Bai'ao Chemical: Giving up the priority subscription right of increasing capital for Xinhui Lianxin Holding, the holding ratio decreases to 8.4851%.

Baiao Chemical announced that the company plans to increase capital and expand shares through its wholly-owned subsidiary Xinhua Hua, which indirectly holds shares in Xinhui Lianxin. This round of investors intends to contribute 50 million yuan, and subsequent investors intend to subscribe for an additional registered capital of 150 million yuan. The newly established employee stock platform Xinyao Da plans to contribute 1.81 million yuan, and Xinchenda plans to contribute 6.4357 million yuan. The company and other original shareholders of Xinhui Lianxin have waived their preemptive rights to subscribe for the capital increase. After the capital increase is completed, the company's shareholding ratio will decrease from 10.1439% to 8.4851%. This transaction constitutes a related party transaction, but does not constitute a major asset restructuring.