Shenwan Hongyuan Securities Underwriting and Sponsoring Co., Ltd

About SUPCON Technology Co., Ltd

Verification opinions on the deposit and actual use of raised funds in 2024

Shenwan Hongyuan Securities Underwriting and Sponsor Co., Ltd. (hereinafter referred to as the "Sponsor"), as the sponsor of the initial public offering of shares and listing on the Science and Technology Innovation Board of ZKTeco Technology Co., Ltd. (hereinafter referred to as "ZKTeco", "the Company"), in accordance with the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Funds Raised 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. The deposit and use of the raised funds of ZKTeco in 2024 have been carefully verified, and the verification opinions are as follows:

First, the basic situation of the funds raised

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

Approved by the China Securities Regulatory Commission (CSRC) on the Approval of the Registration of the Initial Public Offering of Shares of Zhejiang Zhongkong Technology Co., Ltd. (Zheng Jian Xu Xu [2020] No. 2448), the Company issued 49.13 million RMB ordinary shares to the public by way of initial public offering at an issue price of RMB 35.73 per share, raising a total of RMB 1,755,414,900, after deducting various issuance expenses (excluding VAT) of RMB 118,088,800. The actual net amount of funds raised was RMB163,732.61 million. Tianjian Certified Public Accountants (Special General Partnership) verified the funds in place for the company's initial public offering of shares, and in 2020

On November 17, the "Capital Verification Report" (Tianjian Yan (2020) No. 508) was issued.

(2) The use and balance of the raised funds

In 2024, the company actually used 51.3238 million yuan of raised funds. As of December 31, 2024,

The balance of the company's raised funds was 63.4164 million yuan, of which the balance of bank deposits deposited in the special account for raised funds was 63.4164 million yuan (including the net amount of accumulated bank deposit interest received after deducting bank charges, etc.), and the balance of unredeemed wealth management products purchased with raised funds was 0.0 million yuan.

Second, the management of raised funds

(1) The management of the raised funds

In order to standardize the management and use of the company's raised funds and protect the rights and interests of investors, in accordance with the provisions of relevant laws, regulations and normative documents such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, 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, Implement a special account storage system for the raised funds, and supervise the deposit, use, project implementation and management, change and use of investment projects

rules. On November 5, 2020, the company and the Industrial and Commercial Bank of China Co., Ltd. Hangzhou Qianjiang respectively

The sub-branch, Bank of Communications Co., Ltd. Hangzhou Chengzhan Branch, Bank of Ningbo Co., Ltd. Hangzhou Branch, Zheshang Bank Co., Ltd. Hangzhou Branch, and Bank of China Co., Ltd. Hangzhou Binjiang Sub-branch signed the "Tripartite Supervision Agreement on Raised Funds"; On November 5, 2020, the company, together with its subsidiary Zhejiang SUPCON Sensing Technology Co., Ltd. and the sponsor Shenwan Hongyuan Securities Underwriting and Sponsor Co., Ltd., signed the "Four-Party Supervision Agreement on Raising Funds" with Hangzhou Xihu Branch of China Construction Bank Corporation, and together with its subsidiary Zhejiang SUPCON Fluid Technology Co., Ltd. and the sponsor Shenwan Hongyuan Securities Underwriting and Sponsor Co., Ltd., on November 5, 2020, signed the " On May 18, 2021, the Quadripartite Supervision Agreement on Raising Funds, together with its subsidiary Zhejiang Zhongkong Park Intelligent Butler Technology Co., Ltd. and the sponsor Shenwan Hongyuan Securities Underwriting and Sponsor Co., Ltd., signed the "Four-Party Supervision Agreement" with Bank of China Co., Ltd. Hangzhou Binjiang Branch, clarifying the rights and obligations of all parties. There is no material difference between the above agreement and the Tripartite Supervision Agreement on the Storage of Raised Funds in Special Accounts (Template) of the Shanghai Stock Exchange, and the Company has strictly complied with the use of the raised funds.

