Securities Code: 001312 Securities Abbreviation: Fuen Shares Announcement No.: 2026-008 Hangzhou Fuen Co., Ltd. Announcement on Adjusting the Amount of Raised Funds to be Invested in Fundraising Projects The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or significant omissions. Hangzhou Fuen Co., Ltd. (hereinafter referred to as the "Company") held its first Board of Directors meeting (18th session) on April 27, 2026, and deliberated and passed the "Proposal on Adjusting the Amount of Raised Funds to be Invested in Fundraising Projects." The Company intends to adjust the amount of raised funds to be invested in fundraising projects (hereinafter referred to as "fundraising projects") based on the net amount of raised funds from its initial public offering of A shares. The relevant situation is hereby announced as follows:
Basic情况 of Raised Funds
With the approval of the "Approval on the Registration of Hangzhou Fuen Co., Ltd.'s Initial Public Offering of Stocks" (Zheng Jian Xu Ke (2026) No. 70) issued by the China Securities Regulatory Commission, and with the approval of the Shenzhen Stock Exchange, the Company issued 58,333,334 ordinary shares of RMB (A shares) at an issue price of RMB 18.38 per share. The total amount of raised funds from this issuance was RMB 107,216.67 million. After deducting issuance expenses of RMB 8,953.10 million (excluding VAT), the net amount of raised funds was RMB 98,263.57 million. The aforementioned raised funds have been transferred to the Company's designated account. Tianjian Certified Public Accountants (Special General Partnership) audited the arrival of the raised funds for this issuance on April 16, 2026, and issued the Tianjian Audit Certificate (2026) No. 113. In accordance with regulations, the Company manages the raised funds through dedicated accounts. Upon arrival, all raised funds have been deposited into the special accounts for raised funds. The Company and its subsidiaries have signed a supervision agreement for the dedicated account storage of raised funds with the sponsor, CITIC Securities Co., Ltd., and the commercial banks where the raised funds are deposited.
Fundraising Project Information
Given that the net amount of raised funds from the Company's initial public offering of stocks is lower than the total amount of raised funds planned to be invested in the fundraising projects as stated in the "Prospectus of Hangzhou Fuen Co., Ltd. for Initial Public Offering of Stocks and Listing on the Main Board," in order to ensure the smooth implementation of the fundraising projects and improve the efficiency of fund utilization, and considering the Company's actual situation, the amounts of raised funds to be invested in each fundraising project will be adjusted without changing the intended use of the raised funds. The adjusted fundraising project utilization plan is as follows:
| No. | Project Name | Implementing Entity | Investment Amount | Planned Investment of Raised Funds | Adjusted Investment of Raised Funds |
|---|---|---|---|---|---|
| 1 | "Xiao Zheng Gong" (2023) No. 82 Project for Integrated Production of Recycled Eco-friendly Woolen Yarn | Hangzhou Fuen Co., Ltd. | 81,649.00 | 80,000.00 | 63,263.57 |
| 2 | High-end Recycled Material Research Institute and Green Intelligent Manufacturing Project | Hangzhou Furen New Materials Co., Ltd. | 45,618.00 | 45,000.00 | 35,000.00 |
| Total | 127,267.00 | 125,000.00 | 98,263.57 |
Impact of the Adjustment on the Amount of Raised Funds to be Invested in Fundraising Projects
The adjustment of the amount of raised funds to be invested in the fundraising projects is based on the fact that the actual net amount of raised funds is lower than the originally planned amount for the fundraising projects, and is a decision made in conjunction with the Company's actual situation to ensure the smooth implementation of the fundraising projects. This adjustment will not have a substantial impact on the normal use of the raised funds, and does not involve any disguised change in the use of raised funds or harm to shareholder interests. This adjustment complies with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange on the management of listed companies' raised funds, and is in line with the Company's future development strategy and the interests of all shareholders.
Review of Deliberation Procedures and Opinions
(I) Opinion of the Board of Directors' Audit Committee
The Company held the fifth meeting of the first Board of Directors' Audit Committee on April 22, 2026, and deliberated and passed the "Proposal on Adjusting the Amount of Raised Funds to be Invested in Fundraising Projects." The Audit Committee believes that the Company's adjustment to the amount of raised funds to be invested in fundraising projects has undergone the necessary decision-making procedures, will not have a substantial impact on the normal use of the raised funds, does not involve any disguised change in the use of raised funds or harm to shareholder interests, and complies with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange on the management of listed companies' raised funds. The Audit Committee agrees to the Company's adjustment to the amount of raised funds to be invested in fundraising projects.
(II) Opinion of the Board of Directors
The Company held the eighteenth meeting of the first Board of Directors on April 27, 2026, and deliberated and passed the "Proposal on Adjusting the Amount of Raised Funds to be Invested in Fundraising Projects." The Board of Directors believes that the Company's adjustment to the amount of raised funds to be invested in fundraising projects is a prudent decision made based on the actual arrival of the raised funds and the Company's actual operational needs. It is conducive to ensuring the smooth implementation of the fundraising projects, will not affect the normal progress of the fundraising investment plan, does not involve any disguised change in the use of raised funds or harm to shareholder interests, and will not have an adverse impact on the Company's operating conditions. The Board of Directors agrees to the Company's adjustment to the amount of raised funds to be invested in fundraising projects.
Sponsor's Review Opinion
After review, the sponsor is of the opinion that Hangzhou Fuen Co., Ltd.'s adjustment to the amount of raised funds to be invested in fundraising projects has been deliberated and approved by the Company's Board of Directors, fulfilling the necessary approval procedures. It does not involve any disguised change in the use of raised funds or harm to the interests of the listed company and its shareholders, especially small and medium shareholders. It complies with the "Supervision Regulations for Raised Funds of Listed Companies," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant regulations. In summary, the sponsor has no objection to the Company's adjustment of the amount of raised funds to be invested in fundraising projects.
Documents for Reference
- Resolution of the 18th meeting of the first Board of Directors;
- Fifth meeting of the first Board of Directors' Audit Committee;
- Review opinion of CITIC Securities Co., Ltd. on Hangzhou Fuen Co., Ltd.'s adjustment to the amount of raised funds to be invested in fundraising projects. Hereby announced. Hangzhou Fuen Co., Ltd. Board of Directors 2026 April 29