Batian Ecotypic Engineering to reallocate idle funds for working capital

Shenzhen Batian Ecotypic Engineering Co., Ltd. will re-use up to 247 million yuan of idle raised funds to temporarily supplement working capital for its subsidiaries. This decision, approved at a board meeting on November 24, 2025, aims to improve capital utilization and reduce financial costs, ensuring no adverse impact on ongoing investment projects. The funds, which will be used for production and operation, are expected to be returned to the dedicated fundraising account within 12 months.

These raised funds originated from an A-share issuance approved by the China Securities Regulatory Commission on December 4, 2023, totaling 499,999,999.28 yuan. After deducting issuance expenses, the net raised capital was 485,537,523.15 yuan. The primary investment projects include a nitric acid production high-purity phosphoric acid project and supplementary working capital for debt repayment.

Zhongtian Guofu Securities Co., Ltd., as the sponsor, reviewed the resolution and confirmed that the use of these funds complies with relevant regulations. They stated that the action will not alter the use of the raised funds, harm shareholder interests, or affect the progress of the original investment projects. The temporary allocation is restricted to the company's core business activities and excludes high-risk investments.