Ningbo Huaxiang Electronics Co., Ltd. Share Repurchase Report

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Stock Code: 002048 Stock Abbreviation: Ningbo Huaxiang Announcement No.: 2026-016

All directors and senior management of the company guarantee that the content of this announcement is true, accurate, and complete, and bear responsibility for any false records, misleading statements, or major omissions.

Important Content Highlights:

1. Ningbo Huaxiang Electronics Co., Ltd. (hereinafter referred to as “the Company”) plans to use its own funds to repurchase shares through centralized bidding, for employee stock ownership plans or equity incentives. Considering the company’s financial status, operational conditions, and future profitability, the total repurchase amount is set to no less than RMB 200 million (inclusive) and no more than RMB 210 million (inclusive); the purchase price will not exceed RMB 48.88 per share (inclusive), which is no more than 150% of the average trading price of the company’s stock in the 30 trading days prior to the board resolution approving the repurchase. The specific number of shares repurchased will be based on the actual repurchase upon completion or expiration. The repurchase period is within 12 months from the date the board approves the plan.

2. The matters related to this share repurchase have been approved at the 29th meeting of the 8th Board of Directors held on March 3, 2026.

3. The company will use the share repurchase special securities account already opened at China Securities Depository and Clearing Corporation Limited Shenzhen Branch.

4. As of the date of this announcement, the company’s directors, senior management, controlling shareholders, actual controllers, shareholders holding more than 5%, and their concerted parties have no plans to increase or decrease holdings during the repurchase period. If future plans for share increase or decrease are made, the company will disclose information in a timely manner according to relevant regulations.

5. Risk Reminder: If the company’s stock price remains above the upper limit of the repurchase price during the repurchase period, or if the required funds cannot be raised, this plan may not be implemented. There is also a risk that the repurchased shares cannot be fully allocated due to the employee stock ownership plan or equity incentive not being approved by the company’s decision-making bodies or shareholders’ meetings, or if the recipients waive their subscription. Additionally, changes in the company’s operations, financial status, or external conditions may lead to modifications or termination of the plan according to regulations.

Based on relevant laws, regulations, and normative documents, the company has prepared the “Repurchase Report,” the specific content of which is now announced as follows:

I. Main Content of the Repurchase Plan

(1) Purpose of the Share Repurchase

Based on recognition of the company’s value and confidence in future development prospects, and to further improve the long-term incentive mechanism and motivate core employees, the company plans to use its own funds to repurchase shares via centralized bidding for implementing employee stock ownership plans or equity incentives, considering business prospects, operational conditions, financial status, and future profitability.

(2) Conditions for the Share Repurchase

The company’s share repurchase complies with the conditions stipulated in Article 10 of the “Guidelines for Self-Regulation of Listed Companies No. 9—Share Repurchase” issued by the Shenzhen Stock Exchange:

1. The company’s stock has been listed for more than six months;

2. The company has no major illegal activities in the past year;

3. After the repurchase, the company has the ability to fulfill its debts and sustain operations;

4. After the repurchase, the company’s shareholding structure meets listing requirements;

5. Other conditions stipulated by the China Securities Regulatory Commission and Shenzhen Stock Exchange.

(3) Methods and Price Range for the Share Repurchase

The repurchase will be conducted through the Shenzhen Stock Exchange trading system via centralized bidding.

The maximum price for the repurchase will not exceed RMB 48.88 per share (inclusive), which is no more than 150% of the average stock price in the 30 trading days prior to the board resolution. The specific price will be determined based on the company’s secondary market stock price, financial condition, and operational status.

If the company distributes dividends, issues bonus shares, or increases capital reserves during the repurchase period, adjustments will be made according to relevant regulations by the China Securities Regulatory Commission and Shenzhen Stock Exchange, and information disclosure will be performed accordingly.

(4) Types, Uses, Quantity, Proportion of Total Share Capital, and Total Funds for the Repurchase

1. Types of shares to be repurchased

The company’s issued ordinary RMB shares (A-shares).

2. Uses of the repurchased shares

The shares will be used for employee stock ownership plans or equity incentives. If the company fails to implement the intended use within 36 months after the completion of the repurchase, the unused shares will be canceled following relevant procedures.

3. Quantity, proportion of total share capital, and total funds

The company plans to use RMB 200 million to RMB 210 million of its own funds to repurchase shares. Under the condition that the price does not exceed RMB 48.88 per share, the estimated number of shares to be repurchased is approximately 4.0917 million (about 0.50% of current total shares) at the upper limit, and approximately 4.2962 million (about 0.53%) at the lower limit. The actual amount, number of shares, and proportion will be based on the completion of the repurchase or the expiration of the period.

(5) Source of Funds for the Repurchase

The funds will come from the company’s own capital.

