Hengtong Co., Ltd.: Subsidiary plans to invest 500 million yuan to build a composite foil project.

Hengtong Corporation announced that its wholly-owned subsidiary, Hengtong Copper Foil, plans to establish the Hengtong High-end Precision Composite Foil Project in Deyang, Sichuan. The project will be constructed by its wholly-owned subsidiary, Hengtong Commercial, which will build the necessary infrastructure such as factory buildings. It is expected to have an annual production capacity of 45 million square meters of high-end copper-aluminum composite foil after full operation. The total investment is expected to be no more than 500 million yuan, and the funds will come from internal resources or self-raised funds. This matter has been approved by the board of directors, does not require a shareholders' meeting, and does not constitute a related party transaction or a major asset restructuring. However, the project does carry risks related to construction, implementation, and expected profits.