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/*ST Sansheng: Announcement on the cancellation of delisting risk warnings and other risk warnings for company stock transactions and the suspension and resumption of stock trading
NEWS

*ST Sansheng: Announcement on the cancellation of delisting risk warnings and other risk warnings for company stock transactions and the suspension and resumption of stock trading

Shenzhen Stock Exchange
2026/04/30

Securities code: 002742 Securities abbreviation: *ST Sansheng Announcement number: 2026-43

Chongqing Sansheng Industrial Co., Ltd.

Regarding cancellation of delisting risk warning and other risk warnings for company stock trading

Indication and announcement of stock trading suspension and resumption

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.

Special tips:

  1. Chongqing Sansheng Industrial Co., Ltd. (hereinafter referred to as the "Company") stocks will be suspended for one day on April 30, 2026 (Thursday), and will resume trading on May 6, 2026 (Wednesday).

  2. The company's stock trading will cancel the delisting risk warning and other risk warnings from the opening of the market on May 6, 2026 (Wednesday). The stock abbreviation will be changed from "*ST Sansheng" to "Sansheng Shares", and the stock code will still be "002742".

  3. After the delisting risk warning and other risk warnings are cancelled, the daily increase or decrease limit for the company's stock trading price will be changed to 10%.

  4. Stock type, abbreviation, stock code, price increase or decrease, starting date for canceling delisting risk warning and other risk warnings, and stock trading suspension and resumption arrangements

  5. Stock type: RMB ordinary shares A shares

  6. Stock abbreviation: changed from "*ST Sansheng" to "Sansheng Shares"

  7. Stock code: 002742

  8. The starting date for canceling the delisting risk warning and other risk warnings: It will be canceled from the market opening on May 6, 2026 (Wednesday).

  9. Trading suspension and resumption arrangements: The company's shares will be suspended for one day from the market opening on April 30, 2026 (Thursday), and will resume trading from the market opening on May 6, 2026 (Wednesday).

  10. Daily price limit: After the delisting risk warning and other risk warnings are cancelled, the daily limit on the company's stock trading price will be changed to 10%.

2. The company’s stocks are subject to delisting risk warnings and other risk warnings

(1) The company’s stocks are subject to delisting risk warnings

The company has released its 2024 annual report on the information disclosure media on April 26, 2025. After auditing, the company's net assets at the end of 2024 were negative. According to the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules", the company's stock transactions were subject to a delisting risk warning.

(2) Other risk warnings are implemented on the company’s stocks

  1. On September 24, 2022, the company disclosed the "Announcement on the Implementation of Other Risk Warnings on the Company's Stocks" (Announcement Number: 2022-67 No.), the company and Chongqing Peisheng Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Beisheng Pharmaceutical") controlled by the former controlling shareholder jointly borrowed money from Chongqing Wansheng District Henghui Small Loan Co., Ltd. and provided the borrowed money to Peisheng Pharmaceutical for use. This matter has not been reviewed by the company's board of directors, board of supervisors and shareholders' meeting, and constitutes the occupation of related party funds.

According to other risk warning situations related to "the existence of capital occupation and serious situation" stipulated in Article 9.8.1 (1) of the "Shenzhen Stock Exchange Stock Listing Rules", the company's stock trading has been subject to other risk warnings since September 27, 2022.

The above-mentioned capital occupation by related parties has been paid off in November 2024. For details, please refer to the "Announcement on the Completion of Fund Occupation Rectification" disclosed by the company on November 8, 2024 (Announcement No. 2024-81).

  1. On September 24, 2022, the company disclosed the "Announcement on the Implementation of Other Risk Warnings on the Company's Stocks" (Announcement No.: 2022-67). The company's overseas subsidiary Sansheng Pharmaceutical Co., Ltd. (hereinafter referred to as "Sansheng Pharmaceutical") signed a mortgage guarantee contract with Ethiopian NIB International Bank (hereinafter referred to as "NIB Bank") on June 26, 2019, using its factory buildings and machinery and equipment as collateral for SSC Construction P.L.C (hereinafter referred to as "SSC") provided guarantee for a loan of 400 million birr (equivalent to approximately RMB 51.83 million) from Ethiopian NIB International Bank. This matter was not reviewed by the company's board of directors, supervisory board and shareholders' meeting, which constituted the company's illegal provision of external guarantees. After the company's board of directors discovered the above-mentioned illegal guarantee matters, it immediately launched a self-examination and communicated with the controlling shareholder and its related parties in a timely manner to formulate a solution. However, it was unable to solve the problem within the prescribed time limit.

