Xiangtan Electric to utilize idle raised funds for working capital

Xiangtan Electric Manufacturing Co. has announced its plan to temporarily use up to 1,000,000,000 yuan of idle raised funds for working capital for a period not exceeding 12 months. This decision, approved by the ninth board of directors and ninth supervisory committee on October 10, 2025, aims to enhance capital efficiency and reduce financial costs. The company will return the funds to dedicated accounts as project needs arise, ensuring no impact on its investment plans or change in the use of raised capital. Cathay Haitong Securities, acting as the sponsor, provided a favorable verification opinion.

In conjunction with this, Xiangtan Electric also adjusted the allocation of raised funds across its investment projects. The total net raised funds from the 2024 non-public issuance amounted to 1,979,294,567.97 yuan. Following the adjustments, the "Aviation Electrical System Series Development and Industrialization Project" will receive 94,929.46 yuan, the "Magnetic Levitation Bearing High-Speed Motor System Research and Development and Industrialization Project" will receive 52,000.00 yuan, and "Supplementary Working Capital" will receive 51,000.00 yuan.

Additionally, the company will reallocate funds across its dedicated bank accounts, transferring 510,000,000.00 yuan to Industrial and Commercial Bank of China for supplementary working capital, 520,000,000.00 yuan to Bank of China for the magnetic levitation project, and 200,000,000.00 yuan to Export-Import Bank of China for the aviation electrical system project. These adjustments were also approved by the board and supervisory committee, with a positive opinion from the sponsor, confirming no change in the ultimate use of funds or impact on investment plans.