Shandong Huapeng applied to the bank for financing to provide pledge and guarantee.

Shandong Huapeng Glass Co., Ltd. announced recently that according to its business plan and financing needs, it plans to apply to Weihai Commercial Bank for a comprehensive credit of no more than 370 million yuan. For details, please refer to the Announcement on Applying for Credit from Weihai Commercial Bank and Other Financial Institutions (Announcement No.: Lin 2023-012) published by the Company on the designated media on February 28, 2023. In

this financing plan, Shandong Huapeng Glass will provide some assets to Weihai Commercial Bank by mortgage, and plan to mortgage 100% equity and some machinery and equipment of Huapeng Glass (Heze) Co., Ltd. As well as the industrial land and buildings of Shandong Huapeng Shidao Glass Products Co., Ltd., a subsidiary company located in Building 1, 469 Longyun Road, Shidao, and the industrial land and buildings of Anqing Huapeng Changjiang Glass Co., Ltd., located in Daguan Phoenix Circular Economy Industrial Park, Anqing City, Anhui Province.

In addition, Anqing Huapeng Changjiang Glass Co., Ltd. and Gansu Shidao Glass Co., Ltd., subsidiaries of Shandong Huapeng Glass Co., Ltd., will provide guarantees for the above financing. The specific details shall be subject to the relevant contracts or agreements signed with Weihai Commercial Bank.

The financing project covers a variety of comprehensive businesses, such as working capital loans, non-working capital loans, bank acceptance bills, commercial bills, supply chain finance and so on. The transaction does not constitute a related party transaction, nor does it constitute a major asset reorganization, so it does not need to be submitted to the shareholders'meeting of the company for consideration.