On September 30, Xunjiexing (Stock Code: 688655.SH) disclosed that during its fourth board of directors meeting of the fourth session held on the same day, the 'Proposal on Canceling the Share Issuance and Cash Payment for Asset Purchase, along with Raising Supporting Funds' was deliberated and approved. Consequently, the company resolved to abandon its initial strategy of acquiring 100% equity in Shenzhen Jiazhihong Electronics Co., Ltd. via a combination of share issuance and cash payment, while also discontinuing plans to raise supplementary funds.

Concurrently, the board empowered the company's management to oversee all matters pertaining to the cancellation. The primary reason cited for this decision was the inability to complete the necessary auditing and valuation processes within the stipulated timeline. Moreover, the parties involved in the transaction couldn't bridge their differences regarding the extension of the deal's timeline.

Xunjiexing emphasized that it has adhered to all pertinent decision-making procedures and fulfilled its information disclosure obligations. The company further assured that the cancellation would not significantly disrupt its production, operations, or financial standing. Additionally, Xunjiexing pledged not to initiate any major asset restructuring activities within one month from the date of announcing the cancellation.