Fundraising Overview - The company has publicly issued convertible bonds with a total face value of 893.7 million yuan, with 8,937,000 bonds issued as of September 27, 2019 [2][3] - After deducting underwriting and sponsorship fees, the net amount raised is 878,038,750 yuan [2][3] Fund Utilization - As of June 30, 2025, the company has invested a total of 539,269,010.33 yuan from the raised funds, with 424,027,212.94 yuan utilized from September 28, 2019, to December 31, 2024 [3] - The remaining balance of the raised funds is 434,386,304.07 yuan, which includes 164,386,304.07 yuan in bank deposits and 270 million yuan in bank wealth management products [3] Fund Management - The company has established special accounts at designated banks for managing the raised funds, ensuring strict approval procedures for fund usage [4][5] - The company has the authority to use up to 600 million yuan for cash management, investing in low-risk, liquid wealth management products [6][7][8] Fund Investment Projects - There have been no changes to the investment projects funded by the raised capital, and the company has adhered to all regulatory requirements regarding fund usage [10][11] Financial Reporting - The company has disclosed all information regarding the use of raised funds in a timely and accurate manner, with no violations reported [11][46]

Summary of Key Points Core Viewpoint - The company is establishing additional fundraising accounts to enhance the management and usage of raised funds for its project of producing 2 million high-end drive shafts annually, ensuring compliance with regulatory requirements and protecting investor interests [1][3][5]. Group 1: Fundraising Overview - The company has been approved to publicly issue convertible bonds amounting to RMB 893.7 million, with each bond having a face value of RMB 100 [1]. - As of December 31, 2024, the remaining balance of the raised funds is RMB 465.33 million, with RMB 15.33 million in the special fundraising account and RMB 450 million invested in financial products [2]. Group 2: Management and Storage of Funds - The company has established a special account for the management of raised funds, with agreements signed with banks to ensure proper oversight [1][2]. - The new fundraising accounts will be opened at Shanghai Pudong Development Bank, Bank of China, and China Minsheng Bank to facilitate the management of funds for the high-end drive shaft production project [2][4]. Group 3: Impact of New Fundraising Accounts - The establishment of new fundraising accounts will not affect the normal operation of the fundraising investment projects and is in line with regulatory requirements [3][4]. - The board of directors and the supervisory board have approved the establishment of these accounts, confirming that it will enhance the efficiency of fund management without harming shareholder interests [4][5]. Group 4: Approval Process - The proposal for the new fundraising accounts was reviewed and approved in the fifteenth meetings of both the board of directors and the supervisory board [4]. - The board believes that the new accounts will improve the efficiency of fundraising operations and are in the best interest of the company and its shareholders [4].