North Element Group: Shareholder Hengyuan Investment plans to reduce its holdings by no more than 2%.

North Element Group announcement, as of the date of this announcement, Shaanxi Hengyuan Investment Group Co., Ltd., a shareholder holding more than 5%, holds 979 million shares of the company, accounting for 24.65%; acting in concert, Sun Junliang holds 93.04 million shares, accounting for 2.34%. Hengyuan Investment plans to reduce its shareholding by no more than 79.44 million shares through block trades on the Shanghai Stock Exchange within 3 months after the disclosure date, not exceeding 2% of the total share capital of the company. The total number of shares sold within any consecutive 90 days shall not exceed 2% of the total share capital, and the selling price will be determined based on the market price.