Shenzhen Xingyuan Material Technology Co., Ltd. 2025 Annual Report Summary

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Security Code: 300568 Security Abbreviation: Star Source Material Announcement No.: 2026-013

I. Important Notice

The summary of this annual report is drawn from the full text of the annual report. To fully understand the Company’s operating results, financial condition, and future development plans, investors shall read the full text of the annual report carefully at the media designated by the CSRC.

All directors attended the board meeting that deliberated on this report.

The audit opinion issued by RSM China Certified Public Accountants (Special General Partnership) on the Company’s financial statements for this fiscal year is: a standard unqualified opinion.

Non-standard Audit Opinion Notice

□ Applicable √ Not applicable

The Company had not been profitable at the time of listing and has not achieved profitability at present

□ Applicable √ Not applicable

Profit distribution proposal for the reporting period deliberated by the board of directors, or proposal for capital reserve-to-share conversion

√ Applicable □ Not applicable

The profit distribution proposal approved by the board of directors through this meeting is as follows: Based on the Company’s current total share capital of 1,345,710,639 shares, after deducting 28,435,840 shares that the Company has repurchased from the repurchase-dedicated securities account, the resulting share capital is 1,317,274,799 shares. Cash dividends of RMB 0.10 per 10 shares (tax inclusive) shall be distributed to all shareholders, with 0 bonus shares (tax inclusive), and 0 shares shall be converted to all shareholders per 10 shares from capital reserve funds.

The preferred share profit distribution proposal for the current reporting period approved by the board of directors

□ Applicable √ Not applicable

II. Basic Information of the Company

1. Company Profile

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2. Summary of Major Business or Products During the Reporting Period

(I) Overview of the Company’s Main Business

The Company is a national-level high-tech enterprise specializing in R&D, production, and sales of separator films for lithium-ion batteries in the areas of new energy, new materials, and new energy vehicles. The Company is the leading unit responsible for drafting relevant national standards for separator films for lithium-ion batteries and also a deputy chair unit for the editorial board. Separator films for lithium-ion batteries, as a key material for lithium-ion batteries, together with lithium-ion batteries are part of the new energy sector that governments in all countries prioritize supporting and focusing on. With the mission of “Star Source Membrane creates a new life,” the Company focuses on the fields of new energy and new materials, and is committed to contributing to the construction of green energy worldwide.

(II) Overview of the Company’s Principal Products

The separator films produced by the Company mainly include wet-process separator films, dry-process separator films, coated separator films, and various functional separator films. The products are widely used in fields such as new energy vehicles, energy storage power stations, electric bicycles, power tools, aerospace, 3C digital devices, and medical environments. The main situation is as follows:

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(III) Products and Application Areas

At this stage, the demand market for separator films comes from the demand for traction-type lithium-ion batteries. They are mainly applied in emerging application areas such as electric cars, electric bicycles, large electric power tools, aerospace, electric ships, electric aircraft, and so on. With the growth in new energy vehicle sales in 2025, the demand for traction batteries has increased. As the global push for “dual carbon” progresses strongly, the demand for energy-storage batteries is gradually ramping up. Follow-on traction batteries have become another major source of demand for separator films. In addition, driven by the 5G market, markets for consumer segments such as smartphones, smart wearables, smart speakers, wireless earbuds, electronic cigarettes, etc. have grown steadily; the demand for consumer lithium batteries continues to rise, which is another important application area for separator films. Furthermore, with breakthroughs in technologies and industrialization such as sodium-ion batteries in recent years, and with increasingly higher requirements by humanity for the quality of living environment, the application areas of separator films will further expand.

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(IV) Upstream and Downstream Industry Chain of Major Products

The industry in which the Company operates is the battery separator film industry. Separator films, as core components of batteries, are located in the midstream area of the industrial chain. The diagram below shows the industrial chain of new energy vehicles:

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1. Upstream Industries

The upstream industries in the lithium-ion battery separator film industry where the Company operates mainly include chemical industries such as polypropylene (PP), polyethylene (PE), ceramic powder, solid-state electrolyte materials, polymers, white oil, dichloromethane, and various additives.

2. Downstream Industries

The lithium-ion battery separator film industry has a high degree of linkage with downstream battery product terminal application areas. Terminal application areas are mainly concentrated in three industries: new energy, new materials, and new energy vehicles. Because they align with the direction of national industrial structure upgrading and consumption upgrading, they have maintained a growth momentum in recent years. At the same time, lithium-ion battery products play key roles in terminal application areas in the digital electronics field, including phones, tablet computers, laptop computers, wearable smart devices, mobile power supplies, and other digital electronic products, as well as in downstream traction application terminal areas such as new energy vehicles, power tools, energy storage power stations, and electric bicycles. The rapid development of consumer electronics, new energy vehicles, and energy storage industries provides a broad market space for the separator film industry.

(V) Company’s Main Operating Model

1. R&D Model: The Company adopts a technology innovation path of “conceive a batch, conduct preliminary R&D for a batch, conduct R&D for a batch, develop a batch, and apply a batch.” Based on IATF16949, it establishes a scientifically sound and reasonable R&D process. On the basis of collecting and organizing market demand information and information on technological development, the Company carries out the development of new products and applications. After feasibility demonstration, it proceeds through stages such as project initiation, review, design, pilot production, batch production, and acceptance, completing the product R&D process. In addition, the Company uses an information management system to systematically manage and drive the entire separator film R&D process and the full product lifecycle, so as to accelerate the transformation of R&D results.

2. Procurement Model: The Company’s purchased materials are mainly raw materials and auxiliary materials used for the production of battery separator films. The raw materials are base materials such as polypropylene (PP), polyethylene (PE), and additives; the auxiliary materials are general raw materials such as packaging materials and production auxiliary materials. The Company makes predictions based on actual orders and historical data, negotiates with suppliers and distributors, and issues purchase orders. The Company has established a relatively complete supplier selection and evaluation control procedure: it screens suppliers, and manages qualified suppliers in the “List of Qualified Suppliers.” At the same time, it conducts strict assessments of qualified suppliers’ delivery performance and periodic evaluations.

3. Production Model: The Company generally adopts an order-driven production model of “produce according to sales.” It has introduced ERP and MES systems, formulated ISO production process control procedures, and established a set of fast and effective order processing workflows. After an order is signed, the Company carries out full-cycle production management covering the entire process, including production planning, procurement organization, production and warehousing, quality control, and shipment, based on the order product technical parameters, specifications, quantity, delivery date, and other contents. This production model is beneficial for meeting different customers’ requirements, improving on-time delivery rates and customer satisfaction, enhancing the consistency of product quality, reducing inventory levels, thereby reasonably controlling costs and improving the efficiency of capital utilization. In addition, to fully utilize the Company’s production capacity, the Company also conducts normal stock preparation based on the historical sales of past products and combined with customers’ specific needs.

