According to the Zhitong Finance APP, FOTO (603166.SH) announced that in order to further optimize the company's organizational structure and business layout, clarify the target positioning and responsibilities of each business segment, promote the coordinated development of various business segments, and enhance the overall operational management efficiency of the company, it plans to establish a wholly-owned subsidiary, Guilin FOTO Drive Technology Co., Ltd. (tentative name), to undertake the business of the Guilin FOTO Co., Ltd. New Energy Electric Drive Technology Branch. After the completion of the above-mentioned undertaking, the Guilin FOTO Co., Ltd. New Energy Electric Drive Technology Branch will be deregistered.

The company intends to contribute non-monetary assets to the newly established wholly-owned subsidiary, specifically the fixed assets, construction in progress, and intangible assets related to the business of the Guilin FOTO Co., Ltd. New Energy Electric Drive Technology Branch. According to the asset valuation report issued by Zhongjing Minxin (Beijing) Asset Appraisal Co., Ltd. titled "Asset Valuation Report on Certain Assets of Guilin FOTO Co., Ltd. Involved in External Investment" [Jingxin Pingbao Zi (2025) No. 400], the market value of these assets as of the valuation benchmark date of May 31, 2025, is 475 million yuan (including tax). Accordingly, the company plans to contribute a non-monetary asset amount of 475 million yuan, of which 470 million yuan will be included in the registered capital of the newly established wholly-owned subsidiary, and the remaining 4.9165 million yuan will be included in the capital reserve (related taxes and fees will be included as determined by the administrative authority).

At the same time, in accordance with the company's development strategy and operational planning, to further integrate existing resource allocation, optimize the internal management structure, reduce management costs, and improve operational efficiency, the company plans to deregister Changsha FOTO Crankshaft Co., Ltd. and the Taicang Branch of Guilin FOTO Co., Ltd. The business originally planned to be conducted by Changsha FOTO Crankshaft Co., Ltd. will be transferred to the company's wholly-owned subsidiary, Xiangyang FOTO Crankshaft Co., Ltd