Announcement on the Termination and Closure of Some Raised Fund Projects and Permanent Supplementation of Idle Raised Funds to Working Capital
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.
Shanghai Zhenlan Instrument Technology Co., Ltd. (hereinafter referred to as the "Company") held its 20th extraordinary meeting of the Sixth Board of Directors on July 20, 2026, and approved the "Proposal on the Termination and Closure of Some Raised Fund Projects and Permanent Supplementation of Idle Raised Funds." The proposal agrees to terminate a sub-project under the "Shanghai Zhenlan Instrument Technology Co., Ltd. Base Construction Project," which was a project for the Company's initial public offering of shares, and to close another sub-project (Shanghai R&D Center Construction Project). The remaining raised funds will be permanently used to supplement working capital. This matter has been approved by the Board of Directors and requires further approval from the Shareholders' Meeting. The relevant situation is hereby announced as follows:
I. Basic Situation of Raised Funds and Raised Fund Investment Projects
As approved by the China Securities Regulatory Commission's Approval of Registration for Initial Public Offering of Shares (Zheng Jian Xu Ke [2022] No. 2326), Zhenlan Instrument issued 73.00 million shares of RMB ordinary shares at an issuance price of RMB 26.80 per share. The total amount of raised funds was RMB 195,640.00 million. After deducting issuance expenses, the net amount of raised funds was RMB 185,776.96 million. The aforementioned raised funds were deposited into the Company's special account for raised funds on February 15, 2023. Rongcheng Certified Public Accountants (Special General Partnership) verified this and issued the Capital Verification Report (Rong Cheng Yan Zi [2023] 230Z0037).
Following the review of the second meeting of the Fifth Board of Directors, the first extraordinary general meeting of shareholders in 2021, the fourth extraordinary meeting of the Fifth Board of Directors, and the seventeenth extraordinary meeting of the Sixth Board of Directors and the third extraordinary general meeting of shareholders in 2025, the situation of the Company's raised fund investment projects before and after adjustments is as follows:
| Project | Commitment Raised Fund Investment (RMB million) | Adjusted Raised Fund Investment (RMB million) |
|---|---|---|
| 1. Shanghai Zhenlan Instrument Technology Co., Ltd. Base Construction Project | 61,170.75 | 61,170.75 |
| (1) Shanghai Metering Instrument Construction Project | 47,957.50 | 47,957.50 |
| (2) Shanghai R&D Center Construction Project | 13,213.25 | 13,213.25 |
| 2. Zhenlan Instrument Technology Co., Ltd. Production Base Gas Meter Capacity Expansion Project | 77,625.00 | 25,077.55 |
| 3. Shanghai Zhenlan Instrument Technology Co., Ltd. New Water Meter Production Base Project | 38,000.00 | 38,000.00 |
| 4. Supplementation of Working Capital | 14,547.46 | 14,547.46 |
| 5. Supplementation of Working Capital | 35,000.00 | 35,000.00 |
| Total Commitment Investment Projects | 173,795.75 | 173,795.75 |