Summary of Key Points Core Viewpoint The company, Beijing Wantong New Development Group Co., Ltd., held an investor briefing on August 20, 2025, to discuss the acquisition of Beijing Shudao Information Technology Co., Ltd. (Shudao Technology) and address investor concerns regarding the transaction and the company's strategic transformation towards digital technology. Group 1: Acquisition Details - The acquisition of Shudao Technology has been approved by the company's board, and the signing of the investment and equity acquisition agreements has been completed [2][4]. - The company has already made the second payment of the acquisition price, and the industrial and commercial changes related to the capital increase are in progress [3][4]. - Shudao Technology is expected to deliver 62.98% of its equity to Wantong Development within this year [8]. Group 2: Product and Market Position - Shudao Technology is one of the few domestic companies capable of independently designing and mass-producing PCIe 5.0 chips, with expectations to begin gradual mass supply by Q4 2025 [3][19]. - The PCIe 5.0 chip market is currently dominated by foreign manufacturers, and Shudao Technology aims to provide customized high-speed interconnect chip solutions that are cost-effective and secure [19][20]. - The company has signed contracts worth 147.91 million yuan (including tax) with Shudao Technology, with confirmed revenue of 28.55 million yuan and an order backlog of 119.36 million yuan [6]. Group 3: Financial and Operational Impact - The acquisition is expected to enhance the company's strategic transformation, moving from traditional real estate to the digital technology sector, which has strong growth potential [15][20]. - The company maintains a low debt ratio and stable cash flow, ensuring that the acquisition will not impose significant operational pressure [6][15]. - The projected revenues for Shudao Technology from 2025 to 2027 are 63.50 million yuan, 290.78 million yuan, and 538.40 million yuan, respectively, with performance commitments set at 80 million yuan, 500 million yuan, and 1 billion yuan [14]. Group 4: Management and Integration Strategy - Post-acquisition, Shudao Technology will operate as a subsidiary under Wantong Development, with plans for integration while maintaining its operational independence [17][20]. - The company has not yet established a specific equity incentive plan for Shudao Technology's management and core team, but it aims to leverage its resources to support the subsidiary's growth [17][20]. - The company assures that the recent detention of its actual controller will not affect the acquisition process or the company's operations [13][15].