Announcement on Proposed Capital Increase in a Subsidiary

Stock Code: 002054 Stock Abbreviation: Demeier Chemical Announcement No.: 2026-034 Guangdong Demeier Chemical Group Co., Ltd. Announcement on Proposed Capital Increase in a Subsidiary The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are not aware of any false representations, misleading statements, or material omissions. Guangdong Demeier Chemical Group Co., Ltd. (hereinafter referred to as the "Company") held the 16th meeting of the 8th Board of Directors on June 18, 2026, and reviewed and approved the "Proposal on Proposed Capital Increase in a Subsidiary." The details are as follows: I. Overview of the Capital Increase The Company plans to use its own funds to increase capital by RMB 10,000 million (hereinafter referred to as the "Capital Increase") in its subsidiary, Zhejiang Derong Chemical Co., Ltd. (hereinafter referred to as "Derong Chemical"). The other shareholder of Derong Chemical, Zhejiang Petrochemical Co., Ltd. (hereinafter referred to as "Zhejiang Petrochemical"), will also increase capital by RMB 10,000 million proportionally to its shareholding. Before this capital increase, the registered capital of Derong Chemical was RMB 142,000 million. After the capital increase, the registered capital of Derong Chemical will be RMB 162,000 million. On June 18, 2026, the Company held the 16th meeting of the 8th Board of Directors and reviewed and approved the "Proposal on Proposed Capital Increase in a Subsidiary," agreeing to increase capital by RMB 10,000 million in its subsidiary, Derong Chemical. This capital increase does not constitute a related-party transaction and does not constitute a major asset restructuring as stipulated by the "Measures for the Administration of Major Asset Restructuring of Listed Companies." The Company previously increased capital by RMB 10,000 million in Derong Chemical using its own funds in June 2025 and December 2025. According to the "