Nanling Technology Co., Ltd. Announcement on the Use of Part of Idle Raised Funds and Idle Own Funds for Cash Management Progress Announcement_Investment

Original title: Nanling Technology Co., Ltd. Announcement on the Use of Part of Idle Raised Funds and Idle Own Funds for Cash Management Progress Announcement

Stock code: 300921 Stock abbreviation: Nanling Technology Announcement Number: 2021-059

Nanling Technology Co., Ltd.

Announcement on the progress of using some idle raised funds and idle self-owned funds for cash management

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

Nanling Technology Co., Ltd. (hereinafter referred to as the “Company”) will hold the 13th meeting of the 2nd Board of Directors and the 9th meeting of the 2nd Board of Supervisors on January 27, 2021. The 2021 meeting will be held on February 22, 2021. The 1st Extraordinary General Meeting of Shareholders deliberated and approved the “Proposal on the Use of Idle Raised Funds and Idle Own Funds for Cash Management.” In order to improve the efficiency of the company’s use of funds, under the premise of not affecting the construction of raised funds investment projects and the company’s normal operations, it is agreed that the company will use idle raised funds (including over-raised funds) and the total amount not exceeding 500 million yuan (including 500 million yuan). Idle self-owned funds of no more than 200 million yuan (including 200 million yuan) are used for cash management to purchase bank wealth management products with high security and good liquidity (including but not limited to structured deposits with a maturity of less than one year) , The use period is 12 months from the date of approval by the company’s general meeting of shareholders. Within the aforesaid amount and time limit, the funds can be used on a rolling basis. The independent directors of the company issued independent opinions on this, and the sponsor issued a special inspection opinion. For details, please refer to the “Announcement on the Use of Idle Raised Funds and Idle Own Funds for Cash Management” and other related announcements published on designated newspapers and www.cninfo.com on January 28, 2021.

According to the above-mentioned resolution, the amount and time limit for purchasing cash management products disclosed this time are within the scope of the above-mentioned approval and no further deliberation by the company’s board of directors is required. The company’s recent use of idle raised funds and idle self-owned funds for cash management is as follows:

1. The company’s recent use of idle raised funds and idle self-owned funds to purchase cash management products

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Note: The above-mentioned trustee China Merchants Bank Co., Ltd. is the depository bank for the company’s raised funds, and the trustee Bank of Shanghai Co., Ltd. is the depository bank for the company’s own funds, and there is no associated relationship with the company.

2. Investment risk analysis and risk control measures

(1) Investment risk

1. The principal-guaranteed product purchased by the company is a low-risk investment product, but the financial market is greatly affected by the macro economy, and it cannot be ruled out that this investment is affected by market fluctuations.

2. The company will intervene in a timely and appropriate amount according to the economic situation and changes in the financial market, so the actual return on short-term investment is unpredictable.

(2) In response to investment risks, the following measures are proposed:

1. The company will strictly abide by the principle of prudent investment and select low-risk investment products. It shall not be used for other securities investment, and shall not be used to purchase stocks and their derivatives and unsecured bonds as the investment target of bank wealth management products, etc.

2. The company’s financial department will analyze and track the investment of wealth management products in a timely manner. During the financial management period of the above-mentioned wealth management products, the company will maintain close contact with relevant financial institutions, timely track the operation of wealth management funds, strengthen risk control and supervision, and strictly control the safety of funds .

3. The company’s internal audit department conducts daily supervision of the use and custody of wealth management funds, and regularly audits and verifies the use of wealth management funds.