Incident: The company deliberated and passed the “Bill on Capital Increase to Wholly-owned Subsidiaries”. The comments on this are as follows: The company recently increased its capital by 700 million yuan to China Railway Assembly Technology, a wholly-owned subsidiary, which is conducive to further expanding the scale of business. On November 25, the company held the 28th meeting of the third board of directors to vote by registered vote, and deliberated and passed the “Proposal on Capital Increase to Wholly-owned Subsidiaries”. It was agreed that the company will use its own capital to increase the capital of China Railway Prefabricated Construction Technology Co., Ltd., a wholly-owned subsidiary, by 700 million yuan. After the capital increase is completed, the registered capital of China Railway Prefabricated Construction Technology Co., Ltd. will increase from 300 million yuan to 1 billion yuan, and the company still holds 100% of its shares. On September 24, the company announced that the name of its wholly-owned subsidiary “Beijing Hengtong Innovation Complete Housing Assembly Co., Ltd.” was changed to “China Railway Prefabricated Construction Technology Co., Ltd.” and that the legal representative was changed from “Sun Zhiqiang” to “Single State”. The company reported revenue of 498 million yuan in 2020 and net profit of 16.07 million yuan; in 2019, revenue of 701 million yuan and net profit of 38.38 million yuan, accounting for a relatively large share of revenue among group companies. On September 19, the company announced a transaction amount of 91 million yuan related to China Railway. The two sides are cooperating more and more closely. It is estimated that from September 2020 to December 2020, there will be an increase in daily related transactions with China Railway and its subsidiary holding subsidiaries for a total amount of no more than 91 million yuan; of these, 200 million yuan for the sale of goods and services for China Railway, and 700 million yuan for related transactions with China Railway Finance. The total amount of daily related transactions between the company and its holding subsidiaries and China Railway and its holding subsidiaries in the 12 months prior to August 31, 2020 was $86.382 million.