Group 1 - The company has signed a tripartite supervision agreement for the storage of raised funds to ensure proper management and protect investor rights [4][28][29] - The total amount of funds raised through the issuance of shares to specific targets is capped at 1,000,000,000.00 yuan, with a net amount of 982,169,508.71 yuan after deducting issuance costs [3][17][26] - The funds will be allocated to various projects, including a 22,000 tons/year lithium battery material production project, a 10,000 tons/year liquid lithium salt project, and a 1,100 tons/year additive project [27][29][30] Group 2 - The company will provide loans to its subsidiaries using the raised funds, with specific amounts allocated for each project [25][27][30] - The interest rates for the loans will be based on the company's average financing costs and relevant regulations [27][30][50] - The board of directors and the supervisory board have approved the adjustments to the investment amounts for the projects, ensuring compliance with relevant regulations [19][20][48][49]

Summary of Key Points Core Viewpoint The company, Shida Shenghua New Materials Group Co., Ltd., is utilizing raised funds to provide loans to its subsidiaries for the implementation of investment projects, which has been approved by the board and supervisory committee, ensuring compliance with relevant regulations and protecting shareholder interests [1][8][9]. Fundraising Overview - The company received approval from the China Securities Regulatory Commission for a stock issuance, with a total fundraising amount not exceeding RMB 1,990 million [1]. - The actual net amount raised was RMB 982,169,508.71 after deducting issuance costs [1][2]. Investment Project Funding - The adjusted total amount for investment projects is RMB 982,169,508.71 [2]. - The company plans to allocate RMB 70 million to its wholly-owned subsidiary, Shenghua New Energy Technology (Dongying) Co., Ltd., for a project with an annual production capacity of 11,000 tons of additives [6][8]. - RMB 130 million will be provided to the controlling subsidiary, Dongying Shida Shenghua New Energy Co., Ltd., for a project with an annual production capacity of 100,000 tons of liquid lithium salt [6][8]. - RMB 482,169,508.71 will be allocated to Shenghua New Energy Technology (Wuhan) Co., Ltd. for a project with an annual production capacity of 220,000 tons of lithium battery materials [6][8]. Loan Management and Compliance - The loans will be issued based on project needs, with interest rates reflecting the company's average financing costs [7]. - A tripartite supervision agreement has been signed to ensure proper management of the raised funds [7]. - The company will adhere to regulations regarding the use of raised funds, ensuring no alteration of intended use that could harm shareholder interests [7][9]. Approval Process - The board of directors and the supervisory committee have both approved the use of raised funds for loans to subsidiaries, confirming compliance with regulatory requirements [8][9]. - The sponsor has verified that the process followed necessary procedures and does not harm shareholder interests [9].

Meeting Details - The supervisory board meeting was held in accordance with relevant laws and regulations, with all three supervisors participating in the voting process [1][2] - The meeting was chaired by Mr. Gao Jianhong and took place on August 26, 2025, via telecommunication [1] Resolutions Passed - The supervisory board approved the proposal to adjust the investment amount for fundraising projects, stating that the decision aligns with the company's strategic planning and operational needs, ensuring no harm to shareholder interests [2] - The board also approved the proposal to provide loans from the raised funds to subsidiaries for project implementation, with specific amounts allocated for different projects [3][4] Fund Allocation - A total of 70 million yuan will be loaned to the wholly-owned subsidiary Shenghua New Energy Technology (Dongying) Co., Ltd. for a project with an annual production capacity of 11,000 tons of additives [3] - An amount of 130 million yuan will be loaned to the controlling subsidiary Dongying Shida Shenghua New Energy Co., Ltd. for a project with an annual production capacity of 100,000 tons of liquid lithium salt [3] - A total of 482.17 million yuan will be loaned to Shenghua New Energy Technology (Wuhan) Co., Ltd. for a project focused on the integrated production and research of lithium battery materials with an annual capacity of 220,000 tons [3]

Group 1 - The company announced the adjustment of its 2022 A-share issuance plan, reducing the total fundraising amount from a maximum of 19.9 billion to 10 billion [1] - The net proceeds after deducting issuance costs are intended for various projects, including a 220,000 tons/year lithium battery materials R&D integration project (500 million), a 100,000 tons/year liquid lithium salt project (130 million), a 11,000 tons/year additive project (70 million), and to supplement working capital (300 million) [1] - Other aspects of the plan remain unchanged [1]