Huayou Cobalt closes bond projects, reallocates surplus funds to working capital

Zhejiang Huayou Cobalt announced the completion of its public offering of convertible corporate bonds projects and the permanent allocation of surplus proceeds to working capital. The total amount of proceeds from the convertible bond issuance was 760,000 yuan, with a net amount of 755,383.96 yuan after deducting issuance expenses. The proceeds were received on March 2, 2022.

The company's board of directors, supervisory board, and audit committee approved the project closure and the reallocation of the remaining 26,595.79 yuan (including investment and interest income) to supplement working capital for daily operations. This decision, made on October 22, 2025, aligns with regulatory requirements, as the reallocated amount is less than 10% of the net proceeds. The company confirmed that the project completion and fund reallocation will not negatively impact its operations or shareholder interests.

During the project's execution, the company optimized construction processes and resource utilization, resulting in cost savings and enhanced efficiency. Temporary use of idle proceeds for cash management also generated investment income and bank interest, contributing to the surplus. These measures collectively led to the reported surplus funds.