Summary of the company's 2023 semi annual report

1. As of the date of disclosure of this report, the company's 2020 stock issuance and investment projects to specific targets are progressing in an orderly manner. Among them, the first phase of the annual production of 3.5 million sets of new energy vehicle PTC electric heaters project is progressing smoothly, with an annual production line of 750000 sets of water heating electric heaters and an annual production line of 1 million sets of wind heating electric heaters achieving mass production; The second phase of the project has started construction and is expected to be completed by the end of June next year; The design review of the new factory building for the annual production of 60 million shovel type PTC electric heaters has been completed, and the bidding for the construction of the factory building has begun. Other supporting equipment is also being urgently inquired and purchased.

2. As of the date of disclosure of this report, the company's 2022 A-share fundraising project through simplified procedures to specific targets is accelerating. Among them, the wholly-owned subsidiary Dongfang Jiutian's "20000 ton/year pre nickel lithium battery steel substrate project" pre nickel production line pre nickel plating process has been successfully tested in February 2023, and equipment debugging and process indicator improvement are currently being intensified; The pre nickel material produced in the new nickel plating process has stable and good quality, which has been widely recognized by customers; The continuous annealing line is under construction and is expected to be completed and put into trial production in September this year. The equipment installation of the wholly-owned subsidiary Dongfang Ruiji's "Annual Production of 50 High Temperature and Efficient Electric Heating Equipment Project" has been basically completed, and it is expected to be completed and put into trial production by the end of September.

3. The 14th meeting of the 5th Board of Directors, the 13th meeting of the 5th Board of Supervisors, and the first extraordinary general meeting of shareholders in 2023 respectively reviewed and approved the relevant proposals for the 2023 employee stock ownership plan (draft) of the company. On May 22, 2023, the company received the "Confirmation of Securities Transfer Registration" issued by China Securities Depository and Clearing Corporation Shenzhen Branch, stating that 11013242 shares of the company's stock held in the "Zhenjiang Dongfang Electric Heating Technology Co., Ltd. Repurchase Special Securities Account" were transferred to the "Zhenjiang Dongfang Electric Heating Technology Co., Ltd. -2023 Employee Stock Ownership Plan" on May 19, 2023 through non transaction transfer.

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