Huafa Co., Ltd. announced that since the real estate development business under the holding subsidiary Xi'an Huaqu Lijun Real Estate Co., Ltd. has basically been completed, in order to improve the efficiency of the overall use of capital, the company decided to reduce its registered capital by 1,712 billion yuan. After the capital reduction, Huaqu Lijun's registered capital was 50 million yuan, and the company's shareholding ratio remained unchanged. The capital reduction was reviewed and approved by the 15th meeting of the 11th board of directors of the company. There is no need to submit it to the shareholders' meeting for consideration, it does not constitute a related transaction or major asset restructuring, it will not change Huqu Lijun's share structure, it will not cause changes in the scope of the company's consolidated statements, and it will not have a significant impact on the company's current profit and loss.

Huafa Co., Ltd. announced that since the real estate development business under the holding subsidiary Xi'an Huaqu Lijun Real Estate Co., Ltd. has basically been completed, in order to improve the efficiency of the overall use of capital, the company decided to reduce its registered capital by 1,712 billion yuan. After the capital reduction, Huaqu Lijun's registered capital was 50 million yuan, and the company's shareholding ratio remained unchanged. The capital reduction was reviewed and approved by the 15th meeting of the 11th board of directors of the company. There is no need to submit it to the shareholders' meeting for consideration, it does not constitute a related transaction or major asset restructuring, it will not change Huqu Lijun's share structure, it will not cause changes in the scope of the company's consolidated statements, and it will not have a significant impact on the company's current profit and loss.