Xinxiang Chemical Fiber: Company's state-owned construction land use rights to be reclaimed, some production lines suspended.

Xinxiang Chemical Fiber announced that the company's granted industrial land use right, located at the northwest corner of Muye Avenue and Genghuang Avenue with an area of approximately 98.85 mu, is proposed to be recovered with compensation by the Fengquan District Government of Xinxiang City. The company plans to sign a compensation agreement with the Fengquan District Government of Xinxiang City. The compensation for the land and above-ground attachments in the first phase totals RMB 51.2334 million. Subsequent agreements will be signed separately based on demolition progress, asset disposal, and acceptance inspection. In view of the aforementioned change in land use rights, the company has decided to suspend production at its North District biomass cellulose filament production line and its subsidiary Xinglu Technology starting from October 12, which is expected to reduce the company's operating revenue by approximately RMB 260 million and total profit by approximately RMB 40 million. Apart from the production lines suspended this time, the company's other main production facilities remain in normal operation.