Yingzi Network announced that its wholly-owned subsidiary Chongqing Yingzi Electronics Co., Ltd. intends to sign a construction contract for the second phase of the Intelligent Project with Hangzhou Hikvision System Technology Co., Ltd., with a total transaction amount anticipated to not exceed 35 million yuan. Hikvision System is a wholly-owned subsidiary of the company's controlling shareholder Hangzhou Hikvision Digital Technology Co., Ltd., constituting a related transaction. The transaction is based on the actual operation of Chongqing Yingzi and the needs for the second phase of the Yingzi Intelligent Manufacturing Chongqing base project, which is beneficial for the normal advancement of intelligence. The transaction price is fair and reasonable, and it has no adverse impact on the company's financial condition and operating results.