China Steel Luonai announced that its wholly-owned subsidiary, China Steel Luonai Institute, plans to transfer 51% of the equity it holds in the company's subsidiary, Naiyan Binhe, to the company without compensation. After the completion of this equity transfer, the company will directly hold 51% of the equity in Naiyan Binhe. This trade aims to simplify the hierarchy of subsidiaries, optimize the management structure, and improve management efficiency, and it will not lead to changes in the scope of the company's consolidated financial statements. This internal equity transfer occurs between the company and the wholly-owned subsidiary, does not constitute a related party transaction, nor does it constitute a significant asset restructuring.