Core Viewpoint - The company has approved the use of its own funds to pay for part of the fundraising project expenses and will subsequently replace these with equivalent amounts from the raised funds, ensuring compliance with regulations and maintaining project integrity [1][6][8] Fundraising Overview - The company has issued 40.01 million shares at a price of RMB 15.43 per share, raising a total of RMB 617.35 million, which has been fully received as of July 25, 2025 [1][2] - The funds are managed in a dedicated account with oversight from the sponsor and the bank [1] Project Details - The company’s fundraising projects and investment plans are outlined in the prospectus, with specific financial allocations detailed [2] Reasons for Using Own Funds - The company faces challenges in directly using raised funds for payroll and other expenses due to regulatory requirements [4][5] - To enhance operational efficiency and reduce procurement costs, the company opts for centralized purchasing, necessitating the use of its own funds initially [5] - The company aims to improve cash flow and reduce financial costs by using various payment methods before replacing with raised funds [5] Operational Process - The finance department will establish a ledger for tracking the use of own funds and will regularly transfer equivalent amounts from the fundraising account to the company’s own account [6] - The sponsor will conduct ongoing supervision of the fund replacement process [6] Impact on the Company - The decision to use own funds initially will not affect the normal implementation of fundraising projects and complies with relevant regulations [6][7] - The board and supervisory committee have approved the process, ensuring it aligns with regulatory requirements and does not harm shareholder interests [7][8]

Core Viewpoint - The company plans to use its own funds to pay for part of the fundraising project expenses and subsequently replace these with equivalent amounts from the raised funds, ensuring compliance with relevant regulations and maintaining project efficiency [1][6]. Fundraising Overview - The total amount raised by the company through its initial public offering (IPO) is RMB 617.35 million, with a net amount of RMB 507.62 million after deducting issuance costs [1]. - The company has completed the fundraising process as of July 25, 2025, and has established special accounts for managing the raised funds [1]. Project Investment Details - The total investment for the fundraising projects is RMB 643.47 million, with adjustments leading to a revised investment of RMB 510.62 million [1]. - The projects include the establishment of an automated manufacturing base and a research and development center [1]. Reasons for Using Own Funds - The company faces challenges in directly using raised funds for payroll and other expenses due to regulatory requirements [2]. - The need for centralized procurement and payment efficiency also necessitates the use of own funds initially [2]. - The company aims to enhance operational efficiency and reduce financial costs by using various payment methods [2]. Replacement Process - The company will establish a detailed accounting ledger for the funds used and will regularly transfer equivalent amounts from the fundraising account to its own funds account [3]. - Continuous supervision by the sponsor institution will ensure compliance with the replacement process [3]. Impact on the Company - The use of own funds for project expenses will not affect the normal implementation of the fundraising projects and will not change the intended use of the raised funds [5][6]. - The decision has been approved by both the board of directors and the supervisory board, ensuring adherence to necessary procedures [4][5].

Group 1 - The company has raised a total of RMB 617,354,300.00 through the issuance of 40,010,000 shares at a price of RMB 15.43 per share, with a net amount of RMB 510,622,649.84 after deducting underwriting and other related expenses [2] - The company has committed to invest in the "Smart Home Hardware Automation Manufacturing Base" project, with a total investment amount of RMB 643,469,000.00, of which RMB 420,000,000.00 will be funded through the raised capital [3][4] - The company plans to use self-raised funds to pre-invest in the projects before the raised funds are available, and will replace these funds with the raised capital once it is received [4]