/Blue Shield Optoelectronics: Special report of the board of directors on the storage and use of funds raised in the first half of 2026

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Blue Shield Optoelectronics: Special report of the board of directors on the storage and use of funds raised in the first half of 2026

Shenzhen Stock Exchange

2026/08/29

Securities code: 300862 Securities abbreviation: Blue Shield Optoelectronics Announcement number: 2026-056

Board of Directors of Anhui Landun Optoelectronics Co., Ltd.

Special report on the storage and use of funds raised in the first half of 2026

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and contains no false records, misleading statements or major omissions.

1. Basic situation of raised funds

(1) Actual amount of funds raised and time of fund arrival

According to the China Securities Regulatory Commission's "Approval of the Initial Public Offering of Stocks by Anhui Blue Shield Optoelectronics Co., Ltd." (CSRC Permit [2020] No. 1566), Anhui Blue Shield Optoelectronics Co., Ltd. (hereinafter referred to as the "Company" or "Blue Shield Optoelectronics") has publicly issued RMB ordinary shares (A shares) to the public through the lead underwriter Hualong Securities Co., Ltd. using a combination of offline price inquiry and allotment to inquiry targets and online fund subscription and issuance. 32.970 million shares, with an issue price of RMB 33.95 per share, and a total of RMB 1,119.3315 million raised. After deducting underwriting and recommendation fees of RMB 29.8866 million, the raised funds were RMB 1.0894449 million, which has been remitted to the company's raised funds supervision account by the lead underwriter Hualong Securities Co., Ltd. on August 11, 2020. After deducting 12.4935 million yuan of external expenses directly related to the issuance of equity securities such as online issuance fees, prospectus printing fees, reporting accountant fees, lawyer fees, evaluation fees, etc., the company's net raised funds this time was 1.0769514 million yuan. The above-mentioned receipt of funds raised has been verified by Rongcheng Accounting Firm (Special General Partnership), which issued a "Capital Verification Report" (Rongcheng Yanzi [2020] No. 230Z0151).

(2) Use and balance of raised funds

As of June 30, 2026, the company’s use and balance of raised funds are as follows: Unit: RMB 10,000

Project No. Amount Net raised funds A 107,695.14

Project investment B1 52,944.87 Cumulative amount incurred as of the beginning of the period Net interest income (including financial management income) B2 9,675.85 Permanent supplement of working capital B3 26,507.46

Project investment C1 673.20 Amount incurred in the current period Net interest income (including financial management income) C2 195.15 Permanent supplement of working capital C3 0

Project investment D1=B1+C1 53,618.07 Cumulative amount as of the end of the period Net interest income (including financial management income) D2=B2+C2 9,871.00

Permanent supplementary working capital D3=B3+C3 26,507.46 Balance of raised funds E=A-D1+D2-D3 37,440.61 Actual balance of raised funds F 37,453.81 Among them: balance of special account for depositing raised funds 3,453.81

Unexpired structured deposits 34,000.00 difference [Note] G=E-F -13.20 [Note] It is the unpaid external expenses directly related to the issuance of equity securities.

2. Storage and management of raised funds

(1) Management of raised funds

In order to standardize the management of raised funds, improve the efficiency of the use of raised funds, and protect the rights and interests of investors, the company has formulated the "Raised Funds Management System" in accordance with the provisions of the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Supervision Rules for Funds Raised by Listed Companies, the Shenzhen Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed Companies, and the Articles of Association. According to the requirements, the company implemented a special account for depositing the raised funds, established a special account for the raised funds in the bank, and together with the sponsor Hualong Securities Co., Ltd., signed the "Three-Party Supervision Agreement for the Special Account Deposit of Raised Funds" with Huishang Bank Tongling Beijing Road Branch, Shanghai Pudong Development Bank Co., Ltd. Tongling Branch, China Construction Bank Co., Ltd. Tongling Jinghu Branch, and China Everbright Bank Co., Ltd. Hefei Branch respectively on August 11, 2020, clarifying the rights and obligations of all parties. There are no major differences between the three-party supervision agreement and the Shenzhen Stock Exchange’s three-party supervision agreement template, and there are no problems with the performance of the three-party supervision agreement.

February 26, 2021 On the same day, the company held the 11th meeting of the fifth session of the Board of Directors and the 9th meeting of the fifth session of the Supervisory Board, and reviewed and approved the "Proposal on Changing the Implementation Subject and Implementation Location of Partially Raised Fund Investment Projects and Using the Raised Funds to Increase Capital in a Wholly-Owned Subsidiary", agreeing that the company will change the implementation entity and implementation location of the raised fund investment project "R&D Center and Monitoring Instrument Production Base Construction Project"; and use the raised funds to increase capital in the wholly-owned subsidiary Anhui Anguang Environmental Technology Co., Ltd. (hereinafter referred to as "Anguang Environment"), with Anguang Environment as the implementation entity of the post-change raised fund investment project. The company contributes capital in batches according to the actual capital needs of the raised investment projects to achieve the purpose of improving capital use efficiency and income. The company has set up a special account for raised funds. The company signed the "Four-Party Supervision Agreement for the Special Account for Raised Funds Deposit" and the "Supplementary Agreement 1 to the Four-Party Supervision Agreement for the Special Account for Raised Funds Deposit" with Anguang Environment, Hefei Branch of China Everbright Bank Co., Ltd., and the sponsor Hualong Securities Co., Ltd.

