Hello, the equity situation of Jiangxi Shenghua New Materials Co., Ltd. is: your company holds 56.27% of the shares, CATL holds 20% of the shares, and Changjiang Chendao holds 20% of the shares. However, in the 2022 annual report, the company disclosed that its shareholding ratio in Jiangxi Shenghua was 96.28%, and the minority shareholders held only 3.72% of the shares. Is there any error in the annual report disclosure?

Fulin Precision: Hello, the relevant investment agreements signed by the company with CATL and Changjiang Morning Road contain a contingent repurchase clause, which constitutes an obligation to repurchase its own equity in cash; according to the relevant provisions of the "Guidelines for the Application of Regulatory Rules-Accounting No. 3", the business should recognize the obligation as a financial liability at the time of initial recognition. Therefore, the company recognizes the investment as a debt investment rather than an equity investment in both initial recognition and subsequent measurement. Please refer to the non-current liabilities account and related notes of the company's annual financial statements. Thank you for your attention!