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

As of December 31, 2024, the storage of the special account for raised funds is as follows:

Unit: RMB/10,000 yuan

Account Entity: Opening Bank, Bank Account Number, Balance of Raised Funds

concentrate

Industrial and Commercial Bank of China Co., Ltd. 1202021429900575642 216.29 Current

Hangzhou Qianjiang Branch

Industrial and Commercial Bank of China Co., Ltd. 1202021429900575766 0.00 sold

Hangzhou Qianjiang Branch of the Central Control Technology Company

Bank of Communications Co., Ltd. 331065970018678678690 0.00 Sold

Hangzhou Binjiang Sub-branch[Note 1] households

Bank of Ningbo Co., Ltd. 71130122000161920 0.00 sold

Hangzhou Chengbei Branch

Account Entity: Opening Bank, Bank Account Number, Balance of Raised Funds

concentrate

Zheshang Bank Co., Ltd. 3310010010120100943065 0.00 Sold

Hangzhou Branch

Bank of China Limited 350678726985 0.00 sold

Hangzhou Binjiang Branch

China Construction Bank Co., Ltd. 33050161963509999888 2,761.81 Current

Company Hangzhou West Lake Branch

Agricultural Bank of China Co., Ltd

The company's Zhejiang Free Trade Zone Hangzhou High 19045301040029570 1,928.91 current account

New Sub-branch[Note 2]

Zhejiang Zhongkong Chuan China Construction Bank Co., Ltd

Sensing Technology Co., Ltd. Hangzhou West Lake Branch 33050161963509999666 0.72 Current

firm

Zhejiang Zhongkong Flow Agricultural Bank of China Co., Ltd

Body Technology Co., Ltd. Zhejiang Free Trade Zone Hangzhou High 19045301040029505 1,433.91 Current

Company New Sub-branch[Note 2]

Zhejiang Central Control Park

District Smart Butler Bank of China Limited 361079556828 0.00 Current

Science and Technology Co., Ltd. Hangzhou Binjiang Branch

manage

Total - - 6,341.64

[Note 1] It was formerly Bank of Communications Co., Ltd. Hangzhou Chengzhan Branch;

[Note 2] Formerly Agricultural Bank of China Co., Ltd. Hangzhou High-tech Branch.

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

(1) The use of raised funds

In 2024, the use of the company's raised funds is detailed in Appendix 1: Comparison Table of the Use of Raised Funds.

(2) Advance investment and replacement of raised funds

In 2024, the company did not have a replacement situation with self-raised funds pre-invested to raise funds.

(3) The use of idle raised funds to temporarily supplement liquidity

In 2024, the company did not use idle raised funds to temporarily replenish liquidity.

(4) Idle raised funds for cash management

On November 22, 2023, the 25th meeting of the 5th board of directors and the 21st meeting of the 5th board of supervisors of the company deliberated and passed the "Proposal on Using Part of the Temporarily Idle Raised Funds for Cash Management".

It is agreed that the Company will use the temporarily idle funds raised from the initial public offering of shares of no more than RMB 100 million and the funds raised from the initial public offering of Global Depositary Receipts of no more than USD 300 million (or equivalent RMB) for cash management on the premise of ensuring that the implementation of the investment projects of the raised funds will not be affected and the safety of the raised funds will be ensured, so as to purchase wealth management products with high security and good liquidity. Valid for 12 months from the date of approval by the Board. Within the scope of the aforesaid quota and period, the funds can be used on a rolling basis.

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 deliberated and passed the "Proposal on Using Part of the Temporarily Idle Raised Funds for Cash Management", and agreed that the company will not affect the implementation of the investment projects of the raised funds and ensure the safety of the raised funds on the premise of ensuring that the implementation of the investment projects of the raised funds will not be affected. The funds raised from the initial public offering of shares not exceeding RMB50 million and the temporarily idle proceeds raised from the initial public offering of GDRs not exceeding US$300 million (or its equivalent in RMB) are used for cash management for the purchase of wealth management products with high security and good liquidity. It is valid for 12 months from the date of approval by the Board of Directors. Within the scope of the aforesaid quota and period, the funds can be used on a rolling basis.

