Progress Announcement on Using Part of Idle Raised Funds for Cash Management
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 major omissions.
Xi'an Sanjiao Defense Co., Ltd. (hereinafter referred to as the "Company") at its third session of the Board of Directors, the twenty-third meeting, the third session of the Supervisory Board, the eighteenth meeting, and the 2025 third extraordinary general meeting of shareholders, deliberated and approved the "Proposal on Using Part of Idle Raised Funds and Own Funds for Cash Management." It was agreed that without affecting the company's normal operations, the progress of raised fund investment projects, and ensuring fund safety, the company (including its subsidiaries) may use idle raised funds up to RMB 106,000 million (of which, idle raised funds from the issuance of convertible corporate bonds to unspecified targets shall not exceed RMB 12,000 million, and idle raised funds from the issuance of shares to specific targets shall not exceed RMB 94,000 million) and idle own funds up to RMB 200,000 million for cash management. The term of use is within 12 months from the date of approval by the general meeting of shareholders. Within the aforementioned limits, funds can be used on a revolving basis. Within the approved limits, the company's Board of Directors hereby requests the general meeting of shareholders to authorize the management to exercise this investment decision-making power and sign relevant contract documents. The company's finance department will be responsible for organizing the implementation. For details, please refer to the "Announcement on Using Part of Idle Raised Funds and Own Funds for Cash Management" disclosed by the company on the Juchao Information Network (www.cninfo.com.cn) on April 12, 2025 (Announcement No.: 2025-029). Recently, the company (including its subsidiaries) has used part of its idle raised funds for cash management. The specific situation is hereby announced as follows:
1. Situation of Using Part of Idle Raised Funds to Purchase Wealth Management Products
| Entrusted Party | Product Name | Related Party | Product Type | Purchase Amount (RMB million) | Start Date | Due Date/Redemption Date | Expected Annualized Yield | Fund Source |
|---|---|---|---|---|---|---|---|---|
| Bank of Liaoning | Structured Deposit (WBS2601193) | None | Principal-protected floating-income | 4,000.00 | 2026.3.3 | 2026.9.3 | 1.0%/1.90%/1.95% | Raised Funds |
2. Explanation of Related Party Relationship
The company has no related party relationship with Bank of Liaoning Co., Ltd.
3. Major Risk Warnings and Control Measures
1. Investment Risks
(1) Although the wealth management products purchased are low-risk products, the financial market is greatly affected by the macroeconomy, and it is not excluded that this investment will be affected by market fluctuations. (2) The company will intervene in a timely and appropriate manner according to the economic situation and changes in the financial market, so the actual return on short-term investments cannot be predicted.