Core Viewpoint - The company has signed investment agreements with the People's Government of Sanjiao Town, Zhongshan City, to establish a high-performance automotive paint R&D and production base, along with a regional headquarters in Guangdong Province, with a total planned investment of approximately 128 million yuan [1][3][19]. Investment Overview - On October 31, 2024, the company approved the signing of a strategic investment framework agreement with the Sanjiao Town government [1]. - The first phase of the investment agreement was signed on December 25, 2024, detailing the project's basic situation and the rights and obligations of both parties [2]. - The second phase investment agreement was signed on July 24, 2025, which includes additional land acquisition for the project [2][3]. Project Details - The project will involve the establishment of a wholly-owned subsidiary in Sanjiao Town to manage operations and compliance [3]. - The total investment for the project is approximately 128 million yuan, with 114 million yuan allocated for fixed assets and 14 million yuan for working capital [3]. - The project is expected to commence construction within 12 months of land delivery and reach production capacity within 1 year after production starts [3]. Impact on Business - The investment aligns with the growing demand for automotive coatings driven by the rapid development of new energy vehicles, enhancing the company's market position in the South China region [17]. - The project aims to improve product penetration in the South China market and strengthen the company's strategic layout and core competitiveness [17]. Financial Implications - The project is not expected to have a significant immediate impact on the company's financial status or operating results, as it requires land acquisition and has a lengthy construction cycle [18]. - Funding for the project will come from self-owned funds, bank loans, and other self-raised funds, ensuring that it does not significantly affect the company's operational capital [19].

Investment Overview - Company signed a strategic investment framework agreement with the People's Government of Sanjiao Town, Zhongshan City, to invest in a high-performance automotive coating R&D and production base and South China regional headquarters project [1][2] - The project will be developed in two phases, with a total fixed asset investment of 114 million yuan and working capital of 14 million yuan [2] Project Details - The project will include the establishment of a regional headquarters, R&D center, production plant, and supporting warehouses, focusing on high-performance automotive coatings and related resins [2][3] - The project company will manage the operation, land acquisition, and compliance monitoring [2] Rights and Obligations - The company has the right to develop and construct the project, obtain land use rights, and receive relevant legal rights under the agreement [3][4] - The company must comply with the agreement and is liable for any false information or infringement of third-party rights [3][4] Financial Impact - The investment is expected to enhance the company's market position in the South China region, aligning with the growing demand for automotive coatings driven by the rapid development of new energy vehicles [7][8] - The project will not significantly impact the company's financial status or operating results in the short term, with future performance dependent on project progress [7][8] Funding and Investment Scale - The total additional investment is estimated at approximately 128 million yuan, funded through self-owned funds, bank loans, and other financing methods [7][8] - The investment will be phased based on project implementation and will not adversely affect the company's operational capital [8]