Hengxing New Materials announcement, the company, as a limited partner, uses its own funds to subscribe and contribute RMB 15.5 million, accounting for 38.26% of the capital, to participate in the establishment of Yixing Hongsheng Houxing emerging industry venture capital fund partnership, with a total subscribed capital of RMB 40.51 million. This trade does not constitute a related party transaction, nor does it constitute a major asset restructuring as stipulated in the "Regulations on the Management of Major Asset Restructuring of Listed Companies".