Shenzhen Shangshui Intelligent Co., Ltd. Special Announcement on Investment Risks for the Initial Public Offering and Listing on the Growth Enterprise Market

Special Notice

The application submitted by Shenzhen Shangshui Intelligent Co., Ltd. (together with “Shangshui Intelligent,” “the Issuer,” or “the Company,” as referred to below) for its initial public offering of 25.0000 million shares of RMB ordinary shares (A shares) (hereinafter referred to as “this Offering”) was approved for examination and passed by the Shenzhen Stock Exchange (hereinafter referred to as “the SZSE”) Listing Review Committee on December 16, 2025, and registration was approved by the China Securities Regulatory Commission (hereinafter referred to as “the CSRC”) (Approval Permit No. [2026] 72).

After consultation between the Issuer and the sponsor (lead underwriter)—Guolian Minsheng Securities Co., Ltd. (hereinafter referred to as “Guolian Minsheng Sponsorship and Underwriting,” or the “Sponsor (Lead Underwriter)”)—it has been determined that 25.0000 million new shares will be issued under this Offering, representing 25.00% of the total share capital after the Offering, all of which are public offering new shares. The shares to be issued under this Offering are intended to be listed on the SZSE ChiNext.

The price of RMB 26.66 per share corresponds to the Issuer’s diluted price-to-earnings ratio (P/E ratio) of 18.02 times after deduction of the mother-company attributable net profit both before and after non-recurring gains and losses for 2024, calculated on the lower of the two; it is lower than the most recent one-month average static P/E ratio of 41.56 times for the “C35 Special Equipment Manufacturing Industry” published by China Securities Index Co., Ltd. on April 1, 2026 (T-4). It is also lower than the average static P/E ratio of 54.83 times based on comparable companies’ mother-company attributable net profit for 2024 on the lower of the two after deduction of non-recurring gains and losses; however, there remains the risk that a future decline in the Issuer’s share price could cause losses to investors. The Issuer and the Sponsor (Lead Underwriter) hereby request investors to pay attention to the risks of this Offering, prudently assess the reasonableness of the Offering price, and make rational investment decisions.

The Issuer and the Sponsor (Lead Underwriter) particularly request investors to pay attention to the following:

1. This Offering will be conducted using a combination of: (1) targeted allocation to investors participating in strategic placement (hereinafter referred to as “strategic placement”); (2) bookbuilding-by-inquiry allocation to offline investors that meet the relevant conditions (hereinafter referred to as “offline offering”); and (3) price-based issuance to online public investors holding non-restricted A shares and non-restricted depository receipts by market value in the Shenzhen market (hereinafter referred to as “online offering”).

The strategic placement in this Offering will be organized and implemented by the Sponsor (Lead Underwriter). The initial inquiry and the offline offering of this Offering will be organized and implemented by the Sponsor (Lead Underwriter) through the SZSE offline offering electronic platform and the China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as “CSDC Shenzhen Branch”) registration and clearing platform. The online offering will be conducted through the SZSE trading system, using a market-value-based subscription, price-based issuance method.

2. After the initial inquiry ends, the Issuer and the Sponsor (Lead Underwriter), in accordance with the stripping rules set out in the “Announcement on Initial Inquiry and Promotion for the Initial Public Offering of Stocks and Listing on the ChiNext Board by Shenzhen Shangshui Intelligent Co., Ltd.” (hereinafter referred to as the “Announcement on Initial Inquiry and Promotion”), will, after excluding the results of initial inquiries from investors’ bids that do not meet the requirements, remove all placing objects whose proposed subscription price is higher than RMB 27.11 per share (excluding RMB 27.11 per share); remove all placing objects whose proposed subscription price is RMB 27.11 per share and whose subscription quantity is less than 7.00 million shares; and remove, among the placing objects with a proposed subscription price of RMB 27.11 per share, whose subscription quantity is exactly 7.00 million shares, and whose subscription time is the same as 14:51:29:593 on April 1, 2026, 40 placing objects from back to front according to the order of placing objects automatically generated on the SZSE offline offering electronic platform. Under the above process, a total of 98 placing objects will be stripped, and the total proposed subscription quantity to be stripped is 65,570 million shares, representing approximately 1.0040% of the total proposed subscription quantity after excluding invalid bids in this initial inquiry. The portion to be stripped may not participate in offline and online subscriptions.

