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International Composites: Feasibility Analysis Report on the Use of Funds Raised by Issuing A Shares to Specific Targets

Shenzhen Stock Exchange

2026/09/01

Securities code: 301526 Securities abbreviation: International Composites

Feasibility Analysis Report on the Use of Funds Raised by Chongqing International Composite Materials Co., Ltd.’s Issuance of A Shares to Specific Targets in 2026

August 2026

(Unless otherwise specified in this report, relevant terms have the same meaning as in the "Chongqing International Composite Materials Co., Ltd. 2026 Plan for Issuing A Shares to Specific Targets")

1. Use plan of funds raised this time

The total amount of funds raised by this issuance of stocks to specific targets shall not exceed RMB 5,000,000,000 (including the principal amount). The net amount of funds raised after deducting issuance expenses will be used for the following projects:

Unit: 10,000 yuan Serial number Project name Total investment Amount of raised funds Investment high-performance substrate high-frequency high-speed electronic fiber

1 302,050.57 272,000.00 cloth project

2 F07 Equipment Update and Technical Transformation Project 82,892.18 79,000.00 Ultra-low dielectric loss electronic grade Q cloth for AI

3 34,555.95 19,000.00 Trial technology development project

4 Supplementary working capital 130,000.00 130,000.00

Total 549,498.70 500,000.00

Before the funds raised from this issuance are in place, the company can invest its own or self-raised funds first according to the actual situation of the investment project with the raised funds, and replace them in accordance with the procedures stipulated in relevant laws and regulations after the funds raised are in place. After the raised funds are in place, if the actual net amount of raised funds after deducting issuance expenses is less than the total amount of funds to be invested, within the scope of the investment projects with funds raised from this issuance, the company will make appropriate adjustments to the sequence and amount of investment in the above-mentioned projects based on the actual amount of raised funds. The shortfall in raised funds will be solved by the company with its own or self-raised funds.

The total amount of funds raised this time will not exceed 500000000 yuan, of which 272000000 yuan will be used for the high-performance substrate high-frequency and high-speed electronic fiber cloth project; 790000000 yuan will be used for the F07 equipment update and technical transformation project Project; 190 million yuan will be used for the pilot technology development project of ultra-low dielectric loss electronic grade Q cloth for AI; 1.300 million yuan will be used to supplement working capital, accounting for 26.00% of the total funds raised, in line with relevant regulatory requirements.

2. Investment projects with funds raised this time

High-performance substrate high-frequency and high-speed electronic fiber cloth project

(1) Basic situation of the project

This project is implemented by the company. The project plans to build an electronic fiber yarn production plant and renovate the electronic fiber cloth production plant in the company's existing factory. At the same time, it will implement the transformation of the supporting ball-making workshop, purchase production equipment and supporting facilities such as batching, melting, drawing, twisting, weaving and post-processing, and build a high-frequency and high-speed electronic fiber cloth production capacity of 25.13 million meters per year.

(2) Project investment estimate

The total planned investment of this project is 3.0205057 million yuan, and it is planned to use raised funds of 2.720 billion yuan. The total project investment mainly includes engineering expenses, other engineering construction expenses, preliminary expenses, interest during the construction period, and preliminary working capital.

Unit: 10,000 yuan Serial number Project Total investment

1 Project costs 283,265.47 2 Other project construction costs 6,595.66 3 Preparatory expenses 7,246.53 4 Interest during the construction period 2,498.84 5 Preparing working capital 2,444.07

Total 302,050.57 (3) Project economic benefits and construction period

The financial internal rate of return of this project after income tax is 13.76%, and the static investment payback period after income tax is 7.91 years. The project has a good economic benefit prospect.

The above calculations do not constitute a profit forecast for the company, and the calculation results do not guarantee the company's future performance, and investors should not make investment decisions based on them. If investors make investment decisions based on this and cause losses, the company will not be liable for compensation, so investors are advised to pay attention.

(4) Project implementation location and implementation entity

The construction site of this project is located at No. 25 Qixin Avenue, Changshou Economic and Technological Development Zone, Chongqing and the company's Dadukou factory. The project implementation entity is Chongqing International Composite Materials Co., Ltd.

