Announcement by Zhejiang Dashengda Packaging Co., Ltd. on Unusual Stock Trading Volatility and Risk Reminder

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Zhejiang Dashengda Packaging Co., Ltd. Announcement on Abnormal Stock Trading Fluctuations and Risk Reminder

The company’s board of directors and all directors guarantee that this announcement does not contain any false records, misleading statements, or major omissions, and assume legal responsibility for its authenticity, accuracy, and completeness.

Key Highlights:

● Abnormal Stock Trading Fluctuations: The stock of Zhejiang Dashengda Packaging Co., Ltd. (hereinafter referred to as “the Company”) experienced a cumulative deviation of over 20% in daily closing prices on March 20 and March 23, 2026, which qualifies as abnormal trading fluctuations under the relevant rules of the Shanghai Stock Exchange. The current stock price increase is seriously deviating from the company’s operating performance and industry conditions. Investors should be aware of the risks of performance volatility and high valuation, avoid market sentiment overheating, make rational decisions, invest cautiously, and be mindful of trading risks to prevent significant investment losses.

● Secondary Market Trading Risks: Since March 16, 2026, the company’s stock price has increased by a total of 41.53%. On March 23, 2026, the turnover rate reached 30.38%, with a significant increase in trading volume, indicating higher trading risk. According to the Price-to-Earnings ratio data published on the official website of China Securities Index Co., Ltd. as of March 20, 2026, the rolling PE ratio for the paper materials packaging industry (code 15501020) is 36.79, with the company’s latest rolling PE at 64.34. The closing price on March 23, 2026, was 14.73 yuan per share. The current stock price has deviated sharply from the Shanghai Composite Index and the paper packaging and printing sector index. The company’s main business remains unchanged, but the short-term continuous rise in stock price poses risks of overheated market sentiment and irrational speculation, which are significantly detached from the company’s fundamentals. There is a risk of rapid decline at any time. Investors should be cautious about secondary market trading risks, make rational decisions, and invest prudently.

● Major Event Progress Risks: The company held the third meeting of the fourth board of directors on March 18, 2026, to approve the proposal on asset purchase and joint external investment with related parties. Details are disclosed in the announcement published on the Shanghai Stock Exchange website on March 19, 2026 (“Announcement No.: 2026-012”) and other disclosures. This matter still requires approval at the company’s second extraordinary general meeting in 2026.

(1) Risk of investment returns not meeting expectations: Due to ongoing international developments and high uncertainty, the target company is still in its growth phase and has not yet achieved profitability. If the company fails to accurately grasp technological and market demand changes, it may lose competitiveness, face short-term profit difficulties or performance fluctuations, resulting in a longer investment return cycle and potential lower-than-expected gains.

(2) Post-investment operation, management, and integration risks: This investment involves new business areas. Post-investment, there may be risks related to understanding and coordinating the target company’s governance structure, technical routes, and market strategies. If technical integration, product development pace, or other aspects do not meet expectations, strategic synergies may not be realized.

(3) The transaction has not yet been completed; related agreements are not finalized. The transfer of equity and business registration changes may face uncertainties. The company will continue to monitor the progress of this transaction and fulfill disclosure obligations timely. Investors should be aware of investment risks.

● The company’s board of directors has conducted self-inspections and sent written inquiries to the controlling shareholder and actual controller. As of the date of this announcement, aside from disclosed matters, there are no major undisclosed issues involving the company, controlling shareholder, or actual controller.

● On March 18, 2026, the company received the Shanghai Stock Exchange’s “Regulatory Work Letter on Zhejiang Dashengda Packaging Co., Ltd.'s Cross-sector Investment” (SSE Official Letter [2026] 0518), and the company is currently organizing responses to the concerns raised.

1. Specifics of the abnormal stock trading fluctuations

The company’s stock experienced a cumulative deviation of over 20% in daily closing prices on March 20 and March 23, 2026, qualifying as abnormal trading activity under SSE rules.

2. Verified and concerned information

The company has verified relevant matters and confirmed with controlling shareholders and the actual controller. The verification results are as follows:

(1) Operating status

Self-inspection shows that the company’s and subsidiaries’ operations are normal, with no significant changes in internal or external business environments, and stable internal order.

(2) Major matters

The company held the third meeting of the fourth board of directors on March 18, 2026, to approve the asset purchase and joint external investment proposal, details of which are disclosed on the SSE website on March 19, 2026. This transaction still requires approval at the second extraordinary general meeting. Risks include lower-than-expected investment returns, management, and integration risks, and the transaction is not yet completed, with uncertainties about final signing and registration. The company will continue to monitor and disclose relevant progress.

On March 19, 2026, the company disclosed the “Prompt Notice on Share Transfer and Equity Change by Controlling Shareholder” (Announcement No.: 2026-013). This transfer is part of a broader strategic plan; if unsuccessful, the transfer will be terminated. The transfer will not change the company’s controlling shareholder or actual controller, nor will it involve a mandatory bid or significantly impact corporate governance or ongoing operations. Final implementation depends on approval from the SSE and other legal procedures, with uncertainties remaining.

Self-inspection and inquiries with controlling shareholders and the actual controller confirm that, as of this announcement, aside from publicly disclosed information, there are no major undisclosed issues, including but not limited to major asset restructuring, share issuance, significant transactions, business restructuring, share repurchases, equity incentives, bankruptcy reorganization, major business cooperation, or strategic investor introductions.

(3) Media reports, market rumors, and hot concepts

The company has not identified any media reports, rumors, or hot concepts that could significantly impact stock prices beyond those already disclosed.

(4) Other sensitive information

The controlling shareholder, actual controller, directors, and senior management did not buy or sell the company’s stock during the abnormal trading period. No other major events that could impact the stock price have been found.

3. Risk warnings

(1) Secondary market trading risks

Since March 16, 2026, the stock price has increased by 41.53%. The turnover rate on March 23, 2026, was 30.38%, with high trading volume, indicating increased risk. The PE ratio as of March 20, 2026, is 36.79 for the industry, with the company’s latest PE at 64.34. The closing price on March 23 was 14.73 yuan per share. The stock price has deviated sharply from the Shanghai Composite Index and the paper packaging sector index. The company’s core business remains unchanged, but the rapid rise suggests overheated market sentiment and irrational speculation, with risks of sharp declines. Investors should exercise caution.

(2) Uncertainty risks related to major matters

The asset purchase and joint investment require approval at the second temporary general meeting. Risks include:

• Investment returns may fall short due to international uncertainties and the target company’s early-stage status without profit. Failure to accurately grasp market and technical changes could lead to competitiveness loss, short-term profit difficulties, or performance fluctuations, extending the investment cycle and reducing returns.

• Post-investment management and integration risks involve understanding and coordinating governance, technology, and market strategies. Failure to meet expectations could hinder strategic synergies.

• The transaction is not finalized; legal and procedural uncertainties remain. The company will monitor and disclose progress.

The transfer of shares also requires approval from the SSE and legal procedures, with uncertainties about final implementation.

(3) Media risk

The company reminds investors that the SSE website, “Shanghai Securities News,” and “Securities Times” are the designated disclosure media. All official information is published through these channels. Investors should make rational decisions and be aware of risks.

4. Board statement and commitments

The company’s board confirms that, as of this announcement, aside from disclosed matters, there are no undisclosed major issues or negotiations that could significantly impact the stock price. The company’s previous disclosures are accurate and complete.

This announcement is made accordingly.

Zhejiang Dashengda Packaging Co., Ltd.

Board of Directors

March 24, 2026