4. Sales Model: The Company mainly adopts a direct sales model with direct sales to end customers. There are sales in both domestic and international markets. The Company mainly obtains orders through ways such as online promotion, negotiating with target customers on-site, participating in customers’ bidding processes, and attending industry exhibitions. Since the lithium-ion battery material system is complex and the manufacturing process requires high-precision control, separator film suppliers are required to provide tailored technical solutions and professional and timely pre-sales, in-sales, and after-sales technical support and services under different material systems and control systems, to ensure the excellent quality of lithium-ion battery products. To address the issues of widely distributed customers, fast development speed, and large scale differences, in its management approach the Company adopts a parallel structure of regional management and major project management, maximizing the utilization of market resources to enable rapid response to product technology, product quality, and logistics transportation needs, and rapid response to customer demand. For strategic customers, based on their specific requirements for product technical parameters, customized production is carried out to ensure stable supply of products and their high-performance requirements. Meanwhile, based on product series, the Company sets up dedicated product managers to guide customer needs and provide suitable separator film technical solutions.

(VI) Situation of the industry the Company belongs to

The industry in which the Company operates is the lithium-ion battery separator film industry, which is a key materials industry in the new energy, new materials, and new energy vehicle fields. According to the industry directory and classification principles in the “Self-regulatory Guidance No. 4—Industry Information Disclosure for ChiNext listed companies of the Shenzhen Stock Exchange” (revised in 2023), the separator film industry falls under “New energy industry—business related to the lithium-ion battery industrial chain.”

Separator films are a sub-sector of the light industry. As one of the key battery materials, they are an important part of its industrial chain. Separator films have good mechanical properties, chemical stability, and high-temperature shutdown performance. They can isolate the battery’s positive and negative electrodes, allow lithium ions to pass through, and prevent battery explosion caused by high temperatures, thereby improving the overall performance of lithium-ion batteries and giving lithium-ion batteries clear advantages over traditional lead-acid and nickel-cadmium batteries in energy density, cycle life, environmental friendliness, and safety. At present, separator films are widely used in fields such as new energy vehicles, energy storage power stations, electric bicycles, power tools, aerospace, medical devices, and digital electronic products.

From a global perspective overall, in the past the global market share of lithium battery separator films was mainly held by Japan, the United States, and South Korea. In recent years, with domestic companies’ breakthroughs in separator film preparation processes and increased capital investment, domestically produced lithium-ion battery separator film products have gradually entered overseas markets, and the market share of separator film companies in Japan, the United States, and South Korea has decreased significantly. In 2025, Chinese companies held more than 92% of the global separator film market share. In recent years, the lithium separator film industry has developed at a relatively high speed, and shipment volumes have increased significantly. According to research institutions’ data from Xinlu Lithium Dian, using the number of separator films required per GWh of lithium battery, it is estimated that by 2030 global lithium battery production will reach more than 6,445 GWh, and separator film shipments will reach 90 billion square meters, of which shipments of about 83 billion square meters are expected to be provided by Chinese companies.

The Company is one of the domestic companies that began separator film R&D and manufacturing earlier and is in a leading position in the industry. After more than twenty years of technical accumulation, the Company can well balance key factors of separator films such as thickness, pore size, porosity, mechanical properties, thermal shrinkage, and moisture content overall. Its separator film products’ quality is at an international high-quality standard, and it is one of the mainstream suppliers of mid-to-high-end lithium-ion battery separator films globally. The Company fully masters dry-process, wet-process, and coated separator film preparation technologies. It has independent intellectual property rights for separator micropore preparation processes, and has built internationally advanced separator production lines. At the same time, the Company has established a technical innovation system characterized by “the enterprise as the main body, and the combination of production, education, and research,” constantly improving separator design, development, and testing platforms, and strives to build a complete engineering technology development industrial chain integrating basic research, process technology research, industrialized production and development, design of complete sets of equipment, product performance testing and evaluation, and market application promotion services, laying a solid technical foundation for the Company’s sustained development. With the continuous improvement of the Company’s separator film process technology and product quality management level, the Company’s overall technical level—including its separator film design and development capabilities, product preparation technologies, and product performance indicators—is at a leading position across the global separator film industry.

3. Major Accounting Data and Financial Indicators

(1) Major Accounting Data and Financial Indicators for the Past Three Years

Does the Company need to retroactively adjust or restate previously disclosed accounting data?

□ Yes √ No

RMB

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(2) Major Accounting Data by Quarter

Unit: RMB

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Whether the above financial indicators or their summed figures have material differences from the financial indicators related to the Company’s quarterly reports and semi-annual reports already disclosed

□ Yes √ No

4. Share Capital and Shareholder Information

(1) Number of ordinary shareholders and number of preferred shareholders with voting rights restored, and shareholding of the top 10 shareholders

Unit: Shares

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Shareholding of shareholders with more than 5%, and shareholding of the top 10 shareholders and the top 10 shareholders of unrestricted shares subject to no selling restrictions participating in the securities lending and repurchase (securities lending) business

□ Applicable √ Not applicable

Changes in the top 10 shareholders and the top 10 shareholders of unrestricted shares subject to no selling restrictions due to securities lending/return reasons under the securities lending and repurchase business compared with the previous period

□ Applicable √ Not applicable

Does the Company have arrangements with differences in voting rights

□ Applicable √ Not applicable

(2) Total number of preferred shareholders and shareholding of the top 10 preferred shareholders

There are no preferred shareholders during the reporting period.

(3) Disclosure of ownership and control relationships between the Company and the actual controller in the form of a box diagram

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5. Bonds existing as of the date when the annual report was approved and issued

□ Applicable √ Not applicable

III. Important Matters

1. The Company subscribed with its own funds of RMB 40 million for the equity interest in Shenzhen Qianhai Runmu Investment Partnership Enterprise (Limited Partnership) (hereinafter referred to as “Runmu Investment” and “the Partnership Enterprise”). The total amount of Runmu Investment’s subscribed capital contribution is RMB 100 million. For specific details, please refer to the Company’s disclosure on the website of Juchao Information (

Pursuant to the “Partnership Agreement of Shenzhen Qianhai Runmu Investment Partnership Enterprise (Limited Partnership),” the decision to dissolve the Partnership Enterprise and matters related to liquidation shall require approval by partners representing more than three-fifths of the number of partners of the Partnership Enterprise (including three-fifths).

