AVIC (Chengdu) UAV System Co., Ltd

Ltd

Deposit and actual use of raised funds

Audit reports

Daxin Zhuan Shen Zi [2025] No. 1-00490

Daxin Certified Public Accountants (Special General Partnership)

WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.

WUYIGE Certified Public Accountants.LLP Tel: +86(10)82330558

Room 2206 22/F, Xueyuan International Tower, Xueyuan International Tower, 1 Zhichun Road, Haidian District, Beijing Fax: +86(10)82327668

22nd Floor, College International Building, 2206 No.1 Zhichun Road, Haidian Dist. Web Internet: www.daxincpa.com.cn

Zip code 100083 Beijing, China, 100083

Audit report on the deposit and actual use of raised funds

Daxin Zhuan Shen Zi [2025] No. 1-00490

All shareholders of AVIC (Chengdu) UAV System Co., Ltd.:

We have been entrusted to review the attached Special Report on the Deposit and Actual Use of Raised Funds in 2024 (hereinafter referred to as the "Special Report on the Deposit and Actual Use of Raised Funds") of AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. (hereinafter referred to as "your company").

1. Responsibilities of the Board of Directors

In accordance with the provisions of the China Securities Regulatory Commission's "Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies (Revised in 2022)" and other documents, it is the responsibility of the board of directors of your company to prepare a special report on the deposit and actual use of raised funds, and ensure that its content is true, accurate and complete, and there are no false records, misleading statements or material omissions.

2. Responsibilities of certified public accountants

Our responsibility is to issue an audit opinion on the special report on the deposit and actual use of the raised funds prepared by your company on the basis of the implementation of the audit work. We performed the audit in accordance with the provisions of the Chinese Certified Public Accountants Standard for Other Assurance Engagements No. 3101 - Assurance Engagements Other than the Audit or Review of Historical Financial Information. The standard requires us to plan and conduct audits to obtain reasonable assurance that there is no material misstatement in the special report on the deposit and actual use of proceeds prepared by your company. In the course of the audit, we have implemented audit procedures that we deem necessary, including inquiry, inspection of relevant information and documents, and random inspection of accounting records. We believe that our review provides a reasonable basis for issuing an audit opinion.

3. Review opinions

In our opinion, the special report on the deposit and actual use of the raised funds prepared by your company complies with the relevant regulations and fairly reflects the actual deposit and use of the raised funds in 2024 in all material respects.

WUYIGE Certified Public Accountants.LLP Tel: +86(10)82330558

Room 2206 22/F, Xueyuan International Tower, Xueyuan International Tower, 1 Zhichun Road, Haidian District, Beijing Fax: +86(10)82327668

22nd Floor, College International Building, 2206 No.1 Zhichun Road, Haidian Dist. Web Internet: www.daxincpa.com.cn

Zip code 100083 Beijing, China, 100083

4. Other explanatory matters

This report is for the purpose of disclosure in your company's annual report only and shall not be used for any other purpose. We agree to submit this report as a necessary document for your company's annual report, along with other documents, and to disclose it to the public. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms that perform this audit.

Daxin Certified Public Accountants (Special General Partnership) Chinese Certified Public Accountants:

China · Beijing Chinese Certified Public Accountant:

March 28, 2025

AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. Special report on the deposit and actual use of raised funds

AVIC (Chengdu) Unmanned Aerial Systems Co., Ltd

About 2024 year

Special report on the deposit and actual use of raised funds

First, the basic situation of the funds raised

(1) The actual amount of funds raised after deducting the issuance costs and the time when the funds arrive in the account

Approved by the China Securities Regulatory Commission on the approval of the registration of the initial public offering of shares of AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. (Zheng Jian Xu Xu [2022] No. 825), and approved by the Shanghai Stock Exchange, the company submitted a letter to the company

The public issued 135 million shares (A shares) at an issue price of 32.35 yuan per share, raising a total of 436,725.00 yuan.

After deducting sponsorship, underwriting fees and issuance expenses, the actual net amount of funds raised was 419,705.72 million yuan.

The above-mentioned raised funds were all in place on June 21, 2022, and the amount of 421,000.35 million yuan in the special account for raised funds was deducted

The issuance expenses were 12.9463 million yuan, and the actual net amount of funds raised was 4197.0572 million yuan.

The matter has been verified by Lixin Certified Public Accountants (Special General Partnership), and the "Capital Verification" was issued on June 21, 2022

Report (Xinhuishi Bao Zi [2022] No. [ZD10132]).

