Hongfa Group: The shareholding ratio of the controlling shareholder Yage Chuangye Investment Co., Ltd. decreased from 27.67% to 26.94%.

Hongfa Group announced that from November 3, 2020 to November 19, 2025, the controlling shareholder Ge Chuangye Investment Co., Ltd. reduced its shareholding in the company by 2.3952 million shares through block trading. At the same time, due to the conversion of "Hongfa Convertible Bonds" and the implementation of a share capital increase plan, the total share capital increased, resulting in Ge Chuangye Investment Co., Ltd.'s shareholding ratio decreasing from 27.67% to 26.94%, with the equity change reaching the 1% threshold. This equity change is a historical reduction of the company's shares by Ge Investment, and the passive dilution caused by the conversion of "Hongfa Convertible Bonds" does not trigger a tender offer, does not lead to a change in the company's controlling shareholder or the actual controlling person, and will not affect the company's governance structure and ongoing operations.