Zhonghuan Hailu has announced that between June 14 and July 4, the closing price of its shares remained below 85% of the current conversion price of 31.76 yuan per share for ten consecutive trading days. This development is anticipated to activate the criteria for adjusting the conversion price downwards. Should these trigger conditions be met, the company will promptly convene a board meeting on the same day to deliberate on the potential adjustment of the conversion price and will ensure timely compliance with its information disclosure obligations.