Announcement on Abnormal Stock Trading Fluctuations

Securities Code: 002428 Securities Abbreviation: Yunnan Germanium Announcement No.: 2026-045

Yunnan Lincang Xinyuan Germanium Co., Ltd.

Announcement on Abnormal Stock Trading Fluctuations

The Company and the entire Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or material omissions.

Key Content Highlights:

1. The Company's stock price has deviated significantly from its daily closing price for three consecutive trading days (August 4, 2026, August 5, 2026, and August 6, 2026), with a cumulative increase exceeding 20%. According to the relevant regulations of the Shenzhen Stock Exchange, this constitutes abnormal stock trading fluctuations.

2. After verification, the Company, its controlling shareholder, and its actual controller are not aware of any material events that should have been disclosed but were not, or any other material events currently in the planning stage.

3. As of August 5, 2026, the static P/E ratio for the non-ferrous metal smelting and rolling processing industry (C32) in China's listed companies was 26.10, the trailing P/E ratio was 21.58, and the P/B ratio was 2.68. The Company's static P/E ratio is 2681.40, the trailing P/E ratio is 2835.12, and the P/B ratio is 36.77 (data from the official website of Wind Information Co., Ltd.). The Company's P/E and P/B ratios are significantly higher than the industry average, indicating a risk of market overheating and irrational speculation. The Company solemnly reminds investors to make rational decisions, invest prudently, and pay attention to the risks of the secondary market trading.

4. As of now, the Company's main business is the deep processing and research and development of germanium series products. In 2025, the Company's operating revenue was 1.066 billion yuan, of which compound semiconductor material products (including gallium arsenide wafers and indium phosphide wafers) generated revenue of approximately 138 million yuan, accounting for 12.93% of the total operating revenue. This proportion is relatively low. The gross profit of compound semiconductor material products accounted for only 14.29% of the Company's consolidated gross profit. Investors are advised to pay close attention to the significant uncertainty in the price fluctuations of indium phosphide wafers and changes in future supply and demand relationships. The impact of these factors on the Company's future performance needs to be comprehensively assessed in conjunction with the future market environment and the Company's business development, and there are also significant uncertainties. Investors are advised to conduct rational analysis, make prudent decisions, and pay attention to investment risks.