Sinofibers to liquidate subsidiary, secures major sales contract

Sinofibers Technology has decided to liquidate and deregister its controlling subsidiary, Zhongjian New Materials Development (Changzhou) Co., Ltd., following a board meeting. This decision, aimed at optimizing resource allocation and reducing management costs, involves a connected transaction as Sinofibers Technology holds 51% equity in the subsidiary. The subsidiary has not substantially developed its operations beyond initial equipment purchases.

Concurrently, Sinofibers Technology announced a major sales contract with an undisclosed customer for carbon fiber and carbon fiber woven materials, totaling 562,957,081.70 yuan. This contract, a routine operating agreement, represents 69.34% of the company's audited operating revenue from the most recent fiscal year. As of September 30, 2025, 36,626.34 yuan of the contract has been fulfilled.

The liquidation is anticipated to simplify Sinofibers Technology’s financial reporting and operations without negatively impacting overall business development or profitability. The major sales contract is expected to significantly contribute to the company's operating performance.