Guosheng Shian Technology Co., Ltd. Stock Trading Abnormal Fluctuation Announcement

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Stock Code: 603778 Stock Abbreviation: Guosheng Technology (Rights Protection) Announcement No.: Lin 2026-017

Guosheng Shian Technology Co., Ltd.

Announcement on Abnormal Fluctuations in Stock Trading

The Board of Directors and all directors of the company guarantee that the contents of this announcement do not contain any false records, misleading statements, or major omissions, and bear legal responsibility for the authenticity, accuracy, and completeness of its contents.

Important Risk Warning:

● The stock of Guosheng Shian Technology Co., Ltd. (hereinafter referred to as “the Company”) has seen a cumulative closing price increase deviation of over 20% over two consecutive trading days on March 16, 2026, and March 17, 2026. According to relevant provisions of the “Shanghai Stock Exchange Trading Rules,” this constitutes an abnormal fluctuation in stock trading.

● From March 6, 2026, to March 17, 2026, the Company’s stock has triggered price fluctuations twice, with a cumulative increase of 59.42% during this period. The short-term volatility of the Company’s stock is significant, higher than the increase of the industry and the Shanghai Composite Index during the same period, and has clearly deviated from market trends, posing a high risk of speculation. Currently, the Company’s stock price has seriously deviated from the fundamentals of the listed company, with a risk of decline in the future.

● The latest price-to-book ratio of the electrical machinery and equipment manufacturing industry to which the Company belongs is 3.55, while the Company’s price-to-book ratio is 20.34, which is higher than the industry average.

● There has been no significant change in the Company’s main business and fundamentals. The Company expects to achieve a net profit attributable to shareholders of listed companies in 2025 of between -650 million yuan and -325 million yuan. Currently, there is a significant discrepancy between the Company’s stock price and its fundamentals, and investors are urged to make rational decisions, invest cautiously, and be aware of risks in the secondary market.

● On October 14, 2025, the Company disclosed the “Announcement on External Investment and Related Transactions.” This external investment will expose the Company to certain liquidity risks, as the project loan funds have not yet been in place, and the investment target has not yet commenced actual operations, hence there is a risk that expected returns may not be realized. Due to policy impacts, the implementation and commercialization prospects of the project are uncertain, and investors should be aware of the investment risks.

● On November 25, 2025, the Company disclosed the “Announcement on the Acquisition of 100% Equity of Tongling Fuyue Technology Co., Ltd.” The acquisition loan for this equity acquisition is still under approval, posing an uncertain risk; there may be changes during the implementation of the project; after the transaction is completed, there is uncertainty regarding the integration of the target company’s business technology, business team, and other aspects; there is a risk that the target company may not meet the agreed performance commitments; and the Company faces a risk of significant goodwill impairment, which may adversely affect the Company’s future income and expenses.

● As of the disclosure date of this announcement, the number of pledged shares by the Company’s controlling shareholder is 63,900,000 shares, accounting for 59.01% of their holdings and 9.73% of the Company’s total share capital.

I. Specific Circumstances of Abnormal Stock Trading Fluctuations

The stock of the Company has seen a cumulative closing price increase deviation of over 20% over two consecutive trading days on March 16, 2026, and March 17, 2026. According to the relevant provisions of the “Shanghai Stock Exchange Trading Rules,” this constitutes an abnormal fluctuation in stock trading.

II. Relevant Situations the Company is Monitoring and Verifying

(1) Company’s Daily Operating Situation

After self-examination, the Company confirms that there has been no significant change in its main business and fundamentals. The Company’s photovoltaic sector includes the research and development, production, and sales of large-size high-efficiency heterojunction (HJT) photovoltaic cells; and the production and sales of heterojunction (HJT), TOPCON, PERC, and other components. Heterojunction (HJT) components are mainly used in large ground power plants, offshore power plants, distributed power plants, rooftop power plants, etc., and there have been no significant changes in the application fields. The Company’s landscaping sector is engaged in landscape engineering construction and landscape design.

