Baotaileong: Transfer of controlling stake in subsidiary with a transaction price of 300 million yuan

Announcement of Baotailong: The company will transfer 55% equity of its holding subsidiary Jixi City Baotailong Investment Co., Ltd. to Heilongjiang Huiyu Energy Development Group Co., Ltd., and at the same time transfer the debt rights the company enjoys in Jixi Investment Co. The transaction price is RMB 154 million, and the debt rights transfer transaction price is RMB 146 million, totaling RMB 300 million. This transaction has been approved by the 24th meeting of the 6th Board of Directors of the company and does not require approval of the shareholders' meeting. After the transaction is completed, the company will no longer hold equity in Jixi Investment Co. This transaction is beneficial for the company to recover investments and receivables, optimize resource allocation and industrial layout, reduce asset management and operating costs, and is in line with the company's sustainable development goals.