Victory Precision: The pricing of this capital increase comprehensively considers multiple factors such as Anhui Feituo's financial indicators and business development stage.

Securities Star News: Victory Precision (002426) answered investor questions of concern on the investor relations platform on April 07.

**Investor: **Hello, Board Secretary. Our company’s wholly-owned subsidiary, Anhui Faituo New Materials Technology Co., Ltd., as the composite copper foil business is about to enter the mass production ramp-up and the critical stage of plant inspection, increased its capital contribution to Shucheng Shengtuo New Energy controlled by the actual controller and the core technology team, enabling it to obtain a 14.97% equity stake at an extremely low price. In this regard, we, as minority shareholders, have several questions. Please have the company clearly respond: The pricing for this capital increase is based on the par value of registered capital and does not take into account the technology, customers, production capacity, and industry prospects that the composite copper foil business has already possessed. Is the pricing sufficiently fair and equitable? Is there any obvious case of undervaluing the listed company’s core asset value? This capital increase has high growth potential

**Victory Precision Board Secretary: **Hello. This capital increase from Shucheng Shengtuo to Anhui Faituo is intended to achieve deep collaboration with the core team, consolidate the core strengths in R&D and management, and ensure that Anhui Faituo’s business advances steadily. The pricing for this capital increase comprehensively considered multiple factors such as Anhui Faituo’s financial indicators and business development stage, and it has also strictly fulfilled internal review and approval procedures. The valuation is legally compliant; there is no situation of undervaluing the company’s core assets or harming the interests of the listed company or minority shareholders. The company will continue to standardize operational and management practices and effectively protect the legitimate rights and interests of all shareholders. Thank you for your attention!

**Investor: **Regarding the pricing basis and valuation reasonableness for the capital increase in Anhui Faituo, and whether it is涉嫌 to severely undervalue asset value?

**Victory Precision Board Secretary: **Hello. This capital increase from Shucheng Shengtuo to Anhui Faituo is intended to achieve deep collaboration with the core team, consolidate the core strengths in R&D and management, and ensure that Anhui Faituo’s business advances steadily. The pricing for this capital increase comprehensively considered multiple factors such as Anhui Faituo’s financial indicators and business development stage, and it has also strictly fulfilled internal review and approval procedures. The valuation is legally compliant; there is no situation of undervaluing the company’s core assets or harming the interests of the listed company or minority shareholders. The company will continue to standardize operational and management practices and effectively protect the legitimate rights and interests of all shareholders. Thank you for your attention!

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