Xin Yaqiang: Shareholders holding more than 5% of the shares absorb and merge subsidiary companies, increasing their shareholding to 19.89%.

New Asia Strong announced that Red Tower Innovation, a shareholder with a stake of more than 5%, plans to absorb and merge its wholly-owned subsidiary Red Tower Kunming. After the merger, Red Tower Kunming will be dissolved and cancelled, and the shares it holds in the company will be transferred to Red Tower Innovation in the form of non-trading transfer. After the merger, Red Tower Innovation's shareholding ratio will increase from 7.26% to 19.89%, and Red Tower Kunming will no longer hold any shares. This merger does not involve increasing or decreasing shareholdings, and will not result in a change in the company's controlling shareholder or actual controller. This matter still needs confirmation from the Shanghai Stock Exchange for compliance, and there is uncertainty about whether it will ultimately be successful.