Announcement on Changing Part of the Use of Raised Funds and Adding New Investment Projects and Implementing Entities, and Using Raised Funds to Increase Capital in Subsidiaries

Announcement on Changing Part of the Use of Raised Funds and Adding New Investment Projects and Implementing Entities, and Using Raised Funds to Increase Capital in Subsidiaries

Zhejiang Precision Integration Technology Co., Ltd. (hereinafter referred to as the "Company") held the 14th meeting of the 9th Board of Directors on December 18, 2025, and approved the proposal on changing part of the use of raised funds and adding new investment projects and implementing entities, as well as using raised funds to increase capital in subsidiaries. To improve the efficiency of fund utilization, and based on the company's strategic layout and future operational development plans in the carbon fiber industry, the company intends to change the use of part of the raised funds from the investment project "Intelligent Manufacturing Construction Project for Carbon Fiber and Composite Material Equipment," reallocating 250 million RMB to implement the new investment project "Precision Composite Intelligent Manufacturing Base Project." The new investment project will be implemented by the company's wholly-owned subsidiary, Precision (Wuhan) Composite Materials Co., Ltd. (hereinafter referred to as "Precision Wuhan Composite"). According to the relevant regulations of the "Shenzhen Stock Exchange Stock Listing Rules," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange - Standard Operation of Main Board Listed Companies," and the company's articles of association, the above matters do not constitute related party transactions or major asset restructuring as defined by the "Measures for the Administration of Major Asset Restructuring of Listed Companies," and still require submission to the company's shareholders' meeting for deliberation. The sponsor, Guotai Junan Securities Co., Ltd., has issued a non-objection verification opinion on this matter. After the above matters are approved by the company's shareholders' meeting, the company will promptly open a new special account for raised funds in accordance with legal regulations. The company and Precision Wuhan Composite will sign a raised fund supervision agreement with banks and sponsors, and will use the raised funds to increase capital in Precision Wuhan Composite according to the adjusted fund utilization plan, matching the progress of the new investment project. The amount of raised funds to be changed from the original investment project is 250 million RMB, accounting for 26.72% of the net amount raised from the issuance of shares to specific objects.

Overview of the Change in Part of the Use of Raised Funds

Basic Situation of Raised Funds

According to the "Approval on Agreeing to Zhejiang Precision Integration Technology Co., Ltd. to Issue Shares to Specific Objects" issued by the China Securities Regulatory Commission (CSRC) (Document No. [2024] 403), the company issued 64,633,440 shares of ordinary RMB shares (A shares) at a price of 14.59 RMB per share. The company and all members of the board of directors guarantee that the content of the information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.

The total amount of raised funds is 943,001,889.60 RMB. After deducting the non-taxable issuance expenses of 7,417,214.20 RMB, the actual net amount of raised funds is 935,584,675.40 RMB. The situation of the raised funds has been verified by Tianjian Certified Public Accountants (Special General Partnership), which issued a "Verification Report" (Tianjian Verification [2024] No. 510) on December 11, 2024. The original planned investment projects and fund utilization plan in the "Prospectus for Issuing Shares to Specific Objects" are as follows: