Progress Announcement on the Use of Idle Raised Funds for Cash Management

The company and all members of the board of directors guarantee the truthfulness, accuracy, and completeness of the announcement content, without false records, misleading statements, or significant omissions, and assume individual and joint legal responsibilities for the truthfulness, accuracy, and completeness of its content.

I. Cash Management of Authorized Idle Raised Funds

(1) Deliberation Status

Hunan Guangxin Technology Co., Ltd. (hereinafter referred to as "the Company") held its fourth meeting of the sixth board of directors and fifth meeting of the sixth board of supervisors on July 31, 2025, and approved the "Proposal on Using Idle Raised Funds for Cash Management", agreeing that the proposed usage limit of the Company shall not exceed RMB180 million yuan (including this amount) of temporarily idle raised funds will be used for cash management to purchase capital guaranteed financial products with high safety, good liquidity, and low risk (including but not limited to structured deposits, fixed deposits, large denomination certificates of deposit, etc.). The usage period will not exceed 12 months from the date of approval by the company's board of directors. Within the above limit and period, the funds can be used in a revolving manner. The board of directors authorizes the chairman to exercise relevant investment decision-making power and sign relevant documents. The finance department is responsible for specific organization, implementation, and handling of related matters.

The company's use of idle raised funds to purchase financial products does not involve a disguised change in the use of raised funds, and does not affect the normal operation of the raised funds investment plan.

The sponsor of the company, Dongxing Securities Co., Ltd., has issued a non objection verification opinion on this matter. For specific details, please refer to the "Cash Management Announcement on the Use of Idle Raised Funds" (Announcement No.: 2025-079) disclosed by the company on the designated information disclosure platform of the Beijing Stock Exchange (www.bse. cn) on August 4, 2025.

(II) Disclosure Standards

According to the relevant provisions of the Beijing Stock Exchange Listing Rules, if the transaction amount accounts for more than 10% of the latest audited net assets of the listed company and exceeds 10 million yuan, it should be disclosed; If a listed company engages in financial management for 12 consecutive months, the highest balance during that period shall be used as the transaction amount, and the above standards shall apply. The amount of idle raised funds used by the company for cash management this time is 177.8 million yuan. As of the date of this announcement, the company's unexpired balance of idle raised funds used for cash management is 177.8 million yuan, accounting for 34.63% of the company's audited net assets for the year 2024. According to the relevant provisions of the Listing Rules of the Beijing Stock Exchange, the amount of idle raised funds used by the company for cash management meets the disclosure standards and is now disclosed.

2. Cash Management Situation of the Raised Funds

( 1) Basic Information of the Cash Management Products

(2) Explanation of Using Idle Raised Funds for Cash Management

The products used by the company for cash management this time are bank structured deposits, combination deposits, and 7-day notice deposits, with relatively low market risk. It can meet the requirements of high security, good liquidity, and ensuring the safety of principal.

(III) The cumulative cash management amount does not exceed the authorized limit.

(IV) The trustee and fund user of this cash management product

1. The trustee of this cash management product is Shanghai Pudong Development Bank Co., Ltd. Changsha Branch and China Merchants Bank Co., Ltd. Changsha Branch. The board of directors of the company has conducted necessary investigations on the trustee's basic information, credit situation, and transaction performance ability. The trustee's credit situation is good and has the ability to perform transactions.

2. This cash management does not constitute a related party transaction.

III. Internal Control of Cash Management Related Risks

(1) The company will timely track and analyze the investment direction and project progress of various investment products. Once adverse factors are discovered or judged, corresponding preservation measures will be taken in a timely manner to control investment risks;

(2) Independent directors and audit committees have the right to supervise and inspect the use of funds, and may hire professional institutions to conduct audits when necessary;

(III) The use of funds shall be reported by the company's financial officer to the board of directors;

(4) The company will fulfill its information disclosure obligations in a timely manner in accordance with the relevant regulations of the Beijing Stock Exchange.

IV. Risk Warning

The products used by the company for cash management with idle raised funds belong to bank structured deposits, combination deposits, and 7-day notice deposits. Although investment products have undergone strict screening and evaluation, the financial market is greatly influenced by macroeconomic factors, and it cannot be ruled out that this investment product may be affected by market fluctuations. Investors are reminded to pay attention to investment risks.

5. From the authorization of the company's decision-making process until the date of this announcement, the company's cash management situation

(1) The situation of cash management that has not yet expired

6. For reference documents

, the product manual and business vouchers for cash management

Hunan Guangxin Technology Co., Ltd. Company

Board of Directors

2025 August 11th of the year