Sichuan Jiuzhou Electric (000801.SZ), a company in which it holds a stake, Jiuzhou Optoelectronics plans to increase capital and expand its shareholding.

Sichuan Jiuzhou Electric (000801.SZ) announced that its investee company Sichuan Jiuzhou Optoelectronics Technology Co., Ltd. (referred to as Jiuzhou Optoelectronics), in order to raise funds needed for business development, plans to implement a capital increase and share expansion through a public listing on the Southwest United Equity Exchange, with the amount to be raised not exceeding RMB450 million (inclusive); Harbin Jiuzhou Group, the controlling shareholder of Jiuzhou Optoelectronics, in order to ensure that its direct shareholding ratio after this capital increase is not less than 50%, plans to simultaneously invest directly or indirectly no more than RMB150 million, with total capital increase not exceeding RMB600 million (inclusive). The company holds a 6.25% equity interest in Jiuzhou Optoelectronics and is a shareholder of Jiuzhou Optoelectronics. The company's controlling shareholder, Harbin Jiuzhou Group, holds a 70.67% equity interest in Jiuzhou Optoelectronics. Harbin Jiuzhou Group's capital increase in Jiuzhou Optoelectronics of no more than RMB150 million constitutes a related-party transaction of joint related-party investment. The company waives its preferential right to subscribe to the capital contribution for this capital increase. This waiver will not change the scope of the company's consolidated financial statements, nor will it have an adverse impact on the company's financial condition, operating results, future main business, or ability to continue as a going concern.