Core Viewpoint - The company plans to sell its wholly-owned subsidiary, Kunshan Longteng Electronics Co., Ltd., to optimize resource allocation and enhance operational efficiency in line with its global strategic development plan [1][4]. Company Overview - Kunshan Longteng Electronics was established in 2002 with a registered capital of 616 million RMB, engaging in the development, production, and sales of various display devices and related products [3]. - As of September 30, 2025, Kunshan Longteng Electronics reported total assets of 476 million RMB and net assets of 470 million RMB [3]. Financial Performance - In 2024, Kunshan Longteng Electronics achieved a revenue of 887 million RMB and a net profit of 1.36 million RMB, but faced a significant decline in 2025 with revenue dropping to 152 million RMB and a net loss of 9.44 million RMB in the first three quarters [3][4]. - Longteng Optoelectronics reported a 27.72% year-on-year decline in quarterly revenue for Q3 2025, totaling 614 million RMB, with a cumulative revenue of 1.90 billion RMB for the first nine months, also down 27.85% year-on-year [4]. Cash Flow and Assets - For the first nine months of 2025, the company generated a net cash flow from operating activities of 134 million RMB, a decrease of 55.83% compared to the previous year, primarily due to reduced cash receipts from sales [5]. - As of September 30, 2025, the total assets of Longteng Optoelectronics were 6.61 billion RMB, showing a slight increase of 0.49% from the end of 2024, while the equity attributable to shareholders decreased by 4.20% to 4.11 billion RMB due to net profit losses [5]. Strategic Implications - The sale of Kunshan Longteng Electronics is viewed as a strategic move to address cyclical fluctuations in the display industry and to focus on core technologies and new productivity initiatives [5]. - By divesting non-core or underperforming assets, the company aims to concentrate resources on high-growth areas, potentially enhancing long-term profitability amidst increasing global competition in display technology [5].

Core Viewpoint - The company, Kunshan Longteng Optoelectronics Co., Ltd., plans to publicly transfer 100% equity of its wholly-owned subsidiary, Kunshan Longteng Electronics Co., Ltd., as part of its global strategic development and resource optimization efforts [2][3] Group 1: Transaction Overview - The transaction will be conducted through a public listing, and the specific details regarding the transaction partner, method, and price are currently undetermined [3][4] - The transaction does not constitute a major asset restructuring as defined by the relevant regulations [2] Group 2: Basic Information of the Transaction Target - The target company, Kunshan Longteng Electronics Co., Ltd., was established on October 8, 2002, with a registered capital of 616 million RMB [5] - The company specializes in the development and production of new flat panel display devices and related products, as well as providing after-sales services [5] Group 3: Pricing and Contractual Details - The transaction price will be based on the evaluation results approved by the state-owned asset supervision and management department, with the listing price not lower than the assessed value [7] - As of the announcement date, the transaction partner and price have not been determined, and no transaction agreement has been signed [8] Group 4: Impact on the Company - The sale of 100% equity in Longteng Electronics is expected to optimize resource allocation, enhance overall operational efficiency, and strengthen the company's comprehensive capabilities [10] - If the transaction is successfully completed, Longteng Electronics will no longer be included in the company's consolidated financial statements [10]