I. Basic Situation of Fundraising
Approved by the China Securities Regulatory Commission (CSRC) document [2023] No. 251 and with the consent of the Shenzhen Stock Exchange, Zhejiang Mining Heavy Industry Co., Ltd. (hereinafter referred to as "Zhejiang Mining" or "the Company") issued 3,200,000 convertible corporate bonds, each with a face value of 100 RMB, raising a total of 320 million RMB. After deducting underwriting and sponsorship fees of 6.6038 million RMB (excluding VAT), the net fundraising amount is 313.3962 million RMB, which has been deposited into the fundraising supervision account of Zhejiang Mining by the lead underwriter, Guotai Junan Securities Co., Ltd., on March 15, 2023. After deducting additional external costs directly related to the issuance of equity securities, including legal fees, audit and verification fees, credit rating fees, and information disclosure and issuance procedures totaling 1.912 million RMB, the net amount of the fundraising is 311.4842 million RMB. The above fundraising situation has been verified by Zhonghui Certified Public Accountants (Special General Partnership), which issued verification report No. [2023] 1458.
II. Status of Fundraising Investment Projects and Fund Usage
As of December 31, 2025, the status of the fundraising investment projects and usage of funds is as follows:
| No. | Fundraising Investment Project | Total Commitment Amount | Cumulative Investment Amount | Investment Progress |
|---|---|---|---|---|
| 1 | Construction of Demonstration Base for Recycling of Waste New Energy Battery Equipment | 25,000.00 | 3,560.35 | 14.24% |
| 2 | Construction of Production Base for Recycling Equipment of Construction Waste (Phase I) | 7,000.00 | 1,932.71 | 27.61% |
| Total | 32,000.00 | 5,493.06 |
III. Status of Fundraising Special Account
As of December 31, 2025, the balance of the fundraising special account is as follows:
| Bank Name | Bank Account | Account Type | Balance |
|---|---|---|---|
| Zhejiang Changxing Rural Commercial Bank Co., Ltd. He Ping Branch | 201000329163533 | Fundraising Special Account | 4,177.56 |
| CITIC Bank Co., Ltd. Huzhou Changxing Branch | 8110801012802656856 | Fundraising Special Account | 5,345.19 |
| Zhejiang Changxing Rural Commercial Bank Co., Ltd. He Ping Branch | 203000062373494 | Cash Management Special Settlement Account | 1,000.00 |
| Zhejiang Changxing Rural Commercial Bank Co., Ltd. He Ping Branch | 203000062374392 | Cash Management Special Settlement Account | 2,000.00 |
| Zhejiang Changxing Rural Commercial Bank Co., Ltd. He Ping Branch | 203000062375321 | Cash Management Special Settlement Account | 15,000.00 |
| Total | 27,522.75 |
IV. Specific Situation and Main Reasons for Project Delay
(A) Delay Situation of Fundraising Investment Projects
Based on a cautious principle and considering the actual construction situation and investment progress of the fundraising projects, the Company intends to adjust the date for the projects to reach the predetermined usable state, while keeping the fundraising investment purposes and project investment scale unchanged, as follows:
| No. | Fundraising Investment Project Name | Original Usable State Date | Adjusted Usable State Date |
|---|---|---|---|
| 1 | Construction of Demonstration Base for Recycling of Waste New Energy Battery Equipment | March 31, 2026 | September 30, 2027 |
| 2 | Construction of Production Base for Recycling Equipment of Construction Waste (Phase I) | March 31, 2026 | September 30, 2027 |