Donghu High-tech Park: Termination of Equity Acquisition Transaction

Donghu High-tech Announcement: The company has decided to terminate the equity acquisition. On November 7, 2024, the company signed an "Equity Acquisition Intention Agreement" with the actual controller of Hubei Proge Technology Group Co., Ltd., intending to acquire the controlling rights of the target company in cash subject to the satisfaction of preconditions and terms. After signing the "Intention Agreement", the company organized a professional team and hired intermediary agencies to conduct a comprehensive due diligence on the target company. Due to the failure to meet the preconditions and terms stipulated in the "Intention Agreement", the parties could not reach a consensus on key terms. After friendly negotiations, the company decided to terminate the acquisition. The "Intention Agreement" is only a preliminary intention agreement of the parties' willingness to cooperate, reached through friendly negotiations. The parties have not signed a formal equity acquisition agreement and the company has not paid any amount. The parties involved in the transaction do not need to bear any responsibility for the termination of the transaction, which will not have any adverse impact on the company's current operating performance and financial condition, nor will it have a significant impact on the company's current business and operational development. There is no situation that would harm the interests of the company and all shareholders.