On April 10, 2024, Baoding Technology (002552.SZ) held the sixteenth meeting of the fifth board of directors and the thirteenth meeting of the fifth supervisory board, at which the Proposal on Issuing Shares to Purchase Assets and Compensate for 2023 Performance and Buyback and Cancellation of Shares was approved. On May 6, 2024, the company held its 2023 Annual General Meeting of Shareholders and approved the above proposal. The company will repurchase and cancel a total of 19,418,203 shares of performance commitment compensation shares at a total price of RMB 1.00 per share. After the completion of this repurchase and cancellation, the company's total share capital will decrease from 427,960,242 shares to 408,542,039 shares.

The proposed repurchase and cancellation of shares to purchase assets and compensate for performance commitment shares involves two shareholders: Shandong Zhaojin Group Co., Ltd. (hereinafter referred to as "Zhaojin Group") and Zhaoyuan Yongyu Electronic Materials Co., Ltd. (hereinafter referred to as "Yongyu Electronics"). The repurchased and cancelled shares amount to 19,418,203 shares, accounting for 4.5374% of the company's total share capital of 427,960,242 shares before the repurchase and cancellation, all of which are limited sale condition publicly traded shares.