Announces on behalf of subsidiary Huzhou Anli Technology Co., Ltd.concerning arbitration matter

Parties to the legal matter: Huzhou Anli Technology Co., Ltd. Jiangsu Didu Construction Engineering Co., Ltd.

Name of the court or punishing agency of the legal matter:The People’s Court of South Taihu New District, Huzhou, of Zhejiang Province

Reference/Case number of relevant documents of the legal matter:(2023) Zhe 0591 Cai Bao No.40

Date of occurrence of the event:2023/05/15

Details of occurrence (including the matter under dispute):Huzhou Anli Technology Co., Ltd.(hereinafter referred to as Huzhou Anli) and Jiangsu Didu Construction Engineering Co., Ltd. (hereinafter referred to as Jiangsu Didu) signed a construction contract on September 1, 2020.The contract has been confirmed by the Huzhou Arbitration Commission on December 22, 2021 that the contract is rescinded.Huzhou Anli had appointed the lawyer to handle this case and submitted an arbitration application to the Huzhou Arbitration Commission on September 28, 2022.Huzhou Anli received notice from the Huzhou Arbitration Commission that Jiangsu Didu filed a counterclaim for arbitration on March 10, 2023. And requested Huzhou Anli to submit the relevant statement of defense and supporting documents.Today, Huzhou Anli received the notice of property preservation measures from the People’s Court of South Taihu New District, Huzhou, of Zhejiang Province. Jiangsu Didu applied to the court to apply for property preservation for the real estate which under the name of Huzhou Anli, during the Arbitration procedure. The real estate which "Huanzhu Unit HD-04-02-03B-4, Warrant number:Zhejiang (2019) Huzhou City (Wuxing) Real Estate Right No. 0086322". The period of seizure is from May 10, 2023 to 2026 May 09.

Handling procedure: Huzhou Anli has appointed a lawyer to claim that the seizure is unreasonable in relation to property preservation, and to request that the seizure be lifted in order to protect legal rights.

Impact on the Company’s finance and business and projected amount: According to the local court’s question and answer statement, the property preservation did not have a major impact on the company's finances, business and factory construction plan.

Countermeasures and improvement status:Huzhou Anli has appointed a lawyer to claim that the seizure is unreasonable in relation to property preservation, and to request that the seizure be lifted in order to protect legal rights.

Any other matters that need to be specified(the information disclosure also meets the requirements of Article 7, subparagraph 2 of the Securities and Exchange Act Enforcement Rules, which brings forth a significant impact on shareholders rights or the price of the securities on public companies.):None.