Wancong Smart Manufacturing: Holding subsidiary reduces capital by 70 million yuan to constitute related party transaction.

announced that the company and Wenzhou Xinwei plan to reduce capital in proportion to their shareholding in Wan Kong Precision, which they plan to jointly invest in, reducing its registered capital from 100 million yuan to 30 million yuan. After the reduction, the company will invest 24 million yuan, holding 80% of the shares; Wenzhou Xinwei will invest 6 million yuan, holding 20% of the shares. Wenzhou Xinwei is an affiliated company of the company, and this transaction constitutes a related party transaction, but does not constitute a major asset restructuring. The transaction has been reviewed and approved by the board of directors and does not need to be submitted to the shareholders' meeting. The reduction of capital will not result in changes to the company's consolidated financial statements and will not affect the current profits and losses.