Longquan Group: It is planned to establish a wholly owned subsidiary named Shandong Longquan Pipeline Co., Ltd. with its own funds, with a registered capital of RMB 50 million.

Longquan Group Announcement: Based on the current business development needs of the company, it is proposed to invest in the establishment of a wholly-owned subsidiary in Zibo City, Shandong Province with its own funds, with a registered capital of 50 million yuan.