Completion of Key Regulatory and Safety Procedures

The Company has finalized a rigorous, multi-month pre-commissioning inspection and rectification process, commonly referred to as the “Three Checks, Four Fixes” program in China’s plastics and chemical industries. This comprehensive assessment involved a systematic review and correction of various issues including:

• Design omissions
• Engineering quality concerns
• Potential safety hazards
• Incomplete construction tasks
• Operational risk factors

Each identified issue was meticulously addressed through clearly defined corrective measures, including assigned responsibilities and implementation timelines. This mandatory pre-commissioning program serves as a thorough “health check” prior to trial runs and formal commissioning of large-scale chemical manufacturing projects.

On December 10, 2025, Texxon also successfully submitted its Major Hazard Installation Safety Assessment Report to government authorities. The approval of this filing confirms that the Henan Polystyrene Factory meets national safety regulatory standards through extensive risk identification, assessment, and the application of control measures.

Regulatory Compliance and Operational Readiness

Additionally, Texxon's subsidiary, Henan Net Plastic Supply Chain Management Co., Ltd., has acquired the necessary Hazardous Chemicals Operating License, enabling the legal sale and distribution of polystyrene and associated regulated chemical products. This establishes a robust regulatory framework that supports both manufacturing operations and downstream commercial activities.

Management is optimistic that the completion of these safety procedures and regulatory approvals signifies a smooth transition from construction to the commissioning phase. The Company is poised to move forward with initial production and market delivery without any significant regulatory hurdles.

Enhanced Industrial Synergy and Operating Model

Upon successful commissioning, the Henan Polystyrene Factory is anticipated to enhance Texxon’s industrial synergy by merging upstream manufacturing capabilities with its established supply chain and digital distribution platform. This integrated manufacturing and digital supply chain platform is expected to:

• Improve operational control
• Increase responsiveness to customer demand
• Facilitate data-driven supply optimization

Management Insights on Future Growth

Mr. Hui Xu, Chief Executive Officer and Chairman of Texxon, stated: “The completion of these milestones marks a pivotal transition for the Company. The Henan Polystyrene Factory will shift our operating structure from a trading-focused model to an integrated approach combining supply chain services with manufacturing capabilities.”

He further added that the factory is projected to introduce manufacturing margins to the revenue mix, thereby enhancing overall gross margin structure and earnings quality. "Our long-term strategy is to support stable earnings growth rather than short-term capacity expansion,” Xu emphasized.

Company Overview: Texxon Holding Limited

Texxon Holding Limited is a leading provider of supply chain management services in the plastics and chemical industries across East China. Utilizing a technology-enabled platform, the Company offers a comprehensive array of services to small and medium-sized enterprises (SMEs), including:

• Procurement
• Shipping and logistics
• Payments and fulfillment

Through these services, Texxon aims to create the largest one-stop supply chain management platform for plastic and chemical raw materials in China, enhancing convenience, cost-efficiency, and overall process effectiveness.

Forward-Looking Statements

Forward-looking statements regarding the expected timeline, commissioning, and production of the Henan Polystyrene Factory involve known and unknown risks. Investors are encouraged to read the “Risk Factors” section of the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (SEC).