Group 1 - The company has opened a new fundraising special account and signed a six-party supervision agreement for the management of raised funds [3][4] - The company raised a total of RMB 4,499,999,977.60 by issuing 181,451,612 shares at a price of RMB 24.80 per share, with a net amount of RMB 4,496,949,561.34 after deducting issuance costs [2] - The independent financial advisor, CITIC Securities, has transferred the net raised funds to the company's designated special account [2] Group 2 - The company has decided to change the implementation subject of the fundraising investment project to Hunan Zhonglan New Material Technology Co., Ltd. [3] - The special account is specifically for the project of expanding the production of 3,000 tons/year CTFE and 10,000 tons/year R113a [5] - The agreement stipulates that the special account must only be used for the designated fundraising project and prohibits the use of funds for other purposes [5][6] Group 3 - The agreement includes provisions for cash management of temporarily idle funds, requiring notification to the independent financial advisor [5][6] - The independent financial advisor has the right to supervise the management and use of the raised funds, including conducting on-site investigations [6][7] - The agreement will remain effective until all funds are fully utilized and the supervision period by the independent financial advisor ends [10]

Core Viewpoint - The company is undergoing a restructuring process by merging its wholly-owned subsidiaries to enhance operational efficiency and optimize its fluorochemical business structure [2][7]. Group 1: Merger Details - The company’s wholly-owned subsidiary, Hunan Zhonglan New Materials Technology Co., Ltd., will absorb another wholly-owned subsidiary, Chenzhou Zhonghua Fluorine Source New Materials Co., Ltd. [2][7] - After the merger, Hunan Zhonglan will inherit all assets, debts, and rights of Chenzhou Fluorine Source, which will be deregistered [2][3]. Group 2: Fundraising and Investment Projects - The company raised a total of RMB 4,499,999,977.60 through the issuance of 181,451,612 shares at RMB 24.80 per share, with a net amount of RMB 4,496,949,561.34 after deducting issuance costs [3][4]. - The fundraising will be used for projects including the expansion of a 3,000 tons/year CTFE and 10,000 tons/year R113a co-production project, with the implementation subject changing from Chenzhou Fluorine Source to Hunan Zhonglan [6][7]. Group 3: Approval Process - The board of directors and the supervisory board approved the merger and the change of the investment project implementation subject during meetings held on August 28, 2025 [8][10]. - The independent financial advisor, CITIC Securities, confirmed that the merger and project changes complied with relevant regulations and did not alter the intended use of the raised funds [9][10].

Core Viewpoint - The company is undergoing a restructuring process by merging its wholly-owned subsidiaries to enhance operational efficiency and optimize its corporate structure, specifically in the fluorochemical business sector [1][5]. Group 1: Merger Details - The company’s wholly-owned subsidiary, Hunan Zhonglan New Materials Technology Co., Ltd., will absorb another subsidiary, Chenzhou Zhonghua Fluorine Source New Materials Co., Ltd., with the latter's legal entity being dissolved post-merger [1][5]. - The merger is aimed at improving the management efficiency and operational focus of the company, aligning with national and local reforms for state-owned enterprises [5][6]. Group 2: Fundraising and Investment Projects - The company raised approximately RMB 4.5 billion through the issuance of 181,451,612 shares at a price of RMB 24.80 per share, with net proceeds amounting to RMB 4,496,949,561.34 after deducting issuance costs [2][4]. - The investment project "Expansion of 3,000 tons/year CTFE and 10,000 tons/year R113a co-production project" will now be implemented by Hunan Zhonglan New Materials following the merger [5][6]. Group 3: Approval Process - The board of directors and the supervisory board approved the merger and the change of the investment project’s implementation entity during meetings held on August 28, 2025 [6][8]. - The independent financial advisor, CITIC Securities, confirmed that the merger and the change of the investment project’s implementation entity comply with relevant regulations and do not alter the intended use of the raised funds [7][8].