Zhejiang Hengwei Battery Co., Ltd. (hereinafter referred to as "the Company") held its 14th meeting of the 3rd Board of Directors on March 20, 2026, where it reviewed and approved the proposal on the use of idle raised funds for cash management. The Company and its subsidiaries are authorized to use no more than RMB 60 million or its equivalent in foreign currency (including the principal) of idle raised funds (including oversubscribed funds) for cash management, ensuring that it does not affect the construction of investment projects funded by raised funds and the normal operations of the Company and its subsidiaries. The usage period is twelve months from the date of the Board's approval, and within the above limits and time frame, the funds can be used in a rolling manner. The relevant information is announced as follows:
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Basic Situation of Raised Funds
Approved by the China Securities Regulatory Commission with document [2022] No. 52, and with the consent of the Shenzhen Stock Exchange, the Company publicly issued 25,333,400 shares of RMB ordinary shares (A shares) and listed on the Growth Enterprise Market, with an issue price of RMB 33.98, raising a total of RMB 860,828,932.00. After deducting related issuance expenses, the actual net raised funds amounted to RMB 756,145,417.04. The raised funds were transferred to the Company's designated account on March 4, 2022. Tianjian Accounting Firm (Special General Partnership) audited and issued Tianjian Verification Report [2022] No. 73. The Company has opened a special account for raised funds, implementing special account storage for the raised funds, and signed a tripartite supervision agreement on raised funds with the bank where the account is opened and the sponsor institution. -
Usage of Raised Funds
To integrate the Company's resources and further improve the efficiency of raised fund usage, the Company held the 13th meeting of the 2nd Board of Directors and the 13th meeting of the 2nd Supervisory Board on April 3, 2023. In April 2023, the Company and all members of the Board guaranteed that the content of information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions. On April 24, the 2022 annual shareholders' meeting was held, where the proposals on the construction of high-performance environmentally friendly alkaline and carbon batteries project and the change of raised fund investment projects, as well as the construction of button-type lithium manganese battery new construction and factory intelligent transformation project and the change of raised fund investment projects were approved. The Company will use all unused raised funds from the original project "High-performance Environmentally Friendly Battery New Construction and Intelligent Transformation Project" as of March 31, 2023, for the "High-performance Environmentally Friendly Alkaline and Carbon Batteries Project," and all unused raised funds from the original projects "Battery Technology R&D Center Construction Project" and "Intelligent Factory Information Management Platform Construction Project" as of March 31, 2023, for the "Button-type Lithium Manganese Battery New Construction and Factory Intelligent Transformation Project." On April 28, 2025, the Company held the 10th meeting of the 3rd Board of Directors and the 9th meeting of the 3rd Supervisory Board, and on May 20, 2025, the 2024 annual shareholders' meeting was held, where the proposal on using oversubscribed funds for ongoing investment projects was approved. The Company agreed to use all unused oversubscribed funds from the initial public offering (including interest, cash management income, etc.) for the ongoing investment project "High-performance Environmentally Friendly Alkaline and Carbon Batteries Project" as of April 30, 2025, and to proportionally reduce the amount of self-owned funds to be invested.