September 29, 2022 On the same day, the company held the 6th meeting of the 6th Board of Directors and the 5th meeting of the 6th Board of Supervisors, and reviewed and approved the "Proposal on Increasing the Implementation Subject of Partially Raised Fund Investment Projects and Using the Raised Funds to Increase the Capital of a Wholly-Owned Subsidiary", and agreed that the company would increase the implementation body of the raised fund investment project "New Factory Construction and High-end Analytical and Measuring Instrument Technical Transformation Project" and use the raised funds to increase capital in the wholly-owned subsidiary Anhui Guangda Electronic Technology Co., Ltd. (now renamed "Anhui Blue Shield Defense Technology Co., Ltd.", hereinafter referred to as "Guangda Electronics" or "Landun Defense"). The company has set up a special account for raised funds, and signed a "Four-Party Supervision Agreement for Raised Funds" with Guangda Electronics, Bank of China Co., Ltd. Tongling Branch, and sponsor Hualong Securities Co., Ltd.

The company held the 18th meeting of the 6th Board of Directors and the 14th meeting of the 6th Board of Supervisors on August 26, 2024, and held the 2024 second extraordinary shareholders' meeting on September 13, 2024. The company reviewed and approved the "Proposal on Adjusting the Investment Scale and Closing of Some Fund-raising Projects" and agreed to adjust the investment scale and close the "New Factory Construction and High-end Analytical and Measuring Instrument Technical Improvement Project". For details, please refer to the "Announcement on Adjusting the Investment Scale, Closing Projects and Using Surplus Raised Funds to Permanently Replenish Liquidity for Some Fund-raising Projects" (Announcement No.: 2024-066) and "2024 Announcement of Resolutions of the Second Extraordinary General Meeting of Shareholders of 2020 (Announcement No.: 2024-069). The remaining raised funds, related interest and cash management income from the special account for raised funds of Blue Shield Defense are transferred from the special account for raised funds of Blue Shield Defense to the special account for raised funds of Blue Shield Optoelectronics in the form of capital reduction. Blue Shield Defense has completed the cancellation procedures for the special account for raised funds. After the cancellation of the special account for raised funds, the "Four-Party Supervision Agreement for Raised Funds" signed between the company and Blue Shield Defense, Bank of China Co., Ltd. Tongling Branch, and sponsor Hualong Securities Co., Ltd. will be terminated accordingly.

The "Operation and Maintenance Service System Construction Project" invested by the company's raised funds has been completed and has reached the scheduled usable status. For details, please refer to the "Announcement on Adjusting the Investment Scale and Closing of Some Fund-raising Projects and Using the Surplus Raised Funds to Permanently Replenish Working Capital" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on August 27, 2024 (Announcement Number: 2024-066). The company has completed the cancellation procedures for the above-mentioned special account for raised funds. After the special account for raised funds is cancelled, the "Tripartite Supervision Agreement for the Special Account Storage of Raised Funds" signed by the company, Huishang Bank Tongling Beijing Road Branch and the sponsor Hualong Securities Co., Ltd. will be terminated accordingly.

(2) Deposit of raised funds

As of June 30, 2026, the company has 4 special accounts for raised funds. The storage status of raised funds is listed as follows:

Unit: RMB account opening bank Bank account number Balance of raised funds

Shanghai Pudong Development Bank Tongling Branch 11510078801100001146 7,262,662.59 China Construction Bank Tongling Jinghu Branch 34050166440800000552 13,620,644.53 57000188000024618 1,185.59 Everbright Bank Hefei Branch

57000188000041596 13,653,644.05Total 34,538,136.76

3. Actual use of funds raised this year

(1) Usage of funds

As of June 30, 2026, the company has actually invested a total of RMB 801,255,300 of raised funds in relevant projects. The investment status and benefits of each project are shown in Appendix 1: "Comparison Table of Usage of Raised Funds for the Half Year of 2026".

(2) Changes in implementation locations and implementation methods of fundraising projects

In the first half of 2026, the company did not change the implementation location or implementation method of the fundraising projects.

(3) Advance investment and replacement of fundraising projects

As of June 30, 2026, the company's investment projects have no advance investment or replacement.

(4) Usage of surplus raised funds

In view that the "Operation and Maintenance Service System Construction Project" has been completed and has reached the intended usable state, the company will use the remaining 691,500 yuan of raised funds after the completion of the above-mentioned investment projects to permanently replenish working capital for the company's daily production and operation activities.

In view that the "new factory construction and high-end analytical measuring instrument technical transformation project" has reached the scheduled usable state, the company decided to terminate the construction of the new factory, reduce the total investment in the above-mentioned raised investment projects from 122.0719 million yuan to 85.3968 million yuan, and close the raised investment projects. The company will continue to store and manage the aforementioned remaining raised funds and their interest in accordance with the management requirements of raised funds; among them, the remaining raised funds, related interest and cash management income from the special account for raised funds of Blue Shield Defense were transferred from the special account for raised funds of Blue Shield Defense to the special account of raised funds of Blue Shield Optoelectronics in the form of capital reduction.

(5) Usage of excess raised funds

As of June 30, 2026, 85.9514 million yuan of funds had been used for the new factory construction and high-end analytical measuring instrument technical transformation projects; the super-raised funds were used to permanently replenish working capital of 264.3831 million yuan.

(6) Cash management of idle raised funds and investment in related products

The company held the ninth meeting of the seventh session of the Board of Directors on March 2, 2026, and reviewed and approved the "Proposal on the Use of Temporarily Idle Raised Funds and Own Funds for Cash Management", and agreed that the company and its subsidiaries will use no more than 400 million yuan (including the original amount) of idle raised funds (including over-raised funds) and no more than 100 million yuan (including the original amount) of idle self-owned funds for cash management without affecting the normal progress of the raised fund investment plan, the safety of the raised funds, and ensuring the company's daily capital operation needs. The use period of the cash management quota shall not exceed 12 months (inclusive) from the date of review and approval by the board of directors. Within the above quota and period, the funds used for cash management can be used on a rolling basis.

