Core Points - The company has revised its articles of association and related rules, which will take effect after approval at the shareholders' meeting and registration with the regulatory authority [1][2][15] - The company held its 21st meeting of the 9th Board of Directors on August 28, 2025, where several key resolutions were passed, including the approval of the 2025 semi-annual report and the special report on the management and actual use of raised funds [4][7][22] - The company plans to terminate several fundraising investment projects and use the remaining funds for permanent working capital due to adverse impacts from judicial seizures and changes in market conditions [73][78] Group 1 - The company’s articles of association and related rules have been revised and will be submitted for shareholder approval [1][2] - The 21st meeting of the 9th Board of Directors was held, where the 2025 semi-annual report was approved [4][7] - The company’s fundraising projects have been impacted by judicial seizures, leading to a decision to terminate certain projects [78] Group 2 - The company reported a total of 111,143.30 million yuan raised from a non-public offering, with a net amount of 109,587.29 million yuan after deducting issuance costs [65] - As of June 30, 2025, the company had invested 32,934.54 million yuan from the raised funds, with 79,031.74 million yuan remaining unutilized [78] - The company’s fundraising accounts have been frozen due to legal disputes involving its controlling shareholder, significantly affecting its operational capabilities [79]

Group 1 - The company held the ninth meeting of the ninth supervisory board on August 28, 2025, via remote voting, with all three supervisors present [1][2] - The supervisory board approved the 2025 semi-annual report and its summary, confirming compliance with regulations and reflecting the company's operational and financial status accurately [1][2] - The board also approved a special report on the management and actual use of the raised funds for the first half of 2025, with unanimous agreement [2] Group 2 - The supervisory board approved a proposal to terminate several fundraising investment projects, including "Smart City Construction Project" and "Industry Big Data Analysis and Operation Project," reallocating the remaining funds of 296.8481 million yuan for permanent working capital [2] - The decision to terminate these projects is seen as beneficial for the company's overall strategic layout and resource optimization, enhancing fund utilization efficiency without adversely affecting operations or shareholder interests [2]

Summary of Key Points Core Viewpoint The report outlines the fundraising activities and management of Yiyang Xintong Co., Ltd., highlighting the challenges faced due to judicial freezes on fundraising accounts, which have significantly impacted the company's ability to utilize the raised funds effectively. Fundraising Overview - The company raised a total of RMB 111,143.30 million through the issuance of 65,129,400 shares at a price of RMB 17.065 per share, with a net amount of RMB 109,587.29 million after deducting issuance costs of RMB 1,556.01 million [1] - As of June 30, 2025, the company had invested RMB 47,819.59 million in fundraising projects, with RMB 32,934.54 million utilized from the raised funds [2][9] Fund Management - The company established a fundraising management system in compliance with relevant laws and regulations, which was revised in 2024 to meet updated regulatory requirements [2][3] - Special accounts for fundraising were opened at various banks, and strict approval procedures were implemented to ensure the funds are used for their intended purposes [3] Judicial Freezes and Impact - Judicial freezes have cumulatively reduced the balance of the fundraising accounts by RMB 49,346.93 million, severely limiting the company's ability to use these funds [4][5] - The company has faced significant operational challenges due to these freezes, leading to a temporary halt in fundraising project implementations [5][9] Project Termination - On August 28, 2025, the company decided to terminate several fundraising projects, including the "Smart City Construction Project" and others, reallocating the remaining unused funds to supplement working capital [6][8] Financial Summary - As of June 30, 2025, the total amount raised was RMB 109,587.29 million, with RMB 32,934.54 million utilized, leaving RMB 14,885.05 million unspent from the fundraising accounts [7][9]

Core Viewpoint - The company plans to terminate several fundraising investment projects and use the remaining funds to permanently supplement its working capital due to significant changes in its internal and external environment, as well as the infeasibility of the original projects [1][2][10]. Fundraising Investment Projects - The terminated fundraising investment projects include: Smart City Construction Project, Industry Big Data Analysis and Operation Project, Cloud Security Management System Construction Project, Network Optimization Intelligent Platform Construction Project, and Regional Innovation Application Workshop Construction Project [1][2][3]. - The total amount raised for these projects was 1,111.43 million yuan, with a net amount of 1,095.87 million yuan after deducting issuance costs [3][9]. Fundraising Status - As of June 30, 2025, the actual use of the raised funds was 329.35 million yuan, leaving 790.32 million yuan remaining, which includes 296.85 million yuan in the fundraising account and 493.47 million yuan that was judicially seized due to legal disputes involving the controlling shareholder [1][2][7][10]. - The fundraising account remains frozen, preventing the company from utilizing the funds [10][14]. Reasons for Termination - The termination of the fundraising projects is primarily due to the impact of legal disputes involving the company's controlling shareholder, which has led to the freezing of the fundraising account and significant adverse effects on project implementation [2][10]. - The company has assessed the current situation and determined that the original projects are no longer suitable for its future development and do not meet the conditions for continued implementation [2][10]. Remaining Fund Usage - The company intends to use the remaining funds for daily operations and business development after terminating the fundraising projects [2][11]. - The funds previously judicially seized will also be used to permanently supplement working capital [2][11]. Decision-Making Process - The decision to terminate the fundraising projects and reallocate the remaining funds has been approved by the company's board of directors and supervisory board, and it will be submitted for approval at the upcoming shareholders' meeting [12][13]. - The supervisory board believes that this decision is prudent and will not adversely affect the company's operations or shareholder interests [12][13].