Core Viewpoint - The company announced the sale of its wholly-owned subsidiary, Zhejiang Bofei New Energy Technology Co., Ltd., to Haining Economic Development Zone Construction Co., Ltd. for approximately RMB 38.52 million, indicating a strategic move for business continuity and optimization [2] Group 1: Transaction Purpose and Structure - The transfer is not merely an asset sale but a strategic layout that ensures business continuity and optimization [2] - Following the transaction, the company's subsidiary, Bofei Green Energy, will lease the operational site from Bofei New Energy, ensuring seamless operation of the photovoltaic composite material project [3] - This arrangement maintains stability in core operational elements, avoiding risks associated with project relocation or restart, which is crucial for businesses requiring stable production processes [3] Group 2: Financial Implications - The shift to a leasing model enhances operational efficiency and flexibility, allowing the company to focus more on R&D, capacity expansion, and market development [4] - The transaction is expected to positively impact the company's net profit for 2025, with the sale price significantly exceeding the book value of the subsidiary [6] - The estimated increase in the value of the subsidiary's equity will translate into investment income, alleviating previous profit volatility and enhancing shareholder returns [6] Group 3: Debt and Cash Flow Improvement - The transaction will lead to a reduction in the company's overall debt ratio, as the high liabilities of Bofei New Energy will be removed from the consolidated financial statements [7] - The company will benefit from a dual financial improvement of reduced liabilities and increased cash flow from the equity transfer [8] - Overall, the transaction supports both short-term profit improvement and long-term financial health, providing a solid foundation for resource integration and market expansion in the new energy sector [8]

Core Viewpoint - The announcement of the sale of 100% equity in Zhejiang Bofei New Energy Technology Co., Ltd. by Bofei Electric is a strategic move aimed at optimizing business operations and ensuring continuity in its photovoltaic composite materials project [2][4]. Group 1: Transaction Details - Bofei Electric sold its wholly-owned subsidiary for a transaction price of RMB 38,522,517.26 [2]. - The sale is not merely an asset disposal but a strategic layout for business continuity and optimization [2]. Group 2: Operational Continuity - After the transaction, Bofei Green Energy, a subsidiary, will lease the facilities from Bofei New Energy to continue operating the photovoltaic composite materials project, ensuring seamless production and stability [3]. - This arrangement helps avoid risks associated with project relocation or restart, maintaining production quality and operational continuity [3]. Group 3: Financial Impact - The transaction is expected to positively impact Bofei Electric's net profit for 2025, with the sale price significantly exceeding the audited equity of Bofei New Energy [5]. - The assessed value of the subsidiary's equity shows a substantial increase, with a growth rate of 103.32%, which will contribute to the company's investment income and enhance annual net profit [5][6]. Group 4: Financial Structure Improvement - Post-transaction, the overall asset-liability ratio of Bofei Electric is expected to decrease, alleviating financial leverage pressure [7]. - The high liabilities of Bofei New Energy will be removed from the consolidated financial statements, leading to a dual financial improvement of reduced liabilities and increased cash flow [7].