Senat shares injected 350 million yuan into its Thai subsidiary through capital increase and borrowing, reducing its shareholding ratio from 99% to 60%. The capital increase aims to optimize the company's operating funds and the implementation of fundraising projects, enhance the company's sustainable profitability and comprehensive competitiveness. This capital increase does not constitute a related party transaction or a major asset restructuring, and the risks are controllable, which will not have a negative impact on the company's financial and operating conditions.