Shenzhen Magmite Electric Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
I. Use of Idle Funds from the 2019 Public Issuance of Convertible Bonds for Cash Management
On April 28, 2026, the Company held the fourth meeting of the sixth Board of Directors and on May 27, 2026, held the 2025 Annual General Meeting, where it approved the proposal on the use of temporarily idle raised funds for cash management. To improve the efficiency of fund utilization, reduce financial costs, and promote the development of the Company's business, while adhering to the principle of maximizing shareholder interests and ensuring the funding needs of investment projects, the Company agreed to use up to 50 million RMB of temporarily idle funds from the 2019 convertible bonds for cash management, with a term not exceeding 12 months, and the above amount can be rolled over within the validity period of the 2025 Annual General Meeting resolution. For specific details, please refer to the announcement published by the Company on April 29, 2026, on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-035).
(1) Situation of Funds Raised from the 2019 Public Issuance of Convertible Bonds
According to the approval from the China Securities Regulatory Commission (CSRC) on the public issuance of convertible bonds by Shenzhen Magmite Electric Co., Ltd. (CSRC Permit [2019] No. 2280), the Company publicly issued convertible bonds with a total face value of 655 million RMB in 2019, with each bond having a face value of 100 RMB, totaling 6.55 million bonds, with a term of 6 years. Zhonghui Certified Public Accountants (Special General Partnership) verified the funds received on January 2, 2020, and issued a verification report (Zhonghui Verification [2020] No. 0006), with a total raised amount of 655,000,000.00 RMB. After deducting underwriting and sponsorship fees of 4,000,000.00 RMB, the actual net amount received was 651,000,000.00 RMB. The raised funds were deposited into a special account at China Minsheng Bank Co., Ltd., Shenzhen Bao'an Branch on January 2, 2020, with account number 2611566866. After deducting additional external costs directly related to the issuance of convertible bonds, such as legal fees, accounting fees, credit rating fees, issuance fees, information disclosure fees, and roadshow promotion fees totaling 2,552,358.00 RMB, the net amount of raised funds was 648,447,642.00 RMB. The Company has implemented a special account storage system for the raised funds.
(2) Specific Situation of Using Idle Raised Funds for Cash Management
- From May 1, 2026, to May 31, 2026, the Company continued to use idle raised funds from the 2019 public issuance of convertible bonds for cash management: | No. | Trustee | Product Name | Amount (10,000 RMB) | Start Date | Expiry Date | Product Type | Expected Annual Yield | Source of Funds | |-----|---------|--------------|---------------------|------------|-------------|---------------|----------------------|------------------| | 1 | Pudong Development Bank | Liduo Duo Company Stable Profit 26JG3149 (1-month early bird) | 2500.00 | 2026/5/11 | 2026/6/11 | Principal-protected | 0.70% or 1.65% or 1.85% | Idle raised funds |
II. Use of Idle Funds from the 2022 Public Issuance of Convertible Bonds for Cash Management
On April 28, 2026, the Company held the fourth meeting of the sixth Board of Directors and on May 27, 2026, held the 2025 Annual General Meeting, where it approved the proposal to extend the authorization period for using idle raised funds for cash management, agreeing to extend the authorization period for one item of using idle raised funds for cash management until June 4, 2026. For specific details, please refer to the announcement published by the Company on April 29, 2025, on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-036).