2025 Annual Report on the Custody, Management, and Use of Raised Funds

Securities Code: 001359 Securities Abbreviation: Ping An Electric Announcement No.: 2026-013 Hubei Ping An Electric Technology Co., Ltd. 2025 Annual Report on the Custody, Management, and Use of Raised Funds The Company and the entire Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, without any false statements, misleading representations, or material omissions. In accordance with the "Supervision Regulations for Raised Funds of Listed Companies," "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant regulations, the Board of Directors of Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as the "Company") hereby reports on the custody, management, and use of the Company's raised funds in 2025: I. Basic Situation of Raised Funds (I) Amount of Raised Funds and Time of Receipt According to the "Approval of the China Securities Regulatory Commission on the Initial Public Offering of Shares of Hubei Ping An Electric Technology Co., Ltd." (Securities Regulatory Permit (2023) No. 2121), the Company issued 46.38 million ordinary shares (A shares) to the public through the underwriter CITIC Securities Co., Ltd. using the standby underwriting method, at an issue price of RMB 17.39 per share, raising a total of RMB 806.5482 million. After deducting non-tax issuance expenses of RMB 79.0032 million, the net amount of raised funds for this issuance is RMB 727.545 million. The receipt of these raised funds has been verified by Tianjian Certified Public Accountants (Special General Partnership), who issued the "Capital Verification Report" (Tianjian Verification (2024) No. 3-6). (II) Use and Balance of Raised Funds Unit: RMB 10,000 Item Serial Number Amount Net raised funds A 72,754.50 Project investment B1 Amount at the beginning of the period Interest income net B2 25,102.36 263.72 Amount incurred during the period Project investment C1 16,244.62 Item Serial Number Amount Interest income net C2 786.01 Amount at the end of the period Project investment D1=B1+C1 41,346.98 Interest income net D2=B2+C2 1,049.73 Balance of raised funds E=A-D1+D2 32,457.25 Actual balance of raised funds F 5,757.25 Difference G=E-F 26,700.00 Note 1: The difference is due to wealth management products that have not yet matured and are deposited in a sub-account under the special account for raised funds. II. Custody and Management of Raised Funds (I) Management of Raised Funds To standardize the management and use of raised funds, improve the efficiency and effectiveness of fund utilization, and protect investors' rights and interests, the Company has formulated the "Management Measures for Raised Funds of Hubei Ping An Electric Technology Co., Ltd." (hereinafter referred to as the "Management Measures") in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Supervision Regulations for Raised Funds of Listed Companies," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant laws, regulations, and normative documents, combined with the Company's actual situation. According to the "Management Measures," the Company implements special account custody for raised funds. The Company has established special accounts for raised funds in banks and, together with the sponsor CITIC Securities Co., Ltd., has signed "Tripartite Custody Agreements for Raised Funds" with the following banks: China Agricultural Bank of China, Tongcheng County Junshui Branch; Industrial Bank Co., Ltd. Wuhan Branch; China Merchants Bank Co., Ltd. Wuhan Branch Business Department; China CITIC Bank Co., Ltd. Wuhan Wuchang Branch; and Bank of China Tongcheng Branch. The Company and its subsidiary Hubei Ping An Electric Technology Industrial Co., Ltd. have signed "Quadrupartite Custody Agreements for Raised Funds" with CITIC Securities Co., Ltd., China Merchants Bank Co., Ltd. Wuhan Branch Business Department, and China CITIC Bank Co., Ltd. Wuhan Wuchang Branch. The Company and its subsidiary Tongcheng County Tongli Fiberglass Co., Ltd. have signed "Quadrupartite Custody Agreements for Raised Funds" with CITIC Securities Co., Ltd. and Bank of China Hubei Provincial Branch. The Company and its subsidiary Tongcheng County Yunshui Mica Technology Co., Ltd. have signed "Quadrupartite Custody Agreements for Raised Funds" with CITIC Securities Co., Ltd. and Bank of China Hubei Provincial Branch. The aforementioned agreements clearly define the rights and obligations of all parties. The raised fund custody agreements do not have significant differences from the tripartite custody agreement template of the Shenzhen Stock Exchange. The Company has strictly complied with these agreements in its use of raised funds. (II) Custody of Raised Funds in Special Accounts As of December 31, 2025, the Company's special accounts for raised funds and their custody situation are as follows: Unit: RMB 10,000 Account Holder Opening Bank Bank Account Number Raised Funds Balance Remarks Hubei Ping An Electric Technology Co., Ltd. China Agricultural Bank of China, Tongcheng County Junshui Branch 17700201040012509 2,532.85 Hubei Ping An Electric Technology Co., Ltd. Wuhan Production Base Project, Production Base Intelligent Upgrade and Renovation Project Hubei Ping An Electric Technology Co., Ltd. Industrial Bank Co., Ltd. Wuhan Branch, Economic and Technological Development Zone Branch 416070100100677913 