Core Points - Zhejiang Wehua New Materials Co., Ltd. successfully raised a total of RMB 141,156.81 million through its initial public offering, with the funds fully received and verified by an accounting firm [1][2][3] - The company has established a dedicated account for the raised funds, ensuring that the funds are used strictly for their intended purposes, in compliance with relevant regulations [2][4] - As of June 30, 2025, the company has utilized RMB 70,081.10 million of the raised funds, with a remaining balance of RMB 28,791.23 million in the dedicated account [3][4][5] Fund Management - The company has signed tripartite supervision agreements with its underwriters and banks to ensure proper management of the raised funds [2][4] - The funds are stored in dedicated accounts at China Construction Bank, China Merchants Bank, and CITIC Bank [3][4] - The company has implemented a cash management plan for temporarily idle funds, allowing for investment in low-risk financial products, with a maximum of RMB 120,000.00 million allocated for such investments [4][5] Fund Usage - The actual use of raised funds for investment projects during the reporting period amounted to RMB 10,140.78 million [3][6] - The company has replaced RMB 47,916.27 million of self-raised funds used for investment projects with the raised funds, which has been approved by the board and verified by an accounting firm [3][6] - There were no instances of using idle funds for temporary working capital or any other unauthorized purposes during the reporting period [4][6] Project Status - The company has not made any changes to the planned investment projects during the reporting period [4][6] - All investment projects are currently in the construction phase, and there have been no significant changes in project feasibility [6]

Core Viewpoint - The company intends to utilize part of the temporarily idle raised funds for cash management to enhance the efficiency of fund usage and maximize shareholder benefits while ensuring the safety of the funds and not affecting the normal operation of the fundraising investment projects [6][8]. Fundraising Basic Information - The company successfully completed its initial public offering (IPO) of 86.34 million shares at a price of RMB 17.39 per share, raising a total of RMB 1,501.45 million. After deducting issuance costs of RMB 89.88 million, the net amount raised was RMB 1,411.57 million [1][2]. Fund Usage Status - As of June 30, 2025, the actual net amount raised was RMB 1,411.57 million, with RMB 700.81 million allocated to fundraising projects. The remaining balance in the special account for raised funds was RMB 287.91 million [3][4]. Cash Management Details - The company plans to use up to RMB 700 million of temporarily idle raised funds for cash management, focusing on safe and liquid products such as structured deposits and large certificates of deposit, with a maximum term of 12 months [7][9]. - The cash management will be conducted within a 12-month period from the board's approval date, allowing for rolling usage of the funds [6][9]. Decision-Making Process - The board of directors approved the cash management proposal on August 26, 2025, confirming that the decision falls within the board's authority and does not require shareholder approval [9][10]. Verification by Intermediary - The sponsoring institution, CITIC Securities, has verified that the company has followed necessary approval procedures for the cash management of idle funds and that the actions comply with relevant regulations, ensuring no change in the purpose of the raised funds [9][10].