Meeting Agenda - The second extraordinary general meeting of shareholders will be held on June 30, 2025, at 14:30, lasting half a day [1] - The meeting will include the following proposals: 1. Proposal on the progress of performance commitment compensation for the controlling subsidiary 2. Proposal to adjust the business scope and amend the Articles of Association 3. Proposal to amend company systems 4. Proposal to provide guarantees for affiliated companies [1][2] Proposal Summaries Proposal 1: Performance Commitment Compensation Progress - The controlling subsidiary, Zhejiang High Energy Times Recycling Technology Co., Ltd., plans to sell its 51% stake in Lankai High Energy Lijia Medical Technology Co., Ltd. for 35.4762 million RMB due to unmet performance targets over two consecutive years [4][5] - The performance targets for 2023 and 2024 were not achieved, with net profits of 9.2367 million RMB and 14.2802 million RMB against targets of 10 million RMB and 15 million RMB respectively [5][6] - The transaction is expected to recover cash of 37.27 million RMB, alleviating financial burdens and aligning with the company's long-term strategy [6][7] Proposal 2: Adjustment of Business Scope and Amendment of Articles of Association - The company proposes to expand its business scope to include additional activities such as geological exploration services and precious metal manufacturing [8][9] - The amendments to the Articles of Association will be comprehensive, aligning with current laws and regulations [9] Proposal 3: Revision of Company Systems - The company aims to revise its internal systems to enhance corporate governance and protect investor rights, particularly for minority shareholders [10] Proposal 4: Guarantee for Affiliated Company - The company plans to provide a guarantee of up to 1.5 million RMB for a loan application by its affiliated company, Jin Yu Environment, to support its daily operations [10][11] - Jin Yu Environment has a total asset of approximately 499.80 million RMB and a debt ratio of 67.78% as of March 31, 2025 [12]

Core Viewpoint - The company has decided to sell its 51% stake in its subsidiary, High Energy Lijia Medical Technology Co., Ltd., due to unmet performance targets and strategic misalignment, resulting in a cash recovery of approximately RMB 37.27 million [1][3][4]. Group 1: Acquisition and Performance Commitment - The company acquired a 51% stake in High Energy Lijia to extend its industrial chain and achieve a closed-loop resource utilization in the medical recyclable materials sector [1]. - High Energy Lijia has failed to meet its performance targets for two consecutive years, leading to the decision to sell the stake [2][3]. Group 2: Reasons for Share Transfer - The management of High Energy Lijia and the company found it difficult to align on development strategies and operational philosophies, prompting the sale [1][2]. - The sale price for the 51% stake is set at RMB 35.4762 million, and post-sale, High Energy Lijia will no longer be included in the company's consolidated financial statements [1][3]. Group 3: Performance Compensation Agreement - According to the original investment agreement, if High Energy Lijia fails to meet its performance commitments, the shareholder, Chen Ranhui, is obligated to provide cash or equity compensation [2]. - For the fiscal year 2023, High Energy Lijia reported a net profit of RMB 9.2367 million against a target of RMB 10 million, and for 2024, a profit of RMB 14.2802 million against a target of RMB 15 million [2]. Group 4: Impact of the Transaction - The transaction is viewed as a rational adjustment of the company's asset structure, aligning with its long-term strategic planning and alleviating financial burdens [4]. - The company expects that the sale will improve its profitability by divesting from underperforming assets [4]. Group 5: Approval Process - The independent directors and the board of directors approved the performance compensation and share transfer proposal during meetings held on June 11, 2025, with unanimous support [4][5].