Special Report on the Storage, Management, and Use of Raised Funds in 2025

Securities Code: 001387 Securities Abbreviation: Xueqi Electric Announcement Number: 2026-012 Hefei Xueqi Electric Co., Ltd. Special Report on the Storage, Management, and Use of Raised Funds in 2025 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 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 laws, regulations, and normative documents, the Board of Directors of Hefei Xueqi Electric Co., Ltd. (hereinafter referred to as the "Company") hereby reports on the storage, management, and use of raised funds in 2025 as follows: I. Basic情况 of Raised Funds (I) Amount of Funds Actually Raised and Time of Receipt According to the "Approval of the Registration of the Initial Public Offering of Shares of Hefei Xueqi Electric Co., Ltd." (Zhengjian Permit [2023] No. 1975) issued by the China Securities Regulatory Commission and approved by the Shenzhen Stock Exchange, the Company issued 34.19 million shares of common stock (A shares) to the public for the first time, with a par value of RMB 1.00 per share and an issue price of RMB 15.38 per share. The total amount of funds raised in this offering was RMB 525.8422 million. After deducting issuance expenses (excluding tax) of RMB 68.4045 million, the net amount of funds actually raised was RMB 457.4377 million. The above raised funds were transferred to the Company's special account for raised funds on January 8, 2024. On the same day, Rongcheng Certified Public Accountants (Special General Partnership) audited the receipt of the raised funds from the Company's initial public offering and issued an audit report (Rongcheng Audit Word [2024] No. 230Z0001). (II) Use and Balance of Raised Funds This Year As of December 31, 2025, the Company had cumulatively invested RMB 38,899.81 million in raised funds. The specific use and balance are as follows:

1. Balance of Raised Funds in Special Accounts as of December 31, 2025 | 7,419.92 | Note: The above data is rounded to two decimal places. Any discrepancies in the figures are due to rounding during calculation. II. Storage and Management of Raised Funds To standardize the management and use of raised funds and protect investors' rights and interests, the Company has formulated the "Hefei Xueqi Electric Co., Ltd. Raised Funds Management System" in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Supervision Regulations for Raised Funds of Listed Companies," the "Shenzhen Stock Exchange Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," as well as the Company's actual situation. The Company has opened special accounts for raised funds at the Hefei Branch of Huaxia Bank Co., Ltd., Hefei Rural Commercial Bank Co., Ltd., Hefei Tunxi Road Branch of Industrial Bank Co., Ltd., and Hefei Anhua Branch of Bank of Communications Co., Ltd. On January 25, 2024, and January 26, 2024, respectively, the Company signed "Tripartite Supervision Agreements for Raised Funds" with the aforementioned banks and the sponsor, CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or the "Sponsor"), clarifying the rights and obligations of each party. The tripartite supervision agreements do not have significant differences from the template supervision agreement of the Shenzhen Stock Exchange. The Company has strictly complied with relevant regulations when using raised funds. As of December 31, 2025, the specific storage situation of the raised funds special accounts is as follows: | No. | Fundraising Project | Account Opening Bank | Bank Account | Balance of Raised Funds in Special Account (RMB million) | |---|---|---|---|---| | 1 | Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products | Hefei Branch of Huaxia Bank Co., Ltd. | 14756000000349303 | 1,231.53 | | 2 | Capability Improvement Project for Refrigerator Parts Self-Manufacturing | Hefei Tunxi Road Branch of Industrial Bank Co., Ltd. | 499030100100432786 | 4,826.78 | | 3 | R&D Center Construction Project | Hefei Anhua Branch of Bank of Communications Co., Ltd. | 341311000013002277087 | 1,361.61 | | 4 | Supplementary Working Capital | Hefei Rural Commercial Bank Co., Ltd. | 20000293272366600000165 | Account closed | | | Total | | | 7,419.92 | III. Actual Use of Raised Funds This Year (I) Use of Raised Funds for Investment Projects As of December 31, 2025, the actual use of raised funds by the