Xinhenghui: Intends to subscribe 20 million yuan to subscribe to the newly increased registered capital of Zibo Xincai Integrated Circuit Co., Ltd. for 6.7545 million yuan.

Announcement of Xinhenghui: it is proposed to subscribe for 20 million yuan to increase the registered capital of Zibo Xincai Integrated Circuit Co., Ltd. by 6.7545 million yuan. After the completion of this transaction, the company will hold 10.53% equity of the target company. The existing shareholders of the target company include Mr. Ren Zhijun, Gongqingcheng Xincai Huineng Investment Partnership Enterprise, Gongqingcheng Xincai Jiahe Second Phase Investment Partnership Enterprise, and Zibo Qixin Industrial Investment Partnership Enterprise, which are related parties of the company. This investment constitutes a related party transaction. This related party transaction has been approved by the 14th meeting of the second board of directors of the company, and the related directors have abstained from voting.