Core Viewpoint - The company, Jiewa Microelectronics Co., Ltd., is engaging in a related party transaction through its participation in the Xiamen Huijie Private Equity Investment Fund, which plans to invest in its subsidiary, Wuxi Yixin Technology Co., Ltd. This investment is aimed at enhancing the subsidiary's growth and achieving favorable returns [1][2]. Group 1: Overview of Related Party Transactions - The company has committed to invest RMB 125 million in the Huijie Private Equity Fund, holding a 50% stake in the fund [1]. - The Huijie Fund intends to inject RMB 50 million into Wuxi Yixin, acquiring a 12.82% equity stake, which will result in the company holding 46.15% of Wuxi Yixin post-investment [2][3]. - The investment decision was approved by the company's board and supervisory committee, and it does not constitute a major asset restructuring [2][3]. Group 2: Financial and Operational Details of the Target Company - Wuxi Yixin focuses on advanced packaging and testing technology for automotive electronics, with its services applicable in various high-reliability scenarios [4][5]. - As of March 31, 2025, Wuxi Yixin reported total assets of approximately RMB 211.78 million and a net loss of about RMB 4.50 million for the first quarter of 2025 [5][6]. - The company has a registered capital of RMB 170 million and was established on May 17, 2022 [4]. Group 3: Investment Rationale and Impact - The investment is expected to support Wuxi Yixin's capacity expansion and business planning, contributing to rapid performance growth and strategic synergy [18]. - The transaction is structured to ensure that it does not adversely affect the company's financial status or shareholder interests [18][20]. - The investment aligns with the company's long-term value creation strategy and is deemed fair and reasonable by the involved parties [9][20].