Sailun Group (601058.SH) plans to increase its capital by 420 million yuan to achieve a controlling stake in the East China test field.

Sailun Group (601058.SH) announced that East (Dongying) Intelligent Connected Vehicle Test Field Co., Ltd. (referred to as "East Test Field") is a company's joint-stock company (the company currently holds a 37.22% stake). East Test Field plans to build industry-leading testing roads and supporting facilities, dedicated to creating a domestically leading and internationally first-class public testing service platform for complete vehicles and components. The first phase of the East Test Field project focuses on intelligent connected and performance testing roads, with the intelligent connected area being the most comprehensive closed testing area for intelligent connected vehicles in China. As of now, facilities such as intelligent connected urban road network, braking road, comfort road, noise road, wet roundabout, and operation and maintenance area have been put into use. Recently, the company received a letter from East Test Field requesting shareholders to further increase their capital for East (Dongying) Intelligent Connected Vehicle Test Field Co., Ltd. East Test Field plans to launch the construction of a new phase project and invites shareholders to increase their capital. East Test Field's other shareholders Changchun Automobile Testing Center Co., Ltd. and China Communications Construction First Highway Engineering Bureau Group Co., Ltd. have confirmed that they will not participate in this capital increase. The company plans to increase its capital in East Test Field by 420 million yuan, and after the increase is completed, the company's stake in it must exceed 50%. It is reported that East Test Field is planned to build five major areas: intelligent connected, performance testing, endurance testing, laboratory testing, and operation and maintenance services, including more than 20 high-standard testing roads. The project will be planned in a phased manner, integrating commercial and passenger vehicles to meet the requirements of a full range of vehicle models and major automotive component companies. This capital increase will further enhance the financial strength of East Test Field and facilitate the progress of the new phase project. After this capital increase is completed, East Test Field will become a controlling subsidiary of the company, better able to meet the company's related tire product testing and testing needs, as well as enhancing the testing capabilities of East Test Field's vehicles and related components to provide more intelligent, convenient, and efficient site services for a wide range of customers.