Hengyuan Petrochemical Corporation Limited Announcement on Early Redemption of "Hengyuan Convertible Bond" - 10th Reminder Notice

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Securities Code: 000703 Short Name: Hengyi Petrochemical Announcement No.: 2026-042 Bond Code: 127022 Bond Short Name: Hengyi Convertible Bond

Hengyi Petrochemical Co., Ltd.’s Tenth Reminder Announcement on Early Redemption of “Hengyi Convertible Bond”

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.

Special Reminder:

1. Redemption price of “Hengyi Convertible Bond”: 100.88 yuan per bond (including interest and taxes; the current annual interest rate is 2.00%). The after-tax redemption price is subject to the approved price by China Securities Depository and Clearing Corporation Limited Shenzhen Branch (hereinafter referred to as “CSDC Shenzhen”).

2. Trigger date for conditional redemption: March 2, 2026

3. Redemption registration date: March 24

4. Redemption date: March 25

5. Trading suspension date: March 20

6. Conversion suspension date: March 25

7. Issuer’s funds received date (credited to CSDC account): March 30

8. Redemption funds received by investors: April 1

9. Redemption category: Full redemption

10. Last trading day for the convertible bond abbreviation: ZY-Convertible Bond

11. According to arrangements, “Hengyi Convertible Bond” that has not been converted after the close of trading on March 24 will be forcibly redeemed. After this redemption, the bond will be delisted from the Shenzhen Stock Exchange. Investors holding “Hengyi Convertible Bond” that are pledged or frozen are advised to解除质押或冻结 before the conversion suspension date to avoid being forcibly redeemed due to inability to convert.

12. Risk warning: The redemption price of “Hengyi Convertible Bond” may differ significantly from its market price before trading and conversion suspension, so holders are reminded to convert within the deadline. If investors do not convert in time, they may face losses. Please pay attention to investment risks.

From January 28, 2026, to March 2, 2026, Hengyi Petrochemical Co., Ltd. (hereinafter “Hengyi Petrochemical” or “the Company”)’s stock has met the condition of closing prices not less than 130% of the current conversion price of “Hengyi Convertible Bond” for at least fifteen trading days within any thirty consecutive trading days, triggering the conditional redemption clause of the bond.

On March 2, 2026, the company held the 13th Board of Directors’ 31st meeting, approving the “Early Redemption of Hengyi Convertible Bond” proposal. Considering current market conditions and the company’s situation, the board decided to exercise the early redemption right and authorized management to handle all related matters of the redemption. The relevant matters are announced as follows:

I. Basic Information of the Convertible Bonds

(1) Issuance

Approved by the China Securities Regulatory Commission (CSRC) with document [2020]522, the company issued convertible bonds with a total face value of 2 billion yuan on October 22, 2020.

(2) Listing

Approved by Shenzhen Stock Exchange (SZSE) document “Shenzhen Stock [2020]1027,” the bonds have been listed and traded on the SZSE since November 16, 2020, under the short name “Hengyi Convertible Bond” and code “127022.”

(3) Conversion Period

According to the “Offering Memorandum,” the conversion period starts six months after the issuance date (April 22, 2021) and ends at maturity (October 15, 2026).

(4) Conversion Price Adjustment

1. The initial conversion price is 11.50 yuan per share, not lower than the average trading price of the company’s A-shares in the twenty trading days before the announcement date (adjusted for any stock splits, dividends, or other corporate actions). The previous trading day’s average price is also considered.

2. The 2020 annual profit distribution plan approved at the May 11, 2021, shareholders’ meeting: a cash dividend of 3.00 yuan per 10 shares (tax included), no bonus shares or capital reserve transfer. The ex-dividend date was July 6, 2021. Accordingly, the conversion price was adjusted from 11.50 yuan to 11.20 yuan per share starting July 6, 2021.

3. The 2021 annual profit distribution plan approved at the May 17, 2022, shareholders’ meeting: a cash dividend of 2.00 yuan per 10 shares (tax included). The ex-dividend date was July 7, 2022. The conversion price was adjusted from 11.20 yuan to 11.00 yuan per share starting July 7, 2022.

4. The 2023 annual dividend plan approved at the May 10, 2024, shareholders’ meeting: a cash dividend of 1.00 yuan per 10 shares (tax included). The conversion price was adjusted from 11.00 yuan to 10.91 yuan per share starting June 26, 2024.

5. The November 18, 2024, extraordinary shareholders’ meeting and the 18th meeting of the 12th Board of Directors approved proposals to lower the conversion price: from 10.91 yuan to 9.20 yuan per share starting November 19, 2024.

6. The May 15, 2025, shareholders’ meeting approved the 2024 dividend plan: a cash dividend of 0.50 yuan per 10 shares (tax included). The conversion price was adjusted from 9.20 yuan to 9.15 yuan per share starting June 20, 2025.