Company is detailed in Appendix 1, "2025 Annual Report on the Use of Raised Funds." (II) Changes in the Location and Implementation Method of Raised Fund Investment Projects On December 11, 2025, the Company held its 8th meeting of the Second Board of Directors and its 6th meeting of the Second Supervisory Board. On December 29, 2025, the Company held its 2025 Fourth Extraordinary General Meeting of Shareholders. Both meetings deliberated and approved the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects." It was agreed that the Company would terminate the "Capability Improvement Project for Refrigerator Parts Self-Manufacturing" based on its current actual operations and future development needs, and invest the remaining raised funds from this project into the new project "Electronic Technology Park and High-End Smart Home Appliances Industrial Park." The terminated "Capability Improvement Project for Refrigerator Parts Self-Manufacturing" was located within the Company's existing factory area, for which the Company holds property ownership certificates and no new land is involved. The new project, "Electronic Technology Park and High-End Smart Home Appliances Industrial Park," is preliminarily located at the northwest corner of Zhipeng Mountain Road and Hangbu River Avenue in the Hefei Economic Development Zone, Feixi County, Anhui Province. The land use rights for the new project will be acquired through bidding, auction, or listing. For details, please refer to the "Announcement on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects" disclosed by the Company on the Juchao Information Network (www.cninfo.com.cn) on December 13, 2025 (Announcement No.: 2025-072). CITIC Securities has issued a verification opinion, and there are no objections to this matter. (III) Prior Investment and Repayment of Raised Funds On February 28, 2024, the Company held its 14th meeting of the First Board of Directors and its 11th meeting of the First Supervisory Board. Both meetings deliberated and approved the "Proposal on Using Raised Funds to Repay Self-Raised Funds Pre-Invested in Fundraising Projects and Expenses." It was agreed that the Company would use RMB 201,564,822.07 of raised funds to repay self-raised funds pre-invested in fundraising projects, and RMB 8,252,386.82 of raised funds to repay self-raised funds used for issuance expenses. Regarding the above repayment of raised funds, Rongcheng Certified Public Accountants (Special General Partnership) issued the "Guiding Report on Hefei Xueqi Electric Co., Ltd. Using Self-Raised Funds to Pre-Invest in Fundraising Projects and Pay Issuance Expenses" (Rongcheng Special Word [2024] No. 230Z0541). At the same time, CITIC Securities issued a verification opinion, and there are no objections to this matter. (IV) Temporary Supplementation of Working Capital with Idle Raised Funds As of December 31, 2025, the Company has not temporarily supplemented working capital with idle raised funds. (V) Use of Idle Raised Funds for Cash Management On December 24, 2024, the Company held its 18th meeting of the First Board of Directors and its 15th meeting of the First Supervisory Board. On January 10, 2025, the Company held its 2025 First Extraordinary General Meeting of Shareholders, which deliberated and approved the "Proposal on Using Part of Idle Raised Funds for Cash Management." It was agreed that the Company would use no more than RMB 130 million (inclusive) of idle raised funds for cash management. This limit is valid for 12 months from the date of approval by the general meeting of shareholders. Within this limit and period, it can be rolled over and used. The general meeting of shareholders authorized the Company's management to sign relevant contracts within the validity period and limit. Specific matters will be organized and implemented by the Company's finance department. Regarding this matter, CITIC Securities issued a verification opinion, and there are no objections to this matter. During the reporting period, the Company's use of idle raised funds for cash management is as follows: | No. | Counterparty | Product Name | Product Type | Amount (RMB) | Term | Whether Redeemed | Income (RMB) | Expected Annual Yield (%) | |---|---|---|---|---|---|---|---|---| | 1 | Shenwan Hongyuan Securities Co., Ltd. | Longding Golden Bull 2062-Day (90-Day) Wealth Management