Luther Environmental Technologies Co., Ltd. Announcement of the shareholders' centralized bidding plan to reduce their shareholdings

Stock code: 688156 Stock Abbreviation: Luther Environment Announcement number: 2021-043

The Board of Directors, all Directors and relevant shareholders of the Company warrant that the contents of this announcement are free from any false statements, misleading statements or material omissions, and assume legal responsibility for the truthfulness, accuracy and completeness of the contents in accordance with law.

Important Content Tips:

● The basic situation of the shareholding of the relevant shareholders

As at the date of this announcement, Mr. Li Xiaobo, a shareholder of Luther Environmental Technology Co., Ltd. (hereinafter referred to as the "Company"), holds 3,739,500 shares in the Company, accounting for 4.0718% of the total share capital of the Company.

The above shares are obtained prior to the Company's initial public offering and were released and listed on 22 September 2021.

● The main content of the centralized auction reduction plan

Due to the shareholders' own capital needs, Mr. Li Xiaobo plans to reduce his shareholding by means of a centralized auction in total of not more than 918,400 shares, i.e. not more than 1% of the total share capital of the company, according to market conditions, and the reduction period is three months after 3 trading days from the date of disclosure of this announcement. Where the reduction is made by means of a centralized auction, the total number of shares to be reduced in any consecutive 90 calendar days shall not exceed 1% of the total share capital of the company.

The reduction price is determined according to the market price, if the company has dividends, stock transfers, capital reserve funds to increase the share capital, rights issue and other ex-dividend matters during the reduction period, the number and proportion of the reduction will be adjusted accordingly.

On September 29, 2021, the Company received the Notification Letter of the Share Reduction Plan from Mr. Li Xiaobo, a shareholder, and hereby announces the relevant reduction plan as follows:

First, the basic situation of the main body of the centralized bidding reduction

There is no consistent actor in the above-mentioned reduction of holdings.

The above-mentioned shareholders have not reduced their shares since the listing.

Second, the main content of the centralized bidding reduction plan

(i) Whether the relevant shareholders have other arrangements □ Yes √ No

(2) Whether the relevant shareholders have previously made commitments on the shareholding ratio, the number of shares held, the holding period, the method of reducing holdings, the number of shares to be reduced, the price of the reduction, etc. √ yes □ no

According to the Prospectus of Luther Environmental Technology Co., Ltd.'s Initial Public Offering of Shares and Listing on the Science and Technology Innovation Board, Mr. Li Xiaobo's commitment to the intention to hold shares and the intention to reduce his shareholding are as follows:

(1) For 12 months from the date of listing of the company's shares, the company shall not transfer or entrust others to manage the pre-IPO shares of the company held directly and indirectly by myself/the company, nor shall the company repurchase such shares.

(2) When I/the enterprise reduces its shareholding according to its own capital needs, it will conscientiously comply with the regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the reduction of shares of listed companies, carefully formulate a stock reduction plan, reduce its shareholding through centralized auction transactions, block transactions, agreement transfers or other legal means, and notify the company three trading days in advance to make an announcement.

(3) I/the company will faithfully fulfill the above commitments and bear the corresponding legal responsibilities. If I/the enterprise obtains income due to non-performance of the commitment, the income obtained belongs to the company, and I/the enterprise will pay the aforementioned income to the company's designated account within 5 days of receiving the income; if the loss is caused to the company or other investors due to the failure of the company/the enterprise to perform the commitments, I/the enterprise will bear the liability for compensation to the company or other investors in accordance with the law.

Whether the proposed reduction is consistent with the previously disclosed commitments √ yes □ no

(3) Whether it is a company that was not profitable at the time of listing, and whether its controlling shareholders, actual controllers, directors, supervisors and senior management intend to reduce their pre-IPO shares □ whether √ no

(4) Other matters requested by this Article

not.

3. The controlling shareholder or the actual controller reduces its holding of the pre-IPO shares

Whether the controlling shareholder or the actual controller intends to reduce the pre-IPO shares □ yes √ no

4. Risk warnings related to the centralized bidding reduction plan

(1) The risk of uncertainty in the implementation of the reduction plan, such as the preconditions for the implementation of the plan, the restrictive conditions and the specific circumstances under which the relevant conditions are achieved or eliminated

During the reduction period, shareholders will comprehensively decide whether to implement and how to implement the share reduction plan according to market conditions, the company's stock price and other factors, and there is uncertainty about the time, price and number of shares to be reduced. The reduction plan will not have an impact on the company's governance structure and continuing operations.

(2) Whether the implementation of the shareholding reduction plan may lead to a change in the control of the listed company □ yes √ no

(3) Other risk warnings

The relevant shareholders of the shareholding reduction plan will strictly comply with the provisions of the Securities Law of the People's Republic of China, several provisions on the reduction of shares by shareholders and directors and supervisors of listed companies, the rules for the listing of stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, and the implementation rules for the reduction of shares by shareholders, directors, supervisors and senior management of listed companies on the Shanghai Stock Exchange. During the period when shareholders reduce their shares in the Company in accordance with the above plan, the Company will strictly comply with relevant laws and regulations and fulfill its information disclosure obligations in a timely manner. Please invest rationally and pay attention to investment risks.

This is hereby announced.

Board of Directors of Luther Environmental Technologies GmbH

October 8, 2021