Arrow Home Group Co., Ltd. (hereinafter referred to as "the Company" or "Arrow Home") held the 20th meeting of the second board of directors and the 19th meeting of the second supervisory board on October 30, 2025, where it approved the proposal on the continued use of part of the temporarily idle raised funds for cash management. The Company agreed to continue using an amount not exceeding RMB 251 million (including the principal) of temporarily idle raised funds for cash management, ensuring that it does not affect the normal progress of investment projects and the safety of raised funds. The cash management amount will be shared by the Company and its subsidiaries, and the usage period is valid for one year from the date of board approval. Within the above amount and period, the funds can be used in a rolling manner. For specific details, please refer to the announcement disclosed by the Company on October 31, 2025, on the designated information disclosure media, including the announcement on the continued use of part of the temporarily idle raised funds for cash management.
Recently, the Company has used part of the idle raised funds for cash management within the authorized scope, and the relevant situation is announced as follows:
1. Basic Situation of Raised Funds
According to the approval from the China Securities Regulatory Commission regarding the public offering of shares by Arrow Home Group Co., Ltd. (Approval No. [2022] 1977), Arrow Home Group Co., Ltd. publicly issued 96,609,517 new ordinary shares (A shares) at an issue price of RMB 12.68 per share, raising a total of RMB 1,225,008,675.56. After deducting issuance expenses of RMB 69,135,773.66 (excluding tax), the net amount raised is RMB 1,155,872,901.90. The raised funds were deposited into the Company's raised funds account on October 20, 2022, and the situation has been verified by Xinyong Zhonghe Accounting Firm (Special General Partnership), which issued Verification Report No. XYZH/2022SZAA5B0001. At the same time, the Company and its wholly-owned subsidiaries, Foshan Lehua Hengye Kitchen and Bath Co., Ltd. (referred to as "Hengye Kitchen and Bath") and Zhaoqing Lehua Hengye Hardware Products Co., Ltd. (referred to as "Hengye Hardware"), have signed the "Three-party Supervision Agreement on Raised Funds" and the "Four-party Supervision Agreement on Raised Funds" with the sponsor and the bank where the raised funds special account is opened. As of March 31, 2026, the balance of unused raised funds is approximately RMB 220.42 million (including interest income and cash management income, less related fees). The Company is currently advancing the investment projects in an orderly manner according to the raised funds usage plan. Due to the construction period required for the investment projects, there is a temporary idle situation with the raised funds that have not yet been put to use. Without affecting the construction of investment projects and the normal operation of the Company, the Company intends to reasonably use the raised funds for cash management to improve the efficiency of fund utilization.