Guilin Fuda Co., Ltd. (603166.SH) plans to establish a subsidiary to take over the business of the new energy electric drive technology branch.

Guilin Fuda Co., Ltd. (603166. SH) announced that in order to further optimize the corporate organizational structure and business layout, clarify the target positioning and responsibilities of each business sector, promote the coordinated development of each business sector, and enhance the overall operational management efficiency of the company, the company plans to invest in the establishment of a wholly-owned subsidiary, Guilin Fuda Drive Technology Co., Ltd. (tentative name), to take over the business of Guilin Fuda Co., Ltd. new energy electric drive technology branch. After the completion of the above transfer, the Guilin Fuda Co., Ltd. new energy electric drive technology branch will be deregistered. The company plans to invest in the newly established wholly-owned subsidiary with non-monetary assets, specifically the fixed assets, construction in progress, and intangible assets related to the business of Guilin Fuda Co., Ltd. new energy electric drive technology branch. According to the valuation report issued by Zhongjing Minxin (Beijing) Asset Appraisal Co., Ltd. "Valuation Report of the Assets of Guilin Fuda Co., Ltd. Involved in the Proposed Investment of Guilin Fuda Co., Ltd." [Zhongjing Evaluation Letter (2025) No. 400], the market value of the assets as of the valuation base date of May 31, 2025 was 475 million yuan (including tax). Based on this, the company plans to invest non-monetary assets amounting to 475 million yuan, with 470 million yuan included in the registered capital of the newly established wholly-owned subsidiary, and the remaining 4.9165 million yuan included in capital reserves (related taxes and fees to be determined by the administrative department). In addition, in accordance with the company's development strategy and business plan, to further integrate existing resource allocation, optimize internal management structure, reduce management costs, and improve operational efficiency, the company plans to deregister Changsha Fuda Crankshaft Co., Ltd. and Guilin Fuda Co., Ltd. Taicang branch. The business originally planned by Changsha Fuda Crankshaft Co., Ltd. will be transferred to the company's wholly-owned subsidiary, Xiangyang Fuda Crankshaft Co., Ltd.