Zhejiang Zhengyu Industrial Co., Ltd. Announcement on the Maturity Redemption of Part of the Temporarily Idle Raised Funds for Cash Management and Continuing Cash Management

Stock Code: 603089 Stock Short Name: Zhengyu Industrial Announcement No.: 2026-017

Zhejiang Zhengyu Industrial Co., Ltd.

Announcement on Using Some Temporarily Idle Proceeds for Cash Management

Regarding the Redemption Upon Maturity and Continuing to Conduct Cash Management

The board of directors of the Company and all its directors hereby guarantee that this announcement contains no false representations, misleading statements, or material omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of the contents of this announcement.

Key Matters:

● Investment type: Structured deposits

● Investment amount: RMB 20.00 million

● Consideration procedures completed: Zhejiang Zhengyu Industrial Co., Ltd. (hereinafter referred to as the “Company” and “Zhengyu Industrial”) approved, at the 26th meeting of the fifth session of the board of directors held on March 19, 2026, the “Proposal on Using Idle Proceeds for Cash Management.” It was agreed that, without affecting the normal progress of the investment plan for the proceeds, the Company would use idle proceeds for cash management to purchase wealth management products with high safety, good liquidity, meeting principal-protected requirements, and with a term not exceeding 12 months. This matter falls within the approval authority of the board of directors and does not require submission to a general meeting for consideration. The sponsor has no objection to the Company’s management of idle proceeds.

● Special risk warning: Although the Company’s cash management product this time is a wealth management product with high safety, good liquidity, meeting principal-protected requirements, and a term not exceeding 12 months, the financial market is greatly affected by macroeconomic conditions. It cannot be ruled out that this investment will be affected by factors such as policy risk, market risk, liquidity risk, information transmission risk, force majeure, and risks related to unexpected events. Investors are kindly requested to make cautious decisions and take measures to prevent investment risks.

I. Overview of the Investment

(1) Investment purpose

To improve the efficiency of capital use, reduce financial costs, the Company, based on its business plan and capital use situation, and while ensuring that it does not affect the use of the Company’s proceeds and guarantees the safety of the proceeds, uses temporarily idle proceeds for cash management to improve the utilization efficiency of idle proceeds, increase returns on cash assets, reduce financial expenses, and increase returns to shareholders.

(2) Investment amount

The amount to be used for this cash management is RMB 20.00 million.

(3) Source of funds

1. The funds for this cash management are derived from some temporarily idle proceeds from the Company’s issuance of A-share stocks to specific parties in 2025.

2. Basic information on the proceeds

Approved by the China Securities Regulatory Commission’s “Reply on Approving the Registration of the Application for the Issuance of Shares by Zhejiang Zhengyu Industrial Co., Ltd. to Specific Parties” (CSRC Approval No. [2026] 29), and with approval from the Shanghai Stock Exchange, the Company publicly issued 35,685,963 shares of RMB ordinary shares to specific parties, at an issue price of RMB 12.61 per share. The total proceeds were RMB 449,999,993.43, and after deducting relevant expenses, the net proceeds were RMB 444,934,311.39. The above-mentioned proceeds were received on March 11, 2026. The accounting firm Tianjian Certified Public Accountants (Special General Partnership) issued the “Capital Verification Report” (Tianjian Yan [2026] 76) on March 12, 2026, to verify the arrival of the funds for the Company’s public issuance of new shares. The Company stores the proceeds in a designated account for management.

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Note: The cumulative investment progress is as of March 20, 2026, the share registration date for the issuance to the specific parties in this round.

(4) Investment method

The funds for this cash management are allocated to structured deposits subscribed through a bank. It is a principal-protected, floating-returns type, under which the bank will pay the Company all RMB principal upon deposit maturity and will pay interest to the Company in accordance with regulations.

For this cash management using temporarily idle proceeds, the product issuer is able to provide a principal-protection commitment, which meets the requirements for use conditions of high safety and good liquidity. There is no conduct that covertly changes the use of proceeds. It will not affect the normal progress of the proceeds investment projects, and there is no circumstance that would damage the interests of shareholders.

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(5) Cash management status of the Company’s proceeds over the past 12 months up to now

The quota and term of the cash management products using proceeds are both within the authorized investment quota and term range. The term of each product does not exceed 12 months. The cash management status of the Company’s proceeds over the past 12 months up to now is as follows:

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II. Consideration Procedures

On March 19, 2026, the Company held the 26th meeting of the fifth session of the board of directors to deliberate and approve the “Proposal on Using Idle Proceeds for Cash Management.” It was agreed that, without affecting the normal progress of the investment plan for the proceeds, the Company would use idle proceeds for cash management to purchase wealth management products with high safety, good liquidity, meeting principal-protected requirements, and with a term not exceeding 12 months. This matter falls within the approval authority of the board of directors and does not require submission to a general meeting for consideration.

III. Analysis of Investment Risks and Risk Control Measures

(1) Investment risks

Although the Company’s cash management product this time is a wealth management product with high safety, good liquidity, meeting principal-protected requirements, and a term not exceeding 12 months, the financial market is greatly affected by macroeconomic conditions. It cannot be ruled out that this investment will be affected by factors such as policy risk, market risk, liquidity risk, information transmission risk, force majeure, and risks related to unexpected events.

(2) Risk control measures

The Company will, based on the principle of safeguarding the interests of shareholders and the Company, use temporarily idle proceeds for cash management, strictly comply with the scope of authorization granted by the resolutions of the board of directors. The invested products do not involve conduct that covertly changes the use of the proceeds, and will not affect the normal execution of the proceeds projects. During the product’s existence, the Company will stay in contact with relevant institutions, track the operation of funds, strengthen risk control and supervision, and strictly control the safety of funds. The Company’s finance department will establish ledgers to manage the purchased cash management products, improve and complete accounting records, and properly conduct financial accounting for the use of funds. Independent directors and the audit committee have the right to supervise and inspect the use of funds for management; if necessary, they may hire professional institutions to conduct audits.

IV. Impact of the Investment on the Company

The Company’s use of temporarily idle proceeds for cash management is implemented on the premise that it does not affect the safety of the proceeds, does not change the intended use of the proceeds, and does not alter the scheduling of capital use for the proceeds projects. It is beneficial to improve the Company’s investment returns and the efficiency of capital use, and will not affect the development of the Company’s main business or the implementation of the proceeds projects. By conducting appropriate cash management, the efficiency of proceeds use can be improved, a certain amount of investment returns can be obtained, and greater investment returns can be provided to shareholders.

The Company will conduct the corresponding accounting treatment in accordance with the “Accounting Standards for Enterprises No. 22—Recognition and Measurement of Financial Instruments” and other relevant provisions. The specific treatment shall be subject to the annual audit results.

V. Progress Disclosure

(1) Redemption upon maturity of the previous cash management of proceeds

On March 20, 2026, the Company purchased a time deposit from the Yuhuan Sub-branch of Bank of China. The deposit has been redeemed recently, with principal of RMB 60.00 million recovered and interest of RMB 11.90 thousand obtained. The details are as follows:

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This announcement is hereby issued.

Board of Directors of Zhejiang Zhengyu Industrial Co., Ltd.

April 2, 2026

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