Shanxi Huaxiang Group announced that the company has decided to cancel the previous plan to increase the capital of its holding subsidiary WHI Foundry by 16.05 million USD, and instead invest in setting up a wholly-owned subsidiary in the USA. The newly established US subsidiary has a registered capital of 6.75 million USD and will be included in the company's consolidated financial statements. This adjustment aims to improve the company's foundry after-sales service system, accelerate the upgrade of warehousing capabilities, and enhance the operational support strength for global operations. This transaction does not constitute a related party transaction and does not require approval at a shareholder meeting.