Core Viewpoint - The company has decided to terminate the capital increase and equity restructuring of its wholly-owned subsidiary PT INDONESIA QINGMEI ENERGY MATERIALS due to changes in internal and external circumstances, aiming to mitigate financial risks and ensure the integrity of its business operations [5][7]. Group 1: Board Meeting Details - The 11th meeting of the 7th Board of Directors was held on February 11, 2026, with all 6 attending directors, meeting the quorum requirements [2]. - The meeting was presided over by Chairman Xu Kaihua, and the time, place, and method of the meeting complied with relevant laws and regulations [2]. Group 2: Resolution of the Meeting - The board unanimously approved the proposal to terminate the capital increase and equity restructuring of the subsidiary, with 6 votes in favor and no opposition or abstentions [3]. - The independent directors held a special meeting to review and approve the matter before it was submitted to the board [3]. Group 3: Transaction Overview - The company had previously approved a capital increase for PT INDONESIA QINGMEI ENERGY MATERIALS, which would have diluted its ownership and potentially led to financial support risks [6]. - The decision to terminate the transaction was made after careful assessment and discussions with all parties involved [7]. Group 4: Impact of Termination - The termination of the transaction is expected to safeguard the company's business integrity and financial security, benefiting both the company and its investors [8]. - The strategic cooperation with various parties remains unchanged, and the company will continue to leverage social resources to enhance its core competitiveness [8].

Core Viewpoint - The company has decided to terminate the capital increase and equity restructuring plan for its wholly-owned subsidiary due to changes in the internal and external environment, aiming to mitigate financial assistance risks and protect the integrity and safety of its business operations and investor interests [1] Group 1 - The company held the 11th meeting of the 7th Board of Directors to review and approve the termination of the capital increase and equity restructuring plan [1] - The decision was made after a careful assessment of the risks associated with potential financial assistance arising from the transaction [1] - The company signed a termination agreement with all parties involved to formalize the decision and ensure compliance with domestic and international circumstances [1] Group 2 - Following the termination of the transaction, the target company will remain a wholly-owned subsidiary of the company, ensuring no external financial assistance will be created [1] - The move is intended to safeguard the company's business integrity and maintain the controllability and safety of its funds [1] - The decision reflects the company's commitment to protecting the interests of its investors amidst changing market conditions [1]