Gelonghui on September 30th announced that Zhengxian Electric (688395.SH) plans to use the unused raised funds of 104.6237 million yuan from the "Production Base Technological Transformation and Expansion Project" to acquire the 100% equity of Tenghe Precision Electric Machine (Suzhou) Co., Ltd. (hereinafter referred to as "Tenghe Electric Machine" or the "target company") held by Yao Cheng, Yao Peide, and Jiang Jianming, and to upgrade and transform the production of Tenghe Electric Machine. The total consideration for the 100% equity transaction of Tenghe Electric Machine is 42.56 million yuan, and the total planned investment in the "Tenghe Electric Machine Production Upgrade and Transformation Project" is 12 million yuan. The remaining raised funds will continue to be used for the construction of the "Production Base Technological Transformation and Expansion Project".

After redirecting a portion of the raised funds of the "Production Base Technological Transformation and Expansion Project" to the "Acquisition of 100% Equity of Tenghe Precision Electric Machine (Suzhou) Co., Ltd." and the "Tenghe Electric Machine Production Upgrade and Transformation Project", the main entities implementing this investment project will simultaneously increase "Zhengxian Electric" and "Tenghe Electric Machine".