Core Viewpoint - The company has approved the use of temporarily idle raised funds for cash management to enhance fund utilization efficiency while ensuring that it does not affect the construction of investment projects and the normal use of raised funds [1][5]. Group 1: Fundraising Overview - The company has successfully completed its initial public offering (IPO) of 21,972,549 shares at a price of 36.90 RMB per share, raising a total of approximately 739.45 million RMB [1]. - After deducting related issuance costs, the net amount of raised funds is 720.71 million RMB [2]. Group 2: Investment Projects and Idle Funds - The total budget for the investment projects is approximately 730.02 million RMB, with the adjusted planned use of raised funds amounting to 720.71 million RMB [2]. - The reasons for the temporary idleness of some raised funds include the time required for project construction [2]. Group 3: Cash Management Plan - The company plans to use up to 70 million RMB of temporarily idle raised funds for cash management, with a usage period of up to 12 months from the board's approval date [3][4]. - The investment products will be chosen based on high safety, good liquidity, and a maximum investment term of 12 months [3]. Group 4: Decision-Making Process - The cash management proposal has been approved by both the board of directors and the supervisory board, ensuring compliance with legal and regulatory requirements [5][6]. - The company will maintain transparency and disclose relevant information as per regulatory requirements [4][6]. Group 5: Impact on the Company - The use of temporarily idle raised funds for cash management is expected to improve fund utilization efficiency and generate additional returns for the company and its shareholders, without affecting the normal operations and project construction [5][7].

Group 1 - The company held its 9th meeting of the 2nd Supervisory Board on June 26, 2025, with all three supervisors present, and the meeting was conducted in accordance with relevant laws and regulations [1][2] - The Supervisory Board approved a proposal to increase the investment amount for certain fundraising projects and to permanently supplement working capital with surplus raised funds, which aligns with the company's future operational development plans [1][2] - The voting results for the proposal were unanimous, with 3 votes in favor, 0 against, and 0 abstentions [2] Group 2 - The decision to adjust the investment total for the "Fluid Equipment Component Manufacturing Project" and conclude it was deemed beneficial for improving the efficiency of fund utilization and in the interest of the company and all shareholders [1] - The meeting's resolutions were documented and are available for review, ensuring transparency and compliance with regulatory requirements [2]