Hua Zheng New Materials: Abnormal volatility in stock trading, advancing the issuance of additional shares carries uncertainty.

Hua Zhengxin Materials announced that the closing price of the company's stock deviated by more than 20% for three consecutive trading days from May 20 to May 22, 2026, indicating abnormal fluctuations. Upon self-examination, the company's production and operations are currently normal, and there are no significant undisclosed information to disclose. The company is proceeding with the issuance of A-shares to specific entities for the year 2026, with a planned issuance of no more than 47.0372 million shares and fundraising not exceeding 1.2 billion yuan. However, this still requires approval from the stock exchange and registration with the China Securities Regulatory Commission, so the implementation status and time frame are uncertain. In addition, Chairman Liu Tao and 4 other directors and senior executives collectively reduced their holdings by 21,000 shares through a selling plan during the abnormal fluctuations period.