Hengda New Materials announced that shareholder Longyou Link Long, who owns more than 5% of the company, plans to reduce its holdings by no more than 1.7761 million shares through block trades within three months after the announcement is made for 15 trading days, accounting for 2% of the total share capital after excluding the shares in the company's repurchase special account. This shareholding reduction is due to the need for fund distribution, and the shares to be reduced are shares issued before the initial public offering. The reduction price will be determined based on the market price, but not less than 36.02 yuan per share. The reduction plan complies with relevant laws and regulations and will not have a significant impact on the company's governance structure and future continuous operation.