As of June 30, 2026, the company and its subsidiaries used temporarily idle raised funds for cash management as follows:

Unit: RMB 10,000 in order Product Expected year

Trustee Product Name Amount Value Date Maturity Date

No. type income

Fed Securities Stocks Fed Securities [Chujin No. 1 Fixed Income 2025 July 2026 July

1 6,000 2.25% Co., Ltd. 390 Issues] Income Voucher Voucher Month 18th Month 15th

Fed Securities Stocks Fed Securities [Chujin No. 1 Fixed Income November 2025 October 2026

2 5,000 2.25% Co., Ltd. 432 Issues] Income Voucher Voucher Month 6th Month 26th

Fed Securities Stocks Fed Securities [Chujin No. 1 Fixed Income November 2025 August 2026

3 3,000 2.20% limited company No. 433] Income voucher Voucher Month 10th Month 11th

Fed Securities Stocks Fed Securities [Chujin No. 1 Fixed Income November 2025 November 2026

4 3,000 2.25% limited company No. 434] Income voucher Voucher Month 10th Month 2nd

Fed Securities Stocks Fed Securities [Chujin No. 1 Fixed Income December 2025 December 2026

5 4,000 2.25%

Co., Ltd. Issue 444] Income Voucher Voucher Month 29th Month 24th

Order Product Expected Year

Trustee Product Name Amount Value Date Maturity Date

No. type income

Fed Securities Stocks Fed Securities [Chujin No. 1 Fixed Income 2026 3 2027 3

6 1,000 2.15% Co., Ltd. 463 Issues] Income Voucher Voucher Month 27th Month 25th

Huaan Securities shares the road to success through wealth and wisdom Floating income 2026 4 2026 8 1.5%~3. 7 2,000

Co., Ltd. No. 43 floating income certificate Certificate Month 10th Month 18th 0%

Huaan Securities, the road to success with wealth and wisdom, floating income 2026 4 2026 8 1.5%~3. 8 3,000

Co., Ltd. No. 44 floating income certificate certificate month 28th month 25th 0%

Huaan Securities shares the road to success through wealth and wisdom Floating income 2026-4 2026-10 1.5%~3.9 3,000

Co., Ltd. No. 45 Floating Income Certificate Certificate Month 28 Month 28 0% Cathay Haitong Securities Cathay Haitong Securities Ruibo 1.45%~

Floating income 2026 4 2026 7

10 Co., Ltd. Series Jie Rui No. 26026 1,000 The certificate is not sealed on January 28th and 27th

Company income certificate top

Tianfu Securities has Hongfubao No. 85 Income Certificate Fixed Income May 2026 November 2026

11 3,000 1.85% limited liability company certificate voucher month 28th month 24th

Total 34,000.00 --

4. Change the use of funds for investment projects

(1) Changes in investment projects with raised funds

The company held the 15th meeting of the 6th Board of Directors and the 13th meeting of the 6th Board of Supervisors on April 19, 2024, and reviewed and approved the "Proposal on Changing Part of the Construction Content, Adjusting the Internal Investment Structure and Extension of Some Fund-raising Projects", and upon review and approval by the 2023 Annual General Meeting of Shareholders, it agreed to change part of the construction content of the "R&D Center and Monitoring Instrument Production Base Construction Project" and adjust the internal structure of the project. Investment structure: terminate the investment in the industrialized production line, invest 113,924,980 yuan of raised funds that were originally planned for the industrialized production line but have not yet been used (excluding interest income, the specific amount is subject to the balance of the project special account at the time of actual carryover) into the R&D center, assembly building and its supporting buildings (including underground garages); and extend the scheduled usable date to March 31, 2025.

The company held the 18th meeting of the 6th Board of Directors and the 14th meeting of the 6th Board of Supervisors on August 26, 2024, and reviewed and approved the "Proposal on Adjusting the Investment Scale and Closing Some Raised Investment Projects", and upon review and approval of the second extraordinary shareholders' meeting in 2024, it was agreed to reduce the investment scale of the "New Factory Construction and High-end Analytical and Measuring Instrument Technical Improvement Project" from 122.0719 million yuan to 85.3968 million yuan, and to close the raised investment projects. The company will continue to store and manage the aforementioned remaining raised funds and their interest in accordance with the management requirements of raised funds.

The company held the 20th meeting of the sixth board of directors and the 16th meeting of the sixth board of supervisors on December 12, 2024, and reviewed and approved the "Proposal on Terminating Investment Projects with Partial Raised Funds", and upon review and approval at the third extraordinary general meeting of shareholders in 2024, agreed to terminate the "Atmospheric Environment Comprehensive Three-dimensional Monitoring System and Data Service Construction Project". The company plans to continue to retain the remaining amount of raised funds in the special account for raised funds corresponding to the original project, and manage the raised funds in accordance with relevant management regulations. In the future, the company will continue to plan new investment projects with raised funds in an orderly manner, conduct project feasibility analysis prudently, effectively prevent investment risks and improve the efficiency of the use of raised funds. If the company subsequently makes other arrangements for the use of the above-mentioned remaining raised funds, it will fulfill the approval procedures and disclosure obligations in accordance with the law.

For details of the changes, see Appendix 2: "Changes in Investment Projects with Raised Funds".

