Announcement on Not Redeeming Huicheng Convertible Bonds Early

Qingdao Huicheng Environmental Technology Group Co., Ltd. Announcement on Not Redeeming "Huicheng Convertible Bonds" Early

The company and all members of the board of directors guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or major omissions.

Special Reminder:

1. From May 6, 2026, to May 26, 2026, the stock of Qingdao Huicheng Environmental Technology Group Co., Ltd. (hereinafter referred to as "the Company" or "Huicheng Environmental") has met the condition that the closing price is not lower than 130% of the current conversion price (14.59 yuan/share) for at least 15 trading days within any consecutive 30 trading days (including 130%, i.e., 18.97 yuan/share), triggering the conditional redemption clause of the "Huicheng Convertible Bonds."
2. The Company held the sixth meeting of the fourth board of directors on May 26, 2026, and approved the proposal on not redeeming the "Huicheng Convertible Bonds" early. The board decided not to exercise the early redemption rights of the "Huicheng Convertible Bonds" and will not redeem them early. Furthermore, within the next three months (from May 27, 2026, to August 26, 2026), if the conditional redemption clause is triggered again, the Company will not exercise the early redemption rights. The first trading day after August 26, 2026, will be recalculated. If the "Huicheng Convertible Bonds" trigger the above conditional redemption clause again, the board will hold another meeting to decide whether to exercise the early redemption rights.

1. Basic Information of "Huicheng Convertible Bonds"

With the approval of the China Securities Regulatory Commission regarding the registration of the issuance of convertible corporate bonds to unspecified objects (Zheng Jian Xu Ke [2021] No. 1178), the Company publicly issued 3.2 million convertible bonds on July 7, 2021, with a face value of 100 yuan each, totaling 320 million yuan. With the approval of the Shenzhen Stock Exchange (hereinafter referred to as "SZSE"), the convertible bonds were listed for trading on the SZSE starting July 26, 2021, under the name "Huicheng Convertible Bonds" and the bond code "123118." According to the relevant regulations of the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the provisions of the "Prospectus for the Issuance of Convertible Corporate Bonds by Qingdao Huicheng Environmental Technology Group Co., Ltd." (hereinafter referred to as "the Prospectus"), the conversion period for the issued convertible bonds is from the first trading day after six months from the end of the issuance until the maturity date of the convertible bonds, specifically from January 13, 2022, to July 6, 2027.

On June 21, 2022, due to the completion of the 2021 annual equity distribution, the conversion price of the "Huicheng Convertible Bonds" was adjusted from 17.11 yuan/share to 17.06 yuan/share, effective from June 21, 2022. For details, please refer to the announcement on the adjustment of the conversion price disclosed by the Company on the Giant Tide Information Network (Announcement No. 2022-041). The Company's 2022 annual equity distribution plan does not include cash dividends, bonus shares, or capital reserve transfers. The conversion price of the "Huicheng Convertible Bonds" does not require adjustment.

On July 24, 2023, due to the issuance of shares to specific objects, the conversion price of the "Huicheng Convertible Bonds" was adjusted from 17.06 yuan/share to 15.99 yuan/share, effective from July 24, 2023. For details, please refer to the announcement on the adjustment of the conversion price disclosed by the Company on the Giant Tide Information Network (Announcement No. 2023-067).