Hecheng Silicon Industry: Pledge and release of part of the shares by the controlling shareholders and their concerted action parties.

Hesheng Silicon Industry announced that recently, its controlling shareholder Hesheng Group and its concerted actors Luo Yi and Luo Yedong have arranged for the pledge and release of some shares. As of the announcement date, Hesheng Group and its concerted actors collectively hold 869,105,229 shares, accounting for 73.52% of the total share capital. After this pledge and release, the total pledged shares amount to 364,185,100 shares, accounting for 41.90% of their total holdings, and 30.81% of the total share capital. Among them, Luo Yi pledged 3,650,000 shares for supplementary working capital. Hesheng Group and its concerted actors have good credit and financial conditions, and the pledge risk is controllable.