(2) Explanation of situations where the benefits of investment projects with raised funds cannot be separately calculated

The funds raised from the "R&D Center and Monitoring Instrument Production Base Construction Project" will be used for the construction of the industrial park base. After the adjustment, the project will not directly produce products and generate economic benefits, but it can further shape the company's core technological advantages on the basis of enhancing the company's continuous R&D and innovation capabilities, and improve production efficiency through the integration of R&D and production, which is in line with the long-term interests of the company's development.

(3) Investment projects with raised funds have been transferred or replaced externally

As of June 30, 2026, the company's investment projects with raised funds have not been transferred or replaced externally.

5. Problems in the use and disclosure of raised funds

The company's disclosure of the use of raised funds is consistent with the actual use. There is no untimely, untrue, inaccurate or incomplete disclosure, and there are no violations in the storage, use, management and disclosure of raised funds.

Announcement is hereby made.

Board of Directors of Anhui Landun Optoelectronics Co., Ltd.

August 29, 2026 Schedule 1:

Comparison table on the use of raised funds in the first half of 2026

Unit: 10,000 yuan

Investment this year

Total funds raised 107,695.14 673.20

Total funds raised

The total amount of raised funds changed in use during the reporting period --

Total investment has been made

Cumulative total amount of raised funds changed in use 37,426.33 80,125.53

Total funds raised

The cumulative proportion of total raised funds that have been repurposed is 34.75%

Whether it has changed. As of the end of the period, the accumulated investment projects as of the end of the period have reached the pre-project feasibility. Commitment investment projects and over-raised funds. After adjustment, investment in this year has been achieved. Whether the investment in this year has been achieved.

The project (including some parts) is in a usable state according to the estimated investment amount (%) (3). Whether heavy investment has occurred? The total investment amount (1) The total investment amount (1) The expected benefit.

Change) (2) = (2)/(1) Status Date Big Change Commitment Investment Project

R&D center and monitoring instrument production March 2025

Yes 21,024.63 21,024.63 673.20 19,820.27 94.27 Not applicable Not applicable Yes Production base construction project 31 days

Comprehensive three-dimensional monitoring of atmospheric environment

System and data service construction project Yes 25,070.04 2,703.72 1,987.14 73.50 Not applicable Not applicable Not applicable This is the purpose

December 2024

Operation and maintenance service system construction project No 4,954.97 4,954.97 5,215.52 105.26 Not applicable Not applicable No

31st

Supplementary working capital items No 18,000.00 18,000.00 18,000.00 100.00 Not applicable Not applicable Not applicable No
The investment direction has not been determined yet No 22,366.32 Not applicable Not applicable Not applicable No 6. The remaining raised funds will be permanently replenished

69.15

working capital

Subtotal of committed investment projects 69,049.64 69,049.64 673.20 45,092.08 65.30 -- -- -- --Use of excess raised funds

New factory construction and high-end analysis December 2024

Yes 12,207.19 8,539.68 8,595.14 100.65 -280.76 No Yes Measuring instrument technical renovation project 31 days

Permanent supplement of working capital No 26,438.31 26,438.31 26,438.31 100.00 Not applicable Not applicable Not applicable No
The investment direction has not been specified yet No 3,667.51 Not applicable Not applicable Not applicable No

Subtotal investment of excess raised funds 38,645.50 38,645.50 35,033.45 90.65 -- -280.76 -- --

Total -- 107,695.14 107,695.14 673.20 80,125.53 74.40 -- -280.76 -- --

Delays of various projects

Affected by objective factors such as changes in market demand, the overall construction progress of the company's investment projects was lower than expected. Based on the current actual situation of the project, in order to reduce the investment risk of raised funds, ensure the safe and reasonable use of funds, ensure the construction quality of raised investment projects, and better safeguard the interests of all shareholders, the company decided after deliberation at the 11th meeting of the 6th Board of Directors and the 10th meeting of the 6th Board of Supervisors that the purpose of the project, the total investment amount and the implementation entity will not be disclosed. In the event of changes, the date for the "R&D center and monitoring instrument production base construction project", "atmospheric environment comprehensive three-dimensional monitoring system and data service construction project", "operation and maintenance service system construction project" and "new factory construction and high-end analytical measuring instrument technical transformation project" to reach the scheduled usable status will be extended to December 31, 2024.

R&D center and monitoring instrument production base construction project

The 15th meeting of the company's sixth board of directors and the 2023 annual general meeting of shareholders reviewed and approved the "Proposal on Changing Part of the Construction Content, Adjusting the Internal Investment Structure and Extension of Some Fund-raised Projects". After careful study, the company believes that the construction of industrialized production lines is no longer in line with changes in market demand and the company's development plan, and the feasibility of the project has undergone major changes. Considering that the future market of the product and project profitability may be significantly reduced, the company believes that the existing production lines have met the production requirements, and the company has decided to terminate industrial production that has not reached the planned progress or expectations.

It also agreed to change part of the construction content of the "R&D Center and Monitoring Instrument Production Base Construction Project" and adjust the internal investment structure of the project. Situations and reasons for gains based on changes in construction content

Based on the actual construction progress and payment progress, the company has extended the project to reach the scheduled usable status until March 31, 2025.

New factory construction and high-end analytical measuring instrument technical renovation project

The 18th meeting of the company's sixth board of directors and the second extraordinary general meeting of shareholders in 2024 reviewed and approved the "Proposal on Adjusting the Investment Scale and Closing Some Fund-raising Projects". Based on the performance of recent years and actual production needs, the company believes that if it continues to build new factories, the company will face factory The cost of housing expansion was too high and the project efficiency rate was reduced. Accordingly, on the premise of ensuring production capacity and product quality, the company decided to terminate the construction of the new factory after careful consideration, and agreed to adjust the investment scale of the "new factory construction and high-end analytical measuring instrument technical transformation project" and close the project.

