Overview of the Merger - Beijing Chenan Technology Co., Ltd. plans to absorb and merge its wholly-owned subsidiary Anhui Zezhong Safety Technology Co., Ltd. to optimize resource allocation and improve overall operational efficiency [1][5] - Upon completion of the merger, Anhui Zezhong's legal entity will be canceled, and the company will inherit all assets, debts, and contractual relationships [1][5] - The merger does not constitute a related party transaction or a significant asset restructuring as defined by relevant regulations [1] Basic Information of the Merging Parties - **Merging Party**: Beijing Chenan Technology Co., Ltd. engages in various activities including software development, information system integration, and security technology services [2] - **Merged Party**: Anhui Zezhong Safety Technology Co., Ltd. specializes in the design, development, and sales of electronic products, communication equipment, and public safety equipment [2] Financial Performance - As of June 30, 2025, the total assets of Beijing Chenan Technology were approximately 94.66 million yuan, with total liabilities of about 58.45 million yuan, resulting in a net asset value of approximately 36.21 million yuan [4] - For the first half of 2025, the company reported operating revenue of approximately 23.28 million yuan and a net profit of about 1.63 million yuan [4] Impact of the Merger - The merger is expected to enhance resource allocation, reduce management levels, and improve overall operational efficiency, aligning with the company's future development needs [5] - Since Anhui Zezhong is a wholly-owned subsidiary, its financial statements are already included in the company's consolidated financial reports, meaning the merger will not have a substantial impact on the company's current profits or financial condition [5]