According to the company's global strategy and actual operation situation, in order to further promote business development, the company plans to invest 100 million yuan of its own funds to establish a wholly-owned subsidiary, Jiangsu Guangtong Energy Co., Ltd., in Qidong City, Nantong City, Jiangsu Province (subject to the final approval of the Market Supervision Administration of Nantong City). This external investment does not constitute a related-party transaction.
The establishment of a wholly-owned subsidiary through this external investment is based on the company's future development strategy, which is beneficial for further improving the business layout, expanding business development space, and enhancing overall competitiveness. It also has positive significance for the company's long-term development.
