——New Year Keynote by the Chairman of Capchem

Dear Friends ,

As the first light of 2026 dawns upon the earth, we usher in a new beginning for Capchem's 30th anniversary with hearts full of gratitude and anticipation. In 1996, the entrepreneurial seed of Capchem took root and sprouted in a rented apartment in Shajing, Bao'an, Shenzhen. Over three decades of weathering storms and persevering through challenges, we have always resonated with the rhythm of China's electronic information industry. Today, our business spans the globe, and we have grown into an industry leader in electronic chemicals and functional materials, having charted a path of high-quality development by deeply cultivating our core business and steadfastly pursuing long-term goals. This achievement would not have been possible without the care and support of every global partner and friend, and even more so, without the hard work and dedication of all our colleagues who have fought side by side. Here, we extend our sincerest New Year's greetings and deepest gratitude to everyone.

Three Decades of Deep Cultivation: We have anchored ourselves in our core business, built a global industrial layout, and forged a synergistic core structure across our four major business segments. Guided by the business philosophy of "Solid, Thorough, Excellent, Professional (STEP)," we continue to lead in the capacitor chemicals field. Starting from our first barrel of capacitor-grade MEG to completing the final link in the capacitor industry chain with electronic packaging materials, we have solidified our position as an industry benchmark. Relying on our core technological expertise, we entered the battery chemicals field in 2000, expanding from lithium-ion battery electrolytes to core products such as new lithium salts, functional additives, green solvents, and lithium hexafluorophosphate. Pioneering advancements like solid-state electrolytes and sodium-ion battery electrolytes have been successively realized, establishing our integrated industry chain advantage. In 2015, we strategically expanded into the fluorochemicals field, focusing on key sectors like AI, new energy, and biomedicine, and achieving the industrialization of high-end products such as perfluoroisobutyronitrile and fluoroether rubber. With the full arrival of the AI era, breakthroughs in semiconductor chemicals are accelerating, and our comprehensive electronic chemicals industry chain continues to be perfected. As these four businesses develop synergistically, our globalization strides forward with determination. We have established over 20 production bases worldwide, with the foundational structures of our dual overseas bases in Poland and Malaysia in place. Subsidiaries in Japan and South Korea have been set up, and projects in the Middle East and the United States are advancing rapidly. Leveraging global synergy, we connect with industry partners to embark on a new journey of growth together.

Three Decades of Steadfast Endeavor: We have remained committed to innovation, fortifying our technological moat, and driving the company's long-term development through robust research and development. We have always placed R&D and innovation at the strategic core, establishing a complete R&D platform covering "functional material synthesis technology-material purification and refinement technology-microanalysis and testing technology-mechanism research and formulation development-component design and testing." We have formed a comprehensive R&D landscape comprising the "Shenzhen Research Institute, plus the Daya Bay Research Institute and Pilot Base (Huizhou, Guangdong), the Fluorine New Materials Research Center (Sanming, Fujian), and the Hongze Lake Hicomer Laboratory and Incubation/Pilot Platform (Huai'an, Jiangsu)." A professional R&D team of nearly a thousand members concentrates on overcoming challenges, with R&D investment consistently maintained above 5% of annual revenue. We have established over 30 innovation platforms and have cumulatively submitted more than 1,600 patent applications. By deepening industry-university-research collaborative innovation, numerous core achievements have been rapidly industrialized, continuously strengthening our technological barriers. Honors such as the National Enterprise Technology Center, National Intellectual Property Advantage Enterprise, National Excellent Patent Award, and the First Prize for Scientific and Technological Progress from the China Petroleum and Chemical Industry Federation stand as the best testimony to our innovative journey.

Three Decades of Staying True to Our original aspiration: We put people first, practice "Participate, Develop, Undertake, Share" and unite the formidable strength of all our strivers. We firmly believe that human resources are the paramount resource. We adhere to the value distribution concept of "Participate, Develop, Undertake, Share," solidifying the operational foundation formed by the shareholder team, management, and core position teams. We cultivate fertile ground for talent by "retaining people with career opportunities, competitive compensation, and a supportive culture." Through equity incentives and a multi-channel career development system, we enable core contributors to share in the fruits of the company's growth. Guided by our core values of "Innovation for Application,Progress with Integrity," we foster cultural consensus, encouraging every Capchem employee to proceed steadily and sustainably on the right path of technological innovation and value creation. Over the past thirty years, generation after generation of outstanding Capchem individuals have taken root, delved deep, shined in their respective roles, and grown and progressed together with the company.

