Huateo Co., Ltd.: Controlling subsidiary signs demolition compensation agreement, receives RMB 438 million in compensation.

Huatai Co., Ltd. announced that its controlling subsidiary Yiwu Huasheng Animal Husbandry Co., Ltd. signed a "Compensation Agreement" for enterprise demolition and relocation with the People's Government of Chi'an Town, Yiwu City. Due to major project planning needs, Huasheng Animal Husbandry's approximately 457.23 mu of factory buildings and ancillary structures located in Xiashuidui and other villages in Chi'an Town will be shut down and demolished, with total compensation amounting to RMB 438 million. This demolition is expected to increase the company's net profit by more than RMB 60 million, and the actual impact on the net profit for the year 2026 shall be subject to the audited confirmation results. The company has made reasonable arrangements for subsequent production and will not cause adverse effects on normal production and operations. This matter does not constitute a related-party transaction or a major asset restructuring, has been reviewed and approved by the company's board of directors, and does not need to be submitted to the shareholders' meeting for review.