Atmospheric environment comprehensive three-dimensional monitoring system and data service construction project

The 20th meeting of the company's sixth board of directors and the third extraordinary general meeting of shareholders in 2024 reviewed and approved the "Proposal on Terminating Investment Projects with Partial Raised Funds". The main implementation method of the "Atmospheric Environment Comprehensive Three-dimensional Monitoring System and Data Service Construction Project" is to install a comprehensive atmospheric environment three-dimensional monitoring system platform at the implementation site of the winning project, thereby providing customers with differentiated data services. The actual income of the project and the investment return period depend to a large extent on the customer orders the company obtains in the field of stereoscopic monitoring. Since the implementation of the project, affected by factors such as market demand and intensified competition, the company's business in the field of stereoscopic monitoring has experienced a development process of decline and slight increase. There has been no breakthrough progress since 2024, and the project investment benefits face greater uncertainty. The company's existing instruments, equipment and system platforms can meet the needs of three-dimensional monitoring business in recent years. Based on the above factors, according to the company's business development plan and after careful consideration by the company, in order to improve the efficiency of fund use, the company decided to terminate the project.

Benefits of each project

"Atmospheric Environment Comprehensive Stereo Monitoring System and Data Service Construction Project" Since the company's business in the field of stereo monitoring has not made breakthrough progress, the project investment benefits are facing greater uncertainty. The company's existing instruments, equipment and system platforms can meet the needs of the stereo monitoring business in recent years, and the company has decided to terminate the project.

The construction of the "Operation and Maintenance Service System Construction Project" mainly includes three parts: (1) Construction of supporting facilities of the Operation and Maintenance Service Center; (2) Construction of CMA laboratory; (3) Upgrading of the operation and maintenance platform information system. The above construction content is to upgrade the existing operation and maintenance platform and improve the operation and maintenance service system to improve the operation and maintenance business efficiency and the company's overall market competitiveness.

The main reason why the actual benefits of the "New Factory Construction and High-end Analytical and Measuring Instruments Technical Transformation Project" were lower than expected was that the overall market demand was lower than expected, industry competition intensified, and the number of business orders corresponding to the raised investment projects was small, resulting in project benefits that were lower than expected.

The relevant funds of "Supplementary Working Capital Project" and "Permanent Supplementary Working Capital" are used for the company's daily production and operation activities, and the benefits generated cannot be calculated separately. 1. R&D center and monitoring instrument production base construction project

In April 2024, when the company reviewed the use of funds for each raised investment project, it judged that the feasibility of the construction of the "industrialized production line" under the "R&D center and monitoring instrument production base construction project" had undergone major changes, and re-demonstrated the feasibility and expected benefits of the project as follows:

(1) Necessity and feasibility of project implementation

The environmental monitoring industry is a policy-driven industry. After 2020, the financial investment of product-oriented customer groups in the field of environmental monitoring has significantly decreased. In addition, the market demand in the environmental protection field in 2023 will tend to be energy-saving and low-carbon, and the downstream demand for "industrialized production line" related products will change. Foreign companies such as Ecotech and ThermoFisher still have an important influence in the global high-end monitoring equipment market. Domestic leading companies such as Concentrator Technology and Snow Dragon are gradually penetrating into the high-end monitoring equipment market. Market competition is becoming increasingly fierce, and project feasibility has undergone major changes. Combined with the company's recent market expansion of "high-performance Fourier transform infrared spectroscopic analysis instruments" and "water quality automatic monitoring system equipment" and the single-volume analysis of business ordering in 2023, the market space for "industrial production line" related products is limited. In addition, the production technology of the aforementioned monitoring products itself is difficult, the structure is complex, and there are high requirements for the variety of production equipment and the technical level of processing personnel. If implemented according to the original plan, the construction period will continue to be extended, the cost will gradually increase, and the expected benefits will not be achieved.

(2) Estimated income of the project

The production capacity of the flexible production lines for environmental monitoring products and water quality monitoring products established by the company in its early stages has already met the company's shipment needs. If the company continues to invest in the construction of "industrial production lines", the production capacity of related products will not be fully utilized, and the project will not be able to achieve expected economic benefits.

(3) Re-argument the conclusion

After re-examination, the company believed that the necessity and feasibility of building an "industrialized production line" were insufficient and the expected benefits could not be achieved, so it decided to terminate its investment in the "industrialized production line".

Atmospheric environment comprehensive three-dimensional monitoring system and data service construction project

In December 2024, the company's management judged the feasibility of the "Atmospheric Environment Comprehensive Stereo Monitoring System and Data Service Construction Project" to have undergone major changes based on the order volume of the company's three-dimensional monitoring project in 2024, and re-demonstrated the feasibility and expected benefits of the project as follows:

(1) Necessity and feasibility of project implementation

The State Council issued the "Implementation Opinions on Accelerating the Establishment of a Modern Ecological Environment Monitoring System" in March 2024, proposing to improve the integrated monitoring network of sky, land and sea. National policies continue to favor the field of environmental monitoring. If this project is successfully implemented, it will further consolidate the company's industry position in the environmental monitoring operation and maintenance market and enhance the company's overall competitiveness in the environmental monitoring field. In the early days, through industry-university-research cooperation with scientific research institutes such as the Chinese Academy of Sciences, the company already had advanced three-dimensional monitoring technology and accumulated certain technology in the field of lidar detection. The company has carried out three-dimensional monitoring business in many prefecture-level cities across the country, accumulated a good customer base, and has a solid foundation for the implementation of this project.