183.51 Ping An Electric Wuhan Production Base Project, Production Base Intelligent Upgrade and Renovation Project Hubei Ping An Electric Industry Co., Ltd. China Merchants Bank Co., Ltd. Wuhan Branch Business Department 127915781710903 613.57 New Material R&D Center Project Hubei Ping An Electric Technology Co., Ltd. China CITIC Bank Co., Ltd. Wuhan Wuchang Branch 8111501013301117468 637.40 New Material R&D Center Project Hubei Ping An Electric Industry Co., Ltd. China CITIC Bank Co., Ltd. Wuhan Wuchang Branch 8111501012401119140 695.69 Hubei Ping An Electric Technology Co., Ltd. Wuhan Production Base Project, Production Base Intelligent Upgrade and Renovation Project Tongcheng County Tongli Fiberglass Co., Ltd. Bank of China Co., Ltd. Tongcheng Branch Business Department 554786748295 1,072.87 Production Base Intelligent Upgrade and Renovation Project Tongcheng County Yunshui Mica Technology Co., Ltd. Bank of China Co., Ltd. Tongcheng Branch Business Department 572987587437 0.95 Production Base Intelligent Upgrade and Renovation Project Hubei Taikai Aneng Technology Co., Ltd. China Merchants Bank Co., Ltd. Wuhan Xinhua Road Branch 127923740910001 20.40 Ping An Electric Wuhan Production Base Project Total 5,757.25 Note: The sum of the above table and the individual items may have rounding differences due to rounding. Hubei Taikai Aneng Technology Co., Ltd. has opened a special account for raised funds at China Merchants Bank Co., Ltd. Wuhan Xinhua Road Branch with account number 127923740910001. This is a newly opened special account during the reporting period. For details, please refer to the "Announcement on Signing the Quadrupartite Custody Agreement for Raised Funds" disclosed by the Company on September 23, 2025 (Announcement No.: 2025-032). III. Actual Use of Raised Funds During the Period (I) Table of Raised Fund Usage The table of raised fund usage is detailed in Appendix 1 of this report. (II) Explanation of Abnormal Situations in Raised Fund Investment Projects There have been no abnormal situations in the Company's raised fund investment projects. (III) Explanation of Situations Where the Benefits of Raised Fund Investment Projects Cannot Be Calculated Separately The New Material R&D Center Project, Production Base Intelligent Upgrade and Renovation Project, and Working Capital Supplement Project are projects that support the Company's business and cannot be calculated separately for their benefits. The "Ping An Electric Wuhan Production Base Project" (hereinafter referred to as the "Wuhan Production Base Project") and the "Hubei Ping An Electric Technology Co., Ltd. Tongcheng Production Base Project" (hereinafter referred to as the "Tongcheng Production Base Project") have not yet reached their predetermined usable state and cannot be calculated separately for their benefits. (IV) Situation of Idle Raised Funds for Cash Management On April 16, 2025, the Company held the sixth meeting of the third session of the Board of Directors and the sixth meeting of the third session of the Supervisory Board, which reviewed and approved the "Proposal on Using Part of Temporarily Idle Raised Funds for Cash Management." It was agreed that the Company and its subsidiaries could use temporarily idle raised funds not exceeding RMB 400 million (inclusive) for cash management, investing in deposit products with high safety and good liquidity. The aforementioned amount can be rolled over and used within 12 months from the date of approval by the Board of Directors, and the Company's management is authorized to handle relevant matters. The authorization period is valid for 12 months from the date of approval by the Board of Directors. As of December 31, 2025, the balance of idle raised funds used for cash management by the Company was RMB 26,700 million. The specific situation is as follows: Issuer Product Name Product Category Purchase Amount Subscription Date Maturity Date Bank of China Co., Ltd. Tongcheng Branch Business Department Transferable Certificate of Deposit Principal-Protected Fixed Income Product 1,000.00 2025-08-25 2026-06-15 China Merchants Bank Co., Ltd. Wuhan Branch Business Department Transferable Certificate of Deposit Principal-Protected Fixed Income Product 1,000.00 2025-08-25 2026-07-03 China Merchants Bank Co., Ltd. Wuhan Branch Business Department Transferable Certificate of Deposit Principal-Protected Fixed Income Product 1,000.00 2025-08-25 2026-07-03 China Merchants Bank Co., Ltd. Wuhan Branch Business Department Transferable Certificate of Deposit Principal-Protected Fixed Income Product 1,000.00 2025-08-26 2026-07-03 China Merchants Bank Co., Ltd. Wuhan Branch Business Department Transferable Certificate of Deposit Principal-Protected Fixed Income Product 1,000.00 2025-08-26 2026-07-03 Bank of China Co., Ltd. Tongcheng Branch Business Department Transferable Certificate of Deposit Principal-Protected Fixed Income Product 1,000.00 2025-09-03 2026-08-31 China CITIC Bank Co., Ltd. Wuhan Wuchang Branch Structured Deposit Principal-Protected Floating Income Product 1,000.00 2025-10-31 2026-01-29 China CITIC Bank Co., Ltd. Wuhan Wuchang Branch Structured Deposit Principal-Protected Floating Income Product 1,000.00 2025-12-01 2026-03-03 China CITIC Bank Co., Ltd. Wuhan Wuchang Branch Structured Deposit Principal-Protected Floating Income Product 1,000.00 2025-12-01 2026-03-03