Summary of Key Points Core Viewpoint - The announcement details the share reduction plan by the controlling shareholder and actual controller of Tonglian Precision, indicating a planned reduction of up to 3,805,730 shares, which represents a maximum of 2.3750% of the company's total share capital [1][2]. Share Reduction Details - The controlling shareholder, Yang Hu, plans to reduce his holdings by up to 3,805,730 shares, with a breakdown of 3,204,826 shares through block trading (up to 2.0000% of total shares) and 600,904 shares through centralized bidding (up to 0.3750% of total shares) [1][2]. - Shenzhen Panhai Tonglian Technology Enterprise (Limited Partnership) intends to reduce its holdings by up to 1,001,508 shares, accounting for up to 0.6250% of the total share capital [1][2]. Reduction Method and Timeline - The reduction will occur through block trading and centralized bidding over a period of three months starting from 15 trading days after the announcement [2]. - The total number of shares reduced by Yang Hu and Panhai Tonglian combined will not exceed 1.00% of the total share capital in any consecutive 90-day period for centralized bidding and 2.00% for block trading [2]. Current Shareholding Structure - As of the announcement date, Yang Hu holds 34,909,595 shares (21.79% of total shares), while Panhai Tonglian holds 8,557,711 shares (5.34% of total shares) [2][3]. Impact on Company Control - The share reduction will not lead to a change in the controlling shareholder or actual controller and is not expected to significantly impact the company's ongoing operations [4]. Convertible Bond Issuance - Tonglian Precision plans to issue convertible bonds with a total amount not exceeding 595 million yuan, intended for a new smart terminal component manufacturing project, working capital, and bank loan repayment [5][6]. - The convertible bonds will be issued at par value, with a maturity of six years, and the initial conversion price will be based on the average trading price of the company's shares prior to the announcement [4][5]. Fund Allocation - The total investment for the smart terminal component project is approximately 490.83 million yuan, with 465 million yuan allocated from the bond issuance [6]. - The company aims to prioritize existing shareholders for the bond issuance, which will not be secured [5][6]. Historical Context - Tonglian Precision was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on December 27, 2021, raising 855 million yuan, with a public offering price of 42.76 yuan per share [7][8].