Announcement Regarding Controlling Shareholder and Concerted Parties' Passive Dilution of Shareholding Ratio by 1% Due to Convertible Bond Conversion

Announcement Regarding Controlling Shareholder and Concerted Parties' Passive Dilution of Shareholding Ratio by 1% Due to Convertible Bond Conversion

The Company and the Board of Directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or material omissions.

Special Reminder:

1. The primary reason for this change in equity is the increase in the Company's total share capital due to the conversion of Shouhua Gas Technology (Shanghai) Co., Ltd.'s (hereinafter referred to as the "Company") convertible corporate bonds (hereinafter referred to as "convertible bonds") into shares. Consequently, the shareholding ratio of the Company's controlling shareholder, Shanghai Houde Miaojing Business Consulting Co., Ltd. (hereinafter referred to as "Houde Miaojing"), and its concerted parties, Shanxi Huijing Enterprise Management Consulting Co., Ltd. (hereinafter referred to as "Shanxi Huijing") and Liu Jinli, has been passively diluted and has reached a multiple of 1%. The number of shares held has not changed.
2. This change in equity does not involve an increase or decrease in shareholder holdings, does not trigger a mandatory takeover bid, and will not result in a change of company control, nor will it affect the company's governance structure and continued operation.

Recently, due to the conversion of the Company's convertible bonds into shares, the total share capital has increased. While the shareholding numbers of the Company's controlling shareholder Houde Miaojing and its concerted parties Shanxi Huijing and Liu Jinli remain unchanged, their combined shareholding ratio has been passively diluted and has reached a multiple of 1%. The relevant situation is hereby announced as follows:

I. Situation of Passive Dilution of Shareholder Equity Ratio Reaching a Multiple of 1%

1. Basic Information