Core Points - The company has successfully raised a total of RMB 406,682,100.00 through the issuance of convertible bonds, with the funds being managed in a dedicated account [1][2] - As of June 30, 2025, the company has utilized RMB 38,480,600.00 of the raised funds for various projects, with a significant portion still remaining in cash management products [3][4] - The company has entered into a tripartite supervision agreement with Huatai United Securities and CITIC Bank to ensure proper management and usage of the raised funds [3] Fundraising Overview - The total amount raised through the issuance of convertible bonds is RMB 406,682,100.00, with 4,066,821 bonds issued at a face value of RMB 100.00 each [1] - The funds were verified by Rongcheng Accounting Firm, confirming the total amount raised and the deduction of issuance costs [1] Fund Usage and Management - The company has allocated RMB 13,648,643.17 for replacing pre-invested project expenditures and has redeemed RMB 330,000,000.00 in cash management products [2] - As of June 30, 2025, the total balance of the raised funds in dedicated accounts is RMB 82,003,848.52, distributed across multiple accounts at CITIC Bank [3] Project Investment Status - The company has invested a total of RMB 38,480,600.00 in various projects, with specific projects experiencing delays due to market conditions and strategic decisions [6][7] - The company has decided to temporarily postpone investments in real estate and renovations, amounting to RMB 84,200,000.00, due to economic pressures and a focus on optimizing existing resources [8] Cash Management of Idle Funds - The company has approved the use of up to RMB 300,000,000.00 of idle funds for cash management, ensuring that it does not affect ongoing projects [4][10] - As of June 30, 2025, RMB 270,000,000.00 of idle funds have been utilized for cash management, with the remaining funds stored in dedicated accounts [10]

Core Viewpoint - The company has decided to postpone the expected completion dates for two fundraising projects to December 31, 2027, due to changes in market demand and project progress [5][10][11] Fundraising Overview - The company raised a net amount of RMB 398,479,171.59 from the issuance of convertible bonds, which was fully received on March 8, 2023 [1][3] - The total investment for the fundraising projects is RMB 40,668.21 million, with RMB 39,847.92 million planned to be allocated from the raised funds [3][5] Project Progress - As of June 30, 2025, the cumulative investment in the projects is RMB 3,848.06 million, representing 9.66% of the planned investment [5][9] - The two main projects are: 1. Urban Lifeline Safety Monitoring Platform Construction 2. Digital Twin Computing Center and Production Base Construction [5][6] Delay Reasons - The delay is attributed to the unimplemented purchase and renovation of properties totaling RMB 84.20 million, which accounts for 26.17% of the planned investment [5][6] - The company aims to optimize existing resources and reduce costs due to a slowdown in urban infrastructure investments [5][6] Future Plans - The company will continue to manage the raised funds strictly and will focus on equipment purchases and R&D investments [9][10] - The company plans to actively explore potential market demands related to the fundraising projects and will invest in phases according to actual progress [9][10] Approval Process - The board of directors and the supervisory board have approved the postponement of the project completion dates, confirming that the decision complies with relevant regulations and does not harm shareholder interests [10][11]

Core Viewpoint - The company has decided to extend the expected completion date for two fundraising projects to December 31, 2027, due to current market conditions and project progress [1][12][13] Fundraising Overview - The company raised a net amount of approximately RMB 398.48 million from the issuance of convertible bonds on March 2, 2023, with all funds received by March 8, 2023 [1][2] - The funds are being managed in accordance with relevant regulations, ensuring dedicated accounts for their storage and use [2][6] Project Progress - The two main projects funded by the raised capital are: 1. Urban Lifeline Safety Monitoring Platform Construction 2. Computing Power Center and Production Base for Digital Twin [3][4] - As of June 30, 2025, the cumulative investment in these projects was approximately RMB 39.85 million, with a progress rate of 9.66% [5][6] Delay Reasons - The delay in project completion is attributed to: - A total of RMB 84.20 million planned for property acquisition and renovation not yet implemented, representing 26.17% of the total planned investment [6][8] - A slowdown in investment in urban infrastructure due to macroeconomic pressures [8][10] Project Details - The Urban Lifeline project aims to integrate and enhance government and enterprise monitoring systems using advanced technologies like IoT and big data [7][8] - The Computing Power Center is designed to optimize cost structures and enhance data security, although it currently does not generate direct revenue [8][9] Future Plans - The company plans to use the remaining funds primarily for equipment purchases and research and development, while actively exploring potential market demands related to the projects [10][12] - The company will optimize resource allocation and monitor project progress closely to ensure timely completion [10][11]