On January 7th, Simu Technology (02571) made an announcement stating that its wholly-owned subsidiary, Zhejiang Simu Technology Co., Ltd., had entered into an investment and shareholder agreement with Shuxin Juhui Consulting Enterprise, Xinjuhui Technology Enterprise, and Jingwei. According to the agreement, the investors will contribute a total of RMB 9.61 million, which will be a combination of intellectual property rights and monetary funds, to subscribe for the increased registered capital of Zhejiang Simu. This contribution will enable them to acquire a 49% stake in the company. Following the capital increase, the registered capital of Zhejiang Simu will rise to RMB 19.61 million, with Simu Technology retaining a 51% stake and the investors holding the remaining 49%. Simu Technology clarified that the capital increase would not lead to a loss of control over Zhejiang Simu. Additionally, it is anticipated that the relevant transaction will not result in the recognition of any gains or losses in the consolidated financial statements, adhering to standard accounting practices and financial reporting norms.