Shandong Sinocera Functional Material announced that on September 27, 2024, shareholder and actual controller Zhang Xi signed a "Share Transfer Agreement" with individual Wang Hong, agreeing to transfer part of the unrestricted tradable shares held by Zhang Xi to Wang Hong, totaling 49,860,000 shares (5.0008% of the total share capital, 5.0298% of the total share capital excluding shares held in the company's repurchase special account). This agreement does not involve a tender offer or constitute a related party transaction. After the transfer, Zhang Xi still holds 15.34% of the total share capital of the company, remaining a shareholder with more than 5% holdings and the actual controller. This transfer agreement will not cause any changes to the company's controlling shareholder and actual controller. The transfer of shares still requires compliance confirmation by the Shenzhen Stock Exchange before the share transfer procedures can be completed at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.