Announcement on Waiving the Priority Subscription Right for Share Increase in Investee Company and Related Party Transaction

Northern Huachuang Technology Group Co., Ltd. Announcement on Waiving the Priority Subscription Right for Share Increase in Investee Company and Related Party Transaction

The Company and all members of its Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false representations, misleading statements, or material omissions.

Northern Huachuang Technology Group Co., Ltd. (hereinafter referred to as "Northern Huachuang" or "the Company") held the second meeting of the ninth Board of Directors on June 22, 2026, and approved the "Proposal on Waiving the Priority Subscription Right for Share Increase in Investee Company and Related Party Transaction." Director Li Rui, a related party director, abstained from voting on this proposal, which has also been reviewed and approved by the Company's independent directors' special committee.

This related party transaction does not constitute a major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies." According to the "Articles of Association," it does not require submission to the Company's shareholders' meeting for deliberation. The relevant matters are hereby announced as follows:

I. Overview of Related Party Transaction

(I) Basic Situation

Beijing Electric Control Industry Investment Co., Ltd. (hereinafter referred to as "Electric Control Industry Investment") was jointly established by Northern Huachuang Innovation Investment (Beijing) Co., Ltd. (hereinafter referred to as "Huachuang Venture"), Beijing Electronics Holdings Co., Ltd. (hereinafter referred to as "Beijing Electronics"), BOE Technology Group Co., Ltd. (hereinafter referred to as "BOE"), and Beijing Electronic City High-Tech Group Co., Ltd. (hereinafter referred to as "Electronic City High-Tech"). Its main business is investment and asset management, with a registered capital of RMB 1.857 billion. Northern Huachuang holds a 17.6847% stake and appoints one director. Due to the business development needs of Electric Control Industry Investment, Beijing Electronics will increase its capital by RMB 1.5 billion. Huachuang Venture will not participate in this capital increase and waives its priority subscription right.

(II) Explanation of This Transaction Constituting a Related Party Transaction

According to the "Company Law" and the "Shenzhen Stock Exchange Stock Listing Rules," as Beijing Electronics is the actual controller of Northern Huachuang, and the actual controller and controlling shareholder of Electric Control Industry Investment, BOE, and Electronic City High-Tech, and Huachuang Venture is a wholly-owned subsidiary of Northern Huachuang, this transaction constitutes a related party transaction.

II. Basic Information of the Investment Entity

1. Name: Northern Huachuang Innovation Investment (Beijing) Co., Ltd.
2. Nature of Business: Limited Liability Company (Wholly Wholly-Owned by Legal Person)
3. Date of Establishment: June 6, 2024
4. Company Address: Room 2C01, 2nd Floor, Building 1, No. 8 Wenchang Avenue, Beijing Economic-Technological Development Area, Beijing
5. Legal Representative: Tao Haihong
6. Registered Capital: RMB 960 million
7. Unified Social Credit Code: 91110400MADNAF920E
8. Main Business: Investment activities with own funds; technical services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; information consulting services.
9. Equity Structure: Northern Huachuang holds 100% equity.
10. Upon verification, Huachuang Venture is not a dishonest judgment debtor.
11. Financial Statement Data for the Most Recent Year and Period