hunan Laimu Technology Co., Ltd. was established on November 1, 2023, with a registered capital of RMB 50 million, and is wholly owned by Laimu Co. [3]. - Zhu Xin'ai serves as the chairman and general manager of Shanghai Laimu Electronic Co., Ltd. [3]. Investment Details - The joint venture, Hunan Sakaban Technology Co., Ltd., will focus on developing and selling a general-purpose high-security autonomous driving operating system, with a registered capital of RMB 10 million [4]. - The investment agreement has not yet been formally signed, and the joint venture is pending regulatory approval [2][4]. Valuation and Pricing - The valuation of the intellectual property contributed by Hunan Laimu Technology Co. is based on an assessment report indicating a market value of RMB 2.5 million as of May 31, 2025 [8]. - The pricing of the related transaction is deemed fair, with each investor receiving proportional equity based on their contributions [8]. Necessity of the Transaction - The collaboration with Professor Chang Wanli and Hunan University is expected to leverage their technical expertise in the advanced driver assistance systems sector, which has significant technological advantages [10]. - The investment aims to accelerate the commercialization of TSN technology in the high-level driving assistance field, enhancing the company's competitive edge and market presence [10][11]. Impact on the Company - The investment is anticipated to integrate various resources, facilitating the industrialization of advanced driving systems and reducing future capital expenditure pressures [11][12]. - The use of intellectual property as a contribution is designed to preserve cash for core business development, ensuring that the investment does not adversely affect the company's main operations [10][11].

Core Viewpoint - The company is establishing a joint venture, Hunan Sakaban Technology Co., Ltd., to enhance its capabilities in the high-level assisted driving sector through collaboration with academic and industry experts [1][2]. Group 1: Investment Details - Hunan Laimu Technology Co., Ltd. will contribute an intangible asset valued at RMB 2.5 million, representing a 3.9683% stake in the joint venture [1]. - Ms. Zhu Xin'ai will invest RMB 5 million in cash, acquiring a 7.9365% stake in the joint venture [1]. Group 2: Strategic Collaboration - The main collaborator, Professor Chang Wanli, has extensive research experience and has achieved significant technological advancements in the high-level assisted driving field [2]. - The joint investment is based on a research project involving Time-Sensitive Networking (TSN), aimed at applying this technology in smart vehicles and robotics [2]. Group 3: Expected Outcomes - The investment is expected to accelerate the commercialization of TSN technology in high-level assisted driving, enhancing the company's market competitiveness and economic benefits [2]. - The collaboration aims to integrate resources such as funding, technology, and market channels to promote the industrialization of high-level assisted driving systems [2].

Group 1: Investor Relations Activities - The company held an annual performance briefing on May 15, 2025, via an online platform [4] - Key attendees included the Chairman, General Manager, and various department heads [4] Group 2: Client Base and Market Position - Major clients include large state-owned enterprises such as AVIC, CSSC, and CETC [5] - The company has established stable and sustainable partnerships with these clients, covering major domestic research institutes [5] Group 3: Development Opportunities - China's defense budget is projected to grow by 7.2% in 2025, providing stable growth for the military electronics sector [6] - The company is positioned in a growing market for network buses and special display technologies, with increasing demand [6] Group 4: Financial Performance - The company reported a 29.07% increase in total revenue for 2024, driven by strategic focus and product innovation [15] - R&D expenses for 2024 amounted to 16.38 million CNY, representing 5.87% of total revenue [21] Group 5: Product Applications and Innovations - Main products are used in military applications, particularly in avionics systems, with a significant portion of revenue derived from these areas [9] - The company has developed a unique LED dome display system for military simulation training, filling a gap in domestic technology [24] Group 6: Competitive Strategy - The company emphasizes continuous R&D investment to maintain technological leadership and product innovation [12] - It has established relationships with over 100 new clients in 2024, expanding its market reach [12] Group 7: Challenges and Future Outlook - The company faces challenges due to the uneven distribution of orders in the military procurement sector, leading to a loss in Q1 2025 [25] - Future strategies include enhancing product quality and exploring AI applications in military information systems [10]