Mansion Home Furnishing Technology Co., Ltd. Announcement on Using Part of Idle Raised Funds for Temporary Supplement of Working Capital

Securities Code: 603313 Securities Abbreviation: Dream Lily Announcement No.: 2026-012

Dream Lily Home Technology Co., Ltd.

Announcement on the Temporary Use of Part of Idle Raised Funds to Supplement Working Capital

The Board of Directors and all directors of the Company guarantee that the content of this announcement does not contain any false records, misleading statements, or major omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of its contents.

Important Content Reminder:

● Amount of temporary supplementary raised funds: not exceeding RMB 50 million

● Supplementary period: not exceeding 12 months from the date of approval by the Board of Directors on March 26, 2026

I. Basic Information on Raised Funds

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II. Basic Information on Investment Projects of Raised Funds

Dream Lily Home Technology Co., Ltd. (hereinafter referred to as the “Company”) convened the 16th meeting of the 4th Board of Directors on November 24, 2023, to review and approve the proposal on “Adjusting the Actual Amount of Raised Funds Invested in Specific Target Stock Issuance Projects,” agreeing to adjust the actual amount of raised funds invested in this fundraising investment project (hereinafter referred to as the “Investment Project”) based on the actual net amount of raised funds from the issuance of stocks to specific targets, as follows:

Unit: RMB

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Note: The differences from the previous adjustment are due to the deduction of issuance expenses of RMB 10,806,875.30 (excluding tax) and the difference of RMB 4.52 between actual raised funds and planned raised funds.

The Company separately approved the proposal on “Changes and Completion of Some Fundraising Projects and Investment of Remaining Raised Funds into New Projects” at the 4th meeting of the 5th Board of Directors held on December 30, 2025, and at the first extraordinary shareholders meeting of 2026 held on January 16, 2026, agreeing to close the “Intelligent and Information Upgrading and Transformation Project” and use the remaining raised funds from the “Arizona Production Base Expansion Project” after changes (excluding the reserved raised funds of RMB 5.2 million for pending payments for this project, including the temporarily idle raised funds for cash management not yet recovered of RMB 80 million and its expected returns, prior cash management returns, and net bank interest income after deducting bank fees) totaling RMB 154.6776 million (specific amounts subject to the actual balance of the raised funds special account at the time of transfer) for the “East US Factory E-commerce Warehouse Construction Project.” The sponsor has expressed clear agreement on this matter. For specific content, please refer to the announcements disclosed by the Company on December 31, 2025, and January 17, 2026, on the Shanghai Stock Exchange website regarding “Changes and Completion of Some Fundraising Projects and Investment of Remaining Raised Funds into New Projects” (Announcement No.: 2025-083) and “Resolution Announcement of the First Extraordinary Shareholders Meeting of 2026” (Announcement No.: 2026-004).

As of March 24, 2026, the Company’s use of raised funds is as follows:

Unit: RMB ten thousand

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Note 1: The Company approved the proposals on “Company’s Non-Public Stock Issuance Plan,” “Change of Some Fundraising Investment Projects,” and “Completion of Some Fundraising Projects and Use of Remaining Raised Funds for Other Fundraising Projects” at the 50th meeting of the 3rd Board of Directors held on October 27, 2021, and at the 3rd extraordinary shareholders meeting of 2021 held on November 15, 2021, agreeing to invest the remaining raised funds from the 2020 non-public fundraising project Serbia (Phase III) Production Base Construction Project and the remaining raised funds from the completion of the US Production Base Construction Project into the current stock issuance fundraising project for the Arizona Production Base Expansion Project. Previously, the Company had transferred a total of RMB 193.7832 million of the above raised funds to the special account for the Arizona Production Base Expansion Project for the stock issuance to specific targets in 2021 and had invested part of the aforementioned raised funds into the project construction. The amounts in the above table for “Balance of Raised Funds Account,” “Proposed Investment Amount of Raised Funds for East US Factory E-commerce Warehouse Construction Project,” and “Total Proposed Investment Amount of Raised Funds” include the amount of previous raised funds and their net interest, while other data do not include previous raised funds.

Note 2: As of March 24, 2026, the East US Factory E-commerce Warehouse Construction Project has not yet completed the filing approval and the establishment of the raised funds special account, and the raised funds intended for investment have not yet been actually transferred. The amount labeled “Proposed Investment Amount of Raised Funds for East US Factory E-commerce Warehouse Construction Project” in the above table is the intended investment amount as of December 26, 2025, and the specific amount is subject to the actual balance of the raised funds special account at the time of transfer.

