Yantai Yatong Precision Machinery Co., Ltd. Announcement on the Redemption and Continued Cash Management of Temporarily Idle Raised Funds

Stock Code: 603190 Stock Short Name: Yatong Precision Announcement No.: 2026-018

Yantai Yatong Precision Machinery Co., Ltd.

Announcement on the Expiration of the Redemption of Cash Management Upon Maturity Using Temporarily Idle Proceeds and the Continued Cash Management

The Board of Directors and all directors of the Company hereby guarantee that this announcement does contains no false records, misleading statements, or material omissions, and assume legal responsibility for the truthfulness, accuracy, and completeness of the contents of this announcement.

Key Matters:

● Type of Investment: Structured deposits

● Investment Amount: RMB 40.00 million

● Consideration and Approval Procedures Completed: Yantai Yatong Precision Machinery Co., Ltd. (hereinafter referred to as the “Company” or “Yatong Precision”) convened the 2nd meeting of the third session of the Board of Directors on February 9, 2026, and approved, by way of the vote on the proposal titled “Proposal on Using Temporarily Idle Proceeds for Cash Management,” agreeing that, under the premise of ensuring that it does not affect the implementation of investment projects using the proceeds and the safety of the proceeds, the Company may use temporarily idle proceeds with a total额度 not exceeding RMB 200 million for cash management. The sponsor has issued a verification opinion with no objection. This matter does not require submission to the Company’s general meeting of shareholders for consideration and approval.

● Risk Warning: Although the Company chooses cash management products that are principal-protected with high safety and good liquidity, and overall risks are controllable, the financial market is significantly affected by macroeconomic conditions, and the investment returns from this investment may not be excluded from being affected by market fluctuations.

I. Overview of Cash Management Using Temporarily Idle Proceeds This Time

(1) Purpose of This Cash Management

To improve the efficiency of the use of proceeds, under the condition of not affecting the funding needs for the Company’s projects using the proceeds and ensuring the safety of funds, the Company reasonably uses temporarily idle proceeds for cash management, improves the efficiency of fund utilization, increases the Company’s returns, will not affect the development of the Company’s main business, and the Company’s arrangements for fund utilization are reasonable.

(2) Cash Management Quota

The investment amount for this cash management by the Company is RMB 40.00 million.

(3) Source of Funds

1. The funds for this cash management are the Company’s temporarily idle proceeds.

2. Approved by the China Securities Regulatory Commission’s “Reply on Approving the Initial Public Offering of Stocks by Yantai Yatong Precision Machinery Co., Ltd.” (CSRC Approval [2022] 2726), and with approval by the Shanghai Stock Exchange, Yantai Yatong Precision Machinery Co., Ltd. conducted an initial public offering of 30 million shares of RMB-denominated ordinary shares (A shares), with an issue price of RMB 29.09 per share. The total proceeds from the issuance were RMB 8,727.00 million. After deducting the issuance expenses for this offering, the net proceeds from the offering were RMB 7,843.481 million. The aforesaid proceeds were deposited into the proceeds special account on February 14, 2023. Rongcheng Certified Public Accountants (Special General Partnership) conducted verification of the fund availability for this issuance and issued the “Capital Verification Report” (“Rongcheng Yan Zi [2023] 100Z0004”). The Company, in accordance with the “Shanghai Stock Exchange Listing Rules for Self-Regulatory Supervision Guidance No. 1—Standardized Operation” and relevant provisions, has stored the proceeds in special accounts, and entered into a “Tripartite Supervision Agreement for Proceeds” with the bank(s) where the proceeds are deposited and with the sponsor.

(4) Basic Information of the Cash Management Products

The Company entered into a contract for the purchase of corporate structured deposit products with the Yantai Laizhou Sub-branch of China Merchants Bank on March 31, 2026. The specific details are as follows:

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(5) Cash Management of Proceeds Over the Past 12 Months, Up to Now

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Note: Actual return figures are retained to two decimal places. If the total does not match the sum of each sub-item due to decimal places, it is caused by rounding up and down.