Currently, the Company’s production and operation activities are being conducted normally and orderly, with no significant adjustments in the market environment or industry policies, and the internal production and operation order is normal, with no significant information that should be disclosed but has not been disclosed.

(2) Major Events Situation

On October 14, 2025, the Company disclosed the “Announcement on External Investment and Related Transactions.” The Company’s secondary holding subsidiary, Anhui Guosheng New Energy Technology Co., Ltd. (hereinafter referred to as “Anhui Guosheng New Energy”), intends to invest 230 million yuan to increase its capital in Guosheng Global New Energy (Tieling) Co., Ltd. (hereinafter referred to as “Tieling Global”) for the subsequent investment in the intelligent manufacturing project of the solid-state battery industrial chain.

On November 25, 2025, the Company disclosed the “Announcement on the Acquisition of 100% Equity of Tongling Fuyue Technology Co., Ltd.” The Company intends to acquire 100% equity of Tongling Fuyue Technology Co., Ltd. (hereinafter referred to as “Fuyue Technology”) from Tongling Zhenghao Technology Co., Ltd. (hereinafter referred to as “Zhenghao Technology”) and Lin Qin for 240.6 million yuan.

After self-examination and written inquiries to the Company’s controlling shareholder and actual controller, as of the disclosure date of this announcement, apart from the above matters, there are no other major undisclosed matters that the Company, its controlling shareholders, and actual controllers should disclose, nor are there any major asset restructurings, significant transactions, business reorganizations, share repurchases, equity incentives, bankruptcy reorganizations, major business collaborations, or introduction of strategic investors being planned.

(3) Media Reports, Market Rumors, and Hot Concepts Situation

After verification by the Company, no media reports or market rumors that may significantly affect the trading price of the Company’s stock have been found, nor are there any market hot concepts involved.

(4) Other Price-Sensitive Information

After verification by the Company, no other major events that may have a significant impact on the Company’s stock price have been found. During this period of abnormal fluctuations in stock trading, the Company’s directors, senior management, controlling shareholders, and actual controllers have not engaged in buying or selling the Company’s stock.

III. Risk Warning

(1) Market Trading Risk

The Company’s stock has seen a cumulative closing price increase deviation of over 20% over two consecutive trading days on March 16, 2026, and March 17, 2026, with significant actual fluctuations after excluding the overall market and sector factors. From March 6, 2026, to March 17, 2026, the Company’s stock has triggered price fluctuations twice, with a cumulative increase of 59.42% during this period. The short-term increase in the Company’s stock price is significant, higher than the increases of the industry and the Shanghai Composite Index during the same period.

According to the latest industry data released on the official website of China Securities Index Co., Ltd., the latest price-to-book ratio of the electrical machinery and equipment manufacturing industry to which the Company belongs is 3.55, while the Company’s price-to-book ratio is 20.34, which is higher than the industry average. Investors are urged to be cautious of risks in the secondary market, make rational decisions, and invest prudently.

(2) Production and Operating Risks

On January 21, 2026, the Company disclosed the “2025 Annual Performance Forecast,” predicting a net profit attributable to shareholders of listed companies in 2025 of between -650 million yuan and -325 million yuan. Investors are urged to be aware of the Company’s performance risks.

(3) Risks of External Investment Matters

On October 14, 2025, the Company disclosed the “Announcement on External Investment and Related Transactions.” The Company’s secondary holding subsidiary, Anhui Guosheng New Energy, intends to invest 230 million yuan to increase its capital in Tieling Global for the subsequent investment in the intelligent manufacturing project of the solid-state battery industrial chain. This external investment involves the following risks:

1. Liquidity Risk: The funding for this external investment mainly comes from bank loans, which will increase the Company’s liabilities and expose it to certain liquidity risks. Currently, project loan funds have not yet been in place, and there is uncertainty regarding the implementation and commercialization prospects of the project.

2. Project Progress Risk: If there are changes in implementation conditions due to adjustments in national or local policies, there is a risk of delays, changes, or termination of the project.

