Shagang Group: Intends to purchase 70% of the equity of Jinghua Electronics held by Shenye Pengji in cash.

Announcement of Shahe Stock Co., Ltd., the company intends to purchase 70% of the equity of Shenzhen Jinghua Display Electronics Co., Ltd. held by Shenye Pengji Limited Company in cash. After the completion of this transaction, Jinghua Electronics will become a subsidiary of the company and be included in the company's consolidated financial statements. This transaction is still in the planning stage, and the parties to the transaction have not yet signed a formal agreement. The "Letter of Intent for Cash Purchase of Assets" signed this time is an intention agreement of the parties to cooperate, and the specific transaction plan still needs further negotiation, promotion, and implementation. The signing of the formal agreement will still need to comply with the relevant regulations of major asset restructuring, perform necessary decision-making procedures, and approval procedures. There is still uncertainty as to whether cooperation can be reached and a formal agreement can be signed.