CDXG plans to transfer assets and increase capital for its subsidiary to optimize internal resource allocation

The 13th meeting of the 11th Board of Directors of Chengdu CDXG Co., Ltd. passed a proposal to transfer the relevant assets, liabilities, business, and personnel of the electrical appliance factory to its wholly-owned subsidiary CDXG Power Equipment, with August 31 as the reference date, transferring assets with a book net asset value of 54.9896 million yuan. The company will increase its capital based on the audited book value of the net assets, with the registered capital proposed to increase from 10 million yuan to 56 million yuan. This transfer is an internal asset transfer, does not affect the scope of the consolidated financial statements, and does not constitute a related party transaction or a major asset restructuring. The transfer is beneficial for optimizing resource and asset structure and improving management efficiency, but tax treatment requires recognition by the tax authorities, and the transfer of debts and changes in contract parties require the consent of relevant parties