DKEM announced that the company has pledged 60% of the equity of its controlling subsidiary, Zhejiang Suote Material Technology Co., Ltd., to apply for a loan from the bank not exceeding RMB 400 million. This move aims to optimize the financing structure and to pay or replace the transaction price and expenses for mergers and acquisitions. Zhejiang Suote was established on November 27, 2020, with a registered capital of 869.8 million yuan, mainly engaged in the research and development of new material technology and electronic special materials. This equity pledge is in line with the company's capital utilization plan and long-term development strategy and will not have a significant impact on the company's financial condition or operating results