Group 1 - The company plans to acquire 40% equity of Changchun Fu'ao Wan'an Brake Control System Co., Ltd. from Fu'ao Automotive Parts Co., Ltd. through a public bidding process, which will result in the company holding 100% equity of Fu'ao Wan'an after the transaction [2] - The transaction price for the 40% equity transfer is set at RMB 26.22 million [2] - The equity transfer registration has been completed, and the company has renamed Changchun Fu'ao Wan'an Brake Control System Co., Ltd. to Jilin Wan'an Automotive Control System Co., Ltd. [2] Group 2 - The new company, Jilin Wan'an Automotive Control System Co., Ltd., has a registered capital of RMB 50 million and was established on November 12, 2015 [2] - The business scope includes research, design, manufacturing, sales, and service of automotive brake systems and related components, as well as import and export activities [2]

Core Viewpoint - Wan'an Technology plans to acquire a 40% stake in Changchun Fu'ao Wan'an Brake Control System Co., Ltd. from Fu'ao Automotive Parts Co., Ltd. through a public bidding process, aiming for full ownership of Fu'ao Wan'an [2] Group 1: Company Overview - Fu'ao Automotive Parts Co., Ltd. was established in 1988 and is located in Changchun Economic and Technological Development Zone, primarily engaged in the R&D, design, manufacturing, sales, and after-sales service of automotive parts and related products [2] - Fu'ao Wan'an was founded in 2015 with a registered capital of 50 million yuan, focusing on the R&D, design, manufacturing, and sales of automotive (motorcycle) brake systems and clutch control system components [2] Group 2: Financial Performance - In 2024, Fu'ao Wan'an reported an operating income of 60,577,652.06 yuan and a net loss of 21,993,127.81 yuan [2] - For the first half of 2025, Fu'ao Wan'an's operating income was 40,395,978.13 yuan, with a net loss of 9,209,375.86 yuan [2] Group 3: Ownership Structure - After the transaction, Wan'an Technology will hold 100% of Fu'ao Wan'an's shares, while the consolidated financial statement scope will remain unchanged [2] - Currently, Wan'an Technology holds a 60% stake in Fu'ao Wan'an, while Fu'ao Automotive Parts holds the remaining 40% [2]