Certificate Product | Principal-protected | 10,000,000.00 | 2024.10.23-2025.1.20 | Yes | 12,328.77 | 0.50%-10.10% | | 2 | Shenwan Hongyuan Securities Co., Ltd. | Longding Custom 1670-Day Wealth Management Certificate Product | Principal-protected | 20,000,000.00 | 2024.11.15-2025.1.13 | Yes | 63,830.14 | 1.90%-2.00% | | 3 | Huaxia Bank Co., Ltd. Hefei Economic and Technological Development Zone Branch | RMB Unit Structured Deposit 2510046 | Principal-protected, Minimum Return | 20,000,000.00 | 2025.1.23-2025.2.24 | Yes | 43,835.61 | 1.30%-2.50% | | 4 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 40,000,000.00 | 2025.2.11-2025.2.28 | Yes | 45,643.83 | 1.30%-2.45% | | 5 | Huaxia Bank Co., Ltd. Hefei Economic and Technological Development Zone Branch | RMB Unit Structured Deposit 2510169 | Principal-protected, Minimum Return | 10,000,000.00 | 2025.2.28-2025.3.31 | Yes | 21,147.93 | 1.30%-2.49% | | 6 | Shenwan Hongyuan Securities Co., Ltd. | Longding Custom 1918-Day Wealth Management Certificate Product | Principal-protected | 10,000,000.00 | 2025.3.5-2025.4.8 | Yes | 30,684.93 | 0.10%-3.20% | | 7 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 45,000,000.00 | 2025.3.7-2025.3.31 | Yes | 65,095.89 | 1.30%-2.20% | | 8 | Guangfa Securities Co., Ltd. | Guangfa Securities Wealth Management Certificate "Wealth Treasure" No. 4 Fixed Income Series 1510 Wealth Management Certificate Product | Principal-protected, Floating Return | 10,000,000.00 | 2025.3.10-2025.9.10 | Yes | 137,227.78 | 1.00%-3.28% | | 9 | CITIC Securities Co., Ltd. | CITIC Securities Wealth Management Certificate Product | Principal-protected | 12,000,000.00 | 2025.4.8-2025.6.6 | Yes | 31,200.00 | 1.40%-4.36% | | 10 | Huaxia Bank Co., Ltd. Hefei Economic and Technological Development Zone Branch | RMB Unit Structured Deposit 2510363 | Principal-protected, Minimum Return | 10,000,000.00 | 2025.4.14-2025.5.14 | Yes | 18,657.53 | 1.30%-2.27%-2.47% | | 11 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 45,000,000.00 | 2025.5.9-2025.5.30 | Yes | 56,958.91 | 1.30% or 2.20% | | 12 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 47,000,000.00 | 2025.6.4-2025.6.30 | Yes | 63,610.96 | 1.00%-1.90% | | 13 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 47,000,000.00 | 2025.7.1-2025.7.31 | Yes | 73,397.26 | 1.00%-1.90% | | 14 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 48,000,000.00 | 2025.8.5-2025.8.29 | Yes | 58,704.65 | 1.00%-1.86% | | 15 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 48,000,000.00 | 2025.9.10-2025.9.30 | Yes | 48,657.53 | 1.00%-1.85% | | 16 | Industrial Bank Co., Ltd. Hefei Tunxi Road Branch | Corporate Finance RMB Structured Deposit Product | Principal-protected, Floating Return | 45,000,000.00 | 2025.10.9-2025.12.31 | Yes | 189,308.22 | 1.00%-1.85% | During 2025, the Company conducted cash management within the approved limits. As of December 31, 2025, the outstanding balance of idle raised funds used for cash management was RMB 0.00. (VI) Use of Surplus Raised Funds On December 11, 2025, the Company held its 8th meeting of the Second Board of Directors and its 6th meeting of the Second Supervisory Board. On December 29, 2025, the Company held its 2025 Fourth Extraordinary General Meeting of Shareholders. Both meetings deliberated and approved the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects." It was agreed to terminate the "Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project" and the "R&D Center Construction Project," which have reached their predetermined usability status. The total surplus raised funds of RMB 1,802.68 million (subject to the final balance of the project special account upon actual transfer) will be invested in the new project "Electronic Technology Park and High-End Smart Home Appliances Industrial Park." It was also agreed to change the use of raised funds for the "Capability Improvement Project for Refrigerator Parts Self-Manufacturing," adjust the total investment, and invest RMB 4,494.12 million (subject to the final balance of the project special account upon actual transfer) of surplus raised funds into the new project. For details, please refer to the "Announcement on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects" disclosed by the Company on the Juchao Information Network (www.cninfo.com.cn) on December 13, 2025 (Announcement