Development in Quzhou: Progress of the issuance of shares to purchase 95.4559% of the shares of Pioneer Electric Trading Co., Ltd.

The development announcement of Quzhou stated that the company plans to purchase 95.4559% of the shares of XianDao Electronic Technology held by 48 shareholders including Guangdong XianDao Rare Materials Co., Ltd. by issuing shares, and to raise funds from up to 35 specific investors, which is expected to constitute a related party transaction. The company's stock was suspended from trading on July 30, 2025, and resumed trading on August 13. As of the disclosure date of the announcement, due to the expiration of the financial data of the target company, the intermediary agency is conducting extended auditing and supplementary due diligence. The transaction still needs approval from the board of directors, shareholders' meeting, Shanghai Stock Exchange, and China Securities Regulatory Commission, and it is uncertain whether it can be approved and the timing.