The company did not use idle raised funds to purchase wealth management from January 1 to December 31, 2024.

(5) The use of over-raised funds to permanently replenish working capital or repay bank loans

In 2024, 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 (including the acquisition of assets, etc.).

In FY2024, the Company will not use over-raised funds for projects under construction and new projects (including asset acquisitions, etc.).

(7) The use of surplus raised funds

In 2024, the company's fund-raising projects "R&D and Industrialization Project of a New Generation Control System", "R&D and Industrialization of Intelligent Industrial Software", "R&D and Industrialization of Intelligent Manufacturing Cutting-edge Technology" and "Construction Project of Automated Butler 5S One-stop Service Platform" will have a total of 1.5154 million yuan of raised funds, which have permanently replenished working capital, and the relevant raised funds account has been cancelled.

(8) Other circumstances regarding the use of raised funds

In 2024, the company did not have any other circumstances regarding the use of the raised funds.

As of December 31, 2024, the company's raised funds investment projects have not changed, and the company has raised funds

There is no external transfer or replacement of gold investment projects.

5. Problems in the use and disclosure of raised funds

As of December 31, 2024, the company has complied with the provisions of relevant laws, regulations, normative documents and

The use of raised funds is required, and the deposit and use of raised funds are disclosed in a timely, true, accurate and complete manner, and there are no violations in the use and disclosure of raised funds.

6. The assurance report issued by the accounting firm on the deposit and use of the company's raised funds in 2024

Concluding observations

The accounting firm believes that the 2024 Special Report on the Annual Deposit and Use of Raised Funds prepared by the management of ZKTeco complies with the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies (Revised in 2022) (CSRC Announcement [2022] No. 15) and the Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation (Revised in December 2023) (SSF [2023] 194). It truthfully reflects the actual deposit and use of the funds raised by ZKTeco in 2024.

7. The main verification work of the sponsor institution

The sponsor representative verified the deposit and use of the company's raised funds and the implementation of the investment projects of the raised funds through various methods such as data review, on-site inspection, interview and communication. The main verification methods include checking the bank statements, financial vouchers, company announcements and other relevant reports and documents of the raised funds, and communicating with the relevant personnel of the company.

8. Verification opinions of the sponsor institution

After verification, the sponsor believes that the deposit and actual use of the company's raised funds in 2024 comply with the provisions of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies, and the Guidelines for the Application of Self-Regulatory Rules for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized OperationThere is no illegal use

The circumstances in which the funds are raised.

(No text below)

Schedule 1:

Comparison table of the use of raised funds

(Year 2024)

Unit: RMB/10,000 yuan

Total funds raised 163,732.61 The total amount of funds raised during the year was 5,132.38

The total amount of funds raised for repurpose is 0

A total of 163,565.78 funds have been invested

Percentage of total proceeds to be repurposed 0%

Committed investment projects

Whether it has been committed by the end of the period As of the end of the period Accumulated as of the end of the period The investment as of the end of the period The project has reached the current year Whether the project is feasible

Committed Investment Change Raised Commitment Adjusted Commitment Amount Invested in the Year Cumulative Investment Amount and Commitment Progress (%) Expected to be used Realized to Expected Distribution

Project (including the total amount of investment Total investment Total amount of investment Amount of investment Amount of investment Difference of investment amount (4) = (2)/(1) Status date Benefit Significant change in benefit

(1) (3) = (2)-(1).

