Zongshen Power: Intends to transfer and issue shares to purchase the shares of a controlling subsidiary.

Zongshen Power announced that the fourth meeting of the twelfth board of directors approved the "Proposal on the Transfer of Equity of Holding Subsidiaries and the Issuance of Shares by Wholly-owned Subsidiaries to Purchase the Equity of Holding Subsidiaries". In order to meet the needs of strategic planning and business development, it is planned to transfer the 3.3983% equity of Zongshen Hangfa held by the wholly-owned subsidiary Chongqing Tuoyuan Power Machinery Co., Ltd., and at the same time, the wholly-owned subsidiary Chongqing Chenyu Technology Co., Ltd. will purchase 58.3975% of the shares held by some Zongshen Hangfa shareholders, including the company, by issuing shares. After the completion of this transaction, the company's consolidated financial statements will remain unchanged.