Kangda New Materials' wholly-owned subsidiary, New Materials Technology, plans to sign an Equity Transfer Agreement with Huang Rangnan, to acquire 3% equity of Kangda Xinyu held by Huang Rangnan for 2.2048 million yuan, and to acquire 10% equity of Tianyu Industrial held by Huang Rangnan for 10.5333 million yuan. After the transaction is completed, New Materials Technology will hold 100% equity of Kangda Xinyu and Tianyu Industrial. Huang Rangnan is a director of the fifth Board of Directors of the company, constituting a related party transaction. This transaction is within the approval authority of the board of directors and does not require approval by the shareholders' meeting.