Shenzhen TXD Technology Co., Ltd. announced that its wholly-owned subsidiary, Kunshan Ruyue Tongxin Semiconductor Co., Ltd., has signed a "Termination Agreement" with Ruyue Xin Semiconductor (Kunshan) Co., Ltd., terminating the "Encapsulation and Testing Project Cooperation Agreement" signed on January 5, 2022. The termination was due to objective changes in circumstances to achieve mutual benefit and win-win results. All parties confirm that the original contract is not in dispute, and no legal responsibilities will be pursued. This termination agreement will not have a significant adverse impact on the company's financial and operational situation, nor will it affect the company's long-term deployment and strategic planning in chip encapsulation and testing projects.