Zhengyu Industrial's 450 million yuan fixed increase project adds new implementation location to accelerate construction progress of "Zhengyu Smart Manufacturing Park ( Phase 2 )"

Shanghai Stock Exchange, March 20 — Zhejiang Zhengyu Industrial Co., Ltd. (Stock Code: 603089, Stock Name: Zhengyu Industrial) announced that the company held the 26th meeting of the fifth board of directors on March 19, during which it approved the proposal for adding new locations for some fundraising projects. The company decided to add No. 1-20 Zhengyu, Yanghuan Economic Development Zone, Yuhuan City, as the implementation site for the “Zhengyu Intelligent Manufacturing Park (Phase II)” project.

Basic Information on Fundraising

Zhengyu Industrial completed a targeted share issuance in March 2026, with an issuance price of 12.61 yuan per share, issuing 35,685,963 shares, raising a total of 449,999,993.43 yuan. After deducting issuance costs of 5,065,682.04 yuan, the net funds raised amounted to 444,934,311.39 yuan. Of this, 35,685,963.00 yuan was recorded as paid-in share capital, and 409,248,348.39 yuan as capital reserve (share premium). All funds were received by March 11, 2026, and verified by Tianjian Certified Public Accountants (Special General Partnership).

Overview of Fundraising Investment Projects

The company’s total fundraising amount for this round does not exceed 450 million yuan, with the net amount after deducting issuance costs to be used for the following projects:

Note: The proposed investment amount from the raised funds is the total fundraising amount before deducting issuance expenses. Under the premise of not changing the investment projects, the company may adjust the proposed investment amounts based on actual project needs.

Details of the New Implementation Location

Comparison of Location Changes

Note: The newly added project location, No. 1-20 Zhengyu in Yuhuan City Economic Development Zone, is the site of Zhengyu Intelligent Manufacturing Park (Phase I), and all belong to the company’s Zhengyu Manufacturing Park project.

Reasons for Adding the New Location

The announcement states that because the original location of Zhengyu Intelligent Manufacturing Park (Phase II) in Yuhuan City Xuanyuan Phase III North has not yet completed infrastructure construction, the company has decided to add a new location to optimize internal resource allocation, reduce operating costs, and improve overall operational and management efficiency. The company indicated that this move aims to realize the economic value and investment returns for all shareholders as early as possible, and to accelerate the construction progress of the fundraising projects, without changing the project’s main entity, investment direction, total investment, or implementation content.

Impact on the Company and Approval Procedures

The company emphasizes that the addition of new locations for some fundraising projects is a reasonable arrangement to accelerate the industrialization process of the projects, ensure effective management and implementation, and aligns with the company’s long-term development and fundraising plans. It does not change the purpose or method of using the raised funds, nor does it involve covert changes to the investment direction or harm the interests of the company and shareholders, especially minority shareholders.

The board of directors believes that this matter does not constitute a change in the use of raised funds and is within the authority of the board, thus does not require approval from the general shareholders’ meeting. GF Securities Co., Ltd., the sponsor, issued a clear verification opinion, stating that the addition of new locations for the fundraising projects complies with relevant laws and regulations, has completed necessary approval procedures, and does not involve changing or covertly changing the use of funds or harming the interests of the company and shareholders. The company has no objections to this matter.

This adjustment will help Zhengyu Industrial accelerate the construction of the “Zhengyu Intelligent Manufacturing Park (Phase II)” project, improve overall operational efficiency, and lay a solid foundation for the company’s future development.

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