SEC Electric Machinery (603988.SH) plans to invest in the establishment of Zhongdian Energy (Inner Mongolia) Co., Ltd.

SEC Electric Machinery (603988.SH) announced that, based on the company's business characteristics and shareholder situation, and in line with the national and local development layout for the "15th Five-Year Plan", the company intends to establish a wholly-owned subsidiary in Inner Mongolia called MIDEN Energy (Inner Mongolia) Limited (tentative name) with a registered capital of 60 million yuan. The core focus will be to seize the development opportunities in the wind, solar, and energy storage new energy industries and metal mineral resource industries, while leveraging the company's industry foundation in electric machinery manufacturing to expand the application scenarios of electric motors, achieve business synergy and strategic upgrading from upstream to downstream, and build a complete industry chain development pattern to enhance core competitiveness and sustainable profitability. This move is primarily aimed at aligning with the "dual carbon" policy orientation, seizing the high-speed growth dividend of the new energy industry and the strategic scarcity of metal mineral resources, filling the existing business gap, enriching the business structure, and opening up growth space. At the same time, by deeply exploring the synergistic value between electric machinery manufacturing and new businesses, the company's electric motor products can serve as key supporting equipment for the construction of the new energy industry chain, as well as being widely used in core processes such as exploration, mining, and mineral selection of metal mineral resources. By leveraging existing technological research and development and supply chain management capabilities, through this natural convergence point, the company can achieve synergistic linkage between old and new businesses, better leverage its existing business advantages, and form a development trend of "complementary old and new businesses, and upstream-downstream linkage". In the long term, this can both steadily increase the company's revenue scale and profitability and align with long-term strategic planning, as well as continuously increase shareholder returns.