Xinqi Micro装 Plans to Utilize 450 Million Yuan in Idle Funds for Cash Management to Enhance Capital Efficiency

Hefei Xinqi Microelectronics Equipment Co., Ltd. (Stock Code: 688630, Stock Abbreviation: Xinqi Micro Equipment) held the fourth meeting of the third Board of Directors on March 13, 2026, during which it approved the proposal on “Using Temporarily Idle Raised Funds and Own Funds for Cash Management.” The company plans to use up to 450 million yuan of idle funds for cash management, ensuring that this does not affect the safety of raised funds, the progress of investment projects, or normal business operations. The goal is to improve capital utilization efficiency and generate more returns for the company and shareholders. This matter is still subject to approval by the shareholders’ meeting.

The announcement states that Xinqi Micro Equipment intends to use no more than 250 million yuan (including this amount) of temporarily idle raised funds and no more than 200 million yuan (including this amount) of temporarily idle own funds to purchase high-security, highly liquid investment products with capital preservation agreements, including but not limited to negotiated deposits, notice deposits, fixed deposits, large-denomination certificates of deposit, and income vouchers. Within the above limits, funds can be used on a rolling basis, with a usage period not exceeding 12 months from the date of approval by the shareholders’ meeting.

Basic Information on Raised Funds and Usage Progress

Xinqi Micro Equipment completed a targeted issuance of A-shares to specific investors in July 2023, raising a net amount of 789,362,921.17 yuan. As of December 31, 2025, the total investment in the company’s raised funds projects amounted to 539,444,803.09 yuan. The specific usage is as follows:

Due to the construction cycle of the raised projects, there are temporary idle periods of raised funds based on project progress. The company states that, without affecting the construction of investment projects, normal production and operation, or the safety of funds, it will reasonably utilize idle raised funds for cash management.

Specific Arrangements for Cash Management

Purpose of Investment

To improve the efficiency of using raised funds and own funds, and to reasonably utilize some temporarily idle raised funds and own funds, the company plans to increase returns without affecting the safety of raised funds, the progress of investment projects, or changing the original purpose of the raised funds, and without impacting normal business operations.

Types of Investment Products

The company will invest in high-security, highly liquid investment products with a term not exceeding twelve months and capital preservation agreements. These cash management products will not be used as collateral or for securities investment purposes.

Investment Limits and Duration

• Temporarily idle raised funds: up to 250 million yuan (including this amount)
• Temporarily idle own funds: up to 200 million yuan (including this amount)
• Duration: up to 12 months from the date of approval by the shareholders’ meeting, with funds allowed to be rolled over.

Implementation Method

The company’s board of directors authorizes management to make cash management investment decisions within the authorized limits and duration, and to sign relevant contractual documents. The company’s financial center will be responsible for organizing and implementing specific matters.

Income Distribution

The income generated from cash management of temporarily idle raised funds will be prioritized to supplement the investment shortfall of the raised projects and to meet the company’s daily operating cash needs.

Impact on the Company and Risk Control

Xinqi Micro Equipment states that this use of temporarily idle raised funds and own funds for cash management complies with national laws and regulations, ensures no impact on the progress of the company’s raised fund investment projects, and effectively controls investment risks. It will not affect the company’s daily operations or the normal development of raised fund projects, nor will it harm the interests of the company and shareholders. Through moderate and timely cash management, the company aims to improve capital efficiency and increase returns on cash assets.

To control risks, the company will strictly select financial institutions with good reputation, large scale, strong operational efficiency, and robust capital operation capabilities to issue products. It will establish ledger management and maintain proper accounting for fund usage. Independent directors have the right to supervise and inspect fund usage, and may hire professional agencies for audits if necessary.

Sponsor’s Opinion

The company’s sponsor, Guotai Haitong Securities Co., Ltd., has issued a clear opinion of approval, stating that the company’s use of some idle raised funds for cash management has been approved by the board of directors and is subject to shareholder approval, fulfilling the relevant legal procedures at this stage. Investing in high-security, liquid financial products can improve capital utilization, does not involve covert changes to the use of raised funds, and does not affect the normal progress of the raised fund investment plan, complying with relevant regulations and the company’s raised fund management system.

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