Guotai Junan Securities Co., Ltd

About Zhongfu Shenying Carbon Fiber Co., Ltd

2024 Annual Continuous Supervision and Follow-up Report

Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or the "Sponsor") acted as the sponsor of the initial public offering of shares of Zhongfu Shenying Carbon Fiber Co., Ltd. (hereinafter referred to as "Zhongfu Shenying" or the "Company") and its listing on the Science and Technology Innovation Board. In accordance with the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, the Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 11 - Continuous Supervision and other relevant regulations, as the sponsor of the company's continuous supervision, it is responsible for the continuous supervision of Zhongfu Shenying after its listing, and issues this continuous supervision and follow-up report.

Concluding observations on significant risks

In 2024, the company will achieve operating income of 1557.3106 million yuan, a year-on-year decrease of 31.07%; Attribution

net profit of shareholders of listed companies -124.3839 million yuan, down 139.12% year-on-year; The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -184.7895 million yuan, a year-on-year decrease of 177.77%. The main departments: 1. Affected by the imbalance between supply and demand in the carbon fiber industry, the downstream demand is lower than expected and the sales price of products continues to decline; 2. The year-on-year decrease in net profit attributable to shareholders of listed companies was mainly due to the provision for impairment of accounts receivable and inventory, and the capitalization of interest and the conversion of interest from the full operation of Shenying Xining and Shenying Shanghai projects.

In 2024, the listed company will turn from profit to loss compared with the same period of the previous year, and in view of the phased loss, the company will improve the overall operation efficiency of the company through comprehensive measures such as product creation, technological innovation, market tackling, quality and efficiency coordination, risk management and control, etc., and build a sustainable competitive advantage to reduce the adverse impact of the industry downturn on the company's operation.

2. Continue to supervise the work

Serial No. Work Content Implementation Status

Establish a sound and effective implementation of the continuous supervision work system, and the sponsor institution has been established, improved and effectively implemented

1 Formulate corresponding work for specific continuous supervision work Continuous supervision system and formulate corresponding work

Plan. Plan.

According to the relevant regulations of the China Securities Regulatory Commission, the sponsor has signed a sponsorship agreement with Zhongfu Shenying in the continuous supervision of the work

2 Before the commencement, sign a continuous supervision agreement with the listed company, and clearly state that the agreement clarifies the continuous supervision period between the two parties

Confirm the rights and obligations of both parties during the period of continuous supervision, and report the rights and obligations of the above, and report to the Shanghai Stock Exchange

Filed with the Shanghai Stock Exchange. recorded.

Serial No. Work Content Implementation Status

The sponsor communicates on a day-to-day basis, regularly or indefinitely

3. Through daily communication, regular return visits, on-site visits, due diligence visits, on-site inspections, etc., to understand Zhongfu

Investigation and other methods to carry out continuous supervision work. The business situation of Shenying has carried out a support for Zhongfu Shenying

Continue to supervise the work.

During the period of continuous supervision, in accordance with the relevant regulations, the listed company will be in violation of the 2024 Zhongfu Shenying during the continuous supervision period

4. If a public statement is made on the violation of the law, it shall be disclosed to the sponsor institution that has not occurred in accordance with the relevant provisions before disclosure

Violations of laws and regulations reported by the Shanghai Stock Exchange and declared by the Shanghai Stock Exchange.

After the review, it will be announced in the designated media.

During the period of continuous supervision, the listed company or related parties appear

Violations of laws and regulations, breach of commitments and other matters shall be discovered by themselves

5. It shall be submitted to the Shanghai Securities 2024 Zhongfu Shenying within five working days from the date of discovery

The report of the securities exchange includes that the listed company has not violated the law or violated the commitment.

Matters such as violations of laws and regulations, breach of promises, etc., are related to the parties

the specific circumstances, the supervisory measures taken by the sponsor, etc.

In 2024, the sponsor will supervise Zhongfu Shenying

Supervise listed companies and their directors, supervisors, senior managers and their directors, supervisors and senior managers to comply

6. Abide by laws, regulations, departmental rules and Shanghai Securities Exchange laws, regulations, departmental rules and Shanghai Stock Exchange

Business rules and other normative documents issued by E-Firm, and business rules and other normative documents issued by E-Firm

Earnestly implement the commitments it has made. document, earnestly fulfilling the commitments it has made

Promise.

Supervise listed companies to establish, improve and effectively implement corporate governance, and sponsor institutions to supervise Zhongfu Shenying in accordance with relevant regulations

7. Management system, including but not limited to the general meeting of shareholders and the board of directors, shall establish and improve the corporate governance system, and strictly enforce it

Rules of Procedure of the Board of Supervisors and Corporate Governance System for Directors, Supervisors and Senior Management.

Code of conduct for personnel, etc.

