Shanghai Mechanical and Electrical: intends to list and transfer control of its subsidiary, Smile Welding Materials, by selling 67% of its shares.

Shanghai Mechanical and Electrical announced on the evening of September 12 that the company's eleventh board of directors' meeting approved the proposal of "Regarding the public listing transfer of 67% equity of Shanghai Simik Welding Materials Co., Ltd." The board agreed to authorize the company's management to publicly list and transfer the 67% equity of Simik Welding Materials held by the company on the Hong Kong Stock Exchange. The listing price is 2.91 billion yuan, corresponding to 67% of the evaluation value of 4.35 billion yuan of Simik Welding Materials' total equity value on June 30, 2025. The production site of Simik Welding Materials has been acquired by the government in 2024 and no longer meets the conditions for continued production and operation. With the company's strategic adjustment, the high-pollution, high-energy consumption welding materials industry is no longer the company's direction. Through this equity transfer, the company will withdraw from the colored welding materials industry.