I. Overview of the Absorption Merger
Dongfulong Technology Group Co., Ltd. (hereinafter referred to as "the Company") held the third (temporary) meeting of the seventh board of directors on June 1, 2026, and approved the proposal on the absorption merger of a wholly-owned subsidiary by a wholly-owned grandchild company. To further optimize the company's management structure and improve operational efficiency, the board agreed that Shanghai Dongfulong Dehui Purification Air Conditioning Engineering Installation Co., Ltd. (hereinafter referred to as "Dehui Engineering") will merge all assets, liabilities, businesses, and other rights and obligations of Shanghai Dongfulong Dehui Air Conditioning Equipment Co., Ltd. (hereinafter referred to as "Dehui Equipment") through an overall absorption merger. After the merger, Dehui Engineering will continue normal operations, and the independent legal status of Dehui Equipment will be canceled. This absorption merger is between the company's wholly-owned grandchild company and wholly-owned subsidiary, does not constitute a related party transaction, and does not constitute a major asset reorganization as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies." According to the relevant provisions of the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the "Articles of Association," this absorption merger does not require submission for shareholder meeting deliberation.