[Temporary Announcement] Huawei Design: Special report on the storage, management and actual use of funds raised in the first half of 2026
Securities code: 920427 Securities abbreviation: Huawei Design Announcement number: 2026-060
Huawei Design Group Co., Ltd.
Special report on the storage, management and actual use of raised funds in the first half of 2026
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability for the authenticity, accuracy and completeness of the contents.
1. Basic situation of raised funds
(1) Actual amount of funds raised and time of fund arrival
Approved by the China Securities Regulatory Commission's "Reply on Approving the Public Issuance of Stocks by Huawei Design Group Co., Ltd. to Unspecified Qualified Investors" (CSRC License [2020] No. 3698), the company publicly issued 20,619,000 RMB ordinary shares (A shares) to the public in January 2021, with an issue price of 9.16 yuan per share, and the total amount raised was RMB 188,870,040.00. Yuan (before the over-allotment option is exercised), after deducting underwriting and sponsorship fees of RMB 14,352,215.09 (excluding tax), the balance is RMB 174,517,824.91. In addition, after deducting intermediary fees and other issuance expenses of RMB 3,020,929.83, the actual net amount of funds raised is RMB 171,496,895.08 Yuan (before the over-allotment option is exercised).
The funds raised will arrive on January 25, 2021. The receipt of the funds raised has been verified by Baker Tilly International Accounting Firm (Special General Partnership), and the "Huawei Design Group Co., Ltd. Capital Verification Report" (Tiangong Zi [2021] No. 2780) was issued on January 26, 2021.
(2) Amount used and ending balance during the reporting period
As of June 30, 2026, the company has used a total of RMB 113,977,036.56 of raised funds, of which: RMB 108,873,462.50 has been invested in raised funds projects in previous years (including permanent supplementary flow of RMB 62,365,800.00); during this reporting period (January to June 2026) month, the same below) has invested 5,103,574.06 yuan in raised capital projects, all of which have been invested in raised capital projects. The balance of the special account for raised funds is RMB 69,680,013.08. For details on the use of raised funds, please refer to the "Comparison of the Use of Raised Funds".
(3) Storage status of raised funds in special account
As of June 30, 2026, the deposit balance of the special account for raising funds is as follows (unit: RMB):
Deposit bank Bank account number Deposit method Balance
China Guangfa Bank Co., Ltd. Current deposit 3,534,710.76 9550880224418300132
Nanchang High-tech Branch Time deposit 38,000,000.00 Bank of Beijing Co., Ltd. Current deposit 1,145,302.32 20000046671300038884190
Nanchang Xihu Branch Time deposit 27,000,000.00 Total 69,680,013.08 Note: In order to improve the efficiency of the use of raised funds, the company deposits part of the temporarily idle raised funds into time deposit accounts:
Guangfa Bank Co., Ltd. Nanchang High-tech Branch, account number 9550880224418300222; as of June 30, 2026, the balance is 38 million yuan, of which 19 million yuan has a deposit term of six months, the maturity date is July 27, 2026, and the interest rate is 0.95%; 1,00 The deposit term of 0,000,000 yuan is six months, with a maturity date of October 27, 2026, and the interest rate is 1.20%; the deposit term of 6,000,000 yuan is three months, with a maturity date of August 27, 2026, and the interest rate is 1.00%; the deposit term of 3,000,000 yuan is three months, with a maturity date of September 12, 2026, and the interest rate is 1.00%.
Bank of Beijing Co., Ltd. Nanchang Xihu Branch: Account number 20000046671300040162308; as of June 30, 2026, the balance was 27 million yuan, of which The deposit term of RMB 25 million has a term of one year, with a maturity date of December 9, 2026, and the interest rate is 1.30%; the deposit term of RMB 2 million has a term of one year, with a maturity date of May 12, 2027, with an interest rate of 1.20%.
