Announcement by Jiangsu Hengxing New Material Technology Co., Ltd. on the Redemption of Idle Raised Funds Cash Management Upon Maturity and Continuation of Cash Management

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Stock Code: 603276 Stock Abbreviation: Hengxing New Materials Announcement No.: 2026-013

Jiangsu Hengxing New Material Technology Co., Ltd.

Announcement on the Maturity Redemption of Part of Idle Raised Funds for Cash Management and Continued Cash Management

The company’s board of directors and all directors guarantee that the content of this announcement is free of any false records, misleading statements, or major omissions, and bear legal responsibility for its truthfulness, accuracy, and completeness.

Important Highlights:

● Entrusted Wealth Management Amount: Temporarily idle raised funds of 50 million yuan

● Investment Type: Bank financial products

● Approval Procedures: Jiangsu Hengxing New Material Technology Co., Ltd. (hereinafter referred to as “the Company”) held the 23rd meeting of the second board of directors and the 18th meeting of the second supervisory committee on August 26, 2025, and approved the “Proposal on Using Part of Temporarily Idle Raised Funds for Cash Management.”

● Special Risk Reminder: The products the company plans to invest in for cash management are high-security, highly liquid, low-risk investment products, but market fluctuations and operational factors may still pose investment risks. Investors are advised to be aware of investment risks.

1. Redemption of Part of Idle Raised Funds for Cash Management

On December 12, 2025, the company used 50 million yuan of temporarily idle raised funds to purchase structured deposits at Yixing Branch of Ningbo Bank Co., Ltd. (Announcement No.: 2025-096). To date, the company has recovered the principal of 50 million yuan and received financial income of 209,600 yuan. The principal and income have been returned to the dedicated raised funds account.

2. Basic Information on This Cash Management

(1) Investment Purpose

To improve the efficiency of fund utilization, and without affecting the construction of raised fund projects and normal business operations, the company reasonably uses part of its temporarily idle raised funds for cash management to increase fund returns and generate investment income.

(2) Source of Funds

The funds for this cash management are from part of the temporarily idle raised funds.

(3) Basic Information on the Cash Management Products

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Note: The start date of the product is based on the actual purchase date of the bank financial product.

(4) Trustee of Cash Management

Yixing Branch of Ningbo Bank Co., Ltd. has no related party relationship with the company, its controlling shareholders, or actual controllers.

3. Investment Risk Analysis and Risk Control Measures

(1) Investment Risks

The company uses part of its temporarily idle raised funds to purchase high-security, highly liquid financial products with a term not exceeding 12 months (inclusive) and with capital preservation agreements. However, this investment is not immune to risks such as market fluctuations, interest rate risks, liquidity risks, policy risks, information transmission risks, and force majeure risks. There is a certain systemic risk, and returns may fluctuate. Investment income is uncertain. Investors should be aware of the investment risks.

(2) Risk Control Measures

1. The company has established and improved approval and execution procedures for purchasing financial products based on the principles of separation of decision-making, execution, and supervision, to ensure the safety of financial funds.

2. The company will strictly adhere to prudent investment principles, mainly selecting products issued by reputable, large-scale issuers capable of ensuring fund safety.

3. Relevant personnel from the finance department will analyze and track the investment direction and project progress of financial products in a timely manner. If potential risks affecting the company’s fund safety are identified, appropriate protective measures will be taken promptly to control financial risks.

4. Independent directors and other supervisory bodies have the right to supervise and inspect the use of funds, and professional institutions may be hired for audits if necessary.

5. The company will fulfill information disclosure obligations in accordance with relevant regulations of the Shanghai Stock Exchange.

6. Impact of Investment on the Company

The company will use part of its temporarily idle raised funds for cash management while ensuring the funding needs of the raised fund projects and normal business operations are met. This will not affect the implementation of the raised fund projects or the company’s main business. Using part of the temporarily idle raised funds for cash management can improve fund utilization efficiency and generate additional investment returns for the company.

5. Approval Procedures

On August 26, 2024, the company held the 17th meeting of the second board of directors and the 12th meeting of the second supervisory committee, which approved the “Proposal on Using Part of Temporarily Idle Raised Funds for Cash Management,” authorizing the use of up to RMB 520 million (including 520 million yuan) of temporarily idle raised funds (including oversubscribed funds) for cash management.

On August 26, 2025, the company held the 23rd meeting of the second board of directors and the 18th meeting of the second supervisory committee, which approved the same proposal, allowing the use of up to RMB 490 million (including 490 million yuan) of temporarily idle raised funds for cash management.

6. Recent Twelve Months’ Use of Raised Funds for Cash Management

Unit: 10,000 yuan

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This announcement is hereby made.

Jiangsu Hengxing New Material Technology Co., Ltd. Board of Directors

March 13, 2026