Leon Technology Co., Ltd.
2026 Annual Report on the Argumentation and Analysis of the Plan for Issuing Shares to Specific Objects Through Simplified Procedures
July 2026
Leon Technology Co., Ltd. (hereinafter referred to as "the Company" or "Leon Technology") held its 11th meeting of the Fifth Board of Directors on July 28, 2026, and deliberated and passed the relevant proposals for the Company's 2026 issuance of shares to specific objects through simplified procedures. In accordance with the "Administrative Measures for the Registration of Securities Issuances by Listed Companies" and other relevant regulations, the Company's Board of Directors has compiled this argumentation and analysis report on the plan for issuing shares to specific objects through simplified procedures (hereinafter referred to as "this issuance").
To meet the Company's business development needs, enhance its capital strength, and improve its profitability and market competitiveness, in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Articles of Association," and "Administrative Measures for the Registration of Securities Issuances by Listed Companies," and other relevant laws, administrative regulations, departmental rules, and normative documents, the Company plans to implement the 2026 issuance of shares to specific objects through simplified procedures. The number of shares to be issued shall not exceed 70,000,000 shares (inclusive), and the total amount of capital to be raised shall not exceed RMB 255,000,000. After deducting relevant issuance expenses, the net proceeds will be used for the Leon Cloud Data Artificial Intelligence Computing Power Resource Pool project and to supplement working capital.
Unless otherwise specified, the terms used in this report have the same meaning as defined in the "Proposal for Leon Technology Co., Ltd.'s 2026 Issuance of Shares to Specific Objects Through Simplified Procedures."
I. Background and Objectives of This Issuance
(I) Background of This Issuance of Shares
- Deepening of National "Artificial Intelligence+" Strategy and Increased Policy Support for Intelligent Computing Infrastructure Construction
In recent years, China has made computing infrastructure the core foundation for the development of the digital economy, with continuous policy support and increasingly refined top-level design. The "15th Five-Year Plan for National Economic and Social Development" proposes to deepen the "East Data West Computing" initiative, build a multi-level computing infrastructure system, and establish an integrated national computing network. It also calls for strengthening computing infrastructure support, coordinating layout, and orderly construction of computing facilities, and promoting the large-scale, intensive, green, and inclusive development of computing resources. In May 2025, the Cyberspace Administration of China issued the "Digital China Construction Plan 2025," which proposes to gradually achieve efficient supply-demand matching between computing power demand and national hub computing power resources in various regions. In August 2025, the State Council issued the "Opinions on Deepening the Implementation of the 'Artificial Intelligence+' Action," which explicitly calls for strengthening the unified planning of intelligent computing power, accelerating technological breakthroughs and engineering implementation of ultra-large-scale intelligent computing clusters, optimizing the layout of national intelligent computing resources, improving the integrated national computing network, strengthening the interconnection and supply-demand matching of intelligent computing power, and innovating the operational model of intelligent computing infrastructure to make intelligent computing power supply inclusive, easy to use, economical, efficient, green, and secure.