2. Management of raised funds
(1) Management system of raised funds
The company has formulated and revised the "Huawei Design Group Co., Ltd. Raised Funds Management System" (hereinafter referred to as the "Management System") in accordance with the requirements of the "Company Law of the People's Republic of China", the Securities Law of the People's Republic of China, the "Supervisory Rules for Funds Raised by Listed Companies" and the "Beijing Stock Exchange Stock Listing Rules", "Beijing Stock Exchange Guidelines for Continuous Supervision of Listed Companies No. 9 - Raised Funds Management" and other relevant regulations. This management system was reviewed and approved at the 14th meeting of the company's second board of directors and the fourth extraordinary shareholders' meeting in 2020; the first amendment was reviewed and approved at the 11th meeting of the company's third board of directors and the first extraordinary shareholders' meeting in 2022; the second amendment was reviewed and approved at the 25th meeting of the company's third board of directors and the second extraordinary shareholders' meeting in 2023; the third amendment was reviewed and approved at the 14th meeting of the company's fourth board of directors and the second extraordinary shareholders' meeting in 2025.
In accordance with the requirements of the "Management System", the Company's Board of Directors approved the opening of Guangfa Bank Co., Ltd. Nanchang High-tech Branch (hereinafter referred to as "Guangfa Bank Nanchang High-tech Branch") 9550880224418300132 and Bank of Beijing Co., Ltd. Nanchang Xihu Branch (hereinafter referred to as "Bank of Beijing Nanchang Xihu Branch") 20000046671300038884190 The special account is only used for the storage and use of funds raised by the company and is not used for other purposes. All expenditures for investment projects with raised funds of the company shall be reviewed by the financial department within the scope of the fund use plan or the company's budget, and will be implemented by the accounting department after the financial director and general manager sign and approve. When an investment project with raised funds exceeds the planned investment, it shall be reported to the general manager, chairman or the board of directors for approval according to different limits. The general manager is responsible for organizing and implementing the investment projects with raised funds. The use of raised funds is subject to daily supervision by the company's audit department. The company's financial department regularly inspects and verifies the use of raised funds, and reports the inspection status to the board of directors, with a copy to the general manager.
(2) Three-party supervision agreement on raised funds
In accordance with the requirements of relevant regulatory regulations, the company and the sponsor Northeast Securities Co., Ltd. have signed the "Tripartite Supervision Agreement on Raised Funds" with Guangfa Bank Nanchang High-tech Branch and Bank of Beijing Nanchang Xihu Branch respectively on January 21, 2021. There are no major differences between the tripartite supervision agreement and the sample tripartite supervision agreement of Northeast Securities Co., Ltd., and the tripartite supervision agreement has been effectively implemented.
3. Actual use of funds raised during the reporting period
(1) Situation of fundraising projects
For details on the investment projects with raised funds during the reporting period, please see the attachment "Comparison Table on Usage of Raised Funds".
There is no major change in the feasibility of the investment project
(2) Replacement of raised funds
On January 15, 2026, the 19th meeting of the company's fourth board of directors reviewed and approved the "Proposal on Using Own Funds to Pay for Project Personnel Fees and Replacement with Raised Funds in Equal Balance." It is agreed that during the implementation period of the investment project with raised funds, the company will use its own funds to pay the personnel expenses of the raised investment project according to the actual situation, and replace it with the raised funds in equal amounts. The total replacement amount incurred during the reporting period was RMB 82,000, which was all related personnel expenses such as social insurance, housing provident fund and taxes incurred in the investment project.
