The announcement from South Network Energy states that during the eleventh special meeting of the Board of Directors in 2024, it was approved that South Network Energy, as a creditor, will petition the court for the bankruptcy of its wholly-owned subsidiary companies, Guangxi Nanneng Changling Clean Energy Co., Ltd. and Yangshan Nandian Biomass Power Generation Co., Ltd. These matters do not involve related party transactions, nor do they pertain to the significant asset restructuring as defined by the Regulations on the Management of Major Asset Restructuring of Listed Companies, so there is no need to submit them for discussion by the Board of Directors and Shareholder meeting. Filing for bankruptcy for both subsidiaries is beneficial for optimizing resource allocation, reducing sources of loss, and lowering operational risks in the biomass business. In the long run, it aligns with the company's strategic layout and the interests of all shareholders, aiding in achieving sustainable, healthy, and stable development without affecting the company's normal production and operational management activities.