Shengtak New Materials Co., Ltd. on the Offering of Convertible Corporate Bonds to Unspecified Objects

Statement

The China Securities Regulatory Commission and the exchange's decisions or opinions regarding this issuance do not guarantee the authenticity, accuracy, or completeness of the application documents and disclosed information, nor do they make substantive judgments or guarantees regarding the issuer's profitability, investment value, or investor returns. Any contrary statements are false representations. According to the Securities Law, after securities are legally issued, changes in the issuer's operations and earnings are the issuer's responsibility. Investors should independently assess the issuer's investment value and make their own investment decisions, bearing the investment risks arising from changes in the issuer's operations and earnings or fluctuations in securities prices after the legal issuance of securities.

Important Matters

The company particularly reminds investors to carefully read the main content of this prospectus before making investment decisions and pay special attention to the following important matters.

1. Compliance with Issuance Conditions: According to the Securities Law and relevant regulations, the company's issuance of convertible bonds to unspecified objects complies with the statutory issuance conditions.

2. Investment Risks of Convertible Bonds: Convertible bonds are investment instruments that combine characteristics of both bonds and equity, with complex trading terms requiring investors to possess certain professional knowledge. Investors should carefully study and understand the relevant terms before purchasing these convertible bonds to make informed investment decisions.

3. Credit Rating of the Issuance: The company has engaged Zhongzheng Pengyuan to conduct a credit rating for this issuance of convertible bonds. According to the credit rating report issued by Zhongzheng Pengyuan, the company's credit rating is A+, and the credit rating for this issuance of convertible bonds is also A+. During the term of these convertible bonds, Zhongzheng Pengyuan will conduct at least one follow-up rating annually. If changes in the external operating environment, the company itself, or rating standards lead to a change in the credit rating of these convertible bonds, it may increase investor risk and impact investor interests.

4. No Guarantee for the Issuance: This issuance of convertible bonds to unspecified objects is not guaranteed. Investors should be aware that the absence of guarantees may pose repayment risks.

5. Profit Distribution Policy and Post-Listing Profit Distribution:

   • (1) According to the Articles of Association, the issuer's profit distribution policy is as follows:
     1. The company's cash dividend policy aims for stable growth in dividends.
     2. The company implements a continuous and stable profit distribution policy, focusing on reasonable and stable returns for investors while considering the company's long-term and sustainable development.
     3. The form and interval of profit distribution: The company may distribute dividends in cash, stock, or a combination of both. The company will prioritize cash dividends; if the company grows rapidly, it may consider stock or a combination of cash and stock dividends based on actual operating conditions.
     4. Conditions for profit distribution:
        • (1) The proportion of cash dividends: Under conditions that meet cash profit distribution requirements, the company will generally distribute cash profits once a year; under certain conditions, the company may distribute interim cash profits. If the company's most recent annual audit report is not unqualified or contains significant uncertainties related to continued operations, it may not distribute profits. When the company's distributable profits for the year are positive and there are no major investment plans or significant cash payments, the cash profits distributed annually will not be less than 20% of the distributable profits achieved that year.
        • (2) Specific conditions for issuing stock dividends: If the company's operating conditions are good, it may propose a stock dividend distribution plan after meeting the above cash dividend conditions. If the company simultaneously distributes cash and stock dividends, it will implement a differentiated cash dividend policy based on the company's normal production and operational funding needs.