Hongsheng Huayuan: The controlling shareholder and its concerted actors plan to collectively reduce their shareholding by no more than 1%.

Hongsheng Huayuan announced that as of the disclosure date of the announcement, the controlling shareholder Guoxin Jianyuan and its concerted action person, Jianxin Investment, collectively hold 477,696,444 shares, accounting for 17.86% of the total share capital. Due to their own operational development needs, within 3 months after the expiration of 15 trading days from the date of the announcement, Guoxin Jianyuan plans to reduce its holdings by up to 20,063,663 shares through centralized bidding, accounting for 0.75% of the total share capital; Jianxin Investment plans to reduce its holdings by up to 6,687,887 shares, accounting for 0.25%. The two parties plan to collectively reduce their holdings by up to 26,751,550 shares, not exceeding 1% of the total share capital. The actual amount and price of the reduction are uncertain and will not have a significant impact on corporate governance and operations.