Sanxia new materials: Received Hubei Securities Regulatory Bureau's decision on administrative supervision measures.

Announcement of Three Gorges New Material: The company has received an administrative regulatory measure decision from the Hubei Securities Regulatory Bureau, pointing out the inaccurate financial information disclosure in the 2018 annual report and the untimely disclosure of related party transactions. The former chairman Xu Xizhong, general manager Zhang Jinkui, and board secretary Yang Xiaoping did not fulfill their duties diligently. The regulatory authority has decided to issue a warning letter to the company and related responsible persons as an administrative regulatory measure, and to record it in the credit file of the securities and futures market. The company and related responsible persons will learn from this lesson, strengthen their understanding of laws and regulations, formulate rectification plans, improve internal governance, ensure that information disclosure is true, accurate, and complete, and submit rectification reports within the specified time frame.