Northern Long Dragon: Termination of Issuance of Shares and Payment of Cash for Purchase of Assets and Increase in Capitalization

Northern Long Dragon Announcement: The company will hold a board of directors and supervisors meeting on July 22, 2025 to approve the resolution to terminate the issuance of shares and to purchase assets of Henan Zhongcheng Composite Materials Co., Ltd. with cash injection. The company originally planned to acquire 51% equity of Henan Zhongcheng with 102 million RMB in cash and to buy an additional 9% equity from Suo Jinshan, resulting in a total ownership of 60% after the transaction. The reason for termination is due to changes in market environment and the operation of the target company, as well as the difference in financial controls between the target company and the requirements of the listed company. The company believes that terminating the restructuring will minimize the impact on the company, allowing for normal production and operation with steady progress in various business operations.