Hubei Yihua announced that the 8th meeting of the 11th board of directors of the company reviewed and passed a bill to absorb the wholly-owned subsidiary Hubei Yihua Trading Co., Ltd. to optimize the management structure and reduce management costs. There is no consideration for this merger and acquisition. After completion, Yihua Trading's legal personality will be cancelled. All assets, claims, debts and other rights and obligations will be enjoyed and borne by the company. It does not involve personnel placement, and will not have a significant impact on the company's production, operation and financial situation. This agreement does not constitute a related transaction or major asset restructuring, and there is no need to submit it to the shareholders' meeting for consideration.

Hubei Yihua announced that the 8th meeting of the 11th board of directors of the company reviewed and passed a bill to absorb the wholly-owned subsidiary Hubei Yihua Trading Co., Ltd. to optimize the management structure and reduce management costs. There is no consideration for this merger and acquisition. After completion, Yihua Trading's legal personality will be cancelled. All assets, claims, debts and other rights and obligations will be enjoyed and borne by the company. It does not involve personnel placement, and will not have a significant impact on the company's production, operation and financial situation. This agreement does not constitute a related transaction or major asset restructuring, and there is no need to submit it to the shareholders' meeting for consideration.