Securities code: 688052 Securities abbreviation: Naxin Micro Announcement No.: 2024-024

Suzhou Naxin Microelectronics Co., Ltd.

Announcement on Using Part of Over-raised Funds to Permanently Supplement Liquidity

The Board of Directors and all Directors of the Company warrant that there are no false records, misleading statements or material

omissions, and shall bear legal responsibility for the authenticity, accuracy and completeness of its contents in accordance with the law.

IMPORTANT:

● Over-raised funds to permanently supplement the working capital quota: it is proposed to use RMB 1.4 billion yuan of over-raised funds

Permanently replenish liquidity, accounting for 28.98 per cent of total over-raised funds.

Commitment: The company promises to use the over-raised funds for permanent replenishment of liquidity every 12 months.

The fund shall not exceed 30% of the total amount of over-raised funds, and shall not make high-risk investments and provide financial assistance to objects other than the holding subsidiary within 12 months after replenishing the working capital.

● This proposal is still to be submitted to the company's general meeting of shareholders for consideration.

Suzhou Naxin Microelectronics Co., Ltd. (hereinafter referred to as the "Company") was held on June 19, 2024.

At the ninth meeting of the third board of directors and the ninth meeting of the third board of supervisors, the proposal on using part of the over raised funds to permanently supplement the working capital was deliberated and passed, and it was agreed that the company should use the over raised funds of RMB 1.4 billion yuan to permanently supplement the working capital, accounting for 28.98 of the total amount of over raised funds.

The specific circumstances are hereby announced as follows:

Basic situation of 1. raised funds

According to the "Approval for the Registration of the Initial Public Offering of Shares of Suzhou Naxin Microelectronics Co., Ltd." (Securities Regulatory Commission License [2022] No. 427) issued by the China Securities Regulatory Commission, the company is approved to publicly issue 25.266 million RMB ordinary shares to the public. The issue price per share is RMB 230.00, and the total amount of raised funds is RMB 5,811.18 million; after deducting underwriting and recommendation fees, issuance registration fees and other issuance fees totaling 229.9334 million yuan (excluding value-added tax), the net amount of funds raised is 5,581.2466 million yuan, and all the above funds have been put in place. Tianjian Certified Public Accountants (Special General Partnership) examined and issued the "Tianjian Inspection No. 2022 148" capital verification report on April 19, 2022.

After the fund-raising funds have been received, all of them have been deposited in the special fund-raising account approved by the company's board of directors. The company has signed a tripartite supervision agreement with the sponsor institution and the commercial bank that deposits the fund-raising funds.

2. raised funds investment projects

According to the Company's disclosure of "Suzhou Naxin Microelectronics Co.

Board listing prospectus, the initial public offering of shares to raise funds to use the plan is as follows:

Unit: ten thousand yuan

No. Project Name Project Total Investment Amount Raised Funds Proposed Investment Amount Implementation Subject

1 Signal chain chip development and system application project 43,900.00 43,900.00 nano-core micro.

2 R & D Center Construction Project 8,900.00 8,900.00 Nanocore Micro

3 Supplementary working capital project 22,200.00 22,200.00 nano core micro

Total 75,000.00 75,000.00-

3. the plan to use the over-raised funds to permanently supplement the working capital.

On the premise of ensuring the capital demand for the construction of fund-raising investment projects and the normal progress of fund-raising projects, in order to meet the company's liquidity needs, improve the efficiency of the use of fund-raising, reduce financial costs, further enhance the company's profitability, and safeguard the interests of listed companies and shareholders, according to the "Guidelines for the Supervision of Listed Companies No. 2-Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies", "Shanghai Stock Exchange Science and Technology Innovation Board Listed Companies Self-Regulatory Guidelines No. 1-Standardized Operation" and the company's "Raised Funds Management System" The company intends to use part of the over-raised funds to permanently supplement working capital for the company's production and operation, which meets the needs of the company's actual operation and development, and interests of all shareholders.

The total amount of funds raised by the company this time is 5,811.18 million yuan, of which the over-raised amount is 4,831.2466 million yuan. This time, it is proposed to use the over-raised funds of RMB 1.4 billion to permanently supplement the working capital, accounting for 28.98 of the total over-raised funds. The company's cumulative use of over-raised funds to permanently supplement working capital in the past 12 months does not exceed 30% of the total over-raised funds, and does not violate the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the use of funds raised by listed companies.

4. related commitments and statements

The company promises that the cumulative use of over-raised funds to supplement working capital every 12 months will not exceed 30% of the total over-raised funds; the use of over-raised funds to permanently supplement working capital will not affect the normal progress of the company's raised capital investment plan; within 12 months after supplementing working capital, no high-risk investment will be made and financial assistance will be provided to objects other than holding subsidiaries.

Procedures for the consideration of 5. implementation

The company held the ninth meeting of the third board of directors and the ninth meeting of the third board of supervisors on June 19, 2024

At the meeting, the "Proposal on the Use of Part of the Over-raised Funds to Permanently Supplement Liquidity" was reviewed and approved, and it was agreed that the company would use RMB 1.4 billion yuan of over-raised funds to permanently supplement liquidity, accounting for 28.98 of the total over-raised funds. The motion is still to be submitted to the company's shareholders' meeting for consideration.

6. Special Comments

Opinions of (I) Supervisory Board

The Board of Supervisors believes that the use of over-raised funds to permanently supplement working capital is in compliance with the "Guidelines for the Supervision of Listed Companies No. 2-Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies" and "Guidelines for the Self-Discipline Supervision of Listed Companies on the Shanghai Stock Exchange Science and Technology Innovation Board No. 1-Standardized Operation" and other relevant laws, regulations, regulatory documents, and "Articles of Association" and "Fund Raised Management System. The company will use the over raised funds to permanently supplement the working capital and use them for the production and operation related to the main business. There is no situation of changing the use of the raised funds and harming the interests of shareholders, which is conducive to improving the use efficiency of the raised funds, reducing the company's financial costs, and further improving the company's profitability, which is in the interests of the company and all shareholders. In summary, the Supervisory Board agreed to the company's use of part of the over-raised funds to permanently replenish liquidity matters.

(II) recommendation

After verification, the sponsor believes that: the company's use of part of the over-raised funds to permanently supplement working capital has been reviewed and approved by the company's board of directors and board of supervisors, and the necessary procedures have been fulfilled, and it still needs to be submitted to the company's shareholders meeting for deliberation. This matter is in line with the "Guidelines for the Supervision of Listed Companies No. 2-Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies", "Guidelines for the Self-Regulation of the Shanghai Stock Exchange's Science and Technology Board No. 1-Standardized Operation" and other relevant provisions and the Company's "Fund Raising Management System. This time, the company uses part of the over raised funds to permanently supplement the working capital and use it for the production and operation related to the main business. There is no situation of changing the use of the raised funds and harming the interests of shareholders, which is conducive to improving the use efficiency of the raised funds, reducing the company's financial costs, and further improving the company's profitability, which is in the interests of the company and all shareholders.

In summary, the sponsor has no objection to the company's use of part of the over-raised funds to permanently replenish liquidity.

It is hereby announced.

Board of Directors of Suzhou Naxin Microelectronics Co., Ltd.

20 June 2024