However, due to factors such as market demand and intensified competition since the implementation of the project, the company's business in the field of stereoscopic monitoring has experienced a development process of decline and slight increase. There has been no breakthrough progress since 2024, and the project investment benefits face greater uncertainty, making the implementation of this project less necessary.

(2) Estimated income of the project

The actual income of the project depends to a large extent on the customer orders the company has obtained in the field of stereoscopic monitoring. The company's existing instruments, equipment and system platforms can meet the needs of the stereoscopic monitoring business in recent years. The termination of the project has resulted in the inability to achieve the originally expected economic benefits.

(3) Re-argument the conclusion

After re-examination, the company combined the changes in the industry market environment, the company's business development plan and the actual situation of the project, and after careful consideration by the company, in order to improve the efficiency of fund use, decided to terminate the project.

New factory construction and high-end analytical measuring instrument technical renovation project

In the process of implementing the "New Factory Construction and High-end Analytical and Measuring Instrument Technical Transformation Project", the company always adheres to the principle of cost reduction and efficiency improvement, and proactively controls construction costs while ensuring production capacity and product quality. The company is actively looking for construction sites with appropriate investment scale. In the first quarter of 2023, the company planned to transfer a certain construction site and build a precision manufacturing industrial park. However, due to the company's overall profit level in 2022 and the first quarter of 2023 being less than expected, it eventually gave up the aforementioned investment opportunity.

After the renovation of the No. 2 factory building was completed, the company re-planned the production layout according to the production site, reduced the area used for non-production facilities, improved the production process, and cooperated with the newly purchased technical equipment to improve production efficiency and reach an annual production capacity of 550 instruments and equipment.

In August 2024, based on recent performance and actual production needs, the company believed that if it continued to build new factories, the company would face the unfavorable situation of excessively high factory expansion costs and reduced project efficiency. After careful consideration, the company decided to terminate the construction of the new factory.

Amount, use and use of over-raised funds The total amount of over-raised funds of the company is 386.455 million yuan. As of June 30, 2026, 350.3345 million yuan of over-raised funds have been used; of which, 85.9514 million yuan of funds have been used for the construction of new factory areas and the progress of high-end analysis and use of measuring instrument technical transformation projects, and 264.3831 million yuan of permanent supplementary working capital has been used.

The company raised funds to invest in the "R&D Center and Monitoring Instrument Production Base Construction Project". It was originally planned that the company would be the main implementation entity, and the implementation location would be the Electronic Industrial Zone on Shicheng Road, Tongling City. Implementation of investment projects using raised funds

The total planned investment of the project is 210.2463 million yuan, and the planned construction period is 24 months. The project was originally planned to be constructed in Tongling City, the company's headquarters. Due to the geographical factors of Tongling City, it is not conducive to the change of location.

Recruit high-end R&D talents. In order to attract more high-end talents to join the company and enhance the company's R&D and innovation capabilities, the company plans to change the implementation location to Tianshi Road, Shushan Economic Development Zone, Hefei City, and change the implementation entity to Anguang Environment, the company's wholly-owned subsidiary registered in Hefei. The company held the 11th meeting of the fifth board of directors and the 9th meeting of the fifth board of supervisors on February 26, 2021, and reviewed and approved the "Proposal on Changing the Implementation Subject and Implementation Location of Partially Raised Fund Investment Projects and Using Raised Funds to Increase Capital in a Wholly-Owned Subsidiary", and agreed that the company would change the implementation subject and implementation location of the raised fund investment project "R&D Center and Monitoring Instrument Production Base Construction Project"; the total project investment after this change remains unchanged.

According to the company's strategic planning and business needs, combined with the current company's operating conditions and future development needs, in order to better integrate the company's existing advantageous resources, optimize resource allocation, improve the company's internal operation and management efficiency, and speed up the implementation progress of the raised funds investment project, the company added Guangda Electronics as the implementation entity of the "new factory construction and high-end analytical measuring instrument technical transformation project". After adding the implementation entities this time, Guangda Electronics is the implementation entity for the investment in the new plant construction project in the "New Factory Construction and High-end Analytical and Measuring Instruments Technical Transformation Project", and Blue Shield Optoelectronics is the implementation entity for the technical renovation and decoration project of Building 2, the purchase of R&D and production equipment, logistics road repairs and sporadic renovation projects in the "New Factory Construction and High-end Analytical and Measuring Instruments Technical Transformation Project". The company held the sixth meeting of the sixth board of directors and the fifth meeting of the sixth board of supervisors on September 29, 2022. The company reviewed and approved the implementation of the investment project with raised funds and passed the "Proposal on Increasing the Implementation Subject of Part of the Investment Project with Raised Funds and Using the Raised Funds to Increase Capital in a Wholly-Owned Subsidiary."

Taking into account the macroeconomic situation, market capacity constraints and actual production needs, while the total investment amount of the project and the amount of raised funds to be used remain unchanged, the company has terminated its investment in the industrial production line of the "R&D Center and Monitoring Instrument Production Base Construction Project" and will use the originally planned The unused funds raised from the industrial production line were invested in the R&D center, assembly building and supporting buildings (including underground garages). The total construction area of the project increased from 38,268㎡ to 74,782.55㎡, with a total increase of 36,514.55㎡. The company held the 15th meeting of the sixth board of directors and the 2023 Annual General Meeting of Shareholders, and reviewed and approved the "Proposal on Changing Part of the Construction Content, Adjusting the Internal Investment Structure and Extension of Some Fund-raising Projects", and agreed to change part of the construction content of the "R&D Center and Monitoring Instrument Production Base Construction Project" and adjust the internal investment structure of the project.

Raised funds for early stage investment projects

Not applicable

Investment and replacement status

Use idle raised funds to temporarily supplement

Not applicable

Liquidity status

The company held the ninth meeting of the seventh board of directors on March 2, 2026, and reviewed and approved the "Proposal on the Use of Temporarily Idle Raised Funds and Own Funds for Cash Management", and agreed that the company and its subsidiaries will use idle raised funds for cash management without affecting the normal progress of the investment plan of raised funds, the safety of raised funds, and ensuring the company's daily capital operating needs.

Use no more than 400 million yuan (including the original amount) of idle raised funds (including super-raised funds) and no more than 100 million yuan (including the original amount) of idle self-owned funds for cash management. Cash management balance management

The use period of the degree shall not exceed 12 months (inclusive) from the date of review and approval by the board of directors. Within the above quota and period, the funds used for cash management can be used on a rolling basis. As of June 30, 2026, the company and its subsidiaries have used 340 million yuan of idle raised funds to purchase financial products.

Operation and maintenance service system construction project

During the implementation of the fundraising project, the company, without affecting the smooth implementation and completion of the fundraising project, based on the principle of improving the efficiency of the use of raised funds, will use the idle funds raised during the implementation of the project to

Raise funds to purchase cash management products and generate cash management income, thereby generating corresponding savings on raised funds. The "Operation and Maintenance Service System Construction Project" has been completed and has reached the scheduled savings amount and reasons.

Usage status: The company will use the remaining 691,500 yuan of raised funds after the completion of the above-mentioned investment projects to permanently supplement working capital for the company's daily production and operation activities.

New factory construction and high-end analytical measuring instrument technical renovation project

The "new factory construction and high-end analytical measuring instrument technical transformation project" has reached the scheduled state of use. After careful and repeated research, the company terminated the construction of the new factory and reduced the investment amount of the project from 122.0719 million yuan to 85.3968 million yuan. In addition, during the implementation of the investment project, the company, without affecting the smooth implementation of the investment project, based on the principle of improving the efficiency of the use of raised funds, uses the idle raised funds of the project to purchase cash management products to generate cash management income, thereby generating corresponding savings of raised funds.

The company will continue to deposit and manage the aforementioned remaining raised funds and their interest in accordance with the "Supervisory Rules for Raised Funds of Listed Companies" and other raised fund management regulations. Use of unused raised funds

The surplus and remaining unused raised funds are stored in the special raised funds account opened by the company and will be used for subsequent fund payment of the raised investment projects.

journey and destination

Use and disclosure of raised funds

None

problems or other situations

Schedule 2:

Changes in the status of investment projects with raised funds

Unit: RMB 10,000 The project after the change was realized during the year. Realized as of the end of the period. The investment project as of the end of the period reached the forecast. The original commitment corresponding to the changed project was realized during the year. Did it meet the forecast?

The project after the change is planned to raise actual investment funds. Actual cumulative investment progress (%) (3) Determine the usability status and feasibility of the project to determine whether the project benefits are expected to be achieved.

Total funds (1) Amount Amount (2) = (2)/(1) Date of significant changes R&D center and supervision R&D center and supervision

March 2025

Measuring instrument production base Measuring instrument production base 21,024.63 673.20 19,820.27 94.27 Not applicable Not applicable No

31st

land construction project land construction project

Comprehensive atmospheric environment Comprehensive atmospheric environment

Stereoscopic monitoring system Stereoscopic monitoring system

2,703.72 1,987.14 73.50 Not applicable Not applicable Not applicable No data service construction and data service construction

Set up project Set up project

New factory construction and new factory construction and

December 2024

High-end analytical measurement High-end analytical measurement 8,539.68 8,595.14 100.65 -280.76 No No

31st

Instrument technical renovation project Instrument technical renovation project

Total -- 32,268.03 673.20 30,402.55 -- -- -280.76 -- --

1. Reasons for project changes

R&D center and monitoring instrument production base construction project

(1) Reasons for terminating the construction of industrial production lines

The environmental monitoring industry is a policy-driven industry, and its customer groups are mainly located in national environmental protection authorities, environmental monitoring companies and scientific research institutions. Based on the favorable policies released one after another in the field of environmental monitoring during the "Thirteenth Five-Year Plan" period, the market in the field of environmental monitoring has grown rapidly. An explanation of the reasons for the change in the company's structure, decision-making procedures and information disclosure.

Combining Xianfa's technological advantages and market accumulation, it plans to equip production lines after the construction of the assembly building is completed, and expand the production capacity of "high-performance Fourier transform infrared spectroscopic analysis instruments" and "water quality automatic monitoring system equipment" to seize market development opportunities.

However, in recent years, local environmental protection authorities have continued to tighten their investment in the field of environmental monitoring, and the market environment and customer needs have undergone major changes. Based on the company's recent market expansion and business order analysis of "high-performance Fourier transform infrared spectroscopic analysis instruments" and "water quality automatic monitoring system equipment", the product market space is limited. In addition, the production technology of the aforementioned monitoring products itself is difficult, the structure is complex, and there are high requirements for the variety of production equipment and the technical level of processing personnel. If implemented according to the original plan, the construction period will continue to be extended, the cost will gradually increase, and the expected benefits will not be achieved. After careful study, the company believes that the construction of the industrialized production line is no longer in line with changes in market demand and the company's development plan, and the feasibility of the project has undergone significant changes.

The company has established flexible production lines for environmental monitoring products and water quality monitoring products in the early stage. It plans to continue to use outsourcing processing of non-critical links and improve the existing quality monitoring system and the work efficiency of production personnel to complete the production of monitoring products. Combined with the technology upgrades and cost investment of existing production lines over the years, the company's own funds can meet the capital needs for subsequent technology iterations of the production lines. Considering that the future market of the product and project profitability may be significantly reduced, the company believes that the existing production line has met the production requirements, and the company decided to terminate investment in the industrial production line.

