Shenzhen Xinxing announced the termination of the asset transfer agreement and supplementary agreement signed between Songyan New Energy Materials Co., Ltd., a wholly-owned subsidiary of the company and Jiangxi Huikai Chemical Co., Ltd. As of the disclosure date of the announcement, Huikai Chemical has paid the asset transfer price of 40 million yuan, but due to the slowdown in the economic situation and weak downstream demand for hydrogen fluoride, Huikai Chemical is unable to fulfill the remaining transfer payment obligations. The board of directors of the company agreed that Songyan Renewable Energy, a wholly-owned subsidiary, terminated the asset transfer and signed a termination agreement with Huikai Chemical. 100% of the project company's shares have been transferred to Huikai Chemical, but no substantial transfer has been carried out. The termination of the transaction does not involve the return of the relevant assets, and the company will continue to replan and rearrange the relevant assets.