(2) The use and balance of raised funds

As of December 31, 2023, the balance of the company's special account for raised funds was 3581.3752 million yuan. 2024 Company Fundraising

The investment project invested 198.3028 million yuan, and as of December 31, 2024, the balance of the company's special account for raising funds was 343,960.99

10,000 yuan (including the interest generated by the bank deposits of the raised funds and deducting bank charges, totaling 56.5375 million yuan).

Second, the management of raised funds

(1) The management of the raised funds

In order to standardize the use and management of raised funds, protect the rights and interests of investors, improve the efficiency of the use of raised funds, and effectively protect the interests of investors, the company has formulated the "Management System for Raised Funds" in accordance with the relevant regulations and requirements such as the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies and the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, combined with the actual situation of the company. The raised funds will be deposited in the special account for raised funds approved by the board of directors for centralized management, and the company will manage and use the raised funds in accordance with the requirements of the regulations.

(2) The situation of the regulatory agreement on the raised funds

In accordance with the requirements of the Shanghai Stock Exchange and relevant regulations, the company, sponsors (China Securities Co., Ltd.,

AVIC Securities Co., Ltd.) has signed a report on June 14, 2022 with Industrial and Commercial Bank of China Co., Ltd. Chengdu Huangtianba Branch,

China Construction Bank Corporation Chengdu Second Branch, Agricultural Bank of China Corporation Chengdu West Branch, China Merchants Bank

AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. Special report on the deposit and actual use of raised funds

Chengdu Branch of Bank Co., Ltd. signed the Tripartite Supervision Agreement on the Storage of Special Accounts for Raised Funds.

There is no material difference between the above-mentioned regulatory agreement for raised funds and the model regulatory agreement of the Shanghai Stock Exchange. As of December 2024

On March 31, the company's above-mentioned tripartite regulatory agreement was effectively implemented.

(3) The storage of the special account for the raised funds

As of December 31, 2024, the company's raised funds are stored as follows:

Amount unit: RMB 10,000 yuan

Bank Name Account Number Balance on Cut-off Date Remarks

Industrial and Commercial Bank of China Co., Ltd. 4402219009100241072 124,097.33 Special account for raising funds

Division Chengdu Huangtianba Branch

China Construction Bank Co., Ltd. 51050142620800004925 49,083.51 special account for raising funds

Division Chengdu Second Branch

Agricultural Bank of China Co., Ltd. 22872501040020010 43,153.14 Special account for raising funds

Chengdu Chengxi Branch

China Merchants Bank Chengdu Branch 128908624410501 127,627.01 Special account for raising funds

Total — 343,960.99

3. The actual use of the funds raised in the current year

(1) The use of funds for investment projects (hereinafter referred to as "fundraising projects").

After deducting the issuance expenses, the funds raised by the company's initial public offering will be used for three projects: UAV system development and industrialization projects, technical research and R&D capacity improvement projects, and supplementary working capital. As of December 31, 2024, the use of the company's raised funds is detailed in the attached table "Comparison Table of the Use of Raised Funds".

(2) The advance investment and replacement of the raised funds investment projects

During the reporting period, the company did not have the advance investment and replacement of raised funds investment projects.

(3) Temporarily replenish liquidity with idle raised funds

During the reporting period, the company did not use idle raised funds to temporarily replenish liquidity.

(4) Cash management of idle raised funds and investment in related products

During the reporting period, the company did not carry out cash management of idle raised funds and invest in related products.

(5) Permanently replenishing working capital or repaying bank loans with over-raised funds.

During the reporting period, the company did not use over-raised funds to permanently replenish liquidity or repay bank loans

(6) The use of over-raised funds for projects under construction and new projects

During the reporting period, the company did not over-raise funds for projects under construction and new projects.

(vii) Use of surplus funds raised

During the reporting period, the company did not use the surplus funds of fund-raising projects for other fund-raising projects or non-fund-raising projects.

AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. Special report on the deposit and actual use of raised funds

(8) Other circumstances regarding the use of raised funds.

On December 25, 2024, the company held the 25th meeting of the 5th board of directors and the 13th meeting of the 5th board of supervisors, and deliberated and passed the "Proposal on the Extension of Some Fund-raising Projects", and agreed to postpone the date of the "UAV system development and industrialization project" and "technical research and R&D capability improvement project" in the fund-raising project to December 2027. For details, please refer to the "Announcement of AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. on the Postponement of Some Fundraising and Investment Projects" (Announcement No.: 2024-041) disclosed by the Company on the website of the Shanghai Stock Exchange on December 26, 2024.

