Progress Announcement on Other Risk Warnings Implemented for Company Stock

Special Risk Reminder

1. Guangdong Huatie Tongda High-speed Equipment Co., Ltd. (hereinafter referred to as "the Company") has had its stock suspended since July 26, 2024, after its closing price fell below 1 yuan for 20 consecutive trading days from April 22, 2024, to July 25, 2024, triggering the delisting conditions as per Article 9.2.1 of the Shenzhen Stock Exchange Listing Rules. Investors are advised to invest rationally and pay attention to risks.
2. Due to non-operating fund occupation by the controlling shareholder and other related parties, the Company received a negative opinion in its 2022 internal control audit report. Consequently, the stock was placed under other risk warnings starting May 5, 2023, and the stock abbreviation was changed from "Huatie Co." to "ST Huatie."
3. On May 10, 2024, the Company received an Administrative Penalty Decision from the Guangdong Regulatory Bureau of the China Securities Regulatory Commission (CSRC), which led to additional risk warnings being implemented. On July 24, 2024, due to the freezing of major bank accounts of the Company and its subsidiaries, further risk warnings were applied.
4. The Company and all members of the Board guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
5. According to the Order for Correction issued in 2022, if the Company fails to recover the occupied funds within six months, the Shenzhen Stock Exchange will suspend trading of the Company's stock. If the rectification is not completed within two months after suspension, a delisting risk warning will be issued, and if not completed within four months, the stock will be delisted. The Company must recover all occupied funds from the controlling shareholder and related parties. The disposal of assets and fundraising by the controlling shareholder and related parties will take time, and there is uncertainty regarding the complete repayment of occupied funds. Investors are advised to invest rationally and pay attention to risks.