Announcement on the Proposed Signing of a Project Investment Agreement by a Subsidiary

Anhui Si'erte Fertilizer Co., Ltd. Announcement

Announcement Number: 2026-24

Anhui Si'erte Fertilizer Co., Ltd.

Announcement on the Proposed Signing of a Project Investment Agreement by a Subsidiary

The Company and the entire Board of Directors guarantee that the information disclosed in this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions.

Key Information Prompt:

1. The project involved in this agreement will be built on the basis of the company's existing chemical park facilities. The implementation of this project requires prior approval procedures such as government project filing and approval, environmental impact assessment, safety assessment, energy assessment, and construction permits. The construction, production, and operation of the project will take a certain period. If national or local policy adjustments or changes in project approval implementation conditions occur, the implementation of this project may be subject to changes, delays, suspension, or termination risks.

2. This investment project is a decision made by the company based on the current market environment and mid-to-long-term strategic development plan. However, after the project is completed and fully operational, the actual achievement and timing are subject to the influence of national policies, laws and regulations, industry macro environment, market development, operational management, production capacity, and utilization, and there are still uncertainties.

3. Due to the construction period required for the project, it is expected that it will not have a significant impact on the company's performance in the short term.

4. This investment does not constitute a related party transaction, nor does it constitute a major asset restructuring as stipulated in the "Measures for the Administration of Major Asset Restructuring of Listed Companies."

I. Overview of External Investment

Anhui Si'erte Fertilizer Co., Ltd. (hereinafter referred to as the "Company") held the fifth (extraordinary) meeting of the seventh Board of Directors on July 27, 2026, and reviewed and approved the "Proposal on the Proposed Signing of a Project Investment Agreement by a Subsidiary." After friendly negotiation, the company's wholly-owned subsidiary, Xuancheng Si'erte Chemical Technology Co., Ltd. (hereinafter referred to as "Party B" or "Xuancheng Si'erte"), intends to sign a "Project Investment Agreement" (hereinafter referred to as the "Agreement") with the Xuancheng High-tech Industrial Development Zone Management Committee (hereinafter referred to as "Party A"). Xuancheng Si'erte plans to invest and build a fine phosphate salt upgrading project on the basis of the company's existing chemical park facilities.

The project has a total planned investment of approximately RMB 8.66 billion.

This agreement has been reviewed and approved by the fifth (extraordinary) meeting of the seventh Board of Directors of the Company held on July 27, 2026. In accordance with the "Shenzhen Stock Exchange Stock Listing Rules" and other laws and regulations, as well as the "Company Articles of Association," this matter is within the scope of the Board of Directors' approval authority and does not require submission to the Company's shareholders' meeting for deliberation.

This matter does not constitute a related party transaction, nor does it constitute a major asset restructuring as stipulated in the "Measures for the Administration of Major Asset Restructuring of Listed Companies."

II. Basic Information of the Counterparty

1. Name: Xuancheng High-tech Industrial Development Zone Management Committee

2. Address: No. 11 Qilin Avenue, Xuanzhou District, Xuancheng City, Anhui Province

3. Nature of Organization: Local government dispatched agency

4. Relationship with the Listed Company: No related party relationship

III. Main Contents of the Agreement