Securities code: 688001 Securities abbreviation: Huaxing Yuanchuang Announcement No.: 2025-007

Suzhou Huaxing Yuanchuang Technology Co., Ltd

Announcement on the plan of the actual controller to increase the company's shares

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

Important Content Notes:

Suzhou Huaxing Yuanchuang Technology Co., Ltd. (hereinafter referred to as the "Company") recently received a notice from Mr. Chen Wenyuan, the actual controller of the Company, based on the confidence in the Company's sustainable and healthy development in the future and the long-term investment value of the Company's shares

Approved, Mr. Chen Wenyuan intends to use his own funds to trade through Shanghai Securities within 3 months from January 20, 2025

The centralized auction transaction method increased the company's shares. There is no price premise for this increase, and the amount of the increase is not less than RMB 25 million (inclusive) and not more than RMB 50 million (inclusive).

The shareholding increase plan will not touch the tender offer and will not lead to a change in the actual controller of the company. There may be a risk that the shareholding increase plan cannot be implemented due to changes in securities market conditions or policy factors. If there are relevant risk situations during the implementation of the shareholding increase plan, the company will fulfill the information disclosure obligation in a timely manner.

In the process of implementing the plan, the shareholding increase entity will comply with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on changes in the rights and interests of listed companies and sensitive periods for stock trading.

On January 17, 2025, the Company received a letter from Mr. Chen Wenyuan, the actual controller, regarding the plan to increase its shareholding in Suzhou Hua

Based on the confidence in the company's sustainable and healthy development in the future and the recognition of the long-term investment value of the company's shares, Mr. Chen Wenyuan intends to increase his shareholding in the company through centralized bidding on the Shanghai Stock Exchange. The relevant situation is hereby announced as follows:

First, the basic situation of the subject of the increase in holdings

(1) Subject of increasing holdings: Mr. Chen Wenyuan, the actual controller of the company;

(2) As of the disclosure date of this announcement, Mr. Chen Wenyuan, the actual controller of the company, directly held 56,516,940 shares of the company, with a direct shareholding ratio of 12.69%; indirectly control 51.86% of the company's shares through Suzhou Yuanhua Chuangxing Investment Management Co., Ltd.; 7.18% of the company's shares are indirectly controlled through Suzhou Yuanke Enterprise Management Partnership (Limited Partnership); indirectly control 7.18% of the company's shares through Suzhou Yuanfen Enterprise Management Partnership (Limited Partnership); Ms. Zhang Qian, the spouse of Mr. Chen Wenyuan, directly holds 1.87% of the company's shares; Mr. Chen Wenyuan, Suzhou Yuanhua Chuangxing Investment Management Co., Ltd.,

Suzhou Yuanke Enterprise Management Partnership (Limited Partnership), Suzhou Yuanfen Enterprise Management Partnership (Limited Partnership) and Ms. Zhang Qian are acting in concert;

(3) In the 12 months prior to the disclosure of this announcement, Mr. Chen Wenyuan had not disclosed his shareholding increase plan.

Second, the main content of the shareholding plan

(1) The purpose of the proposed increase in shares: Mr. Chen Wenyuan, the actual controller, plans to increase his holdings of the company's shares based on his confidence in the company's sustainable and healthy development in the future and his recognition of the long-term investment value of the company's shares, and at the same time in order to safeguard the interests of all shareholders, earnestly fulfill the responsibilities of major shareholders and enhance investor confidence;

(2) The amount of the proposed increase in shares: The amount of the proposed increase in the company's shares shall not be less than RMB 25 million (inclusive) and not more than RMB 50 million (inclusive);

(3) The price of the proposed increase in shares: The increase plan does not set the price range of the increased shares, and will choose the opportunity to increase the company's shares according to the price fluctuations of the company's shares and the overall situation of the capital market;

(4) The implementation period of the shareholding increase plan: The implementation period of the shareholding increase plan is from 2025

Within 3 months from January 20. During the implementation of the shareholding increase plan, if the company's shares are continuously suspended due to planning major events10

If the shareholding increase plan is more than one trading day, the implementation of the shareholding increase plan will be postponed and disclosed in a timely manner after the resumption of trading of the company's shares;

(5) The financial arrangements for the proposed increase in shares: it is proposed to increase the company's shares through its own funds;

(6) The type and method of the proposed increase in shares: It is proposed to increase the company's A shares through centralized bidding transactions on the Shanghai Stock Exchange.

3. Uncertainty risk in the implementation of the shareholding increase plan

There may be a risk that the shareholding increase plan cannot be implemented due to changes in securities market conditions or policy factors. If there are relevant risk situations during the implementation of the shareholding increase plan, the company will fulfill the information disclosure obligation in a timely manner.

4. Explanation of other relevant matters

(1) Mr. Chen Wenyuan, the actual controller of the main company, will strictly abide by the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on changes in the rights and interests of listed companies and the sensitive period of stock trading in the process of implementing the plan to increase the company's shares;

(2) The implementation of the shareholding increase plan will not lead to a change in the actual controller of the company, and will not have an impact on the company's governance structure and continuous operation;

(3) The shareholding increase plan is in accordance with the Company Law of the People's Republic of China and the Securities Law of the People's Republic of China

Administrative Measures for the Acquisition of Municipal Companies, Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, and other laws and regulations, departmental rules, and business rules of the Shanghai Stock Exchange. The company will continue to pay attention to the progress of the shareholding increase plan and fulfill its information disclosure obligations in a timely manner.

The announcement is hereby made.

Board of Directors of Suzhou Huaxing Yuanchuang Technology Co., Ltd

January 18, 2025