Securities Code: 300127 Securities Abbreviation: Galaxy Magnets Announcement No.: 2026-008
Chengdu Galaxy Magnets Co., Ltd. Announcement on Using Remaining Raised Funds to Permanently Supplement Working Capital
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and are free from any false representations, misleading statements, or material omissions.
Chengdu Galaxy Magnets Co., Ltd. (hereinafter referred to as the "Company") at its Eighth Board of Directors' Sixth Meeting held on March 26, 2026, deliberated and passed the "Proposal on Using All Remaining Raised Funds to Permanently Supplement Working Capital," agreeing to use all remaining raised funds to permanently supplement working capital. The relevant information is hereby announced as follows:
I. Status of Raised Funds and Management
The Company, with the approval of the China Securities Regulatory Commission's "Approval for the Initial Public Offering of Shares by Chengdu Galaxy Magnets Co., Ltd. and Listing on the ChiNext Market" (Zhengjian Permit [2010] No. 1236), issued 41 million ordinary shares (A shares) at an issue price of RMB 18.00 per share on September 20, 2010, through offline inquiry and online subscription pricing by the lead underwriter, Guosen Securities Co., Ltd. The total amount of raised funds received was RMB 738,000,000.00. After deducting issuance expenses of RMB 41,426,765.84, the net amount of raised funds actually received was RMB 696,573,234.16. Of this amount, the Company originally planned to raise RMB 186,600,000.00, with the remaining RMB 509,973,234.16 designated for working capital related to the main business (surplus raised funds). The raised funds have been verified by Sichuan Huaxin (Group) Certified Public Accountants Co., Ltd., which issued the Capital Verification Report (Chuan Huaxin Verification [2010] No. 65). The Company's raised funds are deposited in a dedicated account opened by the Company for raised funds.
II. Previously Disclosed Use of Other Funds Related to the Main Business (Surplus Raised Funds)
(I) On November 8, 2010, the Company's Third Board of Directors' Fourth Meeting, with 8 votes in favor, 0 against, and 0 abstentions, deliberated and passed the "Proposal on the Use Plan for Working Capital Related to Other Main Businesses." The use of other working capital related to the main business was as follows:
- RMB 72.72 million of working capital related to other main businesses was used to prepay bank loans. This use plan was approved by the Company's Board of Directors and Supervisory Board, and independent directors and the sponsor issued clear opinions. It was announced and implemented on November 15, 2010.
- RMB 29.00 million of working capital related to other main businesses was used for permanent supplementation of working capital. This use plan was approved by the Company's Board of Directors and Supervisory Board, and independent directors and the sponsor issued clear opinions. It was announced and implemented on November 10, 2010.
(II) On February 25, 2011, the Company's Third Board of Directors' Sixth Meeting, with 8 votes in favor, 0 against, and 0 abstentions, deliberated and passed the "Proposal on Investing RMB 24 million in the Construction of Factory Building No. 7." The proposal agreed to use RMB 22 million of working capital related to other main businesses (surplus raised funds) for the construction of the Company's Factory Building No. 7. This use plan was approved by the Company's Board of Directors and Supervisory Board, and independent directors and the sponsor issued clear opinions. It was announced and implemented. On March 6, 2015, the Company's Fourth Board of Directors' Ninth Meeting deliberated and passed the "Proposal on the Use of Surplus Raised Funds from the Factory Building No. 7 Project." The actual amount of surplus raised funds used for the Factory Building No. 7 project was RMB 20,389,655.93, with the remaining surplus raised funds of RMB 1,610,344.07 remaining in the Company's surplus raised funds account.