Stock Code: 002395 Stock Abbreviation: Shuangxiang Shares Announcement No.: 2026-009 Wuxi Shuangxiang Ultra-Fiber Materials Co., Ltd. Announcement on Changes to Accounting Policies The Company and the entire Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, without any false records, misleading statements, or significant omissions. Wuxi Shuangxiang Ultra-Fiber Materials Co., Ltd. (hereinafter referred to as the "Company") held the second meeting of its Eighth Board of Directors on April 11, 2026, and reviewed and approved the "Proposal on Changes to Accounting Policies." This change in accounting policies does not require submission to the shareholders' meeting for review. The specific content is hereby announced as follows: I. Overview of Changes to Accounting Policies (I) Reason for Changes to Accounting Policies On December 5, 2025, the Ministry of Finance issued "Accounting Standards Interpretation No. 19" (Cai Kuai [2025] No. 32), hereinafter referred to as "Interpretation No. 19." "Interpretation No. 19" stipulates the accounting treatment for five aspects: "Accounting Treatment for Compensating Assets in Business Combinations Not Under Common Control," "Accounting Treatment for Relevant Capital Reserves When Disposing of Subsidiaries Previously Acquired Through Business Combinations Under Common Control," "Derecognition of Financial Liabilities Settled Through Electronic Payment Systems," "Assessment of Contractual Cash Flow Characteristics of Financial Assets and Related Disclosures," and "Disclosure of Equity Instruments Designated at Fair Value Through Other Comprehensive Income." Due to the revision of the above accounting standards, the Company needs to make corresponding adjustments to its previously adopted accounting policies. (II) Accounting Policies Adopted Before the Change Before this change in accounting policies, the Company followed the "Basic Standards" and various specific accounting standards, application guidelines for accounting standards, announcements on accounting standards interpretations, and other relevant regulations issued by the Ministry of Finance. (III) Accounting Policies Adopted After the Change After this change in accounting policies, the Company will follow the new standards. For all other unchanged aspects, it will continue to comply with the "Basic Standards" and various specific accounting standards, application guidelines for accounting standards, announcements on accounting standards interpretations, and other relevant regulations issued by the Ministry of Finance. (IV) Date of Change in Accounting Policies The Company will implement "Interpretation No. 19" effective January 1, 2026. II. Impact of This Change in Accounting Policies on the Company This change in accounting policies is a reasonable adjustment made by the Company in accordance with the requirements of Interpretation No. 19 issued by the Ministry of Finance. The revised accounting policies will more objectively and fairly reflect the Company's financial position and operating results, comply with relevant laws and regulations and the Company's actual situation, do not involve retrospective adjustments to previous periods, will not affect the Company's previously disclosed financial statements, and will not have a significant impact on the Company's financial position, operating results, and cash flows, nor will it harm the interests of the Company and its shareholders. III. Audit Committee's Opinion The Company's change in accounting policies is a reasonable adjustment made in accordance with the requirements of laws, regulations, and the unified national accounting system. It complies with the relevant provisions and requirements of "Accounting Standards Interpretation No. 19" revised and issued by the Ministry of Finance. It does not involve retrospective adjustments to previous periods and will not have a significant impact on the Company's financial position, operating results, and cash flows. This change in accounting policies has undergone the relevant approval procedures and complies with relevant laws, regulations, normative documents, and the "Articles of Association." It does not harm the interests of the Company and all shareholders, especially small and medium shareholders. We agree with this change in accounting policies. IV. Board of Directors' Explanation on the Reasonableness of This Change in Accounting Policies On April 11, 2026, the second meeting of the Eighth Board of Directors of the Company was held, and the "Proposal on Changes to Accounting Policies" was reviewed and approved with 7 votes in favor, 0 votes against, and 0 abstentions. The Board of Directors believes that this change in accounting policies is a corresponding adjustment made by the Company in accordance with the latest accounting standards revised by the Ministry of Finance. The revised accounting policies can objectively and fairly reflect the Company's financial position and operating results and comply with relevant laws, regulations, and the Company's actual situation. This change in accounting policies will not have a significant impact on the Company's financial position, operating results, and cash flows, nor will it harm the interests of the Company and its shareholders. V. Supporting Documents
- "Resolution of the Second Meeting of the Eighth Board of Directors of the Company"
- "Resolution of the Second Meeting of the Eighth Board of Directors' Audit Committee of the Company in 2026" Hereby announced Wuxi Shuangxiang Ultra-Fiber Materials Co., Ltd. Board of Directors April 13, 2026