Sanfang Alley establishes a wholly-owned subsidiary with an investment of 100 million yuan to develop its green technology business.

Jiangsu Sanfangxiang Jucai Co., Ltd. Announcement: In order to meet the needs of business development, the company has invested 100 million yuan in setting up Jiangyin Sanfangxiang Jucai Green Technology Co., Ltd. with its own funds, and holds 100% of its equity. This external investment has been approved by the 21st meeting of the 11th Board of Directors of the company, and does not constitute a related transaction or a major asset restructuring. The subsidiary is planned to engage in research and production of recycled materials, green chemical new materials, and other products, which are in line with the company's business plan and will be included in the consolidated financial statements with no significant impact on financial and operating results. However, this investment still needs to go through business registration, and may face risks such as macroeconomic, market, and technological uncertainties during operation, which the company will actively address.