According to the Zhitong Finance App, Dunhuang Seed Industry (600354.SH) issued an announcement. On November 8, 2023, the company received the Jiuquan Municipal People's Government's “Approval on the Free Transfer of Dunhuang Seed Industry Shares” (Liquor Administration Letter (2023) No. 77) and the Jiuquan Municipal Government's State Assets Administration Commission's “Notice on Cooperation in Accomplishing Work Related to Equity Transfer” and “Decision on Work Related to Free Transfer of State-owned Equity”.

(1) In principle, it is agreed to transfer 53.751,000 company shares held by Jiuquan Modern Agriculture and 4,511,500 shares of Dunhuang Seed Industry held by the Jiuquan Agricultural Research Institute (“Jiuquan Academy of Agricultural Sciences”) to the State Assets Administration Commission of the Jiuquan Municipal Government free of charge. (“First free transfer” for short). After this free transfer, the State Assets Administration Commission of the Jiuquan Municipal Government will hold 58.216,600 shares in the Dunhuang seed industry, accounting for 11.03% of the company's total share capital.

(2) Agree that the State Assets Administration Commission of the Jiuquan Municipal Government will act as the main body to transfer 58.216,600 shares of Dunhuang seed industry shares held by it to Jiuquan Group free of charge (“second free transfer” for short). After this free transfer, Jiugang Group finally became the controlling shareholder of Dunhuang Seed Industry, with a shareholding ratio of 11.03%.

This equity change includes two free transfers of state-owned equity. If the free transfer matters pass approval and complete the relevant procedures, the controlling shareholder of the company will change from Jiuquan Modern Agriculture to the State Assets Administration Commission of the Jiuquan Municipal Government after the first free transfer is completed, and the actual controller will remain the State Assets Administration Commission of the Jiuquan Municipal Government; after the completion of the second free transfer, the controlling shareholder of the company will change from the State Assets Administration Commission of the Jiuquan Municipal Government to the State Assets Administration Commission of the Gansu Provincial Government.