Bozhong Precision Machinery: The holding subsidiary will increase its capital and expand its shares, forming a passive financial support of 20.4 million yuan.

Bozhong Precision announced that its controlling subsidiary, Bozhong Instrument, plans to increase capital and introduce investors, with new shareholders contributing a total of 30.9 million yuan. After the capital increase, the registered capital of Bozhong Instrument will increase from 29.9259 million yuan to 32.568 million yuan. The company's shareholding ratio will decrease from 34.0842% to 31.3191%. Bozhong Instrument will become an associated company and will no longer be included in the consolidated financial statements. As of the date of the announcement, Bozhong Instrument has a loan payable to the company of 20.4 million yuan, with an annual interest rate of 2.5% and a repayment date of December 31, 2027. This loan will passively form financial assistance. This matter has been approved by the board of directors and still requires approval from the shareholders' meeting. As of December 20, 2025, the company has accumulated a balance of 90.4 million yuan in financial assistance provided to entities outside the consolidated financial statements, accounting for 2.03% of the most recent audited net assets. There are no outstanding amounts overdue for recovery.