Announcement on Cash Management Using Idle Funds

Securities Code: 001212 Securities Abbreviation: Zhongqi New Materials Announcement No.: 2026-011
Guangdong Zhongqi New Materials Co., Ltd.
Announcement on the Use of Part of the Idle Raised Funds and Self-owned Funds for Cash Management and the Recognition of the Use of Part of the Self-owned Funds for Cash Management
The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or major omissions.
Guangdong Zhongqi New Materials Co., Ltd. (hereinafter referred to as "the Company") held the eighth meeting of the fourth board of directors on April 23, 2026, and approved the "Announcement on the Use of Part of the Idle Raised Funds and Self-owned Funds for Cash Management and the Recognition of the Use of Part of the Self-owned Funds for Cash Management." Under the premise of ensuring that it does not affect the construction of the raised funds project, the usage plan of the raised funds, and ensuring the normal production and operation of the company while effectively controlling risks, it is agreed that the company and its subsidiaries may use no more than RMB 500 million of idle raised funds for cash management and no more than RMB 600 million of self-owned funds for cash management, with a total usage limit not exceeding RMB 1.1 billion (including this amount). The validity period of this limit is from the date of approval by the shareholders' meeting until the date of the next annual shareholders' meeting. Within the above limit, the funds can be used on a rolling basis.
According to the "Shenzhen Stock Exchange Stock Listing Rules" and "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1 - Standard Operation of Main Board Listed Companies," the above matters still need to be submitted to the company's shareholders' meeting for deliberation. The specific situation is as follows:
I. Basic Situation of Raised Funds
(1) Raised Funds from Initial Public Offering
Approved by the China Securities Regulatory Commission in the "Approval on Guangdong Zhongqi New Materials Co., Ltd. Initial Public Offering of Stocks" (Zheng Jian Xu Ke [2021] No. 2346), the company publicly issued 22,670,000.00 shares of RMB ordinary shares (A shares) to the public, with a par value of RMB 1 per share and an issue price of RMB 31.67 per share, raising a total of RMB 717,958,900.00. After deducting the issuance costs of RMB 88,561,800.00 (excluding tax), the actual net raised funds amount to RMB 629,397,100.00. The status of the above raised funds has been verified by Lixin Certified Public Accountants (Special General Partnership), which issued the "Verification Report of Guangdong Zhongqi New Materials Co., Ltd." (Xin Hui Shi Bao Zi [2021] No. ZL10349).
(2) Raised Funds from Public Issuance of Convertible Bonds
Approved by the China Securities Regulatory Commission in the "Approval on Guangdong Zhongqi New Materials Co., Ltd. Public Issuance of Convertible Bonds" (Zheng Jian Xu Ke [2023] No. 249), the company publicly issued a total face value of RMB 540 million of convertible bonds (hereinafter referred to as "Convertible Bonds"). On March 3, 2023, the company publicly issued 5.4 million convertible bonds, each with a face value of RMB 100, raising a total of RMB 540 million (including issuance costs). After deducting issuance costs of RMB 793,770, the actual net raised funds amount to RMB 532,062,300. The above raised funds have all been deposited into the company's special account for raised funds. Lixin Certified Public Accountants (Special General Partnership) verified the status of the funds from the public issuance of convertible bonds on March 9, 2023, and issued the verification report (Xin Hui Shi Bao Zi [2023] No. ZL10032).
II. Management and Use of Raised Funds
(1) Management of Raised Funds from Initial Public Offering
As of December 31, 2025, the progress of the company's investment projects funded by the raised funds from the initial public offering is as follows:
Unit: Ten Thousand Yuan