Chuangyao Technology Plans to Permanently Supplement Working Capital with 119 Million Yuan in Remaining Excess Subscription Funds, All Excess Subscription Funds Will Be Fully Utilized

(Official News) Chuangyao (Suzhou) Communication Technology Co., Ltd. (Stock Code: 688259, Stock Abbreviation: Chuangyao Technology) announced on March 17 that the company plans to use the remaining oversubscribed funds of 118.5005 million yuan (including cash management income and interest) for permanently replenishing working capital. After this use, all oversubscribed funds will be fully utilized, and there will be no impact on the funding needs of the invested projects.

Basic Information on Fundraising

Chuangyao Technology completed its initial public offering of shares in January 2022, raising a net amount of 1,219.6451 million yuan, of which oversubscribed funds amounted to 885.0432 million yuan.

According to the prospectus, the company initially planned to invest the raised funds in the following three projects:

Use of Oversubscribed Funds

As of the disclosure date, the company has used a total of 819.3045 million yuan of oversubscribed funds, of which 780 million yuan was used for permanent replenishment of working capital, and 39.3045 million yuan was used for share repurchases (including stamp duty, commissions, and other transaction fees). The remaining 118.5005 million yuan of oversubscribed funds is planned to be used for permanent replenishment of working capital, accounting for 13.39% of the total oversubscribed funds.

The company has previously used oversubscribed funds three times to replenish working capital, each time in April 2022, August 2023, and November 2024, each amounting to 260 million yuan, representing 29.38% of the total oversubscribed funds each time. Additionally, in August 2023, the company used oversubscribed funds to repurchase shares, with a total actual payment of 39,304,479.43 yuan (including transaction fees).

Approval Procedures and Commitments

On March 17, 2026, the company’s second board of directors held the 20th meeting to approve the relevant proposal. This matter still requires approval from the general meeting of shareholders. Guotai Haitong Securities Co., Ltd., the sponsor institution, issued an unqualified verification opinion on this matter.

The company commits that within 12 months, the total amount of oversubscribed funds used for permanent replenishment of working capital will not exceed 30% of the total oversubscribed funds; within 12 months after this replenishment, the company will not engage in high-risk investments or provide financial assistance to entities other than its controlling subsidiaries.

The announcement shows that the use of oversubscribed funds for permanent replenishment of working capital complies with relevant regulations from the China Securities Regulatory Commission and the Shanghai Stock Exchange regarding the use of listed companies’ raised funds, which helps improve the efficiency of fund utilization, reduce the company’s financial costs, and further enhance profitability.

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