Ningbo Huaxiang: Wholly-owned subsidiary Huaxiang Qiyuan plans to jointly invest 200 million yuan with Fuhao Stock and others to establish a joint venture company.

Ningbo Huaxiang Announcement: In order to expand opportunities in emerging industries, the wholly-owned subsidiary Huaxiang Qiyuan intends to jointly invest with Fuao Group, Fwei Group, and Qizhi Innovation Center to establish a joint venture company focusing on the research and development, design, manufacturing, sales, and after-sales service of related components. The registered capital of the joint venture company is 200 million yuan, with Fuao Group contributing 102 million yuan and holding 51% of the shares; Fwei Group contributing 58 million yuan and holding 29% of the shares; Huaxiang Qiyuan contributing 30 million yuan and holding 15% of the shares; and Qizhi Innovation Center contributing 10 million yuan and holding 5% of the shares. This transaction constitutes a related-party transaction, with a total amount of related-party transactions of 10.22 million yuan. The board of directors has reviewed and approved the relevant proposal, no shareholder meeting approval is required, and it does not constitute a major asset restructuring.