No.: 2025-072). CITIC Securities has issued a verification opinion, and there are no objections to this matter. (VII) Use of Excess Raised Funds The Company did not have excess raised funds from its initial public offering. (VIII) Purpose and Destination of Unused Raised Funds As of December 31, 2025, the Company had unused raised funds of RMB 7,419.92 million (including interest income and wealth management product income of RMB 493.16 million and notes not yet replaced of RMB 82.80 million), which are all deposited in the Company's special account for raised funds. The Company's unused raised funds will continue to be invested in the fundraising projects committed by the Company. (IX) Other Situations Regarding the Use of Raised Funds Regarding the "Supplementary Working Capital" project, the funds in the special account for raised funds have been fully used according to regulations. The Company completed the cancellation of the bank account for this project on May 23, 2025. After the cancellation of the special account for raised funds, the "Tripartite Supervision Agreement for Raised Funds" signed by the Company with Hefei Rural Commercial Bank Co., Ltd. and CITIC Securities Co., Ltd. was terminated accordingly. IV. Changes in the Use of Raised Funds for Investment Projects As of December 31, 2025, the changes in the use of raised funds for investment projects by the Company are detailed in Appendix 2, "2025 Report on Changes in the Use of Raised Funds for Investment Projects." V. Problems in the Use and Disclosure of Raised Funds As of December 31, 2025, the Company has used raised funds in accordance with relevant laws, regulations, and normative documents, and has disclosed the use of raised funds in a timely, truthful, accurate, and complete manner. There are no violations in the storage, use, management, and disclosure of raised funds. Board of Directors of Hefei Xueqi Electric Co., Ltd. April 28, 2026 Appendix 1: 2025 Annual Report on the Use of Raised Funds Appendix 2: 2025 Report on Changes in the Use of Raised Funds for Investment Projects Appendix 1: 2025 Annual Report on the Use of Raised Funds Unit: RMB million | Item | Total Raised Funds | Net Raised Funds | |---|---|---| | Raised Funds Total | 52,584.22 | 45,743.77 | | Raised Funds Changed in Purpose During the Reporting Period | 4,514.01 | Amount of Raised Funds Invested in the Reporting Period | 3,493.07 | | Accumulated Raised Funds Changed in Purpose | 4,514.01 | Accumulated Amount of Raised Funds Invested | 38,899.81 | | Proportion of Accumulated Raised Funds Changed in Purpose | 9.87% | | | Fundraising Project and | Whether Changed | Raised Funds Committed | Adjusted Investment | Amount Invested in | Accumulated Investment | Investment Progress (%) | Project Reachable Date | Whether Expected Benefits Achieved | Whether Project Feasibility Significantly Changed | | Direction of Excess Funds | (Partially Changed) | (1) [Note 1] | This Reporting Period | (2) | (3) = (2) / (1) | | | | | Committed Investment Projects | | | | | | | | | | 1. Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project | No | 26,461.42 | 18,542.14 | 1,775.33 | 18,301.84 | 98.70 | December 2025 | Yes | No | | 2. Capability Improvement Project for Refrigerator Parts Self-Manufacturing | Yes | 9,503.68 | 1,819.67 | 126.98 | 1,672.73 | 91.92 | December 2025 | No | No | | 3. R&D Center Construction Project | No | 13,073.31 | 10,537.35 | 1,590.76 | 10,399.89 | 98.70 | December 2025 | No | No | | 4. Supplementary Working Capital | No | 10,000.00 | 8,500.00 | 0.00 | 8,525.35 [Note 2] | 100.30 | Not Applicable | No | No | | 5. Electronic Technology Park and High-End Smart Home Appliances Industrial Park Project | Yes | - | 6,344.61 | 0.00 | 0.00 | 0.00 | December 2028 | Not Applicable | No | | Direction of Excess Funds | | | | | | | | | | Subtotal of Committed Investment Projects | | 59,038.41 | 45,743.77 | 3,493.07 | 38,899.81 | 85.04 | | 1,427.04 | | | Subtotal of Excess Funds Direction | | - | - | - | - | - | | - | - | | Total | | 59,038.41 | 45,743.77 | 3,493.07 | 38,899.81 | 85.04 | | 1,427.04 | | | Reasons for Not Reaching Planned Progress or Expected Benefits (by Project) | (1) Due to the progress of machine installation, debugging, and acceptance of the "Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project" being slower than originally planned, and