CICC's Audit Opinion on Zhejiang Zhonghe Technology Co., Ltd.'s Termination of Partial Fundraising Projects and Permanent Supplement of Remaining Funds to Working Capital
CICC Securities Co., Ltd. (hereinafter referred to as "CICC Securities" or "Sponsor") is the sponsor for Zhejiang Zhonghe Technology Co., Ltd. (hereinafter referred to as "Zhonghe Technology" or "the Company") for its private placement of shares. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Supervision Rules for the Management of Raised Funds of Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," CICC Securities has prudently reviewed the matter of Zhonghe Technology terminating part of its fundraising projects and permanently supplementing the remaining raised funds to working capital. The details and audit opinion are as follows:
I. Basic Situation of the Company's Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Zhejiang Zhonghe Technology Co., Ltd.'s Private Placement of Shares" (Zheng Jian Xu Ke [2023] No. 2810), Zhejiang Zhonghe Technology Co., Ltd. issued 130,209,496 ordinary shares of RMB (A shares) at a par value of RMB 1.00 per share (RMB, same currency below) and an issue price of RMB 5.25 per share. The total amount of raised funds was RMB 683,599,854.00. After deducting issuance expenses (excluding VAT) of RMB 9,655,741.52, the net amount of raised funds was RMB 673,944,112.48. All of the above raised funds have been received in full. Zhonghui Certified Public Accountants (Special General Partnership) audited the receipt of the raised funds for this issuance and issued the "Capital Verification Report" (Zhong Hui Hui Yan [2024] No. 9379).
II. Raised Funds Investment Projects and Fund Usage
As of June 30, 2026, the cumulative investment in the fundraising projects for the private placement of shares by Zhonghe Technology Co., Ltd. was RMB 29,244.98 million. The specific usage is as follows:
| Seq. | Project Name | Total Project Investment | Raised Funds Proposed Investment (A) | Raised Funds Cumulative Investment (B) | Investment Progress as of June 30, 2026 | Interest Income and Wealth Management Product Investment Income Less Handling Fees (C) | Temporary Working Capital (D) | Remaining Raised Funds Account Balance as of June 30, 2026 (E=A-B+C-D) |
|---|---|---|---|---|---|---|---|---|
| 1 | Digital Twin Industrial Control Platform R&D and Industrialization Project Based on Self-Developed Chips | 41,096.06 | 18,761.08 | 5,434.28 | 28.97% | 348.45 | 0.00 | 13,675.24 |
| 2 | Digital Key Technology R&D and Industrialization Project in the Big Transportation Field | 47,749.78 | 21,467.72 | 7,490.81 | 34.89% | 284.62 | 1,834.86 | 12,426.68 |
| 3 | 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 |
| 4 | Supplementary Working Capital | 15,648.69 | 15,648.69 | 15,702.61 | 100.34% | 57.58 | 0.00 | 3.66 |
| Total | 130,824.39 | 67,394.41 | 29,244.98 | 867.06 | 6,595.89 | 32,420.60 |
Note 1: As of June 30, 2026, the total unused raised funds for the company's various fundraising projects was RMB 39,016.50 million (including net interest and income from wealth management). Of this, the balance in the special account for raised funds was RMB 32,420.60 million, and the idle raised funds temporarily supplemented to working capital that have not yet been repaid amounted to RMB 6,595.89 million.
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 from this terminated project are permanently supplemented to working capital, the idle raised funds temporarily supplemented to working capital that have not yet been repaid will be fully repaid to the special account for raised funds, and information disclosure obligations will be fulfilled in a timely manner.
Note 3: Any discrepancies in the table above are due to rounding.