China Zhenhua announces that in order to optimize the layout of production sites and improve operational efficiency, the company will use its own funds of 39.5303 million yuan to purchase the No. 16 factory building and its attached land, as well as the land of No. 0003615, from the controlling shareholder China Zhenhua, located in the Guiyang Xintian Industrial Park. The No. 16 factory building has a construction area of 17,547.71 square meters, and the area of the attached land use rights is 5,525.**** meters, with an assessed record value of 33.7665 million yuan (including output tax); the land use rights of No. 0003615 have an area of 11,711.90 square meters and an assessed record value of 5.7638 million yuan (including output tax). After the completion of the trade, the related transactions between the company and China Zhenhua will be reduced. This related transaction does not require submission for shareholder meeting review.