Fundraising Overview - The company Zhejiang Yaguang Technology Co., Ltd. successfully completed its initial public offering (IPO) on March 15, 2023, raising a total of RMB 603 million by issuing 33.5 million shares at RMB 18.00 per share, with a net amount of RMB 494.7 million after deducting issuance costs of RMB 85.5 million [1][3] Fund Management and Storage - The company has established a fundraising management system in compliance with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China, to ensure the protection of investors' rights [1][5] - The company has signed tripartite supervision agreements with banks for the special account storage of the raised funds, including agreements with China Merchants Bank, Industrial Bank, and Zhejiang Tailong Commercial Bank [2][5] - As of December 31, 2024, the total balance of the raised funds in various accounts is RMB 112.08 million, allocated for projects such as the production of MVR and energy-saving products [2][3] Changes in Fund Allocation - The company has decided to reallocate RMB 29 million of the raised funds from the "Annual Production of 800 Sets of Chemical and Pharmaceutical Equipment Project" to a new project titled "Screw Compressor Industrialization Construction Project" [4][5] Tripartite Supervision Agreement Details - The tripartite supervision agreement involves the company, its wholly-owned subsidiary Hebei Leheng Energy-Saving Equipment Co., Ltd., and Guojin Securities Co., Ltd. as the sponsor, ensuring that the funds are used solely for the designated project and not for other purposes [5][6] - The agreement stipulates that the sponsor has the right to supervise the use of the funds and must conduct regular checks on the special account [6][8]

Group 1 - The company plans to provide guarantees for its wholly-owned subsidiary Hebei Leheng Energy Saving Equipment Co., Ltd. and its controlling subsidiary Hebei Daheng Machinery Equipment Co., Ltd. The guarantee amount is up to 100 million yuan for Leheng Energy Saving and up to 5 million yuan for Daheng [9][12] - The total amount of guarantees provided by the company for these subsidiaries as of December 31, 2024, is 4.1748 million yuan, with no overdue guarantees [15][17] - The board of directors has approved the guarantee proposal, which will be submitted to the shareholders' meeting for further approval [9][15] Group 2 - The company intends to change part of the raised funds originally allocated for the "Annual Production of 800 Sets of Chemical and Pharmaceutical Equipment Project" to a new project, "Screw Compressor Industrialization Construction Project," with a total amount of 29 million yuan [31][32] - The remaining uninvested raised funds for the original project amount to 46.3369 million yuan, which will continue to be used for the original project's investment [31][35] - The new project aims to enhance the company's competitiveness and efficiency in fund usage, with an expected annual revenue of 117.5 million yuan after reaching normal operation [49][50] Group 3 - The new project will be implemented by Hebei Leheng Energy Saving Equipment Co., Ltd., focusing on producing high-efficiency screw compressors and variable frequency screw compressors [38][39] - The project is expected to have a construction period of two years and aims to meet the growing market demand for energy-efficient and environmentally friendly equipment [39][48] - The project is projected to achieve an internal rate of return of 14.2% after tax, with a payback period of 7.76 years [49]