According to other risk warning situations related to "providing external guarantees in violation of prescribed procedures and the circumstances are serious" stipulated in Article 9.8.1 (2) of the "Shenzhen Stock Exchange Stock Listing Rules", the company's stock trading has been subject to other risk warnings since September 27, 2022.

In June 2024, SSC has settled the loan ahead of schedule, and NIB Bank has released its mortgage on the plant, machinery and equipment of Sansheng Pharmaceutical. According to the legal opinion issued by a local lawyer in Ethiopia, SSC has repaid all relevant bank loan principals, interests and liquidated damages to NIB. According to local Ethiopian laws, all guarantee obligations of Sansheng Pharmaceutical to NIB have been fulfilled, and Sansheng Pharmaceutical’s guarantee responsibilities have also been completely released; the mortgage registration of the properties (houses, machinery and equipment) used by Sansheng Pharmaceutical to provide guarantee has been fully released; Sansheng Pharmaceutical has no other legal risks in this guarantee contract. The domestic law firms and audit institutions hired by the company have improved verification procedures. For details, please refer to the "Announcement on the Completion of Rectification of Illegal Guarantees" disclosed by the company on December 10, 2024 (Announcement No.: 2024-89).

  1. On April 29, 2023, Tianjian Accounting Firm (Special General Partnership) issued an "Internal Control Audit Report" with a negative opinion (Tianjian Shen [2023] No. 8-321). On the same day, the company disclosed the "Announcement on the Superimposition of Other Risk Warnings on the Company's Stocks" (Announcement No. 2023-51).

According to the provisions of Article 9.8.1 (4) of the Shenzhen Stock Exchange Stock Listing Rules, the company has an internal control audit report that has been issued with a negative opinion in the past year, and other risk warnings have been superimposed on the company's stock trading since May 4, 2023.

  1. On June 8, 2023, the company disclosed the "Announcement on the Implementation of Other Risk Warnings on the Company's Stocks" (Announcement No. 2023-57). As of May 31, 2023, the company's bank account had been frozen for a total of 22,090,597.57 yuan, accounting for the company's (March 31, 2023) The proportion of net assets attributable to shareholders of listed companies is 2.8861%, accounting for 26.88% of the company's total monetary funds, and 75.14% of the company's total monetary funds (excluding overseas); the company has a total of 151 bank accounts opened (excluding margin accounts), and a total of 51 frozen bank accounts. The number of frozen bank accounts accounts for 33.77% of the total number of bank accounts.

According to other risk warning situations related to "the company's main bank account is frozen" stipulated in Article 9.8.1 (6) of the "Shenzhen Stock Exchange Stock Listing Rules", the company's stock trading has been superimposed on other risk warnings since June 8, 2023.

  1. On April 30, 2024, the company disclosed the "Announcement on the Implementation of Other Risk Warnings on the Company's Stocks" (Announcement No.: 2024-23). According to the company's April 29, 2024 In the "2023 Annual Report" disclosed on the same day, the company's net profit before and after deducting non-recurring gains and losses in the last three fiscal years, whichever is lower, was negative, and the audit report for the most recent year showed that the company's ability to continue operating was uncertain. Tianjian Accounting Firm (Special General Partnership) issued a reserved opinion on the company's 2023 "Audit Report", believing that the company's ability to continue operating was uncertain.

According to the provisions of Article 9.8.1 (7) of the Shenzhen Stock Exchange's "Stock Listing Rules (2023 Revision)", the company's stock transactions will be superimposed on other risk warnings from April 30, 2024.

