Securities Code: 001359 Securities Abbreviation: Ping An Electric Announcement No.: 2026-006 Hubei Ping An Electric Technology Co., Ltd. Announcement on Continuing to Use Partially Idle Raised Funds for Cash Management The Company and the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false representations, misleading statements, or material omissions. Key Information Prompt:
- Investment Type: Investment products with high safety and liquidity.
- Investment Amount: Not exceeding RMB 300 million (inclusive).
- Special Risk Warning: Although this cash management plan involves purchasing investment products with high safety and liquidity (including but not limited to structured deposits, large-denomination certificates of deposit, fixed deposits, and call deposits), the Company will also invest appropriately based on economic conditions and changes in the financial market. However, the financial market is significantly affected by the macroeconomy, and there is a risk that this investment may be affected by market fluctuations. Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as the "Company" or "Ping An Electric") held its third Board of Directors' sixth meeting and third Supervisory Board's sixth meeting on April 16, 2025, and deliberated and approved the "Proposal on Using Partially Idle Raised Funds for Cash Management." The Company and its subsidiaries were approved to use no more than RMB 400 million (inclusive) of temporarily idle raised funds for cash management. The aforementioned amount can be used on a revolving basis within 12 months from the date of approval by the third Board of Directors' sixth meeting. For details, please refer to the "Announcement on Using Partially Idle Raised Funds for Cash Management" (Announcement No.: 2025-006) disclosed by the Company on Juchao Information Network (www.cninfo.com.cn) on April 18, 2025. As the authorization period for using partially idle raised funds for cash management is about to expire, in order to improve the efficiency of raised fund utilization, and based on the Company's current fund usage status and the progress of the raised fund investment projects, the Company held its third Board of Directors' eleventh meeting on April 10, 2026. The meeting deliberated and approved the "Proposal on Continuing to Use Partially Idle Raised Funds for Cash Management." The Company and its subsidiaries plan to use a total amount not exceeding RMB 300 million (inclusive) of temporarily idle raised funds for cash management. The aforementioned amount is valid for 12 months from the date of approval by the third Board of Directors' eleventh meeting and can be used on a revolving basis. The relevant situation is hereby announced as follows: I. Basic Situation of Raised Funds According to the "Approval on the Registration of Initial Public Offering of Shares by Hubei Ping An Electric Technology Co., Ltd." (Zheng Jian Xu Ke [2023] No. 2121) issued by the China Securities Regulatory Commission, the Company issued 46.38 million ordinary shares (A shares) to the public through China CITIC Securities Company Limited as the underwriter, with an issue price of RMB 17.39 per share. The total raised funds amounted to RMB 806.5482 million. After deducting issuance expenses (excluding tax) of RMB 79.0032 million, the net amount of raised funds was RMB 727.545 million. The capital verification of the above raised funds was confirmed by Tianjian Certified Public Accountants (Special General Partnership) in their "Capital Verification Report" (Tian Jian Yan [2024] No. 3-6). II. Use of Raised Funds and Reasons for Temporary Idleness of Part of Raised Funds (I) Use of Raised Funds According to the Company's "Prospectus for Initial Public Offering of Shares by Hubei Ping An Electric Technology Co., Ltd. on the Main Board," and the "Announcement on Adjusting the Amount of Raised Funds to be Invested in Raised Fund Investment Projects" (Announcement No.: 2024-003), the "Announcement on Postponement of Part of Raised Fund Investment Projects and Change of Use of Funds for Part of Raised Fund Investment Projects" (Announcement No.: 2024-051), and the "Announcement on Adjusting Raised Fund Investment Projects" (Announcement No.: 2026-002), the details of the Company's raised fund investment projects are as follows: Unit: Ten Thousand Yuan | Serial No. | Project Name | Total Investment | Amount of Raised Funds Invested | | ---------- | ------------------------------------------------ | ---------------- | ------------------------------- | | 1 | Ping An Electric Wuhan Production Base Project | 12,291.54 | 12,291.54 | | 2 | Hubei Ping An Electric Technology Co., Ltd. Tongcheng Production Base Project | 34,574.87 | 34,574.87 | | 3 | New Material R&D Center Project | 8,174.03 | 7,356.63 | | 4 | Intelligent Upgrade and Transformation Project for Production Base | 5,016.90 | 5,016.90 | | 5 | Supplement Working Capital | 13,514.57 | 13,514.57 | | | Total | 73,571.91 | 72,754.50 | (II) Reasons for Temporary Idleness of Part of Raised Funds Currently, the Company is steadily advancing the construction of raised fund investment projects in accordance with the investment plan. However, due to the construction period required for the raised fund investment projects, the raised funds need to be invested in stages according to the plan. Based on the current project construction progress, part of the raised funds is temporarily idle. III. Basic Situation of Continuing to Use Partially Idle Raised Funds for Cash Management (I) Purpose of Cash Management To improve the efficiency of using temporarily idle raised funds, while ensuring the Company and its subsidiaries' normal operations and not affecting the implementation of the Company's raised fund investment projects, the raised fund usage plan, and the safety of raised funds, the Company will reasonably use part of the temporarily idle raised funds for cash management to increase the return on