Group 1: Project Progress and Business Overview - The company has completed and put into production the first phase of the lightweight body and key component precision forming equipment smart manufacturing factory project funded by convertible bonds [1] - The second phase of the lightweight component (non-ferrous casting) project has been completed and is in production, while the lightweight body component project is still ongoing with some equipment already in production [1] - The second-phase factory has already started production, contributing to capacity release [2] Group 2: Lightweight Business Planning - The product range includes aluminum alloy assemblies, three-voltage die-cast parts, integrated die-cast body structure parts, and aluminum alloy chassis components [1] - The company is focusing on market expansion around Wuhu, Hefei, and surrounding areas, leveraging existing channels and customer relationships [1] - Research and development plans include alloy material development, die-casting process development, and mold development [2] Group 3: Robotics and Automation - The company’s subsidiaries are involved in manufacturing automotive welding fixtures and flexible automated production lines [2] - The produced robots and AMR robots can adapt to dynamic scenarios and perform complex collaborative tasks [2] - The company aims to explore more development opportunities in the robotics field while maintaining focus on lightweight and smart manufacturing [2] Group 4: Cost Control and Market Strategy - The company is implementing strategies such as technological cost reduction, efficiency improvement, and upstream cost transmission to maintain market competitiveness in response to price reductions from OEMs [2] - The company’s operations are currently normal, with new business and existing orders progressing as planned [2] - The business scale for equipment is expected to further increase, while the parts business is anticipated to grow as capacity is gradually released throughout the year [2]

Fundraising Overview - The company successfully raised a total of RMB 439.8 million through the issuance of convertible bonds, with a net amount of RMB 432.89 million after deducting issuance costs [1][2] - The bonds have a maturity period of 6 years, approved by the China Securities Regulatory Commission [1] Fund Management - The company has established a management system for the raised funds, ensuring compliance with regulations and transparency in usage [1] - Funds are managed in dedicated accounts, with strict approval processes in place to ensure they are used for their intended purposes [1] Fund Usage and Surplus - As of June 19, 2025, the total investment in the project "Construction of Intelligent Manufacturing Factory for Lightweight Vehicle Body and Key Components" amounted to RMB 46.87 million, with no surplus funds remaining [3][4] - The project has incurred a payable amount of RMB 6.11 million, which includes a foreign currency component of 171,890,639 JPY, converted at the central bank's exchange rate [4] Project Completion - The project has been completed and meets the conditions for closure, with the company planning to finalize the project despite a delay in the completion date from June 2024 to June 2025 [4][5] - The completion of this project is not expected to adversely affect the company's normal operations or harm the interests of shareholders [4] Regulatory Compliance - The company is exempt from certain procedural requirements for the use of surplus funds, as the surplus is below RMB 5 million or less than 1% of the net raised funds [5]