Kai Zhong Precision: Plans to Invest No More Than 250 Million Yuan in Thailand to Establish a Subsidiary and Build a New Production Base

Kaizhong Precision announced on August 13 that, in order to implement the strategic planning and layout for its overseas connector and other precision component businesses, the company plans to invest in establishing a subsidiary and building a new production base in Thailand, with an investment amount not exceeding RMB 250 million (or its equivalent in other currencies). This investment includes but is not limited to the purchase of land and the acquisition and construction of fixed assets and other related matters. The funding will come from the company’s own funds and self-raised funds. The actual investment amount will be subject to approval by the relevant authorities in China and the local jurisdiction.

The Board of Directors has authorized the management team to fully handle matters related to the investment and establishment of a subsidiary in Thailand, the setup of an overseas equity structure, and the investment and construction of a production base. This external investment falls within the approval authority of the Board of Directors and does not require submission to the General Meeting of Shareholders for deliberation. It does not constitute a related-party transaction or a major asset restructuring.

Kaizhong Precision stated that this investment is conducive to advancing overseas expansion, meeting customers' localized operation and support service needs, exploring overseas markets, and enhancing the company's overall competitiveness and risk resistance capabilities. The funds are sourced from self-owned and self-raised capital and will not have a significant impact on the financial condition.

In terms of risks, this investment is subject to the filing or approval procedures for outbound investments from China and the local permit procedures in Thailand, which present uncertainties. The legal regulations and business environment in Thailand differ significantly from those in China, and the subsidiary's operations may face management and market risks. The company will promptly fulfill its subsequent information disclosure obligations.