Baotou Tianhe Magnetic Materials Technology Co., Ltd. Announcement of Progress on Using Idle Own Funds for Cash Management

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Stock Code: 603072 Stock Abbreviation: Tianhe Magnetic Materials Announcement No.: 2026-020

Baotou Tianhe Magnetic Materials Technology Co., Ltd. Progress Announcement on Using Idle Funds for Cash Management

The company’s board of directors and all directors guarantee that this announcement contains no false records, misleading statements, or major omissions, and bear legal responsibility for its truthfulness, accuracy, and completeness.

Important Content Highlights:

● Investment Product: Bank wealth management products.

● Investment Amount: 50 million RMB.

● Review Procedures Completed: The company held the 8th meeting of the third session of the Board’s Audit Committee, the special meeting of independent directors of the third session of the Board, and the 9th meeting of the third session of the Board on December 29, 2025, which separately reviewed and approved the “Proposal on Using Idle Funds for Cash Management.” This matter does not require submission to the shareholders’ meeting. Sponsor Shen Gang Securities Co., Ltd. issued an unopposed verification opinion on this matter. For details, please refer to the company’s announcement “On Using Idle Funds for Cash Management” (Announcement No. 2025-112) on the Shanghai Stock Exchange website (www.sse.com.cn) and designated disclosure media.

● Special Risk Reminder: The company plans to select safe, liquid, and low-risk financial products for cash management using idle funds. However, the financial market is greatly affected by macroeconomic factors, and investment returns may still be influenced by market fluctuations. The company will intervene appropriately based on economic conditions and changes in the financial market. Investors are advised to be aware of investment risks.

1. Investment Overview

(1) Purpose of Investment

To further improve the efficiency of using its own funds, without affecting daily operating funds and ensuring safety, the company will reasonably utilize part of its idle funds for cash management to increase returns and generate more investment income for the company and shareholders.

(2) Investment Amount

The company intends to use up to 300 million RMB of idle funds for cash management. Within this limit and timeframe, the funds can be used cyclically.

(3) Source of Funds

The funds for this cash management come from the company’s idle own funds.

(4) Investment Method

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(5) Investment Duration

The duration of the above investment amount shall not exceed 12 months from the date of board approval.

2. Review Procedures Completed

On December 29, 2025, the company held the 8th meeting of the third session of the Board’s Audit Committee, the special meeting of independent directors of the third session, and the 9th meeting of the third session of the Board, which reviewed and approved the “Proposal on Using Idle Funds for Cash Management.” The company agreed to use up to 300 million RMB of idle funds for cash management, within the specified limit and duration, to purchase high-security, highly liquid, low-risk financial products. The funds can be used cyclically within the approved period. This matter does not require approval from the shareholders’ meeting. Sponsor Shen Gang Securities Co., Ltd. issued an unopposed verification opinion. For details, see the company’s announcement “On Using Idle Funds for Cash Management” (Announcement No. 2025-112) on the Shanghai Stock Exchange website (www.sse.com.cn) and designated disclosure media.

3. Investment Risk Analysis and Risk Control Measures

(1) Investment Risks

The company plans to select high-security, highly liquid, low-risk financial products for cash management using idle funds. However, the financial market is heavily influenced by macroeconomic factors, and investment returns may fluctuate with market conditions. The company will intervene appropriately based on economic and market changes. Investors should be aware of investment risks.

(2) Risk Control Measures

1. The company will strictly adhere to prudent investment principles, choosing products with high safety, liquidity, and low risk.

2. The finance department will analyze and monitor the investment progress of cash management products in a timely manner. If any risk factors that could affect the company’s funds are identified, appropriate measures will be taken promptly to control risks.

3. Independent directors and the company’s Audit Committee have the authority to supervise and inspect the use of funds, and may hire professional agencies for audits if necessary.

4. The company will fulfill information disclosure obligations in accordance with relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange.

5. Impact of Investment on the Company

Under the premise of not affecting daily operational funds and ensuring safety, the company’s use of idle funds for cash management to purchase high-security, liquid, low-risk financial products will not impact its main business development. It will help improve fund utilization efficiency and cash asset returns, further increasing overall company earnings. This aligns with the interests of all shareholders and will not have a significant impact on the company’s future main business, financial condition, operating results, or cash flow.

This announcement is hereby made.

Board of Directors of Baotou Tianhe Magnetic Materials Co., Ltd.

March 19, 2026