Huali Holdings: Shareholder Anhui Hongdian intends to transfer 5.10% of shares by agreement.

Huali Co., Ltd. announced that its shareholder Anhui Hongdian Capital Management Partnership (Limited Partnership), which holds a 25.00% stake in the company, intends to transfer 13.7025 million shares of the company, representing 5.10% of the company's total share capital, to Hainan Junhe Enterprise Management Partnership (Limited Partnership) by way of negotiated transfer at a price of RMB 14.57 per share due to the need to repay part of its bank loans, with the total transfer price amounting to approximately RMB 199 million. After this equity change, Anhui Hongdian's shareholding ratio will decrease to 19.90%, and it will not result in a change of the company's controlling shareholder or actual controller. As of the date of signing of this report, Anhui Hongdian has no other plans to increase or decrease its holdings within the next 12 months.