New Continent A: The controlling shareholder's subsidiary pledges 40.20% of the equity to guarantee over 3 billion RMB in debt.

New Continent A announced that its major shareholders, Dalian Hesheng Holdings and its subsidiary Shenyang Heyi, have pledged 40.20% of their stake in Nanjing Lanpu Chengxin New Materials Co., Ltd. to the company. This is to provide guarantees for the company's debts of 223 million yuan owed to China Great Wall Asset Management Corporation Dalian Branch and 80.13 million yuan owed to Huaxia Bank Ningbo Branch by its wholly-owned subsidiary New Continent Trading Co., Ltd. The pledge period is from the effective date of the "Equity Pledge Agreement" until the debt is resolved. The related party transaction has been approved by the board of directors and still needs approval from the shareholders' meeting, with related directors abstaining from voting.