Huayang New Material: Received a lawsuit notification, being sued for joint payment of project funds amounting to 58.39 million yuan.

Huayang New Material announced that on August 12, 2026, it received a lawsuit notification from the People's Court of Pingding County, Shanxi Province. The plaintiff, Yangzhou Huitong Technology Co., Ltd., filed a construction contract dispute against Shanxi Huayang Biodegradable New Materials Co., Ltd. and named the biological new materials company and our company as co-defendants, requesting joint payment of project funds amounting to 58.39 million yuan, as well as overdue payment interest calculated at LPR starting from September 7, 2023. The case is currently in the first instance stage and has not yet been heard in court; thus, the company is unable to assess the impact on this period's profits and future profits. The company previously reviewed and approved the transfer of 100% equity of the biological new materials company to its controlling shareholder, Taiyuan Chemical Industry Group Co., Ltd., and the relevant equity transaction payment has been completed. The biological new materials company completed the industrial and commercial registration change procedures on July 16, 2026.