Securities Code: 002406 Securities Abbreviation: Far East Transmission Announcement Number: 2026-007 Xuchang Far East Drive Shaft Co., Ltd. Special Report on the Storage 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 major omissions.
I. Basic Situation of Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval on Approving Xuchang Far East Drive Shaft Co., Ltd.'s Public Offering of Convertible Corporate Bonds" (Zhengjian Permit [2019] No. 1492) and the consent of the Shenzhen Stock Exchange, the Company publicly issued convertible corporate bonds with a face value of RMB 893,700,000.00, with a term of 6 years. As of September 27, 2019, the Company had publicly issued 8,937,000 convertible corporate bonds to the public, with a total raised capital of RMB 893,700,000.00. After deducting underwriting and sponsorship fees of RMB 12,171,250.00, the raised funds were RMB 881,528,750.00. This amount was deposited into the Company's special account for raised funds by Huachuang Securities Co., Ltd. on September 27, 2019 (of which, RMB 801,528,750.00 was deposited into the Xuchang Branch of China Merchants Bank Co., Ltd., and RMB 80,000,000.00 was deposited into the Xuchang Labor Road Branch of Bank of Communications Co., Ltd.). After deducting other issuance expenses of RMB 3,490,000.00, the net amount of raised funds was RMB 878,038,750.00.
As of September 27, 2019, all the raised funds from the Company's aforementioned issuance were in place and have been verified by the "Capital Verification Report on the Actual Collection of Subscription Funds for the Public Offering of Convertible Corporate Bonds by Xuchang Far East Drive Shaft Co., Ltd." (Huayuan Audit [2019] No. 000394) issued by Dahua Certified Public Accountants (Special General Partnership).
As of December 31, 2025, the Company had cumulatively invested RMB 557,013,588.33 in raised fund projects, of which: RMB 79,938,463.08 was the Company's own funds used to invest in raised fund projects prior to the receipt of raised funds; RMB 424,027,212.94 was used from raised funds during the accounting period from September 28, 2019, to December 31, 2024; and RMB 53,047,912.31 was used from raised funds in the current year. As of December 31, 2025, the balance of raised funds was RMB 420,287,359.46, of which: bank deposits amounted to RMB 10,287,359.46, and wealth management products purchased amounted to RMB 410,000,000.00.
II. Management of Raised Funds
To regulate the management and use of raised funds and protect the rights and interests of investors, the Company has formulated the "Management Measures for Raised Funds of Xuchang Far East Drive Shaft Co., Ltd." (hereinafter referred to as the "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 "Main Board Listing Rules of the Shenzhen Stock Exchange," and the "Guiding Opinions on the Regulation of Listed Companies on the Shenzhen Stock Exchange No. 1 – Main Board Listed Company Normative Operation," etc., and combined with the Company's actual situation. This "Management System" was deliberated and approved by the first meeting of the fifth board of directors and was revised and approved by the fourth meeting of the tenth board of directors.