Dongyue Group has allocated nearly HK$200 million for improving the quality of PTFE, the green and intelligent transformation of tetrafluoroethylene production, and a pilot project for the production of tetrafluoropropylene.

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On the evening of August 4, 2025, Dongyue Group issued a announcement stating that it intended to reallocate the unspent proceeds from the placement, amounting to 191.9 million Hong Kong dollars, to improve the quality of PTFE, carry out green and intelligent upgrades to tetrafluoroethylene, and conduct pilot projects for the production of perfluoropropylene. The details are as follows: From December 31, 2024, to the date of this announcement, Dongyue Group has utilized approximately HK$56.8 million in net proceeds for the purposes specified in the annual report. As of the date of the announcement, the net amount of proceeds from the placement that remains unutilized was approximately 191.9 million Hong Kong dollars. Having considered that (1) other market participants have increased the supply of PVDF and PTFE products in their respective markets, resulting in a severe imbalance between supply and demand; this has in turn led to changes in the unit prices of such products. Consequently, the return on the Group’s prior investments in these production lines has fallen short of expectations ； (2) Given the anticipated development of the market for high-end fluoropolymer materials and new coolants, the Board has resolved to change the intended use of the unutilized net proceeds. Shandong Dongyue Group stated that the aforementioned changes do not affect the use of the net proceeds, and will enable the Company to allocate its financial resources more efficiently. In the long run, this is expected to improve the Group’s operating performance, thus serving the overall interests of the Group and its shareholders. The company will provide its shareholders with updates on the progress regarding the use of the unutilized net proceeds through disclosures in its future annual reports. The company will issue further announcements in a timely manner in accordance with the listing rules and other applicable laws.