On October 15, Geelong's announcement stated that, based on the company's global strategy needs, its holding subsidiary Haitian Silk Road plans to increase its registered capital. The company's board of directors agreed that the Hefei Haisei Satellite Technology Private Equity Partnership Enterprise (limited partnership) (hereinafter referred to as 'Hefei Haisei Partnership Enterprise') will increase its capital to Haitian Silk Road by 1 billion yuan in cash. The company and Fuzhou Digital New Infrastructure Investment Partnership Enterprise (limited partnership) both waive their priority subscription rights for the capital increase of Haitian Silk Road this time. After the above-mentioned capital increase, the company holds 58.20% of the equity of Haitian Silk Road. Haitian Silk Road remains a subsidiary wholly owned by the company. According to the agreement requirements of the above capital increase, after the capital increase is completed, Haitian Silk Road needs to increase its capital to its subsidiary Hefei Jiusheng Satellite Technology Co., Ltd. (hereinafter referred to as 'Jiusheng Satellite') by an equal amount in cash to 1 billion yuan.
This capital increase is for the holding subsidiary Haitian Silk Road to increase its capital to its subsidiary. After the capital increase, the company's holding subsidiary still holds 100% equity of Jiusheng Satellite, which will not change the scope of the company's consolidated financial statements. It is in line with the company's satellite business operation plan, beneficial for the subsidiary to carry out related business activities more effectively, enhance overall competitiveness, expand market share, align with the overall development strategy of the company and its subsidiaries. It will not adversely affect the company's normal production and operation or financial condition, and will not harm the interests of the company and its shareholders. This equal investment is to enhance cooperation with state-owned enterprises in Hefei, thereby incubating satellite-related extension business.
