Wanda Development announced that the company is planning to acquire no less than a 51% stake in Source Photonics Holdings (Cayman) Limited (“Source Photonics”). After the acquisition is completed, the company will hold a controlling stake in Source Photonics. Preliminary calculations indicate that this transaction will constitute a major asset restructuring. While signing the framework agreement for acquiring control of Source Photonics, the company also signed an “Convertible Bond Investment Agreement” with its wholly-owned subsidiary and Source Photonics’ domestic subsidiary. The company and Source Photonics have agreed to sign a “Purchase Agreement for Preferred Stock Warrants of Source Photonics” to achieve the purpose of D-round investment and financing for Source Photonics. The company plans to initially provide RMB 50 million equivalent convertible bonds to Source Chengdu. After completing the relevant overseas investment procedures, based on an estimated valuation of USD 620 million before investment (i.e., a subscription price of USD 2.6179 per share), the convertible bond loan will be converted into equity investment funds by the company in Source Photonics. Through its controlled subsidiaries, Source Photonics mainly engages in its core business, which includes optical chips, optical components, and optical modules. It has mass-produced various optical communication chips used in self-produced different transmission rate optical module products and is a leading global supplier of optoelectronic components for optical communications.