Fujian Straits Environmental Protection Group Co., Ltd. Progress Announcement on Using Part of Idle Raised Funds for Cash Management

Stock Code: 603817 Stock Abbr.: Straits Environmental Protection Announcement No.: 2026-009

Fujian Straits Environmental Protection Group Co., Ltd.

Progress Announcement on Using a Portion of Temporarily Idle Proceeds for Cash Management

The Board of Directors of this Company and all of its directors warrant that there are no false records, misleading statements, or material omissions in the contents of this announcement, and assume legal responsibility for the authenticity, accuracy, and completeness of the contents.

Key Information:

● Investment Type: Yield Certificates

● Investment Amount: RMB 30,000,000

● Procedures Completed for Deliberation: Fujian Straits Environmental Protection Group Co., Ltd. (hereinafter referred to as the “Company”) held the 16th meeting of the Fourth Session of the Board of Directors on August 26, 2025, and approved the “Proposal on Using a Portion of Temporarily Idle Proceeds for Cash Management.” For details, please refer to the Company’s “Announcement on Using a Portion of Temporarily Idle Proceeds for Cash Management” (Announcement No.: 2025-049) disclosed on August 27, 2025 on the website of the Shanghai Stock Exchange (www.sse.com.cn).

● Special Risk Warning: The Company will use temporarily idle proceeds to purchase cash management products issued by financial institutions such as commercial banks and securities companies that have valid business operating qualifications. These products have high safety and good liquidity, and the investment term will not exceed 12 months. The risks are controllable. However, it is still possible that the investment returns may be affected due to factors such as market fluctuations and changes in macro-financial policies.

I. Overview of Investment

(1) Investment Purpose

To improve the efficiency of the use of proceeds, subject to not affecting the implementation of the Company’s proceeds investment projects and ensuring the safety of the proceeds, the Company will reasonably use a portion of temporarily idle proceeds for cash management, improve the efficiency of the use of proceeds, and safeguard the interests of the Company’s shareholders.

(2) Investment Amount

The total amount proposed for investment in this instance is RMB 30,000,000.

(3) Source of Funds

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(4) Investment Method

The Company intends to select cash management products with high safety and good liquidity, with an investment term not exceeding 12 months, issued by financial institutions such as commercial banks and securities companies that have valid business operating qualifications, including but not limited to bank time deposits, structured deposits, yield certificates, and so on. The above products shall not be used for pledges; the product-specific settlement account shall not be used to hold non-proceeds funds or for other purposes; and they shall not be used for investment activities for the purpose of securities investment.

The returns obtained from this cash management will be managed and used strictly in accordance with the requirements of the CSRC and the Shanghai Stock Exchange regarding proceeds supervision measures.

On March 27, 2026, the Company used RMB 30,000,000 of temporarily idle proceeds to purchase yield certificates issued by Citic Securities Co., Ltd. from Citic Securities Co., Ltd. The products meet the conditions for use with high safety and good liquidity, and satisfy the principal-protection requirements. There is no situation that would affect the normal progress of the proceeds investment projects, and there is no situation that would harm the interests of shareholders. The specific details are as follows:

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(5) Cash Management of Proceeds for the Last 12 Months as of Present

The amount and term of the cash management products using proceeds in this instance are both within the authorized investment quota and the authorized term range, and the product terms are all no more than 12 months.

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II. Deliberation Procedures

Fujian Straits Environmental Protection Group Co., Ltd. (hereinafter referred to as the “Company”) held the 16th meeting of the Fourth Session of the Board of Directors on August 26, 2025, and approved the “Proposal on Using a Portion of Temporarily Idle Proceeds for Cash Management.” For details, please refer to the Company’s “Announcement on Using a Portion of Temporarily Idle Proceeds for Cash Management” (Announcement No.: 2025-049) disclosed on August 27, 2025 on the website of the Shanghai Stock Exchange (www.sse.com.cn).

III. Analysis of Investment Risks and Risk Control Measures

(1) Investment Risks

The Company and its subsidiaries will select cash management products issued by financial institutions such as commercial banks and securities companies that have valid business operating qualifications, with high safety and good liquidity, and with an investment term not exceeding 12 months. However, it is still possible that the investment returns may be affected due to factors such as market fluctuations and changes in macro-financial policies.

(2) Risk Control Measures

1. The Company will strictly comply with relevant laws and regulations and the provisions of the “Articles of Association” to carry out the relevant wealth-management businesses, and will strengthen the analysis and research of the relevant wealth-management products. The Company will conscientiously implement all internal control systems, and strictly control investment risks.

2. The Company will adhere to the prudent investment principle, strictly select investment counterparties, and choose products issued by entities with good reputation, good operations, and the ability to ensure the safety of funds.

3. The Company will promptly analyze and monitor the investment direction and project progress of the investment products according to market conditions. If an assessment identifies risk factors that may affect the safety of the Company’s funds, the Company will promptly take safeguard measures to control investment risks.

IV. Impact of the Investment on the Company

Under the premise of ensuring daily operations and the safety of funds, the Company uses a portion of temporarily idle proceeds for cash management. This will not affect the Company’s normal day-to-day capital turnover needs. It will not cause a significant impact on the Company’s future business development, financial position, operating results, or cash flow. Through appropriate and timely cash management of temporarily idle proceeds, it will be beneficial for improving the efficiency of the use of proceeds, and it will enable the Company to obtain certain investment returns, which is in line with the interests of the Company and all its shareholders.

The products for the Company’s cash management will be handled strictly in accordance with the requirements of the “New Financial Instruments Standards.” They may affect the “Trading Financial Assets” line item in the balance sheet report, the “Cash and Cash Equivalents” line item in the balance sheet report, and in the income statement the line items “Finance Expenses,” “Gains/(Losses) from Changes in Fair Value,” and “Investment Income.”

V. Disclosure of Progress

(1) Redemption upon Expiration of the Previous Proceeds Cash Management

On December 17, 2025, the Company used RMB 35,000,000 of temporarily idle proceeds to purchase yield certificates issued by Founder Securities Co., Ltd. from Founder Securities Co., Ltd.; used RMB 30,000,000 of temporarily idle proceeds to purchase yield certificates issued by Citic Securities Co., Ltd. from Citic Securities Co., Ltd.; and used RMB 30,000,000 of temporarily idle proceeds to purchase yield certificates issued by Guoyuan Securities Co., Ltd. from Guoyuan Securities Co., Ltd. The aforementioned wealth-management products have expired and been redeemed recently. The Company recovered the principal of RMB 95,000,000 and obtained returns of RMB 422,900. For details, please refer to the Company’s “Announcement on Redemption upon Expiration of Cash Management Using a Portion of Temporarily Idle Proceeds” (Announcement No.: 2026-007) disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn). The specific details are as follows:

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Notice is hereby given.

Board of Directors of Fujian Straits Environmental Protection Group Co., Ltd.

March 28, 2026

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