(2)

A new generation of control

System Research No 1,042.10[Note] June 2023 246,760 Yes No

Development and Industry 43,558.98 43,558.98 43,558.98 0.00 44,601.08 102.39

.59

project

Intelligent chemical industry

Business Software Research No 1,060.17[Note] June 2023 35,982. Yes No

Development and Industry 26,050.22 26,050.22 26,050.22 0.00 27,110.39 104.07

22

project

The annual output is 200,000

Taiwan High Precision No June 2025 No

Pressure Transmitter 10,934.27 10,934.27 10,934.27 1,825.29 8,898.29 -2,035.98 81.38 / /

project

The annual output is 100,000

Sets/sets of smart No June 2025 No

Control valve item 19,303.83 19,303.83 19,303.83 3,155.54 17,046.67 -2,257.16 88.31 / /

eye

Automated tubes

Home 5S one stop

Formula service flat No 36,689.20 36,689.20 36,689.20 0.00 38,464.10 1,774.90[Note] 104.84 June 2024 N/A N/A No

Taiwan construction project

eye

Smart Manufacturing December 2022

Frontier Technology No 10,124.46 10,124.46 10,124.46 0.00 10,183.70 59.24[Note] 100.59 months N/A N/A No

R&D projects

Supplementary Mobility No 38.36[Note] Not applicable Not applicable Not applicable No

Fund items 14,000.00 14,000.00 14,000.00 0.00 14,038.36 100.27

Savings raised

Replenishment N/A 151.54 151.54 N/A N/A

Liquidity

Subtotal / 160,660.96 160,660.96 160,660.96 5,132.38 160,494.13 Not applicable / /

Over-raised funds are invested

Share buybacks No N/A N/A N/A 0.00 3,071.65 N/A N/A N/A / / No

Total / 160,660.96 160,660.96 160,660.96 5,132.38 163,565.78 / /

Reasons for not meeting the planned schedule (by specific project) are not applicable

Explanation of significant changes in project feasibility Not applicable

Advance investment and replacement of raised funds in investment projects In 2024, the company did not have the replacement of self-raised funds in advance

Temporary replenishment of liquidity with idle raised funds None

On November 22, 2023, the company held the 25th meeting of the 5th board of directors and the 21st meeting of the 5th board of supervisors of the company

After the "Proposal on the Use of Part of the Temporarily Idle Raised Funds for Cash Management", it was agreed that the company would ensure that it would not affect the implementation of the raised funds investment projects.

On the premise of ensuring the safety of the funds raised, the funds raised by the initial public offering of shares shall not exceed RMB 100 million and not more than US$300 million (or etc.).

value of RMB) initial public offering of GDRs to raise funds for cash management, for the purchase of high-security, flow

Dynamic financial products. Valid for 12 months from the date of approval by the Board. Within the aforementioned quota and period, the funds can be rolled over in a circular manner

Cash management of idle funds raised and investment in related products.

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, and the "About the Use" was deliberated and approved

Proposal on cash management of part of the temporarily idle raised funds", agreeing that the company will ensure that it will not affect the implementation of the investment project of the raised funds and ensure the raised funds

Under the premise of safety, the use of funds raised by an initial public offering of shares not exceeding RMB 50 million and not exceeding USD 300 million (or its equivalent

Currency) of the initial public offering of Global Depositary Receipts (GDRs) for cash management, for purchase of safe and liquid funds

wealth management products. Valid for 12 months from the date of approval by the Board. Within the scope of the aforesaid quota and period, the funds can be used on a rolling basis.

At the end of the reporting period, the Company's use of temporarily idle raised funds for cash management is detailed in details of this report (4).

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

The amount of the balance of the funds raised and the reasons for its formation are detailed in the third (seventh) of this report.

Other uses of proceeds Not applicable

Note: The difference between the actual investment amount and the committed investment amount of the supplementary working capital project, the R&D project of cutting-edge technology of intelligent manufacturing, the construction project of the 5S one-stop service platform of automation housekeeper, the R&D and industrialization project of intelligent industrial software and the R&D and industrialization project of the new generation control system is the net amount of bank deposit interest income deducting handling fees in the special account for raising funds of the relevant project.