Hubei Yihua has given up the preferential purchase right of 25% equity of Yihua Xinjiang.

On September 22, 2025, the 53rd meeting of the tenth board of directors of Hubei Yihua Chemical Co., Ltd. approved the resolution to waive the preemptive purchase right of 25% equity of its subsidiary Xinjiang Yihua. The company decided to transfer the 25% equity of Xinjiang Yihua held by its subsidiary Gao Invest to its wholly-owned subsidiary, Gao Investment Industry, as an internal non-cash transfer under the same control. This waiver of preemptive purchase right does not constitute a related party transaction or a major asset restructuring, and therefore does not require approval from the shareholders' meeting. As of December 31, 2024, Xinjiang Yihua had total assets of 2,034,312.61 million yuan and net assets of 759,132.19 million yuan; its operating income for January to December 2024 was 850,761.43 million yuan, with a net profit of 163,772.61 million yuan. This waiver will not affect the company's equity ratio, consolidation scope, financial performance, and will not harm the interests of the company and its shareholders.