3. Economic Benefits Not Meeting Expectations Risk: This investment has undergone prudent verification, but during implementation, Tieling Global may face uncertainties from macroeconomic conditions, industry policies, market competition, technological research and development, and operational management, leading to the possibility that Tieling Global cannot generate expected returns.

4. Risks of Not Having Commenced Actual Operations: Tieling Global has not yet commenced actual production and operational activities and may face risks in management and business operations in the future.

(4) Risks of Equity Acquisition Matters

On November 25, 2025, and January 15, 2026, the Company disclosed the “Announcement on the Acquisition of 100% Equity of Tongling Fuyue Technology Co., Ltd.” and “Announcement on the Payment Conditions of the Acquisition of 100% Equity of Tongling Fuyue Technology Co., Ltd. Not Being Met and Important Progress,” respectively. The Company intends to acquire 100% equity of Fuyue Technology from Zhenghao Technology and Lin Qin for 240.6 million yuan. This equity acquisition involves the following risks:

1. Risks of Raising Funds: Currently, the project’s acquisition loan is still under approval, and the payment conditions for the first phase of the equity acquisition and certain prerequisites for this transaction have not yet been met. There is a risk that the acquisition loan may not be approved, posing a risk that this transaction may not be completed.

2. Risks of Transaction Implementation: This transaction has not been finalized, and there may be changes during the implementation process, posing a risk of the transaction being suspended, halted, or canceled.

3. Business Integration Risks: The target company is mainly engaged in the research, development, production, and sales of high-precision new lithium battery structural components. The Company will integrate the target company from various aspects, including business technology and business teams, and the effectiveness of this integration carries certain uncertainties.

4. Risks of Not Being Able to Achieve Performance Commitments as Agreed: The acquisition agreement signed between the Company and the counterparty includes performance-related clauses, and if the target company’s actual net profit falls below the promised net profit during the performance commitment period, it may need to fulfill performance compensation obligations. If the target company cannot maintain smooth business development, there is a risk of not being able to achieve performance commitments as agreed.

5. Risks of Customer Dependency: The target company’s revenue mainly depends on the top two customers, resulting in a high revenue concentration. If the major customers significantly reduce their purchases from the target company, it will adversely affect the target company’s operating revenue.

6. Risks of Goodwill Impairment: After the completion of this transaction, it is expected that approximately 220 million yuan of goodwill will be recorded in the Company’s consolidated balance sheet. If the target company experiences adverse changes in future operational activities, the corresponding goodwill arising from the completion of this transaction may face asset impairment risks, which could significantly adversely affect the Company’s profit and loss situation.

(5) Risks of Share Pledge by the Company’s Controlling Shareholder

As of the disclosure date of this announcement, the Company’s controlling shareholder, Guosheng Energy Co., Ltd., holds 108,295,827 shares of the Company, accounting for 16.49% of the total shares. The total number of pledged shares is 63,900,000 shares, accounting for 59.01% of their holdings and 9.73% of the Company’s total share capital. The high percentage of pledged shares by the controlling shareholder poses investment risks, and investors are urged to be cautious.

IV. Board of Directors Declaration and Commitment from Related Parties

The Company’s Board of Directors confirms that, apart from the disclosed matters, there are no other matters that should be disclosed according to the “Shanghai Stock Exchange Stock Listing Rules” and have not been disclosed, nor are there any plans, discussions, intentions, agreements, etc., related to such matters. The Board has not been made aware of any information that should be disclosed according to the “Shanghai Stock Exchange Stock Listing Rules” and has not been disclosed, which may significantly affect the trading prices of the Company’s stock and its derivatives; there are no corrections or supplements needed for the previously disclosed information.

The Company solemnly reminds all investors that its designated information disclosure media are the “Shanghai Securities Journal” and the Shanghai Stock Exchange website (www.sse.com.cn). All information of the Company shall be subject to the information published in the designated media mentioned above.

This is a formal announcement.

Guosheng Shian Technology Co., Ltd.

Board of Directors

March 18, 2026

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