China National Machinery Industry Corporation (CNPC Equipment Engineering): Controlling Subsidiary Terminates Customized Factory Building Lease Cooperation Agreement

People’s Financial News, March 24 — Guoji Jinggong (002046) announced on February 24 that previously, the company’s controlling subsidiary, Zhengzhou Sanmo Superhard Materials Co., Ltd. (“Sanmo Superhard”), signed a cooperation agreement with Zhengzhou Tianjian Juchuang Technology Co., Ltd. (“Tianjian Juchuang”). The agreement stipulates that Sanmo Superhard will lease a customized site built by Tianjian Juchuang according to Sanmo Superhard’s requirements. After signing the cooperation agreement, both parties actively promoted the preliminary design work for the customized factory building. However, they could not reach an agreement on the initial design and budget estimate. After negotiations, both parties signed a “Termination Agreement” on March 24. According to current intentions, Tianjian Juchuang will continue to advance the project construction. After the project is completed and passes acceptance, Sanmo Superhard will conduct a comprehensive assessment based on the factory conditions, rental levels, and other factors to decide whether to lease. Meanwhile, Sanmo Superhard will actively seek other suitable factory spaces and take multiple measures to ensure the demand for production and operation sites, ensuring orderly implementation of capacity plans. The signing of this termination agreement will not have a significant impact on the company’s financial status or operating results for this year.