3. Based on the results of the initial inquiry, the Issuer and the Sponsor (Lead Underwriter) will, taking into account investors’ bid prices and subscription quantities, effective subscription multiples, the Issuer’s fundamentals and the industry it operates in, market conditions, the valuation levels of listed companies in the same industry, the demand for fundraising, and underwriting risks, among other factors, and after consultation, determine that the Offering price will be RMB 26.66 per share, and no cumulative tender inquiry will be conducted for the offline offering.

Investors should make their online and offline subscriptions on April 8, 2026 (T day) at this price. No subscription funds need to be paid at the time of subscription. The offline subscription date and the online subscription date are both April 8, 2026 (T day). Among them, the offline subscription time is 9:30–15:00; the online subscription time is 9:15–11:30 and 13:00–15:00.

4. The Offering price agreed by the Issuer and the Sponsor (Lead Underwriter) is RMB 26.66 per share. The Offering price in this Offering will not exceed the lower of (i) the median and weighted average of bid prices of offline investors after stripping the highest bids and (ii) the median and weighted average of the bid prices of securities investment funds established through public fundraising (hereinafter referred to as “public funds”), the National Social Security Fund (hereinafter referred to as “social security fund”), the basic pension insurance fund (hereinafter referred to as “pension fund”), enterprise annuity funds and occupational annuity funds (hereinafter referred to as “annuity funds”), insurance funds that comply with provisions such as the “Measures for the Administration of Insurance Funds Utilization,” (hereinafter referred to as “insurance funds”), and qualified foreign investor funds. Therefore, the related subsidiaries of the sponsor do not need to participate in follow-on investment.

The initial strategic placement size in this Offering is 5.0000 million shares, representing 20.00% of the total number of shares of this Offering. Based on the finally determined Offering price, the strategic placement in this Offering will be composed of special asset management plans established through participation by the Issuer’s senior management and core employees in this strategic placement, as well as other investors participating in strategic placement. The final strategic placement size will be 3.7500 million shares, representing 15.00% of the total number of shares of this Offering. Of this, the special asset management plan involving the Issuer’s senior management and core employees will have a final strategic placement share quantity of 2.5000 million shares, representing 10.00% of the total number of shares of this Offering; other investors participating in strategic placement will have a final strategic placement share quantity of 1.2500 million shares, representing 5.00% of the total number of shares of this Offering. The difference between the initial strategic placement and the final strategic placement, 1.2500 million shares, will be returned to the offline offering.

5. The P/E ratio corresponding to the Offering price of RMB 26.66 per share is:

(1) 13.51 times (earnings per share is calculated as the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses for 2024 audited by an accounting firm under Chinese accounting standards, divided by the total share capital before this Offering);

(2) 13.11 times (earnings per share is calculated as the net profit attributable to shareholders of the parent company before deducting non-recurring gains and losses for 2024 audited by an accounting firm under Chinese accounting standards, divided by the total share capital before this Offering);

(3) 18.02 times (earnings per share is calculated as the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses for 2024 audited by an accounting firm under Chinese accounting standards, divided by the total share capital after this Offering);

(4) 17.48 times (earnings per share is calculated as the net profit attributable to shareholders of the parent company before deducting non-recurring gains and losses for 2024 audited by an accounting firm under Chinese accounting standards, divided by the total share capital after this Offering).

6. The Offering price is RMB 26.66 per share. Investors should assess the reasonableness of the Offering price based on the following circumstances.

(1) According to the “Guidelines for the Industry Classification of Listed Companies by the China Association of Listed Companies” (2023), Shangshui Intelligent’s industry is “C35 Special Equipment Manufacturing Industry.” As of April 1, 2026 (T-4), the most recent one-month average static P/E ratio for the industry published by China Securities Index Co., Ltd. is 41.56 times.

