Announcement on Dilution of Immediate Returns from Issuing A Shares to Specific Objects in 2026 and Measures Taken by the Company to Compensate and Commitments of Relevant Parties

Announcement on Dilution of Immediate Returns from Issuing A Shares to Specific Objects in 2026 and Measures Taken by the Company to Compensate and Commitments of Relevant Parties

The Company and the entire Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false representations, misleading statements, or significant omissions.

In accordance with 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), the "Several Opinions of the State Council on Further Promoting the Healthy Development of the Capital Market" (Guo Fa [2014] No. 17), and the "Guiding Opinions on Matters Concerning the Dilution of Immediate Returns from Issuance, Refinancing, and Major Asset Restructuring" (Zheng Jian Fa [2015] No. 31), and other relevant regulations, to protect the right to information and interests of small and medium investors, the Company has conducted a thorough analysis of the impact of the issuance of A shares to specific objects in 2026 on the diluted immediate returns and formulated specific measures to compensate for the returns. Relevant parties have also made commitments to ensure the effective implementation of the measures proposed by the Company to compensate for the returns. The details are as follows:

I. Impact of the Current Issuance of A Shares to Specific Objects on the Company's Main Financial Indicators

(I) Calculation Assumptions and Premises

1. It is assumed that the macroeconomic environment, industrial policies, industry development status, and product market conditions will not change significantly.

2. It is assumed that the issuance of shares to specific objects will be completed in March 2027. This completion time is an estimate for the Company's calculation purposes and will be subject to the actual completion time approved by the China Securities Regulatory Commission (CSRC) for registration and issuance.

3. As of the announcement date of the proposal, the Company's total share capital is 400,010,000 shares. The number of A shares to be issued to specific objects will not exceed 50,000,000 shares (inclusive). It is assumed that the number of A shares to be issued to specific objects will be at the upper limit of the issuance, i.e., 50,000,000 shares. This issuance volume is an estimate for the Company's calculation purposes and will be subject to the actual number of shares issued upon approval by the CSRC for registration and issuance.

4. According to the Company's 2025 Annual Report, in 2025, the net profit attributable to the parent company's shareholders was 19,135.27 million yuan, and the net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses was 18,540.72 million yuan. 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 and 2027 will increase by 10%, remain flat, or decrease by 10% compared to the previous year. The above assumptions are only for calculating the impact of the current issuance on the Company's immediate returns and do not represent a judgment on the Company's operating conditions and trends, nor do they constitute a profit forecast.

5. When calculating the Company's total share capital after the issuance, only the impact of this issuance on the total share capital is considered, and other possible equity changes are not considered.

6. This calculation does not consider the impact of the raised funds on the Company's production and operation, financial status (such as financial expenses, investment income), etc., after they are received.