Xinde New Materials: Plans to use no more than 34.3265 million yuan of oversubscribed funds to acquire equity and increase capital

Shindeh New Materials Announcement: The company plans to use oversubscribed funds of 7.15 million yuan to acquire the equity corresponding to an investment of 5.5 million yuan in Fujian Zhongtan New Materials Technology Co., Ltd., held by Xinjiang Jintu Hancheng Investment Partnership (Limited Partnership) (corresponding to 15.71% of the company’s equity before the capital increase); the company also plans to use oversubscribed funds of 5.85 million yuan to acquire the equity corresponding to an investment of 4.5 million yuan in Fujian Zhongtan, held by Zhangzhou Gulei Port Economic Development Zone XingSen Investment Partnership (Limited Partnership) (corresponding to 12.86% of the company’s equity before the capital increase); based on the above share transfers, the company intends to use 20.82 million yuan of oversubscribed funds to increase the capital of the target company (of which 16.02 million yuan will increase the registered capital, and the remaining 4.80 million yuan will be recorded as capital reserve, increasing Fujian Zhongtan’s registered capital from 35 million yuan to 51.02 million yuan). The total oversubscribed funds used for this transaction are planned to be 33.82 million yuan. Prior to this transaction, the company did not hold any shares of the target company. After this transaction, the company intends to acquire 51% of Fujian Zhongtan’s equity (corresponding to 26.02 million yuan of registered capital after the capital increase) by paying oversubscribed funds through the aforementioned share transfer and capital increase methods, and to gain control of Fujian Zhongtan, bringing it into the company’s consolidated financial statements.