Core Viewpoint - The company plans to establish a wholly-owned subsidiary in Hong Kong and subsequently another in Australia to expand its overseas business, particularly in industrial machinery and after-market services for coal and engineering machinery [20][24]. Company Overview - The company is named Zhengzhou Suda Industrial Machinery Service Co., Ltd. and is focused on industrial machinery services [20]. Board Meeting and Resolutions - The board of directors held a meeting on August 28, 2025, where all members were present, and several key resolutions were passed, including the approval of the 2025 semi-annual report and the establishment of overseas subsidiaries [10][11][15]. Financial Data and Investment Plans - The total investment for the overseas subsidiaries is capped at RMB 160 million, which represents 10.43% of the company's audited net assets for 2024 [20][24]. - The investment will be funded by the company's own resources and is not expected to adversely affect its main business or financial health [28]. Purpose and Impact of Investment - The investment aims to enhance the company's international market presence, improve service efficiency, and leverage local market advantages in Australia, which is a significant player in the coal industry [25][26][27]. - Establishing a presence in Australia is expected to reduce delivery times for parts and services, thereby increasing customer satisfaction and loyalty [25]. Regulatory Compliance - The investment does not constitute a related party transaction or a major asset restructuring as defined by relevant regulations [21]. - The company will adhere to all necessary local and international regulatory requirements for establishing the subsidiaries [21][29]. Fund Management and Usage - The company has established a management system for the raised funds, ensuring they are stored in dedicated accounts and used in compliance with regulatory standards [34][35]. - As of June 30, 2025, the company had four dedicated accounts for managing the raised funds [35]. Summary of Financial Activities - The company raised RMB 608 million through a public offering, with a net amount of RMB 525.71 million after deducting related costs [34]. - The company has also engaged in cash management with idle funds, generating investment returns [37]. Conclusion - The company's strategic move to establish subsidiaries abroad aligns with its long-term growth objectives and is expected to enhance its competitive edge in the global market [24][28].