Core Insights - Liu'an is leveraging its geographical advantages and rich resources to attract investment and develop its industrial base, particularly in the context of national development strategies [23][24][25] Industry Development - Liu'an has established six leading industries: information technology, food health, building materials and home furnishings, new energy, mining metallurgy, and new materials, while also planning for future industries such as low-altitude economy, hydrogen energy, and third-generation semiconductors, forming a "6+3" industrial system [11][32] - The new energy vehicle (NEV) industry is rapidly developing, with 304 related enterprises, including 205 component manufacturers and 99 aftermarket companies. In 2024, Liu'an aims to attract 81 NEV-related projects with a total investment of 239 billion [12][31] - The hydrogen energy sector is highlighted, with Liu'an being one of the first national hydrogen energy demonstration cities, featuring leading companies like Tomorrow Hydrogen, which has developed core technologies and established a large-scale industrialization facility [21][24] Investment and Economic Growth - Liu'an's industrial investment is projected to grow by 33% in the first half of 2025, outpacing the provincial average, with manufacturing investment increasing by 9.9% [32] - The Liu'an Economic and Technological Development Zone is home to advanced manufacturing facilities, such as the introduction of a 9,800-ton die-casting machine, which is expected to generate annual sales of no less than 1 billion [29][30] Strategic Collaborations - Liu'an is benefiting from strategic partnerships, particularly with Shanghai, which has led to the establishment of the Liu'an Modern Industrial Park, designed to attract investment and facilitate industrial cooperation [33][34] - The park operates under a market-oriented model, promoting collaboration between Shanghai and Liu'an in sectors like integrated circuits, high-end equipment, and new energy vehicles [34][35]

Core Viewpoint - The company plans to deregister its subsidiary Jiangsu Kehua Power Technology Co., Ltd. to optimize resource allocation, reduce management costs, and improve operational efficiency [1][2][6]. Summary by Sections 1. Overview of the Transaction - The deregistration of Kehua Power constitutes a related party transaction but does not qualify as a major asset restructuring under relevant regulations [3]. - The transaction amount does not exceed 5% of the company's latest audited net assets, thus not requiring shareholder approval [2][3]. 2. Related Party Information - Chen Hongmin is the controlling shareholder and actual controller of the company, holding 100% of Jiangsu Kehua Investment Management Co., Ltd., which in turn holds a 10% stake in Kehua Power [1][3][4]. - The company has not engaged in significant related party transactions with Chen Hongmin or his controlled company in the past 12 months, aside from guarantees provided [2][3]. 3. Details of the Subsidiary - Kehua Power was established on October 29, 2019, with a registered capital of 25 million RMB [5]. - The company’s financials as of March 31, 2025, show total assets of 720.20 million RMB and a net profit of 1.61 million RMB for the first quarter of 2025, compared to a loss of 48.35 million RMB for the entire year of 2024 [5]. 4. Impact of the Transaction - The deregistration is expected to enhance resource allocation and operational efficiency without adversely affecting the company's normal operations or shareholder interests [6]. 5. Approval Process - The independent directors unanimously approved the deregistration proposal in a special meeting, affirming that it adheres to principles of fairness and does not harm the interests of shareholders [6][7].