Dongyue Group (00189) issued an announcement regarding the company's subsidiary plans to transfer about 7.9% of the shares in Shandong Dongyue Future Hydrogen Energy Materials. It is reported that the transfer has been completed in accordance with the terms and conditions of the “Equity Transfer Agreement”. On the date of this announcement, Zhang Jianhong (Executive Director and Chairman of the Board of Directors) owns a total of about 36.19% of the shares in Dongyue Hydrogen Energy through an entity controlled by him. Therefore, at the time of completion of the transfer, Dongyue Hydrogen Energy was a related person of the company.

In addition, Dongyue Fluorosilicon Technology (a direct wholly-owned subsidiary of the company, for itself and its subsidiary) signed a “Framework Agreement on Raw Material Supply, Product Sales and Other Transactions” with Dongyue Hydrogen Energy on August 2, 2022 (after the end of the trading period). Based on this, Dongyue Fluorosilicon Technology and its subsidiaries have agreed (1) to supply Dongyue Hydrogen Energy with Dongyue Hydrogen Energy for its production and operation, and (2) purchase hydrogen raw materials, products and supporting services from Dongyue Hydrogen Energy for the Group's production and operation. The period ends on December 31, 2022.

According to the “Framework Agreement on the Supply of Raw Materials, Product Sales and Other Transactions”:

(1) The total amount that Dongyue Hydrogen Energy will pay Dongyue Fluorosilicon Technology and its subsidiaries for Dongyue's raw materials and supporting services shall not exceed approximately RMB 93.189 million for the five months ended December 31, 2022 (annual sales limit); and

(2) Dongyue Fluorosilicon Technology and its subsidiaries will pay Dongyue Hydrogen Energy the total amount for hydrogen energy raw materials, products and supporting services, which shall not exceed approximately RMB 39.304 million for the five months ended December 31, 2022 (annual purchase limit).