On January 13, 2025, by unanimous agreement of all partners, a resolution was formed: to agree to dissolve this Partnership Enterprise and enter into the liquidation process, and to have the liquidator liquidate the Partnership Enterprise in accordance with law. The liquidator shall be responsible for liquidating the enterprise’s assets and notifying or announcing the creditors, handling unresolved business matters related to liquidation; paying the outstanding taxes; clearing creditor-debtor relationships; handling the remaining assets after the enterprise’s settlement of debts; and representing the enterprise to participate in civil litigation and other relevant matters. The approval for the above decisions shall, in accordance with the “Partnership Enterprise Law of the People’s Republic of China,” notify the creditors of the Partnership Enterprise and publish an announcement in a newspaper regarding the deregistration of the Partnership Enterprise.

On February 21, 2025, the liquidation of the Partnership Enterprise was completed. After deducting fees related to the Partnership Enterprise, the Company received distributed payments totaling RMB 42.3981 million. The overall investment period’s total return for this project was RMB 2.3981 million. This transaction has a relatively small impact on the Company’s profit or loss for 2025; the final result shall be based on the outcome confirmed after the annual audit by the auditors.

On March 12, 2025, Shenzhen Qianhai Runmu Investment Partnership Enterprise (Limited Partnership) completed the relevant procedures.

2. On April 28, 2025, the Company convened the 14th meeting of the sixth session of the board of directors, which approved the resolution on “Public issuance of H-share stocks and listing on The Stock Exchange of Hong Kong Limited.” The Company plans to apply to issue overseas-listed foreign shares (H shares) and list on the Main Board of The Stock Exchange of Hong Kong Limited. On July 7, 2025, it submitted an application to The Stock Exchange of Hong Kong Limited for the issuance of overseas-listed foreign shares (H shares) and listing on the Main Board on the Main Board of the HKEX. On January 30, 2026, it updated the issuance application and some company information and financial data, etc. For specific details, please refer to the Company’s disclosures on Juchao Information Network (www.cninfo.com.cn): the announcement titled “Announcement on the Company’s Submission to The Stock Exchange of Hong Kong Limited of an Application for the Issuance and Listing of Overseas Listed Foreign Shares (H Shares) and the Publication of Application Materials,” and the announcement titled “Announcement on the Progress of Issuance of H Shares and Listing” (Announcement Nos.: 2025-074, 2026-005).

3. On December 26, 2025, the Company convened the 21st meeting of the sixth session of the board of directors, and on January 12, 2026, it convened the first extraordinary general meeting of shareholders in 2026, which approved the resolution on “Proposal for the Cancellation of Repurchased Shares.” It agreed to cancel 2,413,500 repurchased shares stored in the repurchase-dedicated account. After review and confirmation by the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., the Company completed the above cancellation procedures on January 21, 2026. After this cancellation is completed, the total number of the Company’s shares will change from 1,348,124,139 shares to 1,345,710,639 shares. For specific details, please refer to the Company’s disclosures on Juchao Information Network (www.cninfo.com.cn): the announcement titled “Announcement on the Cancellation of Repurchased Shares,” the announcement titled “Announcement on Capital Reduction Due to Cancellation of Repurchased Shares and Notification to Creditors,” and the announcement titled “Announcement on Completion of Cancellation of Repurchased Shares and Changes in Shares” (Announcement Nos.: 2025-107, 2026-002, 2026-003).

4. During the reporting period, the Company’s subsidiary Star Source International Holdings (Singapore) Pte. Ltd. purchased shares of Japan Magnetic Technology Holdings Co., Ltd. and sold all of them, obtaining net gains of RMB 71.45 million.

Board of Directors of Shenzhen Star Source Materials Technology Co., Ltd.

March 31, 2026

Security Code: 300568 Security Abbreviation: Star Source Materials Announcement No.: 2026-015

Shenzhen Star Source Materials Technology Co., Ltd.

Announcement on the Company’s 2025 Annual Profit Distribution Proposal

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, complete, and there are no false records, misleading statements, or major omissions.

I. Approval Procedure

Shenzhen Star Source Materials Technology Co., Ltd. (hereinafter referred to as the “Company”) convened the 24th meeting of the sixth session of the board of directors on March 30, 2026. The meeting deliberated and approved the resolution on “Proposal for the Company’s 2025 Annual Profit Distribution.” This proposal still needs to be submitted to the Company’s 2025 annual general meeting of shareholders for approval.

II. Basic Information of the Profit Distribution Proposal

1. This is the Company’s 2025 annual profit distribution plan.

2. For the year 2025, the Company did not have any circumstances requiring loss recovery or the appropriation of any discretionary surplus reserves.

3. After audit by RSM China Certified Public Accountants (Special General Partnership), the net profit attributable to shareholders of listed companies for 2025 was RMB 36,367,767.51, and the net profit of the parent company (i.e., Shenzhen Star Source Materials Technology Co., Ltd.) was RMB -22,217,129.58. Adding the undistributed profits at the beginning of the period of RMB 319,861,232.44, and deducting profit distributions for 2024 of RMB 66,595,335.51, the actual distributable profits at the end of 2025 were RMB 231,048,767.35.

4. Taking into account the Company’s development stage and capital needs, comprehensively considering reasonable returns to shareholders while also balancing the Company’s sustainable development, the board of directors proposes the following profit distribution plan for 2025: The Company’s total share capital is 1,345,710,639 shares. The number of shares already repurchased in the Company’s repurchase account is 28,435,840 shares. It plans to use the total share capital of 1,317,274,799 shares after deducting the already repurchased shares from the Company’s repurchase dedicated account as the base (according to relevant regulations, shares of the Company held by the listed company through the repurchase dedicated account do not enjoy the right to participate in profit distribution). Cash dividends of RMB 0.10 per 10 shares (tax inclusive) shall be distributed to all shareholders; the total cash dividends to be distributed are RMB 13,172,747.99. No bonus shares shall be distributed. No capital reserve-to-share conversion shall be made. Between the disclosure date of the profit distribution proposal and the equity registration date for the implementation of the equity distribution, if the Company’s total share capital changes, the total amount of cash dividends shall be adjusted based on the principle of keeping the distribution ratio unchanged.

