Announcement on Progress of Using Partially Idle Raised 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 material omissions.
Xuchang Far East Transmission Axle Co., Ltd. (hereinafter referred to as the "Company") held the 17th meeting of the 6th Board of Directors on October 23, 2025, and reviewed and approved the "Proposal on the Company's Use of Partially Idle Raised Funds for Cash Management." To improve the efficiency of idle raised funds, and based on the principle of maximizing shareholder interests, the Company agreed to use a maximum of RMB 430 million of temporarily idle raised funds for cash management, provided that the investment products are not pledged. The term is within 12 months from the date the Board of Directors approved it. Within this limit and term, funds can be used on a revolving basis. For details, please refer to the "Announcement on the Company's Use of Partially Idle Raised Funds for Cash Management" published by the Company on October 25, 2025, in designated media and on the Giant Information Network (http://www.cninfo.com.cn).
I. Basic Situation of Current Cash Management
On May 12, 2026, the Company signed the "China Minsheng Bank Structured Deposit Product Contract (Institutional Version)" with the Zhengzhou Branch of China Minsheng Bank (hereinafter referred to as "Minsheng Bank"). The Company used RMB 16,000 million of temporarily idle raised funds to purchase Minsheng Bank's "Jubilee Exchange Rate - AUD/USD Call Barrier Binary Structured Deposit" wealth management product. The details are as follows:
| Product Name | Product Code | Product Type | Product Term | Start Date | End Date | Expected Annualized Yield
| 挂钩标的 | 澳元对美元汇率 |
|---|---|
| 关联关系说明 | 公司与民生银行无关联关系 |
As of the date of this announcement, the balance of the Company's cash management with temporarily idle raised funds (including the current amount) is RMB 31,000 million, which does not exceed the limit approved by the Board of Directors for cash management of raised funds.