Announcement on Terminating Partial Fundraising Projects, Using Surplus Raised Funds to Permanently Supplement Working Capital, and Terminating the Four-Party Supervision Agreement for Raised Funds

Securities Code: 001395 Securities Abbreviation: Yalian Machinery Announcement No.: 2026-027

Yalian Machinery Co., Ltd.

Announcement on Terminating Partial Fundraising Projects, Using Surplus Raised Funds to Permanently Supplement Working Capital, and Terminating the Four-Party Supervision Agreement for Raised Funds

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

Yalian Machinery Co., Ltd. (hereinafter referred to as the "Company") held the 16th meeting of the third Board of Directors on June 22, 2026, and reviewed and approved the "Proposal on Terminating Partial Fundraising Projects, Using Surplus Raised Funds to Permanently Supplement Working Capital, and Terminating the Four-Party Supervision Agreement for Raised Funds." It was agreed to terminate the "Yalian Machinery Wood-based Panel Production Line Equipment Integrated Manufacturing Base Project" and permanently supplement working capital with the surplus raised funds of RMB 143,481,352.48 (based on the account balance on the day of transfer) for daily production and operation. After the surplus funds are transferred, the Company will terminate the four-party supervision agreement for raised funds with the relevant parties and cancel the relevant accounts. This matter still needs to be submitted to the Company's shareholders' meeting for review. The specific situation is hereby announced as follows:

I. Basic Situation of Raised Funds

(I) Amount of Raised Funds and Arrival of Funds

With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Yalian Machinery Co., Ltd.'s Initial Public Offering of RMB Ordinary Shares" (Zhengjian Permit [2024] No. 1582) and the Shenzhen Stock Exchange's "Notice on the Listing of Yalian Machinery Co., Ltd.'s RMB Ordinary Shares" (Shenzhen Stock Exchange [2025] No. 87), the Company issued 21,810,000 shares of RMB ordinary shares with a par value of RMB 1 per share, and was listed on the main board of the Shenzhen Stock Exchange on January 27, 2025. The offering price was RMB 19.08 per share, the total amount of raised funds was RMB 416,134,800.00. After deducting the tax-exclusive issuance expenses of RMB 54,351,532.17, the net amount of raised funds was RMB 361,783,267.83.

The aforementioned raised funds were transferred to the Company's designated account on January 22, 2025. Zhongxinghua Certified Public Accountants (Special General Partnership) has audited the arrival of the Company's raised funds and issued the "Capital Verification Report" (Zhongxinghua Verification [2025] No. 540002).

(II) Cumulative Amount of Raised Funds Used and Current Balance

The raised funds from this public offering were planned to be invested in the "Yalian Machinery Wood-based Panel Production Line Equipment Integrated Manufacturing Base Project" and the "R&D Center Project." As of June 15, 2026, after deducting issuance expenses, the cumulative amount of raised funds used for the above fundraising projects was RMB 164,826,799.85. The specific situation is as follows:

II. Situation of Raised Funds Storage and Management