Huafa Group: Intends to issue A-shares to specific investors, multiple proposals are pending approval.

Hua Fa Corporation announced that it plans to issue A shares to Zhuhai Huafa Group Co., Ltd. for fundraising. The company's board of directors believes that it meets the current conditions and policy requirements for issuing shares to specific entities. The company has also prepared documents such as a stock issuance plan, prospectus, and analysis report. In addition, the company has established a three-year shareholder return plan. The controlling shareholder, Huafa Group, currently holds a direct and indirect stake of 29.64% and may trigger a mandatory offer to acquire shares after this issuance is completed. The company has proposed to the shareholders' meeting to exempt it from the obligation to increase its offer. Several proposals will be submitted to the shareholders' meeting for approval, and some related party transaction proposals will require abstention from voting by related shareholders.