Jiangsu Sanfangxiang Jucai Co., Ltd. Stock Trading Risk Warning Announcement

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Stock Code: 600370 Stock Abbreviation: Sanfangxiang Announcement No.: 2026-016

Convertible Bond Code: 110092 Convertible Bond Abbreviation: Sanfang Convertible Bond

Jiangsu Sanfangxiang Material Co., Ltd.

Stock Trading Risk Warning Announcement

The board of directors and all directors of the company guarantee that the content of this announcement does not contain any false records, misleading statements, or major omissions, and bear legal responsibility for the authenticity, accuracy, and completeness of its content.

Important Risk Warning:

● Secondary Market Trading Risk: Jiangsu Sanfangxiang Material Co., Ltd. (hereinafter referred to as the “Company”) experienced two instances of abnormal stock trading fluctuations from March 11 to March 17, 2026. For details, please refer to the “Announcement on Abnormal Stock Trading Fluctuations of Jiangsu Sanfangxiang Material Co., Ltd.” disclosed by the company on March 14 and March 18, 2026 (Announcement No.: 2026-013, 2026-015). From March 12 to March 18, 2026, the company’s stock closed at the daily limit price for five consecutive trading days, and from March 11 to March 18, the cumulative increase in the company’s stock price reached 61.33%. On March 18, the turnover rate of the company’s stock was 10.65%, further expanding the turnover rate.

● Risk of Weakened Customer Procurement Willingness: The company’s main business, profitability, and product gross margin have not changed significantly. Affected by geopolitical situations and international energy prices, the prices of major chemical products have fluctuated greatly recently. The company’s existing orders have seen a decrease in downstream customer procurement willingness due to increased costs from rising raw material prices and rapid price increases of products.

● Operational Performance Loss Risk: The company expects to achieve a net profit attributable to the parent company’s owners of -76,000.00 million to -84,000.00 million for the year 2025, which represents an increase in losses of 55.91% to 72.32% compared to the same period last year (statutory disclosure data).

● Risk of Share Freeze of Major Shareholder: The shares held by the company’s major shareholder, Sanfangxiang Group Co., Ltd., and its concerted action party, Jiangsu Sanfangxiang International Trade Co., Ltd., have all been pledged and judicially frozen. In the future, if the shares held by Sanfangxiang Group and Sanfang International Trade are judicially disposed of, it may lead to a change in the actual control of the company.

● Investors are urged to pay attention to investment risks, make rational decisions, and invest prudently.

The company’s stock experienced two instances of abnormal trading fluctuations from March 11 to March 17, 2026. From March 12 to March 18, the company’s stock closed at the daily limit price for five consecutive trading days, and the turnover rate further expanded. Given the substantial short-term increase in the company’s stock price, investors are urged to pay attention to investment risks and make rational decisions. The stock trading risk warning is as follows:

1. Secondary Market Trading Risk

The company’s stock hit abnormal fluctuations on March 13 and March 17, and again reached the daily limit on March 18, 2026. The cumulative increase from March 11 to March 18, 2026, reached 61.33%, with significant short-term increases in stock price. The turnover rates for the last five trading days were 2.68%, 7.02%, 4.29%, 6.52%, and 10.65%, further expanding the turnover rate. Investors are urged to be aware of secondary market trading risks, make rational decisions, and invest prudently.

2. Risk of Weakened Customer Procurement Willingness

The company’s main business, profitability, and product gross margin have not changed significantly. Affected by geopolitical situations and international energy prices, the prices of major chemical products have fluctuated greatly recently. The existing orders of the company have seen a decrease in downstream customer procurement willingness due to increased costs from rising raw material prices and rapid price increases of products.

3. Operational Performance Loss Risk

According to preliminary calculations by the finance department, it is expected that the net profit attributable to the parent company’s owners for the year 2025 will be -76,000.00 million to -84,000.00 million, which represents an increase in losses of 55.91% to 72.32% compared to the same period last year (statutory disclosure data). The financial data of this performance forecast has not been audited by an auditing agency. For details, please refer to the “2025 Annual Performance Forecast of Jiangsu Sanfangxiang Material Co., Ltd.” disclosed on January 20, 2026, on the Shanghai Stock Exchange website (Announcement No.: 2026-005). Investors are reminded to pay attention to investment risks.

4. Risk of Share Freeze of Major Shareholder

The shares held by the company’s major shareholder, Sanfangxiang Group Co., Ltd., and its concerted action party, Jiangsu Sanfangxiang International Trade Co., Ltd., have all been pledged and judicially frozen. In the future, if the shares held by Sanfangxiang Group and Sanfang International Trade are judicially disposed of, it may lead to a change in the actual control of the company. For details, please refer to the “Announcement on the Freezing of Shares of Major Shareholders and Concerted Action Parties” disclosed on February 26, 2026, on the Shanghai Stock Exchange website (Announcement No.: 2026-008). Investors are reminded to pay attention to investment risks.

Aside from matters disclosed in accordance with regulations, the company has no undisclosed matters that should have been disclosed in accordance with the “Shanghai Stock Exchange Stock Listing Rules” and other relevant regulations. The company solemnly reminds all investors that relevant company information is based on the announcements published by the company on the Shanghai Stock Exchange website (www.sse.com.cn) and in the designated information disclosure media “Shanghai Securities Journal.” Investors are urged to invest rationally and pay attention to investment risks.

This announcement is hereby made.

Jiangsu Sanfangxiang Material Co., Ltd.

Board of Directors

March 19, 2026

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