Securities code: 688777 Securities abbreviation: ZKTeco Announcement No.: 2024-080

SUPCON Technology Co., Ltd

Announcement on the use of temporarily idle own funds to purchase wealth management products

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or material omissions in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content in accordance with the law.

On December 21, 2024, SUPCON Technology Co., Ltd. (hereinafter referred to as the "Company") held the 10th meeting of the 6th Board of Directors and the 9th meeting of the 6th Board of Supervisors of the Company, and reviewed and approved the "Proposal on Using Temporarily Idle Own Funds to Purchase Wealth Management Products", and agreed that the Company should use its own funds with a limit of no more than RMB 3 billion to purchase high-security, well-liquid, short-term (no more than 12 months) wealth management products without affecting the normal operation and capital security of the Company and its subsidiaries. It is valid for 12 months from the date of deliberation and approval of the 10th meeting of the 6th board of directors of the company. Within the scope of the above-mentioned wealth management quota and period, the funds can be used on a rolling basis. The board of directors of the company authorizes the chairman of the board of directors and the management to exercise the decision-making power and sign relevant documents within the validity period of the corresponding quota and resolution, and the specific matters are organized and implemented by the company's financial management department. The relevant information is hereby announced as follows:

1. Regarding the use of temporarily idle self-owned funds to purchase wealth management products

(1) The purpose of purchasing wealth management products

Under the premise of not affecting the normal operation and capital security of the company and its subsidiaries, in order to improve the efficiency of capital use, rationally use temporarily idle own funds, increase cash asset income, and obtain more returns for the company and shareholders.

(2) Quota for the purchase of wealth management products

The company intends to use temporarily idle own funds of no more than RMB 3 billion to purchase wealth management products, with a use period of no more than 12 months. Within the scope of the above-mentioned wealth management quota and period, the funds can be used on a rolling basis.

(3) Purchase of wealth management products

In order to control risks, the company and its subsidiaries plan to use temporarily idle own funds to purchase high security and liquidity

Good, short-term (no more than 12 months), investment products sold by financial institutions with legal business qualifications (including but not limited to large-amount certificates of deposit, time deposits, call deposits, structured deposits, short-term low-risk, fixed income and other wealth management products approved by the board of directors). The above investment products shall not be used for pledge, and shall not be used to invest in stocks and their derivatives, or equity securities investment funds.

(4) The duration of the authorization

The term shall be within 12 months from the date of deliberation and approval of the tenth meeting of the sixth board of directors of the company.

(5) Sources of funds and specific implementation methods

The source of funds is the company's temporarily idle own funds. Within the scope of the quota and the validity period of the resolution, after being deliberated and approved by the board of directors of the company, the board of directors of the company authorizes the chairman of the board of directors and the management to exercise the decision-making power and sign the relevant contract documents within the validity period of the corresponding quota and resolution, and the specific matters shall be organized and implemented by the company's financial management department.

Among them, for a single entrusted wealth management business with an amount of no more than RMB50 million, the financial management department shall be organized to handle it after authorizing the person in charge of finance to exercise the decision-making and approval acts; For a single entrusted wealth management business with an amount of more than RMB50 million, the chairman of the board of directors shall hand over the decision-making and approval to the financial management department for handling.

2. Risks and risk control measures

(1) Risks of cash management

The company should choose a wealth management product with high security, good liquidity and short-term (no more than 12 months), because the financial market is greatly affected by the macroeconomy, the company will invest funds in a timely and appropriate amount according to the economic situation and changes in the financial market, but it does not rule out that the investment has systemic risks caused by market fluctuations, policy changes and other reasons, as well as related risks that may be caused by the operation errors of staff.

(2) Risk control measures

1. The company's financial management department will analyze and track the investment direction and project progress of wealth management products in a timely manner, and must take corresponding preservation measures in a timely manner to control investment risks once unfavorable factors are found or judged.

2. In accordance with the requirements of relevant laws and regulations, the company has established and improved the special system of cash management, standardized the approval and implementation procedures of cash management, and ensured the effective development and standardized operation of cash management.

3. Independent directors, the board of supervisors and internal audit institutions can supervise and inspect the use of funds of wealth management products, and if necessary, they can hire professional institutions to conduct audits.

4. The company will fulfill its information disclosure obligations in a timely manner in strict accordance with the relevant provisions of the "Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange" and the "Entrusted Financial Management System of ZKTeco Technology Co., Ltd."

3. Impact on the company's daily operations

1. Based on the principles of standardized operation, risk prevention, prudent investment, and value preservation and appreciation, the company uses temporarily idle own funds to purchase wealth management products, which is implemented on the premise of ensuring daily operation, and has not affected the company's normal production and operation.

2. The company uses temporarily idle own funds to purchase wealth management products, which can improve the efficiency of the use of temporarily idle own funds, increase the company's income, and obtain more returns for the company and shareholders.

Fourth, the implementation of decision-making procedures

(1) Deliberation procedures

On December 21, 2024, the 10th meeting of the 6th board of directors and the 9th meeting of the 6th board of supervisors of the company were held

At the meeting, the "Proposal on Using Temporarily Idle Own Funds to Purchase Wealth Management Products" was reviewed and approved, and it was agreed that the company would use temporarily idle own funds of no more than RMB 3 billion for cash management without affecting the normal operation and capital security of the company and its subsidiaries.

5. Explanation of special opinions

(1) Opinions of the Board of Supervisors

The Board of Supervisors believes that the Company intends to use its own funds with a quota of no more than RMB 3 billion to purchase wealth management products with high security, good liquidity and short-term (no more than 12 months), which is conducive to improving the efficiency of capital use, increasing the Company's capital income, and seeking a better return on investment for the Company and shareholders. This matter will not affect the company's daily capital turnover needs and the normal development of the company's main business, and there is no harm to the interests of the company and all shareholders, especially small and medium-sized shareholders.

Therefore, we agree that the company will use no more than RMB3 billion of temporarily idle own funds to purchase wealth management products.

The announcement is hereby made.

Board of Directors of SUPCON Technology Co., Ltd

December 23, 2024