On August 23, the company received a notice from Xiang Hongwei, the controlling shareholder and actual controller of the company. It learned that Xiang Hongwei, the controlling shareholder and actual controller of the company, and Shi Ningdi signed a “Letter of Intent to Transfer Shares”. Xiang Hongwei plans to transfer his 54.6723 million shares of the company (accounting for 29.99% of the total number of shares in the target company) to Shi Ningdi and the entity he actually controls. After the transaction is completed, the transferee Shi Ningdi will become the controlling shareholder and actual controller of the company. Since the signing of the “Letter of Intent to Transfer Shares”, the two parties have carried out due diligence and other related work, and discussed the signing of a formal equity transfer agreement, but as of the day before this announcement, the two sides have not reached an agreement. According to the “Letter of Intent for Transfer of Shares”, “If the two parties fail to agree on signing a formal share transfer agreement after 3 months of signing this letter of intent, this letter of intent is automatically terminated.” As a result of these terms, this equity transfer was terminated.