Red Star Development: Intends to list and transfer 100% equity and debt of Wanshan Pengcheng, without conducting an audit evaluation.

Red Star Development Announcement: The company and its wholly-owned subsidiary, Guizhou Red Star Development Dalong Manganese Industry Co., Ltd., intend to publicly transfer all the equity and debt of its wholly-owned subsidiary Wan Mountain Pengcheng Mining Co., Ltd. The audit and evaluation work is yet to be carried out, and the base price of this public transfer transaction will be determined based on the asset evaluation result. The final actual transaction price will be fairly determined through public listing, open bidding, and other methods. This transaction has been approved by the fifth interim meeting of the ninth board of directors of the company. As of May 31, 2026, Wan Mountain Pengcheng still owes the company a principal and interest loan of 69.40 million yuan, owes Dalong Manganese Industry a loan and payment of 9.4099 million yuan, and owes the company's holding subsidiary Guizhou Songtao Red Star Electric Chemical Mining Co., Ltd. a loan of 500,000 yuan.