Wanchen Group plans to utilize no more than 1.55 billion yuan of idle funds for cash management to improve capital utilization efficiency.

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Fujian Wancheng Food Group Co., Ltd. (Stock Code: 300972,简称 “Wancheng Group”) held the 46th meeting of the 4th Board of Directors on March 16, 2026, and approved the proposal on using part of idle raised funds and own funds for cash management. The company plans to use no more than 50 million yuan of idle raised funds and no more than 1.5 billion yuan of idle own funds for cash management to improve capital efficiency and increase returns. This matter is still subject to approval at the company’s 2025 annual shareholders’ meeting.

Basic Information on Raised Funds

According to the relevant approval from the China Securities Regulatory Commission, Wancheng Group was approved to issue 17,699,115 A-shares of RMB ordinary stock, with a par value of 1.00 yuan per share, at an issuance price of 11.30 yuan per share, raising a total of 2 billion yuan. After deducting issuance costs of 6,398,393.25 yuan (tax included), the net proceeds are 193,601,606.75 yuan. Zhongshen Zhonghuan Certified Public Accountants has verified the funds received as of March 1, 2024, and issued a “Capital Verification Report.” The company has opened a dedicated bank account for raised funds for special management.

Specific Arrangements for Cash Management

Limits and Duration

The company and its subsidiaries plan to use no more than 50 million yuan of idle raised funds and no more than 1.5 billion yuan (including this amount) of idle own funds for cash management. The usage period is valid within 12 months from the date the 2025 annual shareholders’ meeting approves it. Within the above period and limits, funds can be rolled over and reused. After the maturity of the raised funds’ cash management, the funds must be returned to the dedicated raised funds account. Both the company and subsidiaries within the scope of consolidated financial statements can use the own funds’ cash management quota.

Investment Types

• Idle Raised Funds: Used to purchase high-security, highly liquid capital-protected financial products or structured deposits, fixed-term deposits, notice deposits, etc. Investment products must meet conditions such as high safety (with capital protection commitments), good liquidity (not affecting the normal progress of raised fund investment plans), no pledge, and the dedicated settlement account must not hold non-raising funds or be used for other purposes.

• Idle Own Funds: Used to subscribe to cash management financial products issued by financial institutions such as commercial banks (including wealth management subsidiaries), securities firms, trust companies, fund companies, asset management companies, etc., which are high-security, highly liquid, low-risk, and offer fixed or floating returns, as well as other financial products approved through internal decision-making procedures.

Implementation Method and Income Distribution

Investment products must be purchased in the name of the company or its subsidiaries. The board authorizes management to make related investment decisions and sign documents within the specified limits and duration.

Income from cash management of idle funds will be primarily used to supplement insufficient investment in fundraising projects and to meet the company’s daily operating cash needs. Income from cash management of idle own funds belongs to the company and will be used to supplement working capital.

Risk Control Measures

Although the selected investment products are high-security and highly liquid, financial markets are greatly affected by macroeconomic factors, and there are risks of market fluctuations. Short-term investments’ actual returns are unpredictable. To manage these risks, the company will implement several measures:

1. Strictly select investment targets, choosing reputable, large-scale financial institutions capable of ensuring fund safety, with good operational efficiency.
2. Finance department personnel will analyze and monitor product net value changes in real-time and take timely measures if risks are identified.
3. Independent directors may review and supervise cash management, and if necessary, hire external independent auditors for special audits.
4. Comply with Shenzhen Stock Exchange disclosure requirements.

Approval Procedures and Opinions from Parties

This proposal has been approved by the 46th meeting of the 4th Board of Directors and is subject to approval at the 2025 annual shareholders’ meeting. The board believes that this cash management can improve capital utilization and returns without affecting normal operations or harming the interests of the company and shareholders.

Hua Xing Securities Co., Ltd., the sponsor, has verified that the company’s use of part of idle raised funds and own funds for cash management is conducive to improving capital efficiency and increasing company income. There is no concealment of fund use or harm to shareholders’ interests, and the decision procedures are compliant. They have no objections to this matter.

Impact on the Company

The company states that using part of idle raised funds and own funds for cash management is conducted without affecting the construction of fundraising projects or daily operational needs. The goal is to make reasonable use of temporarily idle funds, improve capital efficiency, and generate more investment returns for the company and shareholders.

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