Securities Code: 002471 Securities Abbreviation: Zhongchao Holdings Announcement Number: 2026-040 Jiangsu Zhongchao Holdings Co., Ltd. 2023 Annual Report on the Feasibility Analysis of Using Raised Funds for Specific Object Issuance of Shares (Fifth Revision) The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions. To further consolidate and enhance the core competitiveness of Jiangsu Zhongchao Holdings Co., Ltd. (hereinafter referred to as the "Company") and strengthen its sustainable profitability, the Company plans to raise funds through a specific object issuance of shares. The feasibility analysis of the use of raised funds by the Company's Board of Directors is as follows: The abbreviations used in this feasibility analysis report have the same meaning as those in the "Jiangsu Zhongchao Holdings Co., Ltd. 2023 Specific Object Issuance of Shares Plan (Fifth Revision)".
I. Plan for the Use of Raised Funds The total amount of funds to be raised in this issuance (including issuance expenses) shall not exceed 992.2 million yuan. After deducting issuance expenses, the raised funds will be used for the following projects: Unit: Ten Thousand Yuan
| No. | Project Name | Implementing Entity | Total Project Investment | Amount of Raised Funds to be Invested |
|---|---|---|---|---|
| 1 | Manufacturing Project for High-end Aerospace Engine and Gas Turbine Components | Jiangsu Jingzhu | 100,000 | 70,000 |
| 2 | R&D Project for Advanced High-temperature Alloy Precision Molding Technology | Jiangsu Jingzhu | 15,000 | 15,000 |
| 3 | Supplementing Working Capital | Zhongchao Holdings | 36,000 | 14,220 |
| Total | 151,000 | 99,220 | ||
| Note: In accordance with relevant laws, regulations, and normative documents, and considering the Company's actual situation and fund arrangements, the Company has reduced the total amount of raised funds by 217.8 million yuan, which includes financial investment amounts newly invested or to be invested within six months prior to the Board of Directors' resolution for this issuance and up to the issuance date. | ||||
| Before the raised funds are in place, the Company may make advance investments based on the actual needs of the investment projects, and will reimburse them after the raised funds are in place. If the net amount of raised funds after deducting issuance expenses is less than the planned investment amount, the Board of Directors may adjust the order and amount of investment in the raised funds based on the actual needs of the projects, without changing the investment projects, and the shortfall will be covered by the Company's own funds. | ||||
| If the total amount of funds to be raised in this specific object issuance of shares is adjusted due to changes in regulatory policies or requirements of the issuance registration documents, it will be adjusted accordingly at that time. |
II. Details of the Use of Raised Funds (I) Manufacturing Project for High-end Aerospace Engine and Gas Turbine Components
- Project Basic Situation The total investment in the manufacturing project for high-end aerospace engine and gas turbine components is 1 billion yuan. It is planned to use 700 million yuan of raised funds for implementation, which will be carried out by Jiangsu Jingzhu, a wholly-owned subsidiary. The construction site is located in Yixing City, Jiangsu Province. By importing a batch of high-end equipment such as a dewaxing machine, automatic shell-making robots and drying systems, automatic control three-chamber vacuum furnace casting systems, and hot isostatic pressing furnaces, vacuum heat treatment furnaces, and high-precision three-coordinate measuring machines, and through product design digitalization, process equipment digitalization, and management informatization, the project will achieve data interoperability, human-computer interaction, and flexible manufacturing, and build a digital workshop and intelligent factory for high-temperature alloy precision castings. Upon completion of the project, Jiangsu Jingzhu will form a batch production capacity of 1,000 tons of high-temperature alloy precision castings per year. The main products include turbine casings, turbine rotors and guide vanes, diffusers, bearing housings, combustion chamber nozzles, swirlers, and guide vanes.