Jinsheng New Materials: Announcement on adjusting the investment scale and closing of some fundraising projects

Securities code: 300849 Securities abbreviation: Jinsheng New Materials Announcement number: 2026-023

Zhejiang Jinsheng New Materials Co., Ltd.

Announcement on adjusting the investment scale and closing of some fundraising projects

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and that there are no false records, misleading statements or major omissions.

Important content reminder:

 The name of the investment project with raised funds to be adjusted and closed this time (hereinafter referred to as the raised investment project): Annual output

Construction project of 60 million sets of cosmetic packaging containers.

 The funds raised for the investment project to be adjusted and closed this time have been used up in June 2023 and the special account for the investment project has been cancelled. This fundraising project has been re-evaluated and it is planned to reduce the company’s own capital investment

Scale and close.

 The above matters have been reviewed and approved at the third meeting of the company’s fourth board of directors and still need to be submitted to the company’s shareholders’ meeting for review.

Zhejiang Jinsheng New Materials Co., Ltd. (hereinafter referred to as the company) held the third meeting of the fourth board of directors on August 28, 2026, and reviewed and approved the "Proposal on Adjusting the Investment Scale and Closing of Some Fund-raised Projects", and agreed to adjust the investment scale and close the "Construction Project of Cosmetic Packaging Containers with an Annual Output of 60 Million Sets". The proposal still needs to be submitted to the company's shareholders' meeting for review. The details are now announced as follows:

1. Basic situation of raised funds

Approved by the China Securities Regulatory Commission's "Reply on Approval of the Initial Public Offering of Stocks by Zhejiang Jinsheng New Materials Co., Ltd." (CSRC License [2020] No. 897), Zhejiang Jinsheng New Materials Co., Ltd. issued an initial public offering of 25 million RMB ordinary shares, with a face value of RMB 1.00 per share, an issue price of RMB 13.99 per share, and a total amount of funds raised of RMB 349,750,000.00. After deducting various issuance expenses (excluding tax) of RMB 56,900,000.00, the actual net amount of funds raised was RMB 292,850,000.00. The above-mentioned receipt of raised funds was verified by Zhonghui Accounting Firm (Special General Partnership), and Zhonghui Huiyan [2020] No. 5007 "Capital Verification Report" was issued on July 3, 2020.

The company has stored the raised funds in a special account in accordance with relevant regulations, and signed a "Tripartite Supervision Agreement on Raised Funds" with the sponsor institution and the bank where the raised funds are deposited, which clarifies the rights and obligations of all parties.

In June 2023, all funds raised from the company's initial public offering of stocks have been used up, and all special accounts for raised funds have been cancelled. The details are as follows:

Unit: RMB

Bank of opening Bank account number Purpose of raised funds Status Balance of raised funds Bank of Communications Co., Ltd. Annual output of 45 million sets of makeup

294056200013000018031 Canceled - New product packaging container project of Shaoxing Shangyu Branch

Industrial and Commercial Bank of China Co., Ltd. has an annual output of 60 million sets of cosmetics

1211023729100017113 Canceled - Co., Ltd. Shaoxing Jiangbin Branch Product Packaging Container Construction Project

Total -

2. Overview of investment projects with raised funds and use of raised funds

According to the company’s Prospectus for Initial Public Offering of Stocks and Listing on GEM, the funds raised by the company’s initial public offering of stocks will be used for the following projects:

Unit: RMB 10,000

Plan to use raised funds

Serial number Project name Total project investment Filing number

Amount of money

Increase annual production of 15 million sets of makeup

1 9,222.00 9,222.00 2018-330600-29-03-082034-000 Product packaging container technical transformation project

Annual output of 45 million sets of cosmetics

2 20,063.00 20,063.00 2018-330600-29-03-095356-000 New packaging container project