(5)Project approval procedure

As of the announcement date of the plan, the project has been filed and environmental impact assessment and other procedures are in the process of being processed.

F07 equipment update and technical transformation project

(1) Basic situation of the project

This project is implemented by Chongqing Tianze New Materials Co., Ltd., a wholly-owned subsidiary of the company. The project plans to use the existing production plant and batching system to carry out cold repair and technical transformation of the existing production line, update batching, melting, drawing, sizing, twisting, logistics and quality testing equipment and supporting facilities, and build an electronic-grade spinning production capacity of approximately 32,000 tons/year.

(2) Project investment estimate

The total planned investment of this project is 828.9218 million yuan, and the planned use of raised funds is 790.000 million yuan. The total project investment mainly includes engineering costs, other engineering construction costs, preliminary expenses, interest during the construction period and preliminary working capital.

Unit: 10,000 yuan Serial number Project Total investment

1 Project cost 75,394.69 2 Other project construction costs 1,778.05 3 Preparatory expenses 1,929.32 4 Interest during the construction period 854.30 5 Preparing working capital 2,935.82

Total 82,892.18 (3) Project economic benefits and construction period

The financial internal rate of return of this project after income tax is 13.12%, and the static investment recovery period after income tax is 7.99 years. The project's economic benefit prospects are good.

(4) Project implementation location and implementation entity

The construction site of this project is located at No. 25 Qixin Avenue, Changshou Economic and Technological Development Zone, Chongqing. The project implementation entity is Chongqing Tianze New Materials Co., Ltd.

(5)Project approval procedure

As of the announcement date of the plan, the project has been filed and environmental impact assessment and other procedures are in the process of being processed.

Pilot technology development project of ultra-low dielectric loss electronic grade Q cloth for AI

(1) Basic situation of the project

This project is implemented by the company. The project plans to use existing factories and public engineering facilities to build electronic-grade Q yarn and Q cloth pilot production lines, forming a pilot production capacity of 2.3 million meters/year of electronic grade Q cloth. It will focus on pilot verification of key processes such as Q yarn preparation, pulping and spooling, weaving, desizing and fiber opening.

(2) Project investment estimate

The total planned investment of this project is 345.5595 million yuan, and it is planned to use raised funds of 190.000 million yuan. The total project investment mainly includes engineering costs, other engineering construction costs, preliminary expenses, interest during the construction period and preliminary working capital.

Unit: 10,000 yuan Serial number Project Total investment

1 Project cost 30,244.84 2 Other project construction costs 2,403.09 3 Preparatory expenses 816.20 4 Interest during the construction period 368.11 5 Preparing working capital 723.72

Total 34,555.95 (3) Project economic benefits and construction period

The financial internal rate of return of this project after income tax is 27.88%, and the static investment recovery period after income tax is 4.80 years. The project's economic benefit prospects are good.

(4) Project implementation location and implementation entity

The construction site of this project is located at No. 1, Longshan Road, Changshou Economic and Technological Development Zone, Chongqing. The project implementation entity is Chongqing International Composite Materials Co., Ltd.

(5)Project approval procedure

As of the announcement date of the plan, the project has been filed and environmental impact assessment and other procedures are in the process of being processed.

Supplement working capital

(1) Basic situation of the project

The company plans to use 1.3 billion yuan of the funds raised this time to supplement working capital to meet the company's working capital needs in the process of production, operation and business development. As the company continues to promote the layout of high-performance and differentiated fiberglass products, as well as the development of wind power, electronics and other businesses, the company's capital needs in raw material procurement, production operations, market expansion and R&D investment have increased accordingly. This project will help enhance the company's financial strength, optimize capital structure, improve financial stability and risk resistance, and provide financial guarantee for the sustainable development of the company's main business.

(2) Project investment estimate

This project plans to use raised funds of 1.3 billion yuan.

(3)Project approval procedure

This project does not involve fixed asset investment, nor does it involve construction project filing, environmental impact assessment, energy conservation review, land use approval and other related procedures.

