: Proposed $50 million sale of subsidiary shares and adjustment of licensing agreement.

Huada Intelligent Manufacturing announced that its wholly-owned subsidiary, MGI R&D HK, plans to sell 100% equity of its wholly-owned subsidiary, CGI, to Swiss Rockets for approximately $50 million. The final transaction price will be subject to the delivery conditions. At the same time, based on the original "Authorization License Agreement," the company plans to additionally grant paid authorization of StandardMPS sequencing technology and general sequencing technology to Swiss Rockets. Upon normal performance until the exclusive authorization period expires, the company will receive no less than $120 million in total authorization fees. This transaction has been approved by the board of directors and is still pending approval by the shareholders' meeting. The transaction carries risks such as the effectiveness, termination, counterparty default, and exchange rate fluctuations.