Announcement by Kode CNC Co., Ltd. regarding the joint establishment of the Excellence Innovation Center with Shanghai Aircraft Manufacturing Co., Ltd.

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Stock Code: 688305 Stock Abbreviation: Kede CNC Announcement No.: 2026-007

Kede CNC Co., Ltd.

Announcement on Co-Establishment of an Excellence Innovation Center with Shanghai Aircraft Manufacturing Co., Ltd.

The company’s board of directors and all directors guarantee that this announcement contains no false records, misleading statements, or major omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of its content.

1. Overview

Recently, Kede CNC Co., Ltd. (hereinafter referred to as “Kede CNC” or “the Company”) signed a revised agreement for the “Shanghai Aircraft Manufacturing Co., Ltd. - Kede CNC Excellence Innovation Center (COE) Co-Construction Agreement” (hereinafter referred to as the “Co-Construction Agreement”) with Shanghai Aircraft Manufacturing Co., Ltd. (hereinafter “SAF”). The revision clarifies core content such as research and development priorities from the initial agreement. After discussions, both parties will jointly establish an Excellence Innovation Center, focusing on cooperation in areas such as the processing technology of typical aircraft parts, pilot verification of domestically produced equipment, intelligent production line integration verification, and multi-domain collaborative “CNC workshop,” based on Kede CNC’s fully independent high-end five-axis machine tools and CNC systems, as well as key domestic core components. This agreement aims to promote the establishment and cooperation of the center, clearly defining the work foundation, each party’s advantages, main research areas, equipment R&D priorities, strategic layout, and principles of joint innovation and collaboration. It also establishes management and supervision structures, operational support commitments, and the main rights and obligations regarding intellectual property, confidentiality, compliance, and branding.

Both parties will leverage Kede CNC’s self-controlled high-end five-axis machine tools, including five-axis linkage vertical machining centers and flexible units, five-axis linkage horizontal machining centers, gantry machining centers, and five-axis linkage horizontal flip milling machines—at least seven types of equipment—to efficiently and precisely manufacture typical aircraft parts. They will jointly develop advanced processing techniques, conduct pilot verification and standard system construction for domestically produced equipment, and optimize deep integration of high-end CNC systems for civil aviation scenarios, promoting the upgrade of China’s civil aircraft manufacturing technology and high-end five-axis machine tools.

2. Impact on the Company

The co-establishment of the Excellence Innovation Center will help accelerate deep cooperation between both parties in China’s high-end equipment industry and large aircraft industry. This cooperation will enhance the company’s brand influence and core competitiveness, promote high-quality and sustainable development in high-end equipment manufacturing, and align with the company’s overall strategic plan.

This cooperation will not change the company’s main business or scope of operations, will not adversely affect the company’s independence, and does not create dependency on the other party. It does not harm the interests of the company or all shareholders, especially minority shareholders.

This cooperation was reached through friendly negotiations and does not involve specific transaction amounts. Its impact on the company’s operating performance is uncertain. It is not expected to have a significant impact on the current year’s performance, and future impacts will depend on the progress and implementation of subsequent cooperation matters.

3. Risk Reminder

The co-establishment of the Excellence Innovation Center does not constitute an associated transaction, nor does it constitute a major asset reorganization as defined by the “Administrative Measures for Major Asset Reorganizations of Listed Companies,” and does not require approval by the company’s board of directors or shareholders’ meeting. To facilitate investors’ valuation and decision-making, the company voluntarily discloses information about this cooperation.

The implementation of the co-establishment depends on mutual consensus and remains subject to uncertainties regarding progress and execution. The company will follow relevant laws, regulations, and the Articles of Association of Kede CNC Co., Ltd., to perform necessary approval procedures and disclose information as required. Investors are advised to make cautious decisions and be aware of investment risks.

This announcement is hereby made.

Board of Directors of Kede CNC Co., Ltd.

March 16, 2026