Please note: The following is a translation of the provided Chinese text into English. --- **Explanation:** 1. On November 26, 2018, Guizhou Redstar Co., Ltd. (hereinafter referred to as "Redstar Development") held its third extraordinary shareholders' meeting of 2018, during which the proposal regarding Redstar Development's acquisition of a 75% equity stake in Qingdao Hongdie New Materials Co., Ltd., held by Qingdao Redstar Chemical Group Co., Ltd., was approved. This incentive plan will officially take effect once the relevant industrial and commercial registration changes are completed. 2. On November 20, 2018, Meng Fanzhen submitted a written "Letter of Resignation" to Redstar Development, formally requesting to step down from her positions as Supervisor and Chairperson of the 7th Supervisory Board of Redstar Development due to personal work commitments. Redstar Development has scheduled its fourth extraordinary shareholders' meeting on December 12, 2018, to elect a new supervisor. Meng Fanzhen’s appointment as an incentive recipient will become effective after the newly elected supervisor assumes office.