Group 1: Investor Relations Activities - The company participated in the "2025 Guangdong Online Investor Reception Day" on September 19, 2025 [2] - Key executives present included Chairman and President Mr. Luo Weiman, CFO Ms. Yang Bing, and several independent directors [2] Group 2: Customer Base and Market Expansion - The company primarily serves well-known clients such as Avery Dennison and Finotex, with plans to expand its customer base through product innovation and enhanced R&D capabilities [2][3] - The company is actively exploring collaborations with universities and research institutions for technology development [2][3] Group 3: R&D and Product Development - R&D investment increased by 13.92% year-on-year in the first half of 2025, focusing on new product development and upgrades [4] - Key projects include the development of the seventh-generation adhesive-free film and graphene transfer film for electronic devices [4] Group 4: Financial Performance - Investment income increased by 363.25% year-on-year, primarily due to cash management strategies involving large deposits and structured savings [6] - Inventory decreased by over 20 million compared to the beginning of the year, with a stock turnover rate of 8.92 times, indicating improved inventory management [7] Group 5: Production and Quality Control - The company has established a comprehensive quality control system and achieved ISO9001 certification, with several products passing international standards [3] - The company operates multiple production lines for functional films and masterbatches, enhancing its manufacturing capabilities [3] Group 6: Market Challenges and Strategic Responses - The company is addressing market challenges by focusing on value management and maintaining a stable dividend policy to enhance investor confidence [8] - Plans to utilize AI technology for optimizing supply chain management and customer service are in place, aiming to improve operational efficiency [8][9]

Core Viewpoint - The company plans to utilize part of its temporarily idle raised funds for cash management to enhance fund efficiency and returns while ensuring the safety of the funds and not affecting ongoing investment projects [1][2][7] Fundraising Basic Situation - The company raised a total of RMB 585,195.95 million from its initial public offering, with a net amount of RMB 573,068.36 million after deducting issuance costs, including an oversubscription of RMB 23,068.36 million [1] - The funds have been deposited into a dedicated account, and a tripartite/four-party supervision agreement has been signed with the sponsor and the commercial bank [2] Cash Management of Idle Funds - The company intends to use up to RMB 100,000 million of temporarily idle raised funds for cash management, allowing for rolling use within this limit [3] - The source of funds for this cash management will be the temporarily idle raised funds [3] - Investment will be made in low-risk, highly liquid products such as time deposits and fixed-income certificates, with returns going back to the company [4] Investment Period and Risk Control - The investment period is set for twelve months from the date of board approval, with the management authorized to handle related matters within the specified limits [4][6] - The company will implement strict risk control measures to ensure the safety of the cash management funds [5] Impact on the Company - The use of idle funds for cash management will not affect the progress of investment projects or the normal operations of the company, and it aims to improve fund efficiency and shareholder returns [5][6] - The board and supervisory committee have approved the cash management plan, confirming its legality and compliance [6][7]

Core Viewpoint - The company intends to utilize part of its temporarily idle raised funds and self-owned funds for cash management to enhance fund efficiency and increase returns while ensuring the safety of the funds and not affecting ongoing projects or operations [1][5]. Summary by Sections 1. Basic Situation of Raised Funds - The company has received approval from the China Securities Regulatory Commission to issue convertible bonds totaling RMB 667 million, with a maturity of 6 years and a face value of RMB 100 per bond, amounting to 6,670,000 bonds [1]. 2. Cash Management of Idle Funds - The purpose of cash management is to utilize idle funds effectively without impacting project construction or normal operations, aiming to enhance fund efficiency and benefit shareholders [2]. - The company plans to use up to RMB 450 million for cash management, consisting of RMB 250 million from raised funds and RMB 200 million from self-owned funds, with a validity period of 12 months from board approval [2]. - Investment products will include low-risk options such as structured deposits, fixed-income certificates, and government bond reverse repos, with individual product investment periods not exceeding 12 months [2]. 3. Risk Control Measures - The company will implement strict risk control measures, including decision-making, management, and supervision, and may hire professional institutions for audits if necessary [3]. - The company will ensure that cash management does not affect daily operations or the normal functioning of fundraising projects, thereby maintaining operational liquidity [4]. 4. Financial Reporting - The company will adhere to relevant accounting standards for financial instruments in managing cash management products [5]. 5. Sponsor's Verification Opinion - The sponsor has verified that the company's cash management plan complies with legal regulations and has been approved by the board, ensuring that it will not affect the company's daily operations or main business [5].