Core Viewpoint - Heilongjiang Publishing Media Co., Ltd. plans to use part of the raised funds amounting to 20.1079 million yuan to increase capital in its wholly-owned subsidiary for the implementation of the "Xinhua Bookstore Store Operation Upgrade and Renovation Project" [1][5]. Fundraising Basic Situation - The company was approved to issue no more than 44.44445 million shares, with a net fundraising amount of 228.8065 million yuan after deducting issuance costs [1][2]. Fundraising Investment Project Situation - The total amount allocated for various projects includes: - Boutique Publishing Project: 24,796,047.59 yuan - Xinhua Bookstore Store Operation Upgrade Project: 40,107,890.41 yuan - Printing Equipment Upgrade Project: 47,777,463.15 yuan - Publishing Building Project: 66,376,025.49 yuan - Total: 228,806,523.25 yuan [3]. Capital Increase Situation - The company will increase capital by 20.1079 million yuan to its subsidiary Heilongjiang Xinhua Bookstore Group Co., Ltd., which will further increase capital to its wholly-owned subsidiary Heilongjiang Province Xinhua Bookstore Chain Co., Ltd. for the specific implementation of the project [3][4]. Purpose and Impact of Capital Increase - The capital increase is based on the actual needs of the fundraising project post-IPO, ensuring the smooth implementation of the project and aligning with the fundraising usage arrangements [4][5]. Fundraising Management After Capital Increase - The company and its subsidiary have opened special accounts for the storage of raised funds, ensuring compliance with relevant regulations [4][5]. Decision-Making Process - The board of directors and the supervisory board approved the capital increase on July 21, 2025, in accordance with relevant regulations [5][6]. Other Matters - The capital increase does not require shareholder meeting approval as it does not meet the criteria for such a review, and it does not constitute a related party transaction or a major asset restructuring [7].

Core Viewpoint - The company, Heilongjiang Publishing Media Co., Ltd. (龙版传媒), is utilizing part of its raised funds to increase capital in its wholly-owned subsidiary, Heilongjiang Xinhua Bookstore Group Co., Ltd., to implement investment projects, ensuring the smooth execution of these projects and aligning with regulatory requirements [1][2][9]. Fundraising Overview - The company was approved to issue up to 44,444,445 shares, raising a net amount of RMB 228,806,523.25 after deducting issuance costs [1][2]. - The raised funds will be allocated to various projects, including: - Boutique Publishing Project: RMB 24,796,047.59 - Comprehensive Service Platform Project: RMB 49,749,096.61 - Xinhua Bookstore Store Upgrade Project: RMB 40,107,890.41 - Printing Equipment Upgrade Project: RMB 47,777,463.15 - Publishing Building Project: RMB 66,376,025.49 [2]. Capital Increase Details - The company plans to use RMB 20,107,900 (2,010.79 million) to increase capital in Heilongjiang Xinhua Bookstore Group, which will further invest the same amount in its subsidiary, Heilongjiang Province Xinhua Bookstore Chain Co., Ltd., for the store upgrade project [2][4]. Subsidiary Information - Heilongjiang Xinhua Bookstore Group engages in various activities, including internet sales of publications and textbook distribution, with total assets of approximately RMB 3.6 billion and net assets of about RMB 2.2 billion [3][4]. - Heilongjiang Province Xinhua Bookstore Chain Co., Ltd. has total assets of approximately RMB 258.73 million and reported a net profit of RMB 4.2 million [5][7]. Purpose and Impact of Capital Increase - The capital increase aims to meet the actual needs of the investment projects post-IPO, ensuring their successful implementation and compliance with fundraising usage arrangements [6][8]. - The company maintains a 100% ownership stake in the subsidiaries post-capital increase, ensuring no adverse impact on shareholder interests [6][9]. Management of Raised Funds - The company and its subsidiary have established dedicated accounts for the management of raised funds, adhering to regulatory guidelines to ensure the safety of fund usage [8]. Approval Process - The capital increase proposal was approved by the company's board and supervisory committee, aligning with relevant regulations and ensuring no detrimental effects on the company [8][9].