Securities code: 688608 Securities abbreviation: Hengxuan Technology Announcement No.: 2025-003

Hengxuan Technology (Shanghai) Co., Ltd

Announcement on the use of part of the idle raised funds for cash management

The Board of Directors and all directors of the Company guarantee that the content of this announcement does not contain any false records, misleading statements or statements

and assume individual and joint responsibility for the authenticity, accuracy and completeness of its contents.

On January 26, 2025, Hengxuan Technology (Shanghai) Co., Ltd. (hereinafter referred to as the "Company") was held

The fifteenth meeting of the second board of directors and the fifteenth meeting of the second board of supervisors deliberated and approved the "About Making

The proposal to use part of the temporarily idle raised funds for cash management", agreed that the company will ensure that the fundraising will not be affected

Under the premise of the schedule of the use of funds for financial security and investment projects, the use shall not exceed 800 million yuan (including 800 million yuan)

The temporarily idle raised funds are used for cash management and are used to purchase high-security, high-liquidity principal-guaranteed finance

Wealth management products such as products or structured deposits, within the above limit, the funds can be used on a rolling basis for a period of use

No more than 12 months from the date of approval by the Board. The Board of Directors authorizes the Chairman of the Board to exercise this decision-making power and

Sign the relevant legal documents, and the specific matters shall be organized and implemented by the Finance Department. There is no need to submit this matter to the general meeting of shareholders

will be considered.

1. The basic situation of the funds raised

According to the China Securities Regulatory Commission's "About Agreeing to Hengxuan Technology" issued on October 23, 2020

In the approval of the registration of the initial public offering of shares of (Shanghai) Co., Ltd. (Zheng Jian Xu Xu [2020] No. 2752), the company was approved to issue 30 million ordinary shares of RMB to the public at an issue price of RMB 162.07 per share, and the total amount of funds raised in this offering was RMB 486,210.00 million, and after deducting the issuance expenses of RMB 103,318,800 excluding tax, the actual net amount of funds raised was RMB 4,758,781,200. All of these funds have been disbursed. Lixin Certified Public Accountants (Special General Partnership) verified the funds in place for the company's public issuance of new shares.

On December 9, 2020, the "Capital Verification Report" (Xinhuishi Bao Zi [2020] No. ZA16018) was issued. firm

In accordance with the regulations, the raised funds have been managed by a special account, and the company has signed a tripartite supervision agreement with the sponsor institution and the bank supervising the special account for raising funds. For details, please refer to the "Announcement on the Listing of Initial Public Offerings on the Science and Technology Innovation Board" disclosed by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn) on December 15, 2020

The book.

2. Use of raised funds

As of September 30, 2024, the actual use of the company's raised funds is as follows:

Unit: RMB 10,000 yuan

Serial No. Project Name Raised Funds Committed Investment As of September 30, 2024 Record No

Total (adjusted) Cumulative investment amount

1 Smart Bluetooth Audio Chip 2020-310115-

Level Item 45,031.79 46,469.93 65-03-001260

2 Smart WiFi Audio Chip Research 2020-310115-

Development and industrialization projects 30,814.94 31,765.82 65-03-001253

3 Type-C audio chip upgrade 2020-310115-

Project (terminated) 27.04 27.04 65-03-001252

4 R&D center construction project 16,705.13 17,086.47 2020-310115-

65-03-001261

5 Development and science and technology reserve projects 107,421.10 70,853.03

Total 200,000.00 166,202.29

Note: On April 25, 2022, the company held the 19th meeting of the first board of directors and the 13th meeting of the first board of supervisors

At the meeting, the "Proposal on Changing Part of the Fundraising Projects and the Postponement of the Fundraising Project" was deliberated and passed, and the "Type-C" was terminated

audio chip upgrade project", and the remaining raised funds from the project will be used for the "smart Bluetooth audio chip upgrade project".

Since the raised funds need a certain period of investment in the construction and investment of the project, and according to the company's raised funds

Using the plan, part of the company's raised funds is temporarily idle.

3. The basic situation of using temporarily idle raised funds for cash management

(1) Investment purpose

The company's fund-raising projects are being actively promoted, and the funds need to be gradually invested in stages and projects

Fund-raising projects, so the follow-up of the funds that have not been put into use as planned will be partially idle in the short term.

In order to improve the efficiency of the use of raised funds, the rational use of part of the temporarily idle raised funds to ensure that the raised funds are not affected

Under the condition of the safety of the construction and use of gold projects and the raised funds, the company's income will be increased for the company and its shareholders

More returns.

(2) Quota and duration

On the premise of ensuring the construction and use of the raised funds project, the company purchases in accordance with the proposed wealth management products

It is planned to use no more than 800 million yuan (including 800 million yuan) of idle raised funds to purchase wealth management products, and it is valid for the period

Within the limit, the funds can be used on a rolling basis. The term of use shall not exceed 12 months from the date of approval by the Board of Directors.

(3) Varieties of investment products

In order to control risks, the issuers of wealth management products are financial institutions such as banks, securities companies or trust companies that can provide capital guarantee commitments, and the investment varieties are high-security and liquid principal-guaranteed financial products or structured deposits and other wealth management products.

(iv) Validity of the resolution

It shall be valid for 12 months from the date of deliberation and approval by the board of directors and the board of supervisors of the company.

(v) Methods of implementation

Within the scope of the quota, the chairman of the board of directors is authorized to exercise the investment decision-making power and sign relevant contract documents, including but not limited to: selecting a qualified professional wealth management institution as the trustee, clarifying the amount and period of entrusted wealth management, selecting the type of entrusted wealth management product, signing contracts and agreements and other legal documents. The company's specific investment activities are organized and implemented by the company's financial department.

The above-mentioned wealth management products shall not be used for pledge, and the special settlement account for the product shall not be used for non-raised funds or other purposes. If a special settlement account for products is opened or cancelled, the company will fulfill its information disclosure obligations in a timely manner.

(6) Information disclosure

The company will fulfill its information disclosure obligations in a timely manner in accordance with the relevant regulations of the Shanghai Stock Exchange, and will not change the use of raised funds in disguise.

(7) Distribution of cash management income

The company's cash management proceeds belong to the company, and are preferentially used to make up for the insufficient investment amount of the fund-raising project, as well as the liquidity required for the company's daily operation, and strictly follow the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the regulatory measures for raising funds to manage and use the funds, and the cash management will be returned to the special account for raising funds after expiration.

Fourth, the impact on the company's daily operations

The company's plan to use part of the temporarily idle raised funds for cash management is carried out on the premise of ensuring the funds required for the company's fund-raising projects and ensuring the safety of the raised funds, which will not affect the development and construction process of the company's fund-raising investment projects and the normal operation of the fund-raising investment projects, nor will it affect the normal development of the company's main business. At the same time, timely cash management of temporarily idle raised funds can obtain certain investment returns, which is conducive to further improving the overall performance level of the company and seeking more investment returns for the company and shareholders.

5. Investment risks and risk control measures

(1) Investment risk

Although the company chooses low-risk investment cash management products, the financial market is greatly affected by the macroeconomy, and the company will intervene in a timely and appropriate amount according to the economic situation and changes in the financial market, but it is not excluded that the investment will be affected by market fluctuations.

(2) Risk control measures

1. The company will handle relevant cash management business in strict accordance with the relevant laws and regulations such as the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the Articles of Association and the Company's Management System for Raised Funds.

2. The company's internal audit department is responsible for auditing and supervising the use and custody of cash management, and regularly reviewing the approval of cash management, actual operation, use of funds and profit and loss.

3. The company's finance department arranges special personnel to analyze and track the investment direction and project progress of cash management products in a timely manner, and once unfavorable factors are found or judged, corresponding preservation measures must be taken in time to control risks.

4. Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and if necessary, they can hire professional institutions to conduct audits.

5. The company will strictly comply with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange to fulfill the obligation of information disclosure in a timely manner.

6. Explanation of special opinions

(1) Opinions of the Board of Supervisors

The Board of Supervisors believes that the company's use of idle raised funds for cash management does not conflict with the implementation plan of the investment project of the raised funds, will not affect the construction of the investment project of the raised funds and the normal use of the raised funds, is in line with the interests of the company and all shareholders, and does not harm the interests of the company and all shareholders, especially small and medium-sized shareholders.

In summary, the board of supervisors of the company agreed to use no more than 800 million yuan of idle raised funds for cash management.

(2) Opinions of the sponsor institution

After verification, the sponsor believes that:

In accordance with relevant laws and regulations, the company has formulated an internal control system for fund management, storage and use of raised funds, and the company has implemented special account storage management for raised funds, and signed a supervision agreement for raised funds.

The company's use of part of the idle raised funds for cash management has been deliberated and approved by the company's board of directors and board of supervisors, and the necessary legal procedures have been fulfilled, in line with relevant laws and regulations and exchange rules, and there is no need to submit it to the company's general meeting of shareholders for deliberation.

The company's use of part of the idle raised funds for cash management is in line with the requirements of relevant laws, regulations and normative documents such as the Listing Rules of the Shanghai Stock Exchange Science and Technology Innovation Board, the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies and the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation. And it can improve the efficiency of capital use, which is in line with the interests of the company and all shareholders.

To sum up, the sponsor has no objection to the company's use of idle raised funds for cash management.

The announcement is hereby made.

Hengxuan Technology (Shanghai) Co., Ltd

Board of Directors

January 28, 2025