Core Viewpoint - The company has utilized its own funds to pay for part of the fundraising investment project and will replace it with an equivalent amount of raised funds, amounting to RMB 18.62 million, in compliance with regulations regarding the replacement within six months after payment [1][4]. Fundraising Basic Situation - The company raised a total of RMB 1,827,099,961.28 through a non-public offering of 396,334,048 shares at a price of RMB 4.61 per share, with a net amount of RMB 1,814,116,286.85 after deducting issuance costs of RMB 12,983,674.43 [1][2]. - The funds were received on January 16, 2023, and have been managed in a dedicated account with a tripartite supervision agreement signed with the sponsor and the bank [2][3]. Investment Project Situation - The planned investment projects and their funding allocations were adjusted by the company's board, with a total expected investment of RMB 424,754.57 million, of which RMB 331,448.08 million is to be funded from the raised funds [3][4]. Use of Own Funds and Replacement Situation - The necessity for using own funds arose due to difficulties in direct payments from the raised funds for employee salaries and social insurance, which must be processed through the company's basic deposit account [4][5]. - The total amount replaced from the own funds for the investment projects is RMB 18.62 million, specifically for salaries and social insurance related to the new generation of rail transit digital system research and development projects [5][6]. Approval Process - The board of directors approved the use of own funds and the subsequent replacement with raised funds during a meeting held on September 2, 2025, ensuring compliance with necessary approval procedures [5][6]. Impact on the Company - The use of own funds for part of the investment project and the subsequent replacement does not affect the normal implementation of the investment plan and does not change the direction of the raised funds or harm shareholder interests [5][6].

Core Viewpoint - The company has conducted a thorough review regarding the use of its own funds to pay for part of the fundraising investment projects and the subsequent replacement with raised funds, ensuring compliance with relevant regulations and maintaining the integrity of the fundraising process [1][5]. Fundraising Overview - The company raised a total of RMB 1,827,099,961.28 through a non-public offering of 396,334,048 shares at a price of RMB 4.61 per share, with a net amount of RMB 1,814,116,286.85 after deducting issuance costs [1][2]. - The funds were received on January 16, 2023, and verified by Tianzhi International Accounting Firm [1]. Fund Management - The company has established a dedicated account for managing the raised funds and signed a tripartite supervision agreement with the sponsor and the commercial bank holding the funds [2]. Investment Project Details - The planned investment projects and their respective funding allocations include: - Digital Twin Core Technology and Open Platform R&D: RMB 331,448.08 million - New Generation Rail Transit Digital System R&D and Industrialization: RMB 181,411.63 million - New Generation Traffic Digital System R&D and Industrialization: RMB 424,754.57 million - National Sales and Service System Upgrade: RMB 0 million [2]. Use of Own Funds and Replacement - The company faced challenges in directly using raised funds for certain payments, such as employee salaries and social insurance, which necessitated the use of its own funds initially, with plans to replace these with raised funds within six months [4]. - The total amount to be replaced is RMB 1,862.28 million, covering salaries and social insurance for the R&D projects [4]. Approval Process - The company’s board approved the use of its own funds and the subsequent replacement with raised funds during a meeting held on September 2, 2025 [4]. Impact on Company - The use of own funds for project payments and their replacement with raised funds does not affect the normal implementation of investment plans and does not alter the direction of the raised funds or harm shareholder interests [5].

Summary of Key Points Core Viewpoint The report outlines the management and usage of funds raised through a private placement of shares by the company, detailing the total amount raised, its allocation, and the regulatory compliance measures in place to ensure proper fund management. Fundraising Overview - The company raised a total of RMB 1,814,116,286.85 through the issuance of 396,334,048 shares at a price of RMB 4.61 per share, with the funds received on January 16, 2023 [1]. - The funds were verified by Tianzhi International Accounting Firm on the same date [1]. Fund Usage as of June 30, 2025 - Total funds used in 2023: RMB 658,743,205.38 - Total funds used in 2024: RMB 108,815,397.10 - Total funds used in 2025: RMB 67,405,248.47 - Other issuance costs: RMB 3,999,786.90 - Temporary liquidity support: RMB 890,000,000.00 - Interest income from deposits: RMB 4,712,834.96 [2]. Fund Management Practices - The company has established a dedicated fund management system in compliance with relevant laws and regulations, including a special account storage system [2][3]. - A tripartite supervision agreement was signed with several banks to ensure proper management of the raised funds [2][3]. Fund Balance and Account Management - As of June 30, 2025, the total balance in the fund storage accounts was RMB 93,713,658.58, with specific balances in various banks [5]. - The company has completed the necessary procedures to close the special fund accounts, with a balance of zero [5][14]. Temporary Use of Idle Funds - The company has utilized idle funds to temporarily supplement working capital, with a total of RMB 105,000,000.00 used in 2023 and fully returned by January 22, 2024 [6][10]. - An additional RMB 96,000,000.00 was used for working capital, with a portion returned by June 9, 2025 [11] . Cash Management Initiatives - The company approved the use of up to RMB 10.5 billion of idle funds for cash management, investing in low-risk, liquid financial products [12][10]. - Agreements for cash management were signed with multiple banks to facilitate this process [12][10]. Project Implementation Status - The company is actively working on its fundraising projects, although the pace of fund usage has been slower than planned, with ongoing efforts to expedite project progress [8][9].