Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "the Company") held the 22nd meeting of the 3rd Board of Directors and the 17th meeting of the 3rd Supervisory Board on November 28, 2025, where it reviewed and approved the proposal on the use of part of the idle raised funds for cash management. The Company agreed to use a total amount not exceeding RMB 80 million (including the principal) of temporarily idle raised funds for cash management, provided that it does not affect the construction of investment projects funded by the raised funds and the normal use of the raised funds. The usage period is valid for 12 months from the date of approval by the Board of Directors, and the Company may roll over the use within the above limit and period. The relevant information is announced as follows:
- Basic Situation of Raised Funds
According to the approval from the China Securities Regulatory Commission regarding the registration of the issuance of shares to specific objects by Zhejiang Bofei Electric Co., Ltd. (Document No. [2025] 2432), the Company issued 5,166,184 shares of RMB ordinary shares (A shares) through a simplified procedure at an issuance price of RMB 27.68 per share, raising a total of RMB 142,999,973.12. After deducting relevant issuance expenses, the actual net amount raised is RMB 137,558,822.86. The raised funds have been verified by Zhongxi Accounting Firm (Special General Partnership), which issued a verification report (Report No. Zhongxi Verification 2025Y00097). The Company has stored the raised funds in a special account and signed a tripartite supervision agreement with the special account bank and the sponsor institution as required.
- Investment Project Situation of Raised Funds
According to the relevant content of the "Prospectus for the Simplified Issuance of Shares to Specific Objects by Zhejiang Bofei Electric Co., Ltd. in 2025" and the actual amount of raised funds, the net amount of raised funds after deducting relevant issuance expenses will be used for the following projects:
| No. | Project Name | Total Investment | Amount to be Invested from Raised Funds |
|---|---|---|---|
| 1 | Annual Production of 70,000 Tons of Motor Insulation Materials | 26,310.24 | 13,755.88 |
| Total | 26,310.24 | 13,755.88 |
Due to the construction of investment projects requiring a certain period, there is currently a situation of partial idle raised funds in the short term. To improve the efficiency of idle raised funds, the Company plans to use part of the idle raised funds for cash management without affecting the construction progress of investment projects and the normal use of raised funds, while effectively controlling risks.
- Situation of Using Part of the Temporarily Idle Raised Funds for Cash Management
(a) Purpose of Cash Management
The purpose is to improve the efficiency of fund utilization without affecting the construction of investment projects, managing idle raised funds to reduce financial costs and increase cash income, thereby providing good investment returns for the Company and its shareholders.