to ensure the quality of the project implementation, the Company, based on its own development strategy and operational planning, and considering the construction period and fund utilization arrangements of the fundraising projects, has, after careful evaluation, adjusted the date for the project to reach its predetermined usability status. The Company held its 17th meeting of the First Board of Directors and its 14th meeting of the First Supervisory Board on October 28, 2024, and deliberated and approved the "Proposal on Postponing the Implementation of Some Fundraising Projects." It was agreed to postpone the date for the "Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project" to reach its predetermined usability status to December 31, 2025, without changing the implementation entity, investment amount, or fund usage. Subsequently, the Company fully promoted the implementation progress of the fundraising projects. On December 11, 2025, the Company held its 8th meeting of the Second Board of Directors and its 6th meeting of the Second Supervisory Board. On December 29, 2025, the Company held its 2025 Fourth Extraordinary General Meeting of Shareholders. Both meetings deliberated and approved the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects." It was agreed to terminate the "Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project." | | (2) "Capability Improvement Project for Refrigerator Parts Self-Manufacturing": Affected by the macroeconomic environment, downstream market demand, industry competition, and adjustments in the Company's strategic planning, the Company has been relatively cautious in this project and has slowed down the construction progress. To ensure the effectiveness of the fundraising project and to allocate resources reasonably and effectively, the Company has decided to change the project based on its current actual operations and future development needs. The relevant construction investment will be temporarily suspended, and the surplus raised funds will be invested in the "Electronic Technology Park and High-End Smart Home Appliances Industrial Park" project. On December 11, 2025, the Company held its 8th meeting of the Second Board of Directors and its 6th meeting of the Second Supervisory Board. On December 29, 2025, the Company held its 2025 Fourth Extraordinary General Meeting of Shareholders. Both meetings deliberated and approved the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects." It was agreed to change the project. | | Reasons for Significant Change in Project Feasibility | Not Applicable | | Amount and Purpose of Excess Raised Funds and Progress | Not Applicable | | Changes in Location of Fundraising Projects | Not Applicable | | Changes in Implementation Methods of Fundraising Projects | Not Applicable | | Prior Investment and Repayment of Raised Funds | Refer to "III. (III) Prior Investment and Repayment of Raised Funds" in this report. | | Temporary Supplementation of Working Capital with Idle Raised Funds | Not Applicable | | Use of Idle Raised Funds for Cash Management | Refer to "III. (V) Use of Idle Raised Funds for Cash Management" in this report. | | Amount and Reasons for Surplus of Raised Funds in Project Implementation | Not Applicable | | Purpose and Destination of Unused Raised Funds | Refer to "III. (VIII) Purpose and Destination of Unused Raised Funds" in this report. | | Problems in the Use and Disclosure of Raised Funds or Other Matters | The Company has used raised funds in accordance with relevant laws, regulations, and normative documents, and has disclosed the use of raised funds in a timely, truthful, accurate, and complete manner. There are no violations in the storage, use, management, and disclosure of raised funds. | | Note 1: According to the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects" deliberated and approved by the Company in December 2025, the surplus raised funds from the "Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project" (RMB 704.10 million), the surplus raised funds from the "R&D Center Construction Project" (RMB 1,098.58 million), and the changed raised funds from the "Capability Improvement Project for Refrigerator Parts Self-Manufacturing" (RMB 4,494.12 million) total RMB 6,296.80 million and will be transferred to the new project "Electronic Technology Park and