Your company has been listed for only half a year. When the projects raised funds through IPO are far from being put into production and generating benefits, you have now announced a fixed increase of 700 million yuan, and the construction period of the project is as long as 3 years. Is your company making excuses to raise funds at will? The company frequently raises funds after listing, and the construction period of the projects raised is long. Is it just a pie in the sky to fool investors?

Recorda: Dear investors, thank you for your attention. Regarding your question, we will answer you as follows: 1. The company's financing is carried out according to market changes and the company's development needs. The company has carefully studied and conducted a feasibility analysis on this project. For details, please refer to the company's "Feasibility Analysis Report on the Use of Funds Raised by the Issuance of A-shares to Specific Objects by Suzhou Recorda Connectivity Systems Co., Ltd. in 2022" and other announcements on March 2, 2022. 2. The following are the differences between this fundraising project and the IPO fundraising project: (1) The proposed implementation location of this project is mainly Suzhou, while the implementation location of the IPO fundraising project is Sichuan; (2) This project is mainly for the construction of key parts for new energy vehicles and the Suzhou R&D center, in order to seize the development opportunities of the new energy vehicle industry under the background of the "dual carbon" wave. In addition, according to the expansion strategy of downstream customers, the company must actively expand production to prepare for the rapid growth of customer demand. The IPO fundraising project is mainly for the new capacity of communication connectors. The background and purpose of the implementation of the IPO project are different from this project. 3. Regarding the project construction period, the construction period of this project is 18 months, and the construction period of the IPO fundraising project is 2 years. There is no project with a construction period of 3 years. The company strives to complete each fundraising and investment project with fast implementation, low investment and good benefits. Each fundraising and investment project has been carefully demonstrated and is in line with the development and changes of market demand, which can improve the company's performance and bring better returns to investors. Thank you!