XCC Group to use idle raised funds for working capital

Zhejiang XCC Group will temporarily use up to 60 million yuan of idle raised funds to supplement its working capital for up to 12 months, as approved by its board of directors on September 25, 2025. This initiative aims to improve the efficiency of raised funds utilization and reduce short-term bank borrowing costs, without altering the original purpose of the funds or impacting the progress of existing investment projects. The company will return the funds to the dedicated raised funds account upon expiration or as needed for project construction.

This follows previous instances of using idle raised funds for working capital, including 15 million yuan in October 2024, which was fully repaid by September 23, 2025. As of June 30, 2025, the company’s raised funds balance stood at 75.54 million yuan. The company's lead underwriter, CITIC Securities, confirmed that this temporary allocation complies with relevant regulations and does not negatively impact the company's investment plans.