Group 1 - The company plans to issue shares to specific targets in 2025 through a simplified procedure, which was approved in the board meeting held on June 13, 2025 [1][3][4] - The announcement regarding the share issuance was disclosed on June 14, 2025, on the Shanghai Stock Exchange website [1][2] - The issuance is subject to approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission [1] Group 2 - The board meeting was attended by all nine directors, and the meeting procedures complied with relevant laws and regulations [3][5] - The board approved several proposals related to the share issuance, including the conditions for the simplified procedure and the specific plan for the issuance [4][6][7] - All proposals received unanimous support from the directors, with no votes against or abstentions [5][6][7] Group 3 - The company has also disclosed a report on the use of previously raised funds, detailing the actual amounts raised and their allocation [28][29] - The report indicates that the funds from the 2020 public offering and the 2022 targeted issuance have been fully utilized as planned [29][30] - The company has provided detailed accounts of the funds' storage and usage, ensuring transparency in financial management [30][31][34] Group 4 - The company corrected its 2023 annual report, clarifying the sales figures of its major customers, which did not affect the overall financial performance [23][24][25] - The correction involved separating the sales figures of two customers that were previously combined, ensuring accurate reporting [23][24][25]

Core Viewpoint - The company plans to issue A-shares to specific investors in 2025, which may dilute immediate returns but includes measures to compensate for this dilution [1][4][11] Financial Impact of the Issuance - The total share capital before the issuance is 20,814.82 million shares, projected to increase to 32,406.30 million shares post-issuance [2] - Assuming net profit remains flat compared to 2024, the basic and diluted earnings per share (EPS) will decrease from 0.36 to 0.34 [2] - If net profit grows by 10%, the basic EPS will increase to 0.37, while if it grows by 20%, the basic EPS will rise to 0.40 [3] Necessity and Rationality of the Issuance - The fundraising projects align with national industrial policies and the company's strategic development, enhancing competitiveness and sustainability [4][6] Relationship of Fundraising Projects to Existing Business - The company focuses on OLED display key materials and evaporation source equipment, with the fundraising aimed at expanding production capacity and optimizing processes [5][6] Measures to Compensate for Dilution of Immediate Returns - The company will accelerate project implementation and improve fund usage efficiency to mitigate the dilution risk [9] - A strict fundraising management system will be enforced to ensure proper use of raised funds [10] - The company will enhance governance and operational efficiency to support sustainable growth [10] Commitments from Company Executives - All directors and senior management have committed to ensuring the effectiveness of the compensation measures and protecting shareholder interests [11]