Implementation Announcement of 2025 Annual Equity Distribution

1. Securities Code: 001225
   Securities Abbreviation: Hetai Electromechanical
   Announcement Number: 2026-038

Implementation Announcement of 2025 Annual Equity Distribution

The company and all members of the board guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.

Hangzhou Hetai Electromechanical Co., Ltd. (hereinafter referred to as "the Company" or "this Company") has announced the equity distribution plan for the year 2025, which was approved at the 2025 annual shareholders' meeting held on April 17, 2026. The details of the equity distribution are as follows:

1. Approval of Profit Distribution Plan by Shareholders' Meeting

1. The shareholders' meeting approved the "2025 Annual Profit Distribution Proposal," which will distribute a cash dividend of RMB 3.12 (including tax) for every 10 shares based on the total share capital of 65,866,800 shares as of December 31, 2025, after deducting the 296,000 restricted shares to be repurchased and canceled, resulting in a base of 65,570,800 shares. There will be no capital reserve fund conversion to increase share capital or issuance of bonus shares this year, and the remaining undistributed profits will be carried forward to future distributions. If there are changes in the total share capital before the implementation of the distribution plan, the total distribution amount will be adjusted accordingly while maintaining the "per share distribution amount unchanged" principle.
2. Since the disclosure of the distribution plan until the implementation period, the Company has completed the repurchase and cancellation of 296,000 restricted shares as planned under the 2025 restricted stock incentive plan, reducing the total share capital from 65,866,800 shares to 65,570,800 shares. The base for the 2025 annual equity distribution remains unchanged, and the per share distribution amount and total distribution amount remain the same.
3. The distribution plan being implemented is consistent with the plan approved by the shareholders' meeting.
4. The time from the approval of the distribution plan by the shareholders' meeting to the implementation of the plan does not exceed two months.