Shanxi Changcheng Microlight Equipment Co. Ltd. is subject to the COVID-19 lockdown and control measures as follows: From 3 to 6 April 2022, 12 confirmed cases of COVID-19 were newly added in Taiyuan City, Shanxi Province. Xiaodian District, Taiyuan City, where the Company is located, is among the primary centers of the epidemic outbreak.

In light of the prevailing situation of epidemic prevention and control in Taiyuan City, Shanxi Province, the Taiyuan Leading Group for Epidemic Prevention and Control has decided to implement strict prevention and control measures for the entire Xiaodian District (epidemic prevention area) since 6 April. Temporary traffic control has been implemented for the access to Xiaodian District of Taiyuan City (the time and date of lifting such control is subject to further announcement). During such period, all production and business activities of the Company will be temporarily suspended.

This is a temporary situation, which has no material impact on the financial condition and operations of the Company. The Company will make further announcements in case of any further update.