Stock Code: 002290 Stock Abbreviation: Hesheng New Material Announcement No.: 2026-030 Suzhou Hesheng New Material Co., Ltd. Announcement on Capital Increase in Investee Company Shanghai Yizhi Electronics Technology Co., Ltd. and Related Party Transaction The Company and all members of the Board of Directors guarantee the content of this information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions. Special Reminder:
- Suzhou Hesheng New Material Co., Ltd. (hereinafter referred to as the "Company" or "this Company") signed the "Capital Increase Agreement for Shanghai Yizhi Electronics Technology Co., Ltd." (hereinafter referred to as "Yizhi Electronics") with Shanghai Yizhi Electronics Technology Co., Ltd. (hereinafter referred to as "Yizhi Electronics") and its actual controller Xu Ruohao on August 1, 2025. The Company will invest RMB 25,000 million in Yizhi Electronics with its own funds or funds raised, subscribing for RMB 476.6945 million of Yizhi Electronics' new registered capital. For details, please refer to the "Announcement on Intent for External Investment" (Announcement No.: 2025-027) and the "Announcement on External Investment and Signing of Capital Increase Agreement" (Announcement No.: 2025-031) disclosed in the "Securities Times" and Cninfo.com.cn on June 12, 2025, and August 2, 2025.
- The Company plans to invest RMB 23,300 million in Yizhi Electronics with its own funds or funds raised, subscribing for RMB 450.7348 million of its new registered capital (corresponding to 8.2245% of Yizhi Electronics' equity after this investment, hereinafter referred to as "this Investment"). The remaining RMB 22,849.2652 million will be included in Yizhi Electronics' capital reserve.
- Before this investment, the Company already held RMB 483.6210 million of registered capital in Yizhi Electronics, corresponding to 9.6154% of its equity (the change in the Company's registered capital and equity ratio in Yizhi Electronics is due to Yizhi Electronics' equity restructuring before this investment, relevant investors' capital increase in Yizhi Electronics in December 2025, and Yizhi Electronics' targeted capital reserve transfer to registered capital in December 2025). After this investment, Yizhi Electronics' registered capital will increase from RMB 5,029.6585 million to RMB 5,480.3933 million. The Company will hold RMB 934.3558 million of registered capital in Yizhi Electronics, corresponding to 17.0491% of its equity.
- Yizhi Electronics is currently still in a loss-making state, and the timing of future profitability is uncertain. Investors are advised to make rational judgments, cautious decisions, and pay attention to investment risks.
- In accordance with the "Shenzhen Stock Exchange Stock Listing Rules", this investment constitutes a related party transaction. This investment and related party transaction does not constitute a major asset restructuring as defined by the "Measures for the Major Asset Restructuring of Listed Companies".
- This investment is subject to the approval of Yizhi Electronics' shareholders' meeting.