(2) Reasons for increasing investment in industrial park bases

The company proposed the construction of this fundraising project in 2018, mainly based on the decision made based on the market environment and development plan at that time. In recent years, the company's business development has slowed down due to intensified competition in the industry. In order to actively deal with business development bottlenecks, the company plans to increase investment in technology and R&D products, develop new products for atmosphere, water quality, digital and transportation, and enrich product categories to respond to changing market demands. The company's operating residence is located in Tongling. In order to enhance the company's overall image to obtain more business opportunities, attract more high-end talents to improve the company's comprehensive R&D capabilities, and integrate R&D and production to improve production efficiency, the company plans to build the industrial park base in Hefei into the company's second development center. Therefore, the construction area, supporting facilities and other construction contents of the production site are adjusted, thereby increasing the corresponding construction material costs, survey and design fees, construction costs, ventilation and air-conditioning projects, supervision fees and other engineering construction costs and office facilities costs.

Based on the above changes and the actual construction progress and payment progress, the company has postponed the project to reach the scheduled usable state until March 31, 2025. 2. Atmospheric environment comprehensive three-dimensional monitoring system and data service construction project

The main implementation method of the "Atmospheric Environment Comprehensive Three-dimensional Monitoring System and Data Service Construction Project" is to install an atmospheric environment comprehensive three-dimensional monitoring system platform at the site where the winning project is implemented, so as to provide customers with differentiated data services. The actual income of the project and the investment return period depend to a large extent on the customer orders the company obtains in the field of stereoscopic monitoring. Since the implementation of the project, affected by factors such as market demand and intensified competition, the company's business in the field of stereoscopic monitoring has experienced a development process of decline and slight increase. There has been no breakthrough progress since 2024, and the project investment benefits face greater uncertainty. The company's existing instruments, equipment and system platforms can meet the needs of three-dimensional monitoring business in recent years. Based on the above factors, according to the company's business development plan and after careful consideration, the company decided to terminate the project in order to improve the efficiency of fund use.

New factory construction and high-end analytical measuring instrument technical renovation project

The company is actively looking for construction sites with appropriate investment scale. In the first quarter of 2023, the company planned to transfer a certain construction site and build a precision manufacturing industrial park. However, due to the company's overall profit level in 2022 and the first quarter of 2023 being less than expected, it eventually gave up the aforementioned investment opportunity.

In the process of implementing the "New Factory Construction and High-end Analytical and Measuring Instrument Technical Transformation Project", the company always adheres to the principle of cost reduction and efficiency improvement, and proactively controls construction costs while ensuring production capacity and product quality. After the renovation and renovation of the 2# building factory was completed, the company re-planned the production layout according to the production site, reduced the use area of non-production facilities, improved the production process, and improved the production efficiency with the newly purchased technical equipment. Based on the performance and actual production demand in recent years, the company believes that if it continues to build new factories, it will face the unfavorable situation of excessively high factory expansion costs and reduced project efficiency. After careful consideration, the company decided to terminate the construction of the new factory.

2. Decision-making process

R&D center and monitoring instrument production base construction project

The 15th meeting of the company's sixth board of directors and the 2023 annual general meeting of shareholders reviewed and approved the "Proposal on Changing Part of the Construction Content, Adjusting the Internal Investment Structure and Extension of Some Fund-raised Projects". After careful study, the company decided to terminate its investment in the industrialized production line, agreed to change part of the construction content of the "R&D Center and Monitoring Instrument Production Base Construction Project", adjust the internal investment structure of the project, and extend the project until March 31, 2025, when it reaches the scheduled usable state.

Atmospheric environment comprehensive three-dimensional monitoring system and data service construction project

The 20th meeting of the company's sixth board of directors and the third extraordinary general meeting of shareholders in 2024 reviewed and approved the "Proposal on Terminating Investment Projects with Partial Raised Funds". According to the company's business development plan and after careful consideration by the company, in order to improve the efficiency of fund use, the company decided to terminate the project. 3. New factory construction and high-end analytical measuring instrument technical renovation project

The 18th meeting of the company's sixth board of directors and the second extraordinary general meeting of shareholders in 2024 reviewed and approved the "Proposal on Adjusting the Investment Scale and Closing Some Fund-raised Projects". On the premise of ensuring production capacity and product quality, the company decided to terminate the construction of the new factory after careful consideration, and agreed to reduce the investment scale of the "New Factory Construction and High-end Analytical and Measuring Instrument Technical Improvement Project" from 122.0719 million yuan to 85.3968 million yuan and complete the project.

3. Information disclosure

In strict accordance with the requirements of relevant laws and regulations, the company disclosed the "Announcement on Changing Part of the Construction Content, Adjusting the Internal Investment Structure and Extension of Some Fund-raising Projects" on April 22, 2024 on the cninfo.com (Announcement No.: 2024-039); Announcement on Adjusting the Investment Scale, Closing Projects and Permanently Replenishing Working Capital with the Surplus Raised Funds in Some Raised Investment Projects" (Announcement Number: 2024-066); "Announcement on Terminating Investment Projects with Partial Raised Funds" (Announcement Number: 2024-094) disclosed on cninfo.com on December 13, 2024.

For the circumstances and reasons for failure to achieve the planned progress or expected profits, please refer to the "Situations and reasons for not meeting the planned progress or estimated profits" under the "Comparison of Usage of Raised Funds for the Half Year of 2026" in Appendix 1. Description of significant changes in project feasibility after change Not applicable