Zhejiang Liju Thermal Energy Equipment Co., Ltd. Progress Announcement on the Redemption of Cash Management Using Temporarily Idle Raised Funds and Continuing Cash Management

Stock Code: 603391 Stock Short Name: Liju Thermal Energy Announcement No.: 2026-003

Zhejiang Liju Thermal Energy Equipment Co., Ltd.

Announcement on the Progress of Cash Management, Including the Redemption Upon Maturity and Continued Cash Management

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

Key Matters to Note:

● Basic Information

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● Procedures for Deliberation Completed

Zhejiang Liju Thermal Energy Equipment Co., Ltd. (hereinafter referred to as the “Company”) convened the 7th meeting of the second session of the board of directors and the 5th meeting of the second session of the board of supervisors on August 20, 2025, which considered and approved the “Proposal of Zhejiang Liju Thermal Energy Equipment Co., Ltd. on Using Temporarily Idle Proceeds for Cash Management.” The Company agreed to use temporarily idle proceeds of no more than RMB 400M (including RMB 400M) to purchase wealth management products with high safety and good liquidity, including wealth management products issued by financial institutions such as banks and securities companies. The validity period is 12 months from the date on which the board of directors approves the matter. Within the quota, the funds may be used on a rolling basis. Within the above quota and time period, the board of directors authorizes the chairman of the Company to sign relevant contractual documents within the above quota. Specific matters shall be organized and implemented by the Company’s finance department.

● Risk Warning

Although the products purchased by the Company using temporarily idle proceeds are investment products with high safety and good liquidity, the financial market is greatly affected by macroeconomic conditions. The Company will appropriately and timely engage, in terms of timing and amount, based on economic conditions and changes in the financial market, but does not rule out that this investment may be affected by market fluctuations.

I. Overview of Redemption Upon Maturity of the Previous Cash Management of Proceeds

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II. Overview of the Cash Management of Proceeds This Time

(1) Purpose of Cash Management

To improve the efficiency of using the Company’s proceeds, while not affecting the construction of proceeds-related projects and the Company’s normal business operations, the Company reasonably uses temporarily idle proceeds for cash management, to increase the return on funds and obtain investment returns for the Company and its shareholders.

(2) Sources of Funds

1. General Information on Sources of Funds

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

2. Basic Information on Proceeds

Pursuant to the “Reply on Approving the Registration for the Initial Public Offering of Shares by Zhejiang Liju Thermal Energy Equipment Co., Ltd.” issued by the China Securities Regulatory Commission (CSRC Approval No.: [2023] 2609), the Company was approved to publicly issue 22,750,000.00 ordinary shares (A shares) to the general public in RMB, with a par value of RMB 1 per share and an issue price of RMB 40.00 per share. The total amount of proceeds raised was RMB 910,000,000.00. After deducting the underwriting and sponsorship fees (excluding tax) of RMB 53,226,415.09 and deducting other issuance expenses directly related to the issuance of equity securities (excluding tax) of RMB 22,737,806.36, the net proceeds were RMB 834,035,778.55.

The above funds arrived on July 26, 2024 and were verified by Lixin Certified Public Accountants (Special General Partnership), which issued a capital verification report numbered Xin Hui Shi Bao Zi [2024] No. ZF11014.

After the proceeds were received, in order to standardize the management and use of proceeds and protect investors’ rights and interests, the Company, together with the sponsor and the bank for the dedicated account, respectively signed the “Tripartite Regulatory Agreement for the Dedicated Deposit of Proceeds,” opened dedicated special accounts for the proceeds, and implemented dedicated deposit management for the proceeds.

According to the “Prospectus for the Initial Public Offering of Shares by Zhejiang Liju Thermal Energy Equipment Co., Ltd. and Listing on the Main Board” and the “Announcement of Zhejiang Liju Thermal Energy Equipment Co., Ltd. on Adjusting the Amount of Proceeds Intended to Be Invested in the Proceeds Investment Projects,” after deducting issuance expenses, the proceeds from the initial public offering of shares will be invested in the following projects:

Unit: RMB ten thousand

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Given that the construction of the proceeds investment projects requires a certain period, according to the progress of the construction of the proceeds investment projects, the proceeds are temporarily idle in the short term at this stage.

(3) Basic Information on the Cash Management Products This Time

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III. Risk Control Measures

1. The Company will, based on the principle of separating decision-making, execution, and supervision functions, establish and improve the approval and execution procedures for cash management, effectively carry out and ensure the standardized operation of the purchase of wealth management products, and ensure the safety of funds.

2. The Company will strictly comply with the prudent principle to select investment counterparties, mainly choosing products issued by reputable issuers with large scale and the capability to ensure the safety of funds.

3. Relevant personnel in the Company’s finance department will promptly analyze and track the product investment direction and the progress of the projects. If risk factors that may affect the Company’s fund safety are identified through evaluation, the Company will promptly take corresponding preservation measures to control risks.

4. The board of supervisors, independent directors, and the audit committee of the board of directors have the right to supervise and inspect the use of funds, and if necessary, may engage professional institutions to conduct audits.

IV. Impact on the Company

Under the premise of ensuring the normal implementation of the projects funded by the proceeds (the “MP Projects”) and ensuring the safety of the proceeds, this time the Company will use temporarily idle proceeds to purchase wealth management products or deposit-type products with high safety and good liquidity. This will not affect the construction of the MP Projects and the development of the main business. It is beneficial for improving the efficiency of using proceeds and the returns on cash assets, further enhancing the Company’s overall earnings, and is in line with the interests of all shareholders of the Company. It will not cause any material adverse impact on the Company’s future main business, financial position, operating results, and cash flow, etc.

The income generated from the Company’s cash management using temporarily idle proceeds belongs to the Company, and the Company will strictly manage and use the funds in accordance with the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange regarding proceeds regulatory measures. After the cash management products mature, the funds will be returned to the dedicated proceeds account.

V. Internal Decision-Making Procedures Completed

The Company convened the 7th meeting of the second session of the board of directors and the 5th meeting of the second session of the board of supervisors on August 20, 2025, which considered and approved the “Proposal of Zhejiang Liju Thermal Energy Equipment Co., Ltd. on Using Temporarily Idle Proceeds for Cash Management.” The Company agreed to use temporarily idle proceeds of no more than RMB 400M (including RMB 400M) to purchase wealth management products with high safety and good liquidity, including wealth management products issued by financial institutions such as banks and securities companies. The validity period is 12 months from the date on which the board of directors approves the matter. Within the quota, the funds may be used on a rolling basis. Within the above quota and time period, the board of directors authorizes the chairman of the Company to sign relevant contractual documents within the above quota. Specific matters shall be organized and implemented by the Company’s finance department.

VI. Risk Warning

Although the products purchased by the Company using temporarily idle proceeds are investment products with high safety and good liquidity, the financial market is greatly affected by macroeconomic conditions. The Company will appropriately and timely engage, in terms of timing and amount, based on economic conditions and changes in the financial market, but does not rule out that this investment may be affected by market fluctuations.

This announcement is hereby issued.

Board of Directors of Zhejiang Liju Thermal Energy Equipment Co., Ltd.

April 2, 2026

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