Mcc Meili Cloud Computing Industry Investment announced that according to the company's overall global strategy, it plans to stop the operation of the papermaking business and liquidate its wholly-owned subsidiary Ningxia Xinghe New Materials Technology Co., Ltd. (referred to as "Xinghe Technology"). This closure of the papermaking business and the liquidation of the subsidiary matter still needs to be submitted to the shareholders' meeting for deliberation. Xinghe Technology was established on April 25, 2023, with a registered capital of 4 million yuan, and the company holds 100%. The company stated that the papermaking business has obsolete production capacity, outdated equipment, and high safety risks, causing continuous losses with no hope of turning a profit in the future, so it has decided to proceed with liquidation. It is expected that this liquidation will result in a reduction of about 0.12 billion yuan in the company's consolidated revenue for the fiscal year 2024, a reduction of about 0.33 billion yuan in total consolidated assets, and a reduction of about 0.4 billion yuan in consolidated net income. In the long run, it aligns with the company's strategic layout and the interests of all shareholders.