I. Overview of the Transaction
Wankai New Materials Co., Ltd. (hereinafter referred to as "Wankai New Materials" or the "Company") held the Second Meeting of the Third Board of Directors on April 25, 2026, and the 2025 Annual General Meeting on May 19, 2026, respectively. These meetings reviewed and approved the "Proposal on Authorizing the Sale of Partial Equity of an Investee Company," consenting to the Company's management selling, at an opportune time, a portion of the equity held in the investee company, Lingxin Qiaoshou (Beijing) Technology Co., Ltd. (hereinafter referred to as "Lingxin Qiaoshou"). Based on the Company's continued long-term optimism regarding the target company, while also appropriately recovering investment costs to realize partial gains, the proposed equity sale ratio is capped at 2%. The transfer price is based on a valuation no lower than the latest round of financing completed by the target company prior to the convening of this Board meeting. The authorization period is 12 months from the date of approval by the General Meeting. For specific details, please refer to the "Announcement on Authorizing the Sale of Partial Equity of an Investee Company" disclosed by the Company on April 28, 2026 (Announcement No.: 2026-033).