Peng Sai signed a transaction agreement to acquire remaining 10% stake in Andes New Energy Technology (Shanghai) Co., Ltd. from Milkyway Chemical Supply Chain Service Co., Ltd. (SHSE:603713) for CNY 8.8 million on December 22, 2022. Peng Sai shall pay Milkyway Chemical Supply Chain Service the equity transfer payment of CNY 8,780,505 before December 26, 2022. As of September 30, 2022, Andes New Energy Technology (Shanghai) Co., Ltd. reported total assets of CNY10.4 million and total owner's equity of CNY 5.1 million.

According to relevant regulations such as the "Stock Listing Rules of Shanghai Stock Exchange", "Company Related Transaction Control and Decision-Making System", "Articles of Association" and other relevant regulations, this transaction does not need to be submitted to the company's shareholders' meeting for review. The 17th meeting of the third board of directors of the company reviewed and approved this transaction with 7 votes in favor, 0 votes against, and 0 abstentions.