5. Total accumulated cash dividends for 2025: The Company did not distribute quarterly dividends or semi-annual dividends in 2025. If the above proposal is approved by the general meeting of shareholders, the Company’s total cash dividends for 2025 are expected to be RMB 13,172,747.99. In 2025, the Company used cash as consideration and implemented and completed share repurchases through the centralized bidding method, with the repurchase amount of RMB 299,966,033.07 (excluding transaction expenses). Therefore, the combined total of cash dividends and share repurchases for 2025 is expected to be RMB 313,138,781.06, accounting for 861.03% of the net profit attributable to shareholders of the Company for 2025.

III. Specific Details of the Cash Dividend Distribution Plan

(I) The Company’s 2025 cash dividend distribution plan does not involve any other risk-warning circumstances

1. Cash dividend distribution plan indicators

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2. The total amount of accumulated cash dividends paid in the last three accounting years reached RMB 375,150,183.70, which is higher than 30% of the average annual net profit in the last three accounting years. Therefore, the Company does not fall under any possible other risk-warning circumstances as set out in Article 9.4, Item (8) of the “Shenzhen Stock Exchange GEM Stock Listing Rules.”

(II) Explanation of the reasonableness of the cash dividend distribution plan

The Company’s 2025 profit distribution proposal complies with the CSRC’s “Notice on Further Implementing Matters Regarding Cash Dividends of Listed Companies,” the “Administrative Guidance No. 3—Cash Dividends of Listed Companies,” and the “Articles of Association,” among other regulations. The relevant plan complies with the profit distribution policy and profit distribution plan determined by the Company, the shareholders’ long-term return plan, and related commitments made by the Company. There is no material difference between the Company’s cash dividend level and the average level of listed companies in the same industry. This profit distribution proposal meets the needs of the Company’s future operating and development, and it has legality, compliance, and reasonableness.

IV. Relevant Risk Warning

This profit distribution proposal will only be implemented after being submitted to and approved by the Company’s 2025 annual general meeting of shareholders. There is still uncertainty regarding this matter. Investors are kindly reminded to pay attention to investment risks.

V. Documents for Reference

1. The resolution of the 24th meeting of the sixth session of the board of directors.

Announcement hereby given.

Board of Directors of Shenzhen Star Source Materials Technology Co., Ltd.

March 31, 2026

Security Code: 300568 Security Abbreviation: Star Source Materials Announcement No.: 2026-016

Shenzhen Star Source Materials Technology Co., Ltd.

Announcement on the Board of Directors Regarding the Provision of Guarantees by the Company for the Financing of Its Subsidiaries

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, complete, and there are no false records, misleading statements, or major omissions.

Special Risk Warning:

The Company and its subsidiaries are expected to provide total guarantee额度 for 2026 exceeding 100% of the net assets audited for the most recent period. Investors are kindly reminded to pay attention to the relevant risks.

I. Overview of the Guarantee Arrangements

To meet the funding needs for production, construction, and operation of its subsidiaries, Shenzhen Star Source Materials Technology Co., Ltd. (hereinafter referred to as the “Company”)’s subsidiaries are expected to apply to banks and other financial institutions for comprehensive credit facilities, and the Company or its subsidiaries shall provide guarantees totaling no more than RMB 17.8 billion in total. The guarantee methods include, but are not limited to, joint liability guarantees, pledge of subsidiaries’ equity, asset mortgages, asset pledges, etc. Among them, guarantees provided to subsidiaries with an asset-liability ratio below 70% are expected to total no more than RMB 10.6 billion (including this figure), and guarantees provided to subsidiaries with an asset-liability ratio above 70% are expected to total no more than RMB 7.2 billion (including this figure). The specific guarantee limits are as follows:

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Within the total guarantee limit of RMB 17.8 billion, except that the combined guarantee limit of RMB 7.2 billion for Star Source Materials (Foshan) New Materials Technology Co., Ltd. and Star Source Materials (Nantong) New Materials Technology Co., Ltd. will not be adjusted, the Company’s management may reallocate the guarantee amounts among other subsidiaries based on actual operating circumstances.

On March 30, 2026, the 24th meeting of the sixth session of the board of directors approved the resolution on “Proposal on the Company’s Provision of Guarantees for Subsidiaries’ Bank Financing” with 7 votes in favor, 0 votes against, and 0 abstentions. After the board’s approval within the Company, this guarantee matter will still need to be submitted to the Company’s 2025 annual general meeting of shareholders for approval before implementation. The guarantee period will run from the date of approval by the Company’s 2025 annual general meeting of shareholders up to the date when the 2026 annual general meeting of shareholders is held. During the authorization period, the Company’s subsidiaries may cyclically use the above guarantee limits.

II. Basic Information of the Parties to Be Guaranteed

(I) Basic information of Hefei Star Source

Company name: Hefei Star Source New Energy Materials Co., Ltd.

Establishment date: January 5, 2016

Registered capital: RMB 650,000,000

Legal representative: Wang Yongguo

Address: No. 128 Chengxi Avenue, Economic Development Zone, Lujang County, Hefei City, Anhui Province

Business scope: R&D, production, sales and services of lithium-ion battery separator films and various functional films (all of the above do not include projects requiring prior approval and prohibited projects stipulated by the state); to operate the export of the Company’s products and technologies and the import of machinery equipment, spare parts, raw and auxiliary materials and technologies required by this enterprise (except for goods and technologies restricted to or prohibited for import and export by the state); road transportation of ordinary goods. (Projects requiring approval according to law may be carried out only after approval by relevant departments.)

Relationship with the Company: The Company holds 41.54% of its equity. According to Hefei Star Source’s articles of association, the Company exercises voting rights in proportion to its 41.54% equity held in Hefei Star Source. At the same time, subject to ensuring that Hefei Chengjian Investment Holding Co., Ltd.’s average annualized return rate for each year (unless otherwise specified in a resolution), the Company enjoys 60% of the remaining distributable profits of Hefei Star Source. The Company also has the majority seats on the board of directors of Hefei Star Source, and can, through controlling the appointment or approval of Hefei Star Source’s key management personnel including the general manager and finance, production, technology, human resources, etc., and by deciding major matters of Hefei Star Source based on its own interests. Therefore, through the above arrangements, the Company can actually control the day-to-day business and management activities of Hefei Star Source. As a result, the Company has control over Hefei Star Source and includes it in the scope of consolidated financial statements.

Key financial data: As of December 31, 2025, Hefei Star Source’s total assets were RMB 1,275,700,327.54, total liabilities were RMB 627,601,012.55, and net assets were RMB 648,099,314.99. Its asset-liability ratio was 49.20%. In 2025, operating revenue was RMB 450,946,591.86 and net profit was RMB 95,041,458.15.

Hefei Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(II) Basic information of Jiangsu Star Source

Company name: Jiangsu Star Source New Materials Technology Co., Ltd.

