Shenkai Co., Ltd. intends to utilize a portion of its recently raised funds, amounting to RMB 60 million, to acquire a controlling 51% stake in Beijing Blue Ocean Wisdom Energy Technology Co., Ltd. Upon successful completion of this transaction, Blue Ocean Wisdom will transition into a holding subsidiary of Shenkai. Blue Ocean Wisdom stands as an innovative pioneer in intelligent drilling technology within the oil and gas industry, leveraging data-driven integrated solutions to assist oil companies and drilling enterprises in enhancing drilling efficiency, managing and mitigating operational risks, and optimizing single-well productivity. Its core business encompasses wellsite data acquisition and transmission systems, drilling optimization software, geological engineering cloud platforms, as well as offering tailored R&D services for software such as AI algorithms tailored specifically for drilling operations.