raised funds and provide greater returns for the Company and its shareholders. (II) Amount of Cash Management Under the premise of ensuring fund safety, the Company and its subsidiaries plan to use no more than RMB 300 million (inclusive) of temporarily idle raised funds for cash management. The total amount at any point in time shall not exceed RMB 300 million (including the amount of reinvested investment income). Within this limit, the funds can be used on a revolving basis. (III) Investment Product Types The Company will strictly control risks in accordance with relevant regulations and conduct strict evaluations of investment products. The temporarily idle raised funds will be used to purchase products with high safety and liquidity, with a maturity not exceeding twelve months, and that are not principal-protected. These investment products shall not be used for pledge, and the dedicated settlement accounts for the products (if applicable) shall not hold non-raised funds or be used for other purposes. (IV) Investment Period Valid for 12 months from the date of approval by the third Board of Directors' eleventh meeting. (V) Implementation Method Within the approved amount, the Company's management will be authorized to exercise relevant investment decision-making rights and sign relevant documents. The implementation will be organized by the Company's Finance Center. (VI) Information Disclosure The Company will fulfill its information disclosure obligations in accordance with the relevant regulations of the Shenzhen Stock Exchange and other regulatory authorities. IV. Risk Analysis and Control Measures (I) Risk Analysis Although this cash management plan involves purchasing investment products with high safety and liquidity (including but not limited to structured deposits, large-denomination certificates of deposit, fixed deposits, and call deposits), the Company will also invest appropriately based on economic conditions and changes in the financial market. However, the financial market is significantly affected by the macroeconomy, and there is a risk that this investment may be affected by market fluctuations. (II) Risk Control Measures
- When conducting cash management, the Company will select investment products with good liquidity, high safety, that meet principal protection requirements, and have a maturity not exceeding 12 months. The amount, term, investment types, and the rights and obligations of both parties, as well as legal responsibilities, will be clearly defined for the investment products.
- Relevant personnel in the Company's Finance Center will promptly analyze and track the investment direction of wealth management products and project progress. If adverse factors are identified or assessed, corresponding measures will be taken to strictly control investment risks.
- The Company's internal audit department will conduct periodic comprehensive inspections of the products and reasonably estimate the possible risks and returns of each investment based on the principle of prudence.
- The Company's Audit Committee and independent directors have the right to supervise and inspect the use of funds. Professional institutions may be engaged for audits when necessary. V. Impact on the Company's Daily Operations The Company and its subsidiaries, based on the principles of standardized operation, risk prevention, and value preservation and appreciation, are using part of the temporarily idle raised funds for cash management in compliance with national laws and regulations. This will not affect the progress of the Company's raised fund investment projects, effectively control investment risks, and will not affect the Company's daily operations or the normal progress of raised fund investment projects. It does not harm the interests of the Company and its shareholders. By appropriately and timely managing part of the temporarily idle raised funds, the efficiency of raised fund utilization can be improved, the Company's cash asset returns can be increased, and greater investment returns can be provided to the Company's shareholders. VI. Deliberation Procedures and Related Opinions (I) Board of Directors' Deliberation The Company held the third Board of Directors' eleventh meeting on April 10, 2026, and deliberated and approved the "Proposal on Continuing to Use Partially Idle Raised Funds for Cash Management." The sponsor, China CITIC Securities Company Limited, issued a favorable verification opinion. This matter falls within the scope of the Board of Directors' decision-making authority and does not require submission to the Company's shareholders' meeting for deliberation. (II) Sponsor's Opinion After review, the sponsor believes that the Company's use of partially idle raised funds for cash management has been approved by the Board of Directors and has fulfilled the necessary approval procedures. This matter is beneficial for improving fund utilization efficiency, obtaining certain investment returns, does not involve disguised changes in the use of raised funds, does not affect the normal progress of the raised fund investment plan, and complies with the "Regulations on the Supervision and Administration of Raised Funds by Listed Companies," the "Shenzhen Stock Exchange Stock Listing Rules," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Norms for Operations of Main Board Listed Companies," and other relevant regulations and the Company's raised fund management system. The sponsor has no objection to the Company's continued use of partially idle raised funds for cash management. VII. Documents for Reference
- Resolution of the third Board of Directors' eleventh meeting;
- Verification Opinion of China CITIC Securities Company Limited on Hubei Ping An Electric Technology Co., Ltd.'s Continued Use of Partially Idle Raised Funds for Cash Management. Hereby announced. Hubei Ping An Electric Technology Co., Ltd. Board of Directors April 10, 2026