Luoping Zinc Power Co., Ltd.: Related parties propose to increase capital of subsidiary by 130 million yuan, and the company will also increase capital to maintain controlling stake.

Loping Zinc Electricity announced that according to the agreement dated May 30, 2025, within 15 working days after the delivery, the designated county-owned state-owned enterprise will increase the capital of its wholly-owned subsidiary Fuzinc Agriculture by no less than 130 million yuan, and the company will also increase its capital and control, holding more than 51% of the shares. The board of directors approved the relevant plan on January 14, 2026. Yunnan Zhendong Industrial Group Co., Ltd. is the actual controller of the company's shareholder holding more than 5%, and will increase its capital by 130 million yuan, holding 49% of the shares; the company will increase its capital by 32.9593 million yuan, holding 51% of the shares. This transaction does not constitute a major restructuring, will not change the scope of the consolidated financial statements, the funds come from its own funds, and will not affect normal operations.