(6) Implementation Period

The repurchase will be carried out within 12 months from the date the board approves the plan. The period may be shortened if:

• The repurchase amount reaches the upper limit before the deadline;

• The board decides to terminate the plan early;

• The repurchase amount reaches the lower limit, and management decides to end the plan.

If the company’s stock is suspended for more than ten trading days due to major events, the period may be extended but not beyond the maximum duration allowed by regulations.

The company shall not repurchase shares during:

• The period from the occurrence of major events that could significantly impact the stock price until they are legally disclosed;

• Other circumstances stipulated by the China Securities Regulatory Commission and Shenzhen Stock Exchange.

(7) Expected Changes in Share Capital Structure After Repurchase

• If the upper limit of RMB 21 million is used and the price does not exceed RMB 48.88 per share, approximately 4.2962 million shares will be repurchased. If all are used for employee stock plans or incentives and are locked, the company’s shareholding structure will change accordingly.

• If the lower limit of RMB 20 million is used, approximately 4.0917 million shares will be repurchased, with similar structural effects.

Note: The actual number of shares repurchased will depend on the final completion.

(8) Management’s Analysis of the Impact of the Repurchase on Operations, Profitability, Financials, R&D, Debt Fulfillment, Future Development, and Listing Status, and the Commitment that the Repurchase Will Not Harm the Company’s Debt Service or Continuing Operations

As of September 30, 2025, the company’s unaudited consolidated financial data shows total assets of RMB 26,075,069,700 and net assets attributable to shareholders of RMB 11,245,198,300. The upper limit of the repurchase funds (RMB 210 million) accounts for approximately 0.81% of total assets and 1.87% of net assets.

The planned repurchase amount (RMB 20-21 million) will not significantly impact the company’s operations, finances, or future development. After completion, the company’s control will remain unchanged, its listing status will not be affected, and its shareholding structure will remain compliant with listing requirements.

All directors promise to act honestly, diligently, and in good faith, safeguarding the company’s interests and shareholders’ rights, and confirm that the repurchase will not impair the company’s debt repayment ability or ongoing operations.

(9) Shareholders, Directors, Senior Management, Controlling Shareholders, and Actual Controllers’ Trading Activities in the Six Months Prior to the Board Resolution, and Any Insider Trading or Market Manipulation, as well as Future Plans for Share Increase or Decrease within Three and Six Months

• The company has self-checked and confirms that no insider trading or market manipulation occurred within six months prior to the board resolution.

• As of this announcement, there are no plans for increase or decrease in holdings during the repurchase period, nor have any such plans been received. Future plans will be disclosed timely according to regulations.

(10) Arrangements for Cancellation or Transfer of Shares After Repurchase and Measures to Protect Creditors’ Interests

Repurchased shares will be used for employee stock plans or incentives. If not used within the legal period, they will be canceled. If the company is dissolved, procedures will be followed to protect creditors’ rights and interests, including timely disclosure.

(11) Specific Authorization for the Share Repurchase

The board authorizes the chairman to handle all matters related to the repurchase, including but not limited to:

• Establishing the special securities account;

• Deciding on the timing, price, and quantity of repurchases within the period;

• Adjusting the plan as required by regulations;

• Handling approvals, signing, execution, modification, and related documents;

• Amending the Articles of Incorporation and other relevant registration procedures;

• Handling other necessary matters.

This authorization is valid from the date of approval by the board until all related matters are completed.

II. Review Procedures and Disclosure of the Repurchase

• The plan was approved at the 29th meeting of the 8th Board on March 3, 2026, and does not require shareholder approval. Details are disclosed in the announcement on March 5, 2026, on CNINFO.

• The company disclosed the top ten shareholders as of March 4, 2026, on March 11, 2026.

III. Other Matters

1. Opening of the special securities account

The company will use the existing account at China Securities Depository and Clearing Corporation Limited Shenzhen Branch, solely for share repurchase.

2. Disclosure during the repurchase period

The company will disclose progress as follows:

• The next trading day after the first repurchase;

• When the proportion of shares repurchased increases by 1%, within three trading days;

• Monthly progress within the first three trading days of each month;

• If the plan is not completed by the deadline, reasons and future arrangements will be announced;

• Upon completion or termination, results will be disclosed within two trading days.

IV. Risk Reminder

• The plan may be affected if stock prices stay above the upper limit or funds cannot be raised;

• The shares may not be allocated if the employee stock plan or incentives are not approved or if recipients waive their rights;

• Changes in the company’s operations or external environment may lead to modifications or termination.

The company will execute the plan based on market conditions and disclose progress timely. Investors are advised to be cautious.

Ningbo Huaxiang Electronics Co., Ltd.

Board of Directors

March 21, 2026