On January 20, 2024, Haochen Software released the Announcement on the Voluntary Disclosure of the Signing of an Investment Agreement and the Establishment of a Holding subsidiary, indicating that Haochen Software plans to set up a holding subsidiary, Suzhou Industrial Software Application Innovation Center Co., LTD., with a registered capital of 30 million yuan. Haochen Software invested 21 million yuan in cash with 70% of the shareholding, and Suzhou Wuzhong Digital Technology Industry Development Co., Ltd. invested 9 million yuan in cash with 30% of the shareholding. This investment does not constitute a connected transaction, nor does it constitute a material asset reorganization. The purpose of the investment is to provide industrial software and industrial digital transformation solutions for industrial enterprises, and realize the industrial software industry to become better, bigger and stronger.

The investment agreement has been approved by the office of the general manager of the company and reported to the chairman for the record, and does not need to be submitted to the board of directors of the company or the shareholders’ meeting for consideration. The governance body of the joint venture company shall be exercised by the shareholders’ meeting. There is no board of directors and one executive director shall be elected by the shareholders’ meeting. The company shall have one supervisor, who shall be elected by the board of shareholders. Shareholders may transfer part or all of their capital contributions to each other, and the financial and accounting systems shall be formulated in accordance with the provisions of the relevant laws and financial and accounting systems of the People’s Republic of China and in light of the company’s circumstances. When a company is dissolved for specific reasons, it shall be liquidated.

Suzhou Haochen Software Co., Ltd. was listed on the Shanghai Stock Exchange on October 10, 2023, and its main business is the research and development, promotion and sales of CAD related software. In the national economic industry belongs to the information transmission, software and information technology service industry category, software and information technology service industry sub-category; In Shenwan industry classification, belongs to the computer category, software development subcategory. As of October 25, 2023, the actual controller of the Company is Hu Lixin. The listing sponsor of Haochen Software (688657.SH) is CITIC Jiantou Securities Co., LTD., and the sponsors are Sun Zhongkai and Huo Liangliang; The IPO service accounting firm is Shu Lun Pan Certified Public Accountants (Special general Partnership), and the certified public accountants are Gao Yunling and Chen Li; The IPO service law firm is Shanghai Jintiancheng Law Firm, and the practicing lawyers are Yuan Cheng, He Nian Sheng and Yan Qiang.

As of the close of business on January 19, 2024, the company’s stock price was 71.71 yuan/share, and the circulating market value was 679 million yuan.