Announcement on the Progress of Litigation Matters of the Company and its Wholly-Owned Subsidiaries

Securities Code: 002360 Securities Abbreviation: Tongde Chemical Announcement No.: 2026-057

Shanxi Tongde Chemical Co., Ltd.

Announcement on the Progress of Litigation Matters of the Company and its Wholly-Owned Subsidiaries

The Company and 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:

1. Litigation Stage: First-instance judgment has been rendered.
2. Party Status of the Company and its Wholly-Owned Subsidiaries: Defendant.
3. Amount Involved: The first-instance judgment orders Shanxi Tongde Chemical Co., Ltd. to repay the plaintiff Evergrowing Bank Co., Ltd. Taiyuan Branch the principal amount of RMB 49,000,000 as of April 7, 2026, and interest, late fees, and compound interest of RMB 531,656.31, totaling RMB 49,531,656.31. It also orders the payment of late fees and compound interest (calculated based on the unpaid principal and interest, from April 8, 2026, at an annual interest rate of 4.3% plus a 50% increase, until the loan principal and interest are fully repaid), and legal fees of RMB 50,000.
4. Impact on the Company's Profit and Loss: This litigation judgment is a first-instance judgment. Based on the outcome of this judgment, there will be no significant impact on the company's current or future profits. Investors are advised to make decisions cautiously and be aware of investment risks.

Recently, Shanxi Tongde Chemical Co., Ltd. (hereinafter referred to as the "Company" or "Tongde Chemical"), and its wholly-owned subsidiaries Tongde Kechuang Materials Co., Ltd. (hereinafter referred to as "Tongde Kechuang"), Shanxi Tongde Blasting Engineering Co., Ltd. (hereinafter referred to as "Tongde Blasting"), and Shanxi Tongde Civil Explosives Co., Ltd. (hereinafter referred to as "Shanxi Tongde") received a "Civil Judgment" (No. (2026) Jin 71991 Min Chu 911) from the People's Court of Shanxi Transformation and Comprehensive Reform Demonstration Zone. The relevant situation is hereby announced as follows: