Summary of Key Points Core Viewpoint - Jiangsu Sanfangxiang Ju Materials Co., Ltd. has completed the investment projects funded by the public issuance of convertible bonds and plans to permanently supplement its working capital with the remaining funds, which aligns with the company's operational needs and does not harm the interests of shareholders [1][9]. Fundraising Overview - The company issued 25 million convertible bonds with a face value of 100 RMB each, raising a total of approximately 2.5 billion RMB, with a net amount of 2,487,477,358.49 RMB after expenses [1][2]. - The funds are managed in a dedicated account as per regulatory requirements, ensuring investor protection [2]. Investment Project Details - The main project funded by the raised capital is the "Annual Production of 1.5 Million Tons of Green Packaging Materials Project" at Jiangyin Xingjia New Materials Co., Ltd., with a total committed investment of 248,747.74 million RMB [2][5]. - As of June 30, 2025, the project has reached its intended operational status, with a total investment of 97,333.49 million RMB and remaining funds of 32,802.28 million RMB [5][7]. Use of Idle Funds - The company has temporarily used up to 480 million RMB of idle funds to supplement working capital, with a balance of 472 million RMB as of June 30, 2025 [4][6]. Reasons for Fund Surplus - The surplus funds resulted from cost savings during project implementation, including a reduction in material and equipment prices, and the use of self-owned funds for some supplier payments [7][8]. - Interest income of 135.77 million RMB was also generated during the fund storage period [7]. Future Fund Utilization - The company plans to use the surplus funds of 32,802.28 million RMB for daily operations, while any outstanding contract payments will be settled using self-owned or raised funds [8]. - The dedicated fundraising account will be closed following the permanent allocation of surplus funds [8]. Approval Process - The board and supervisory committee have approved the project completion and fund allocation, pending shareholder meeting approval [9].

Core Viewpoint - The company has completed the fundraising project for the "Jiangyin Xingjia New Materials Co., Ltd. annual production of 1.5 million tons of green packaging materials" and plans to permanently supplement its working capital with the remaining funds of 328.0228 million yuan [1][2][10]. Fundraising Overview - The company issued 25 million convertible bonds with a face value of 100 yuan each, raising a total of approximately 2.487 billion yuan [2][3]. - The net amount raised after expenses was 2,487,477,358.49 yuan [2]. Project Completion and Fund Usage - The project has reached a usable state as of June 30, 2025, with a total investment of 973.3349 million yuan and remaining funds of 328.0228 million yuan [8][9]. - The remaining funds will be used for daily operational activities, and the company plans to return any unused funds to the special account before the shareholders' meeting [10][11]. Reasons for Fund Surplus - The surplus was primarily due to cost savings achieved through negotiations with suppliers and a decrease in material prices during the project [9]. - The company paid some supplier invoices using its own funds, which contributed to the surplus [9]. Impact of Fund Usage - The decision to use the surplus funds for working capital is aligned with the company's operational needs and is expected to enhance the efficiency of fund utilization [10][11]. - The project completion and fund allocation will not adversely affect the company's existing operations [10][11]. Approval Process - The board of directors and the supervisory board have approved the proposal, which will be submitted for shareholder approval [11][12].