Shenzhen Woer Heat-shrinkable Material (09981) subsidiary Shanghai Electronics plans to invest in and build a production base in the Zhejiang Dushangang Economic Development Zone.

Shenzhen Woer Heat-shrinkable Material (09981) announced that on September 17, 2026, Shanghai Electronics (an indirect wholly-owned subsidiary of the Company) entered into an investment agreement with the Committee. Shanghai Electronics has conditionally agreed to invest in the project, and the Committee has conditionally agreed to assist Shanghai Electronics in implementing the project after Shanghai Electronics acquires the land use rights involved in the project through the tender, auction, and listing procedures. The project is subject to Shanghai Electronics successfully acquiring the land use rights of the land through the tender, auction, and listing procedures. The project involves the construction of a new production base on the land, with plans to engage in the research and development, production, and sales of electronic material products such as heat-shrinkable materials for automotive wiring harness and pipeline protection and insulating sleeves. The total investment amount of the project is not more than RMB 800 million, of which fixed asset investment is approximately RMB 600 million, and includes relevant expenses such as the acquisition of land use rights through the tender, auction, and listing procedures, the construction of plants and supporting facilities, and investment in production equipment. The investment amount is estimated and determined based on the scale of the project and the expected construction needs, and will be funded by Shanghai Electronics' internal resources and the proceeds from the Company's global offering. Shanghai Electronics intends to invest in and build a production base in the Zhejiang Dushangang Economic Development Zone, aiming to achieve complementary advantages and resource sharing between the two cooperating parties, and to carry out close cooperation on the construction of a production base for electronic material products by fully leveraging their respective resources and advantages, and to collaboratively advance industrial development planning. This investment and construction project is conducive to the Company's advance capacity planning and coordination, optimizing the production capacity and production resource allocation of electronic material products, further enhancing production capacity and delivery efficiency, reducing the operational risks brought to the subsidiary Shanghai Electronics by insufficient production capacity, and facilitating the reasonable layout of the Company's overall production bases. In addition, this investment and construction project by Shanghai Electronics is conducive to enhancing its production capacity scale, improving the Company's overall profitability and market competitiveness, laying a solid foundation for the Company's future sustainable and stable development, and is in line with the Company's long-term development strategy.