SERES (09927) announced that on February 8, 2026, the company entered into a Cooperation Agreement with the People's Government of Shapingba District, Chongqing. Under the agreement, SERES will contribute by spinning off certain existing assets related to its Bluegem auto business to establish a target company. The Shapingba District Government will form or introduce a limited partnership enterprise (or fund) to join other investors and the management team in making a cash capital increase into the target company. Following the capital contributions, the government's special purpose vehicle will hold approximately 33.5% of the target company, other investors will hold about 18.5%, SERES and its designated entities will hold approximately 32%, and an employee stock ownership plan will be established for the target company holding about 16%. The board of directors of the target company will consist of five members, with SERES appointing one director. This cooperative initiative to divest existing assets is intended to optimize the company's asset structure, align with its strategic development goals, and is beneficial for its long-term growth. Upon completion of the capital injections, SERES will become a minority shareholder in the target company and will not hold controlling rights. The impact of this agreement on the company's operational performance remains uncertain at this time.