Supervise listed companies to establish, improve and effectively implement the internal control system of the sponsor institution for Zhongfu Shenying

degree, including but not limited to financial management system, accounting design, implementation and effectiveness were verified

8 system and internal audit system, as well as the use of raised funds, and the internal control system of Fushenying comply with relevant laws and regulations

Related party transactions, external guarantees, foreign investments, and derivatives transactions have been effectively implemented to ensure the company

Standardized operation of procedures for major business decisions such as control of subsidiaries.

with rules, etc.

Supervise listed companies to establish, improve and effectively implement information disclosures

Expose the system, review the information disclosure documents and other relevant documents The sponsor urges Zhongfu Shenying to strictly implement the letter

9 cases, and there are sufficient reasons to believe that the listed company has disclosed information to the Shanghai securities disclosure system, reviewed the information disclosure documents and it

The documents submitted by the exchange do not contain false records or misleading other related documents.

Statements or material omissions.

Information disclosure documents for listed companies and to the China Securities Regulatory Commission

and other documents submitted by the Shanghai Stock Exchange

Review before and supervise the problematic information disclosure documents in a timely manner

urge the company to correct or supplement, and the company will not correct or supplement

shall report to the Shanghai Stock Exchange in a timely manner; On the sponsor's information disclosure document to Zhongfu Shenying

10. If the information disclosure documents of the municipal company have not been reviewed in advance, they have been reviewed, and if they do not exist, they should be submitted to Shanghai in a timely manner

The issues that should be reported to the stock exchange five times after the listed company fulfills its information disclosure obligations.

Within a few days, complete the review of the relevant documents and save them

The information disclosure documents in question should be supervised in a timely manner

The company shall correct or supplement, and the listed company shall not correct or supplement

shall report to the Shanghai Stock Exchange in a timely manner.

Pay attention to the listed company or its controlling shareholder, actual controller, 2024, Zhongfu Shenying and its controlling shareholder,

11. Directors, supervisors and senior management personnel are subject to the actual controller, directors, supervisors and senior management of the China Securities Regulatory Commission

Administrative punishment, disciplinary action of the Shanghai Stock Exchange, or the person being subjected to such matters did not occur.

Serial No. Work Content Implementation Status

The Shanghai Stock Exchange issued a letter of regulatory concern, and

Supervise and urge them to improve the internal control system and take measures to rectify it

Correct.

Continue to pay attention to listed companies and their controlling shareholders and actual controllers In 2024, Zhongfu Shenying and its controlling shareholders,

12. In the case of the performance of commitments, the listed company, its controlling shareholders and actual controllers do not fail to fulfill their commitments

If the actual controller fails to fulfill the commitment, the situation shall be reported in a timely manner.

Report of the Sea Stock Exchange.

Pay attention to the reports of listed companies in the public media, and be timely in time

Verify market rumors. After verification, it was found that the listing company in 2024 was verified by the sponsor and resumed

13. The company should disclose undisclosed material matters or disclose the non-existence of the eagle should be traded with Shanghai Securities in a timely manner

If the information is inconsistent with the facts, the listed company shall be urged to report the problem in a timely manner.

disclose or clarify; Listed companies do not disclose or clarify

If it is clear, it shall be reported to the Shanghai Stock Exchange in a timely manner.

If one of the following circumstances is discovered, the listed company shall be urged to make a statement

Clarify and make corrections within a time limit, and report to the Shanghai Stock Exchange at the same time

(1) Suspected breach of the Listing Rules and other related businesses

Rules; (2) Issued by the securities service institution and its signatories

14 Professional opinions may contain false records and misleading statements In 2024, Zhongfu Shenying did not have relevant circumstances

or material omissions and other violations of laws and regulations or other improper circumstances.

Shape; (3) Article 71 of the Sponsorship Measures,

the circumstances provided for in Article 72; (4) The company does not cooperate

continue to supervise the work; (5) Shanghai Stock Exchange or sponsors

Other circumstances that are considered to be reportable.

Formulate a work plan for on-site inspections of listed companies, and make it clear that the sponsor has formulated relevant on-site inspections

15. On-site inspection work requirements, ensure the quality of on-site inspection work work plan, and clarify the on-site inspection work requirements

Measure. disclosed the 2024 annual continuous supervision work

On-site inspection report.

In the event of any of the following circumstances in a listed company, the sponsor institution,

The sponsor representative shall know or should have known from the date on which he or she should have known

Conduct special on-site verification within 15 days; (1) The presence of weight

suspicion of major financial fraud; (2) The controlling shareholder and actual control In 2024, Zhongfu Shenying does not need to be specialized

16 persons, directors, supervisors or senior management personnel suspected of embezzlement of on-site inspections.

interests of listed companies; (3) There may be major violations

Protect; (4) There are material differences in capital transactions or cash flows

Often; (5) The Shanghai Stock Exchange or the sponsor institution believes

Other matters that should be subject to on-site verification.

