Group 1 - The company, Shandong Xinhua Medical Instrument Co., Ltd., plans to sell up to 5% of its stake in its subsidiary, Huajian Medical Holdings Limited, to focus on its core business and improve asset operation efficiency [3][10] - The sale will be conducted through public market transactions within 12 months from the board resolution date, with the specific transaction price yet to be determined [3][10] - The board meeting held on November 28, 2025, approved the sale with unanimous support from all 11 attending directors [5][10] Group 2 - The sale does not constitute a related party transaction or a major asset restructuring as defined by relevant regulations, and it falls within the board's decision-making authority without requiring shareholder approval [4][10] - The net profit from this sale is expected to not exceed 50% of the company's audited net profit attributable to the parent company for the most recent fiscal year [4][10] - The company will maintain over 5% ownership in Huajian Medical after the sale, allowing it to continue enjoying shareholder rights and accounting for the investment using the equity method [15][10] Group 3 - The company also approved a proposal to repurchase equity from employees who no longer meet the conditions of the stock incentive plan due to retirement or resignation, which will not affect the consolidated financial statements [6][23] - The restructuring of the equity structure for the high-end precision minimally invasive surgical instrument production expansion project will not adversely impact the company's operations or the use of raised funds [24][25] - The company has complied with all necessary regulatory requirements regarding the management and use of raised funds, ensuring transparency and adherence to legal standards [21][24]

Core Viewpoint - The company announced a board meeting on November 28, 2025, to approve changes in the equity structure of the implementation entity for a high-end precision minimally invasive surgical instrument production expansion project [1] Group 1: Project Details - The project originally planned to cover an area of approximately 47,935 square meters, with a total construction area of 32,880 square meters [1] - The project includes the acquisition of 73 sets of new production equipment and the relocation of 372 sets of existing production equipment [1] - The planned annual production capacity is 4.7255 million open surgical instruments and 19,700 minimally invasive endoscopic surgical instruments [1] Group 2: Equity Structure Changes - The equity structure change is due to the departure of two incentive targets and the retirement of one incentive target from the company's equity incentive plan [1] - The company will acquire the subscribed capital contribution rights and equity from these departing individuals [1] - This change will not affect the company's consolidated financial statements and will not have a substantial impact on the implementation of the fundraising project, aligning with the company's long-term development plan [1]