(3) Temporary replenishment of working capital with idle raised funds
None
(4) Cash management of idle raised funds
During the reporting period, the company’s use of temporarily idle raised funds for cash management is as follows:
Entrusted agent Entrusted financial management Entrusted agent Entrusted agent Estimated annualized entrusting party Product name Income category
Property Product Amount (10,000 Financial Start Financial End Yield Name Type
Type Yuan) Date Date (%) Bank of Beijing Bank Management Six Months 300 2025 July 2026 Capital Guaranteed 1.20% Bank Nanchang Financial Products Time Deposit Month 28 January 28
West Lake branch payment date
OK
Bank of Beijing Banking Management One-year term 2,500 2025 2026 Capital guaranteed 1.30% Bank Nanchang Financial Products Time Deposit December 9 December 9
West Lake branch payment day day
OK
Guangfa Bank Bank Management Six Months 1,900 20261 2026 Capital Guaranteed 0.95% Bank Nanchang Financial Products Time Deposits July 27
High-tech payment day
OK
Guangfa Bank Bank Management Three Months 1,000 2026 1 2026 Capital Guaranteed 0.70% Bank Nanchang Financial Products Time Deposits April 27
High-tech payment day
OK
Bank of Beijing Banking Management Three months 300 2026 2 2026 Capital guaranteed 0.90% Bank Nanchang Financial products Time deposit May 5
West Lake branch payment date
OK
Guangfa Bank Bank Management Six Months 1,000 2026 April 2026 Principal Guaranteed 1.20% Bank Nanchang Financial Products Time Deposits October 27
High-tech payment 27th
OK
Bank of Beijing Banking Management One-year term 200 2026 5 2027 Capital guaranteed 1.20% Bank Nanchang Financial Products Time Deposit May 12 May 12
West Lake branch payment date
OK
Guangfa Bank Bank Management Three Months 600 2026 5 2026 Principal Guaranteed 1.00% Bank Nanchang Financial Products Time Deposit Month 27 August 27
High-tech payment day
OK
Guangfa Bank Bank Management Three Months 300 2026 6 2026 Principal Guaranteed 1.00% Bank Nanchang Financial Products Time Deposits September 12
High-tech payment day
OK
On May 13, 2025, the company's 2024 annual shareholders' meeting reviewed and approved the "Proposal on the Use of Temporarily Idle Raised Funds for Cash Management", agreeing that the company will use temporarily idle raised funds (not exceeding 80 million yuan) for cash management, including notice deposits, large certificates of deposit and structured deposit products, on the premise of ensuring the normal progress of investment projects and ensuring the safety of raised funds. The period starts from the date of review and approval by the company’s shareholders’ meeting and ends on the date of the 2025 annual shareholders’ meeting. If the duration of a single financial transaction exceeds the validity period of the resolution of the shareholders' meeting, the validity period of the resolution will automatically be extended to the date of termination of the transaction. Within the above quota range, funds can be used on a rolling basis, and the total amount of unexpired financial products purchased and held by the company with idle raised funds at any point during the investment period shall not exceed the above quota.
On May 19, 2026, the company's 2025 annual shareholders' meeting reviewed and approved the "Proposal on the Use of Temporarily Idle Raised Funds for Cash Management", agreeing that the company, on the premise of ensuring the normal progress of fundraising projects and ensuring the safety of raised funds, will use temporarily idle raised funds (not exceeding 70 million yuan) for cash management, including notice deposits, large certificates of deposit and structured deposit products. The usage period of this quota shall not exceed 12 months from the date this proposal is reviewed and approved by the shareholders' meeting. If the duration of a single financial transaction exceeds the validity period of the resolution of the shareholders' meeting, the validity period of the resolution will automatically be extended to the date of termination of the transaction. Within the above quota range, funds can be used on a rolling basis, and the total amount of unexpired financial products purchased and held by the company with idle raised funds at any point during the period shall not exceed the above quota.
As of June 30, 2026, the balance of some idle raised funds for cash management was 65 million yuan, and there was no pledge.
4. Usage of funds for changing the purpose of raised funds
During the reporting period, the company did not change any investment projects with raised funds.
