Shanghai Mechanical and Electrical: Intends to transfer 67% equity of Smick Welding Materials for listing, withdrawing from the non-ferrous welding materials industry.

Shanghai Mechanical and Electrical announced that the company plans to publicly list and transfer 67% of its equity in Shanghai Simic Welding Materials Co., Ltd. through the Shanghai United Property Exchange, with a listing price of 291.2017 million yuan. Simic Welding Materials' production site was acquired by the government in 2024 and no longer has the conditions for production and operation. With the company's strategic adjustment, the high-pollution and high-energy-consumption welding materials industry is no longer the company's direction. Through this equity transfer, the company is exiting the non-ferrous welding materials industry. This transaction does not constitute a major asset restructuring and does not constitute a related party transaction.