Henghe Group: A joint venture between its holding subsidiary Xinzhigang and Huapei Power is established with a registered capital of 22.29 million yuan.

Henghe Corporation Announcement: The holding subsidiary Xinzhigan and Huapei Power jointly established a company with a registered capital of 22.29 million yuan. Huapei Power contributed 15.603 million yuan in currency, accounting for 70%; Xinzhigan contributed 6.687 million yuan in non-monetary assets, accounting for 30%. The joint venture company's main business is the research, development, production, and sales of sensor assemblies and glass micro-fused core bodies. This investment does not constitute a major asset reorganization, does not involve new business, and does not involve private equity investment activities.