JINLONG INC: Termination of external investment and negotiation with government departments to return land use rights

On the evening of February 19, JINLONG INC announced that its wholly-owned subsidiary, Jinxing Chuang, successfully acquired the land use rights in Tangxia Town, Dongguan City for 76.2 million yuan, intended for the investment and construction of a production base to engage in the research, development, production, and sales of micro motors, silicone plastic structural components, and other businesses, with a total project investment of 2.4 billion yuan. The company is cautiously advancing this project, and as of now, construction has not yet commenced. Given the significant uncertainties in the current macroeconomic and industry environment, as well as the company's operational status, continuing to advance this project would greatly increase the company's financial pressure, and it is expected that the project's implementation will not achieve the anticipated returns. After careful consideration, the company has decided to terminate this external investment in the construction of the production base to avoid greater losses and reduce risks, and will negotiate with government departments to return the land use rights