Shida Shenghua to Invest RMB 2.8 Billion in Three Lithium Battery Material Projects in Dongying

According to an announcement by Shida Shenghua (603026.SH) on the evening of August 3, the company's 32nd meeting of the 8th Board of Directors approved three major investment plans, to be implemented by its three wholly-owned subsidiaries. All projects are located within the same factory area at No. 198 Tongxing Road, Kenli District, Dongying City, Shandong Province. The total investment for the three projects is approximately RMB 2.805 billion, all funded by the company's own funds

Notes:

• All projects are located in the same plant area at No. 198 Tongxing Road, Kenli District, Dongying, Shandong, China.

• The additive project specifically builds a 12,000 t/year lithium fluoride (LiF) production unit.

• All investments are self‑raised funds by the company.

Core Construction Contents of Each Project:

Liquid Lithium Salt Project: Construction investment of RMB 1.774 billion (engineering costs of RMB 1.452 billion), construction of a 230,000-ton/year liquid lithium salt production unit and supporting storage and auxiliary facilities.

Electrolyte Project: Construction investment of RMB 533 million (engineering costs of RMB 459 million), construction of a 200,000-ton/year electrolyte production unit.

Additives Project: Construction investment of RMB 282 million (engineering costs of RMB 264 million), construction of a new 12,000-ton/year lithium fluoride unit and supporting on-site cabinet rooms, automated finished product warehouses, etc.

Funding Sources and Financial Considerations

It is worth noting that this RMB 2.8 billion investment is entirely self-raised. The company's net profit attributable to the parent company in 2025 was only RMB 15.8985 million, and its net cash flow from operating activities was -RMB 1.29 billion.

However, the company's performance improved significantly in the first half of 2026, with expected net profit attributable to the parent company of RMB 410 million to RMB 470 million, turning a profit from a loss of RMB 56.3378 million in the same period last year.

The above proposal has been approved by the board of directors (9 votes in favor, 0 votes against, and 0 abstentions), and still needs to be submitted to the sixth extraordinary general meeting of shareholders in 2026 to be held on August 19 for review.