Stock Code: 002296 Company Abbreviation: Huihuang Technology Announcement No.: 2026-011 Henan Huihuang Technology Co., Ltd. Announcement on Using Idle Own Funds for Cash Management The Company and all members of the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions. Key Content Highlights:
- Investment types: Products issued by prudent financial institutions such as commercial banks and securities companies, with high safety and liquidity, including but not limited to bank wealth management products, bonds, securities company income certificates, asset management plans, fixed-income financial derivatives, and other low-risk products.
- Investment amount: Idle own funds not exceeding RMB 30,000 million. The authorized amount can be used on a revolving basis within the validity period.
- Special Risk Warning: The wealth management products that the Company plans to purchase with idle own funds have high safety and are low-risk investment products. However, they are significantly affected by macroeconomic influences in the financial market, and the investment returns have considerable uncertainty. The Company will invest appropriately based on economic conditions and changes in the financial market, but it cannot rule out the risk that actual investment returns may fall short of expectations due to market fluctuations; or in extreme circumstances, the possibility of capital loss due to force majeure events severely disrupting the normal order of the financial market. Investors are kindly requested to pay attention to investment risks. Henan Huihuang Technology Co., Ltd. (hereinafter referred to as "Huihuang Technology" or the "Company") deliberated and passed the "Proposal on Using Idle Own Funds for Cash Management" at the Fifth Meeting of the Ninth Board of Directors held on April 27, 2026. It was agreed that the Company and its holding subsidiaries would use idle own funds not exceeding RMB 30,000 million to purchase wealth management products with high safety and liquidity. This proposal needs to be submitted to the Company's shareholders' meeting for approval. The specific details are as follows: I. Overview of Using Idle Own Funds for Cash Management
- Investment Objective: Under the premise of not affecting the normal operations of the Company and its holding subsidiaries and ensuring investment risks are controllable, a portion of idle own funds will be used for cash management to improve the utilization efficiency and returns of idle own funds of the Company and its holding subsidiaries, and to generate more investment returns for the Company and shareholders.
- Investing Entity: The Company and its holding subsidiaries.
- Transaction Counterparties: Financial institutions that have no relationship with the Company and its holding subsidiaries.
- Investment Quota and Duration: The total quota for cash management will not exceed RMB 30,000 million. This quota includes amounts reinvested from wealth management returns. At any point in time, the amount of subscriptions shall not exceed RMB 30,000 million. Within this quota, funds can be used on a revolving basis. The validity period is from the date of approval by the 2025 Annual Shareholders' Meeting to the date of the 2026 Annual Shareholders' Meeting. The investment period for a single wealth management product shall not exceed three years.
- Investment Types: Under the premise of ensuring safety and liquidity, investments will be made in a timely manner in products with high safety and liquidity issued by prudent financial institutions such as commercial banks and securities companies, including but not limited to bank wealth management products, bonds, securities company income certificates, asset management plans, fixed-income financial derivatives, and other low-risk products.
- Source of Funds: The Company plans to make these investments using idle own funds, provided that the funds required for the normal operation and development of the Company and its holding subsidiaries are ensured. The current use of idle own funds for cash management does not constitute a related-party transaction, is not a major asset restructuring, and will not affect the Company's normal production and operation activities. II. Deliberation Procedures The matter of the Company using idle own funds for cash management has been reviewed and approved by the Second Meeting of the Ninth Board of Directors' Audit Committee in 2026 and the Fifth Meeting of the Ninth Board of Directors. This matter still needs to be submitted for approval at the Company's 2025 Annual Shareholders' Meeting. After the cash management matter is approved by the shareholders' meeting, within the quota and validity period, the Company's Chairman will be authorized to sign relevant documents within the specified quota. The Finance Department will be responsible for the specific implementation work. III. Investment Risks and Risk Control Measures (I) Investment Risks
- The cash management products that the Company plans to purchase with idle own funds are characterized by high safety, good liquidity, and belong to low-risk categories. However, the financial market is significantly affected by macroeconomic conditions, and it is not possible to rule out the impact of market fluctuations on this investment.
- The Company will invest appropriately based on economic conditions and changes in the financial market, therefore the actual investment returns are unpredictable.
- Operational risks of relevant personnel. (II) Measures to be Taken Against Investment Risks
- The Board of Directors proposes that the Shareholders' Meeting approve and authorize the Chairman of the Company to sign relevant contract documents within the above investment quota. The Chief Financial Officer will be responsible for organizing the implementation. The relevant personnel of the Company's Finance Department will formulate the types, terms, and amounts of products to be purchased based on the daily surplus of funds, and implementation can only proceed after obtaining approval from the Chief Financial Officer.
- The Chief Financial Officer of the Company shall promptly analyze and track the investment direction and project progress. If it is assessed that there are situations that may affect the safety of company funds or the demand for normal fund liquidity, corresponding redemption measures will be taken promptly.
- The Company's internal audit department will be responsible for auditing and supervising the use of funds and the progress of the projects. A comprehensive review of all product investment projects will be conducted regularly. Opinions will be issued on whether the types, terms, and amounts of investment products and the fulfillment of authorization and approval procedures comply with regulations. Any issues found will be reported to the Board of Directors in a timely manner.
- The Company's independent directors and the Audit Committee have the right to supervise and inspect the use of funds. Professional institutions may be engaged for auditing if necessary. IV. Impact on the Company Based on the principles of standardized operation, risk prevention, prudent investment, and capital preservation and appreciation, the Company will purchase low-risk wealth management products with high safety and liquidity using a moderate amount of idle own funds, provided that the normal development of the Company's main business and the safety of funds are ensured. This will not affect the normal operation of the Company's main business. The Company's use of idle own funds for cash management will help improve the Company's returns and fund utilization efficiency, and generate more investment returns for the Company and its shareholders. The transaction prices will be based on fair market prices, adhering to the principles of openness, fairness, and impartiality, and will not harm the interests of the Company and its shareholders, especially minority shareholders and non-related shareholders. The Company will make corresponding accounting treatments based on the nature of the purchased wealth management products in accordance with the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments" and other relevant regulations. The specific treatment will be subject to the annual audit results. Hereby announced. Board of Directors of Henan Huihuang Technology Co., Ltd. 2026 April 28