3. Problems found by the sponsor and the sponsor representative and the rectification situation

In 2024, the sponsor and the sponsor representative did not find any major problems with Zhongfu Shenying.

4. Major risk matters

(1) The risk of a significant decline in performance or loss

During the reporting period, the company's performance declined and the net profit was negative, mainly due to the imbalance between supply and demand in the carbon fiber industry, the downstream demand was lower than expected and the continuous decline in product sales prices, and the operating income was attributable to shareholders of listed companies

Financial indicators such as net profit, net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses, and basic earnings per share decreased significantly compared with the same period last year. The company's performance is affected by macro environmental factors such as macroeconomy, industrial policy, and industry competition, as well as factors such as the company's technology research and development, product marketing and downstream market demand. If the market demand for the company's existing main products declines in the future, the market competition intensifies or the scale effect does not gradually appear as expected, and the company fails to expand the new application market in time, the company's operating income and net profit will face the risk of decline. In the future, the company will continue to improve product competitiveness and management capabilities to cope with the above-mentioned possible adverse factors.

(2) Core competitiveness risks

The carbon fiber industry has significant technology-intensive characteristics, and the domestic carbon fiber technology upgrade is mainly concentrated in more

High strength (e.g., T1200 class) and higher modulus (e.g., M55X class, M65J class), and higher

R&D and engineering application of carbon fiber preparation processes for preparation efficiency (e.g., high-speed spinning and large tows). The development of the company's main business and the maintenance of competitive advantages depend on the company's high-performance carbon fiber technology and industrial application. At present, the main risk of technological upgrading lies in the relatively strong R&D foundation of enterprises in developed countries such as Europe, America and Japan, and their R&D investment, new product incubation speed, product performance and quality improvement speed have certain advantages.

(3) Operational risks

1. Industrial policy risk

The carbon fiber manufacturing industry in which the company is located belongs to the field of new materials, which plays an important supporting role in the development of relevant national strategic industries. In recent years, the state has continuously introduced industrial policies and technical support policies, which have played a positive guiding role in the development of the industry and promoted the rapid development of enterprises. If there are major adverse changes in the national industrial policy in the future, the company's market space and development prospects may be affected, which may bring risks to the company's operating conditions and profitability.

2. Raw material and energy price fluctuation risk

The main raw materials and energy sources for the company's carbon fiber production include acrylonitrile, natural gas, electricity, steam, etc. Acrylonitrile is a petrochemical product, and the market price is greatly affected by the fluctuation of international oil prices. The prices of natural gas, electricity, and steam are regulated and controlled by the government, and the prices are relatively stable. If the prices of the company's main raw materials and energy rise significantly in the future, it may adversely affect the company's operating results.

(4) Financial risks

1. Performance fluctuation risk

The company's profitability is affected by various factors such as macroeconomy, market environment, industrial policy, industry competition, company operation and management, and project construction progress. If there are significant changes in the above factors in the future, the company's product demand may be adversely affected, and the company's operating income, net profit, operating cash flow and other operating results will face the risk of decline.

2. The risk of relying on government subsidies and tax incentives

The preferential income tax policies and government subsidies enjoyed by the company have improved the company's operating performance, and if the national tax policy changes in the future, the company will not be recognized as a high-tech enterprise again or unable to obtain new government subsidies, which will have a certain impact on the company's operating performance.

3. Risk of fluctuation in gross profit margin

With the changes in the market situation and the release of domestic carbon fiber production capacity, the changes in the supply and demand relationship of the carbon fiber market will affect the company's bargaining power, and at the same time, with the changes in market supply and demand, industry competition, international situation and other factors, the company has the risk of gross profit margin fluctuations.

(5) Macro environmental risks

During the reporting period, the company's industry has a high correlation with the national macroeconomic policy and industrial policy, and the change of the national macroeconomic situation or the adjustment of the industrial policy orientation may lead to the volatility of the downstream market, which will have an impact on the company's future operation.

5. Major violations

In 2024, there will be no major violations in Zhongfu Shenying.

