Huayang New Materials: The sale of 100% equity of the wholly-owned subsidiary has been completed, and the transfer price is 1 yuan.

Huayang New Materials Announcement: The company previously disclosed that it intended to transfer 100% equity of its wholly-owned subsidiary, Shanxi Huayang Bio-degradable Materials Co., Ltd., through a non-public agreement to the controlling shareholder Taiyuan Chemical Industry Group Co., Ltd. The transfer price is 1 yuan. Recently, the Bio New Materials Company has completed the equity commercial change registration procedures and the company no longer holds any equity in it. At the same time, the Bio New Materials Company has fully repaid its company loans and interest, Taihua Group has provided counter guarantees for the continued related party guarantees. The equity transfer has been completed.