CIRC(01763)Signing of Equity Transfer Agreement to further expand the territory of non-destructive testing business.

CIRC (01763) announced on March 19 that its subsidiary, Chengdu Zhongke Hi-Tech Isotope Co., Ltd. (Zhongke Hi-Tech), signed a "Equity Transfer Agreement" to acquire 51% of the equity in Hunan Hongdou Engineering Inspection Co., Ltd. (Hongdou Inspection). After the completion of the transaction, Hongdou Inspection will become a wholly-owned subsidiary of the company and will be included in the consolidated financial statements. Hongdou Inspection specializes in special equipment inspection and testing services and is one of the units in China's special equipment non-destructive testing industry with comprehensive qualifications and high levels. It has nine complete qualifications approved by the Inspection and Testing Organization of Special Equipment of the People's Republic of China: including "RT radiographic testing, UT ultrasonic testing, PT penetration testing, and MT magnetic particle testing" in the CG basic testing category, ECT eddy current testing, AE acoustic emission testing, TOFD ultrasonic diffraction time of flight, PAUT phased array ultrasonic testing, MFL magnetic flux leakage (including tank bottom leakage, internal and external pipeline leakage); regular testing of public pipelines (DD2), regular testing of industrial pipelines (DD3); safety valve calibration; CMA qualification certificate for inspection and testing agencies, CNAS laboratory accreditation certificate, and other qualifications and complete operating management systems. It has a wide customer base in the fields of petrochemical, metallurgy, aerospace, rail transportation, and electricity, with a business network covering most parts of the country. Zhongke Hi-Tech is positioned as a "world-class supplier of integrated radiation source and application technology systems" focusing on four areas: isotopes, radiation sources, equipment with sources, and application services with sources. It is committed to creating a full-chain industrial ecosystem of "radiation sources - source equipment - backend services". Zhongke Hi-Tech occupies a leading position in the domestic non-destructive testing radiation source market, with the vast majority of market share. This transaction is another expansion of its non-destructive testing business since acquiring Xi'an Zhanshi Inspection Engineering Co., Ltd. in 2023, which will help it further expand its market share in the niche field, enhance comprehensive competitive strength, steadily improve its industry market position, and core influence.