The Deer Island: Island No. 1 Fund plans to reduce its shareholding in the company by no more than 1%.

Zhangzi Island Announcement: Shareholder Beijing Jirong Yuantong Asset Management Co., Ltd. - He Island No.1 Securities Investment Fund plans to reduce its holdings by no more than 7.111 million shares within 3 months after the announcement disclosure date through centralized bidding trading, accounting for no more than 1% of the company's total share capital. As of the announcement disclosure date, He Island No. 1 Fund holds 57.1627 million shares of the company, accounting for 8.04% of the company's total share capital. The reason for the reduction is the personal funding needs of the fund's unit holders and provisions related to the contract and liquidation of the He Island No. 1 Fund. The reduction price will be determined based on market prices. He Island No.1 Fund is not a controlling shareholder or actual controller of the company, and the implementation of this reduction plan will not lead to a change in the company's control rights.