SOE (the “Company”) today announced the official establishment of its wholly-owned subsidiary, Chunzhen Technology, on February 26, 2026. The new subsidiary focuses on the research and development, production, and sales of seamless stainless steel bellows, marking another important milestone for the Company in the field of key components.

Amid the surging demand for artificial intelligence (AI) computing, server thermal management has become a critical technological focus. 316L stainless steel bellows feature zero leakage, high pressure resistance, and excellent corrosion resistance, making them an essential component in high-reliability liquid cooling systems. Leveraging its advanced manufacturing processes and technical expertise, the Company is committed to providing stable and efficient thermal solutions for major global AI server manufacturers.

At present, Chunzhen Technology’s first manufacturing base in Jiaxing, China, has officially commenced operations. Following customer qualification and acceptance, the facility is expected to begin mass production and customer deliveries in August 2026.

Looking ahead, the Company will continue evaluating the establishment of new production lines in Taiwan, Southeast Asia, and North America based on market demand and overall capacity planning. This will strengthen the resilience of the global supply chain and meet customers’ expectations for localized supply and timely delivery.