Shenzhen Walke Technology Co., Ltd. (hereinafter referred to as "the Company") held the sixth meeting of the eighth board of directors on March 31, 2026, where it reviewed and approved the proposal on the adjustment of external investment projects by its wholly-owned subsidiary, Shanghai Kete New Materials Co., Ltd. (hereinafter referred to as "Shanghai Kete"). The board agreed to terminate the investment in the Kete (Suzhou) New Materials Project in the Wujiang Economic and Technological Development Zone, Jiangsu Province, and to adjust the investment to a new production base project in the Dushan Port Economic Development Zone, Zhejiang Province, with a planned investment not exceeding RMB 1.2 billion. On the same day, Shanghai Kete signed the Project Investment Agreement with the Management Committee of Dushan Port Economic Development Zone.
According to the relevant provisions of the Shenzhen Stock Exchange's Listing Rules and the Company's Articles of Association, the adjustment of the external investment project and the investment in the Shanghai Kete Dushan Port production base project fall within the authority of the Company's board of directors and do not require submission to the shareholders' meeting for approval. This investment does not constitute a related party transaction or a major asset restructuring as defined by the Measures for the Administration of Major Asset Restructuring of Listed Companies.
- Overview of the Original Project The Company approved the proposal for external investment in the Kete (Suzhou) New Materials Project at the thirty-second meeting of the seventh board of directors held on September 22, 2025, allowing Shanghai Kete to invest up to RMB 1 billion in the project. On the same day, Shanghai Kete signed the Investment Agreement with the Management Committee of Wujiang Economic and Technological Development Zone. For specific details, please refer to the announcement published on September 24, 2025, in the China Securities Journal, Securities Times, and the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No. 2025-066).
Since the signing of the aforementioned Investment Agreement, Shanghai Kete and its partners have actively promoted various preliminary works. However, during the project implementation, objective changes occurred in the investment cooperation conditions of the original agreement, and both parties failed to reach a consensus on the original cooperation plan. Therefore, the original agreement objectively faced a situation where it could not continue to be performed. To protect the overall interests of the subsidiary and rationally allocate resources, after careful study and comprehensive consideration of various factors, both parties signed a Termination Agreement, and neither party is required to fulfill the obligations under the original Investment Agreement, which does not constitute a breach of contract.
- Overview of the Adjusted New Project Investment Given the actual business development needs of Shanghai Kete, after the termination of the aforementioned project, the subsidiary plans to allocate resources to invest in a new production base project in the Dushan Port Economic Development Zone, Zhejiang Province.