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Guanghua Technology stated that the signing of this "Strategic Cooperation Agreement" is in line with national policies and the company's long-term strategic development plan. If the projects under this cooperation agreement can be smoothly implemented, it will be beneficial for the company to leverage its comprehensive business advantages, effectively improve its development in the field of recycling waste power lithium batteries, and have a positive impact on the company's future business performance, which is in line with the company's development strategy and the interests of all shareholders. In addition, the cooperation between the company and Guangxi Huaao in the field of waste power lithium battery recycling is a specific practice of implementing the national requirements for power lithium battery recycling, which is in line with the era of green development.

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