Huahong Technology: Increase capital by 20 million yuan for wholly-owned subsidiary.

Huahong Technology Announcement: In order to meet the business development needs of Beijing Huahong Recycling Resources Utilization Co., Ltd., the company will convert 20 million yuan of its accounts receivable from Beijing Huahong into capital increase for the company. After this capital increase, the registered capital of Beijing Huahong will increase from 80 million yuan to 100 million yuan, with the company still holding 100% equity in Beijing Huahong, making it a wholly-owned subsidiary. This capital increase aims to optimize its asset-liability structure, enhance market competitiveness, and strengthen profitability.