Shenzhen Woer Heat-shrinkable Material (002130.SZ) subsidiary plans to invest no more than 800 million yuan to build a production base project in the Zhejiang Dushangang Economic Development Zone.

Shenzhen Woer Heat-shrinkable Material (002130.SZ) announced that, in order to further improve the company's industrial layout, enhance its manufacturing and R&D capabilities, and better seize market development opportunities, its wholly-owned subsidiary Shanghai Changyuan Electronic Material Co., Ltd. ("Shanghai Electronics") plans to invest no more than 800 million yuan to build a production base project in the Zhejiang Dushangang Economic Development Zone. The source of funds is the subsidiary's self-raised funds and the proceeds from the company's H-share global offering. On the same day, Shanghai Electronics signed an Investment Agreement with the Management Committee of the Zhejiang Dushangang Economic Development Zone. This investment aims to achieve complementary advantages and resource sharing between the two parties, and to carry out close cooperation in building a production base for electronic material products by fully leveraging their respective resources and advantages, so as to jointly advance industrial development planning. This investment and construction project will help the company plan and coordinate production capacity in advance, optimize the production capacity and production resource allocation of electronic material products, further improve production capacity and delivery efficiency, reduce the operational risks faced by its subsidiary Shanghai Electronics due to insufficient production capacity, and facilitate the reasonable layout of the company's overall production bases. In addition, this investment and construction project by Shanghai Electronics will help it expand its production capacity, enhance the company's overall profitability and market competitiveness, lay a solid foundation for the company's future sustainable and stable development, and align with the company's long-term development strategy.