North Electro-Optic announced that the seventh meeting of the twelfth session of the Board of Directors will be held on December 18, 2024, to review and approve the termination agreement of the conditional stock subscription agreement signed with North Electro-Optic Group and China Weapons Investment. Both North Electro-Optic Group and China Weapons Investment are enterprises controlled by the actual controller of the company, the Weapons Group, and this transaction constitutes a related party transaction. According to the company's '2023 Annual Plan for Issuing A-Shares to Specific Objects,' North Electro-Optic Group and China Weapons Investment planned to participate in the subscription of the stocks issued by the company to specific objects this time. To ensure the smooth progress of the issuance related work, the company adjusted the issuance plan, and North Electro-Optic Group and China Weapons Investment will no longer subscribe to the stocks issued by the company this time, resulting in a corresponding reduction in the number of shares issued and the amount of funds raised. The company has adjusted the number of shares issued and the amount of funds raised, and the signing of the aforementioned agreement will not affect the progress of various tasks related to this issuance and will not adversely affect the company's financial situation and operation.