Jiangsu Farsoon Technology Co., Ltd. Stock Trading Abnormal Fluctuation Announcement

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Jiangsu Farsen Co., Ltd. Stock Trading Abnormal Fluctuation Announcement

The company and all members of the board of directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or major omissions.

Important Highlights:

1. Jiangsu Farsen Co., Ltd. (hereinafter referred to as “the Company” or “the Listed Company”) stock (stock abbreviation: Farsen; stock code: 000890) experienced a cumulative deviation of 22.73% in closing prices over two consecutive trading days on March 16 and 17, 2026. According to the relevant regulations of the Shenzhen Stock Exchange Trading Rules, this constitutes an abnormal fluctuation in stock trading. Meanwhile, the stock price has significantly diverged from the company’s fundamentals, with market sentiment overheating and potential irrational speculation risks. If the stock price continues to rise, the company may apply to the Shenzhen Stock Exchange for suspension and investigation. Investors participating in trading may face substantial risks. Investors are urged to fully understand the risks of secondary market trading, enhance risk awareness, invest rationally, and pay attention to investment risks.

2. The company disclosed the “2025 Annual Performance Forecast” on January 30, 2026 (Announcement No.: 2026-007), estimating that net profit attributable to shareholders of the listed company for 2025 will be between -90 million and -60 million yuan, with the possibility of further losses in the future. Investors are advised to invest rationally and be aware of investment risks.

3. The sale of a 10% stake in China Bekaert Steel Cord Co., Ltd. was completed on March 10, 2026. This transaction is expected to reduce the company’s net assets by approximately 17.1028 million yuan (the exact amount subject to audit results). It does not affect the company’s operating income, profits, or main business. The company’s main business remains metal products and environmental protection, with metal products accounting for about 72% of revenue. The company has no plans or arrangements to divest metal business. The proceeds will mainly be used to repay interest-bearing debt and supplement working capital, with no plans for acquiring other assets. Investors are reminded to invest rationally and be aware of risks.

4. The company’s business does not involve “special optical fiber” or “optical fiber,” nor does it involve “restructuring” or “backdoor listing.” Rumors about Jiangsu Farsen Optical Communication Technology Co., Ltd. and Jiangsu Farsen Optoelectronic Technology Co., Ltd. are false. Both are subsidiaries controlled by the company’s major shareholders and have no equity or business dealings with the listed company. As of the date of this announcement, there are no plans to restructure these two companies. Investors are advised to invest rationally and be aware of risks.

5. The company has conducted self-inspection and verified with controlling shareholders that, as of the date of this announcement, there are no undisclosed important information or major matters that should have been disclosed, nor any ongoing major planning or negotiations.

I. Specific Situation of Abnormal Stock Trading Fluctuation

The company’s stock prices on March 16 and 17, 2026, experienced a cumulative deviation of 22.73%, which qualifies as an abnormal fluctuation under the Shenzhen Stock Exchange Trading Rules.

II. Relevant Situations Verified and Concerned by the Company

The company has checked relevant matters regarding the abnormal stock fluctuation, with the following explanations:

1. The previously disclosed information does not require correction or supplementation.

2. There have been no significant changes or expected changes in the company’s operating conditions or internal and external environment recently.

3. During the fluctuation period, controlling shareholders, actual controllers, directors, and senior management did not buy or sell the company’s stock.

4. The company and controlling shareholders have no undisclosed major matters nor ongoing major planning.

5. No recent public media reports have disclosed undisclosed major information that could significantly impact the stock price. Recently, some false rumors circulated online claiming the company will “restructure” or be “backdoored,” involving “special optical fiber” or “optical fiber.” The company clarifies as follows:

(1) The company has not been interviewed by any media or individuals regarding these issues and has not issued any opinions or statements; all such information is false.

(2) The company’s main business is metal products and environmental protection. Metal products mainly include various steel wire products used in automotive seats, shipping docks, mining conveyor belts, etc., not involving oil, drilling, or military fields. The environmental business is mainly operated by its controlling subsidiary Dalian Guangtaiyuan Environmental Technology Co., Ltd., which specializes in high-difficulty wastewater treatment, liquid separation, and chemical concentration, mainly developing and operating household waste leachate treatment equipment.

(3) The rumors about Jiangsu Farsen Optical Communication Technology Co., Ltd. (hereinafter “Optical Communication”) are false. Its main business is the production and sale of communication optical fibers and optical fiber preforms. In 2024, revenue was 172.7182 million yuan with a net loss of 33.6388 million yuan. It is a small-scale operation with ongoing losses. It is a subsidiary of the controlling shareholder and has no equity or business dealings with the listed company. No restructuring plans are in place.

(4) The rumors about Jiangsu Farsen Optoelectronic Technology Co., Ltd. (hereinafter “Optoelectronic Technology”) are false. Its main business is the production and sale of optical fibers and devices, security monitoring system integration, and related software development. In 2024, revenue was 86.8404 million yuan, with military product revenue of 8.3963 million yuan, and net profit of 15.3611 million yuan. Its scale is small, and it is a subsidiary of the controlling shareholder with no equity or business dealings with the listed company. No restructuring plans are in place.

(5) The rumors about Potevio Farsen Optical Communication Co., Ltd. (hereinafter “Potevio Farsen”) are false. It is a 19% equity stake held by the company in Potevio Farsen, mainly producing communication optical fibers, cables, etc., not involving “special optical fiber” or “fiber sensing.” Its products are used in telecom and broadcasting, not in military, aerospace, laser, or sensing fields. China Electronics Group holds a 6% stake, with no plans or negotiations for asset restructuring. Its revenue from 2022 to 2024 has been decreasing, with ongoing losses, and its low stake has minimal impact on the company.

III. Statement on the Absence of Undisclosed Major Information

The company’s board confirms that there are no undisclosed major matters or ongoing negotiations that should have been disclosed under relevant regulations. No information that could significantly impact the stock price has been undisclosed.

IV. Necessary Risk Warnings

1. The company has self-checked and found no violations of information disclosure fairness.

2. The company reminds investors: recent stock price fluctuations have deviated significantly from fundamentals, with risks of market overheating and irrational speculation. If prices continue to rise, the company may request a suspension for investigation, and investors may face substantial risks. Please understand the risks of secondary market trading and invest rationally.

3. The company reminds investors: the “2025 Annual Performance Forecast” predicts a net loss of 90 to 60 million yuan, with potential for further losses. The data is preliminary and unaudited; detailed financials will be disclosed in the 2025 annual report. No correction is needed as of this announcement.

4. The sale of a 10% stake in China Bekaert Steel Cord Co., Ltd. was completed on March 10, 2026, expected to reduce net assets by about 17.1028 million yuan, not affecting main business or revenue. The main business remains metal products and environmental protection. Funds will be used to repay debt and increase liquidity. No plans for other acquisitions. Investors are advised to act rationally.

5. The company’s business does not involve “special optical fiber” or “fiber,” nor does it involve “restructuring” or “backdoor listing.” The rumors about Optical Communication and Optoelectronic Technology are false; both are subsidiaries of controlling shareholders with no relation to the listed company. No restructuring plans are in place.

6. The company’s designated information disclosure media are “Securities Times,” “China Securities Journal,” “Shanghai Securities News,” and Juchao Information Network. All official information is published through these channels. The company will comply with laws and regulations to disclose information timely. Investors are reminded to invest rationally and be aware of risks.

V. Files for Reference

1. Response to Inquiry Letter Regarding Abnormal Stock Trading Fluctuation.

This announcement is made by the Board of Jiangsu Farsen Co., Ltd.

March 18, 2026