Total 29,285.00 29,285.00

The company held the twelfth meeting of the second board of directors and the eighth meeting of the second board of supervisors on August 16, 2021, and held the first extraordinary shareholders meeting of 2021 on September 1, 2021. The meeting reviewed and approved the "Proposal on Changing the Investment Projects and Implementation Locations of Raised Funds" and agreed to change the use of uninvested raised funds under the "Technical Improvement Project to Increase the Annual Production of 15 Million Cosmetic Packaging Containers" raised by the company's initial public offering of shares to "Annual Production of 6,000 Cosmetics Packaging Containers". "Construction Project of Ten Thousand Sets of Cosmetic Packaging Containers", and at the same time, the implementation location was changed to the Binhai New Area [2021] G16 (JB-08-1-02-8) plot acquired by the company with its own funds (located in Lihai Street, Binhai New District, Shaoxing City, Zhejiang Province, bounded by Yudong Road in the east, Canghai Road in the south, Yuzhou Road in the west, and Shunhai Road in the north). For details of the changes, please refer to the announcement "Announcement on Changes in Investment Projects and Implementation Locations of Raised Funds" (2021-042) disclosed by the company on the information disclosure website designated by the China Securities Regulatory Commission (www.cninfo.com.cn).

As of the disclosure date of this announcement, the company’s investment projects and use of funds raised from the initial public offering of stocks are as follows:

Unit: RMB 10,000 cumulative investment raised

Whether the proposed project investment has changed the fund-raising commitment and the adjusted fund-raising

Investment direction of raised funds Fund amount (including profit) Project status Total amount of funds Updated project Total investment Total amount of financial investment

interest income)

Increase annual production of 15 million sets of cosmetics

9,222.00 Yes 9,222.00 1,374.68 1,374.68 The packaging container technical renovation project has been changed and terminated

Annual output of 45 million cosmetic bags

20,063.00 No 20,063.00 20,063.00 19,523.01 Completed new container project [Note 1]

Annual output of 60 million cosmetic bags

29,969.00 No - 7,847.32 8,282.23 [Note 2] It is planned to adjust and close the container construction project

Total 29,285.00 29,285.00 29,179.92

Note 1: The company held the third meeting of the third board of directors and the second meeting of the third board of supervisors on April 21, 2023. The meeting reviewed and approved the "Proposal on Closing Some Raised Investment Projects and Permanently Replenishing Liquidity with Surplus Raised Funds" and agreed to invest in the "annual output of 45 million yuan" The "New Set of Cosmetic Packaging Containers New Project" was completed and the remaining raised funds of 8.3114 million yuan (including financial income and interest income obtained from cash management, the actual amount is based on the balance of the special account on the day when the funds are transferred out) will permanently replenish working capital, and the actual transferred amount is 8.3293 million yuan. For details, please refer to the announcement "Announcement on the Closing of Some Fund-raised Investment Projects and the Permanent Replenishment of Liquidity with Surplus Funds Raised Funds" (2023-018) disclosed by the company on the information disclosure website designated by the China Securities Regulatory Commission (www.cninfo.com.cn);

Note 2: Among them, the net amount of financial income and interest income obtained from cash management after deducting handling fees is 4.3491 million yuan (the same below); Note 3: If the total does not match the sum of the sub-items, it is due to rounding.

3. Details of the adjustment and closing of the investment scale of this fundraising project

(1) Details of the reduction and settlement of the investment amount of the raised investment project this time

1. The company held the twelfth meeting of the second board of directors and the eighth meeting of the second board of supervisors on August 16, 2021, and held the first extraordinary shareholders' meeting of 2021 on September 1, 2021. The meeting reviewed and approved the "Proposal on Changing the Investment Projects and Implementation Locations of Raised Funds" and agreed to increase the annual production of 1,500 yuan for the investment projects raised by the company's initial public offering of stocks. The purpose of the uninvested raised funds under the "Technical Improvement Project of 10,000 Cosmetic Packaging Containers" was changed to the "Construction Project of Annual Production of 60 Million Cosmetic Packaging Containers". The details of the construction project with an annual output of 60 million sets of cosmetic packaging containers are as follows:

The company plans to invest 299.69 million yuan to build a construction project with an annual output of 60 million sets of cosmetic packaging containers, engaged in blow molding bottles, lotion pumps, foam pumps and other care and cosmetic packaging. Among them, 78.4732 million yuan of raised funds are planned to be used, and the shortfall of 221.2168 million yuan will be raised by the company itself. The specific investment details are as follows:

Serial number Project Project funds (10,000 yuan) Percentage

1. Construction investment 28,909 96.46% 1 Engineering costs 28,048 93.59% 1.1 Civil construction investment 11,878 39.63% 1.2 Equipment investment 15,570 51.95% 1.3 Mold investment 600 2.00% 2 Other engineering construction costs 20 0.07% 3 Preparatory fee 841 2.81% 2 Funding working capital 1,060 3.54% 3 Total investment 29,969 100.00%

The project implementation site is located in Lihai Street, Binhai New District, Shaoxing City, Zhejiang Province, bounded by Yudong Road to the east, Canghai Road to the south, Yuzhou Road to the west, and Shunhai Road to the north. The planned construction period of the project is 48 months. For details, please refer to the "Announcement on Changes in Investment Projects and Implementation Locations of Raised Funds" disclosed by the company on cninfo.com on August 17, 2021 (announcement number: 2021-042).

2. The company held the twelfth meeting of the third board of directors and the tenth meeting of the third board of supervisors on August 25, 2025, and held the first extraordinary shareholders' meeting of 2025 on September 16, 2025. The meeting reviewed and approved the "Proposal on Adjusting the Internal Investment Structure and Project Extension of the Company's Raised Fund Investment Projects". Based on the actual construction situation of the "Construction Project of Cosmetic Packaging Containers with an Annual Output of 60 Million Sets", the company appropriately adjusted the internal investment structure of the raised investment project without changing the investment purpose of the raised funds and the total project investment, and extended the date for the project to reach the scheduled usable state to September 1, 2026. The internal structural adjustments of the project are as follows:

Unit: RMB 10,000 Serial number Project Amount of planned investment before adjustment Amount of planned investment after adjustment Increase or decrease

1 Construction investment 28,909.00 25,685.61 -3,223.39

1 Engineering costs 28,048.00 25,422.81 -2,625.19 1.1 Civil construction investment 11,878.00 17,092.81 5,214.81 1.2 Equipment investment 15,570.00 7,730.00 -7,840.00 1.3 Mold investment 600.00 600.00 - 2 Other project construction costs 20.00 262.80 242.80

3 Reserve fee 841.00 - -841.00II Preparing working capital 1,060.00 4,283.39 3,223.39III Total project investment 29,969.00 29,969.00 0

For details, please refer to the "Announcement on Adjusting the Internal Investment Structure and Project Extension of the Company's Raised Fund Investment Projects" disclosed by the company on cninfo.com on August 26, 2025 (announcement number: 2025-029).

3. The original planned production capacity of the raised investment project was based on the past rapid market growth expectations. The current market has shifted from incremental expansion to stock game, coupled with intensified industry competition, the investment return expectation of the original project has been significantly reduced. Taking into account the market environment, business planning and capital utilization efficiency of the raised investment project, the company plans to reduce the investment scale of the raised investment project and close it. The specific reduction is as follows:

Unit: RMB 10,000 Serial number Project Amount of planned investment before adjustment Amount of investment after adjustment Amount of reduction

1. Construction investment 25,685.61 20,409.14 5,276.47

1 Engineering costs 25,422.81 20,146.34 5,276.47 1.1 Civil construction investment 17,092.81 17,092.81 - 1.2 Equipment investment 7,730.00 3,053.53 4,676.47 1.3 Mold investment 600.00 - 600.00 2 Other project construction costs 262.80 262.80 -2 Preparing working capital 4,283.39 - 4,283.39

3. Total project investment 29,969.00 20,409.14 9,559.86

Note: A total of 82.8223 million yuan of raised funds have been invested in this project, and the raised funds have been used up. The company has canceled the special account for the raised investment project in June 2023. For details, please refer to the "Announcement on the Completion of the Cancellation of the Special Account for Raised Funds" disclosed by the company on June 6, 2023 on cninfo.com (announcement number: 2023-029). The amount proposed to be reduced this time is the scale of the company’s own capital investment.

