Core Viewpoint - Jiangsu Southern Precision Engineering Co., Ltd. plans to increase capital in its subsidiary Jiangsu Southern Changsheng New Energy Technology Co., Ltd. by 50 million yuan, raising its stake to 91.43% after the capital increase [5][15][19]. Group 1: Board Meeting Details - The board meeting was held on September 23, 2025, with all 9 directors present [2][3]. - The meeting was chaired by Chairman Shi Jianwei, and the procedures complied with relevant laws and regulations [4]. - The board approved the capital increase proposal with 6 votes in favor, 0 against, and 3 abstentions [5]. Group 2: Capital Increase Proposal - The capital increase will raise Jiangsu Southern Changsheng's registered capital from 20 million yuan to 70 million yuan [5][15]. - Other shareholders of Jiangsu Southern Changsheng waived their preemptive rights for this capital increase [15]. - The independent directors unanimously approved the related party transaction before it was submitted to the board [5][19]. Group 3: Supervisory Board Meeting Details - The supervisory board meeting was also held on September 23, 2025, with all 3 supervisors present [8][9]. - The meeting was chaired by Chairman Xu Peng, and the procedures complied with relevant laws and regulations [9]. - The supervisory board approved the capital increase proposal with 3 votes in favor, 0 against, and 0 abstentions [10][11]. Group 4: Related Party Transaction - The capital increase constitutes a related party transaction as it involves a company controlled by one of the actual controllers of Jiangsu Southern Precision Engineering [18][19]. - The pricing for the capital increase was set at 1 yuan per registered capital, determined through fair negotiation [23]. - The transaction is not classified as a major asset restructuring and does not require approval from relevant authorities [19][25]. Group 5: Impact and Purpose of the Capital Increase - The capital increase aims to support the normal operational turnover of Jiangsu Southern Changsheng and promote its long-term development [25]. - The decision-making process followed relevant laws and regulations, ensuring no harm to the interests of the company or its shareholders [25][26]. - The company expects that the capital increase will enhance Jiangsu Southern Changsheng's operational capabilities and create more returns for shareholders [25].