Kairuide Holding announced that Mr. Ji Xiaowen, Chairman and General Manager of the company, was under investigation for alleged bribery and has been put under detention. Currently, the board of directors and the board of supervisors of the company are operating normally, and there has been no change in the company's control. Other senior management staff of the company are fulfilling their duties normally, and the production and operation order of the company and its subsidiaries is normal. Major asset restructuring matters of the company are being planned and progressed. Ms. Zhu Xiaoyan, Vice General Manager and Secretary of the board of directors, is temporarily responsible for the company's daily management work. This matter will not have a significant impact on the company's daily production and operation. The company will continue to monitor the follow-up of the above matters and fulfill its disclosure obligations in a timely manner.