Core Viewpoint - The company is facing significant pressure in its valve export business due to the complex and changing international economic environment, prompting a strategic decision to divest from its gold mining operations to focus on its core business [1] Group 1: Business Strategy - The company plans to transfer 75% of its stake in Beijing Huanglong Jintai Mining Co., Ltd. to its affiliate Yike Zhengrun Investment Group Co., Ltd. for a consideration of 137 million yuan [1] - After the transaction, the company will retain a 25% stake in Beijing Huanglong, but it will no longer be included in the company's consolidated financial statements [1] Group 2: Financial Implications - The divestment is aimed at ensuring the healthy and sustainable development of the company by enhancing the competitiveness of its core business [1] - The company anticipates challenges in managing both the valve business and the gold mining operations simultaneously, given the current international situation and its asset status [1]

Group 1: Company Development Plans - The company aims to strengthen its valve business and expand the reserves and production scale of its gold mining operations to enhance profitability [1][2][3] - The establishment of a production base in Thailand is currently progressing steadily [2][3] Group 2: Financial Performance and Projections - The company reported a significant increase in sales revenue for its electromagnetic valve products, with a growth of 920.56% in 2024 compared to 2023 [3] - The first quarter of 2025 showed a decline in overall net profit due to increased management and R&D expenses, despite effective cost control in raw materials [3][4] Group 3: Investor Relations and Transparency - The company will fulfill its information disclosure obligations regarding any potential restructuring or asset injection plans [1][4] - The company has clarified that the 300 million yuan loan taken at the beginning of the year will be drawn in phases based on actual funding needs [2][4] Group 4: Industry Context and Market Trends - The automotive industry, particularly the commercial vehicle sector, is experiencing growth, with production and sales increasing by 14.5% and 11.2% respectively in the first quarter of 2025 [3] - The company’s automotive parts business saw a year-on-year growth of 5.07%, aligning with industry trends [3]