Core Viewpoint - The announcement highlights the fair value changes of trading financial assets for Fangda Special Steel Technology Co., Ltd. in the third quarter of 2025, primarily driven by the performance of Sunshine Insurance's H-shares, which significantly impacted the company's net profit [4][5]. Group 1: Overview of Trading Financial Assets - Fangda Special Steel decided to use up to 430 million RMB of idle funds for entrusted wealth management with CITIC Trust, focusing on investing in Sunshine Insurance's H-shares [2][3]. - The trust project, established under the contract signed with CITIC Trust, allocated 4.3 billion RMB, with 1% reserved for trust operation funds, while the remaining funds were used to purchase 78.72 million shares of Sunshine Insurance at a price of 5.83 HKD per share [3]. Group 2: Fair Value Changes in Q3 2025 - In Q3 2025, the price of Sunshine Insurance's H-shares increased from 3.25 HKD per share on June 30, 2025, to 3.84 HKD per share on September 30, 2025, leading to a net value change of the trust product [4]. - The estimated fair value change loss for trading financial assets in Q3 2025 was approximately 64.19 million RMB, accounting for 25.90% of the net profit attributable to shareholders for 2024, indicating a significant impact on the company's financial performance [4]. Group 3: Additional Notes - The company acknowledges the uncertainty of future returns from securities investments and entrusted wealth management products due to market volatility, and will reassess the fair value periodically [5]. - The fair value changes will be recorded as non-recurring gains and losses, not affecting the net profit attributable to shareholders after excluding non-recurring items [5].

Core Viewpoint - The controlling shareholder of Fangda Special Steel, Jiangxi Fangda Iron and Steel Group, has increased its stake in the company, demonstrating confidence in its future development and value recognition [2][8]. Summary by Sections Shareholder Increase Plan Progress - From March 20, 2025, to April 9, 2025, Jiangxi Fangda Iron and Steel Group acquired a total of 17,984,747 shares, representing 0.78% of the company's total equity, with an investment amount of 74,936,654.82 yuan [2][4]. - The total shares held by Jiangxi Fangda Iron and Steel Group before the increase were 726,853,252, accounting for 31.42% of the total equity, which increased to 744,837,999 shares, or 32.20%, after the purchase [3][5]. Details of the Increase Plan - The increase plan commenced on February 26, 2025, with a target investment range of 55 million to 110 million yuan, and a maximum shareholding increase of 2% of the total equity [8]. - The plan does not set a price range, allowing the controlling shareholder to make purchases based on market conditions [8]. Financial Management and Investment - Fangda Special Steel has engaged in a trust investment project using idle funds, with a total of 430 million yuan allocated to invest in Sunshine Insurance Group's H-shares [13][14]. - The net asset value of the trust increased from 203,402,387.29 yuan at the end of 2024 to 249,375,261.52 yuan by the end of Q1 2025, reflecting a significant increase due to the rise in Sunshine Insurance's stock price [14][15].