Stock Code: 002358 Stock Abbreviation: Senyuan Electric Announcement No.: 2026-006 Henan Senyuan Electric Co., Ltd. Announcement on the 2025 Profit Distribution Plan The Company and all members of the 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 major omissions. I. Deliberation Procedures Henan Senyuan Electric Co., Ltd. (hereinafter referred to as "Senyuan Electric" or the "Company") deliberated and approved the "2025 Profit Distribution Plan" at the Ninth Meeting of the Eighth Board of Directors held on April 28, 2026. This profit distribution plan is subject to the approval of the Company's 2025 Annual General Meeting of Shareholders. II. Basic Information of the 2025 Profit Distribution Plan According to the audit by Liantao Certified Public Accountants (Special General Partnership), the Company's net profit attributable to shareholders of the listed company in 2025 was RMB 87,433,004.06, and the net profit attributable to the parent company was RMB 82,649,564.23. As of December 31, 2025, the undistributed profits in the Company's consolidated financial statements were RMB 182,978,880.06, and the undistributed profits of the parent company were RMB 197,752,263.60. In accordance with the principle that the profit distribution of a listed company should be based on the lower of the consolidated financial statements and the parent company's financial statements, the profit available for distribution to shareholders in 2025 is RMB 182,978,880.06. To actively reward investors, protect the interests of all shareholders, and share the Company's development achievements with all shareholders, while adhering to the Company's profit distribution principles and considering the Company's sustainable development, in accordance with the CSRC's "Notice on Further Implementing Matters Related to Listed Company Cash Dividends," "Guidance on Supervision of Listed Companies No. 3 - Listed Company Cash Dividends," and the "Articles of Association," and considering the Company's long-term development plan and future operating capital needs, to ensure the Company's sustained, stable, and healthy development, and to better protect the long-term interests of all shareholders, the Board of Directors proposes the 2025 profit distribution plan as follows: Based on the Company's total share capital of 929,756,977 shares as of December 31, 2025, a cash dividend of RMB 0.2 yuan (tax inclusive) will be distributed per 10 shares to all shareholders, totaling a cash dividend of RMB 18,595,139.54 yuan (tax inclusive). The remaining undistributed profits will be carried forward to subsequent years. This profit distribution will not involve bonus shares or capital reserve to increase share capital. This profit distribution plan has been deliberated and approved by the Ninth Meeting of the Eighth Board of Directors and is subject to the approval of the Company's 2025 Annual General Meeting of Shareholders. If the Company's total share capital changes from the date of disclosure of the 2025 profit distribution plan to the equity registration date for the implementation of the dividend distribution, the Company intends to maintain the total distribution amount unchanged and adjust the distribution ratio per share accordingly, and will announce the specific adjustment details separately. 1 III. Specifics of the Cash Dividend Plan (I) Whether it may trigger other risk warning situations
| Item | 2025 Fiscal Year | 2024 Fiscal Year | 2023 Fiscal Year |
|---|---|---|---|
| Total Cash Dividend (RMB) | 18,595,139.54 | 18,595,139.54 | 18,595,139.54 |
| Total Share Buyback and Cancellation (RMB) | 0 | 0 | 0 |
| Net Profit Attributable to Shareholders of Listed Company (RMB) | 87,433,004.06 | 88,700,371.65 | 73,898,429.35 |
| Accumulated Undistributed Profit at Year-End (Consolidated Statements) (RMB) | 182,978,880.06 | ||
| Accumulated Undistributed Profit at Year-End (Parent Company Statements) (RMB) | 197,752,263.60 | ||
| Whether the Company has been Listed for Three Full Fiscal Years | Yes | ||
| Accumulated Cash Dividend in the Last Three Fiscal Years (RMB) | 55,785,418.62 | ||
| Accumulated Share Buyback and Cancellation in the Last Three Fiscal Years (RMB) | 0 | ||
| Average Net Profit in the Last Three Fiscal Years (RMB) | 83,343,935.02 | ||
| Accumulated Total of Cash Dividends and Share Buybacks/Cancellations in the Last Three Fiscal Years (RMB) | 55,785,418.62 | ||
| Whether it Triggers the Risk Warning Situations Stipulated in Article 9.8.1 (IX) of the Listing Rules | No | ||
| Based on the relevant indicators in the table above, the Company's accumulated cash dividend in the last three fiscal years was RMB 55,785,418.62, which is higher than 30% of the average net profit in the last three fiscal years. It does not trigger the risk warning situations stipulated in Article 9.8.1 of the Shenzhen Stock Exchange Stock Listing Rules that may lead to other risk warnings for the Company's stock trading. | |||
| (II) Explanation of the Reasonableness of the Cash Dividend Plan | |||
| This profit distribution plan comprehensively considers the Company's long-term development plan and future operating capital needs, which is conducive to the Company maintaining financial stability, improving the efficiency of capital utilization, enhancing the Company's intrinsic value, and is in line with the Company's long-term interests, and is also more beneficial for shareholders' long-term investment returns. | |||
| 2 |
- Reason for the Company's 2025 Cash Dividend Total Amount Being Less Than 30% of the Annual Net Profit The Company's total cash dividend for 2025 (tax inclusive) as a proportion of the net profit attributable to shareholders of the listed company for the year is 21.27%. This is determined based on the Company's current industry characteristics, development stage, operational management, and long-term development factors. The construction of a new power system, new energy bases, UHV transmission, and energy storage are continuously advancing in China, with strong overall market demand. In the future, the Company will seize the opportunity of the energy industry's structural adjustment and the national "new infrastructure," "carbon peaking, and carbon neutrality" strategic goals to consolidate its advantages in the power transmission and transformation equipment industry and expand into new energy sectors such as photovoltaic, wind power, nuclear power, charging piles, data centers, and energy storage.
- Estimated Use of Retained Undistributed Profits After deducting the proposed cash dividend, the Company's retained undistributed profits will be primarily used to support the Company's operating capital needs, provide reliable assurance for the smooth implementation of the Company's long-term development plan and sustained, healthy development, enhance the Company's ability to resist risks, and better protect the long-term interests of all shareholders.
- This profit distribution plan is subject to the approval of the Shareholders' Meeting. The Company will provide online voting and on-site voting during the Shareholders' Meeting and will separately count the voting results of small and medium shareholders to facilitate their participation in the cash dividend decision-making.
- The Company will continue to attach importance to rewarding shareholders and investors through cash dividends. In strict accordance with relevant laws, regulations, and the "Articles of Association," and comprehensively considering various factors related to profit distribution, the Company will proactively fulfill its profit distribution system from the perspective of benefiting the Company's development and investor returns, sharing the Company's development achievements with investors. IV. Opinion of the Independent Directors' Special Meeting The profit distribution plan for 2025 proposed by the Board of Directors is in line with the Company's objective situation, fully considers the Company's current actual operating conditions, future business development, and capital needs, is conducive to the Company's sustained, stable, and healthy development, and is in the interests of the Company and all shareholders. V. Documents for Reference
- Resolution of the Ninth Meeting of the Eighth Board of Directors of the Company;
- Resolution of the First Meeting of the Independent Directors in 2026. Hereby announced. 3 Henan Senyuan Electric Co., Ltd. Board of Directors April 29, 2026