Fibocom to Deploy Up to RMB500.00 Million Idle IPO Proceeds for 12-Month Working-Capital Boost

Bulletin Express04-23

Fibocom Wireless Inc. announced that its board approved the temporary use of idle funds from its October 2025 H-share global offering to shore up near-term working capital, mainly to secure memory-chip inventory amid rising prices and supply shortages.

Key Transaction Details • Size and Source of Funds: Up to RMB500.00 million will be drawn from net proceeds originally earmarked for 2028–2029 R&D activities. • Duration: The funds may be deployed for no more than 12 months from the 23 April 2026 board resolution. • Replenishment Commitment: All amounts will be returned to the designated R&D projects before the end of the utilization period or earlier if project funding needs accelerate.

IPO Proceeds Snapshot (as of 31 March 2026) • Total net proceeds: RMB2.56 billion • Cumulative utilization: RMB513.87 million • Unutilized balance: RMB2.05 billion

Allocation Progress 1. R&D: RMB59.18 million used; RMB1.35 billion unutilized (including RMB640.51 million scheduled for 2028–2029). 2. Shenzhen manufacturing facility: RMB36.36 million used; RMB348.06 million remaining. 3. Bank-loan repayment: RMB155.97 million used; RMB100.31 million remaining. 4. Strategic investments/acquisitions: RMB20.00 million used; RMB236.28 million remaining. 5. General working capital: RMB242.35 million used; RMB13.93 million remaining.

Rationale Management cited heightened raw-material costs and continued component shortages, necessitating larger inventory buffers to maintain production schedules. Utilizing idle IPO proceeds is expected to lower financing costs versus external short-term borrowing.

Impact Assessment The board stated that the move will not alter the original deployment timetable of IPO proceeds for 2025–2029 and will not affect normal operations. Remaining funds will continue to earn interest in short-term bank deposits until required for planned projects.

Governance The decision was made by the board on 23 April 2026. Fibocom will monitor fund usage and disclose any changes in accordance with Hong Kong listing requirements.

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