Shenzhen Langkun Hi-Tech Co., Ltd. (hereinafter referred to as "the Company" or "Langkun Hi-Tech") intends to issue convertible corporate bonds to non-specific targets (hereinafter referred to as "this Offering") to meet the capital needs of its business development, enhance its capital strength, and improve its profitability. The feasibility analysis of the use of the raised funds is as follows:
I. Plan for Use of Raised Funds
The total amount of raised funds for this Offering shall not exceed RMB 590,000,000 (inclusive). After deducting issuance expenses, the net proceeds from the offering are intended for the following project:
| Project Name | Total Project Investment (RMB) | Amount of Raised Funds to be Used (RMB) |
|---|---|---|
| Tongzhou Organic Waste Resource Utilization Center Project | 153,189.89 | 59,000.00 |
Note 1: On June 21, 2024, and July 9, 2024, the Company held its 18th meeting of the Third Board of Directors and the 10th meeting of the Third Supervisory Board, and the 2024 Second Extraordinary General Meeting of Shareholders, respectively. The proposal "Proposal on Using Part of the Over-Raised Funds to Invest in New Projects" was deliberated and approved. It was agreed that RMB 27,639.81 million (the specific amount shall be based on the balance of the special account for raised funds at the time of actual transfer) of the over-raised funds would be used to invest in the Tongzhou Organic Waste Resource Utilization Center Project.
Note 2: On May 29, 2026, and June 16, 2026, the Company held its 6th meeting of the Fourth Board of Directors and the First Extraordinary General Meeting of Shareholders of 2026, respectively. The proposal "Proposal on Changing the Use of Part of the Raised Funds" was deliberated and approved. It was agreed that the remaining raised funds of RMB 11,759.19 million (including net interest income from interest income and wealth management income, net of bank handling fees, the specific amount shall be based on the balance of the raised funds account at the time of actual transfer) from the Fangshan Biomass Resource Regeneration Center Project would be transferred to the Tongzhou Organic Waste Resource Utilization Center Project through capital increase/loan.
Note 3: According to the Supplementary Agreement to the Concession Agreement for the Tongzhou Organic Waste Resource Utilization Center Project signed by Beijing Langkun Biomass New Energy Co., Ltd., a wholly-owned subsidiary of the Company, and the Beijing Tongzhou Urban Management Committee, after the Company obtains RMB 50 million in central government investment funds, the total investment in this project will be RMB 153,189.89 million. For details, please refer to the "Announcement on Signing the Supplementary Agreement for the Tongzhou Organic Waste Resource Utilization Center Project" published by the Company on the CNINFO website (http://www.cninfo.com) (2026-007).
This fund-raising project is an investment project using over-raised funds from the initial public offering and has already commenced construction. Due to a significant funding gap between the net proceeds from the offering and the total investment required for the project, this issuance of convertible bonds to non-specific targets is intended to supplement the funds and promote the smooth implementation of the project.
Before the raised funds are in place, the Company will make advance investments using its own funds or self-raised funds based on the progress of the fund-raising investment project. These investments will be replaced after the raised funds are in place in accordance with relevant laws and regulations. If the net proceeds from this offering after deducting issuance expenses are less than the total amount of funds to be raised for the project, the Company's Board of Directors may, without changing the premise of the fund-raising investment project, adjust the order and amount of fund investment for the above projects based on the actual needs of the project. Any shortfall will be resolved by the Company's own funds.