CHONGQING MECHANICAL AND ELECTRICAL CO., LTD. (“CHONGQING MECHANICAL ELECTRIC”) ISSUED A NOTICE ON 17 MAY 2024 THAT IT HAS UPDATED ITS HOLDING SUBSIDIARIES CHONGQING CHENFEI NEW MATERIALS CO. (“CHENFEI COMPANY”) AND ITS WHOLLY OWNED SUBSIDIARIES AND MING YANG SMART ENERGY GROUP CO., LTD. (“MING YANG COMPANY”) AND ITS WHOLLY OWNED SUBSIDIARIES The progress of litigation between the companies. The lawsuit involves processing contract and product quality disputes, and the two sides have recently signed a settlement agreement, ending a series of lawsuits. The settlement agreement is beneficial for Shinefei, helping to recapture funds, reduce litigation costs and maintain corporate image, while allowing for future cooperation between the parties. The announcement noted that the settlement agreement will not have a significant impact on the day-to-day production operations of Chongqing Mechanical and Electric. The Company reminds shareholders and potential investors to exercise caution when trading.

CHONGQING MECHANICAL AND ELECTRICAL CO., LTD. (“CHONGQING MECHANICAL ELECTRIC”) ISSUED A NOTICE ON 17 MAY 2024 THAT IT HAS UPDATED ITS HOLDING SUBSIDIARIES CHONGQING CHENFEI NEW MATERIALS CO. (“CHENFEI COMPANY”) AND ITS WHOLLY OWNED SUBSIDIARIES AND MING YANG SMART ENERGY GROUP CO., LTD. (“MING YANG COMPANY”) AND ITS WHOLLY OWNED SUBSIDIARIES The progress of litigation between the companies. The lawsuit involves processing contract and product quality disputes, and the two sides have recently signed a settlement agreement, ending a series of lawsuits. The settlement agreement is beneficial for Shinefei, helping to recapture funds, reduce litigation costs and maintain corporate image, while allowing for future cooperation between the parties. The announcement noted that the settlement agreement will not have a significant impact on the day-to-day production operations of Chongqing Mechanical and Electric. The Company reminds shareholders and potential investors to exercise caution when trading.