Lutong Electromechanical is a wholly-owned subsidiary of the company. At the same time, the company holds 40% of the equity of Bourne Luxiao. The company's chairman Lu Xiaojun serves as a director in Bourne Luxiao, and the general manager Lu Yong serves as the vice chairman and general manager in Bourne Luxiao. According to the "Stock Listing Rules" of the Shenzhen Stock Exchange (hereinafter referred to as the "Shenzhen Stock Exchange"), this transaction constitutes a related transaction.
This matter has been reviewed and approved at the 26th meeting of the company’s second board of directors despite the company’s associated directors abstaining from voting. According to the relevant provisions of the Shenzhen Stock Exchange's "Stock Listing Rules" and the "Articles of Association", this transaction still needs to be approved by the shareholders' meeting. Related shareholders related to the related transaction will avoid voting on the proposal at the shareholders' meeting.
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