Zhitong Finance App News, Tianyu Ecology (603717.SH) issued an announcement. On January 3, 2024, the company received the “Supervisory Work Letter on Foreign Investment Matters of Tianyu Ecological Environment Co., Ltd.” (Shanghai Securities Official Letter [2024] 0002) issued by the Shanghai Stock Exchange. After careful verification and analysis, it now responds to the questions listed in the “Working Letter” as follows:

This cross-border investment is based on the needs of the company's overall development strategy transformation and judgment on the market prospects of the auto parts industry. However, there are uncertainties about the development trends of the industry and changes in market conditions, and there is some uncertainty about whether the goals of cooperation can be achieved in the end. This investment is a medium- to long-term strategic act, and it is not expected to have an impact on the company's business situation in the short term.

The initial planning arrangement of the investment company is to invest in AGYA Beijing through the private equity investment fund (total fund size is RMB 800 million, the company acts as an LP and holds 10% of the fund share) to participate in the establishment. Due to the large size of the fund, there is a risk that the fundraising will fail. Since the company only holds 10% of the fund share, according to the relevant provisions of the “Accounting Standards for Enterprises”, AGEA Beijing is not included in the scope of the company's consolidated statements.

The data of the companies involved in this announcement is provided by the counterparty. Due diligence has not been carried out, and there is uncertainty. Investors are requested to be aware of risks and invest carefully.

This investment is a framework agreement signed with AGEA Beijing. This is the initial intention of negotiations between the parties. A third party professional agency has not yet been hired to carry out due diligence. Further specific cooperation matters still need to be further negotiated and determined by the parties based on due diligence results, and there is a risk that the agreement will be terminated. Performance commitments involved in framework agreements only serve as a basis for the signing of subsequent agreements, are not legally binding, and do not constitute public promises.

There may be situations where the performance of this investment cannot be achieved, including but not limited to the risk that the assets and financial conditions of the performance promised party deteriorate and that it is unable to achieve gambling. Performance promises and the existence of gambling terms cannot be used as a basis for investment decisions. Investors are requested to be aware of risks and invest carefully.