Announcement of the company's proposed investment in the construction of a new project
2026-01-08
The Company and all members of the Board of Directors warrant the truth, accuracy and completeness of the contents of this announcement and the absence of any false statements, misleading statements or material omissions and bear individual and joint legal responsibility for the truth, accuracy and completeness of its contents.
I. General information on external investments
(I) Basic information
In accordance with the company's strategic planning and business development needs, the company plans to acquire land, construct new production buildings and related infrastructure, gradually expand the overall scale of the company's production and business activities, further enhance the company's overall competitiveness and market share, creating a solid foundation for its sustainable development. The total investment in this project is expected to be about 500 million yuan.
(II) Whether the transaction constitutes a material reorganization of assets
This transaction is not a material reorganization of assets.
In accordance with the “Regulations on the Management of Substantial Reorganization of Assets of Non-Public Public Companies” and “Guide No. 1 on the Application of the Rules of Mergers and Acquisitions and Reorganization of the National System for the Quotation and Trading of Shares of Small and Medium-sized Enterprises - Substantial Reorganization of Assets”, this investment project for the construction of new facilities is a project implemented by the company independently and is related to production and business activities, therefore it is not a significant reorganization of assets.
(III) Whether the transaction is a related party transaction
This transaction is not a related party transaction.
(IV) Review and Voting
On January 8, 2026, at the tenth meeting of the Board of Directors of the fifth convocation of the company, the proposal “On the company’s investment in the construction of a new project” was considered and approved. In accordance with the company's articles of association and other relevant provisions, this proposal is subject to further consideration by the general meeting of shareholders.
(V) True external investments do not involve the company entering a new field of activity
(VI) Whether the investee is engaged in or plans to engage in private investment activities
The investee is not engaged in or plans to engage in private investment business, is not a private investment fund manager registered with the China Asset Management Association, and will not change the company's core business to private investment fund management.
(VII) There is no provision for the creation of other enterprises with financial characteristics
This investment does not involve the creation of businesses with financial characteristics such as microfinance companies, guarantee companies, leasing companies, commercial factoring companies, pawn shops, internet finance companies and other similar businesses.
II. Information about the investment object
(I) Basic information about the investment object and the specific content of the investment project
The company plans to purchase land, build new production buildings and related infrastructure. In particular, we are talking about creating a research and production base for the development and production of special welding materials, automotive components and other products.
(II) Form of contribution
Form of contribution within the framework of these external investments:
√ cash
□ assets
□ participation share
□ other specific form
The sources of financing for the investment project for the construction of new facilities will be the company’s own funds, borrowed funds and bank loans.
III. Main contents of the agreement on external investment
Currently, the investment project for the construction of new facilities is at the preparation stage. Specific agreements will be concluded in accordance with the progress of the project and the actual circumstances.
IV. Objectives of external investments, existing risks and impact on the company
(I) Objectives of this external investment
Investments in the construction of new facilities will expand the overall scale of the company's production and economic activities, further increase its overall competitiveness and market share, promote the sustainable and stable development of the company's business and are consistent with the company's long-term development strategy.
(II) Risks associated with real foreign investments
Advertisement number: 2026-002
The implementation of this investment project may be associated with certain production, operational and management risks. The company will constantly adapt to development requirements and market changes, and actively prevent and respond to possible risks.
The practical implementation of this project may be accompanied by certain uncertainty. In the future, the company will timely publish information on the progress of the project. Investors are advised to monitor relevant information.
(III) The impact of current external investments on the activities and financial position of the company
Planned investments in the construction of new facilities will help improve the company's comprehensive competitiveness, further increase its profitability and sustainable business development. They are expected to have a positive impact on the company's financial position and business in the future and will be in the interests of the company and all its shareholders.
V. Documents available for review
“Resolution of the Tenth Meeting of the Fifth Board of Directors of Shanghai Bobao Group Co., Ltd.”
Board of Directors of Shanghai Bobao Group Co., Ltd.
January 8, 2026
