Summary of Key Points Core Viewpoint The announcement details a significant equity transfer involving Jiangsu Fumiao Technology Co., Ltd., where a major shareholder, Feixiang Co., is transferring 6,107,600 shares, representing 5% of the company's total equity, to Shanghai Gengrui at a price of 16.38 yuan per share. Additionally, a strategic cooperation agreement has been signed with Xinhu Woolen Textile Co., focusing on wastewater treatment technology in the textile dyeing industry. Group 1: Equity Transfer Details - Feixiang Co. will transfer 6,107,600 unrestricted shares to Shanghai Gengrui at a price of 16.38 yuan per share, which is 80% of the closing price on the trading day before the agreement [1][2][6] - The transfer will not trigger a mandatory tender offer and will not change the controlling shareholder or actual controller of the company [2][3] - After the transfer, Feixiang Co. will hold 16,710,710 shares, representing 13.68% of the total equity [3][11] Group 2: Strategic Cooperation Agreement - A strategic cooperation agreement was signed between Jiangsu Fumiao Technology and Xinhu Woolen Textile Co. to collaborate on wastewater treatment technology in the textile dyeing industry [5][8] - The agreement aims to leverage Fumiao's expertise in industrial water treatment to assist Xinhu in meeting environmental compliance costs [8][12] - The cooperation will focus on developing efficient, low-cost wastewater treatment and resource recovery technologies, including establishing a joint laboratory [9][10] Group 3: Financial and Operational Implications - The total transfer price for the shares is approximately 100 million yuan, with payment structured in two installments [6][7] - The strategic cooperation is expected to enhance Fumiao's market presence and brand influence in the textile industry, although it will not significantly impact the company's 2025 financial performance [12][13] - The agreement does not require board or shareholder approval and is a framework for future collaboration, indicating potential uncertainties in execution [5][12]

Group 1 - Jiangsu Yancheng hosted an investment environment briefing on May 18, attracting over 300 domestic and foreign business representatives to discuss economic development and innovation opportunities [1] - A total of 30 projects were signed on-site, and Yancheng released its first batch of ten scene opportunity demand lists and capability case lists for 2025, signaling a strong commitment to integrating innovation into industry [1] - Yancheng's GDP is projected to reach 777.9 billion yuan in 2024, ranking 39th among major cities in China, with a 6.1% growth in GDP and an 8.2% increase in industrial output value in the first quarter of this year [1] Group 2 - Yancheng is positioned as an important coastal open gateway in Jiangsu, enhancing its international and domestic cooperation, with increasing interest from investors [2] - The city emphasizes its commitment to ecological protection and green development, attracting companies like Boreal Water Technologies, which plans to establish a subsidiary in Yancheng to develop a bio-tower water treatment demonstration project [3] - Yancheng is recognized as a significant production base for petroleum and petrochemical equipment, with many advanced private enterprises in drilling and pipeline equipment, leading to potential collaborations with Hong Kong enterprises in various sectors [3] Group 3 - Since the establishment of the China-Korea Industrial Park in Yancheng in 2015, there has been a growing interest from Korean companies, with ongoing efforts to deepen cooperation and build mutual trust [4] - The Korean Chamber of Commerce is actively organizing delegations to Yancheng for various exchange activities, indicating a strong commitment to fostering bilateral relations [4]