Jiangsu Lettall Electronic (603629.SH) plans to establish a subsidiary in Hong Kong, mainly engaged in comprehensive computing power services and other businesses.

Jiangsu Lettall Electronic (603629.SH) has announced that, in order to meet the needs of the company's computing power business development layout and leveraging the business experience and operational capabilities the company has accumulated in the computing power sector, the company plans to establish a wholly-owned subsidiary in Hong Kong, Litong Chen Computing Technology Co., Ltd. (tentative name, subject to the final registered and approved name by the relevant Hong Kong authorities), with a registered capital of HKD 1 million, a planned total investment of USD 80 million (equivalent to approximately RMB 550 million), and a shareholding ratio of 100%, mainly engaged in comprehensive computing power services and other businesses. This investment in establishing a wholly-owned subsidiary in Hong Kong will help the company further serve its overseas customers, expand its overseas computing power business market layout, and align with the company's long-term development strategic planning. This outbound investment is a business arrangement made by the company based on its own development strategy. It can enhance the company's comprehensive competitive strength, elevate the company's industry scale and market position, and provide strong support for the company's sustainable and healthy development.