In order to supplement the funds needed for the daily production and operation of the wholly-owned subsidiary Jiangsu AET New Material Technology Co., Ltd. (hereinafter referred to as "Jiangsu AET"), and strengthen the scale efficiency of the company's coating diaphragm processing, the company plans to increase the capital of Jiangsu AET by RMB 200 million. After the capital increase, the registered capital of Jiangsu AET will increase to RMB 300 million. In order to quickly respond to customer needs and in-depth collaboration with the company's Sichuan coated diaphragm processing base, the company plans to invest 50 million yuan through its wholly-owned subsidiary Jiangsu Zhongguancun KATOP New Energy Equipment Co., Ltd. to establish a wholly-owned subsidiary in Qionglai City, Chengdu City, Sichuan Province Company Sichuan KATOP Intelligent Equipment Co., Ltd. (hereinafter referred to as "Sichuan KATOP"). 

The smooth implementation of the capital increase to Jiangsu AET will further guarantee the supply capacity of the company's coating diaphragm processing, supplement the funds needed for Jiangsu AET's daily production and operation, and strengthen the scale benefits; The company's Sichuan KATOP is conducive to the company's rapid response to customer needs, enhancing the coordination of the company's lithium battery automation process equipment and Sichuan coating diaphragm processing capacity, and meeting the growing market demand for lithium-ion batteries.