Changyu Group: Plans to provide a loan of no more than RMB 70 million to its controlled subsidiary's subsidiary

Changyu Group announced that the company plans to use its own funds to provide a loan facility of no more than RMB 70 million to its controlled subsidiary's subsidiary, Shandong Guangyin Dikaka New Materials Co., Ltd., for the construction of its project with an annual output of 1,000 tons of nano-composite zirconia high-performance ceramic products. The loan term is 5 years from the date of approval by the board of directors and the signing of the agreement. The facility may be used on a revolving basis during its validity period, and the loan interest rate shall reference the then-current 1-year LPR and shall not be lower than the company's comprehensive debt financing cost. Because Dikaka New Materials' minority shareholder, First Rare Element, did not provide a loan on the same terms and in proportion to its capital contribution, this matter constitutes a related-party transaction, but does not constitute a major asset restructuring. This matter has been approved by the company's board of directors, with the related directors abstaining from voting, and does not need to be submitted to the shareholders' meeting for review.