Investment Overview - The company plans to invest 60 million RMB to establish a wholly-owned subsidiary named Xiamen Xatong Recycling Technology Co., Ltd. (tentative name) to enhance its secondary resource recovery capabilities and expand its recycling business [1][2] - The investment does not constitute a related party transaction or a major asset restructuring as defined by relevant regulations [1][2] Subsidiary Details - The registered capital of the new subsidiary will be 60 million RMB, funded entirely through cash [2][3] - The subsidiary will focus on the recycling, disposal, and regeneration of used batteries, particularly in the electric vehicle sector, and will also engage in the research and production of nickel sulfate, cobalt sulfate, and lithium carbonate [2][3] Strategic Rationale - The establishment of the subsidiary aligns with national policies encouraging the comprehensive recycling of resources, particularly as the demand for cobalt, nickel, and lithium rises [3][4] - The market for used lithium-ion battery recycling in China is expected to grow significantly, with projections indicating a recovery volume of 4.246 million tons by 2030 [3][4] Impact on the Company - The new subsidiary is expected to strengthen the company's supply chain and enhance its competitive position in the recycling industry [4] - The establishment will not adversely affect the company's financial status or operational results, and it will be included in the company's consolidated financial statements [4]