Zhejiang Shuanghuan Driveline announced that according to the strategic plan of its holding subsidiary Huanqu Technology, in order to meet the expansion needs of its subsidiary Sandou Lehai Defense Business, Huanqu Technology plans to increase its investment in the Vietnamese subsidiary Sandou Lehai Defense through its wholly-owned Hong Kong subsidiary Huanqu Hong Kong with its own funds, with an investment amount of 30 million yuan. This capital increase conforms to the strategic planning of Huanqu Technology and the expansion needs of the Vietnamese Sandou Lehai Defense Business, which will help improve the manufacturing level and comprehensive competitiveness of Sandou Lehai Defense in the field of intelligent executive institutions, accelerate the international strategic layout process of Huanqu Technology. This capital increase will not result in significant changes to the company's scope of consolidation, business results, and financial condition.