Sifangda: Announcement on the purchase of entrusted wealth management products

The company and its board of directors confirm that the information provided is accurate, complete, and free from false statements or omissions. According to the resolution of the 14th meeting of the second term of the board of directors, the company approved the use of up to RMB 100 million for short-term bank-guaranteed wealth management products. This includes investments in bonds issued by money market funds, interbank and exchange-traded markets, bond repurchase agreements, and other fixed-income trust products. The funds can be reused within the approved limit. Based on this authorization, the company entered into a subscription agreement with Yunnan International Trust Co., Ltd. (referred to as "Yunnan Trust") and invested RMB 35 million in a fixed-income entrusted wealth management product using its idle capital. The details are outlined below: I. Details of the Entrusted Wealth Management Product 1. Product Name: Yunnan Trust-Guotai Junan Tianyingbao Steady Phase 1 Collective Fund Trust Plan 2. Investment Period: 49 days 3. Currency: RMB 4. Expected Annualized Return: 5.40% 5. Amount Invested: RMB 35 million 6. Investment Scope: Fixed-income securities such as interbank and exchange-traded bonds, cash, bank deposits, money market funds, bond funds, structured funds, and trust beneficiary rights. These are low-risk financial instruments. 7. Trustee: Yunnan International Trust Co., Ltd. 8. Trust Manager: - Xiao Jianjun: Male, holds a Ph.D. in Finance, has been active in the financial sector since 1999. He has extensive experience in financial research and investment banking and has managed several trust projects. - Xiang Ye: Female, Master of Law from Wuhan University, with two years of experience in trust management. She currently serves as a product manager at Yunnan International Trust and has participated in the design and management of multiple trust projects. 9. Custodian: Ping An Bank Co., Ltd. 10. Relationship: There is no relationship between the company and Yunnan Trust. 11. Approval: The purchase of the entrusted wealth management product was within the board's approved quota and did not require further review by the board. II. Risk Control Measures The company prioritizes risk management and will closely monitor the performance of the wealth management funds. It will implement strict controls to ensure the safety and proper use of the invested capital. III. Impact on the Company Investing idle funds in low-risk wealth management products does not interfere with the company’s normal operations. Instead, it enhances the efficiency of capital utilization and contributes to increased profitability. IV. Reference Documents The official prospectus of the "Yunnan Trust-Guotai Junan Tianyingbao Steady Phase 1 Collective Fund Trust Plan" is available for reference. Special Announcement Henan Sifangda Superhard Materials Co., Ltd. Board of Directors August 12, 2013

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