Hangzhou Weiguang Electronic Co.Ltd(002801) : Announcement on the progress of using some idle self owned funds for entrusted financial management

Securities code: 002801 securities abbreviation: Hangzhou Weiguang Electronic Co.Ltd(002801) Announcement No.: 2022-004 Hangzhou Weiguang Electronic Co.Ltd(002801)

Announcement on the progress of using some idle self owned funds for entrusted financial management

The company and all members of the board of directors guarantee that the contents of this announcement are true, accurate and complete without false records, misleading statements or major omissions.

Hangzhou Weiguang Electronic Co.Ltd(002801) (hereinafter referred to as “the company”) held the 16th meeting of the Fourth Board of directors on July 16, 2021 and the first extraordinary general meeting of shareholders in 2021 on August 3, 2021, deliberated and approved the proposal on using some idle self owned funds for entrusted financial management, and agreed that the company and its subsidiaries use some idle self owned funds for entrusted financial management, The total amount shall not exceed RMB 1 billion, of which the single purchase of entrusted financial products shall not exceed RMB 100 million. Within this limit, the funds can be used on a rolling basis. The entrusted financial management that the company can carry out is the behavior of entrusting commercial banks, trust companies, asset management companies, securities companies, fund companies, insurance companies and other financial institutions to carry out financial management, including bank financial products, trust plans of trust companies, asset management plans of asset management companies, various products issued by securities companies, fund companies and insurance companies. Authorize the general manager’s office meeting of the company to exercise the investment decision-making power, and the specific matters shall be organized and implemented by the finance department. The validity period and authorization period of the business shall be valid within 12 months from the date of deliberation and approval by the general meeting of shareholders. For details, please refer to securities times, Shanghai Securities News and cninfo (www.cn. Info. Com. CN.) published by the company on July 17, 2021 and August 4, 2021 Announcement on the resolution of the 16th meeting of the Fourth Board of directors (2021-018), announcement on using some idle self owned funds for entrusted financial management (2021-022) and announcement on the resolution of the first extraordinary general meeting of shareholders in 2021 (2021-025).

1、 Basic information of using some idle self owned funds to purchase financial products

Recently, the financial products purchased by the company with some idle self owned funds are announced as follows:

Trustor trustee name product name product category amount (10000 yuan) expected annual collection start date end date

Profit rate (%) relationship

Hang Yin financial has hang Yin Financial Happiness 99 fixed income in February 2022

Limited liability company’s new wallet financial management plan benefit class 1000 can be redeemed at any time from February 2.6 to March 2.14 none

(XQB1801)

Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) international Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) trust · financial fixed income February 2022 may 2022

Trust Co., Ltd. Gongcheng Hongyu No. 1 collective assets and interests 5000 4.4 16 30 No

Si Jin trust plan

Hang Yin financial has hang Yin Financial Happiness 99 fixed income in February 2022

Limited liability company’s new wallet financial management plan benefit class 1000 can be redeemed at any time on February 16-3.2 none

(XQB1801)

Total (10000 yuan)

(I) Hangyin Financial Happiness 99 new wallet financial plan (xqb1801)

1. Investment scope: fixed income assets, including but not limited to all kinds of bonds, deposits, money market financial instruments and other highly liquid assets, bond funds, pledge and buyout repurchases, and other creditor’s rights assets that meet the regulatory requirements.

2. Risk Disclosure: the financial product may have credit risk, market risk, liquidity risk, counterparty risk, information transmission risk, force majeure risk, consignment risk, policy risk, etc.

(II) Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) trust · Financial City Hongyu No. 1 collective fund trust plan

1. Investment scope: the trustee uses the trust property in his own name in accordance with the provisions of the trust contract, and mainly invests the trust funds in various deposits (including certificates of deposit), standardized bonds, bond reverse repurchase, asset-backed securities listed on the stock exchange, credit asset-backed securities, asset-backed notes, money market funds, bond funds Other standardized creditor’s rights assets recognized by laws and regulations or regulatory institutions, as well as fixed income asset management products and trust industry guarantee funds issued by trusts, securities companies, fund management companies, insurance companies, insurance asset management companies, banks, futures companies or their subsidiaries whose investment scope is limited to standardized creditor’s rights assets.

