Luther Environment: Increase capital and issue new shares to introduce investors as full-funded subsidiary.

Lude Environmental Announcement: Wholly-owned subsidiary, Bozhou Lude, plans to implement capital increase and share expansion and introduce investors. Bozhou Science and Technology Investment Fund Limited Partnership contributes 20 million RMB in cash to subscribe for 20 million RMB of newly increased registered capital in Bozhou Lude; Bozhou Life and Health Industry Fund Limited Partnership contributes 10 million RMB in cash to subscribe for 10 million RMB of newly increased registered capital in Bozhou Lude. After the capital increase, Bozhou Science and Technology Investment Fund holds 18.18% of the shares in Bozhou Lude, Bozhou Life and Health Fund holds 9.09% of the shares, and the company holds 72.73% of the shares. This capital increase is beneficial for supplementing working capital for Bozhou Lude, improving the asset-liability structure, deepening the cooperation on distiller's grains raw materials with Anhui Gujing Gongjiu and local liquor enterprises in Bozhou, and exploring the cattle farming market in the Central Plains region.