5. Problems in the use and disclosure of raised funds
The Board of Directors of the Company believes that the Company has timely, truly, accurately and completely disclosed the storage and actual use of the Company's raised funds in accordance with the China Securities Regulatory Commission's "Supervisory Rules for Listed Companies' Raised Funds", the "Beijing Stock Exchange Stock Listing Rules" promulgated by the Beijing Stock Exchange, "Beijing Stock Exchange's Continuous Supervision Guidelines for Listed Companies No. 9 - Management of Raised Funds" and relevant announcement formats, and that there are no violations in the management of raised funds. The Company has faithfully fulfilled its disclosure obligations regarding the investment direction and progress of the raised funds.
6. Documents for reference
"Resolution of the 25th Meeting of the Fourth Board of Directors"
Huawei Design Group Co., Ltd. Board of Directors
Schedule 1 on August 24, 2026:
Comparison table of usage of raised funds (publicly issued and listed to unspecified qualified investors)
Unit: RMB 10,000 of net raised funds (including those obtained through the exercise of over-allotment options)
17,149.69 The total amount of raised funds invested in this reporting period was 510.36 raised funds)
Amount of raised funds changed in use 6,236.58
The total amount of raised funds that have been invested is 5,161.12 The proportion of total raised funds that have been changed in use is 36.37%
Whether the feasibility of the project has changed. Accumulated by the end of the period. Investment by the end of the period. The project has reached the target.
Raised funds are used to adjust the total investment. Whether the investment in this reporting period has reached the target of whether to launch the project, including part of the investment amount. Progress (%). Determine the usable status.
(1) Amount of expected benefits Significant changes (2) (3)＝(2)/(1) status date
ization
- Design Services June 2027
Yes 7,785.90 362.76 4,571.59 58.72% Not applicable No Network project 30 days
- Design and Research December 2026
No 3,127.204 147.59 589.54 18.85% Not applicable No center project Month 31
Total - 10,913.104 510.36 5,161.12 - - - -
The company will determine whether the actual progress of the actual fundraising project lags behind the publicly disclosed plan based on changes in the national macro-economy, downstream market demand, and the company's own business development.
According to the situation, the construction of the "Design Service Network Project" and the "Design and R&D Center Project" will be promoted prudently and reasonably. If there is any future planning progress, if it exists, please explain the response measures and investment plan.
If it is really necessary to postpone the implementation or other situations occur that affect the project implementation, the company will promptly perform the relevant review procedures and promptly perform whether adjustments are needed (depending on the specific purpose of the raised funds)
Perform information disclosure obligations.
Description of significant changes in feasibility None
Explanation of changes in the use of raised funds (divided into specific raised funds
During the reporting period, the company did not change any investment projects with raised funds.
gold use)
On January 15, 2026, the 19th meeting of the company's fourth board of directors reviewed and approved the "Proposal on Using Own Funds to Pay for Project Personnel Fees and Replacement with Raised Funds in Equal Balance." It is agreed that the company's raised funds will be invested in the exchange of raised funds for self-raised funds. During the implementation period of the project, the company's own funds will be used to pay for the personnel of the raised investment project according to the actual situation, and the raised funds will be replaced in equal amounts. The total replacement amount incurred during the reporting period was RMB 82,000, which was all related personnel expenses such as social insurance, housing provident fund and taxes incurred in the investment project.
Consideration of using idle raised funds to temporarily supplement working capital
degree
The amount of temporary replenishment using raised funds at the end of the reporting period 0
Consideration amount for using idle raised funds to purchase relevant financial products
Not exceeding NT$70 million
degree
Use idle raised funds to purchase relevant financial products at the end of the reporting period
65 million yuan
balance
Description of the use of super-raised funds None
Description of transfer of surplus raised funds None
Description of investment in overseas fundraising projects None
Changes in implementation locations of investment projects with raised funds During the reporting period, the Company did not change the implementation locations of investment projects with raised funds. Adjustments to the investment amount of investment projects with raised funds During the reporting period, there was no adjustment to the investment amount of investment projects with raised funds.
Note: If there is any discrepancy between the total number and the sum of the sub-items in this report, it is due to rounding.