6. Reasons and reasonableness of changes in major financial indicators

(1) Main accounting data

Unit: 10,000 yuan

This reporting period compares

Key accounting data 2024 2023 Year-on-year increase

Less (%)

Operating income 155,731.06 225,913.03 -31.07

Attributable to shareholders of listed companies -12,438.39 31,798.13 -139.12

net profit

The deduction has nothing to do with the main business

business income and do not have 154,334.75 224,276.69 -31.19

After the income of the business substance

Operating income

attributable to shareholders of listed companies

-18,478.95 23,761.11 -177.77

net profit

Cash from operating activities 54,003.51 24,362.08 121.67

Net traffic

At the end of the reporting period

Key accounting data End of 2024 End of 2023 Last year compared to the end of the previous year

Increase/decrease (%)

Attributable to shareholders of listed companies 462,527.97 484,506.36 -4.54

net worth

Total assets 935,737.21 953,619.49 -1.88

(2) Main financial indicators

This reporting period is comparative

Key Financial Indicators 2024 2023 Year-on-year increase or decrease

（%）

Basic earnings per share (RMB/share) -0.14 0.35 -140.00

Diluted earnings per share (RMB/share) -0.14 0.35 -140.00

Basic earnings per share after deducting non-recurring gains and losses were -0.21 0.26 -180.77

Profit (RMB/share)

Weighted average return on equity (%) -2.63 6.73 decreased by 9.36 hundred

Equinox

The weighted average net after deducting non-recurring gains and losses was -3.91 5.03 a decrease of 8.94 hundred

Return on Assets (%) points

Ratio of R&D investment to operating income (%) 12.22 9.67 Increase by 2.55 hundred

Equinox

(3) Explanation of the main accounting data and financial indicators

1. Operating income decreased by 31.07% year-on-year, and the operating income after deducting business income unrelated to the main business and income without commercial substance decreased by 31.19% year-on-year, mainly due to the reduction of product prices.

2. The net profit attributable to shareholders of listed companies decreased by 139.12% year-on-year, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses decreased by 177.77% year-on-year, mainly due to the reduction of carbon fiber prices, the provision for impairment of accounts receivable and inventory, and the capitalization of interest to expense of the full production of Shenying Xining and Shenying Shanghai projects.

3. Net cash flow from operating activities increased by 121.67% year-on-year, mainly due to increased sales in the current period

The strength of payment collection is caused by the reduction of procurement expenditure.

4. Basic earnings per share, diluted earnings per share and basic earnings per share after deducting non-recurring gains and losses decreased by 140%, 140% and 180.77% year-on-year, mainly due to the decrease in net profit for the period.

Seventh, the changes in core competitiveness

(1) Analysis of core competitiveness

1. Technical advantages

Zhongfu Shenying continues to innovate in carbon fiber manufacturing technology, and has completed the full coverage of polyacrylonitrile-based carbon fiber commercializable products, with 20 series of carbon fiber products, and can carry out product differentiated design for application fields. In the continuous breakthrough in technology, with a full set of equipment intelligent management system, energy monitoring and management system, carbon fiber intelligent storage system and other industrialization technologies under the scale of 10,000 tons, and on the basis of the scale of industrialization, dig deep into the potential of cost reduction, explore the method of fine control of each unit consumption value under the scale of 10,000 tons, and mature master of 10,000 tons

The core industrialization technology of carbon fiber preparation. As of the end of December 2024, the company has obtained a total of 59 issuances

Ming patents, 259 utility model patents, 1 design patent authorized.

2. Talent advantage

The company has always adhered to the values and sense of responsibility of "winning glory for the motherland and fighting for the nation" to cultivate talents, adhered to the principle of party management of cadres and party management of talents, deeply promoted and implemented the strategy of "strengthening the enterprise with talents", made overall use of various resources, and discovered, identified and cultivated outstanding talents through multiple channels and fields. In order to better introduce, cultivate and make good use of talents, maximize the vitality of talent innovation, focus on enterprise development strategy, strengthen the cultivation of key talents, introduce urgently needed talents, make up for the shortcomings of talent development, innovate talent incentive policies, continue to improve the treatment of talents, carry out top-level deployment for the construction of talent teams, and comprehensively create an enterprise employment environment that respects talents, is open and equal, knows people and makes good use of them, is appropriately treated, and has perfect incentive means. It has built a talent matrix with leading scientific and technological talents as the first echelon, young scientific and technological talents and technical backbones as the backbone, providing high-quality talent support for Zhongfu Shenying carbon fiber technology research, and at the same time, the company has independently cultivated a professional compound talent team with a solid theoretical foundation and rich industrialization experience in the field of carbon fiber. The company encourages scientific and technological personnel to innovate and create in scientific research, sets up a separate salary system for R&D personnel, sets up post allowances for R&D personnel, reforms the distribution mechanism, actively improves the professional title evaluation system, opens up and broadens the promotion channel for technical positions, and establishes a scientific research performance evaluation system with positive incentives as the core.

The company has 1 winning team of the first prize of the National Science and Technology Progress Award and 1 innovation team in key areas of the Ministry of Science and Technology

In addition, many core members of the team have been selected for national awards such as the National Key Talent Program, the State Council Special Allowance Expert, and the China Youth Science and Technology Award, as well as the provincial and ministerial talent training programs such as the "333 Project" in Jiangsu Province and the "Kunlun Plan" in Qinghai Province.

3. Product advantages and scale advantages

As of the end of the Reporting Period, the Company's annual carbon fiber production capacity was 28,500 tons, of which 3,500 were at the Lianyungang Dapu base

tons, Condor Xining 25,000 tons. The products cover 20 product series, including high-strength standard model, high-strength medium model, high-strength and high-strength model, and more than 40 product models, with product specifications covering 1K-48K. During the reporting period, SYT70, SYM40, SYM40X, SYM46, SYM46X and other products were used in aerospace, high-end sports, electronic 3C and other markets; At the same time, a variety of high-strength and medium-model products have been customized and developed for the field of pressure vessels, and have passed the four-type bottle production qualification certification and type certification; Breaking the traditional solutions in the carbon/carbon field, we innovatively launched differentiated products with high elongation and low cost, built product competition barriers, and helped carbon ceramic brake discs be applied to mass production models in batches; The innovatively developed 48K large tow products have been successfully applied to 147-meter wind turbine blades and other fields, and the SYT49S products have been used in the Changtai Yangtze River Bridge, the world's largest span of road and railway. Through customized and differentiated product structure, the company's brand influence is increasing day by day.

4. Management advantages

The company has always been guided by the service market, giving full play to the efficiency of "three fine management", comprehensively reshaping organizational functions, building a full-life cycle intelligent quality management model, creating an accurate and efficient assessment and incentive mechanism, and driving the transformation of organizational efficiency. Based on the refinement of the organization, from the concept to the thinking, from the organization to the process, from the way to the means, the effective coordination of production, transportation and marketing, the integration of human, financial and material resources, in-depth reform and innovation; With the refinement of management as the starting point, we will make good use of the special action toolbox of double hundred enterprises, benchmarking world-class, and state-owned enterprise reform, and organically combine the governance dimension, technical dimension and management dimension to form a flexible and efficient management model that adapts to the characteristics of the industry and meets the needs of competition; With the purpose of lean operation, we strengthen production cost control, refine business processes, and achieve optimal allocation of resources, so as to provide a strong guarantee for the rapid development of the company. The company has successively won the first prize of the National Science and Technology Progress Award, the Commendation Award of the China Industry Award, the National Specialized and New "Little Giant", the Single Champion Enterprise of the Manufacturing Industry, the Silver Award of the China Patent Award, etc., and Shenying Xining has won the Qinghai Science and Technology Little Giant Enterprise and the Qinghai Green Manufacturing Enterprise.

5. Advantages of green development

The company has always rooted the concept of ecological civilization in every subtlety of sustainable development, taking into account economic, social and ecological benefits. Strengthen process innovation and accelerate the improvement of resource recycling efficiency and energy

The cascade utilization level reduces energy consumption and material consumption to create a circular economy; Optimize the energy structure, make three-dimensional use of plant resources, and build a clean, low-carbon, safe and efficient energy system; Create green products and promote the low-carbon development of the industry value chain. In 2024, the company's comprehensive energy consumption per unit of product will decrease by 4% year-on-year, and it has won the highest level of ecological environmental protection credit "Green Environmental Protection Credit" for four consecutive years, and the "Enterprise Environmental Protection Quality Award" for two consecutive years, and has been rated as a provincial and national green factory enterprise.

(2) Changes in core competitiveness

In 2024, there will be no major changes in the core competitiveness of Zhongfu Shenying.

8. Changes in R&D expenditure and R&D progress

(1) Changes in R&D expenditure

Unit: 10,000 yuan

Project 2024 2023 Increase/Decrease

Expensed R&D investment 17,671.08 20,574.96 -14.11

Capitalized R&D investment 1,351.55 1,273.28 6.15

The total R&D investment was 19,022.63 21,848.24 -12.93

The total R&D investment accounted for 12.22 9.67 of operating revenue, an increase of 2.55 percentage points

Proportion (%)

The proportion of capitalization of R&D investment increased by 1.27 percentage points from 7.10 to 5.83

（%）

Note: The change in the proportion of capitalization of R&D investment is mainly due to the phased breakthrough in the development and application research project of Shenying Shanghai T800 carbon fiber prepreg.

(2) R&D progress

1. R&D achievements made during the reporting period

During the reporting period, the company and its subsidiaries carried out relevant research work in technical fields such as further improvement of carbon fiber performance, more prominent industrialization advantages, and aviation-grade high-end applications, and achieved phased results. At the same time, the company continued to carry out the layout of intellectual property rights, and the company and its subsidiaries applied for 269 new patents, including 166 invention patents.

103 utility model patents; 107 new authorized patents, including 12 invention patents and utility models

Leigh 95 pcs.

During the reporting period, the intellectual property rights applied for and obtained by the Company and its subsidiaries are as follows:

Item New in the current period Cumulative quantity

Number of applications (pcs) Number of acquisitions (pcs) Number of applications (pcs) Number of acquisitions (pcs)

Patents for invention 166 12 421 59

Utility model patents 103 95 359 259

Design patent 0 0 1 1

Software copyright 0 2 5 5

Total 269 109 786 324

2. Research projects

Unit: 10,000 yuan

Serial No. Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Stages Target Achieved Technical Level Specific Application Prospects

Scale, Amount, Amount, Segmental Results

Conquer the key preparation of T1200 grade carbon fiber in aerospace, pressure capacity

1 T1200 grade carbon fiber key preparation technology 2,023.50 53.92 53.92 technical research technology, product tensile strength domestic leading equipment, sports and leisure and other fields

The technical research ≥ 8000MPa, and the tensile modulus has broad application prospects.

≥315GPa。

Conquer the key preparation of T1100 grade carbon fiber

technology, product elongation strength in aerospace and other high-end

2 Dry Jet Wet Spinning T1100 Carbon Fiber Worker 10,673.50 2,023.44 3,474.94 Pilot stage ≥7000MPa, tensile modulus ≥ It has a wide range of applications in the leading field in China

The program development and application verification is 324GPa, and the elongation at break is ≥2%. shape foreground.

into a resin that matches T1100 carbon fiber

Technical system.

Initially establish a suitable SYT55G aviation pre-aerospace and low-altitude economy

3 T800 carbon fiber prepreg development and 10,482.00 2,520.82 7,291.09 industrialization stage of the evaluation system for the application of dip materials, the development of domestic leading economy, sports and leisure and other fields

The application research project T800 grade carbon fiber prepreg and the realization of the production has broad application prospects.

Industrialization.

Complete the finalization and heat of the high-temperature system production process

Plastic prepreg material formula stereotype, medium temperature tree in the aerospace field

4 R&D and manufacturing of carbon fiber aviation application 7,843.00 953.06 2,305.64 Pilot stage Establishment of lipid formula and localization of dry fiber equipment Leading in China It has broad application prospects.

Scheme design, accelerate the promotion of domestic composite materials

Applications on large aircraft.

M46J and M50J grade high modulus carbon Development of M46J, M50J grade high modulus carbon in aerospace, key industry

5 Fiber development 1,295.00 670.48 1,185.72 Industrialization stage Fiber products and engineering. The domestic leading industry and other fields have a broad field

Application prospects.

Achieve high efficiency and low efficiency of 48K large tow carbon fiber

Cost engineering preparation, tensile strength of the product

6 Dry-jet wet-spun 48K large tow carbon fiber 14,583.50 2,746.45 5,249.98 Industrialization stage ≥4500MPa, tensile modulus world-leading in wind power generation and other fields

Engineering development and application verification ≥ 240GPa, elongation at break ≥ 1.9%. It has broad application prospects.

Formed to match with 48K large tow carbon fiber

resin technology system.

Serial No. Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Stages Target Achieved Technical Level Specific Application Prospects

Scale, Amount, Amount, Segmental Results

Large-diameter carbon fiber engineering preparation technology to establish large-diameter high-strength medium-mold carbon fiber stability in aerospace, pressure capacity

7 Technical research 18,257.38 484.39 681.94 Small-scale test stage The technical system of manufacturing and the development of large-diameter domestic leading equipment have a wide range of fields

Carbon fiber products and realize industrialization. Application prospects.

Conquering 600m/min high-speed dry-jet wet-spinning carbon is improving production capacity, reducing costs and increasing costs

8 600m/min high-speed dry-jet wet-spinning carbon 788 192.74 192.74 Small-scale test stage Fiber precursor preparation technology, the core solution of poly domestic leading efficiency and other aspects have made great achievements

Fiber precursor preparation technology, precursor production process and precursor wool.

Silk and other problems.

It can promote high-temperature resistant thermoplastics

Development of carbon fiber composites suitable for PA or PEEK resin systems

9 Research on the application of carbon fiber thermoplastics 200 66.62 228.71 Thermoplastic sizing agent in the industrialization stage. Leading in the country in aerospace, weapons and equipment

A wide range of fields should be prepared

Use.

Developed two dry-jet wet-spun photovoltaic-grade carbon fibers

Dimension, SYT45T-12K carbon fiber product pull

Development of dry-jet wet-spun photovoltaic-grade carbon fiber with an elongation strength of 4500MPa and tensile modulus There are many in the photovoltaic field

10 and application promotion 1,560.00 647.45 647.45 Pilot stage 210GPa, elongation at break 2.1%; Leading domestic application.

SYT49T-12K carbon fiber product stretch

Strength 4900MPa, tensile modulus

210GPa, elongation at break 2.3%.

