Fangcheng Company: There is currently no situation of acquiring the Danish liquid cooling company Asetek.

On March 9th, Fangsheng Group released an investor relations activity record. Fangsheng Group stated that the mainstream solution for gas turbine inlet cooling is tube-fin heat exchangers. The company's plate-fin heat exchangers are not currently used in the gas turbine inlet cooling process. The company has not yet demonstrated whether plate-fin heat exchangers can be used in the waste heat utilization process of gas turbines. The company does not plan to expand its business with gas turbine manufacturers currently or in the short term. As of now, there is no situation where the company is acquiring the Danish liquid cooling company Asetek, and related reports are untrue. The company is actively promoting the acquisition of state-owned land use rights through public bidding in order to consider the construction of a project for the production base of energy-efficient heat exchangers, as the current site may not meet future business development needs and resources in the region are limited. Therefore, acquiring land is laying the foundation for the company's future development. The related project is still in the preliminary stage of verification.