Zhiyang Innovation: Plans to increase capital by 300 million yuan in cash to Lingming Photonics, holding approximately 9.09% to 10.00% of the shares

Zhiyang Innovation Announcement: The company has signed a “Strategic Investment Intent Agreement” with Shenzhen Lingming Photonic Technology Co., Ltd., agreeing to terminate the related transaction of acquiring the target company’s equity through issuing RMB ordinary shares and/or convertible corporate bonds, cash (if any), and other methods. At the same time, the company plans to inject capital into the target company in cash and purchase part of the target company’s equity (if any). The initial investment amount is tentatively set at 300 million yuan, based on the post-investment valuation of the most recent financing round. The pre-investment valuation of the target company is preliminarily estimated to be between 2.7 billion and 3 billion yuan, with a post-investment shareholding ratio of approximately 9.09% to 10.00%. The funding sources are from the company’s own and self-raised funds. After the completion of this investment, the company is expected to become a significant shareholder holding more than 9% of the target company, with the right to nominate one director candidate and a veto right over the overall sale of the target company. The target company is expected to become an associate company of the company.