According to the Mengcao Ecological announcement, Lujing Ecology, a holding subsidiary of the company, negotiated with the Erlianhot Landscaping Center to prematurely terminate the PPP project for ecological environment management public infrastructure construction in the Erlianhot National Key Development and Open Pilot Zone, and simultaneously carry out debt restructuring. The total amount of compensation for this termination was $513 million, of which 323 million yuan was paid after the special bond funds were issued, and the remaining amount was paid in equal amounts three times at the end of each year from 2027 to 2029. The matter has been reviewed and approved by the company's board of directors. There is no need to submit it to the shareholders' meeting for consideration. It does not constitute a related transaction or major asset restructuring, and has little impact on the company's profits.

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