The company announced today that the State Assets Administration Commission has approved the transfer of 10 million corporate shares held by Shaanxi Technology Progress Investment Co., Ltd. to Schneider Electric, and also announced the continued pledge of 25 million shares held by Changyi Environmental Protection. Incident analysis: The announcement is in line with previous expectations. The end of approval by the State Assets Administration Commission marks a new stage of mergers and acquisitions, and the announcement itself is explained in the following two points; first, only 10 million corporate shares held by Shaanxi Technology Progress Investment Co., Ltd. are other transfers and Schneider's two shareholders, Maoheng Investment and Changyi Environmental Protection, are private shareholders and do not require approval from the State Assets Administration Commission; the equity pledge is a matter of one of the company's shareholders and bank loans, which does not affect this transfer. Follow-up approval: After the approval by the State Assets Administration Commission is completed, it will enter the Ministry of Commerce's approval process. Based on multiple cases involving foreign mergers and acquisitions and comparisons between related companies and Baoguang, we believe that this merger and acquisition is entirely within the scope permitted by the Ministry of Commerce's policy, there are no policy barriers, and the approval time is estimated to be shorter than the standard process; after the Ministry of Commerce's approval is completed, the company will be suspended and exempted from the securities regulatory commission's approval offer. Revision of profit forecast assumptions: The company's current operating conditions are good, and the production, sales and profit of Baoguang Group's joint venture circuit breaker factory have exceeded initial expectations, which also provides a good model for considering Baoguang's future profits; in the profit forecasting hypothesis, we have increased the forecast of arc extinguishing chamber production, mainly incorporating the increase in demand for arc extinguishers due to the expansion of the scope of application of load switches into future arc extinguishing chamber production forecasts; through the investigation of ABB and Siemens arc extinguishing chamber companies, the price and ratio of arc extinguishers using the Schneider brand were slightly raised in the original report; the price and ratio of arc extinguishers using the Schneider brand were slightly raised in this report; Specific analysis and profit forecast changes will be reflected in subsequent updates.