Establishment date: March 12, 2018

Registered capital: RMB 300,000,000

Legal representative: Zhu Jijun

Address: No. 999 Changqing Road, Lucheng Subdistrict, Changzhou Economic Development Zone

Business scope: Permitted projects: road cargo transportation (excluding hazardous goods) (Projects requiring approval according to law may be carried out only after approval by relevant departments; specific business items shall be based on the approval results). General projects: manufacturing of new membrane materials; sales of new membrane materials; manufacturing of plastic products; battery manufacturing; sales of plastic products; R&D of new materials technology; production of battery spare parts; software development; sales of batteries; technology services, technology development, technology consulting, technology exchange, technology transfer, technology extension; sales of battery spare parts; import and export agency; technology import and export; goods import and export (except for projects that must be approved according to law, business may be conducted independently based on a business license in accordance with law).

Relationship with the Company: Jiangsu Star Source is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, Jiangsu Star Source’s total assets were RMB 3,053,007,967.43, total liabilities were RMB 1,408,410,625.07, and net assets were RMB 1,644,597,342.36. Its asset-liability ratio was 46.13%. In 2025, operating revenue was RMB 1,305,839,138.84 and net profit was RMB -28,638,044.60.

Jiangsu Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(III) Basic information of Changzhou Star Source

Company name: Changzhou Star Source New Energy Materials Co., Ltd.

Establishment date: April 5, 2017

Registered capital: RMB 300,000,000

Legal representative: Zhu Jijun

Address: No. 888 Xingdong Road, Changzhou City

Business scope: Permitted projects: road cargo transportation (excluding hazardous goods) (Projects requiring approval according to law may be carried out only after approval by relevant departments; specific business items shall be based on the approval results). General projects: manufacturing of new membrane materials; sales of new membrane materials; manufacturing of plastic products; battery manufacturing; production of battery spare parts; sales of plastic products; sales of batteries; R&D of new materials technology; technology services, technology development, technology consulting, technology exchange, technology transfer, technology extension; technology import and export; goods import and export; import and export agency; software development; sales of battery spare parts (except for projects that must be approved according to law, business may be conducted independently based on a business license in accordance with law).

Relationship with the Company: Changzhou Star Source is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, Changzhou Star Source’s total assets were RMB 3,444,230,531.18, total liabilities were RMB 1,814,454,783.32, and net assets were RMB 1,629,775,747.86. Its asset-liability ratio was 52.68%. In 2025, operating revenue was RMB 602,906,928.23 and net profit was RMB 87,223,464.11.

Changzhou Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(IV) Basic information of Nantong Star Source

Company name: Star Source Materials (Nantong) New Materials Technology Co., Ltd.

Establishment date: June 18, 2021

Registered capital: RMB 10,000,000,000

Legal representative: Liu Rui

Address: No. 69 Hexingdong Road, Development Zone, Nantong City, Jiangsu Province

Business scope: Permitted projects: road cargo transportation (excluding hazardous goods); goods import and export; technology import and export (Projects requiring approval according to law may be carried out only after approval by relevant departments; specific business items shall be based on the approval results). General projects: R&D of new materials technology; new materials technology extension services; battery manufacturing; plastic product manufacturing; sales of plastic products; software development (except for projects that must be approved according to law, business may be conducted independently based on a business license in accordance with law).

Relationship with the Company: Nantong Star Source is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, Nantong Star Source’s total assets were RMB 5,856,618,537.78, total liabilities were RMB 4,524,076,728.15, and net assets were RMB 1,332,541,809.63. Its asset-liability ratio was 77.25%. In 2025, operating revenue was RMB 1,790,094,257.42 and net profit was RMB 6,022,164.23.

Nantong Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(V) Basic information of Foshan Star Source

Company name: Star Source Materials (Foshan) New Materials Technology Co., Ltd.

Establishment date: February 15, 2023

Registered capital: RMB 1,000,000,000

Legal representative: Liu Weiming

Address: Room 220, Building 3, Dongliou Yougu North Yard, No. 1 East II Area, Jiansha Road, Dansao Town, Nanhai District, Foshan City

Business scope: General projects: R&D of new materials technology; new materials technology extension services; battery manufacturing; plastic products manufacturing; sales of plastic products; software development; goods import and export; technology import and export; general equipment manufacturing (excluding manufacturing of special equipment); special equipment manufacturing (excluding manufacturing of licensed specialized equipment). (Except for projects that must be approved according to law, business may be conducted independently based on a business license in accordance with law.) Permitted projects: road cargo transportation (excluding hazardous goods). (Projects requiring approval according to law may be carried out only after approval by relevant departments; specific business items shall be based on the approval documents or permits.)

Relationship with the Company: Foshan Star Source is a controlling subsidiary of the Company, and the Company holds 60% of its equity.

Key financial data: As of December 31, 2025, Foshan Star Source’s total assets were RMB 3,443,573,305.73, total liabilities were RMB 2,455,496,311.21, and net assets were RMB 988,076,994.52. Its asset-liability ratio was 71.31%. In 2025, operating revenue was RMB 377,958,579.46 and net profit was RMB -12,931,282.03.

Foshan Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(VI) Basic information of Nantong Clean New Energy

Company name: Star Materials Clean Energy (Nantong) Co., Ltd.

Establishment date: March 6, 2023

Registered capital: RMB 20,000,000

Legal representative: Yu Ping

Address: No. 69 Hexingdong Road, Development Zone, Nantong City, Jiangsu Province

Business scope: General projects: R&D of emerging energy technologies; sales of new energy power equipment; service for biomass energy technology; technology services, technology development, technology consulting, technology exchange, technology transfer, technology extension; energy storage technology services; engineering and technology research and experimental development; battery sales; sales of environmental protection-specific equipment; R&D of resource recycling utilization technology; solar power generation technology services; sales of photovoltaic equipment and components; sales of wind farm-related equipment; wind power generation technology services; R&D of new materials technology; industrial engineering design services; engineering management services; energy conservation management services (except for projects that must be approved according to law, business may be conducted independently based on a business license in accordance with law).

Relationship with the Company: Nantong Clean New Energy is a wholly-owned subsidiary of the Company. Its wholly-owned subsidiary Shenzhen Star Source Clean New Energy Co., Ltd. holds 100% of its equity.

Key financial data: As of December 31, 2025, Nantong Clean New Energy’s total assets were RMB 30,666,102.87, total liabilities were RMB 617,918.87, and net assets were RMB 30,048,184.00. Its asset-liability ratio was 2.01%. In 2025, operating revenue was RMB 15,169,497.82 and net profit was RMB 9,157,518.38.

