Zhejiang Zhonghe Technology Co., Ltd.
Announcement on Terminating Part of Fundraising Projects and Permanently Supplementing Working Capital with Remaining Raised Funds
The company and its board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false representations, misleading statements, or material omissions.
Zhejiang Zhonghe Technology Co., Ltd. (hereinafter referred to as "the Company" or "Zhonghe Technology") held the 23rd meeting of the 9th Board of Directors on July 27, 2026, and reviewed and approved the "Proposal on Terminating Part of Fundraising Projects and Permanently Supplementing Working Capital with Remaining Raised Funds." In accordance with the "Supervisory Rules for the Management of Raised Funds by Listed Companies," "Guiding Opinions No. 1 for Self-Regulation of Main Board Listed Companies" by the Shenzhen Stock Exchange, and other relevant regulations, this proposal needs to be submitted to the company's shareholders' meeting for review. The specific situation is hereby announced as follows:
I. Basic Situation of the Company's Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval on Zhejiang Zhonghe Technology Co., Ltd. Issuing Shares to Specific Objects" (Securities Regulatory Permit (2023) No. 2810), the company issued 130,209,496 ordinary shares of RMB 1.00 par value each (RMB, currency denomination same as below) to specific objects at an issuance price of RMB 5.25 per share. The total amount of raised funds from this issuance was RMB 683,599,854.00. After deducting issuance expenses (excluding VAT) of RMB 9,655,741.52, the net amount of raised funds is RMB 673,944,112.48. All of the above raised funds have been received. Zhonghui Certified Public Accountants (Special General Partnership) audited the receipt of raised funds for this issuance and issued the "Capital Verification Report" (Zhonghui Audit [2024] No. 9379).
II. Fundraising Investment Projects and Fund Usage
As of June 30, 2026, the company has cumulatively invested RMB 29,244.98 million in fundraising investment projects for the issuance of shares to specific objects. The specific usage is as follows:
| Project Name | Total Investment | Planned Raised Funds Investment (A) | Cumulative Raised Funds Invested (B) | Investment Progress as of June 30 | Interest Income and Wealth Management Product Investment Income Less Handling Fees (C) | Temporary Working Capital Supplement Amount (D) | Remaining Raised Funds Account Balance as of June 30 (E=A-B+C-D) |
|---|---|---|---|---|---|---|---|
| Based on Self-Developed Chip Digital Twin Industrial Control Platform R&D and Industrialization Project | 41,096.06 | 18,761.08 | 5,434.28 | 28.97% | 348.45 | 0 | 13,675.24 |
| Key Technology R&D and Industrialization Project for Large Transportation Domain | 47,749.78 | 21,467.72 | 7,490.81 | 34.89% | 284.62 | 1,834.86 | 12,426.68 |
| Unmanned Sensing Technology R&D Project (Note 2) | 26,329.86 | 11,516.93 | 617.28 | 5.36% | 176.41 | 4,761.04 | 6,315.02 |
| Supplementary Working Capital | 15,648.69 | 15,648.69 | 15,702.61 | 100.34% | 57.58 | 0 | 3.66 |
| Total | 130,824.39 | 67,394.41 | 29,244.98 | - | 867.06 | 6,595.90 | 32,420.60 |
Note 1: As of June 30, 2026, the total unused raised funds for the company's fundraising investment projects is RMB 39,016.50 million (including net interest and income). Of this, RMB 32,420.60 million is in the dedicated raised funds account, and RMB 6,595.89 million is the idle raised funds temporarily used for supplementary working capital that has not yet been returned.
Note 2: The fundraising investment project proposed to be terminated this time is the "Unmanned Sensing Technology R&D Project." Before the remaining raised funds of this terminated project are permanently supplemented to working capital, the idle raised funds temporarily used for supplementary working capital that have not yet been returned will be fully returned to the dedicated raised funds account, and information disclosure obligations will be fulfilled in a timely manner.