Mingxin Xutenq Uses 50 Million Yuan of Idle Raised Funds to Purchase Structured Deposits; Cumulative Unmatured Balance of 150 Million Yuan

Announcement Interpretation: New Actions in Idle Fund Cash Management

Mingxin Xuteng New Materials Co., Ltd. (Stock Code: 605068, Stock Abbreviation: Mingxin Xuteng; Convertible Bond Code: 111004, Convertible Bond Abbreviation: Mingxin Convertible Bond) issued an announcement on March 20, 2026, disclosing the latest progress in the company’s use of idle funds for cash management. The company invested 50 million yuan in structured deposit products from Bank of Ningbo to improve capital efficiency and generate more returns for shareholders.

Details of Cash Management

The funds for this cash management come from the company’s 2022 public issuance of convertible corporate bonds. The total raised amount was 673 million yuan, with a net amount of 663.6423 million yuan. As of September 30, 2025, the progress of the “Annual Production of 8 Million Square Meters of Water-Based Island Superfiber New Material Intelligent Manufacturing Project” reached 50.21%, expected to be operational by December 2026; the “Supplementary Working Capital” project had an investment progress of 102.11% (mainly due to account interest income supplementing working capital). The company clearly states that this cash management does not affect the normal implementation of the invested projects.

Fund Management Limit and Term

The company’s 4th Board of Directors’ third meeting and 4th Supervisory Committee’s third meeting held on April 18, 2025, approved the “Proposal on Using Idle Funds for Cash Management,” which was also approved at the 2024 annual shareholders’ meeting. According to this proposal, the company may use up to 300 million yuan of temporarily idle raised funds for cash management, with the limit valid for 12 months from the date of shareholder approval.

As of the date of this announcement, the remaining balance of temporarily idle funds used for cash management is 150 million yuan.

Review of Cash Management of Raised Funds in the Past 12 Months

In the past 12 months, Mingxin Xuteng has actively managed cash, involving various products such as large ordinary certificates of deposit, structured deposits, and brokerage wealth management products. The total actual return reached 6.4274 million yuan, with a maximum single-day investment of 170 million yuan, accounting for 10.18% of the company’s net assets over the past year.

Risk Control and Impact

The company states that the structured deposit purchased this time is a low-risk investment product, meeting high safety and liquidity requirements, with no disguised change in the use of raised funds. To control risks, the company will strictly select issuing entities, track investment directions, and conduct audits and supervision through internal audit departments. Independent directors and the Board’s Audit Committee will also supervise the use of funds.

This cash management helps improve the utilization efficiency of idle funds, increase cash asset returns, and, under the premise of ensuring the construction of invested projects and normal operations, generate good investment returns for the company and shareholders. The company will handle accounting in accordance with relevant regulations such as “Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments,” with specific details subject to annual audit results.

Special Risk Reminder

Although the company’s current investment products are low-risk and highly liquid, financial markets are significantly affected by macroeconomic, fiscal, and monetary policies. Market fluctuations may impact these investments. Investors should be aware of related risks.

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