Baotou Tianhe Magnetic Materials Technology Co., Ltd. Announcement on the Maturity Redemption of Cash Management Using Part of Idle Raised Funds and Continuing Cash Management

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Security Code: 603072 Company Short Name: Tianhe Magnetic Materials Announcement No.: 2026-027

Baotou Tianhe Magnetic Materials Technology Co., Ltd.

Announcement on the Use of a Portion of Temporarily Idle Proceeds for Cash Management

Matured Redemption and Continued Cash Management

The board of directors of the Company and all directors hereby guarantee that this announcement contains no false records, misleading statements or material omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of the contents of this announcement.

Key Points:

● Investment product: bank wealth-management products.

● Investment amount: RMB 70,000,000.

● Approved deliberation procedures: On December 29, 2025, the Company held the 8th meeting of the third session of the Board of Directors’ Audit Committee, the special meeting of the third session of the Board of Directors’ independent directors, and the 9th meeting of the third session of the Board of Directors, respectively, at which the Company reviewed and approved the proposal on the use of a portion of temporarily idle proceeds for cash management. The sponsor, Shen Gang Securities Co., Ltd., issued a no-objection review opinion on this matter. This matter does not need to be submitted to the Company’s shareholders’ meeting for deliberation. For details, please refer to the announcement on the use of a portion of temporarily idle proceeds for cash management disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and in the designated information disclosure media (Announcement No. 2025-111).

● Special risk warning: The Company plans to use temporarily idle proceeds for cash management and will select investment products with high safety and good liquidity, but the financial market is greatly affected by the macroeconomic environment, and investment returns may still be affected by market fluctuations. The Company will appropriately and in a timely manner participate in accordance with the economic conditions and changes in the financial market. Investors are kindly requested to pay attention to investment risks.

I. Circumstances of matured redemption of cash management using a portion of temporarily idle proceeds

Recently, the cash-management products used by the Company with a portion of temporarily idle proceeds have matured and been redeemed. The principal and returns have been promptly returned to the proceeds account. The details are as follows:

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II. Overview of Investment

(I) Investment Purpose

To further improve the efficiency of the use of proceeds, and on the premise of ensuring the normal progress of the proceeds investment plan and the safety of the proceeds, the Company reasonably utilizes a portion of temporarily idle proceeds for cash management, to increase capital returns and obtain more investment returns for the Company and its shareholders.

(II) Investment Amount

The Company plans to use a maximum of not more than RMB 350,000,000 (the highest daily balance, including the amount) of temporarily idle proceeds for cash management. The usage period shall not exceed 12 months from the date on which the board of directors deliberates and approves the matter. Within the aforementioned limits and time period, the funds may be used in a revolving and rolling manner.

(III) Source of Funds

The funds for this cash management are the Company’s temporarily idle proceeds.

(IV) Investment Method

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(V) Implementation Method

The board of directors authorizes the management of the Company to exercise the decision-making power for this investment within 12 months from the date on which the board of directors deliberates and approves it, and to sign the relevant documents.

(VI) Information Disclosure

The Company will, in accordance with the requirements of laws, regulations, and regulatory documents such as the《Rules for the Regulation of the Use of Proceeds by Listed Companies》 and 《Guidelines for Self-Regulation of Listed Companies of the Shanghai Stock Exchange No. 1—Standardized Operation》, promptly fulfill its information disclosure obligations, and will not change the use of proceeds in an indirect manner.

(VII) Distribution of Cash Management Gains

The gains obtained by the Company from using a portion of temporarily idle proceeds for cash management belong to the Company, and the Company will strictly manage and use the proceeds in accordance with the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the supervision of proceeds.

III. Deliberation Procedures Completed

On December 29, 2025, the Company held the 8th meeting of the third session of the Board of Directors’ Audit Committee, the special meeting of the third session of the Board of Directors’ independent directors, and the 9th meeting of the third session of the Board of Directors, respectively. At each meeting, the Company reviewed and approved the proposal on the use of a portion of temporarily idle proceeds for cash management, agreeing that, on the premise of ensuring the normal execution of the proceeds investment plan and the safety of the proceeds, the Company would use temporarily idle proceeds for cash management with a maximum of not more than RMB 350,000,000 (the highest daily balance, including the amount), for the purchase of investment products with high safety and good liquidity (including but not limited to negotiated deposits, notice deposits, time deposits, structured deposits, large-denomination certificates of deposit, yield certificates, etc.). The usage period shall not exceed 12 months from the date on which the board of directors deliberates and approves the matter. Within the aforementioned limits and time period, the funds may be used in a revolving and rolling manner. This matter does not need to be submitted to the Company’s shareholders’ meeting for deliberation. The sponsor, Shen Gang Securities Co., Ltd., issued a no-objection review opinion on this matter. For details, please refer to the announcement on the use of a portion of temporarily idle proceeds for cash management disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and in the designated information disclosure media (Announcement No. 2025-111).

