Fundraising Overview - The company was approved to publicly issue 33,258,134 shares at a price of 21.96 RMB per share, raising approximately 730.35 million RMB, with a net amount of about 656.86 million RMB after deducting issuance costs [2] Change in Fund Usage - The company decided to change the use of part of the raised funds from a "100,000 tons/year multi-category plastic bottle high-quality recycling project" to a "5 million m² new decorative building materials project," reallocating 142.64 million RMB, which is 21.72% of the net amount raised [3][4] New Fund Management Agreements - The company established new special accounts for the raised funds and signed tripartite supervision agreements with its underwriter and banks to ensure compliance with regulations and protect investor interests [4][5][13] Special Account Details - As of February 9, 2026, the special account for the new project had a balance of approximately 22.64 million RMB, and the funds are strictly designated for the specified projects [5][13] Monitoring and Compliance - The underwriter is responsible for supervising the use of the raised funds, with provisions for regular audits and reporting to ensure adherence to the agreements [6][12][16] Reporting Obligations - The bank is required to provide monthly account statements to the company and the underwriter, ensuring transparency in fund management [11][16]

Group 1 - The core announcement is about the change in the use of part of the raised funds and the establishment of new special accounts for fundraising, along with signing a tripartite supervision agreement [1][4][17] Group 2 - The company was approved to publicly issue 33,258,134 shares at a price of 21.96 yuan per share, raising approximately 730.35 million yuan, with a net amount of about 656.86 million yuan after deducting issuance costs [2] Group 3 - The company decided to change the project from "10,000 tons/year multi-category plastic bottle high-quality recycling project" to "annual production of 5 million m2 new decorative building materials project," reallocating 142.64 million yuan, which is 21.72% of the net raised funds [3] Group 4 - The company established a new special fundraising account at Bank of China for the new project, which will only be used for the storage and use of funds related to the new decorative building materials project [4][5] Group 5 - The tripartite supervision agreement involves the company, its sponsor Guojin Securities, and the banks, ensuring that the funds are managed according to relevant laws and regulations, protecting investor rights [5][6][13]

Core Viewpoint - The company is changing its fundraising project from a "100,000 tons/year multi-category plastic bottle high-quality recycling project" to a "5 million m2 new decorative building materials project" to enhance asset efficiency and profitability [2][16][31]. Fundraising Project Overview - Original fundraising project: "100,000 tons/year multi-category plastic bottle high-quality recycling project" with a total investment of approximately 800 million RMB and intended fundraising of 400 million RMB [2][7]. - New fundraising project: "5 million m2 new decorative building materials project" with a total investment of 150 million RMB and intended fundraising of 142.6384 million RMB [2][8]. - The amount of fundraising redirected: 142.6384 million RMB, accounting for 21.72% of the net fundraising amount from the initial public offering [2][16]. Project Implementation and Timeline - The new project is expected to commence production and generate revenue by December 2026 [3][19]. Reasons for Change - The change aims to improve fundraising efficiency and align with market demands, as decorative building materials offer higher profit margins compared to intermediate products like PET [16][24]. - The company has been a leader in the recycling industry for over 20 years and seeks to optimize its production capacity and meet international customer needs [16][17]. New Project Details - The new project will be implemented by the company's wholly-owned subsidiary, Shandong Yinglang Environmental Technology Co., Ltd., located in Zibo, Shandong Province [18]. - The project will involve leasing a factory of approximately 20,000 m2 and purchasing six extrusion production lines and two cutting and grooving lines [18][19]. Market Trends and Demand - The project aligns with structural changes in the decorative materials market, driven by consumer preferences for eco-friendly and easy-to-install products [20][21]. - The new decorative materials are designed to meet stringent environmental regulations in Europe and the U.S., enhancing their marketability [22][23]. Economic Benefits - Upon reaching full production, the new project is expected to generate an annual output value of 200 million RMB [26].