Establish New Energy: Transfer part of the equity of a subsidiary and increase capital

Announcement of Lixin Energy Company: The company plans to transfer 49% equity of its wholly-owned subsidiaries, Lixin Comprehensive Energy Co., Ltd. in Hotan County, Lixin Comprehensive Energy Co., Ltd. in Pishan County, Lixin Comprehensive Energy Co., Ltd. in Hotan City, and Lixin Comprehensive Energy Co., Ltd. in Minfeng County, to the controlling shareholder Energy Group's wholly-owned subsidiary Beijiang Company, at transfer prices of 1.7109 million yuan, 489,000 yuan, 0 yuan, and 0 yuan respectively. After the equity transfer is completed, the four subsidiaries will increase their capital in the same proportion, with registered capital increasing to 194 million yuan, 240 million yuan, 59.551 million yuan, and 119 million yuan respectively. This transaction constitutes a related party transaction, but does not constitute a major asset restructuring.