Quzhou Xinan Development updates on asset acquisition progress

Quzhou Xinan Development Co., Ltd. (stock code: 600208) is proceeding with a share issuance to acquire 95.4559% of the shares in Guangdong Xiandao Rare Materials Co., Ltd. and Xiandao Electronic Technology Co., Ltd. from 48 shareholders. Concurrently, the company plans to issue shares to no more than 35 specific investors to raise supporting funds. The transaction value is yet to be finalized.

The board and supervisory committee approved the "Proposal on the Issuance of Shares to Acquire Assets and Raise Supporting Funds and Related Transactions" on August 12, 2025. This acquisition is anticipated to be a related-party transaction but is not expected to constitute a major asset restructuring or backdoor listing based on preliminary unaudited financial data.

As of the latest disclosure, audit and due diligence work related to the transaction remains ongoing. Quzhou Xinan Development will convene another board meeting to review the relevant proposals upon completion of these processes. The transaction is subject to further approvals from the company's board, shareholders, and relevant regulatory bodies, with inherent uncertainties regarding the timing and ultimate realization of these approvals.