A major asset restructuring transaction plan is being further negotiated.

Wanxiang Qianchao announced on May 11th that the company's stock price had deviated by 20.94% on May 8th and May 9th, for two consecutive trading days, which is considered abnormal fluctuation in stock trading. The company plans to acquire 100% equity of Wanxiang America Corp. through issuing shares and paying cash, and to raise matching funds by issuing shares to no more than 35 specific investors. This transaction constitutes a related party transaction and is expected to be a major asset restructuring, but not a restructuring for listing. Currently, the company and relevant parties are actively progressing with the overall process of this transaction. Due diligence, audits, evaluations, and other related tasks for this transaction are ongoing, the transaction plan is being further discussed, and formal transaction documents have not yet been signed by the parties involved.