Guangdong Hec Technology Holding's subsidiary, Guangdong Hec Technology Holding Fluorine, intends to increase capital and expand its shareholding by introducing investors from Xingyin Investment.

Guangdong Hec Technology Holding (600673.SH) announced that its holding subsidiary, Ru Yuan Guangdong Hec Technology Holding Fluoride Co., Ltd. (referred to as "Guangdong Hec Technology Holding Fluoride"), plans to increase its registered capital by 1088.8889 million yuan. Xingyin Financial Asset Investment Co., Ltd. (referred to as "Xingyin Investment") will subscribe to the full amount of 700 million yuan. The company and its subsidiary, Ru Yuan Guangdong Hec Technology Holding Ferroalloy Plant, will waive their priority subscription rights for this capital increase. After this capital increase is completed, the company's direct and indirect shareholding in the target company will decrease from 100% to 96.9828%. The company will continue to be the controlling shareholder of the target company and will retain actual control over it. This transaction will help further strengthen the capital strength of Guangdong Hec Technology Holding Fluoride, optimize its capital structure, reduce its asset-liability ratio, and promote its sustainable high-quality development. It is in line with the company's development strategy and long-term interests, as well as benefiting all shareholders. After this capital increase, Guangdong Hec Technology Holding Fluoride will remain a subsidiary of the company and will not change the scope of the company's consolidated financial statements.