Tongcheng New Materials Group Co., Ltd. Announcement on the Progress of Estimated Annual Financing Guarantee

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Stock code: 603650 Stock abbreviation: Tongcheng New Materials Announcement No.: 2026-014

Tongcheng New Materials Group Co., Ltd.

Announcement on the Progress of Annual Estimated Financing Guarantees

The board of directors of the Company and all directors hereby guarantee that this announcement contains no false records, misleading statements, or material omissions, and assume legal responsibility for the truthfulness, accuracy, and completeness of the contents of this announcement.

Key Matters to Note:

● Guarantee Targets and Basic Information

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● Cumulative Guarantee Situation

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I. Overview of the Guarantee

(1) Basic Information of the Guarantee

To meet the needs of the subsidiaries’ day-to-day operations and business development, on March 19, 2026, Tongcheng New Materials Group Co., Ltd. (hereinafter referred to as the “Company”) signed the Guarantee Contract with the Shanghai Pudong Development Bank Co., Ltd., Konggang Sub-branch, under which Tongcheng Chemical (China) Co., Ltd. (hereinafter referred to as “Tongcheng Chemical”) and the Shanghai Pudong Development Bank Co., Ltd., Konggang Sub-branch entered into the “Working Capital Loan Contract,” and the Company provides joint and several liability guarantee. The principal amount of the loan being guaranteed is RMB 30 million. As of now, the outstanding guarantee balance that the Company has actually provided for Tongcheng Chemical is RMB 492.19 million.

(2) Internal Decision-Making Procedures

The Company, at the 21st meeting of the third session of the board of directors convened on April 17, 2025, and the 2024 annual general meeting of shareholders convened on May 8, 2025, approved the proposal on the Company’s 2025 annual estimated financing guarantee额度. To meet the Company’s needs for production, operation, and development, it is expected that in 2025 the Company will provide mutual guarantees in the amount of RMB 5.0 billion (including guarantees for internal guarantees and external loans) between the Company’s subsidiaries, the subsidiaries providing guarantees for the Company, and the subsidiaries providing mutual guarantees with each other, for the purposes of applying for comprehensive credit facilities with banks. Specifically, the guarantee额度 for guarantee targets with an asset-liability ratio of 70% or above is RMB 200 million; the guarantee额度 for guarantee targets with an asset-liability ratio below 70% is RMB 4.8B. For details, please refer to the Company’s “Resolution Announcement of the 21st Meeting of the Third Session of the Board of Directors of Tongcheng New Materials” (Announcement No.: 2025-020) and “Announcement on the Company’s 2025 Annual Estimated Financing Guarantee额度” (Announcement No.: 2025-025), published in the designated information disclosure media on April 18, 2025 and May 9, 2025, respectively, and the “Resolution Announcement of the 2024 Annual General Meeting of Shareholders of Tongcheng New Materials” (Announcement No.: 2025-037), published in the designated information disclosure media.

II. Basic Information of the Guaranteed Party

(1) Basic Information

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III. Main Contents of the Guarantee Agreement

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IV. Necessity and Reasonableness of the Guarantees

This guarantee is mainly to meet the needs of the subsidiaries’ day-to-day operations and business development, and it is consistent with the Company’s overall interests and development plan. The guaranteed party in this instance is a wholly-owned subsidiary of the Company. The financial risks are within a controllable range. The operating situation is stable, the credit standing is good, and it has the ability to repay debts. Overall guarantee risk is controllable, will not have a significant impact on the Company’s day-to-day operations, and there is no circumstance that harms the interests of the Company and its minority shareholders.

V. Board of Directors’ Opinions

This guarantee occurred within the guarantee额度 approved at the Company’s 2024 annual general meeting of shareholders. After the额度 was approved at the 21st meeting of the third session of the board of directors, it was submitted to the general meeting for deliberation. When examining this额度, the board of directors held that the guaranteed party is the Company and subsidiaries within the consolidated financial statement scope. Mutual provision of guarantees between the Company and its subsidiaries is a necessary condition to ensure the financing for normal production and operations of each company within the consolidated financial statement scope. Moreover, the financial risks are within a controllable range and there is no circumstance that harms the interests of the Company and its shareholders. The guaranteed party in this instance is a wholly-owned subsidiary of the Company, and there is no circumstance that harms the interests of the Company and the vast number of investors.

VI. Total Number of External Guarantees and Number of Guarantees in Arrears

As of the date of disclosure of this announcement, the total amount of external guarantees provided by the Company and its subsidiaries is RMB 2.82B, all of which are guarantees provided between companies within the consolidated financial statement scope, between subsidiaries, and between subsidiaries and subsidiaries. They account for 83.99% of the net assets audited in the most recent period. Apart from the above guarantees, the Company does not have any other external guarantees. The Company and its subsidiaries have no guarantees in arrears.

This announcement is hereby given.

Board of Directors of Tongcheng New Materials Group Co., Ltd.

April 4, 2026

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