Three Decades of Adherence: We establish ourselves on integrity, abide by compliant operations, and steadfastly follow the path of green and sustainable development. Our steadily growing financial performance is the best testament to our unwavering adherence to the core principles of "Integrity as the Foundation, Compliant Operations." We are deeply aware that enterprise development must pursue economic benefits while also shouldering social responsibility. We consistently uphold the concept of green development, actively participating in local education, environmental initiatives, and community-building activities. Accolades such as National Green Factory certification, ranking among the Top 20 in Green Governance for listed companies in the Greater Bay Area, achieving the industry's top position in the CSCI ESG rating, and receiving a 'B' rating in the CDP Climate Change assessment bear witness to our firm strides on the path of sustainable development. In the future, we will continue to hold fast to this original mission, achieving synergistic success in economic, social, and environmental benefits.

Standing at Thirty, Embarking on a New Journey; Uniting Hearts and Minds for the Future. The year 2026 marks Capchem's 30h anniversary, the inaugural year of the nation's "15th Five-Year Plan," and the launch year of our company's "Seventh Five-Year" strategy. Facing the tidal waves of global energy transition, the comprehensive onset of the AI era, and industrial upgrading and technological revolution, we anchor ourselves to our new five-year development plan and proceed with determination. In terms of business development, we will transcend industry cycles, regain high-growth momentum, and advance our four core business segments in tandem. In pivotal fields such as AI and new energy, we will empower industry progress with original technologies and core products, solidifying the foundation for our company's performance growth. Regarding international expansion, we will continue to deepen our industrial presence in regions including Europe, North America, Southeast Asia, and the Middle East, using technological innovation as the engine and localized operations as the link to achieve a dual circulation of internal and external markets. In capital operations, we are actively preparing for a listing in Hong Kong. As an international public company, we will continue to innovate and advance steadily, working hand in hand with global partners to the blueprint for our shared development.

Passing on the Torch, Building on the Past to Open up the Future. Thirty years have passed,and the first generation of entrepreneurs reach their sixties and retire with honor. Fortunately, a new generation of Capchem individuals has grown robustly through trials. Yesterday, the company officially announced the appointment of the new operational leadership team: Mr. Jiang Xisong assumes the role of President, steering the overall management and operations; Dr. Wu Chengying and Dr. Qian Yunxian are promoted to as Vice Presidents, leading the Organic Fluorine Chemicals Division and the Battery Chemicals Division, respectively. They are in their prime, highly professional, inheritors of the Capchem culture, and pioneers of the new entrepreneurial journey. Following his retirement, Mr. Zhou Dawen continues to serve as an Executive Director of the company, and Mr. Xie Weidong assumes the role of Chairman of Hexafluo, safeguarding the enterprise's development and empowering the younger team. As the new generation management team takes up the relay baton of development, they are destined to lead all Capchem people in deeply cultivating the "Seventh Five-Year" strategy and creating great splendor in the new era once again.

Upholding integrity and innovation, building on the past and forging ahead into the future. Standing at the brand-new starting point of 30 years of age and the first year of the "7th Five-Year Strategy", these words are the core theme and business guideline of Capchem for the next five years. Upholding integrity means adhering to the original aspiration of electronic chemicals, keeping solemn commitments to customers, pursuing ultimate product quality, and permanently abiding by compliant operations and social responsibilities; Innovation means tackling key technologies of critical materials, competing globally at the forefront of science and technology, iterating and evolving business management models, and keeping pace with the times.Building on the past means inheriting the spiritual core of the 30-year corporate culture and continuing the striving background of deepening the industry; this accumulation of arduous entrepreneurship is our confidence to march towards the future. Forging ahead into the future means opening up a new situation of international development, striving for the new future of the "7th Five-Year Plan", and exploring the infinite possibilities of new technologies and new tracks. With integrity as the rudder and innovation as the sail, we will surely ride the wind and waves from the profound accumulation of 30 years and sail towards a broader sea of stars.

Thirty years of spring blossoms and autumn fruits have yielded fruitful results. This glory belongs to every customer who trusts us, every partner who walks alongside us, and above all, every striving Capchem person. For the next 30 years, the journey is long and only through hard work can we succeed. We need to unite as one, hand in hand, to embark on a new journey, compose a new chapter, and build new glory together!

Finally, I sincerely wish all friends and partners a happy New Year, good health, smooth work, happy families, and all the best!

Sincerely,
Johnson Qin
Chairman of Capchem
January 1, 2026