Sunmoon Shareholding: Controlling subsidiary Benxi Liaocai plans to reduce its capital by 296 million yuan.

SunMoon Corporation announced that the company holds a 61% stake in Benxi Liaocai, and the company plans to reduce its capital in proportion to other shareholders, reducing the registered capital from 300 million yuan to 4.5 million yuan, with a total reduction of 296 million yuan. Among them, the company plans to reduce its capital by 180 million yuan, with the contribution amount decreasing to 2.745 million yuan. Since Fu Lingxiao and Wang Ye are related natural persons, this transaction constitutes a related party transaction. The matter has been approved by the board of directors and does not need to be submitted to the shareholders' meeting. The company expects to return 180 million yuan of funds, optimize its asset structure, and have no significant impact on current operations.