Progress Announcement on Share Repurchase Reaching 1% Ratio

Zhongshun Jierou Paper Co., Ltd. (hereinafter referred to as "the Company") guarantees that the content of this announcement is true, accurate, and complete, without any false records, misleading statements, or significant omissions. The 17th meeting of the 6th Board of Directors of the Company approved the proposal for the share repurchase plan. The Company intends to use its own funds to repurchase part of its issued RMB ordinary shares (A shares) through centralized bidding. The repurchased shares will be used as a source for the employee stock ownership plan or equity incentive plan in the future. The total amount for the repurchase will not be less than RMB 60 million (inclusive) and not exceed RMB 120 million (inclusive), with a repurchase price not exceeding RMB 12.4 per share (inclusive). Based on the upper and lower limits of the repurchase funds and the maximum repurchase price of RMB 12.4 per share (inclusive), the estimated number of shares to be repurchased is approximately 4,838,710 shares to 9,677,419 shares, with the specific number of repurchased shares to be determined based on the actual number repurchased upon completion of the repurchase or expiration of the repurchase period. The implementation period for the share repurchase is within 12 months from the date