Nantong Clean New Energy is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(VII) Basic information of the European holding company

Company registered name: Senior Material Holding Company (Europe) AB

Chinese company name: Star Source Materials Holding (Europe) Limited Liability Company

Company type: limited liability company

Registered capital: 25,000 Swedish kronor

Registered address: Svista Lagerv?g 8,633 62 Eskilstuna

Equity structure: The Company holds 100% of its equity.

Business scope: Directly or indirectly invest, produce and sell lithium battery separator films and various functional films, and activities related thereto

Relationship with the Company: The European holding company is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

As of December 31, 2025, the European holding company’s total assets were RMB 2,035,223,686.40, total liabilities were RMB 1,146,129,976.38, and net assets were RMB 889,093,710.02. Its asset-liability ratio was 56.31%. In 2025, operating revenue was RMB 0.00 and net profit was RMB -3,213,038.02.

The European holding company is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(VIII) Basic information of Hong Kong Star Source

Company name: Star Source Materials International (Hong Kong) Co., Ltd.

Establishment date: March 7, 2017

Registered capital: HKD 30,000,000

Business scope: Engaged in R&D, production, sales, agency, and trade imports and exports of products.

Relationship with the Company: Hong Kong Star Source is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, Hong Kong Star Source’s total assets were RMB 84,899,421.22, total liabilities were RMB 24,010,030.56, and net assets were RMB 60,889,390.66. Its asset-liability ratio was 28.28%. In 2025, operating revenue was RMB 46,164,062.47 and net profit was RMB 101,799.25.

Hong Kong Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(IX) Basic information of InnoWei

Company name: InnoWei New Materials Technology (Malaysia) Co., Ltd.

Establishment date: August 18, 2024

Registered capital: 1,422,327,491 Malaysian ringgit

Business scope: Manufacturing and sales of industrial products; manufacturing and sales of batteries and battery components; R&D, production and services for high-tech products

Relationship with the Company: InnoWei is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, InnoWei’s total assets were RMB 4,175,696,292.24, total liabilities were RMB 1,654,609,394.29, and net assets were RMB 2,521,086,897.95. Its asset-liability ratio was 39.62%. In 2025, operating revenue was RMB 17,999,536.99 and net profit was RMB 62,966,894.07.

InnoWei is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(X) Basic information of Singapore Star Source

Company name: Star Source International Holdings (Singapore) Co., Ltd.

Registered capital: SGD 2.5 million

Registered address: 1001 JALAN BUKIT MERAH, #07-08, SINGAPORE (159455)

Business scope: R&D and sales of lithium-ion battery separator films and various functional films; introduction and cooperation of talents and technologies in the fields of battery separator films and functional films; import of battery separator film and functional film raw materials and equipment; investment management

Relationship with the Company: Singapore Star Source is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, Singapore Star Source’s total assets were RMB 4,430,543,478.54, total liabilities were RMB 1,140,720,800.82, and net assets were RMB 3,289,822,677.72. Its asset-liability ratio was 25.75%. In 2025, operating revenue was RMB 969,237,860.91 and net profit was RMB 102,043,264.49.

Singapore Star Source is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(XI) Basic information of InnoWei (Singapore) Co., Ltd.

Company name: InnoWei (Singapore) Co., Ltd.

Registered capital: 1 Singapore dollar

Registered address: 460 ALEXANDRA ROAD, #11-06 MTOWER, SINGAPORE (119963)

Business scope: Equity investments; factory operation management

Relationship with the Company: InnoWei (Singapore) Co., Ltd. is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, InnoWei (Singapore) Co., Ltd.’s total assets were RMB 3,283,034,895.13, total liabilities were RMB 541,675,530.86, and net assets were RMB 2,741,359,364.27. Its asset-liability ratio was 16.50%. In 2025, operating revenue was RMB 762,178,503.26 and net profit was RMB 978,528.91.

InnoWei (Singapore) Co., Ltd. is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

(XII) Basic information of Star Source (United States)

Company name: GreenNewEnergy Materials Inc.

Registered capital: USD 10,000

Registered address: 1011 Lincoln Commerce Ct, NC 28037, USA

Business scope: Production and sales of battery separator films

Relationship with the Company: Star Source (United States) is a wholly-owned subsidiary of the Company. The Company holds 100% of its equity.

Key financial data: As of December 31, 2025, Star Source (United States)’s total assets were RMB 937,089,173.63, total liabilities were RMB 593,191,480.33, and net assets were RMB 343,897,693.30. Its asset-liability ratio was 63.30%. In 2025, operating revenue was RMB 0.00 and net profit was RMB -9,640,384.76.

Star Source (United States) is not a party subject to enforcement by trust-breaking (dishonesty) under court rulings

III. Main Contents of the Guarantee Agreements

The Company has not yet signed agreements for the above external guarantee matters with relevant institutions. This matter is the determination of the total arrangements for the annual guarantees. The specific contents of the relevant “Guarantee Agreements” will be jointly negotiated and determined by the Company and the subsidiaries being guaranteed with the banks.

IV. Board’s Opinion

The board of directors believes: The guarantee limits mainly serve the production, construction, and operational development needs of the subsidiaries. The subsidiaries to be guaranteed are currently in stable financial condition, and financial risks are controllable. This guarantee meets the Company’s overall interests and is conducive to supporting the operation and sustainable development of the subsidiaries. There is no situation that violates relevant laws and regulations. It does not harm the interests of listed companies and shareholders. The board of directors agrees to the above guarantee actions.

V. The Company’s Cumulative External Guarantees and Overdue Guarantees

As of the date of disclosure of this announcement, the actual outstanding guarantee balance of the Company and its subsidiaries is RMB 616.32667 million, accounting for 61.20% of the Company’s net assets audited for 2025. All of the above guarantees comply with the relevant regulations of the CSRC and there are no illegal guarantees. The Company has no overdue guarantees and no guarantees have been provided to controlling shareholders, actual controllers, and their related parties.

VI. Documents for Reference

1. The resolution of the 24th meeting of the sixth session of the board of directors.

Announcement hereby given.

Board of Directors of Shenzhen Star Source Materials Technology Co., Ltd.

March 31, 2026

Security Code: 300568 Security Abbreviation: Star Source Materials Announcement No.: 2026-017

Shenzhen Star Source Materials Technology Co., Ltd.

Board Resolution on the Special Report on the Deposit, Management and Use of Proceeds from the Offering in 2025

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, complete, and there are no false records, misleading statements, or major omissions.

