Huajin International Holdings Limited announced that, on 23 January 2024, the Group has obtained the licence for port operations (GGG Kou Jing Ying Xu Ke Zheng) issued by Jiangmen Xinhui District Transportation Bureau (Jiang Men Shi Xin Hui Qu Jiao Tong Yun Shu Ju) for berth no. 3 of Huajin Terminal in compliance with relevant laws and regulations. The period of validity of the licence for port operations is 3 years.

The Group has the necessary facilities, equipment and professionals for terminal business. At present, the ferrous resources transported by major steel mills from northern China downstream to Guangdong Province are mainly through the shipment by sea. As most of the ports near the steel distribution centres in southern China can only facilitate with a maximum docking capacity of less than 5,000 deadweight tons, major steel mills in northern China deliver the steel raw materials to the ports in Guangzhou via 10,000-ton vessels and transshipment to the ports near the steel distribution centers in southern China.

With the commencement of the Group's terminal business, the Board believes that the steel raw materials from the major steel mills in northern China can be delivered directly to Huajin terminal, in the southwestern area of the Pearl River Delta of the PRC, via water transportation route by effectively reducing the transfer time and cost. The cold-rolled and galvanized steel processing service business will continue to be the principal business providing a stable source of income to the Group. With broad and diversified customer base, the Board believes that the terminal business will help broaden the income source of the Group with the saving of the transportation costs and time, and boosting distribution and warehousing.

The Board is also pleased to announce that the berth no. 3 ofHuajin Terminal will host its kick-off ceremony on 25 January 2024 to welcome the first cargo ship to enter the port. By order of the Board.

Huajin International Holdings Limited. Xu Songqing. Chairman.