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].