Recently, Shenma Co., Ltd. approved the 2026 special‑fund utilization plan. All units are required to strictly comply with the Group’s and the company’s special‑fund management measures, and, in accordance with the principles of “dedicated use of funds, expenditure aligned with revenue, overall quantity control, coordinated planning, tiered management, prioritization of core business, and assurance of key areas,” vigorously advance efforts to extend and strengthen the industrial chain, optimize and upgrade production equipment, and promote green, low‑carbon production processes, thereby helping enterprises enhance quality and efficiency.

At present, the nylon chemical industry is grappling with rapidly expanding production capacity, sluggish growth in downstream demand, and increasingly acute structural imbalances. Scientifically managing special-purpose funds represents a pragmatic step by Shenma Shares to comply with regulatory requirements and safeguard the legitimate rights and interests of its shareholders; it also reflects an intrinsic need to focus on its core business and proactively pursue industrial transformation and upgrading.

To ensure the prudent and efficient use of special funds, Shenma Co., Ltd. formulated the “Administrative Measures for Special Funds” in December 2025. The measures cover the management responsibilities of relevant departments, the sources and designated uses of special funds, the permissible scale of such funds, the procedures for submitting funding utilization plans, technical reviews of project construction, integrated safety‑technical‑economic feasibility assessments, investment management, year‑end final accounting, and accountability mechanisms—thereby establishing a comprehensive management framework that follows the “project initiation–implementation–supervision–evaluation” cycle, ensuring that these funds are allocated to their most critical priorities.

In 2026, Shenma Co., Ltd. further refined its standards for managing special-purpose funds, requiring all units to strictly adhere to the Group’s Regulations on Fixed Asset Investment Management, rigorously control investment costs, and ensure that project budgets do not exceed the average investment intensity of the same industry, period, and region. The company is committed to mitigating investment risks and enhancing the return on investment. To ensure the transparent and compliant use of higher‑level grant funds, the company mandates that all units strictly follow applicable regulations, properly manage and utilize such funds, and voluntarily submit to oversight and audits by financial, auditing, and other relevant authorities.

Going forward, Shenma Shares will continue to refine its capital management framework, strengthen cost control and performance‑driven decision‑making, and leverage standardized governance to drive industrial transformation and upgrading. By ensuring that every dedicated fund is put to effective use, the company will translate these investments into tangible results, striving to write a new chapter of high‑quality development through concrete achievements and measurable outcomes.