Yatong Corporation: Wholly-owned subsidiary plans to reduce capital by 600 million yuan for its controlling subsidiary.

Yatong Corporation announced that its wholly-owned subsidiary Yatong Real Estate and Changxing Real Estate plan to jointly reduce the capital of Changhai Xingtong, a joint venture, by 600 million yuan, with Yatong Real Estate reducing by 360 million yuan and Changxing Real Estate reducing by 240 million yuan. After the reduction of capital, the registered capital of Changhai Xingtong will decrease from 1.118 billion yuan to 518 million yuan, with the shareholding ratio remaining unchanged. The project of Changhai Xingtong responsible for the collection and resettlement of houses has been completed, and this capital reduction is aimed at revitalizing surplus funds and improving the efficiency of fund utilization. The board of directors of the company approved the capital reduction proposal on January 27, 2026, and this matter needs to be submitted to the shareholders' meeting for approval, which does not constitute a related party transaction or a major asset restructuring.