Town Yang Development: Planning and stock swap absorption merger with Zhejiang HuHangNing, and the transaction work continues to progress.

The development announcement of Zhenyang stated that the company is planning to issue A-shares to all shareholders from Zhejiang, Shanghai, Hangzhou, and Ningbo for the purpose of share exchange and absorption merger. The company's A-shares, convertible bonds, and convertible stocks will be suspended from trading starting on August 20, 2025, and will resume trading on September 3. Since the disclosure of the proposal, relevant parties have been actively working on it, and as of January 28, 2026, due diligence, auditing, and valuation work has been ongoing. The transaction proposal still needs to be reviewed by the company's board of directors, approved by the shareholders' meeting, and obtain the necessary approvals, permits, or consents, with uncertainties involved.