Transaction Overview - On August 20, 2025, Shenzhen Yingshisheng Information Technology Co., Ltd. disclosed a pre-announcement regarding the reduction of shares by a shareholder holding more than 5% [1] - Shanghai Tongyi Investment Management Co., Ltd., representing several private equity funds, plans to reduce its holdings in Yingshisheng by up to 15,020,061 shares, not exceeding 2% of the total share capital [1] - As of the announcement date, Tongyi Investment has sold 8,109,954 shares, amounting to approximately 178.85 million RMB, with an expected pre-tax profit of about 122.74 million RMB, representing 10% of the company's most recent audited net profit [1][4] Shareholding Changes - Prior to the sale, Hang Seng Electronics and its concerted action party, Tongyi Investment, held a total of 97,427,988 shares in Yingshisheng, accounting for 12.97% of the total share capital [4] - After the sale, their combined holdings decreased to 89,318,034 shares, representing 11.89% of the total share capital [4] Approval and Compliance - The sale does not constitute a related party transaction or a major asset restructuring and has been conducted within the management's approval authority [2][5] - If future transactions reach the threshold requiring board or shareholder approval, a meeting will be convened for further deliberation [2][5] Asset Characteristics - The sold assets are free from any encumbrances, legal disputes, or restrictions on transfer, ensuring clear ownership [5][6] - The shares were acquired through a combination of agreement transfer and market transactions, with a total of 37,560,000 shares acquired previously [6] Financial Impact - The expected pre-tax profit from the sale is projected at approximately 122.74 million RMB, which will be finalized in the company's audited financial reports [4][6] - The transaction aims to optimize the company's asset structure while maintaining a long-term investment perspective in Yingshisheng [6]