Zhongying Electronics Co., Ltd.
2026 Annual Report on the Feasibility of Using Raised Funds for Issuing Shares to Specific Objects (Revised Draft)
June 2026
To enhance the company's core competitiveness and profitability, Zhongying Electronics Co., Ltd. (hereinafter referred to as the "Company") plans to issue A-shares to specific objects to raise funds (hereinafter referred to as the "Offering"). The Board of Directors has analyzed the feasibility of using the raised funds for the Offering as follows:
I. Plan for the Use of Raised Funds
The total amount of funds to be raised from the Offering to specific objects shall not exceed RMB 100,000.00 million (inclusive). After deducting issuance expenses, the funds will be used for the following projects:
| No. | Project Name | Estimated Investment (RMB million) | Amount of Raised Funds to be Used (RMB million) |
|---|---|---|---|
| 1 | R&D and Industrialization Project for High-end Industrial-grade (Automotive-grade) Analog and Mixed-Signal Chips | 23,067.40 | 15,500.00 |
| 2 | R&D and Industrialization Project for High-end Industrial-grade (Automotive-grade) Main Control SoC (with Intelligence) | 63,951.80 | 42,500.00 |
| 3 | Supplement Working Capital | 42,000.00 | 42,000.00 |
| Total | 129,019.20 | 100,000.00 |
Before the raised funds for the Offering are in place, the Company will make advance investments using its own funds or self-raised funds based on the actual progress of the investment projects. These will be replaced after the raised funds are in place according to the prescribed procedures. If the actual net amount of raised funds is less than the planned investment amount, the Company will adjust and finally determine the specific investment amount for each project within the scope of the determined investment projects for the Offering. Any shortfall will be resolved by the Company's own funds or self-raised funds.
If the total amount of raised funds for this Offering is adjusted due to changes in regulatory policies or requirements in the issuance registration documents, it will be adjusted accordingly at that time.
II. Specifics and Feasibility Analysis of Projects Funded by Raised Capital
(I) R&D and Industrialization Project for High-end Industrial-grade (Automotive-grade) Analog and Mixed-Signal Chips
1. Project Basic Information
| Project Name | R&D and Industrialization Project for High-end Industrial-grade (Automotive-grade) Analog and Mixed-Signal Chips |
|---|---|
| Implementing Entity | Zhongying Electronics Co., Ltd., Xi'an Zhongying Electronics Co., Ltd., Hefei Zhongying Electronics Co., Ltd. |
| Total Project Investment | 23,067.40 million RMB |
Project Construction Period
4 years