The company and all members of the board guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
Shenzhen Entropy Technology Co., Ltd. (hereinafter referred to as "the Company") held its second meeting of the fourth board of directors on April 21, 2026, and approved the proposal on the termination of certain fundraising investment projects and the continued management of the remaining fundraising funds in a dedicated account. The Company intends to terminate the implementation of the "Multimodal Biometric Digital Industry Base Construction Project" and will continue to manage the remaining fundraising funds in a dedicated account (hereinafter referred to as "the Dedicated Account"). This proposal is subject to approval by the shareholders' meeting. The specific situation is announced as follows:
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Basic Situation of Fundraising According to the China Securities Regulatory Commission's approval document (Zheng Jian Xu Ke [2022] No. 926), the Company was authorized to register its initial public offering of 37,123,013 ordinary shares (A shares) at a price of RMB 43.32 per share, raising a total of RMB 1,608.1689 million. After deducting issuance expenses (excluding VAT) of RMB 150.8705 million, the net amount raised was RMB 1,457.2984 million, with an oversubscription of RMB 147.6392 million. The fundraising amount was transferred to the Company's designated account on August 12, 2022. Tianzhi International Accounting Firm (Special General Partnership) verified the fundraising amount received and issued Verification Report No. [2022]38658 on August 12, 2022. The Company and its subsidiaries implementing the fundraising projects have opened dedicated accounts for the fundraising, and the funds are stored in these accounts, with tripartite/quadripartite supervision agreements signed with the sponsor and the commercial bank holding the funds.
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Specific Situation of Fundraising Projects According to the prospectus for the initial public offering and listing on the Growth Enterprise Market, the net amount raised after deducting issuance expenses will be used for the following fundraising projects:
| No. | Project Name | Total Investment Amount | Proposed Investment Amount |
|---|---|---|---|
| 1 | Tangxia Production Base Construction Project | 248,411.80 | 248,411.80 |
| 2 | Mixed Biometric IoT Intelligent Industry Base Project | 436,899.40 | 436,899.40 |
| 3 | U.S. Manufacturing Plant Construction Project | 173,922.10 | 173,922.10 |
| 4 | R&D Center Construction Project | 182,405.80 | 182,405.80 |
| 5 | Global Marketing Service Network Construction Project | 268,020.10 | 268,020.10 |
| 6 | Oversubscription Funds | 147,639.20 | 147,639.20 |
| Total | 145,729.84 | 145,729.84 | 145,729.84 |
As of March 31, 2026, the fundraising investment projects and usage plans are as follows: