Xiang Fenghua: Plans to establish a holding subsidiary Xiangzhan New Materials with an investment of 6 million yuan.

Shang Fenghua announced that the company plans to invest 6 million RMB from its own funds to establish Sichuan Xiangzhan New Materials Technology Co., Ltd., holding a 60% stake. Xiangzhan New Materials will become a subsidiary of the company and will be included in the company's consolidated financial statements. Xiangzhan New Materials has a registered capital of 10 million RMB and its business scope includes graphite deep processing and related products. Partner Zhang Changzhen will contribute intangible assets and hold a 40% stake. This investment does not constitute a related party transaction or a major asset restructuring.