Hengdian Group Dongci Co., Ltd. (hereinafter referred to as "the Company") announces the following regarding the increase of expected daily related party transaction quota:
I. Overview of Daily Related Party Transactions
(1) Overview of Related Party Transactions
The proposal for the expected daily related party transactions for 2025 was approved at the 16th meeting of the 9th Board of Directors held on December 12, 2024, and subsequently ratified at the 3rd extraordinary general meeting of shareholders in 2024. The proposal for the increase in expected daily related party transaction quota was approved at the 21st meeting of the 9th Board of Directors held on April 18, 2025. Due to the operational needs of the Company and based on the actual related party transactions from January to July 2025, it is estimated that the Company will increase the transaction quota with related parties by 40.6 million yuan.
(2) Review Procedures
The proposal for the increase in expected daily related party transaction quota was reviewed at the 23rd meeting of the 9th Board of Directors held on August 19, 2025. The independent directors held a special meeting to review this related party transaction and expressed their opinions, which were agreed upon by all independent directors. According to the relevant laws and regulations, this expected daily related party transaction matter is within the approval authority of the Board of Directors and does not require submission to the shareholders' meeting for approval.
(3) Expected Types and Amounts of Related Party Transactions
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.
| Related Party Transaction Type | Related Party | Transaction Content | Pricing Principle | Expected Amount for 2025 | Amount Incurred as of July 31, 2025 | Expected Increase for 2025 |
|---|---|---|---|---|---|---|
| Procurement of Fuel | Dongyang Gas Co., Ltd. | Procurement of fuel | Market price | 9,800.00 | 6,029.64 | 1,000.00 |
| Subtotal | 9,800.00 | 6,029.64 | 1,000.00 | |||
| Procurement of Products, Processing, Leasing, etc. | Hengdian Group Dongci Co., Ltd. | Products, leasing | Market price | - | 11.68 | 300.00 |
| Zhejiang Dongci Hutian Magnetic Industry Co., Ltd. | Products | Market price | 900.00 | 522.84 | 300.00 | |
| Subtotal | 900.00 | 534.52 | 600.00 | |||
| Sales of Products, Processing, Leasing, etc. | Zhejiang Dongyang Dongci Rare Earth Co., Ltd. | Processing, sales, leasing, providing services | Market price | 1,300.00 | 1,051.89 | 800.00 |
| Zhejiang Dongci Hutian Magnetic Industry Co., Ltd. | Sales of products | Market price | 750.00 | 474.89 | 200.00 | |
| Zhejiang Hengdian Debang Import and Export Co., Ltd. | Sales of products | Market price | - | 150.86 | 400.00 | |
| Subtotal | 2,050.00 | 1,677.64 | 1,400.00 | |||
| Acceptance of Services | Ningbo Magnetic Materials Application Technology Innovation Center Co., Ltd. | Acceptance of services | Market price | - | 0.70 | 260.00 |
| Subtotal | - | 0.70 | 260.00 | |||
| Engineering Contracting | Hengdian Group Zhejiang Dongci Real Estate Development Co., Ltd. | Engineering contracting | Market price | 600.00 | 354.52 | 800.00 |
| Subtotal | 600.00 | 354.52 | 800.00 | |||
| Total | 13,350.00 | 8,597.02 | 4,060.00 |
Note: The original expected approval amount for 2025 also applies to the above related parties and their subsidiaries.