Group 1 - The company has approved the establishment of a joint venture in Bulgaria to enhance its overseas business expansion and mitigate trade policy risks [2][4] - The joint venture, named Phoenix Bicycle Europe AD, has a registered capital of approximately 10 million euros and will focus on the research, assembly, and sales of mid-to-high-end electric bicycles [2][4] - The establishment of the joint venture has received necessary approvals from relevant domestic authorities, including the Shanghai Municipal Development and Reform Commission [3] Group 2 - The joint venture aims to leverage the company's technological, brand, and channel advantages to penetrate the EU market more effectively and enhance its global market influence [4] - The company anticipates that the joint venture will provide strong support for its future bicycle business development, although it may not have a significant immediate impact on overall performance [4][5]

Core Viewpoint - Shanghai Phoenix has announced the establishment of a holding subsidiary in Bulgaria to enhance its market presence in the EU, focusing on the development, sales, and after-sales service of mid-to-high-end electric bicycles [1] Group 1: Company Actions - The board of directors will review the proposal to set up the subsidiary on April 28, 2025 [1] - The joint venture will be established with PD1 Invest Ltd, with a registered capital of €10 million, where Shanghai Phoenix will contribute €5.5 million for a 55% stake [1] - The registration procedures for the new holding subsidiary, Phoenix Bicycle Europe AD, were completed on August 14, 2025 [1] Group 2: Business Focus - The primary business of the new subsidiary will be the research, sales, and after-sales service of mid-to-high-end electric bicycles [1] - The establishment aims to expand the company's overseas market and enhance its influence in the EU region [1] Group 3: Market Considerations - The company acknowledges potential management and market risks due to complex international political situations and differences in local laws and regulations [1] - It is anticipated that the establishment of the subsidiary will not have a significant impact on the company's operating performance in the short term [1]