Baiao Chemical announced that since the holding subsidiary Xinhuilian's 2024 performance promise was not met, Liu Hongjun, the management shareholder and former actual controller of Xinhuilian, should reimburse the company's wholly-owned subsidiary Xinhuilian 3.8582% of Xinhuilian's shares, corresponding to the registered capital of RMB 5,0663,900. The source of shares is shares held by Shanghai Xinrongda Enterprise Management Partnership. The investment has been paid, and there is no right burden. As of the disclosure date of the announcement, the relevant internal review procedures have been completed. Xinhuilian has recorded in the shareholder register that Xinaowei compensates the actual equity holders, and that all shareholders' rights are owned by Xinaohua. Currently, the registration of commercial and commercial changes has not yet been completed.

Baiao Chemical announced that since the holding subsidiary Xinhuilian's 2024 performance promise was not met, Liu Hongjun, the management shareholder and former actual controller of Xinhuilian, should reimburse the company's wholly-owned subsidiary Xinhuilian 3.8582% of Xinhuilian's shares, corresponding to the registered capital of RMB 5,0663,900. The source of shares is shares held by Shanghai Xinrongda Enterprise Management Partnership. The investment has been paid, and there is no right burden. As of the disclosure date of the announcement, the relevant internal review procedures have been completed. Xinhuilian has recorded in the shareholder register that Xinaowei compensates the actual equity holders, and that all shareholders' rights are owned by Xinaohua. Currently, the registration of commercial and commercial changes has not yet been completed.