Recently, Chizhou Yunzhong Electronic Technology Co., LTD. (referred to as "Chizhou Yunzhong"), a wholly-owned subsidiary of Yunzhong Technology, signed an capital increase agreement with Xuancheng Kaisheng Industrial Investment and Development Co., LTD. (referred to as "Xuancheng Kaisheng Industrial Investment"). According to the agreement, Xuancheng Kaifeng Investment contributed 45 million yuan, holding 20.58 million yuan of the registered capital of Chizhou Yunzhong, with a shareholding ratio of 5.63%. After the completion of this capital increase, the total amount of external equity financing of Chizhou Yunzhong has reached 100 million yuan, and its registered capital has increased to 366 million yuan. The equity ratio held by Yunzhong Technology in Chizhou Yunzhong has changed to 81.98%.

Xuancheng Kaifeng Investment is a state-owned government investment platform in the Economic Development Zone of Xuancheng City. In recent years, it has continuously delved into and laid out in high-tech industries such as new energy, new materials, and intelligent manufacturing, accelerating the innovative development of industries and the regional economy. The successful introduction of Xuancheng Kai Sheng Production Investment by Chizhou Yunzhong this time marks another significant milestone in the company's strategic development. It further optimizes and enhances the company's equity structure, laying a solid foundation for the company to accelerate the development of its electronic ceramics business. Xuancheng Kaifeng Production Investment, as an important investment platform under the Xuancheng Municipal State-owned Assets Supervision and Administration Commission, focuses on the long-term sustainable development of the industrial economy, promotes the integration of resources in the upstream and downstream of the industry, and injects new impetus into the development of the company's electronic ceramics business!

Chip multilayer ceramic capacitors (abbreviated as "MLCC"), as one of the most widely used and fastest-growing chip electronic components globally, have broad application scenarios and market development space. Meanwhile, with the strong support of national industrial policies and local governments, the process of domestic substitution of new materials and new technologies has significantly accelerated, effectively promoting the development of cutting-edge fields such as intelligent manufacturing and high-end MLCC. After years of industry accumulation, Yunzhong Technology has achieved remarkable technological and R&D results in the field of electronic ceramics. Up to now, the company has applied for 67 patents related to electronic ceramics, including 28 domestic and foreign invention applications and 39 utility model applications. It has been granted 41 patents related to electronic ceramics, including 10 invention authorizations and 31 utility model authorizations.

Wang Bin, the chairman and general manager of Yunzhong Technology, stated: "The investment by Xuancheng Kaisheng Industrial Investment this time has opened up a new situation for the development and layout of our company's electronic ceramics industry. It will surely inspire the team to forge ahead with determination, accelerate the rapid development of our MLCC business, and make outstanding contributions to the regional economic development!" "

About Xuancheng Kaisheng Industrial Investment：

Xuancheng Kaisheng Investment is a 100% wholly-owned subsidiary of Xuancheng Kaisheng Holding Group Co., LTD. (referred to as "Kaisheng Group"). Kaisheng Group is a wholly state-owned company registered and established by the Management Committee of Xuancheng Economic Development Zone on November 30, 2018. The group's total assets are approximately 30 billion yuan. Currently, its long-term credit rating as the main body is AA+, and the total investment scale of its projects exceeds 2 billion yuan.

Risk Warning：

This transaction does not constitute a major asset reorganization or stock price sensitive information. We kindly remind all investors to make rational investments and pay attention to investment risks.

Suzhou Yunzhong Electronic Technology Co., LTD