Core Points - The company plans to increase the registered capital of its wholly-owned subsidiary, Yitong International, from 20 million yuan to 50 million yuan to support its operational development [1][2] - The capital increase will be funded by the original shareholders in proportion to their existing shareholdings, with the company’s subsidiary, Zhongyuan Investment, and Ruiyuan Investment each contributing 15 million yuan [1][2] - After the capital increase, the company's ownership stake in Yitong International will remain at 50% [1][2] Related Transactions Overview - The transaction constitutes a related party transaction, although Yitong International is not classified as a related party under the Shanghai Stock Exchange rules due to the involvement of a company executive as a supervisor [2] - The capital increase has been approved by the company's independent directors, audit committee, and board of directors, and does not require shareholder meeting approval [1][2][5] Financial Information of Yitong International - As of December 31, 2024, Yitong International reported total assets of 47.34 million yuan, total liabilities of 19.81 million yuan, and net assets of 27.53 million yuan, with an operating income of 782.34 million yuan and a net profit of 2.77 million yuan for the year [3] - As of March 31, 2025, the company reported total assets of 50.68 million yuan, total liabilities of 20.92 million yuan, and net assets of 29.75 million yuan, with an operating income of 413.44 million yuan and a net profit of 2.22 million yuan for the first quarter [3] Impact on the Company - The capital increase aligns with the company's overall interests and development strategy, and it will not significantly impact the company's financial status, operating results, or ongoing viability [4][5] - The transaction is structured to ensure fairness and does not harm the interests of minority shareholders [4][5]