In accordance with the relevant provisions of the China Securities Regulatory Commission’s “Rules for the Supervision of Proceeds from the Offering of Listed Companies,” the Shenzhen Stock Exchange’s “Self-regulatory Guidance of the Shenzhen Stock Exchange No. 2—for GEM listed companies: standardized operation,” and the Shenzhen Stock Exchange’s “Self-regulatory Guidance for GEM listed companies No. 2—announcement format,” the deposit, management, and use of the proceeds from the offering of Shenzhen Star Source Materials Technology Co., Ltd. (hereinafter referred to as the “Company”) in 2025 are hereby explained as follows:

I. Basic Information on the Proceeds from the Offering

(I) Actual amount of proceeds raised and date of receipt of funds

1. Proceeds raised from the stock issuance to specific targets in 2021

Approved by the CSRC with document No. CSRC License [2022] 891, and with the approval of the Shenzhen Stock Exchange, the Company issued 125,673,249 shares to specific targets. The total amount of proceeds raised was RMB 3,499,999,984.65. After deducting issuance costs of RMB 21,376,087.52 (tax exclusive), the actual net proceeds raised were RMB 3,478,623,897.13. All of the above proceeds were received in full on July 13, 2022.

The above net proceeds have been verified by Zhitong Certified Public Accountants (Special General Partnership) through the “Capital Verification Report” (Zhitong Yan Zi [2022] No. 440C000398).

(II) Use and balance of the proceeds from the offering

1. Proceeds raised from the stock issuance to specific targets in 2021

As of December 31, 2025, the Company has cumulatively used RMB 360,512.29万元 of the proceeds raised (of which: RMB 360,506.20万元 was paid for project expenditures, and RMB 6.09万元 was paid for bank handling fees). After the proceeds were received, the Company cumulatively paid issuance costs of RMB 1,158.31万元; it cumulatively received interest income from settlement banks totaling RMB 1,603.39万元; it cumulatively received investment/wealth management interest income totaling RMB 12,162.97万元; and it cumulatively incurred foreign exchange losses of RMB 1,105.84万元. As of December 31, 2025, the balance in the proceeds dedicated account was RMB 10.62万元; temporary replenishment of working capital was RMB 0.00万元; and wealth management was RMB 0.00万元.

II. Deposit and Management of Proceeds

(I) Management of the proceeds

To standardize the management and use of the proceeds and protect investors’ interests, the Company has, in accordance with the “Rules for the Supervision of Proceeds from the Offering of Listed Companies” and the Shenzhen Stock Exchange “Self-regulatory Guidance No. 2—for GEM listed companies: standardized operation,” and other relevant documents, and in light of the Company’s actual circumstances, formulated the “Deposit and Management System for Proceeds Raised by Shenzhen Star Source Materials Technology Co., Ltd.” (hereinafter referred to as the “Management System”). The Management System contains clear provisions regarding the storage, approval, use, management, and supervision of the proceeds, in order to ensure standardized use of the proceeds from an institutional perspective.

After deliberation and approval by the Company’s 14th meeting of the fifth session of the board of directors, the Company respectively applied to and received approval from the China Industrial and Commercial Bank of China (ICBC) Shenzhen Yantian Sub-branch, the China Construction Bank (CCB) Shenzhen Tibei Sub-branch, the China Minsheng Bank Shenzhen Branch, the Ningbo Bank Shenzhen Branch, the Ping An Bank Shenzhen Branch, the Shanghai Pudong Development Bank Shenzhen Branch, the China Merchants Bank Co., Ltd. Changzhou Branch, the China Merchants Bank Co., Ltd. Shenzhen Chegongmiao Sub-branch, the Agricultural Bank of China Shenzhen Branch, the Bank of China Shenzhen Luohu Sub-branch, etc. It agreed that the Company’s wholly-owned subsidiary Star Source Materials (Nantong) New Materials Technology Co., Ltd. (hereinafter referred to as “Nantong Star Source”) would set up dedicated accounts for the proceeds at the Nantong Economic and Technological Development Zone branch of the Industrial and Commercial Bank of China, at the Nantong Economic and Technological Development Zone branch of the China Construction Bank, and at the Nantong Economic and Technological Development Zone branch of the Agricultural Bank of China for the purpose of storing and managing all proceeds from the offering. The Company, Nantong Star Source, the sponsor institution Citic Securities Co., Ltd., and the relevant account-opening banks signed proceeds supervision agreements. The Company (Party A-1), InnoWei New Materials Technology (Malaysia) Co., Ltd. (Party A-2), Bank Of China (Malaysia) Berhad (Party B), and Citic Securities Co., Ltd. (Party C) signed the “Four-party Agreement for the Supervision of Proceeds.”

As of December 31, 2025, the storage of proceeds is as follows:

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Note 1: The account numbers 100000403368419, 100000403368384, and 100000404259589 of Bank Of China (Malaysia) Berhad were deregistered on February 4, 2026.

Note 2: The account number 10727001040239568 of the China Agricultural Bank Co., Ltd., Nantong Economic and Technological Development Zone branch was deregistered on January 30, 2026.

III. Actual Use of Proceeds from the Offering in 2025

As of December 31, 2025, the proceeds investment amounts actually投入 by the Company into the relevant projects totaled RMB 360,512.29万元. For each project’s investment status and benefits, please refer to Appendix 1.

IV. Changes in the Use of Funds for Proceeds-raising Investment Projects

As of December 31, 2025, the Company’s changes in the use of proceeds-raised funds for investment projects are set out in Appendix 2.

V. Issues Involving Proceeds Use and Disclosure

The Company stores, uses, and manages the proceeds in accordance with relevant laws, regulations, and regulatory documents and requirements, and has disclosed related information on the use of proceeds in a timely, true, accurate, and complete manner. There are no violations regarding the storage, use, management, and disclosure of the proceeds.

VI. Other Matters

(I) Basic information on the issuance of Global Depositary Receipts (“GDR”) and listing on the SIX Swiss Exchange

On July 29, 2022, the Company convened the 25th meeting of the fifth session of the board of directors, which approved resolutions including “Proposal on the Issuance of GDR and Listing on the SIX Swiss Exchange/London Stock Exchange and the Conversion into an Overseas Offering Shares Company” and “Proposal on the Issuance of GDR and Listing on the SIX Swiss Exchange/London Stock Exchange.”

On August 17, 2022, the Company convened the 4th extraordinary general meeting of shareholders in 2022, which approved resolutions including “Proposal on the Issuance of GDR and Listing on the SIX Swiss Exchange/London Stock Exchange and the Conversion into an Overseas Offering Shares Company” and “Proposal on the Issuance of GDR and Listing on the SIX Swiss Exchange/London Stock Exchange,” among others related to this issuance and listing.

