Huaxiang Group: Shareholders holding more than 5% of the shares intend to issue convertible bonds of no more than 200 million, and provide share guarantees.

Huaxiang Corporation announced that Shanxi Jiaotou, a shareholder holding more than 5% of the company's shares, has received a letter of no objection from the Shanghai Stock Exchange for its non-public issuance of up to 200 million yuan convertible corporate bonds for technological innovation. This issuance will be secured by stocks and conducted through a trust. Shanxi Jiaotou will register with Zhongde Securities for the transaction, and plans to transfer its 16,722,409 shares of the company's stock to a dedicated trust account. As of the announcement date, Shanxi Jiaotou holds 8.40% of the shares. After the registration is completed, its direct holdings will be reduced to 5.30%, and holdings through the trust account will be 3.10%. This does not affect the controlling interest and does not constitute a tender offer.