YGSOFT subsidiary cuts registered capital by 20m yuan to boost efficiency

Changsha Yuanguang Ruixiang Technology Co., Ltd. (Yuanguang Ruixiang), a controlled subsidiary of YGSOFT's wholly-owned subsidiary Jiarui Think Detection Technology Services (Zhuhai) Co., Ltd., has reduced its registered capital from 30.08 million yuan to 10.08 million yuan. This reduction of 20 million yuan is proportional across all shareholders, with Jiarui Think Detection cutting its contribution by 14 million yuan and Changsha Yuxiang Intelligent Technology Partnership by 6 million yuan. Jiarui Think Detection will maintain its 70% equity stake in Yuanguang Ruixiang.

The capital reduction aims to streamline subsidiary governance, strengthen risk prevention, and improve operational quality. This move facilitates better utilization of funds and will not negatively impact Yuanguang Ruixiang's operations, as existing capital is sufficient. The transaction does not involve any payment for the capital reduction or asset appraisal, as it pertains to uncalled capital contributions.

The reduction will not alter Jiarui Think Detection's shareholding percentage in Yuanguang Ruixiang, nor will it affect YGSOFT's consolidated financial statements or overall financial health. The company emphasizes that this action does not harm the interests of listed company shareholders, especially small and medium-sized investors.