Announcement Regarding the Anticipated Triggering of Downward Adjustment Conditions for the Convertible Bond Conversion Price

Petti Animal Nutrition Technology Co., Ltd.

Announcement Regarding the Anticipated Triggering of Downward Adjustment Conditions for the Convertible Bond Conversion Price

The Company and the entire Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.

Special Reminder:

1. Security Code: 300673

Security Abbreviation: Petti Shares

1. Bond Code: 123133

Bond Abbreviation: Petti Convertible Bond

1. Current Effective Conversion Price: RMB 15.00/share

2. Conversion Period: From June 28, 2022, to December 21, 2027

3. As of the close of trading on July 28, 2026, the closing price of the Company's stock has been below 85% of the current effective conversion price of the Petti Convertible Bond for ten trading days since July 13, 2026. If the stock price continues to be below 85% of the current conversion price, it is expected to trigger the downward adjustment condition for the conversion price of the Petti Convertible Bond. If the downward adjustment condition is met, the Company will convene a board meeting on the day the condition is met to deliberate and decide whether to propose a downward adjustment of the conversion price.

I. Issuance and Listing of Convertible Corporate Bonds

With the approval of the Shenzhen Stock Exchange and the registration approval from the China Securities Regulatory Commission ("CSRC Approval (2021) No. 3596") for the issuance of convertible corporate bonds to unspecified targets by Petti Animal Nutrition Technology Co., Ltd., the Company may issue convertible corporate bonds with a face value not exceeding RMB 720,000,000.00 to unspecified targets.

The convertible corporate bonds issued by the Company are named "Petti Convertible Bond." Each bond has a face value of RMB 100, and is issued at par. A total of 7.2 million bonds will be issued, with a term of 6 years.

The total amount of funds to be raised from the issuance of convertible corporate bonds by the Company is RMB 720,000,000.00. After deducting underwriting and issuance fees, intermediary fees, handling fees, information disclosure fees, and other related expenses, the net proceeds from the fundraising will be RMB 711,859,782.01. These funds were transferred to the special account for fundraising on December 28, 2021. Zhonghui Certified Public Accountants (Special General Partnership) has audited the situation regarding the receipt of funds for the Company's issuance of convertible corporate bonds to unspecified targets as of December 28, 2021, and issued the "Verification Report on the Receipt of Funds for Convertible Bond Issuance" (Zhonghui Hui Yan (2021) No. 8205).

The Petti Convertible Bond was listed on January 21, 2022. The bond abbreviation is "Petti Convertible Bond," the bond code is 123133. The conversion period starts from the first trading day six months after the issuance completion date (December 28, 2021), which is June 28, 2022, and ends on the maturity date, December 21, 2027.

II. Determination and Historical Changes of the Conversion Price

(I) Determination of the Initial Conversion Price

According to the Company's "Prospectus for Issuance of Convertible Corporate Bonds to Unspecified Targets" (hereinafter referred to as the "Prospectus") and the relevant regulations of the CSRC regarding the issuance of convertible corporate bonds, the initial conversion price of the Petti Convertible Bond is RMB 19.92 per share.

(II) Historical Changes of the Conversion Price