Orchid Technology Innovation: Shanxi Yamei Daning Energy Co., Ltd. Suspends Production.

Orchid Innovation Group Announcement: Recently, we have received a report from our equity-partnered subsidiary Shanxi Yamei Daning Energy Co., Ltd. regarding the safety measures taken during the self-imposed production stoppage. As the business license and coal production capacity declaration are set to expire on May 12, 2025, Yamei Daning has voluntarily ceased production, with the exact resumption date yet to be determined. Yamei Daning is mainly engaged in coal production and sales, with an annual production capacity of 4 million tons of coal and a registered capital of 53.6 million US dollars. Due to disputes over the agreed cooperation and operating period in the "Shanxi Yamei Daning Energy Co., Ltd. Cooperative Operating Agreement," Yamei Daning has applied to the Singapore International Arbitration Centre for arbitration, seeking an extension of the cooperation and operating period with the partner company, as well as proposing appropriate economic compensation. The company is currently in negotiations with Yamei Daning and Jincheng Coal Transport, striving to reach a timely resolution.