Zhongqi New Material: Shareholders Hainan Yuminghua and its concerted parties Xiong Hongwen plan to reduce their holdings of the company's shares by no more than 3%.

Zhongqi Xincai announced that the company's shareholder Hainan Yuming Huachuang Investment Co., Ltd. and its concerted action person Xiong Hongwen plan to reduce their holdings of the company's shares through centralized bidding and block trading in the next three months, with the total reduction not exceeding 3% of the company's total share capital excluding the shares in the repurchase special account. Among them, the reduction through centralized bidding shall not exceed 1%, and the reduction through block trading shall not exceed 2%. The reduction period is within three months after fifteen trading days from the date of the announcement. The reason for the reduction is the company's business arrangement and stability of controlling rights.