Securities code: 688001 Securities abbreviation: Huaxing Yuanchuang Announcement No.: 2025-009

Suzhou Huaxing Yuanchuang Technology Co., Ltd

Announcement on the progress of the actual controller's plan to increase its shareholding in the company

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:

The basic situation of the shareholding increase plan: Mr. Chen Wenyuan, the actual controller of Suzhou Huaxing Yuanchuang Technology Co., Ltd. (hereinafter referred to as the "Company"), is based on his confidence in the sustainable and healthy development of the Company in the future and the long-term investment value of the Company's shares

Approved, it intends to use its own funds to conduct centralized bidding through the Shanghai Stock Exchange within 3 months from January 20, 2025

Increase the company's shares by way of trading. There is no price premise for this increase, and the amount of the increase will not be less than RMB25 million

(inclusive), not more than RMB 50 million (inclusive). For details, please refer to the company's disclosure on January 18, 2025

"Huaxing Yuanchuang: Announcement on the Plan for the Actual Controller to Increase the Company's Shares" on the website of the Shanghai Stock Exchange (www.sse.com.cn) (Announcement No.: 2025-007)

Progress in the implementation of the shareholding increase plan: From January 20, 2025 to February 19, 2025, the company is actually controlled

Mr. Chen Wenyuan, the producer, increased his holdings of 474,203 A shares of the Company through centralized bidding through the Shanghai Stock Exchange system, accounting for about 0.11% of the total share capital of the Company, with a total increase of approximately RMB 14.2921 million (excluding transaction costs), which has exceeded 50% of the lower limit of the proposed increase in the amount of the shareholding increase plan. The shareholding increase plan has not yet been implemented, and the shareholding increase entity will continue to increase its holdings of the company's shares during the implementation period of the shareholding increase plan in accordance with the relevant shareholding increase plan.

Relevant risk warning: There may be a risk that the shareholding increase plan cannot be implemented due to changes in the 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.

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 the shareholding increase plan, 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 (with partnership); Chen Wen

Mr. Yuan's spouse, Ms. Zhang Qian, directly holds 1.87% of the company's shares; The above-mentioned 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 the shareholding increase plan, Mr. Chen Wenyuan had not disclosed the 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;

(6) The financial arrangements for the proposed increase in shares: it is planned 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. Progress in the implementation of the shareholding increase plan

From January 20, 2025 to February 19, 2025, Mr. Chen Wenyuan, the actual controller of the company, passed the Shanghai certificate

The securities exchange system has cumulatively increased its holdings of 474,203 A-shares of the company through centralized auction trading, accounting for about 0.11% of the company's total share capital, with a total increase of about 14.2921 million yuan (excluding transaction costs), which has exceeded 50% of the lower limit of the proposed increase in the amount of the shareholding increase plan. The shareholding increase plan has not yet been implemented, and the shareholding increase entity will continue to increase its holdings of the company's shares during the implementation period of the shareholding increase plan in accordance with the relevant shareholding increase plan.

As of February 19, 2025, Mr. Chen Wenyuan, the actual controller of the Company, directly held 56,991,143 shares of the Company.

Direct shareholding ratio 12.80%; 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 (with partnership); Ms. Zhang Qian, the spouse of Mr. Chen Wenyuan, directly holds 1.87% of the company's shares; The above-mentioned Mr. Chen Wenyuan, Suzhou Yuanhua Chuangxing Investment Management Co., Ltd., Suzhou Yuanke Enterprise Management Partnership (Limited Partnership), Suzhou Yuanfen Enterprise Management Partnership (Limited Partnership), Zhang

Ms. Akane is acting in concert.

Fourth, the uncertainty risk of 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.

5. 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 complies with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Administrative Measures for the Acquisition of Listed Companies, the 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

February 20, 2025