Fundraising Overview - The company has received approval from the China Securities Regulatory Commission for a non-public offering of up to 304,070,293 shares, raising a total of no more than 2,435 million RMB [1] - The actual issuance was 264,673,906 shares at a price of 9.19 RMB per share, with the funds verified by an accounting firm [1] Changes in Fund Usage - The company has decided to change the project "Introduction of 4 A320 aircraft" to "Introduction of 2 A320 aircraft," reallocating the remaining funds to a new project "Introduction of 5 C909 aircraft" [2][3] - The original investment amount for the A320 project was 1,192.10 million RMB, which has been reduced to 754.10 million RMB, with the remaining 438 million RMB redirected to the new C909 project [2] - The project "Purchase of 14 aircraft spare engines" has been terminated, with its funds of 487 million RMB also redirected to the C909 project [2] Tripartite Supervision Agreement - A tripartite supervision agreement has been signed among the company, its wholly-owned subsidiary Yunfei Aircraft Leasing, and the banks involved to ensure proper management of the raised funds [4][6] - The agreement stipulates that the funds for the A320 project must be used solely for that purpose and outlines the responsibilities of each party in monitoring fund usage [4][5] - The new agreement includes provisions for regular checks and balances to protect the interests of small investors [4][5] Supplementary Agreement - A supplementary agreement has been signed to adjust the terms of the original tripartite supervision agreement regarding the new C909 project [6] - The dedicated account for the C909 project has a balance of 4,135,007.78 RMB as of August 7, 2025, and is restricted to the project's funding [6][7]

Core Viewpoint - The company, Huaxia Airlines, is changing the use of raised funds and the implementation subject of some fundraising investment projects to improve fund utilization efficiency and support its main business development [1][8][25]. Fundraising Basic Situation - Huaxia Airlines raised a total of approximately RMB 2.43 billion through a non-public offering of shares, with a net amount of approximately RMB 2.41 billion after deducting issuance costs [1]. - The company issued 264,673,906 shares at a price of RMB 9.20 per share, with the approval from the China Securities Regulatory Commission [1]. Fundraising Usage Situation - As of March 31, 2025, the total amount planned for investment in projects was RMB 406,894.40 million, with cumulative investment of RMB 240,960.20 million and unutilized funds of RMB 141,593.14 million [2]. - The project "Introduction of 4 A320 series aircraft" has not yet formed assets, with cumulative investment being partial prepayment for 2 aircraft [2]. Change in Fundraising Purpose and Project Implementation Subject - The company plans to change the implementation subject of the project "Introduction of 4 A320 series aircraft" from Huaxia Airlines to its wholly-owned subsidiary, Yunfei Aircraft Leasing [8][10]. - The total amount for the new project "Introduction of 5 C909 series aircraft" is RMB 92,500.00 million, which will be funded from the remaining funds [9][12]. Reasons for Change - The change is driven by the need to ensure the normal operation of aircraft and to adapt to macroeconomic conditions and supplier delivery speeds [10][11]. - The company aims to enhance fund utilization efficiency and support its strategic development in the regional aviation market [10][14]. New Investment Project Situation - The new project involves the introduction of 5 C909 series aircraft, with an estimated investment of RMB 92,500.00 million [12]. - The expected delivery of the aircraft is anticipated to be completed within the year 2025 [12]. Impact of Changes on the Company - The changes are expected to align with the company's strategic development needs and improve the efficiency of fund utilization, without harming the interests of the company and its shareholders [23][25]. - The company remains focused on the regional aviation market, which is projected to grow due to increasing demand for air travel in smaller cities [14][16].

Core Viewpoint - Huaxia Airlines (002928) announced changes to its fundraising project, including a reduction in the number of aircraft to be acquired and a shift in the implementation entity for the project [1] Summary by Relevant Sections Fundraising Project Changes - The company will change the plan to "introduce 4 A320 series aircraft" to "introduce 2 A320 series aircraft" [1] - The implementation entity for the fundraising project will be changed from Huaxia Airlines to its wholly-owned subsidiary, Yunfei Aircraft Leasing (Shanghai) Co., Ltd. [1] Financial Adjustments - The originally planned investment of 487 million yuan for "purchasing 14 spare engines" will be adjusted to fund the "introduction of 5 C909 series aircraft" [1] - The total amount for the revised fundraising project is 925 million yuan, which accounts for 38.39% of the net fundraising amount [1] Approval Process - The changes will require approval from the company's shareholders' meeting [1]