2. Investment restrictions: (1) investment in fixed income varieties shall not be less than 80%. (2) Trust funds shall not be directly or indirectly invested in stocks, QDII products and high-risk derivatives, including but not limited to stock index futures, stock futures, stock index options, stock options, etc. (3) It is prohibited to invest in credit bonds with debt rating and subject (or guarantee subject) rating lower than AA (excluding AA) (if there are different ratings, it can be selected according to which one); Except short-term financing bonds, asset-backed securities and asset-backed notes. (4) The subject rating of short-term financing bonds is above AA (inclusive) and the debt rating is above A-1 (inclusive).

3. Risk Disclosure: in the process of investment management and application of trust property, there are market risk, interest rate risk, purchasing power risk, credit risk, management risk, custodian risk, operational risk, liquidity risk, early termination risk, investment risk, specific valuation method risk, legal policy risk, net value fluctuation risk, uneven sharing of trust property loss risk Tax risk and other risks.

2、 Basic information of China Construction Investment Trust Anquan No. 544 financial product entering the extension period

February 21, 2022, The company received the report on major events of China construction investment trust · Anquan No. 544 ( Yango Group Co.Ltd(000671) Hangzhou) collective fund trust plan sent by China Construction Investment Trust Co., Ltd. (hereinafter referred to as “China Construction Investment Trust”): “as of the reporting date, the counterparty of the trust plan failed to fulfill the repayment obligation on time and in full, and the trust plan could not be distributed in accordance with the contract.

According to Article 5.3 of the trust contract, due to the failure of the counterparty or guarantor to perform the debts in full and on time or other reasons, the trust property fails to be converted into sufficient cash for the distribution of corresponding trust interests on the expiration date of the expected operation period of the trust fund, and the trust plan enters the expected extension period, which is expected to be 6 months, The operation period of trust funds corresponding to all surviving trust units (including trust units that have not yet expired) expires at the same time and enters the expected extension period at the same time. Accordingly, the trust plan officially enters the extension period from February 21, 2022 to August 21, 2022. After the trust plan enters the extension period, the expected rate of return of all beneficiaries will be increased by 1% per year compared with the original contract. For the recovered distributable cash, the trustee will distribute the trust interests in the order of “principal first and then income.”

The details of the financial product are as follows:

1. Product Name: China Construction Investment Trust Anquan No. 544 ( Yango Group Co.Ltd(000671) Hangzhou) collective fund trust plan 2. Trust Scale: 365 million yuan

3. Subscription amount: RMB 50 million

4. Product type: fixed income

5. Trustee: China Construction Investment Trust Co., Ltd

6. Client and beneficiary: Hangzhou Weiguang Electronic Co.Ltd(002801)

7. Borrower: Hangzhou Biguang Real Estate Development Co., Ltd

8. Co payer: Bengbu Guangxu Real Estate Development Co., Ltd

9. Mortgagor: Bengbu Guangxu Real Estate Development Co., Ltd., or other entities legally owned and entitled to dispose of the collateral

10. Pledgor: Anhui Yangsheng Guangcheng Real Estate Co., Ltd

11. Guarantor: Yango Group Co.Ltd(000671)

12. Custodian: China Merchants Bank Co.Ltd(600036) Hefei Branch

13. Financial management period: originally 18 months, and the extension period is expected to be 6 months

14. Product value date: August 21, 2020

15. Product maturity date: originally February 21, 2022, now it is expected to be August 21, 2022

16. Expected annualized rate of return: the expected rate of return of the original contract is 7.60% / year, and the expected rate of return of the extended period is 1% higher than that of the original contract. For the recovered distributable cash, the trustee will distribute the trust interests in the order of “principal first and then income”

17. Source of purchase funds: self owned funds

18. Description of association relationship: the company has no association relationship with China Construction Investment Trust Co., Ltd

19. Investment scope: the trust fund is used to issue trust loans to the borrower, and the loan fund is used for the development and construction of plot 544c0502-r21 / B1 / b2-52, Santang unit, Gongshu District, Hangzhou. The borrower and the co payer shall jointly bear the responsibility and obligation to repay the principal and interest of the trust loan according to the transaction documents. When the trust property is idle, it can be used for high liquidity and low-risk financial products such as investment bank deposits (including interbank deposits), bank financial products, money market products (including central bank bills, treasury bonds, monetary funds, etc.) and cash management trust products.

