Origin of shares: 241.35 million shares of buyback stock to be cancelled and company bylaws to be amended.

Star Source Material Announcement stated that the 21st meeting of the sixth board of directors of the company reviewed multiple proposals. It was agreed to cancel 2,413,500 shares that were not used for repurchase in January 2023. This proposal, as well as the amendments to the registered capital and the amendment to the company's articles of association, will all require shareholder approval. After cancellation, the company's registered capital will reduce from 1.348 billion yuan to 1.346 billion yuan, and the total number of shares will decrease from 1.348 billion to 1.346 billion. Additionally, it is proposed to purchase liability insurance for senior executives with a compensation limit of 50 million yuan per year and a premium not exceeding 300,000 yuan per year, which will be directly submitted to the shareholders' meeting. The company also decided to hold its first extraordinary general meeting of shareholders on January 12, 2026.