Howe Group: Intends to increase capital of Rongxin Semiconductor by RMB 1 billion in cash.

Hawthorn Group Announcement: The company plans to increase its capital by 1 billion yuan in cash to hold approximately 31.8 million yuan of the registered capital of Rongxin Semiconductor Co., Ltd. Calculated based on the current round of capital increase of 4 billion yuan, the company is expected to hold approximately 5.88% of its registered capital after this capital increase is completed.