Development of on-board high-pressure hydrogen storage cylinders for on-board high-pressure hydrogen storage

11 High strength and high elongation medium module for hydrogen energy 3,420.00 1,029.94 1,029.94 Pilot stage Carbon fiber, product tensile strength > domestic leading It has a wide range of applications in the field of bottles

The amount of carbon fiber material is developed at 5800MPa, and the tensile modulus is > prospect.

260GPa, elongation at break > 2.2%.

Achieve stable and efficient T800-grade carbon fiber

T800 grade carbon fiber large-scale production preparation, product tensile strength inter-batch discrete system in aerospace, pressure capacity

12 Technological improvement 13,550.00 7,128.18 20,643.35 Industrialization stage The number of ≤5%, the inter-batch dispersion coefficient of tensile modulus is the leading domestic device, photovoltaic and other fields

≤3%, the inter-batch dispersion coefficient of linear density has broad application prospects.

≤3%。

Through the implementation of this project, continuous and stable recycling in energy saving, emission reduction, and saving

13 Refinement of DMSO recovery process 3,396.90 505.13 505.13 Small-scale test stage Solvent production quality and yield. Leading the cost in China and improving the recovery of solvent products

quality, lifting recovery system connection

Serial No. Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Stages Target Achieved Technical Level Specific Application Prospects

Scale, Amount, Amount, Segmental Results

There are aspects of continuous and stable operation

Larger effect.

Total / 88,072.78 19,022.62 43,490.55 / / / /

Note: According to the test progress of the research project, the company will adjust the budget cost of some experimental projects.

9. Whether the progress of the new business is consistent with the disclosure of the previous information (if any)

Not applicable.

10. The use of the raised funds and whether they are compliant

(1) The basic situation of the funds raised

1. The receipt of raised funds

On February 22, 2022, the China Securities Regulatory Commission (CSRC) issued the "Concerning the Consent of Zhongfu Shenying

The approval of the registration of the initial public offering of shares of Carbon Fiber Co., Ltd. (Zheng Jian Xu Xu [2022] No. 337) agrees to the registration application of the company's initial public offering of shares. The Company's initial public offering of 100,000,000.00 RMB ordinary shares (A shares) at an issue price of RMB 29.33 per share, raising a total of RMB 2,933,000,000.00, after deducting the total issuance expenses of RMB 156,316,042.62 (excluding tax), the actual net amount of funds raised was RMB 2,776,683,957.38. The above-mentioned raised funds have been fully received on March 30, 2022, and Baker Tilly International Accounting Firm (Special General Partnership) has raised funds for this offering

The receipt of the raised funds was verified, and the "Capital Verification Report" was issued on March 30, 2022 (day

Occupation Zi [2022] No. 19872).

2. The amount of funds raised and the balance at the end of the period

As of December 31, 2024, the use of proceeds from the Company's initial public offering of shares:

Unit: Yuan

Project amount

The actual amount of funds raised was 2,787,050,000.00

Less: Other issuance expenses paid 10,366,042.62

Replacement of funds invested in the project in advance 1,102,864,694.13

Replenishment of liquidity 450,000,000.00

Expenditure on direct investment projects was 621,219,375.41

Expenditure on the purchase of wealth management products was 11,722,000,000.00

Handling fee 82,876.36

771,503.45 of the fund-raising and investment projects were completed

Plus: Interest income 35,399,346.70

Income from redemption of wealth management products 11,312,000,000.00

Wealth management product income 36,992,797.05

As of December 31, 2024, the balance of the raised funds account was 264,137,651.78

(2) Whether the use of raised funds is compliant

The deposit and actual use of the raised funds in 2024 are in line with the Company Law and the Securities Law

The provisions and requirements of laws and regulations such as the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies and the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, etc., the company has carried out special account storage and special use of the raised funds, and has fulfilled the obligation of relevant information disclosure in a timely manner, and there is no disguised change in the use of the raised funds and damage to the interests of shareholders. There is no violation of relevant laws and regulations in the use of raised funds.

11. Shareholding, pledge, freezing and reduction of shareholdings, pledges, freezes and reductions of controlling shareholders, actual controllers, directors, supervisors, senior management personnel and core technical personnel

1. As of the date of issuance of this continuous supervision and tracking report, the company's controlling shareholders, actual controllers, directors, supervisors, senior management personnel and core technical personnel hold the company's shares (excluding the initial strategic placement) as follows:

Unit: 10,000 shares

Name Relationship with the company Number of direct shares Indirect number of shares Indirect number of shares Held Total number of shares