Pursuant to the CSRC’s reply “Approval on the issuance of Global Depositary Receipts for the first public offering of Shenzhen Star Source Materials Technology Co., Ltd. and listing on the SIX Swiss Exchange” (CSRC License [2022] 3150) and the decision issued by the supervisory authority of the SIX Swiss Exchange, the Company completed the issuance of Global Depositary Receipts (“GDR”) and formally listed them for trading on the SIX Swiss Exchange on December 18, 2023.

The number of GDRs issued in this offering was 12,684,800. Each GDR represents 5 shares of the Company’s A shares. Accordingly, the number of underlying securities A shares newly added was 63,424,000 shares. The issue price of each GDR was USD 9.46. The total amount of proceeds raised was approximately USD 120 million. By December 18, 2023, the actual amount received after deducting underwriting fees for this offering was USD 118,544,144.81, equivalent to RMB 843,726,342.67. After deducting other issuance costs of RMB 19,364,393.43 (tax exclusive), the actual net proceeds raised were RMB 824,361,949.24. According to the prospectus for the GDR issuance, the Company intends to use the proceeds raised for the following purposes: 90% or more of the proceeds for expanding the Company’s global business and international development; and at most 10% for replenishing working capital and operating funds.

(II) Use of GDR proceeds

As of December 31, 2025, USD 121,830,437.52 of GDR proceeds has been used, and the remaining unutilized proceeds balance is USD 0.00.

Appendix 1: Table of comparison of the use of proceeds

Appendix 2: Table of changes in the proceeds-raising investment projects

Announcement hereby given.

Board of Directors of Shenzhen Star Source Materials Technology Co., Ltd.

March 31, 2026

Appendix 1:

Table of comparison of proceeds use in 2025

Unit: RMB 10,000

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Appendix 2:

Table of changes in proceeds-raising investment projects in 2025

Unit: RMB 10,000

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Security Code: 300568 Security Abbreviation: Star Source Materials Announcement No.: 2026-018

Shenzhen Star Source Materials Technology Co., Ltd.

Announcement on the Cancellation of Part of the Restrictive Stocks Granted but Not Yet Vested for the Second Vesting Period of the 2023 Restricted Stock Incentive Plan due to Unmet Vesting Conditions

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, complete, and there are no false records, misleading statements, or major omissions.

Shenzhen Star Source Materials Technology Co., Ltd. (hereinafter referred to as the “Company”) convened the 24th meeting of the sixth session of the board of directors on March 30, 2026 and deliberated and approved the resolution on “Cancellation of Part of Restrictive Stocks Granted but Not Yet Vested for the Second Vesting Period of the 2023 Restricted Stock Incentive Plan due to Unmet Vesting Conditions.” In accordance with relevant provisions of the “2023 Restricted Stock Incentive Plan (Draft)” (hereinafter referred to as the “Incentive Plan”), because the company-level performance appraisal for the second vesting period under the first grant portion did not meet the standard, and one of the incentive participants under the first grant has left due to personal reasons, the board of directors agreed to cancel 1.245 million shares of restrictive stocks that were already granted but not yet vested. Pursuant to the authorization by the Company’s third extraordinary general meeting of shareholders in 2023, this matter of canceling part of the restrictive stocks granted but not yet vested does not need to be submitted to the general meeting for approval. Relevant matters are hereby announced as follows:

I. Approval procedures for this incentive plan that have been completed

On October 24, 2023, the Company convened the 40th meeting of the fifth session of the board of directors and the 36th meeting of the fifth session of the board of supervisors, which approved resolutions including “Proposal on the Company’s 〈2023 Restricted Stock Incentive Plan (Draft)〉 and its Summary,” “Proposal on the Company’s 〈Administrative Measures for the Implementation and Assessment of the 2023 Restricted Stock Incentive Plan〉,” and “Proposal on Requesting the General Meeting to Authorize the Board of Directors to Handle Matters Relating to the Company’s 2023 Restricted Stock Incentive Plan.” The Company’s independent directors issued agreed independent opinions.

From October 25, 2023 to November 3, 2023, the Company publicized the names and positions of the incentive participants for the first grant internally within the Company. During the publicity period, the board of supervisors did not receive any objections regarding the proposed incentive participants, and on November 3, 2023 it disclosed the “Board of Supervisors’ Explanation on the Publicity Situation and Inspection Opinion for the List of Incentive Participants for the First Grant under the 2023 Restricted Stock Incentive Plan.”

On November 9, 2023, the Company convened the third extraordinary general meeting of shareholders in 2023, which approved resolutions including “Proposal on the Company’s 〈2023 Restricted Stock Incentive Plan (Draft)〉 and its Summary,” “Proposal on the Company’s 〈Administrative Measures for the Implementation and Assessment of the 2023 Restricted Stock Incentive Plan〉,” and “Proposal on Requesting the General Meeting to Authorize the Board of Directors to Handle Matters Relating to the Company’s 2023 Restricted Stock Incentive Plan.” The 2023 restricted stock incentive plan was approved, and on the same day, the Company disclosed the “Self-inspection Report on the Trading of the Company’s Stocks by Insider Information Knowers and Incentive Participants under the 2023 Restricted Stock Incentive Plan.”

On December 12, 2023, the Company convened the 43rd meeting of the fifth session of the board of directors and the 39th meeting of the fifth session of the board of supervisors, which approved the resolution on “Proposal on Granting Restrictive Stocks to the Incentive Participants for the First Grant under the 2023 Restricted Stock Incentive Plan.” The Company’s independent directors issued agreed independent opinions.

On December 30, 2024, the Company convened the 9th meeting of the sixth session of the board of directors and the 7th meeting of the sixth session of the board of supervisors, which approved the resolution on “Proposal on Cancelling Restrictive Stocks that Have Not Yet Been Granted from the Reserved Portion under the 2023 Restricted Stock Incentive Plan,” deciding to cancel 650,000 shares of restrictive stocks that had not been granted from the reserved portion of the 2023 incentive plan. The lawyers issued a legal opinion.

On April 28, 2025, the Company convened the 14th meeting of the sixth session of the board of directors and the 12th meeting of the sixth session of the board of supervisors, which approved the resolution on “Proposal on Cancelling Restrictive Stocks Granted but Not Yet Vested due to Unmet Vesting Conditions for the First Vesting Period under the 2023 Restricted Stock Incentive Plan.” Pursuant to the relevant provisions of the Incentive Plan, because the company-le