Wuxi Autowell Technology Co., Ltd. (688516.SH) plans to increase capital by 180 million yuan to resolve customer arrears issues with Runyang Group.

Announcement from Wuxi Autowell Technology Co., Ltd. (688516.SH): The company and its controlling subsidiaries, Wuxi Autowell Technology Co., Ltd. Supply Chain Management Co., Ltd., and Wuxi Autowell Technology Co., Ltd. Xurui Technology Co., Ltd. (hereinafter referred to as "Wuxi Autowell Technology Co., Ltd. subsidiaries"), have established a long-term cooperative relationship with Jiangsu Runyang New Energy Technology Co., Ltd. (referred to as "Runyang Stock" or the "target company") and its subsidiaries Yunnan Runyang Century Photovoltaic Technology Co., Ltd., Jiangsu Runyang Century Photovoltaic Technology Co., Ltd., Runyang International Photovoltaic Technology Co., Ltd., Runyang Photovoltaic Technology (Thailand) Co., Ltd., Jiangsu Runyang Yueda Photovoltaic Technology Co., Ltd., Jiangsu Runyang Photovoltaic Technology Co., Ltd. (hereinafter referred to as "Runyang subsidiaries"). For the convenience of settlement, the Wuxi Autowell Technology Co., Ltd. subsidiaries have agreed to transfer part of their debt to Runyang Stock and its subsidiaries to Wuxi Autowell Technology Co., Ltd., and Wuxi Autowell Technology Co., Ltd. has agreed to accept the aforementioned debt; Runyang subsidiaries will transfer their debt to the company to Runyang Stock, and Runyang Stock has agreed to assume the debt repayment responsibility. It is planned that the company will increase its capital by RMB 180 million in the target company through the aforementioned debt. After the capital increase, the company will hold 10,125,000 shares of the target company, accounting for 2.0225% of the total share capital of the target company. This external investment aims to quickly resolve customer debt issues, expedite the company's payment collection, reduce bad debt risks, optimize the company's financial structure, and strengthen cooperation with customers. The pricing of this investment is based on the assessment of the target company's assets and has been determined through negotiations. There are also investment compensation or repurchase clauses in place, ensuring that it does not harm the interests of the listed company and all shareholders.