I. Basic Information on Raised Funds
(1) Actual Amount Raised and Fund Arrival Status
According to the approval issued by the China Securities Regulatory Commission (CSRC) regarding the initial public offering of Hangzhou Heshun Technology Co., Ltd. (CSRC Permit [2022] No. 25), and with the consent of the Shenzhen Stock Exchange, Hangzhou Heshun Technology Co., Ltd. conducted its initial public offering of 20 million ordinary shares (A shares) at a price of RMB 56.69 per share on March 23, 2022. The total amount raised was RMB 1,133,800,000.00, with net proceeds of RMB 1,018,074,934.10 after deducting issuance costs of RMB 115,725,065.90. The raised funds were fully received on March 18, 2022, and Tianjian Accounting Firm (Special General Partnership) verified the fund arrival status, issuing a verification report (Tianjian Verification [2022] No. 92) on the same day.
(2) Usage and Balance of Raised Funds
As of December 31, 2025, the cumulative usage of the raised funds is as follows:
| Item | Amount (RMB 10,000) |
|---|---|
| Net amount raised (A) | 101,807.49 |
| Cumulative amount used at the beginning of the period (B1) | 86,962.46 |
| Net interest income (B2) | 3,837.14 |
| Permanent supplement to working capital (B3) | 4,104.07 |
| Current period usage (C1) | 14,930.44 |
| Current period interest income (C2) | 353.70 |
| Current period permanent supplement to working capital (C3) | 0.00 |
| Cumulative amount used at the end of the period (D1=B1+C1) | 101,892.90 |
| Cumulative interest income at the end of the period (D2=B2+C2) | 4,190.84 |
| Cumulative permanent supplement to working capital at the end of the period (D3=B3+C3) | 4,104.07 |
| Remaining raised funds to be settled (E=A-D1+D2-D3) | 1.36 |
| Actual remaining raised funds (F) | 1.36 |
| Difference (G=E-F) | 0.00 |
II. Storage and Management of Raised Funds
In accordance with the "Shenzhen Stock Exchange GEM Listing Rules" and the "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 2 - Standard Operations for GEM Listed Companies (2025 Revision)," the company has revised its "Management System for Raised Funds," which was approved at the 2022 Annual General Meeting. This system regulates the storage, usage, changes, supervision, and accountability of raised funds, clarifying the approval authority, decision-making procedures, risk control measures, and information disclosure requirements for the use of raised funds, ensuring the normal progress of projects funded by raised funds. The company implements dedicated account storage for raised funds, establishing special accounts at banks. On March 18, 2022, the company, along with its sponsor Dongxing Securities Co., Ltd., signed a "Tripartite Supervision Agreement" with Ningbo Bank Co., Ltd. Hangzhou Linping Branch, Bank of Communications Co., Ltd. Hangzhou Heping Branch, and China Merchants Bank Co., Ltd. Hangzhou Linping Branch. On April 6, 2022, the company signed a "Tripartite Supervision Agreement" with China Construction Bank Co., Ltd. Zhejiang Branch. On December 26, 2023, the company and its subsidiary Hangzhou Hexing Carbon Fiber Technology Co., Ltd., along with the sponsor Dongxing Securities Co., Ltd., signed a "Quadripartite Supervision Agreement" with China Merchants Bank Co., Ltd. Hangzhou Linping Branch, clarifying the rights and obligations of all parties. The tripartite and quadripartite supervision agreements do not differ significantly from the Shenzhen Stock Exchange's model agreements, and the company has strictly complied with these agreements in the use of raised funds. As of December 31, 2025, the company's subsidiary Hangzhou Hexing Carbon Fiber Technology Co., Ltd. has one dedicated account for raised funds, with the following storage status:
| Bank | Account Name | Account Number | Balance (RMB) |
|---|---|---|---|
| China Merchants Bank Co., Ltd. Hangzhou Linping Branch | Hangzhou Hexing Carbon Fiber Technology Co., Ltd. | 571920467810008 | 13,557.44 |
| Total | 13,557.44 |