Bright Smart receives inquiry letter from Shanghai Stock Exchange: asked to explain the rationality of acquiring loss-making targets from related parties.

On January 23, the Shanghai Stock Exchange issued an inquiry letter regarding the disclosure of information on the proposed issuance of shares and payment of cash to purchase assets by Mingyang Intelligent Energy Group Co., Ltd. The letter requested supplementary disclosure of specific examples of synergies in products, technology, channels, etc. between the target company and the listed company, as well as details on post-integration arrangements and related risks. In addition, considering the competitive landscape, industry position, and financial condition of the target company in its sector, an explanation was requested on the main considerations and necessity of the listed company acquiring a loss-making target from a related party, as well as its rationality. Furthermore, reasons for the withdrawal of financial investors should be supplemented, and whether there are any agreements such as bet agreements or other arrangements unfavorable to the listed company between the target company and its actual controlling party and financial investor shareholders, if so, please disclose the main terms of the agreements.