Hongxin Electronics: Holding subsidiary Wuxi Suihong intends to increase capital and introduce strategic investors.

Hongxin Electronic announced that its holding subsidiary, Wuxi Suihong Huachuang Technology Co., Ltd., intends to introduce a strategic investor, Wuxi Xinqin District Ke Chan Yuan Zhi Investment Partnership Enterprise, through capital increase and share expansion. The investor will contribute 500 million yuan, with a pre-investment valuation of 3 billion yuan. After this capital increase is completed, Wuxi Suihong will still be a subsidiary of the company and will not result in a change in the scope of the consolidated financial statements.