Yuanxiang New Material: Huaxing Venture Capital plans to reduce its shareholding in the company by no more than 5.00%.

Far Xiang New Materials announcement, holding more than 5% of the shares, Fujian Huaxing Entrepreneurship Investment Co., Ltd. plans to reduce the company's shares by no more than 3.13 million shares, or 5.00% of the current total share capital of the company, through centralized bidding or block trading within 3 months after 15 trading days from the date of the announcement. Huaxing Chuangtou holds 4.70 million shares of the company, accounting for 7.52% of the total share capital of the company. The main reason for this reduction is the company's own capital needs. The reduction price will be determined based on market prices and trading methods. Huaxing Chuangtou is not a controlling shareholder or actual controller of the company, and the implementation of this reduction plan will not lead to a change in the company's control.