Dingshuan-KY Announces Implementation Status of Subsidiary's Derivatives Trading Improvement Plan

1. Factual Date: 06/30/2026 2. Company Name: Longyang Electronics (Kunshan) Co., Ltd. 3. Relationship with Company (Please enter 'Parent' or 'Subsidiary'): Subsidiary 4. Cross-shareholding Ratio: 69.25% 5. Reason for Occurrence: In accordance with the Financial Supervisory Commission's Notice No. 1150345088, the company is required to complete its subsidiary's derivatives trading improvement plan by July 12, 2026, and the board of directors must oversee the implementation. 6. Countermeasures: On June 23, 2026, the company revised its derivatives trading procedures in compliance with the 'Regulations on Loans, Guarantees, and Endorsements by Publicly Issued Companies,' and reported the updates to the Audit and Risk Management Committee and the Board of Directors, thereby completing the necessary improvement measures. 7. Other Matters to be Disclosed (If the subject of the event or resolution is a publicly issued company or above, this significant information also qualifies as a matter under Article 7, Paragraph 9, Item 9 of the Enforcement Rules of the Securities and Exchange Act, which may have a significant impact on shareholders' rights or securities prices): The company will supervise its subsidiary in accordance with the revised 'Procedures for the Acquisition or Disposition of Assets' to ensure that trading volumes and potential losses do not exceed the established limits.