The diluted price-to-earnings ratio (P/E ratio) after deducting non-recurring gains and losses of the Issuer’s parent-company attributable net profit for 2024, calculated on the lower of before and after non-recurring gains and losses, corresponding to the Offering price of RMB 26.66 per share, is 18.02 times. This is lower than the most recent one-month average static P/E ratio of 41.56 times for the “C35 Special Equipment Manufacturing Industry” published by China Securities Index Co., Ltd. on April 1, 2026 (T-4). It is also lower than the average static P/E ratio of 54.83 times for comparable companies’ parent-company attributable net profit for 2024 on the lower of before and after non-recurring gains and losses; however, there remains the risk that a future decline in the Issuer’s share price could cause losses to investors. The Issuer and the Sponsor (Lead Underwriter) hereby request investors to pay attention to the risks of this Offering, prudently assess the reasonableness of the Offering price, and make rational investment decisions.

(2) As of April 1, 2026 (T-4), the static valuation levels of comparable listed companies are as follows:

Data source: iFind

Note 1: If there are differences in trailing figures in the calculation of P/E ratios, the differences are caused by rounding.

Note 2: EPS before/after non-deductible items in 2024 = parent-company attributable net profit before/after deduction of non-recurring gains and losses in 2024 / total share capital on T-4.

Note 3: Since Wuxi Liqi Shangwei has not yet been listed, and the P/E ratio data for Leading Smart and Jinyinhe are abnormal, these three comparable companies are excluded when calculating the average P/E ratio.

The rationale for the Offering price is explained as follows:

Compared with other companies in the industry, Shangshui Intelligent has certain advantages in the following aspects:

① Strong advantages from industry-first know-how and accumulated key technical capabilities in the manufacturing field of battery electrode slurries

As a technology-driven company that has been deeply engaged in the manufacturing of battery electrode slurries for more than a decade, the Company has brought together multiple experts and PhDs with over 20 years of industry experience in the field of battery manufacturing and materials preparation, and has formed a high-quality technical team integrating multiple disciplines including electrochemistry, materials science, chemical engineering, mechanical design, electrical control, and automation. At the end of the reporting period, the Company had 116 R&D personnel, accounting for 19.33% of the total number of employees. Supported by existing core technology platforms and talent systems, and benefiting from the deep accumulation and keen insight of its composite talent team, the Company keeps pace with the technological evolution trends in the industry. It has already formed a full-chain technology system covering the upstream processes of new energy battery manufacturing, mastered autonomous slurry preparation technology groups with internationally leading proprietary intellectual property rights, such as wetting and dispersing technologies including rotor-stator turbulent shear, high-throughput continuous circulation dispersing, and powder atomization wetting; and has simultaneously developed advanced film-forming technologies such as double-sided synchronized coating, suspended drying ovens, and precision roller gap adjustment. The Company will continue to promote product technology upgrades, providing solid support for consolidating its leading position in the equipment field for battery electrode slurry manufacturing.

At the same time, based on a profound understanding of process technologies, the Company has built a full-process technology platform for “materials—slurry preparation—film forming”: it forms a core technical matrix such as circulating, kneading, and continuous efficient slurry preparation in the slurry preparation stage, and breaks through the barriers in the film-forming field related to high-precision coating and drying processes. The Company’s R&D has forward-looking coverage of new material systems such as high-nickel ternary cathode materials, lithium manganese iron phosphate, and silicon-based anodes, adapting to innovative process demands such as high-solids-content film forming and dry electrode manufacturing. It has also simultaneously laid out equipment technology reserves in cutting-edge areas such as sodium-ion batteries and semi-solid/solid-state batteries. Through continuous technological iteration and process innovation, the Company already possesses equipment development capabilities to support industrialization of next-generation battery technologies, maintaining a significant competitive advantage in the upstream equipment market for new energy batteries.