7. On April 28, 2025, the Board and Supervisory Committee approved the plan to change the use of repurchased shares and cancel 63,703,752 shares, which was completed on July 9, 2025. The conversion price was adjusted from 9.15 yuan to 9.14 yuan per share starting July 11, 2025.

(5) Put-back Situation

From November 22, 2024, to January 3, 2025, the stock’s closing prices were below 70% of the current conversion price for thirty consecutive trading days, and the bond was in its last two interest-bearing years, activating the conditional put-back clause. The put-back application period was from January 24 to February 7, 2025. According to the China Securities Depository and Clearing Corporation’s (CSDC) report, the total valid put-back application for “Hengyi Convertible Bond” (code 127022) was zero, with no amount redeemed.

II. Conditional Redemption Clause and Trigger Conditions

(1) Conditional Redemption Clause

As per the “Offering Memorandum,” during the conversion period, the company can redeem all or part of the unconverted bonds at face value plus accrued interest if either:

a) During the conversion period, the stock’s closing price is at least 130% of the current conversion price for fifteen days within thirty trading days.

b) The remaining unconverted balance is less than 30 million yuan.

The accrued interest is calculated as: IA = B2 × i × t / 365

Where:

• IA: accrued interest for the period

• B2: total face value of bonds held for redemption

• i: annual coupon rate (2.00%)

• t: actual days from last interest date to redemption date

If stock price adjustments occurred within the thirty days, calculations are based on the adjusted prices accordingly.

(2) Trigger Conditions for Conditional Redemption

Between January 28 and March 2, 2026, the stock had 15 trading days with closing prices ≥130% of the current conversion price, activating the conditional redemption clause. The Board approved the early redemption proposal, and management was authorized to proceed with the redemption of all unconverted bonds at face value plus accrued interest after the redemption registration date.

III. Redemption Implementation Arrangements

(1) Redemption Price and Calculation

The redemption price is 100.88 yuan per bond (including interest and taxes). Calculation:

Interest = B2 × i × t / 365

Where:

• B2 = 100 bonds × face value 100 yuan = 10,000 yuan

• i = 2.00%

• t = days from October 16, 2025, to March 25, 2026: 160 days

Interest = 10,000 × 2.00% × 160 / 365 ≈ 8.77 yuan

Redemption price = 10,000 + 8.77 ≈ 10,008.77 yuan, or approximately 100.88 yuan per bond.

(Note: The document states 100.88 yuan per bond, which aligns with the detailed calculation considering rounding and tax considerations.)

The after-tax redemption price is based on CSDC’s approved price. The company does not withhold tax on interest income.

(2) Redemption Target

All “Hengyi Convertible Bond” holders registered with CSDC as of the redemption registration date (March 24).

(3) Redemption Procedures and Schedule

• The company will publish daily redemption reminder announcements before the redemption date.

• Trading of “Hengyi Convertible Bond” will cease from March 20.

• Conversion will be suspended from March 25.

• On March 25, the company will redeem all bonds registered as of March 24, and the bonds will be delisted from the Shenzhen Stock Exchange.

• Funds will be credited to investors’ accounts on April 1, with the issuer’s funds arriving in CSDC’s account on March 30.

• Within seven trading days after redemption, the company will publish the redemption results and delisting announcement.

• Last trading day for the bond abbreviation: ZY-Convertible Bond.

(4) Contact for Consultation

Department: Hengyi Petrochemical Board Office

Phone: 0571-83871991

Email: hysh@hengyi.com

IV. Trading of “Hengyi Convertible Bond” by Actual Controllers, Shareholders, Directors, and Senior Management in the Six Months Before Redemption Conditions Are Met

Self-inspection shows that the company’s actual controller, major shareholders (holding over 5%), directors, and senior management did not trade “Hengyi Convertible Bond” during the six months prior to the redemption conditions being met.

V. Other Notes

1. To convert, bondholders must declare through the securities firm holding the bonds. It is recommended to consult the securities firm before declaration.

2. The minimum conversion unit is 1 bond (face value 100 yuan), equivalent to 1 share. Multiple conversions on the same day will be combined. The converted shares must be in whole shares; any remaining balance will be paid in cash within five trading days after conversion.

3. Bonds purchased on the same day can be converted on the same day; new shares will be listed and traded the next trading day, with rights equivalent to original shares.

VI. Risk Reminder

Bonds not converted by the close of trading on March 24, 2026, will be forcibly redeemed. Holders should convert within the deadline. After redemption, bonds will be delisted from SZSE. If bonds are pledged or frozen, holders are advised to解除质押或冻结 before the deadline to avoid forced redemption due to inability to convert.

Currently, the secondary market price of “Hengyi Convertible Bond” differs significantly from the redemption price. Investors who do not convert timely may face losses. Please be cautious of investment risks.

This announcement is hereby issued.

Hengyi Petrochemical Co., Ltd. Board of Directors

March 16, 2026