Dongcai Technology: There have been no significant fluctuations in production costs and product sales.

Dongcai Technology announced that the deviation value of the closing price of the company's stock has accumulated by more than 20% for three consecutive trading days, which is considered abnormal stock trading volatility. After self-examination, it was confirmed that the company's production and operation are currently normal, and there have been no major adjustments in the market environment or industry policies. There have been no significant fluctuations in production costs or product sales. There are no major issues involving the company or its controlling shareholders that could affect the abnormal stock trading volatility, and there are no major issues that should be disclosed but have not been disclosed. Xiong Haitao, the actual controller and vice chairman of the company, has been placed under coercive measures and is currently in detention as part of an investigation by the Sichuan Provincial Commission for Discipline Inspection. The cost of raw materials for the company's main products is relatively high, and their purchase prices are closely related to international crude oil prices. Fluctuations in the prices of key raw materials may affect the stability of the company's operating performance.