YANHUA SMARTECH: Sichuan Provincial State Investment plans to invest 75 million yuan to increase capital in its controlling subsidiary Yixing Technology

YANHUA SMARTECH announced that Sichuan Guotou intends to invest a total of 75 million yuan through capital increase and share expansion, using cash and equity valuation to become a shareholder of Yixing Technology. Among them, 25 million yuan will be contributed in cash, and 50 million yuan will be contributed based on the 24.7619% equity held by Sichuan Guotou in Chengdian Yixing. Before this transaction, Yixing Technology was a subsidiary controlled by YANHUA SMARTECH and included in the consolidated financial statements. After the completion of this transaction, Yixing Technology will change from a controlled subsidiary to an affiliated company and will no longer be included in the consolidated financial statements. The transaction is expected to have a positive impact of approximately 12 million to 15 million yuan on the listed company's net profit after tax for the fiscal year 2025, accounting for more than 50% of the audited net profit of the listed company for the most recent fiscal year