IV. Analysis of Investment Risks and Risk Control Measures

(I) Investment Risks

The Company plans to use temporarily idle proceeds for cash management and will select investment products with high safety and good liquidity. However, the financial market is significantly affected by the macroeconomic environment, and investment returns may still be affected by market fluctuations. The Company will appropriately and in a timely manner participate in accordance with economic conditions and changes in the financial market. Investors are kindly requested to pay attention to investment risks.

(II) Risk Control Measures

1. The Company will strictly follow the prudent investment principle when conducting cash management. It will select investment products with high safety and good liquidity (including but not limited to negotiated deposits, notice deposits, time deposits, structured deposits, large-denomination certificates of deposit, yield certificates, etc.), and such cash management products shall not be used for pledges and shall not be used for investment activities for the purpose of securities investment.

2. The Company’s finance department will timely analyze and monitor the direction of investment and progress of the cash management products. If risk factors are identified that may affect the safety of the Company’s funds, the Company will promptly take corresponding preservation measures to control the risks.

3. The Company’s independent directors and the board of directors’ audit committee have the right to supervise and inspect the use of funds. If necessary, professional institutions may be engaged to conduct an audit.

4. The Company will, in accordance with relevant provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange, promptly fulfill its information disclosure obligations.

V. Impact on the Company’s Day-to-Day Operations

On the premise of ensuring the normal execution of the proceeds investment plan and the safety of the proceeds, the Company reasonably uses a portion of temporarily idle proceeds for cash management, which will not affect the Company’s day-to-day operations or the normal implementation of its proceeds investment projects. There is no situation that would prejudice the interests of the Company and its shareholders, nor any situation of indirectly changing the use of proceeds. Through this cash management of temporarily idle proceeds, the Company will further improve the efficiency of the use of proceeds, increase capital returns, and this is consistent with the interests of the Company and all shareholders.

VI. The Company’s Cash Management Using Temporarily Idle Proceeds

As of the date of this announcement, the status of using temporarily idle proceeds for cash management during the effective authorization period is as follows:

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Announcement is hereby given.

Board of Directors of Baotou Tianhe Magnetic Materials Technology Co., Ltd.

April 1, 2026

Security Code: 603072 Company Short Name: Tianhe Magnetic Materials Announcement No.: 2026-028

Baotou Tianhe Magnetic Materials Technology Co., Ltd.

Announcement on the Establishment of a Dedicated Settlement Account for Cash Management of Proceeds

The board of directors of the Company and all directors hereby guarantee that this announcement contains no false records, misleading statements or material omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of the contents of this announcement.

Baotou Tianhe Magnetic Materials Technology Co., Ltd. (the “Company”) convened the 8th meeting of the third session of the Board of Directors’ Audit Committee, the special meeting of the third session of the Board of Directors’ independent directors, and the 9th meeting of the third session of the Board of Directors on December 29, 2025, and at each meeting the Company reviewed and approved the proposal on the use of a portion of temporarily idle proceeds for cash management. The Company agreed that, on the premise of ensuring the normal execution of the proceeds investment plan and the safety of the proceeds, the Company would use temporarily idle proceeds for cash management with a maximum of not more than RMB 350,000,000 (the highest daily balance, including the amount), for the purchase of investment products with high safety and good liquidity (including but not limited to negotiated deposits, notice deposits, time deposits, structured deposits, large-denomination certificates of deposit, yield certificates, etc.). The usage period shall not exceed 12 months from the date on which the board of directors deliberates and approves the matter. Within the aforementioned limits and time period, the funds may be used in a revolving and rolling manner. This matter does not need to be submitted to the Company’s shareholders’ meeting for deliberation. The sponsor, Shen Gang Securities Co., Ltd., issued a no-objection review opinion on this matter. For details, please refer to the announcement on the use of a portion of temporarily idle proceeds for cash management disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and in the designated information disclosure media (Announcement No. 2025-111).

To meet the needs of cash management of proceeds, the Company has opened a dedicated settlement account for cash management of proceeds. The details are as follows:

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In accordance with the《Rules for the Regulation of the Use of Proceeds by Listed Companies》and provisions such as《Guidelines for Self-Regulation of Listed Companies of the Shanghai Stock Exchange No. 1—Standardized Operation》, the dedicated settlement account for cash management of proceeds shall be used solely for the settlement of investments in cash management products for temporarily idle proceeds, and shall not be used to deposit non-proceeds funds or for other purposes. When the cash management products mature and there is no further use or purchase plan, the Company will promptly cancel the above account.

Announcement is hereby given.

Board of Directors of Baotou Tianhe Magnetic Materials Technology Co., Ltd.

April 1, 2026

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