Summary of Key Points Core Viewpoint The report provides an overview of the fundraising activities and the utilization of funds by Zhejiang Fulai New Materials Co., Ltd. as of June 30, 2025, confirming compliance with regulatory requirements and detailing the financial status of previous fundraising efforts. Group 1: Fundraising Overview - The company raised a total of RMB 612.90 million from its initial public offering (IPO) in 2021, with a net amount of RMB 530.63 million after deducting underwriting fees and other expenses [4][5]. - In 2023, the company issued convertible bonds, raising RMB 429.02 million, with a net amount of RMB 415.95 million after expenses [6][9]. Group 2: Fund Utilization - As of June 30, 2025, the company has utilized RMB 504.07 million of the raised funds, with RMB 12.65 million remaining in bank accounts [5][10]. - The company temporarily used RMB 50 million of idle funds to supplement working capital [20][24]. Group 3: Changes in Fund Allocation - The company approved changes to the allocation of funds for the "Functional Coating Composite Material Production Base and R&D Center Headquarters" project, reallocating 37.69% of the total funds raised [11]. - The company also transferred assets and liabilities from its subsidiary to optimize its organizational structure and improve operational efficiency [12]. Group 4: Financial Performance and Returns - The company reported a total interest income and returns from structured deposits amounting to RMB 2.47 million from the IPO funds [5][10]. - The actual investment in the "New Environmental Pre-coating Functional Material Construction Project" was RMB 31.23 million, which is lower than the committed amount due to market conditions and project delays [15][18]. Group 5: Idle Fund Management - The company has engaged in cash management by investing idle funds in low-risk, short-term financial products, achieving returns of RMB 1.06 million in 2021 and RMB 0.166 million in 2022 [20][22]. - As of June 30, 2025, all structured deposit products purchased with idle funds have been redeemed [25].

Fundraising and Storage Situation - The company raised a total of RMB 61,290.00 million from its initial public offering (IPO) in 2021, with a net amount of RMB 53,063.13 million after deducting fees [1][2] - As of June 30, 2025, the remaining balance of the previous fundraising is RMB 126.49 million, with RMB 5,000.00 million used for working capital [1][2] - The company raised RMB 42,901.80 million from the issuance of convertible bonds in 2023, with a net amount of RMB 41,589.49 million after deducting fees [1][2] Fund Usage - The company has utilized RMB 50,406.72 million of the funds raised from the 2021 IPO, with a remaining balance of RMB 5,126.49 million, accounting for 9.66% of the net amount [1][12] - The company plans to continue using the remaining funds for investment projects [12] - The company has used RMB 31,225.80 million of the funds raised from the 2023 convertible bond issuance, with a remaining balance of RMB 11,747.47 million, accounting for 28.25% of the net amount [12] Changes in Fund Usage - The company has approved a change in the use of RMB 20,000.00 million from the 2021 IPO funds to invest in a new materials project in Yantai, which represents 37.69% of the total funds raised [1][2] - The company has also approved changes to the implementation location and extended the deadline for the "New Environmental Pre-coating Functional Materials Construction Project" funded by the 2023 convertible bonds [1][2] Investment Efficiency and Returns - The actual investment amount for the "Functional Coating Composite Material Production Base and R&D Center Headquarters" project is RMB 50,406.72 million, with a shortfall of RMB 2,656.41 million compared to the committed amount due to interest income and bank fees [5] - The "New Environmental Pre-coating Functional Materials Construction Project" has an actual investment of RMB 31,225.80 million, with a shortfall of RMB 10,363.69 million as the project is still under construction [5] Idle Fund Management - The company has used idle funds from the 2021 IPO to temporarily supplement working capital, amounting to RMB 5,000 million [7][10] - The company has also engaged in financial management of idle funds, purchasing low-risk, short-term financial products, with a total of RMB 53,500.00 million in structured deposits and RMB 1,064.91 million in returns in 2021 [8][9]

Core Points - Zhejiang Fulai New Materials Co., Ltd. has successfully raised a total of RMB 612.9 million through its initial public offering, with a net amount of RMB 530.63 million after deducting issuance costs [1] - As of June 30, 2025, the company has utilized RMB 504.07 million of the raised funds, with RMB 33.20 million used in the current year [2] - The company has also issued convertible bonds, raising RMB 429.018 million, with a net amount of RMB 415.89 million confirmed to have been deposited into the company's special fund management account [2][3] Fund Management - The company has established a fund management system in compliance with relevant regulations to ensure the proper use of raised funds [3] - Multiple tripartite supervision agreements have been signed with banks to manage the special accounts for raised funds, ensuring their safety and dedicated use [4][5] Fund Usage - As of June 30, 2025, the balance of the special account for the initial public offering funds is reported, with specific amounts allocated to various projects [6][7] - The company has temporarily used idle raised funds to supplement working capital, with a total of RMB 100 million approved for such use [9] - The company has also engaged in cash management of idle funds, investing in financial products with a total amount not exceeding RMB 100 million [10] Project Updates - The company has made changes to its fundraising investment projects, including the extension of the project completion date and the addition of new implementation locations [12][13] - The company has confirmed that there are no external transfers or replacements of investment projects as of the reporting date [14] Compliance and Reporting - The company has adhered to the regulations regarding the management and disclosure of raised funds, ensuring that all information is accurate and complete [14] - The company has conducted audits and received verification reports confirming the proper use of raised funds and compliance with relevant regulations [8]