Securities Code: 002290 Securities Abbreviation: Hesheng New Material Announcement Number: 2026-025 Suzhou Hesheng New Material Co., Ltd. Announcement on Authorizing the Board of Directors to Fully Handle the Issuance of Shares to Specific Objects Through Simplified Procedures The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the announcement, and assume joint and several liability for any false records, misleading statements, or material omissions therein. Suzhou Hesheng New Material Co., Ltd. (hereinafter referred to as the "Company") held the ninth meeting of the seventh Board of Directors on March 25, 2026, and deliberated and passed the "Proposal on Authorizing the Board of Directors to Fully Handle the Issuance of Shares to Specific Objects Through Simplified Procedures." According to the "Administrative Measures for Securities Issuance Registration of Listed Companies" (hereinafter referred to as the "Registration Measures") and other relevant regulations, the Board of Directors proposes to the Shareholders' Meeting to authorize the Board of Directors to fully handle the issuance of shares to specific objects through simplified procedures. The total funds raised will not exceed RMB 300 million and will not exceed 20% of the net assets at the end of the previous year (hereinafter referred to as the "Current Issuance"). The authorization period shall be from the date of deliberation and approval by the Company's 2025 annual Shareholders' Meeting to the date of the Company's 2026 annual Shareholders' Meeting. The above matters are still subject to deliberation by the Company's 2025 annual Shareholders' Meeting. The specific situation is as follows: I. Specific Content of Authorization
- Confirmation of whether the Company meets the conditions for issuing shares to specific objects through simplified procedures The Board of Directors is authorized to conduct self-inspection and argumentation based on relevant laws, regulations, normative documents, and the "Articles of Association" of the Company, and confirm whether the Company meets the conditions for issuing shares to specific objects through simplified procedures.
- Types, quantities, and par value of securities to be issued in this issuance The type of securities to be issued is RMB ordinary shares (A shares), with a par value of RMB 1.00 per share. The total funds raised from the issuance of shares shall not exceed RMB 300 million and shall not exceed 20% of the net assets at the end of the previous year. The number of shares issued shall be determined by dividing the total funds raised by the issue price, and shall not exceed 30% of the total share capital of the Company before the issuance.
- Issuance method, issuance targets, and arrangements for allocation to existing shareholders The issuance of shares in this issuance will be carried out through simplified procedures for issuance to specific objects. The issuance targets will be no more than 35 (inclusive) specific objects that meet the requirements of regulatory authorities, such as legal persons, natural persons, or other legal investment organizations. Among them, if a fund management company, securities company, qualified foreign institutional investor, or RMB qualified foreign institutional investor subscribes with more than two products under its management, it shall be deemed as one issuance target. If a trust investment company is an issuance target, it can only subscribe with its own funds. The final issuance targets will be determined by the Company's Board of Directors and its authorized personnel, in conjunction with the sponsor (underwriter), based on market conditions, relevant laws, regulations, and re