Jiaxing Qihuan New Materials Co., Ltd. agreed to acquire Jiaxing Fengtai New Material Co.,Ltd. from Ningbo Xianfeng New Material Co.,Ltd (SZSE:300163) for CNY 0 on March 20, 2025. As of February 28, 2025, the Target Company's Book Net Assets is CNY 54,754,157.38 Less: Net Value of Fixed Assets is CNY 23,627,448.93. The book net value of fixed assets is the book value of the second plot of land sold. All parties will perform according to the land sale agreement and its supplementary agreements. The listed company will directly enjoy the asset disposal proceeds. Less: Transfer Price of the First Plot of Land Sold Balance is CNY 16,605,849.00 According to the supplementary agreement of the asset sale agreement for the first plot of land, the balance of the transfer price will be paid directly to the listed company. Therefore, it is deducted from the transaction price. Less: Intercompany Transactions between Party A and its Subsidiaries and the Target Company is CNY 17,755,209.83 The accounts payable and other payables of Party A's subsidiaries to the target company are settled together in this transaction. Basic Transaction Price is CNY -3,234,350.38, Given that the basic transaction price is negative, the parties have agreed, after negotiation, to set the final equity transaction price at CNY 0. According to the provisions of this agreement, the equity transaction price is CNY 0, and Qihuan New Materials is not required to pay any consideration.

As of February 28, 2025, Jiaxing Fengtai New Material Co.,Ltd. reported total common equity of CNY 54.75 million.

The transaction is subject to approval of merger agreement by target board. The deal has been approved by the board.