Progress Announcement on the Repurchase of Company Shares for Cancellation

Xugong Group Engineering Machinery Co., Ltd. (hereinafter referred to as "Xugong Machinery" or "the Company") guarantees that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions. The Company held the 32nd meeting of the 9th Board of Directors on April 26, 2025, and the 2024 Annual General Meeting on May 27, 2025, where the proposal for the repurchase of company shares for cancellation was approved. Based on confidence in future development and recognition of the company's value, to protect the interests of investors, enhance investor confidence, and improve the company's image in the capital market, the Company plans to repurchase its shares through the secondary market using its own funds. The repurchased shares will be used to reduce the company's registered capital and will be cancelled within ten days from the completion of the repurchase. The total amount for the repurchase will not exceed RMB 600 million (inclusive) and not be less than RMB 300 million (inclusive), with a repurchase price not exceeding RMB 13 per share (inclusive). The specific number of shares repurchased will be based on the actual number at the end of the repurchase period. The implementation period for the share repurchase will not exceed twelve months from the date the shareholders' meeting approves this repurchase plan. For sp