Zhengyu Industrial Proposes to Use RMB 300 Million of Idle Raised Funds to Temporarily Supplement Working Capital with a Duration of 12 Months

[Finance News] On March 19, Zhejiang Zhengyu Industrial Co., Ltd. (Stock Code: 603089, Stock Name: Zhengyu Industrial) announced that the company plans to use no more than 300 million yuan of idle raised funds to temporarily supplement working capital, with a usage period of no more than 12 months from the date of board approval.

The announcement shows that Zhengyu Industrial held the 26th meeting of the fifth board of directors on March 19, 2026, during which it approved the proposal on “Using part of idle raised funds to temporarily supplement working capital and opening a dedicated account for raised funds.” This temporary supplement aims to improve the efficiency of fund utilization, further reduce financial costs, and will not affect the normal implementation of the raised investment projects.

Basic Information on Raised Funds

The company completed the issuance of A-shares to specific targets on March 11, 2026, raising a total of 450 million yuan. After deducting issuance costs, the net raised funds amounted to 444.93 million yuan. As of the disclosure date, the company has not yet repaid any previously used raised funds for temporary working capital supplementation.

Progress of Raised Funds Investment Projects

As of March 18, 2026, the balance of the company’s raised funds account was 445.50 million yuan. The investment and usage of each project are as follows:

Specific Arrangements for Temporary Fund Supplementation

According to the announcement, the company plans to use no more than 300 million yuan of idle raised funds to temporarily supplement working capital. The funds will be used solely for production and operation activities related to the company’s main business and will not be directly or indirectly used for new share placements, subscriptions, or for trading stocks, derivatives, convertible bonds, etc., nor for securities investment or other risk investments.

The company emphasizes that upon expiration of the usage period or if the progress of fund utilization accelerates, it will promptly and fully return the relevant funds to the dedicated raised fund account to ensure the normal implementation of the raised investment projects.

To regulate the storage, use, and management of raised funds, the company plans to open a dedicated account for temporary supplement of working capital and authorizes management to handle related matters such as account opening and signing of supervision agreements.

Review Procedures and Sponsor Opinions

This matter has been approved by the 26th meeting of the fifth board of directors and does not require submission to the general meeting of shareholders. The announcement indicates that this matter complies with the “Regulations on the Supervision of Fundraising for Listed Companies,” “Guidelines for Self-Regulation of Listed Companies on the Shanghai Stock Exchange No. 1—Standardized Operations,” and other relevant laws, regulations, and normative documents.

The company’s sponsor, after verification, believes that Zhengyu Industrial’s use of idle raised funds to temporarily supplement working capital complies with relevant laws and regulations, has completed necessary approval procedures, and does not involve covert changes in the use of raised funds. It does not affect the normal progress of the fundraising investment plan and has no objections to this matter.

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