Changes in the company’s business and assets, company articles of association, shareholder structure, senior management structure, and business structure after this issuance

(1) The impact of this issuance on the company’s business and assets

The total amount of funds raised this time will not exceed 500,000,000 yuan, of which 2,720,000,000 yuan will be used for the high-performance substrate high-frequency and high-speed electronic fiber cloth project; 790,000,000 yuan will be used for the F07 equipment update and technical transformation project; 19,000. 00 million yuan was used for the pilot technology development project of ultra-low dielectric loss electronic grade Q cloth for AI; 1.30 billion yuan was used to supplement working capital, accounting for 26.00% of the total raised funds, which is closely related to the company's main business and does not involve the integration of the company's business and assets.

This issuance will help enhance the company's capital strength, further enhance the company's competitive advantage, and is in line with the company's long-term development goals and shareholders' interests.

(2) The impact of this issuance on the company’s articles of association

After the issuance is completed, the company's registered capital, total share capital and share capital structure will change. The company will modify the relevant provisions of the "Articles of Association" according to the actual situation of the issuance and handle industrial and commercial change registration.

(3) The impact of this issuance on the company’s shareholder structure

After the issuance is completed, the company's share capital size, shareholder structure and shareholding ratio will change. This issuance will not lead to changes in the company's controlling shareholders and actual controllers. After the issuance is completed, the company's equity distribution still meets the listing conditions.

(4) The impact of this issuance on the structure of senior management personnel

This issuance will not have a significant impact on the senior management structure. After the issuance is completed, if the company plans to adjust its senior management personnel, it will strictly fulfill the necessary legal procedures and information disclosure obligations.

(5) The impact of this issuance on business structure

The investment project with raised funds this time is carried out around the company's main business, which is the company's further strengthening of the main business and an important measure for the company to improve its industrial layout. After the implementation of the project, the revenue scale and profitability of the company's main business will be enhanced, but the business revenue structure will not undergo major changes.

Changes in the company’s financial status, profitability and cash flow after this issuance

(1) The impact of this issuance on the company’s financial status

After the completion of this issuance, the company's total assets and net assets will increase accordingly, and its financial strength will be further enhanced. At the same time, the company's asset-liability ratio will decrease accordingly, and the company's asset structure will be further optimized. This issuance will help optimize the company's capital structure, enhance its solvency, reduce financial risks, and lay a solid foundation for the company to maintain long-term and stable development.

(2) The impact of this issuance on the company’s profitability

After the completion of this issuance of shares to specific targets, since it takes a certain amount of time for the investment project with raised funds to be invested in construction and generate economic benefits, it will be difficult for net profit to keep pace with net assets in the short term. Therefore, the company's earnings per share and return on net assets may be diluted to a certain extent in the short term. But in the long run, as the investment projects raised with funds are put into production and benefits are realized, the company's profitability and market competitiveness will continue to increase, and this issuance will have a positive impact on the company's future financial indicators.

(3) The impact of this issuance on the company’s cash flow

After the issuance of shares to specific targets is completed, the receipt of raised funds will significantly increase the amount of cash inflows generated by the company's financing activities; after the raised funds are invested in specific projects, the amount of cash outflows generated by investment activities will also increase significantly; as the investment projects with raised funds are implemented and benefits are generated, the company's profitability continues to increase, and the amount of cash inflows generated by operating activities will gradually increase.

5. Conclusion

To sum up, the company's investment in the funds raised by issuing stocks to specific targets is in line with national industrial policies and industry development trends, in compliance with the requirements of relevant laws and regulations, is closely related to the company's current main business, and is in line with the company's strategic plan for future development. The investment project raised by the issuance of shares to specific targets will help the company further expand its business scale, promote its development strategy, improve its core competitiveness, consolidate its market position, and is in the interests of the company and all shareholders. Therefore, it is necessary and feasible to raise funds from the issuance of stocks to specific targets. (This page has no text, but is the signature page of the "Feasibility Analysis Report on the Use of Funds Raised by Chongqing International Composite Materials Co., Ltd.'s Issuance of A Shares to Specific Targets in 2026")

Board of Directors of Chongqing International Composite Materials Co., Ltd.

August 31, 2026