Appointment

China Building Materials Union

Investment Co., Ltd. Controlling shareholder 29,839.93 - - 29,839.93

manage

Jian Zhang, Chairman - - - - -

Zhang Siwei Vice Chairman - 622.25 Eagle Tour Group 622.25

Vice Chairman

Chen Yu (outgoing), - - - - -

director

Xue Zhongmin Director - - - -

Ge Haitao Director - 124.45 Eagle Tour Group 124.45

Liu Fang Director, General Manager - - -

reason

Liu Quan, Independent Director - - - -

Yang Pingbo Independent Director - - - -

Shao Leilei Independent Director - - - -

Pei Hongyan Chairman of the Board of Supervisors - - - -

Liu Jie Supervisor - - -

Liu Dong Employee Supervisor - - -

Name Relationship with the company Number of direct shares Indirect number of shares Indirect number of shares Held Total number of shares

Appointment

Deputy General Manager,

Chen Qiufei Core Technologist - - - -

member

Deputy General Manager,

Xi Yusong, Core Technologist - 124.45 Eagle Travel Group 124.45

member

Li Wei Deputy General Manager - - - -

Deputy General Manager,

Jin Liang Secretary of the Board of Directors - - - -

Books, core skills

Operatives

Deputy General Manager,

Lianfeng Core technical person - - - -

member

Wang Nuan, Deputy General Manager, - - - - -

Chief Financial Officer

Assistant to the General Manager

Guo Pengzong, core skills - - -

Operatives

Assistant to the General Manager

Guo Pengzong, core skills - - -

Operatives

Chairman of the Board (off

Zhang Guoliang Ren), Core - 12,470.64 Eagle Tour Group 12,470.64

Technical personnel

Director (off

Luo Haoyu Ren), Vice President - - - -

Manager (off

Ren)

Sun Zhengming Independent Director - - - -

(Departed)

Li Junpeng Employee Supervisor - - - -

(Departed)

Note: China National Building Materials Group Co., Ltd., the actual controller of the company, controls a total of 57.26% of the shares of Zhongfu Shenying through China National Building Materials United Investment Co., Ltd. and China Composite Materials Group Co., Ltd.

2. Senior managers and core employees set up special asset management plans to participate in the initial public offering, strategic placement, holding and changes are shown in the following table:

Unit: shares

Refinancing is included

Shareholders/Holdings: Allotted Shares/Deposits: During the reporting period, Shares/Depositary Receipts were issued at the end of the reporting period

Name of person Number of trust certificates Number of increases or decreases Number of changes Held The number of certificates held at the end of the period

quantity

Liu Fang 2,033,897 -1,911,876 - N/A

Luo Haoyu 677,967 -637,290 - N/A

Refinancing is included

Shareholders/Holdings: Allotted Shares/Deposits: During the reporting period, Shares/Depositary Receipts were issued at the end of the reporting period

Name of person Number of trust certificates Number of increases or decreases Number of changes Held The number of certificates held at the end of the period

quantity

Xi Yusong 677,967 -637,290 - N/A

Li Wei 847,457 -796,611 - N/A

Chen Qiufei 847,467 -796,626 - Not applicable

Jin Liang 677,981 -637,307 - N/A

Lianfeng 677,967 -637,290 - N/A

Wang Nuan 338,979 -318,641 - N/A

Liu Xuandong 847,457 -796,611 - N/A

Zhang Gangyi 169,489 -159,320 - N/A

Zhangjiahao 677,967 -637,290 - Not applicable

Guo Pengzong 338,979 -318,641 - N/A

Sun Xiaohan 338,979 -318,641 - Not applicable

Xia Xinqiang 338,979 -318,641 - N/A

Pei Huai Zhou 338,979 -318,641 - Not applicable

Chen Bo 169,489 -159,320 - N/A

Total 10,000,000 -9,400,036 - -

The company's senior management and core employees participated in the special plan set up by the strategic placement of the initial public offering, and the employees of Huajin Securities-China Merchants Bank-Huajin Securities Zhongfu Shenying participated in the strategic placement and collective asset management of the Science and Technology Innovation Board

The program has been released from sale restrictions and listed for circulation on April 6, 2023. In 2024, the special plan has been reduced

9,400,036 shares. As of December 31, 2024, the remaining holdings of the special plan are 0 shares.

In addition to the above, as of December 31, 2024, the company's controlling shareholders, actual controllers and directors

There are no other pledges, freezes and reductions of the company's shares held by supervisors, senior managers and core technical personnel.

12. Other matters that the sponsor institution deems necessary to express its opinions

As of the date of issuance of this continuous supervision and follow-up report, there are no other matters that the sponsor believes should be expressed.

(No text below)

(There is no text on this page, it is the signature page of the "Guotai Junan Securities Co., Ltd. on the 2024 Continuous Supervision and Tracking Report of Zhongfu Shenying Carbon Fiber Co., Ltd.")

Sponsor Representative:

Ran Zhouzhou, Liu Yiping

Guotai Junan Securities Co., Ltd

April 2025