On October 24, ZHONGMIAO (01471) successfully completed the equity transfer for its strategic investment in Beijing Kechuang Rongxin Technology Co., Ltd. (referred to as "Kechuang Rongxin"). This marks a significant milestone in ZHONGMIAO's transformation from an insurance technology provider to an ecosystem-based financial technology services company, with Kechuang Rongxin officially joining its fintech ecosystem.

As previously announced, ZHONGMIAO acquired a 55% stake in Kechuang Rongxin for RMB 165 million in cash, becoming its controlling shareholder. Post-transfer, Kechuang Rongxin's performance, assets, and liabilities will be consolidated into ZHONGMIAO's financial statements, injecting new momentum into the company's revenue diversification and profit growth.

Kechuang Rongxin, now part of ZHONGMIAO's fintech ecosystem, is a seasoned service provider with nearly two decades of experience in financial technology. Since its establishment in 2004, the company has specialized in fintech and financial information services, focusing on RMB circulation management and clearing systems as its core business, providing professional software and data solutions to banking institutions. With robust technical capabilities and high-quality service, Kechuang Rongxin has built a strong client base, including major state-owned and regional commercial banks, maintaining an average annual profit of over RMB 30 million in the past six years.

As an ecosystem-based fintech enterprise under the Haier Group, ZHONGMIAO has consistently prioritized technological innovation as its core competitive advantage. In recent years, the company has increased investments in cutting-edge technologies such as AI, big data, and blockchain. While driving digital transformation in insurance services, it has successfully developed standardized tech products like intelligent claims processing and risk mitigation solutions, with its technical capabilities and scenario-based offerings gaining market validation.

In the first half of 2025, ZHONGMIAO reported revenue of RMB 114 million, up 28.4% year-on-year, and attributable profit of RMB 25.063 million, a 16.2% increase. This steady growth reflects market confidence and provides a solid foundation for strategic expansion.

ZHONGMIAO's long-term strategy centers on a differentiated "technology + scenario + ecosystem" model, enhancing user experience and actively expanding its fintech business ecosystem. To achieve this, the company has focused on precise investments in insurance technology and fintech, continuously refining its ecosystem through strategic acquisitions. "Strategic synergy" remains a key criterion in target selection, evaluating complementary strengths in technology, resources, and talent to achieve "1+1>2" integration value.

The partnership with Kechuang Rongxin exemplifies this synergy. ZHONGMIAO's expertise in AI risk control and big data analytics will integrate with Kechuang Rongxin's mature experience in banking system management, enabling joint development of cross-industry digital financial products such as risk management systems linking banking and insurance.

From a client resource perspective, Kechuang Rongxin's banking network provides ZHONGMIAO with new business scenarios, allowing expansion of risk management services to banks and related stakeholders. Meanwhile, ZHONGMIAO's insurance clients offer potential applications for Kechuang Rongxin's digital asset management systems. This mutual empowerment will unlock further market demand.

Amid China's financial sector modernization and domestic substitution initiatives, the fintech industry is experiencing historic opportunities. The People's Bank of China's "FinTech Development Plan (2025–2027)" targets over 85% digitalization in financial institutions by 2027, accelerating IT innovation adoption—aligning closely with ZHONGMIAO's strategy and creating policy-driven growth potential for its collaboration with Kechuang Rongxin.

Looking ahead, ZHONGMIAO will leverage policy support with Kechuang Rongxin to enhance R&D in fintech innovation products and drive adoption in financial institutions, supporting industry-wide digital transformation. Starting with this equity transfer, the company will further integrate technology, talent, and client resources to expand service scale, increase market share in fintech, and deliver stronger financial performance—rewarding investor trust and contributing to the sector's advancement.