Sinopharmplans to use the oversubscribed funds not exceeding 34.3265 million yuan to purchase equity and increase capital

Xinxin New Material announced that the company plans to use the raised capital of 7.15 million yuan to acquire 55 million yuan worth of equity held by Xinjiang Jintu Hanchen Investment Partnership Enterprise in Fujian Zhongtan New Material Technology Co., Ltd.; the company also plans to use the raised capital of 5.85 million yuan to acquire 45 million yuan worth of equity held by Zhangzhou Gulei Port Economic Development Zone Xingsen Investment Partnership Enterprise in Fujian Zhongtan; based on the aforementioned equity transfers, the company plans to use the raised capital of 20.8265 million yuan to increase investment in the target companies. The total amount of raised capital to be used in the above transactions is 33.8265 million yuan. Prior to this transaction, the company did not hold any shares in the target companies. After this transaction, the company plans to acquire 51% of the equity in Fujian Zhongtan through the payment of the raised capital, gaining control of Fujian Zhongtan and consolidating it into the company's financial statements.