Progress Announcement on Non-Operating Fund Occupation by Controlling Shareholder and Risk Warning of Possible Delisting

Special Reminder:

1. Given the non-operating fund occupation by the company and the negative opinion in the internal control audit report for 2023, according to Article 9.8.1 (1) and (4) and Article 9.8.2 of the Shenzhen Stock Exchange Listing Rules, the company's stock trading has been subject to "other risk warnings" since July 9, 2024. The stock names have been changed to "ST Dongxu Electric, ST Dongxu B," while the stock codes remain "000413, 200413."
2. According to Article 9.4.4 (2) of the Shenzhen Stock Exchange Listing Rules, after disclosing the risk warning announcement as per Article 9.4.4 (1)(6), the company must disclose relevant progress and risk warning announcements at least once every ten trading days until the situation is resolved or the stock trading is subject to delisting risk warnings by the Shenzhen Stock Exchange. Investors are reminded to pay attention to investment risks.

1. Non-Operating Fund Occupation by Controlling Shareholder

Dongxu Electric Technology Co., Ltd. (hereinafter referred to as "Dongxu Electric" or "the Company") has a non-operating fund occupation situation by its controlling shareholder, Dongxu Group Co., Ltd. (hereinafter referred to as "Dongxu Group"). As of December 31, 2023, the total non-operating fund occupation by Dongxu Group amounts to 9.595 billion yuan. The accounting firm ZTE Huaguang Certified Public Accountants (Special General Partnership) issued a qualified opinion with an emphasis of matter paragraph on the company's 2023 annual financial statements and provided a special explanation regarding the fund occupation situation (ZTE Huaguang Audit Special Document [2024] No. 105011). According to Article 9.4.4 (2) of the Shenzhen Stock Exchange Listing Rules, after disclosing the risk warning announcement as per Article 9.4.4 (1)(6), the company must disclose relevant progress and risk warning announcements at least once every ten trading days until the situation is resolved or the stock trading is subject to delisting risk warnings by the Shenzhen Stock Exchange. Therefore, the company announces the following progress regarding the non-operating fund occupation by Dongxu Group: The company and all members of the board guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.