Shida Shenghua New Materials Group Co., Ltd. Stock Trading Abnormal Fluctuation Announcement

Log in to the Sina Finance APP and search for [Information Disclosure] to view more evaluation levels.

Stock Code: 603026 Stock Abbreviation: Shida Shenghua Announcement No.: Lin 2026-013

Shida Shenghua New Materials Group Co., Ltd. Stock Trading Abnormal Fluctuation Announcement

The board of directors and all directors of the company guarantee that the content of this announcement does not contain any false records, misleading statements, or significant omissions, and they bear individual and joint responsibility for the authenticity, accuracy, and completeness of its content.

Important Content Reminder:

● Shida Shenghua New Materials Group Co., Ltd. (hereinafter referred to as “the Company”) stock (stock abbreviation: Shida Shenghua stock code: 603026) experienced a cumulative closing price increase deviation of over 20% on March 26 and 27, 2026, for two consecutive trading days, which is classified as abnormal stock trading fluctuation according to the relevant regulations of the “Shanghai Stock Exchange Trading Rules.”

● In the first three quarters of 2025, the Company achieved operating revenue of 4.635 billion yuan, a year-on-year increase of 11.41%, while the net profit attributable to shareholders of the listed company was -62.2018 million yuan, a year-on-year decrease of 652.16%. The main reason for the profit decline in the first three quarters of 2025 compared to the same period last year was due to weak downstream demand, increased production capacity, and falling prices.

● After the Company’s self-examination and inquiries to its controlling shareholders, actual controllers, and other relevant parties, as of the date of this announcement, there is no significant information that should have been disclosed but was not disclosed.

● The Company reminds investors to pay attention to the risks of secondary market trading, make rational decisions, and invest cautiously.

1. Specific Circumstances of Abnormal Stock Trading Fluctuation

The Company’s stock experienced a cumulative closing price increase deviation of over 20% on March 26 and 27, 2026, for two consecutive trading days, which is classified as an abnormal stock trading price fluctuation according to the relevant regulations of the “Shanghai Stock Exchange Trading Rules.”

2. Relevant Circumstances the Company Has Attention to and Verified

In response to the abnormal stock trading fluctuation of the Company, the Company conducted investigations into related matters and inquired relevant parties such as its controlling shareholders and actual controllers. The verification situation is explained as follows:

(1) Production and Operating Conditions

In the first three quarters of 2025, the Company achieved operating revenue of 4.635 billion yuan, a year-on-year increase of 11.41%, while the net profit attributable to shareholders of the listed company was -62.2018 million yuan, a year-on-year decrease of 652.16%. The main reason for the profit decline in the first three quarters of 2025 compared to the same period last year was due to weak downstream demand, increased production capacity, and falling prices.

(2) Significant Matters

After verification with the Company’s controlling shareholders, actual controllers, and other relevant parties, it was confirmed that “as of now, there are no significant matters affecting the abnormal fluctuation of the listed company’s stock trading: there are no other significant information that should have been disclosed but was not disclosed, including but not limited to major asset restructuring, stock issuance, acquisitions, debt restructuring, business restructuring, asset stripping, asset injection, share repurchase, equity incentives, bankruptcy reorganization, major business cooperation, introduction of strategic investors, and other significant matters related to the listed company.”

(3) Media Reports, Market Rumors, and Hot Concepts

After verification by the Company, no other major events that could significantly affect the Company’s stock price occurred; no media reports or market rumors were found that required clarification or response.

(4) Other Stock Price Sensitive Information

After verification by the Company, during this abnormal stock trading fluctuation period, the Company’s directors, senior management personnel, controlling shareholders, actual controllers, and other relevant parties did not buy or sell the Company’s stock.

Currently, there are no significant matters affecting the Company’s stock trading price abnormal fluctuation, including but not limited to major asset restructuring, stock issuance, acquisitions of listed companies, debt restructuring, business restructuring, asset stripping, and asset injection. There is no need to correct or supplement the information previously disclosed by the Company; no other major events that could significantly impact the Company’s stock trading price were found.

3. Risk Reminder

(1) Secondary Market Risk

The Company’s stock experienced a cumulative closing price increase deviation of over 20% on March 26 and 27, 2026, and the Company’s stock price has significantly outperformed the market level in the short term. The Company reminds investors to pay attention to secondary market trading risks, make rational decisions, and invest cautiously.

(2) Production and Operation Risks

In the first three quarters of 2025, the Company achieved operating revenue of 4.635 billion yuan, a year-on-year increase of 11.41%, while the net profit attributable to shareholders of the listed company was -62.2018 million yuan, a year-on-year decrease of 652.16%. The main reason for the profit decline in the first three quarters of 2025 compared to the same period last year was due to weak downstream demand, increased production capacity, and falling prices.

The Company solemnly reminds investors that “Shanghai Securities News,” “China Securities Journal,” “Securities Times,” and “Securities Daily” are the designated newspapers for information disclosure, and the Shanghai Stock Exchange website (www.sse.com.cn) is the designated website for information disclosure. All information from the Company is based on what is published in the aforementioned designated media. Investors are advised to pay attention to investment risks.

4. Board of Directors Statement and Commitment from Relevant Parties

The Company’s board of directors confirms that (aside from the disclosure matters mentioned in the second part) there are no matters that should have been disclosed according to relevant regulations such as the “Stock Listing Rules” that have not been disclosed, nor any plans, negotiations, intentions, agreements, etc., related to such matters. The board of directors is also unaware of any information that should have been disclosed according to relevant regulations such as the “Stock Listing Rules” that has not been disclosed, which may have a significant impact on the trading price of the Company’s stock and its derivatives; the information previously disclosed by the Company does not need to be corrected or supplemented.

This announcement is hereby made.

Board of Directors of Shida Shenghua New Materials Group Co., Ltd.

March 28, 2026

A wealth of information and precise interpretation, all available on the Sina Finance APP.