II. Consideration and Approval Procedures

(1) Board of Directors Consideration

On February 9, 2026, the Company convened the 2nd meeting of the third session of the Board of Directors. The proposal titled “Proposal on Using Temporarily Idle Proceeds for Cash Management Quota” was approved with a voting result of 7 in favor, 0 against, and 0 abstentions. It agreed that, under the condition of not affecting the funding needs of the Company’s projects using the proceeds and ensuring the safety of funds, the Company may use temporarily idle proceeds of no more than RMB 200 million for cash management, investing in various principal-protected products with high safety and good liquidity, including but not limited to structured deposits, call deposits, notice deposits, time deposits, large certificates of deposit, certificates of deposit, etc. The usage period of the quota authorized by the Board of Directors is 12 months from the date on which the 2nd meeting of the third session of the Board of Directors reviewed and approved the matter. The sponsor has issued an explicit opinion with no objection. This matter does not require submission to the Company’s general meeting of shareholders for consideration and approval.

III. Analysis of Investment Risks and Risk Control Measures

(1) Investment Risks

Although the cash management products selected by the Company are principal-protected products with high safety and good liquidity, and the overall risk is controllable, the financial market is significantly affected by macroeconomic conditions. There is still no guarantee that the investment returns will not be affected by market fluctuations.

(2) Risk Control Measures

The Company will strictly follow the authorization of the Board of Directors to select principal-protected products with high safety and good liquidity, thereby safeguarding the safety of funds. The Company’s finance department will establish ledgers to manage the purchased products and do a good job in accounting for the use of funds. At the same time, it will closely monitor and analyze the product’s investment direction and progress. If any investment risk factors are identified, the Company will timely step in and take corresponding measures to control investment risks. The Company’s independent directors and the audit committee have the right to supervise and inspect the use of funds.

IV. Impact on the Company

The Company’s plan to use a portion of temporarily idle proceeds for cash management this time will be implemented on the premise of ensuring that it does not affect the construction of projects using the proceeds and ensuring the safety of funds; it will not affect the funding needs and project progress of the Company’s projects using the proceeds, nor will it affect the normal development of the Company’s main business. Meanwhile, conducting cash management on a timely basis for a portion of temporarily idle proceeds can obtain certain investment returns and secure more investment returns for the Company and its shareholders.

The Company will conduct corresponding accounting treatment in accordance with the “Accounting Standards for Business Enterprises No. 22—Financial Instrument Recognition and Measurement” and relevant provisions of the Company’s financial system; the specific treatment shall be based on the annual audit results.

V. Sponsor’s Verification Opinions

After verification, the sponsor believes that:

The matter of the Company’s use of temporarily idle proceeds for cash management has been deliberated and approved by the Board of Directors of Yatong Precision, and the necessary procedures have been fulfilled. The use of temporarily idle proceeds for cash management this time will be implemented on the premise of ensuring that it does not affect the construction of projects using the proceeds, the Company’s normal business operations, and the safety of funds. There is no circumstance of changing the use of proceeds in disguise, nor any circumstance that harms the interests of shareholders. This complies with relevant provisions such as the “Shanghai Stock Exchange Listing Rules,” the “Regulatory Rules for Listed Companies’ Use of Proceeds,” the “Shanghai Stock Exchange Listing Rules for Self-Regulatory Supervision Guidance No. 1—Standardized Operation,” and other relevant regulations. The sponsor has no objection to the Company’s matter of using temporarily idle proceeds for cash management this time.

VI. Expiration and Redemption of Wealth Management Products Purchased Using Proceeds Previously

On February 26, 2026, the Company entered into a contract for the purchase of corporate structured deposit products with the Yantai Laizhou Sub-branch of China Merchants Bank. The product has been redeemed recently. The principal of RMB 40.00 million was recovered, and a return of RMB 48.3 thousand was obtained. The specific details are as follows:

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Announcement is hereby given.

Board of Directors of Yantai Yatong Precision Machinery Co., Ltd.

April 1, 2026

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