Shenghong Technology announced in the morning that today, the company received a notice from Hongda Investment, the controlling shareholder of Shenghua Xinye and its co-operator Hong Kong Shenghong. Mr. Chen Tao transferred 39% of his shares in Shenghua Xinye and 35% of his shares in Hongda Investment to his spouse, Ms. Liu Chunlan, and signed a relevant share transfer agreement on this equity restructuring. After this shareholding restructuring, Chen Tao will hold 51% of Shenghua Xinye's shares, and her spouse Liu Chunlan will hold 49% of Shenghua Xinye's shares; Chen Tao will hold 35% of Hongda Investment's shares, and her spouse Liu Chunlan will hold 35% of Hongda Investment's shares. Meanwhile, Chen Tao, the actual controller of the company, and his spouse Liu Chunlan jointly signed the “Concerted Action Agreement”, agreeing that Liu Chunlan would act in accordance with Chen Tao's shares in Shenghong Technology and exercise voting rights in accordance with Chen Tao's opinions. This equity restructuring is an act of equity restructuring within the actual controller family. It does not involve changes in the company's shares held by the controlling shareholders and their co-actors, does not touch on the proposed acquisition, and does not cause changes in the controlling shareholders or actual controllers of the company.

Shenghong Technology announced in the morning that today, the company received a notice from Hongda Investment, the controlling shareholder of Shenghua Xinye and its co-operator Hong Kong Shenghong. Mr. Chen Tao transferred 39% of his shares in Shenghua Xinye and 35% of his shares in Hongda Investment to his spouse, Ms. Liu Chunlan, and signed a relevant share transfer agreement on this equity restructuring. After this shareholding restructuring, Chen Tao will hold 51% of Shenghua Xinye's shares, and her spouse Liu Chunlan will hold 49% of Shenghua Xinye's shares; Chen Tao will hold 35% of Hongda Investment's shares, and her spouse Liu Chunlan will hold 35% of Hongda Investment's shares. Meanwhile, Chen Tao, the actual controller of the company, and his spouse Liu Chunlan jointly signed the “Concerted Action Agreement”, agreeing that Liu Chunlan would act in accordance with Chen Tao's shares in Shenghong Technology and exercise voting rights in accordance with Chen Tao's opinions. This equity restructuring is an act of equity restructuring within the actual controller family. It does not involve changes in the company's shares held by the controlling shareholders and their co-actors, does not touch on the proposed acquisition, and does not cause changes in the controlling shareholders or actual controllers of the company.