3. Application for cancellation of delisting risk warning and other risk warnings

(1) Application for cancellation of delisting risk warning

On March 30, 2026, Tianjian Accounting Firm (Special General Partnership) issued a standard unqualified Audit Report (Tianjian [2026] No. 8-147). After auditing, as of December 31, 2025, the company achieved operating income of 899,848,459.70 yuan in 2025, the net profit attributable to shareholders of the listed company was -419,682,691.50 yuan, and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -509,593,070.69 Yuan, and the net assets attributable to shareholders of the listed company are 168,380,544.21 Yuan. According to Article 9.3.8 of the Stock Listing Rules of the Shenzhen Stock Exchange, “After a listed company’s stock transactions are subject to a delisting risk warning due to the circumstances specified in paragraph 1 of Article 9.3.1 of these Rules, if the annual report of the year immediately following the year in which the delisting risk warning is actually triggered indicates that the company does not have any of the circumstances specified in paragraphs 1 to 7 of Article 9.3.12 of these Rules, the company may apply to the Exchange to cancel the delisting risk warning for its stock transactions.” In summary, the company's audited net profit in 2025 is negative, but the operating income is not less than 300 million yuan, the audited net assets at the end of the period are positive, and Tianjian Accounting Firm (Special General Partnership) issued a standard unqualified "Audit Report" for the company in 2025. According to the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules (2026 Revision)", the company has applied to the Shenzhen Stock Exchange to cancel the delisting risk warning imposed on the company's stock trading.

(2) Application for cancellation of other risk warnings

  1. The situation where other risk warnings were issued due to the occupation of funds by related parties has been eliminated in November 2024.

  2. The situation where other risk warnings were imposed due to the company's illegal external guarantee matters has been eliminated in December 2024.

  3. According to the "Audit Report" issued by Tianjian Accounting Firm (Special General Partnership) on the company's 2025 standard unqualified opinion, the company has suffered losses for the past three consecutive years as of the end of 2024 and other risk warning situations that were triggered by Tianjian Accounting Firm's audit opinion on "significant uncertainties related to continuing operations" on the company's 2024 financial report have been eliminated.

  4. According to the "Internal Control Audit Report" (Tianjian Shen [2026] No. 8-148) issued by Tianjian Certified Public Accountants (Special General Partnership) with a standard unqualified opinion on the company for 2025, the company's other risk warning situations that were touched by the internal control audit report with negative opinions in the recent year have been eliminated.

  5. According to the inquiry results, the company's frozen main bank account has been unfrozen and will not affect the company's normal operations. Other risk warning situations that have been affected by the company's main bank account being frozen have been eliminated.

The company conducted a self-examination on an item-by-item basis against the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules (Revised in 2026)" and found that the company did not have any of the circumstances from item 1 to item 7 of Article 9.3.12 of the "Shenzhen Stock Exchange Stock Listing Rules", nor did there exist other situations stipulated in the rules that required the implementation of delisting risk warnings or other risk warnings. According to the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules (2026 Revision)", the company has applied to the Shenzhen Stock Exchange to cancel other risk warnings imposed on the company's stock transactions.

On April 2, 2026, the company received the "Inquiry Letter on ST*Sansheng's 2025 Annual Report" issued by the Shenzhen Stock Exchange (Company Department Annual Report Inquiry Letter [2026] No. 11), requiring the company to verify and explain relevant issues. After careful verification and analysis by the company and relevant intermediaries, the company disclosed a reply announcement to the inquiry letter on the same day as this announcement. For details, please refer to the "Announcement on Reply to the Inquiry Letter for the Shenzhen Stock Exchange's 2025 Annual Report" disclosed by the company on the cninfo.com (www.cninfo.com.cn) (announcement number: 2026-42).

4. Review status of the company’s application for cancellation of delisting risk warning

The company's application to cancel the delisting risk warning and other risk warnings has been reviewed and approved by the Shenzhen Stock Exchange. According to the provisions of the "Shenzhen Stock Exchange Stock Listing Rules (Revised in 2026)", the company's shares will be suspended for one day from the opening of the market on April 30, 2026 (Thursday), and will resume trading from the opening of the market on May 6, 2026 (Wednesday). The stock abbreviation will be changed from "*ST Sansheng" to "Sansheng Shares", the stock code will still be "002742", and the daily increase and decrease limit of the stock trading price will be changed to 10%.

The company's designated information disclosure media are "Shanghai Securities News", "Securities Times" and cninfo.com (www.cninfo.com.cn). Information about the company is subject to the information disclosed by the above designated media. Investors are kindly requested to invest rationally and pay attention to investment risks.

Announcement hereby

Board of Directors of Chongqing Sansheng Industrial Co., Ltd.

April 29, 2026