Core Viewpoint - Zhejiang Rongtai Electric Equipment Co., Ltd. has signed a non-binding intention agreement to acquire a stake in Guangdong Jinli Intelligent Transmission Technology Co., Ltd., aiming to hold at least 15% of the target company's shares, which will become an associate subsidiary of Zhejiang Rongtai [1][2][5]. Summary by Sections Agreement Overview - The intention agreement is aimed at extending the industrial chain and enhancing competitive strength, with the transaction involving the acquisition of shares from Jinli Transmission's shareholders and a capital increase [2][3]. - The agreement does not constitute a related party transaction or a major asset restructuring as defined by regulations, and it does not require board or shareholder approval at this stage [2][3]. Target Company Information - Jinli Transmission is a non-listed joint-stock company established on July 25, 2011, with a registered capital of 70.256 million yuan, focusing on the research, production, and sales of micro intelligent transmission modules and related components [3][4]. - The company has a strong reputation and capabilities in the micro intelligent transmission field, providing integrated solutions for motion drive and control [4]. Financial Data - As of December 31, 2024, Jinli Transmission reported total assets of 718.83 million yuan, total liabilities of 327.80 million yuan, net assets of 391.03 million yuan, operating income of 598.19 million yuan, operating costs of 456.36 million yuan, and a net profit of 65.49 million yuan [5]. Transaction Details - The transaction is contingent upon the completion of internal approvals, signing of final agreements, and no significant adverse changes in the target company's financial or operational conditions [6][7]. - The agreement includes special provisions regarding share transfers and rights in the event of an IPO, ensuring that Zhejiang Rongtai maintains a level of control over Jinli Transmission [7][8]. Impact on Company - The agreement lays a solid foundation for future cooperation and is expected to enhance Zhejiang Rongtai's profitability, risk resistance, and sustainable development capabilities by entering emerging fields such as intelligent transmission and humanoid robotics [8].