Announcement on Terminating Share Issuance for Asset Purchase and Fundraising and Continuing Negotiation for Cash Asset Purchase

Announcement on Terminating Share Issuance for Asset Purchase and Fundraising and Continuing Negotiation for Cash Asset Purchase

Securities Code: 300423. Securities Abbreviation: Shenghui Technology. Announcement No.: 2026-032

Shenghui Technology Co., Ltd. Announces Termination of Share Issuance for Asset Purchase and Fundraising and Continuation of Negotiation for Cash Asset Purchase

Announcement on Termination of Share Issuance for Asset Purchase and Fundraising and Continuation of Negotiation for Cash Asset Purchase

Announcement on Termination of Share Issuance for Asset Purchase and Fundraising and Continuation of Negotiation for Cash Asset Purchase

Important Risk Warning:

1. The transaction is subject to significant uncertainties, and the final plan may not be achieved or implemented.

The Company hereby announces its intention to terminate the plan to issue shares to purchase 85% of the equity of Hepsun Energy Environmental Technology Co., Ltd. (hereinafter referred to as "Hepsun Energy" or "the Target Company") and raise supporting funds. It will continue to negotiate the cash purchase of Hepsun Energy's equity. The Company has signed the "Framework Agreement for Cash Purchase of Assets" with the five original shareholders of Hepsun Energy and the Target Company. This agreement is only a letter of intent, and the specific transaction plan, pricing, payment arrangements, performance commitments, and compensation for core terms are subject to the final definitive agreement. The transaction requires further negotiation among the parties and the completion of necessary internal decision-making procedures (including but not limited to board of directors and shareholders' meetings) before it can be implemented. Whether it can be successfully advanced and implemented remains uncertain.

Historical Disclosure of Previous Transactions:

1. Regarding the transaction planning, the Company applied to the Shenzhen Stock Exchange, and its stock (Securities Abbreviation: Shenghui Technology, Securities Code: 300423) was suspended from trading starting from the opening on April 15, 2025 (Tuesday). The suspension period shall not exceed 10 trading days. For details, please refer to the "Announcement on Suspension of Trading for Shenghui Intelligent Technology Co., Ltd. Regarding the Plan to Issue Shares to Purchase Assets and Raise Supporting Funds" disclosed by the Company on April 15, 2025 (Announcement No.: 2025-005). During the suspension period, the Company fulfilled its information disclosure obligations in a timely manner and disclosed the "Announcement on the Progress of Suspension of Trading for Shenghui Intelligent Technology Co., Ltd. Regarding the Plan to Issue Shares to Purchase Assets and Raise Supporting Funds" on April 21, 2025 (Announcement No.: 2025-006).

2. On April 28, 2025, the Company held the tenth extraordinary meeting of the fifth board of directors and the ninth extraordinary meeting of the fifth supervisory board. The meetings deliberated and approved the "Proposal on the Company's Plan for Issuing Shares to Purchase Assets and Raise Supporting Funds and Related Party Transactions" and the "Proposal on the Pre-disclosure Report of Shenghui Intelligent Technology Co., Ltd. on Issuing Shares to Purchase Assets and Raise Supporting Funds and Related Party Transactions" and other proposals related to this transaction. For details, please refer to the relevant announcements disclosed by the Company on the Juchao Information Network, the designated information disclosure website of the China Securities Regulatory Commission, on April 28, 2025. Concurrently, upon application, the Company's stock (Securities Abbreviation: Shenghui Technology, Securities Code: 300423) resumed trading from the opening on April 29, 2025.

3. After the disclosure of the transaction plan, the Company continued to advance the relevant work for this transaction and regularly published progress announcements. Please refer to the "Announcement on the Progress of Disclosing the Plan for Issuing Shares to Purchase Assets and Raise Supporting Funds and Related Party Transactions" disclosed by the Company on the Juchao Information Network on June 4, 2025, June 27, 2025, July 25, 2025, August 29, 2025, and September 29, 2025 (Announcement Nos.: 2025-031, 2025-033, 2025-034, 2025-036, 2025-046).