Core Viewpoint - The company, Liaoning Shenhwa Holdings Co., Ltd., plans to invest 20 million RMB as a limited partner in the establishment of the Shenyang Automotive Industry Investment Fund, representing 2.5% of the total subscribed capital of the fund [1][3]. Group 1: Investment Details - The total subscribed capital of the investment fund is 800 million RMB, with the company contributing 20 million RMB, while other partners like BMW China and Jinbei Automotive will contribute 220 million RMB and 240 million RMB respectively [3][20]. - The fund will focus on investment opportunities in the automotive industry, particularly in areas such as electrification, intelligence, and low carbon development [20][25]. - The fund's duration is set for 7 years, with a 4-year investment period and a 3-year exit period [20]. Group 2: Related Transactions - The investment has been approved by the company's board of directors, with related directors abstaining from the vote, and it does not constitute a major asset restructuring as per regulations [2][4][35]. - The company has not engaged in any related transactions with the same related parties in the past 12 months, ensuring that this investment is a standalone activity [5]. Group 3: Partner Information - The fund's management will be handled by Guangdong Yueke Mother Fund Investment Management Co., Ltd., which is also a partner in the fund [1][12]. - Other partners include Shenqi Xinzhi (Shenyang) Enterprise Management Co., Ltd., Jinbei Automotive Co., Ltd., and Liao Yue Fund, all of which are under the same controlling entity as the company [1][6]. Group 4: Financial Impact and Objectives - The investment aims to leverage market opportunities in the automotive sector's transition towards advanced manufacturing and technology, enhancing the company's strategic positioning [36]. - The funding will be sourced from the company's own capital, with expected contributions of 5 million RMB annually from 2025 to 2028, which will not significantly impact the company's financial performance [36].

Core Viewpoint - Company plans to invest 240 million RMB as a limited partner in the establishment of the Shenyang Automotive Industry Investment Fund, representing 30% of the total subscribed capital of 800 million RMB for the fund [2][5][19] Summary by Sections Investment Fund Overview - The fund will focus on the automotive industry chain, particularly in areas such as electrification, intelligence, and low carbon development [19] - The fund's management will be handled by Guangdong Yueke Mother Fund Investment Management Co., Ltd. [2][19] - The fund's total subscribed capital is 800 million RMB, with contributions from various partners including BMW China and Shenhwa Holdings [5][19] Related Transactions - The investment constitutes a related party transaction due to the common control by Shenyang Automotive Group [3][6] - The board of directors approved the investment without requiring a shareholder meeting, as it does not constitute a major asset restructuring [3][5] Financial Contributions - Company will contribute 240 million RMB, which is 17.21% of its latest audited net assets [5][19] - Other partners include BMW China with 220 million RMB and Shenhwa Holdings with 20.2 million RMB [5][21] Purpose and Impact - The investment aims to enhance the company's industrial strength and core competitiveness while securing investment returns [4][27] - The company expects to invest 60 million RMB annually from 2025 to 2028, which will not affect its normal operations or dividend distribution [27] Fund Structure and Management - The fund will have a lifespan of 7 years, with a 4-year investment period and a 3-year exit period [19] - The investment decision-making will involve a committee with representatives from the managing partners [23][24] Risk Management - The company acknowledges potential market, operational, and management risks associated with the fund's investment activities [3][28] - The investment is structured to allow for risk isolation and to leverage the advantages of professional institutions and partners [27]

Group 1 - The company plans to invest 240 million yuan as a limited partner in the establishment of the Shenyang Automotive Industry Investment Fund Partnership, accounting for 30% of the total subscribed capital of the fund [1] - The total subscribed capital of the investment fund is 800 million yuan, with all partners contributing in cash [1] - The fund is managed by Guangdong Provincial Yueke Mother Fund Investment Management Co., Ltd., and the executive partner is Yueke Mother Fund and Shenyang Qixin (Shenyang) Enterprise Management Co., Ltd. [1]