(2) Specific adjustments to various expenses

1. Equipment purchase fee reduction

The core reason for the reduction in equipment investment in this project is that multiple factors such as the slowdown in the downstream industry and intensified competition have led to the loss of necessary market support for large-scale equipment investment. The focus of this construction has shifted from capacity expansion to environmental compliance, safety supporting facilities, and infrastructure improvement. The company plans to reduce asset-heavy main engine purchases and no longer pursue linear growth in production capacity. At the same time, on the one hand, it will focus on investing in environmental protection and safety facilities such as painting exhaust gas treatment, sewage treatment and purification systems to ensure compliance operations; on the other hand, it will consolidate infrastructure such as engineering transformation and water and electricity installation to ensure that the project has actual operational capabilities under the premise of compliance and safety.

2. Mold investment reduction

The original plan reserved mold investment based on the project's established production capacity targets and the production needs of core equipment. In this project adjustment, the company has optimized the overall investment structure and reduced the investment scale of core production equipment. The demand for molds originally planned to support the new production capacity no longer exists. Based on the above actual situation, the company decided to reduce mold investment.

3. Reduce the liquidity of the base

After this project adjustment, the company optimized its investment structure, reduced its investment in the purchase of core production equipment, and its working capital requirements also decreased. Based on changes in actual operating needs, the company reduced its basic working capital and improved the efficiency of capital use.

(3) Reasons and rationality for adjusting the investment scale and closing of the raised investment project this time

The "Construction Project with an annual output of 60 million sets of cosmetic packaging containers" was comprehensively formulated by the company based on factors such as the market environment, industry development trends and the company's actual situation at the time. It plans to engage in the packaging of toiletries and cosmetics products such as blow molded bottles, lotion pumps, and foam pumps.

This adjustment and closing of the investment scale of the raised investment project is essentially a recalibration of capital investment and strategic direction. By significantly reducing equipment investment, the company has effectively avoided the risk of idle new production capacity and heavy depreciation burden; at the same time, the company's saved working capital has been given priority to ensure daily operational investment and ensure the steady operation of existing businesses. The project has established a complete and efficient production support system, which can effectively meet the company's current production and operation needs, and also reserves space for phased production after the market picks up in the future. Therefore, this adjustment of the investment scale and completion of the raised investment project is in line with the company's development strategy and is a necessary measure to ensure the company's production and development.

4. The impact of this adjustment on the investment scale and closing of the raised investment project on the company

The company's adjustment and closing of the investment scale of the raised investment project this time is based on a prudent decision based on market development and the company's business plan. It is conducive to improving the efficiency of fund use and is in line with the company's long-term development requirements. There is no harm to the interests of the company and small and medium-sized shareholders, and it does not violate the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange on the use of funds raised by listed companies.

5. Review procedure

The company held the third meeting of the fourth board of directors on August 28, 2026, and reviewed and approved the "Proposal on Adjusting the Investment Scale and Closing of Some Fund-raising Projects". Based on the current market environment and the company's actual operating conditions, the company hired Shenzhen Elephant Investment Consulting Co., Ltd. to re-evaluate the "construction project with an annual output of 60 million sets of cosmetic packaging containers". The company's board of directors believes that the adjustment and closing of the investment scale of some raised investment projects this time will help improve the efficiency of fund use, avoid inefficient investments to effectively protect the rights and interests of shareholders, and is in line with the company's actual situation and long-term development. The board of directors agreed to adjust the investment scale and close the projects of some fundraising projects.

6. Documents for reference

(1) Resolutions of the third meeting of the fourth board of directors;

(2) Shenzhen Elephant Investment Consulting Co., Ltd. "Feasibility Study Report on Investment Adjustment for the Construction Project of Zhejiang Jinsheng New Materials Co., Ltd. with an annual output of 60 million sets of cosmetic packaging containers".

Board of Directors of Zhejiang Jinsheng New Materials Co., Ltd.

August 29, 2026