Announcement of Pledge and Release of Shares by the Controlling Shareholder of HYDSOFT

Recently, HYDSOFT's controlling shareholder, Shenhui Holdings, processed the pledge and release of part of its shares. A total of 19.11 million shares were pledged, accounting for 22.35% of its holdings and 4.73% of the company's total share capital, mainly for the acquisition of 32.0875% of Baode Computing's shares. At the same time, 8.4 million shares were released from pledge, accounting for 9.82% of its holdings and 2.08% of the company's total share capital. As of the announcement date, Shenhui Holdings and other related shareholders had a total of 34.21 million shares pledged, accounting for 8.47% of the company's total share capital. Currently, the risk of pledged shares is controllable and will not affect the company's actual control and operations. The company will continue to disclose relevant information