4. Change the use of funds for investment projects with raised funds

During the reporting period, the company did not change the investment projects of the raised funds.

5. Problems in the use and disclosure of raised funds

The company strictly follows the "Company Law", "Securities Law", "Guidelines for the Supervision of Listed Companies No. 2", and the management of funds raised by listed companies

Regulatory Requirements for the Use (Revised in 2022) "Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange" and "Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation" and other laws and regulations, normative documents and the "Fundraising

The relevant provisions and requirements of the fund management system stipulate the deposit and use of the raised funds, and perform them in a timely, true, accurate and complete manner

There is no illegal use of raised funds in the disclosure of relevant information.

Appendix 1: Table of Use of Funds Raised

Board of Directors of AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd

March 28, 2025

AVIC (Chengdu) Unmanned Aircraft Systems Co., Ltd. Special report on the deposit and actual use of raised funds

Annex 1:

Comparison table of the use of raised funds

Unit: 10,000 yuan

Total funds raised 419,705.72 The total amount of funds raised during the year was 19,830.28

Total amount of funds raised for change of use The total amount of funds raised has been invested 95,772.02

Proportion of the total amount of proceeds raised for repurpose

Changed Raised Funds Adjusted Investment as of the end of the current year Investment as of the end of the period Cumulative investment as of the end of the period Cumulative investment as of the end of the period Investment as of the end of the period Whether the project has reached the feasibility of the project in the current year

Committed investment project (including the total amount of investment promised Total amount of capital Committed investment amount Calculated investment amount and the progress of the committed investment amount (%) (4) Determined usable state Realized to whether it is expected to be heavy

Change) Amount(1) (2) Difference(3)=(2)-(1) =(2)/(1) Status Date Benefit Benefit Large change

Unmanned aerial system development and production No 97,125.00 97,125.00 97,125.00 16,574.83 64,693.68 -32,431.32 66.61 2027.12 Not applicable Not applicable No

Industrialization project

Technical research and R&D capabilities No 46,875.00 46,875.00 46,875.00 3,255.45 11,078.34 -35,796.66 23.63 2027.12 Not applicable Not applicable No

Elevate the project

Replenishment of liquidity No 20,000.00 20,000.00 20,000.00 - 20,000.00 - 100.00 N/A N/A N/A No

Total 164,000.00 164,000.00 164,000.00 19,830.28 95,772.02 -68,227.98

Based on the development trend of UAV technology, the diversified needs of customers and resource allocation, the R&D time and development cycle of existing fund-raising projects need to be extended, so the company will re-examine the fund-raising projects

After comprehensive analysis and careful evaluation, the date of reaching the scheduled usable state of the "UAV System Development and Industrialization Project" and the "Technical Research and R&D Capability Improvement Project" has been postponed

Reasons for not meeting the planned schedule (by specific project) December 2027.

On December 25, 2024, the company held the 25th meeting of the 5th board of directors and the 13th meeting of the 5th board of supervisors, and deliberated and approved the "Proposal on the Extension of Some Fundraising and Investment Projects" and agreed

The date of the scheduled availability of the "UAV System Development and Industrialization Project" and the "Technology Research and R&D Capability Improvement Project" among the fundraising projects will be extended.

Explanation of significant changes in project feasibility Not applicable

Advance investment and replacement of raised funds investment projects are not applicable

Temporary replenishment of liquidity with idle raised funds Not applicable

Cash management of idle raised funds and investment in related products are not applicable

Not applicable to the permanent replenishment of working capital with over-raised funds or repayment of bank loans

The amount and reason for the balance of the proceeds are not applicable

Other uses of raised funds For details, please refer to this report "3. Actual use of raised funds this year (8) Other uses of raised funds"

Note 1: "Total amount of funds invested in the current year" includes the "amount invested in the current year" after the funds raised are received, and the actual amount of the previous investment that has been replaced.

Note 2: "Committed investment amount as of the end of the period" is determined on the basis of the most recent disclosed investment plan of the raised funds.

Note 3: The calculation caliber and calculation method of the "benefits realized in the current year" should be consistent with the calculation caliber and calculation method of the promised benefits

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