Mingxin Automotive Leather announced that its wholly-owned subsidiary Jiangsu Menoca and its wholly-owned subsidiary Xuteng Research Institute, and Hulun New Materials received the Administrative Penalty Decision from the Ecological Environment Bureau of Xuzhou City. Hulun New Materials was fined RMB 0.1 million due to the mixing of hazardous waste and general industrial solid waste in the hazardous waste storage. Jiangsu Menoca was fined RMB 0.254 million for the failure to complete the supporting construction of environmental protection facilities and acceptance of the roller-coating production line for the annual production of 8 million square meters of fully water-based permanent island ultra-fine new materials intelligent manufacturing project. Xuteng Research Institute was fined RMB 0.1 million due to the damage of the sewage storage tank's pumping pump, resulting in sewage overflow. The company stated that it will actively cooperate to complete the rectification and fully pay the fine. The above-mentioned penalties will not have a significant impact on the company's operating performance.