Guancheng New Materials announced that the company plans to introduce the China Orient Asset Management Co., Ltd. to increase capital in its wholly-owned subsidiary Datong New Materials by 0.3 billion yuan, all in Cash. The increased funds will be used to repay the financial liabilities within the scope of the consolidated financial statements of Datong New Materials. After the capital increase is completed, the SPV will hold approximately 19.35% of Datong New Materials, while the company and its wholly-owned subsidiary Fujian Guancheng Huitai Development Co., Ltd. will collectively hold approximately 80.65% of Datong New Materials. The company remains the controlling Shareholder of Datong New Materials, possessing actual control over it. The SPV investment period is 1 year. After the investment period ends, the company or a third party designated by the company may acquire the target equity held by the SPV through Private Placement or issuance of shares/convertible Bonds, or may independently acquire the shares of Datong New Materials held by the SPV directly.