China Electric Motor: Plans to establish a wholly-owned subsidiary with a proposed investment of 60 million yuan to expand new business.

China Electric Motor announced that the seventh meeting of the sixth Board of Directors approved a proposal to establish a wholly-owned subsidiary, Power Energy Co., Ltd., in Inner Mongolia with a total investment of 60 million yuan using its own funds. The subsidiary will engage in new energy storage for wind and solar power and metal mineral resource businesses. The company will hold 100% equity in the subsidiary, and this investment does not constitute a related-party transaction or a major asset restructuring. This investment aligns with the company's long-term plan, and the businesses have synergies, but the subsidiary's operation is subject to various factors, with uncertain profits.