Core Viewpoint - The company, Koal Software Co., Ltd., plans to issue A-shares through a simplified procedure targeting specific investors, with a total fundraising amount not exceeding 283 million RMB, aimed at enhancing its capabilities in the data security sector, particularly in quantum-resistant cryptography [9][12][19]. Group 1: Issuance Details - The issuance will involve no more than 35 specific investors, including qualified institutional investors and other eligible entities, with the final issuance amount determined based on subscription quotes [14][15]. - The total amount raised will not exceed 30% of the company's total share capital prior to the issuance and will be capped at 20% of the company's net assets as of the end of the previous fiscal year [17]. - The shares issued will have a lock-up period of six months post-issuance, during which they cannot be transferred [18]. Group 2: Fund Utilization - The net proceeds from the issuance will be allocated to projects, including the industrialization of quantum-resistant cryptography technology, which has a total investment of 160.28 million RMB [19][23]. - The company plans to use the funds to enhance its technological capabilities in data security, addressing the urgent needs of sectors such as government, military, and finance [12][23]. - If the actual net proceeds are less than the planned investment amount, the company will adjust the investment projects based on urgency and necessity [19][22]. Group 3: Industry Context - The issuance is positioned within the broader context of increasing investments in information security, driven by the implementation of laws such as the Cybersecurity Law and the Data Security Law in China [10][12]. - The global market for quantum-resistant cryptography is expected to grow significantly, with projections indicating a compound annual growth rate of approximately 72.64% from 2024 to 2030 [27]. - The company aims to leverage its existing technological expertise and customer relationships to capitalize on the growing demand for quantum-resistant solutions in various critical sectors [26][27].

Fundraising Plan - The company plans to raise a total of up to 283 million yuan through a simplified procedure for issuing A-shares to specific targets, with the net proceeds intended for various projects [1][2]. Project Necessity and Feasibility - The first project focuses on the industrialization of anti-quantum cryptography technology, with a total investment of 160.28 million yuan, aimed at enhancing the company's competitiveness in the information security sector and addressing urgent demands from key industries such as government, military, and finance [2][4]. - The project is crucial for countering the disruptive impact of quantum computing on existing encryption systems, as quantum technology poses significant threats to data security [2][3]. - The company has been actively involved in the development of anti-quantum cryptography since 2018, establishing a solid foundation for the commercialization of these technologies [6][7]. Market Potential - The global anti-quantum cryptography market is projected to grow rapidly, reaching approximately 15.008 billion dollars by 2030, with a compound annual growth rate of about 51.97% from 2024 to 2035 [7][8]. - The company is well-positioned to capitalize on this growth due to its established customer base and brand value in critical sectors such as government and finance [8]. Additional Projects - A second project involves the development of a trusted data space platform, with an investment of 89.35 million yuan, aimed at facilitating secure data circulation in key sectors like finance and education [9][10]. - The trusted data space initiative aligns with national strategies to enhance data marketization and is expected to create new business growth points for the company [12][13]. Financial Impact - The fundraising will enhance the company's capital strength, leading to an increase in total assets and net assets, while reducing the debt-to-asset ratio [16]. - The effective use of raised funds is anticipated to improve operational scale and economic benefits, ultimately benefiting shareholders [16]. Conclusion - The proposed fundraising and associated projects are deemed necessary and feasible, aligning with national industrial policies and the company's strategic development goals, thereby promoting sustainable growth [16].