Xuzhou Haotong: Plans to acquire 2% equity of a subsidiary for 6.1 million yuan to strengthen control.

Xuzhou Haotong New Materials Technology Co., Ltd. Announcement: In order to strengthen the operational control of its holding subsidiary Jiangxi Haobo, the Company plans to use its own funds of 6.109549 million yuan to acquire 2% equity of Haobo held by Shanghai Jintang United, corresponding to a subscribed registered capital of 9.4 million yuan and a paid-in capital of 5.3 million yuan. This transaction constitutes a related party transaction but does not constitute a major asset restructuring and does not require shareholder approval. After the transaction, the Company's shareholding in Haobo will increase from 72% to 74%. The transfer pricing is reasonable, and the agreement requires the Company to make payment within 10 working days. The Company will assume the 4.1 million yuan unpaid contribution obligation of Jintang United and cooperate in handling industrial and commercial changes within 15 working days of receipt. This transaction is beneficial for improving the Company's decision-making efficiency and overall competitiveness.