Core Viewpoint - The company has approved the addition of a new wholly-owned subsidiary, Suzhou Jinhong Logistics Co., Ltd., as the implementation entity for the "New High-end Electronic Special Materials Project" and will provide a loan from the raised funds to support this project [2][5][10] Fundraising Overview - The company has been authorized to issue 10,160,000 convertible bonds at a face value of RMB 100 each, raising a total of RMB 1,016,000,000, with a net amount of RMB 1,004,159,622.64 after deducting issuance costs [2][3] - The funds will be managed in a dedicated account to ensure investor protection and compliance with regulations [2][8] Project Investment Status - As of December 31, 2024, the total investment for the "New High-end Electronic Special Materials Project" is RMB 124,093.66 million, with RMB 100,415.96 million raised and RMB 57,395.05 million already invested, representing 57.16% of the total [4][5] New Implementation Entity - The addition of Jinhong Logistics as a project implementation entity is aimed at enhancing the efficiency of fund usage and ensuring compliance with transportation regulations for hazardous materials [5][6] - The project will not change in terms of total investment, funding allocation, or construction content [5][9] Loan Provision Details - The company will provide a loan of up to RMB 75 million to Jinhong Logistics to support the project, with the loan being interest-free and disbursed based on actual funding needs [6][10] - The loan will be managed under a four-party supervision agreement to ensure proper use of the funds [6][8] Impact on Company Operations - The decision to add a new implementation entity and provide a loan is expected to facilitate the smooth execution of the project without adversely affecting the company's operations or shareholder interests [5][9][10] - The company will adhere to relevant regulations and maintain transparency in fund usage [8][10]

Core Viewpoint - The report from Xinyong Zhonghe Certified Public Accountants confirms that Jin Hong Gas's 2024 fundraising storage and usage report is prepared in accordance with regulatory requirements and accurately reflects the actual situation of fundraising [2][23]. Fundraising Overview - In 2020, Jin Hong Gas raised a total of RMB 1,874.37 million through an initial public offering, with a net amount of RMB 1,874.37 million after deducting issuance costs of RMB 114.86 million [4]. - As of December 31, 2024, the cumulative usage of the raised funds amounted to RMB 1,604.37 million, leaving a balance of RMB 155.27 million, which includes RMB 90 million in idle funds for cash management and RMB 65.27 million in dedicated fundraising accounts [4][5]. Fundraising Management - The company has established a fundraising management system in compliance with relevant regulations to ensure the proper storage and usage of funds [5][6]. - Dedicated accounts for fundraising have been set up with multiple banks, ensuring strict adherence to the management protocols [5][6]. Actual Usage of Funds - As of December 31, 2024, the company has invested a total of RMB 2,178.32 million in related projects, with specific details available in the attached usage table [7][8]. - The company has approved the use of RMB 51.57 million of raised funds to replace self-raised funds previously invested in fundraising projects [8]. Idle Fund Management - The company has approved the temporary use of idle funds, not exceeding RMB 400 million, to supplement working capital without affecting the implementation of fundraising projects [11][12]. - As of December 31, 2024, no idle funds have been used to supplement working capital [12]. Use of Surplus Funds - The company has approved the use of surplus funds, amounting to RMB 682.40 million, to permanently supplement working capital [16][17]. - Surplus funds have also been allocated to ongoing projects, including the Northern Integrated Circuit Phase II project [17]. Other Fund Usage - The company has utilized part of the raised funds for capital increases and interest-free loans to subsidiaries for project implementation, totaling RMB 436.46 million in capital increases and RMB 453.08 million in loans [20][21]. - The company has also approved the use of raised funds to repay bank loans, with a total repayment amount of RMB 90 million [21]. Compliance and Verification - The report confirms that Jin Hong Gas has complied with all relevant regulations regarding the management and usage of raised funds, with no violations reported [23]. - The sponsor institution has verified that the fundraising storage and usage situation aligns with the disclosed information, confirming compliance with regulatory requirements [23].