Note 1 — ORGANIZATION AND BUSINESS DESCRIPTION
Huachen AI Parking Management Technology Holding Co., Ltd (“Huachen” or the “Company”) is a company that was established under the laws of Cayman Islands as a holding company on September 30, 2021. Our main business operations are conducted through our subsidiaries in the People’s Republic of China. We are a technology company related to design, manufacture, sales, installation and maintenance of intelligent cubic parking garage and equipment.
As of June 30, 2025, the Company’s subsidiaries are as follows:
| Percentage of | ||||||||
| direct/indirect | ||||||||
| Date of | Jurisdiction of | Economic | ||||||
| Subsidiaries | Incorporation | Formation | Ownership | |||||
| Hua Chen Intelligent Technology Co., Limited (“Huachen HK”) | December 22, 2021 | Hong Kong | 100.00 | % | ||||
| Huachen AI Technology (Zhejiang) Co., Ltd (“Hua Chen WFOE”) | October 18, 2022 | Zhejiang | 100.00 | % | ||||
| Zhejiang Huachen Technology Co., Ltd (“Zhejiang Hua Chen Tech”) | June 14, 2005 | Zhejiang | 90.02 | % | ||||
| Shanghai Tiandidaochuan Parking Equipment Manufacturing Co., Ltd (“Shanghai TD Manufacturing”) | February 11, 2004 | Shanghai | 74.63 | % | ||||
| Shanghai Tiandiricheng Parking Lots Management Co., Ltd (“Shanghai TD Parking”) | July 27, 2012 | Shanghai | 74.63 | % | ||||
| Zhejiang Tiandidaochuan Parking Equipment Co., Ltd (“Zhejiang TD Parking”) | November 7, 2017 | Zhejiang | 74.63 | % | ||||
| Shanghai Yufeng Information Technology Co., Ltd (“Shanghai Yufeng”) | November 16, 2016 | Shanghai | 74.63 | % | ||||
| Shanghai Tiandi Puji Parking Management Co., Ltd (“Shanghai TP Parking”) | April 1, 2015 | Shanghai | 74.63 | % | ||||
| Shanghai Tiandi Daochuan Parking Equipment Installation Co., Ltd (“Shanghai TD Installation”) | March 18, 2008 | Shanghai | 74.63 | % | ||||
| Zhejiang Xinfeng Trade Co., Ltd (“Zhejiang Xinfeng”) | February 7, 2024 | Zhejiang | 74.63 | % | ||||
The Company, through a series of transactions which are accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent of its subsidiaries. The reorganization involved: the formation of the Company’s wholly-owned subsidiary-Huachen HK and Huachen HK’s wholly owned subsidiary — Hua Chen WFOE.
Before and after the reorganization, the Company, together with its subsidiaries, is effectively controlled by the same shareholders, and therefore the reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.