Securities Code: 300179
Securities Abbreviation: Sifangda
Announcement No.: 2026-037
Henan Fangda Advanced Materials Co., Ltd.
Announcement on Risk Warning, Compensation Measures, and Commitments of Relevant Parties Regarding Dilution of Immediate Returns from Issuing A Shares to Specific Objects
The Company and all members of the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Henan Fangda Advanced Materials Co., Ltd. (hereinafter referred to as the "Company") held the fifteenth meeting of the sixth Board of Directors on June 29, 2026. The meeting deliberated and passed the relevant proposals regarding the Company's issuance of A shares to specific objects (hereinafter referred to as "this issuance to specific objects" or "this issuance"). In accordance with the "Several Opinions of the State Council on Further Promoting the Healthy Development of the Capital Market" (Guo Fa [2014] No. 17), the "Opinions of the General Office of the State Council on Further Strengthening the Protection of the Legal Rights and Interests of Small and Medium Investors in the Capital Market" (Guo Ban Fa [2013] No. 110), and the "Guiding Opinions on Matters Concerning the Dilution of Immediate Returns from Initial Public Offerings, Refinancing, and Major Asset Restructurings" (CSRC Announcement [2015] No. 31), to protect the interests of small and medium investors, the Company has conducted a thorough analysis of the impact of this issuance to specific objects on the dilution of immediate returns and formulated specific measures to compensate for the diluted immediate returns. The details are as follows:
I. Calculation of the Impact of This Issuance to Specific Objects on the Company's Main Financial Indicators
(I) Calculation Assumptions
The following assumptions are for calculating the impact of this issuance to specific objects on the Company's main financial indicators. They do not represent the Company's judgment on future operating conditions and financial status, nor do they constitute profit forecasts. Investors should not make investment decisions based on these assumptions. The Company shall not be liable for any losses incurred by investors who make investment decisions based on these assumptions. The relevant assumptions are as follows:
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It is assumed that this issuance to specific objects will be completed before December 2026. This completion time is only for calculating the impact of the dilution of immediate returns from this issuance to specific objects on the Company's main financial indicators and does not represent a judgment on the actual completion time of this issuance. The final completion time will be subject to the actual issuance completion after registration and approval by the China Securities Regulatory Commission.
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There are no significant adverse changes in the macroeconomic environment, industrial policies, industry development status, product market conditions, the Company's operating environment, or the securities market.
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The Company's total share capital before the issuance is based on 485,723,930 shares. When forecasting the Company's total share capital, only the impact of the shares issued in this issuance to specific objects is considered, and changes in share capital due to other factors such as equity incentives, share repurchases, and capital reserve increases are not considered. Assuming the upper limit of the issuance quantity is calculated, the issuance quantity is 97,144,786 shares. After this issuance, the Company's total share capital will reach 582,868,716 shares.
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It is assumed that the net profit attributable to the parent company's shareholders and the net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses in 2026 will increase by 20% compared to 2025.
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The number of shares to be issued to specific objects, the amount of raised funds, and the issuance time are only assumptions for calculation purposes. The final results will be subject to the actual number of shares issued, the issuance results, and the actual date.