On the evening of December 18, Beijing Hezong Science & Technology announced that the company's controlling shareholder and actual controller Liu Zegang's 50.897 million shares will be auctioned by judicial order. This portion of shares accounts for 40.03% of the shares held by him and 4.78% of the company's total share capital after deducting repurchases. If this judicial auction is successful, it may lead to a change in the company's control. This auction matter will not affect the company's production and operation.