20. Credit enhancement measures

In order to ensure the realization of the purpose of the trust plan and the safety of the trust property, the trust plan adopts the following credit enhancement measures:

(1) Guarantee: the guarantor Yango Group Co.Ltd(000671) provides unconditional and irrevocable joint and several liability guarantee, which shall be subject to the guarantee contract No. zjtx (2020) Cheng Erji No. 005-04;

(2) Mortgage guarantee: the mortgagor Bengbu Guangxu Real Estate Development Co., Ltd. provides mortgage guarantee with the land use right of Wan (2019) Bengbu real estate property right No. 0044462 (with an area of 59778.38 square meters), which shall be subject to the mortgage contract numbered zjtx (2020) chengerji No. 005-02; (3) Right pledge guarantee: the pledgor Anhui Yangsheng Guangcheng Real Estate Co., Ltd. provides pledge guarantee with 100% equity of its wholly-owned subsidiary Bengbu Guangxu Real Estate Development Co., Ltd., which shall be subject to the provisions of the right pledge contract numbered Zhongjian investment letter (2020) chengerji No. 005-03.

The guarantee scope of the above guarantee, mortgage guarantee and right pledge guarantee includes but is not limited to the principal of the principal creditor’s right of RMB 365 million, interest (including compound interest and penalty interest), liquidated damages, compensation, compensation, and other payments payable by Hangzhou Biguang Real Estate Development Co., Ltd. to China Construction Investment Trust (including but not limited to value-added tax, handling charges, telecommunications fees, miscellaneous fees, etc.) Expenses incurred by China construction investment trust in realizing its creditor’s rights and security rights (including but not limited to litigation fees, arbitration fees, property preservation fees, travel expenses, execution fees, evaluation fees, auction fees, service fees, announcement fees, lawyer fees and expenses incurred in providing guarantee for litigation preservation applications (including but not limited to property preservation liability insurance premiums), etc.).

21. Trust plan control measures

In order to increase the control over the use of trust property, the trust plan adopts the following control measures:

(1) Precipitation measures for sales collection: the mortgagor shall deposit the sales collection funds of the mortgaged project in accordance with the transaction documents.

(2) Fund supervision measures: the trustee entrusts [ China Merchants Bank Co.Ltd(600036) Hefei Branch] as the supervision Bank of the trust plan to supervise the borrower’s use of loan funds.

22. Risk Disclosure

(1) General risks: expected extension risk, policy risk, interest rate risk, market risk, credit risk, liquidity risk, realization risk of collateral / pledge, income distribution risk caused by classified and phased issuance, early termination and extension risk, management risk, operation risk, tax risk, compliance risk and other risks.

(2) Special risks: the risk of project commencement and operation, the risk of real estate property right registration, the risk of agreeing to release the mortgage or sell (pre-sale) of the collateral, the risk that the collateral disclosed in the trust documents has not been fully mortgaged or adjusted, the risk of mortgage of construction in progress (if applicable), the risk of supervision of sales return funds and other special risks.

23. Other notes: the last distribution of trust income of the trust product was on December 15, 2021. As of the date of this announcement, the company had received a total of 5.795 million yuan of trust income, actually received 5.0772 million yuan of trust income, and had not received 717800 yuan of trust income.

24. The company attaches great importance to it and has actively communicated with China construction investment trust, requiring China construction investment trust to strictly urge the counterparty of the trust plan to fulfill the repayment obligation in accordance with the relevant provisions of the contract, and take necessary legal measures in time to safeguard the legitimate rights and interests of investors. Subsequently, the company will timely perform the obligation of information disclosure according to the progress of capital return.

3、 Financial risk control measures

For the possible risks of entrusted financial management, the company takes the following measures:

1. The company has formulated the foreign investment management system and venture capital management system, which stipulate the investment decision-making and approval procedures, responsible departments and persons, information disclosure and internal information report, implementation, inspection and supervision, and standardize the company’s investment behavior.

2. Strictly implement relevant systems. The general manager is responsible for coordinating and organizing relevant departments to screen financial products and make necessary due diligence. The general manager’s office meeting is for approval. The general manager of the company signs relevant contract documents within the investment limit. The financial department organizes the implementation and timely analyzes and tracks the investment direction and project progress of the purchased financial products, If the assessment finds that there are risk factors that may affect the safety of the company’s funds, corresponding preservation measures will be taken in time to control the investment risk.

3. The company and its subsidiaries choose qualified professional wealth management machines with good credit and financial conditions, no bad credit records and strong profitability

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