Core Viewpoint - The company intends to continue using part of its idle raised funds and self-owned funds for cash management to improve fund utilization efficiency and generate returns for the company and its shareholders [1][10]. Summary by Sections 1. Basic Situation of Raised Funds - The company raised a total of RMB 2,199,999,992.00 through the issuance of 106,024,096 A shares at a price of RMB 20.75 per share, with a net amount of RMB 2,169,220,724.07 after deducting issuance costs [1]. 2. Investment Projects and Reasons for Idle Funds - The net raised funds are allocated to three projects with a total investment of RMB 216,922.07 million, which includes enhancements to middleware products and development of AI-based security products [2]. 3. Cash Management of Idle Raised Funds - The company plans to use up to RMB 70,000 million of idle raised funds for cash management, focusing on safe and liquid investment products such as structured deposits and government bond reverse repos [5][6]. - The investment period will not exceed twelve months, and the funds can be rolled over within the approved limit [5]. 4. Cash Management of Idle Self-Owned Funds - The company intends to use up to RMB 30,000 million of idle self-owned funds for cash management, also focusing on low-risk financial products [7]. - Similar to the raised funds, the investment period will not exceed twelve months, and the funds can be rolled over within the approved limit [7]. 5. Risk Control Measures - The company will implement strict risk control measures, including selecting reputable financial institutions for investment products and ensuring that investments do not involve high-risk securities [8]. 6. Impact on the Company - Utilizing idle funds for cash management is expected to enhance fund efficiency and yield returns without affecting the progress of investment projects or altering the intended use of raised funds [6][10]. 7. Approval Procedures - The proposals for cash management of both idle raised and self-owned funds have been approved by the company's board and supervisory committee, with independent directors expressing clear agreement [9][10].

Core Viewpoint - 东方通 has demonstrated resilience and growth in a challenging market environment, achieving significant revenue increases and improving its competitive position through strategic initiatives and technological integration, particularly in artificial intelligence [1][2][3] Financial Performance - In 2024, 东方通 reported revenue of 758 million yuan, a year-on-year increase of 36.09%, while in Q1 2025, revenue reached 134 million yuan, reflecting a substantial growth of 77.41% year-on-year [2][3] - Despite a net loss of 576 million yuan in 2024, the loss narrowed by 14.45% compared to 2023, primarily due to goodwill impairment provisions totaling 408 million yuan related to its smart emergency and information security businesses [2][3] - In Q1 2025, the net loss further decreased by 58.12%, indicating improved financial health [2] Business Segments - The middleware segment performed strongly in 2024, generating 363 million yuan in revenue, up 31.08% year-on-year, with new products achieving over 100% growth [2][3] - The network information security business also showed growth, with revenue of 297 million yuan, a 28.54% increase year-on-year [3] - The digital transformation business experienced over 100% growth after strategic adjustments [3] Market Position and Industry Outlook - 东方通 has maintained its leadership in the domestic middleware market for 16 consecutive years, with a comprehensive product system that competes effectively with international brands like IBM and Oracle [4] - The Chinese middleware market is projected to reach 12.8 billion yuan by 2026, driven by increasing demand for products compatible with artificial intelligence and big data [4] - The company is well-positioned to capitalize on the growth opportunities in the domestic market, supported by favorable national policies and a growing customer base [4] Challenges and Responses - The company is currently facing a risk warning for its stock due to an ongoing investigation by regulatory authorities, which has affected its audit process [5] - In response, 东方通 is cooperating with the investigation and has initiated internal control reviews, while ensuring stable operations and communication with clients and partners [5] - The management team is committed to addressing challenges proactively and enhancing the company's governance and operational quality [5]