Summary of Key Points Core Viewpoint The company, Jinxi Axle Co., Ltd., is announcing a change in the allocation of part of its raised funds from a previous stock issuance, redirecting surplus funds from a completed project to a new project aimed at enhancing production capabilities. Group 1: Fundraising Overview - The company raised a total of RMB 129,000.00 million through a non-public stock issuance in August 2013, with a net amount of RMB 126,113.70 million after deducting fees [2][3]. - The funds were initially allocated to the "Rail Transit and High-end Equipment Manufacturing Base Construction Project (Phase I)" [3][6]. Group 2: Change in Fund Allocation - The company plans to reallocate RMB 2,895.00 million from the surplus of the completed project to the "Key Structural Components Processing Capacity Construction Project" [3][4]. - This reallocation represents 2.30% of the net amount raised from the stock issuance [3]. Group 3: Project Details - The new project will involve the construction of production lines for key structural components, including the addition or modification of 15 sets of equipment and an area of 1,935.20 square meters [9][10]. - The total investment for the new project is RMB 2,895.00 million, with specific allocations for construction, equipment purchase, installation, and other expenses [10]. Group 4: Feasibility and Necessity - The project aligns with the company's strategic goal of optimizing product structure and expanding into defense equipment, thus enhancing production capacity [11][12]. - The company has secured orders for the new product line, necessitating the project to ensure stable quality and timely delivery [12]. Group 5: Economic Benefits - Upon completion, the project is expected to improve precision machining capabilities, with a projected post-tax internal rate of return of 5.38% and a payback period of approximately 9.88 years [13]. Group 6: Approval Process - The board of directors approved the change in fund allocation on September 29, 2025, and the matter will be submitted for shareholder approval [5][6]. - Independent directors and the sponsoring institution have expressed their agreement with the proposed changes [15][16].

Group 1 - The company has changed the use of part of the raised funds, terminating the "Aikening + 3BNC117 combination therapy clinical research project" and reallocating the net amount of 700 million RMB to "new drug development projects" and supplementing working capital [3][5] - As of June 30, 2025, the total amount of raised funds committed for investment was 1,798.80 million RMB, with a cumulative investment of 179.88 million RMB in the terminated project [3][5] - The remaining net amount of 281.62 million RMB from the original project will continue to be stored in the special account for raised funds and managed according to the company's regulations [3][5] Group 2 - The company is focusing on innovative technology and manufacturing, particularly in the field of chronic disease treatment, to enhance its technical reserves and product transformation capabilities [5][6] - The new drug development project includes a self-developed small nucleic acid delivery technology platform and pain relief patch series products, with a total investment of 28.16 million RMB allocated for these initiatives [5][6] - The company aims to strengthen its core technology advantages in the rapidly growing small nucleic acid drug market, particularly in the area of extrahepatic targeting [9][10] Group 3 - The pain relief patch series products have shown significant progress, with the core product FB3002 entering the CDE technical review stage, and the company plans to invest an additional 20 million RMB to enhance production capacity and research [14][18] - The domestic pain relief market is expected to exceed 400 billion RMB by 2023, driven by an aging population and increasing health awareness among residents [17][18] - The company is strategically positioned to capitalize on the growing demand for pain relief products, particularly through the development of hot melt adhesive patches [17][18] Group 4 - The company has a bank loan balance of 333.68 million RMB as of June 30, 2025, with 279.74 million RMB due within one year, and plans to use part of the raised funds to repay these loans [20][21] - Supplementing working capital is crucial for the company's strategic initiatives, including expanding professional teams and launching new research pipelines [20][21] - The reallocation of raised funds is aligned with the company's current strategic phase and is expected to enhance financial stability and support long-term growth [21]

Core Viewpoint - The company plans to reallocate 58 million yuan of raised funds from the "Research and Development Center and Heating Operation Control Platform Construction Project" to the "Comprehensive Energy Technology Research and Industrialization Base Construction Project" to maximize the effectiveness of the raised funds [1] Summary by Relevant Sections - **Fund Allocation Change** - The company intends to change the use of 58 million yuan in raised funds to enhance project effectiveness [1] - The board of directors has authorized the chairman or designated personnel to handle related bank special account matters [1] - The change requires approval from the company's shareholders' meeting [1] - **Project Financial Metrics** - The project is expected to require an investment of 58 million yuan [1] - The after-tax financial internal rate of return is projected to be 26.46% [1] - The after-tax static investment payback period is estimated at 7.14 years, indicating significant economic benefits [1] - **Compliance and Approval** - The supervisory board and the sponsor institution both consider the change reasonable and compliant with the company's actual development needs [1]

Summary of Key Points Core Viewpoint The company has decided to change the use of part of the raised funds, adjust the internal investment structure of the fundraising projects, and postpone the timeline for the "IP Product and Operation Center Project" due to changes in market conditions and operational needs [1][14][15]. Fundraising Overview - The company raised a total of RMB 329.56 million through the issuance of 66,076,254 shares to 18 specific investors, with the net amount deposited into a designated account on March 16, 2021 [1][2]. - As of June 30, 2025, the total amount invested in fundraising projects was RMB 222.76 million, with a remaining balance of RMB 69.31 million [2][4]. Changes in Fundraising Use - The "Big Data Marketing Management Platform Construction Project" will be terminated, and the remaining funds will be redirected to the "IP Product and Operation Center Project" [6][9]. - The terminated project accounted for 7.64% of the net amount raised [6][9]. Reasons for Changes - The decision to terminate the "Big Data Marketing Management Platform Construction Project" was influenced by increased difficulty in obtaining and analyzing customer and product data, as well as a reassessment of resource allocation priorities [8][9]. - The company aims to enhance investment in core business areas such as research and development and market expansion, thereby reducing the urgency of the terminated project [8][10]. Internal Investment Structure Adjustment - The internal investment structure of the "IP Product and Operation Center Project" will be adjusted, with an increase in the budget for construction and a corresponding decrease in the budget for IP introduction and cultivation [12][13]. - The total commitment for the "IP Product and Operation Center Project" remains unchanged at RMB 274.39 million [12]. Project Timeline Postponement - The expected completion date for the "IP Product and Operation Center Project" has been postponed from December 31, 2025, to October 31, 2026, due to various construction challenges [12][13]. - Factors contributing to the delay include complex geological conditions, unique architectural features, and challenges in the curtain wall construction [12][13]. Impact of Changes - The adjustments are intended to optimize resource allocation and improve the efficiency of fund usage, ensuring that the project aligns with the company's long-term strategic goals [14][15]. - The company will adhere to relevant regulations and strengthen oversight of fund usage to ensure compliance and protect shareholder interests [14][15].

Core Viewpoint - The company has approved a proposal to change the use of raised funds to permanently supplement working capital, amounting to 97.851 million yuan, along with interest income and investment returns of 8.5314 million yuan, subject to shareholder approval [1] Group 1 - The fifth board meeting and the thirteenth supervisory board meeting have both approved the proposal regarding the change in the use of raised funds [1] - The total amount of funds to be used for working capital is 97.851 million yuan, which will be supplemented by interest income and investment returns of 8.5314 million yuan [1] - The actual amount will be based on the balance of the raised funds account on the day of transfer [1] Group 2 - The supervisory board and the sponsor institution have both expressed clear agreement with the proposal [1] - The proposal is pending approval from the company's shareholders [1]