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It is worth mentioning that the US Department of Commerce announced the latest "Entity List" on December 2, 2024 local time, and Huada Jiutian and its related subsidiaries were included in the list. In this regard, Huada announced the next day that the company is actively responding to the possible risks of being included in the "entity list". The impact of being included in the entity list by the United States is generally controllable. At present, the company's operation and financial situation are normal, and various businesses are progressing steadily. The company will seize the opportunity of development and accelerate the localization process of EDA tools in the whole process.In the announcement, Huada Jiutian said that after China Electronics Group officially acquired the control right of the company, it will give full play to the resource advantages of China Electronics Group, connect with national ministries and commissions, local governments, central enterprises and relevant industry forces, and further play an active role in key target investment, national project undertaking and industrial policy striving, so as to help Huada Jiutian solve its development needs in terms of capital, technology, team and policies as soon as possible, and help Huada Jiutian become a world-class EDA enterprise with strong international competitiveness and influence.China Electronics entered Huada for nine days with a market value of 66 billion yuan, and the domestic EDA leader was "incorporated"

China Electronics entered Huada for nine days with a market value of 66 billion yuan, and the domestic EDA leader was "incorporated"As an essential tool for integrated circuit design, EDA is used to assist designers in circuit design, simulation and verification, which runs through the design, manufacturing, packaging and testing of integrated circuits.After the directors' adjustment, Huada Jiutian will be included in the consolidated statements of China Electronics Group in terms of financial treatment and managed as a consolidated enterprise of China Electronics Group. At the same time, China Electronics Group plans to adjust Huada Jiutian from a strategic shareholding enterprise to a holding enterprise for management, and the internal management regulations of China Electronics Group on holding enterprises shall apply. The actual controller of Huada Jiutian intends to change from no actual controller to China Electronics Group, the controlling shareholder of the company's largest shareholder.

In the announcement, Huada Jiutian said that after China Electronics Group officially acquired the control right of the company, it will give full play to the resource advantages of China Electronics Group, connect with national ministries and commissions, local governments, central enterprises and relevant industry forces, and further play an active role in key target investment, national project undertaking and industrial policy striving, so as to help Huada Jiutian solve its development needs in terms of capital, technology, team and policies as soon as possible, and help Huada Jiutian become a world-class EDA enterprise with strong international competitiveness and influence.For a long time, the EDA market in China has been monopolized by three giants: Cadence, Synopsys and Siemens EDA. According to the report of China Commercial Industry Research Institute, the market share of the top three enterprises exceeds 70%; The market share of Huada Jiutian currently accounts for 5.9%, ranking first in China.According to official website, China Electronics Group, China Electronics Group was established in May 1989, and it is an important state-owned backbone enterprise directly managed by the central government, with network information as its core business. As of the disclosure date of this announcement, China Electronics Group holds 184,900,804 shares of Huada Jiutian through its holding subsidiary China Electronics Co., Ltd. (hereinafter referred to as "China Electronics Co., Ltd.") and its wholly-owned subsidiary CLP Jintou Holdings Co., Ltd. (hereinafter referred to as "CLP Jintou"), with a total shareholding ratio of 34.06%.