Group 1 - The company held its second board meeting on July 26, 2025, where it approved a proposal to purchase land use rights and invest in a project [2][3][11] - The total investment for the project, which involves constructing a biodegradable product production base in Changfeng County, Hefei, is capped at RMB 505 million, including land use rights costs [3][11][12] - The project aims to enhance the company's production capacity for biodegradable products, aligning with its strategic development goals and market demand [16][19] Group 2 - The land for the project is approximately 44 acres, with an expected construction area of about 57,000 square meters [12][13] - The company plans to finance the project through its own funds, bank loans, or other financing methods [11][13] - The investment is not classified as a related party transaction or a major asset restructuring under relevant regulations [11][19] Group 3 - The investment is expected to improve the company's competitive edge and support its long-term development strategy [16][19] - The company will need to complete various governmental procedures, including agreements with local authorities and environmental assessments, before proceeding with the project [17][18] - The board meeting's decision was unanimous, with all 7 attending members voting in favor [6][19]

Core Points - Hefei Hengxin Life Science and Technology Co., Ltd. was established as a joint-stock limited company in accordance with the Company Law and Securities Law of the People's Republic of China [2][3] - The company received approval from the China Securities Regulatory Commission to register and issue 25.5 million shares, which will be listed on the Shenzhen Stock Exchange's Growth Enterprise Market on March 19, 2025 [2][3] - The registered capital of the company is RMB 102 million [2][3] Company Structure and Governance - The company is designed for permanent existence as a joint-stock limited company, with the chairman serving as the legal representative [3] - The company’s assets are divided into equal shares, and shareholders are liable only to the extent of their subscribed shares [3] - The articles of association serve as a legally binding document governing the relationships and rights among the company, shareholders, directors, supervisors, and senior management [3][4] Business Objectives and Scope - The company's business objective is to create a high-quality, specialized, integrated production and research center for paper products, aiming to achieve satisfactory economic benefits for shareholders [4] - The registered business scope includes the research, development, manufacturing, and sales of biodegradable materials and paper containers, as well as import and export activities [4][5] Share Issuance and Management - The company issues shares in the form of stocks, adhering to principles of openness, fairness, and justice, ensuring equal rights for all shares of the same type [5][6] - The total number of shares issued by the company is 72 million, with a par value of RMB 1 per share [6][7] - The company prohibits providing financial assistance to individuals or entities purchasing its shares through means such as gifts, loans, or guarantees [7][8] Shareholder Rights and Responsibilities - Shareholders have rights to dividends, participate in shareholder meetings, supervise company operations, and transfer their shares according to legal provisions [12][13] - Shareholders holding more than 5% of the shares must report any pledges of their shares to the company [14][15] - The company’s controlling shareholders and actual controllers are prohibited from harming the interests of the company and its public shareholders [15][16] Shareholder Meetings - The company holds annual and extraordinary shareholder meetings, with the annual meeting required to be held within six months after the end of the previous fiscal year [43][44] - Shareholder meetings must be convened at the company’s registered address or a designated location, and provisions for online voting are available [45][46] - The company must ensure that the meeting records are accurate and preserved for ten years [73][74]