High-End Smart Home Appliances Industrial Park." This is a tentative amount, and the final amount will be based on the actual balance of the special account for raised funds after deducting payments upon actual transfer. The "Adjusted Investment Amount" in the table corresponds to the fundraising projects based on the actual transfer amount in February 2026. The difference is mainly due to bank interest income and cash management income. The new project "Electronic Technology Park and High-End Smart Home Appliances Industrial Park" plans to invest a total of RMB 6,344.61 million. | | Note 2: The portion of the fundraising project investment progress exceeding 100% is due to interest income and cash management income generated from the raised funds. | Appendix 2: 2025 Report on Changes in the Use of Raised Funds for Investment Projects Unit: RMB million | Changed Project | Original Committed Project | Raised Funds Committed for Changed Project (1) [Note 1] | Actual Amount Invested This Reporting Period (2) | Accumulated Investment Amount as of Period End (2) | Investment Progress (%) (3) = (2) / (1) | Project Reachable Date | Whether Expected Benefits Achieved This Reporting Period | Whether Expected Benefits Achieved | Whether Project Feasibility Significantly Changed | |---|---|---|---|---|---|---|---|---|---| | Electronic Technology Park and High-End Smart Home Appliances Industrial Park Project | Capability Improvement Project for Refrigerator Parts Self-Manufacturing | 6,344.61 | 0.00 | 0.00 | 0.00 | December 2028 | Not Applicable | Not Applicable | No | | Total | | 6,344.61 | 0.00 | 0.00 | 0.00 | | | | | | Explanation of Reasons for Changes, Decision-Making Procedures, and Information Disclosure (by Project) | Affected by the macroeconomic environment, downstream market demand, industry competition, and adjustments in the Company's strategic planning, the Company has been relatively cautious in the "Capability Improvement Project for Refrigerator Parts Self-Manufacturing" and has slowed down the construction progress. To ensure the effectiveness of the fundraising project and to allocate resources reasonably and effectively, the Company has decided to change the project based on its current actual operations and future development needs. The relevant construction investment will be temporarily suspended, and the surplus raised funds will be invested in the "Electronic Technology Park and High-End Smart Home Appliances Industrial Park" project. | | The Company held its 8th meeting of the Second Board of Directors and its 6th meeting of the Second Supervisory Board on December 11, 2025, and its 2025 Fourth Extraordinary General Meeting of Shareholders on December 29, 2025. Both meetings deliberated and approved the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects." For details, please refer to the "Announcement on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects" disclosed by the Company on the Juchao Information Network (www.cninfo.com.cn) on December 13, 2025 (Announcement No.: 2025-072). | | Reasons for Not Reaching Planned Progress or Expected Benefits (by Project) | Not Applicable | | Explanation of Significant Changes in the Feasibility of the Changed Project | Not Applicable | | Note 1: According to the "Proposal on Changing Some Fundraising Projects, Terminating Projects, and Investing Remaining Raised Funds in New Projects" deliberated and approved by the Company in December 2025, the surplus raised funds from the "Annual Production of 1 Million Units of Embedded Refrigerators and Other Refrigerator Products Project" (RMB 704.10 million), the surplus raised funds from the "R&D Center Construction Project" (RMB 1,098.58 million), and the changed raised funds from the "Capability Improvement Project for Refrigerator Parts Self-Manufacturing" (RMB 4,494.12 million) total RMB 6,296.80 million and will be transferred to the new project "Electronic Technology Park and High-End Smart Home Appliances Industrial Park." This is a tentative amount, and the final amount will be based on the actual balance of the special account for raised funds after deducting payments upon actual transfer. The "Raised Funds Committed for Changed Project" in the table is based on the actual transfer amount in February 2026. The difference is mainly due to bank interest income and cash management income. |