② Industry-first advantages in the field of lithium battery slurry preparation equipment

In 2013, the Company took the lead in the industry by introducing thin-film high-speed dispersion technology, addressing industry pain points such as long slurry preparation time, uneven dispersion, and poor stability of lithium iron phosphate slurry, and entering the slurry preparation field. In 2016, the Company took the global lead in the industry by creating a circulating efficient slurry preparation system, opening up a completely new slurry preparation process route and theoretically solving the industry pain points such as poor pre-mixing results, low efficiency, high energy consumption, poor consistency, and large occupied floor space. This technology route has been led to become a mainstream development trend in the industry. By implementing methods such as continuous feeding during the powder-liquid mixing process, powder atomization, rapid flowing wetting, and methods such as rotor-stator turbulent shear during the dispersion process and high-throughput continuous circulation, the technology enables the preparation of lithium battery slurry. Moreover, the dispersion process changes from a probabilistic dispersion method to a deterministic dispersion method, representing a fundamental transformation of the existing batch slurry preparation process. This system not only has core advantages such as high dispersion efficiency and excellent uniformity and consistency of slurry, but also, through multi-dimensional innovations including shortening the slurry preparation cycle, lowering energy consumption, increasing single-machine production capacity, compressing space utilization, optimizing measurement accuracy, and keeping maintenance costs controllable, it significantly promotes upgrades to automation and intelligence in the slurry preparation stage, and simultaneously achieves stepwise decreases in both investment and operating costs. In 2023 and 2024, Guangdong Mechanical Engineering Society separately assessed the Company’s circulating efficient slurry preparation intelligent equipment and vertical media grinding machine as industry-first and already reached internationally advanced levels. The rotor-stator turbulent shear technology holds an internationally leading position.

In addition, the Company’s independently developed “Spiral Mixing Automatic Production Line for Lithium-Ion Positive and Negative Electrode Slurries” has been included in the list of major industrial technology equipment for the first set (unit) by the Ministry of Industry and Information Technology; and four sets of equipment, such as the “Kneading High-Efficiency Slurry Preparation System,” have been included in the list of major municipal technology equipment for Shenzhen’s first set (unit).

Relying on its industry-first advantages in slurry preparation equipment, the Company has grown rapidly, accumulating a large number of project implementation experiences and high-quality customers. The Company is continuously increasing R&D investment and efforts in developing new products. In the field of new energy batteries, it focuses on deploying cutting-edge process equipment such as high-solids-content film forming, dry and semi-dry electrode film forming. This provides first-mover advantages for future application scenarios of new technologies, aiming to achieve further industry-first technical breakthroughs in critical process equipment and consolidate its technological leadership position.

③ Strong advantages from high-intensity R&D investment and industry-first experience, ensuring the Company has strong expandability to enter new fields

The Company maintains high-intensity R&D investment to ensure its competitiveness. During the reporting period, the Company’s R&D expenses totaled 1,820.386 million yuan cumulatively, accounting for 8.96% of cumulative operating revenue. The Company has brought together multiple experts and PhDs with more than 20 years of industry experience in battery manufacturing and materials preparation fields, and has formed a specialized technical team integrating multiple disciplines including electrochemistry, materials science, chemical engineering, mechanical design, electrical control, and automation. As of the end of the reporting period, the Company had 116 R&D personnel, accounting for 19.33% of the total number of employees; as of the end of the reporting period, the Company had obtained 174 patents within the territory (including 44 invention patents), and 9 foreign invention patents. In 2020, the Company led the formulation of the industry standard “Lithium-Ion Battery Slurry High-Speed Dispersion Equipment”; in 2025, the Company participated in the preparation of the national standard “Communication Interface Requirements for Power Lithium Battery Production Equipment” (GB/T45390-2025).

The Company has advantages from continuous industry-first experience. As mentioned above, in 2013, the Company first introduced thin-film high-speed dispersion technology in the industry and entered the slurry preparation field; in 2016, the Company took the global lead in creating a “circulating efficient slurry preparation system,” opening up a new slurry preparation process route; starting in 2018, based on its accumulation in the field of new energy battery manufacturing, the Company deployed new materials platform technologies and gradually extended its business from battery electrode manufacturing to the new materials field; since 2021, the Company has forward-looking deployed intelligent equipment for semi-dry and dry electrode manufacturing, developing desktop-type intelligent experimental equipment, etc., and has continuously introduced new products and new technologies, continuously expanding the application areas.

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