Asahi Electronics plans to transfer assets and increase the capital of its subsidiary, optimizing internal resource allocation.

The 13th meeting of the 11th Board of Directors of Chengdu Xuguang Electronic Co., Ltd. passed a resolution to transfer assets, liabilities, business, and personnel related to the electrical factory to its wholly-owned subsidiary Xuguang Electric Power Equipment as of August 31. The transferred assets have a net book value of 54.9896 million yuan. The company will increase its capital from 10 million yuan to 56 million yuan based on the audited net asset book value. This transfer is an internal asset transfer and does not affect the scope of the consolidated financial statements, nor does it constitute related party transactions or major asset reorganizations. The transfer is beneficial for optimizing resources and asset structure, improving management efficiency, but tax treatment requires recognition by the tax authorities, and debt transfer and changes in contract parties require the consent of relevant parties.