Note 3: The Company approved the proposal on “Temporary Use of Part of Idle Raised Funds to Supplement Working Capital” at the 25th meeting of the 4th Board of Directors held on March 27, 2025, agreeing to use no more than RMB 100 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months from the date of approval by the Board of Directors. As of March 24, 2026, the Company has fully returned the aforementioned RMB 100 million of idle raised funds used for temporary working capital to the special account for raised funds.

The Company approved the proposal on “Temporary Use of Part of Idle Raised Funds to Supplement Working Capital” at the 3rd meeting of the 5th Board of Directors held on October 29, 2025, agreeing to use no more than RMB 100 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months from the date of approval by the Board of Directors. During the usage period, the Company will gradually return the aforementioned funds to the raised funds special account based on the investment progress of the fundraising project. As of March 24, 2026, the Company has used RMB 99.4112 million of idle raised funds to temporarily supplement working capital, and the aforementioned funds have not yet been returned.

The Company approved the proposal on “Temporary Use of Part of Idle Raised Funds for Cash Management” at the 2nd meeting of the 5th Board of Directors held on August 25, 2025, agreeing to use no more than RMB 80 million of idle raised funds for cash management, with a usage period not exceeding 12 months from the date of approval by the Board of Directors. As of March 24, 2026, the Company has used RMB 80 million of idle raised funds for cash management.

The “Balance of Raised Funds Account” in the above table does not include temporary working capital supplementation, cash management funds, and the balance of the “Supplementary Working Capital Project” account before account closure.

III. Plan for Temporarily Using Part of Idle Raised Funds to Supplement Working Capital

In line with the Company’s operational development needs, to improve the efficiency of raised fund usage and reduce financial costs, while ensuring the normal progress of the fundraising investment plan, the Company intends to temporarily use no more than RMB 50 million of idle raised funds to supplement working capital, with a usage period not exceeding 12 months from the date of approval by the Board of Directors. During the usage period, the Company will gradually return the aforementioned funds to the raised funds special account based on the investment progress of the fundraising project, ensuring that it does not affect the normal implementation of the fundraising project.

The Company’s temporary use of part of the idle raised funds to supplement the working capital needed for daily operations will not be directly or indirectly used for new stock placements, subscriptions, or for trading in stocks and their derivatives, convertible bonds, etc. The temporary use of part of the idle raised funds to supplement the Company’s working capital is limited to production and operation related to its main business, will not change the purpose of the raised funds, will not affect the normal execution of the fundraising investment plan, and the temporary supplementation will be implemented through the raised funds special account.

IV. Board of Directors’ Review Procedure for the Plan to Temporarily Use Part of Idle Raised Funds to Supplement Working Capital and Whether It Meets Regulatory Requirements

The proposal on “Temporary Use of Part of Idle Raised Funds to Supplement Working Capital” was approved at the 5th meeting of the 5th Board of Directors held on March 26, 2026, with 8 votes in favor, 0 votes against, and 0 abstentions, agreeing to use no more than RMB 50 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months from the date of approval by the Board of Directors. During the usage period, the Company will gradually return the aforementioned funds to the raised funds special account based on the investment progress of the fundraising project. This matter does not need to be submitted for shareholder meeting review.

The above matters comply with the requirements of the “Regulations on the Supervision of Raised Funds by Listed Companies,” “Self-Regulatory Guidelines No. 1 for Listed Companies on the Shanghai Stock Exchange—Standardized Operations,” and other laws, regulations, and normative documents.

V. Special Opinions Explanation

(I) Audit Committee Opinion

The Audit Committee of the Company held its first meeting of 2026 on March 26, 2026, approving the proposal on “Temporary Use of Part of Idle Raised Funds to Supplement Working Capital” with 3 votes in favor, 0 votes against, and 0 abstentions. The Audit Committee believes that the Company’s temporary use of part of the idle raised funds to supplement working capital will improve the efficiency of raised fund usage, will not affect the normal implementation of the Company’s fundraising investment projects, does not involve changing or indirectly changing the purpose of the raised funds, meets the development needs of the Company and the interests of all shareholders, and complies with the relevant provisions of the “Regulations on the Supervision of Raised Funds by Listed Companies,” “Self-Regulatory Guidelines No. 1 for Listed Companies on the Shanghai Stock Exchange—Standardized Operations,” etc. The Committee agrees to use no more than RMB 50 million of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months, and agrees to submit this proposal to the 5th Board of Directors of the Company for review.

(II) Sponsor Opinion

Upon review, the sponsor believes that:

The Company’s temporary use of part of the idle raised funds to supplement working capital has undergone the necessary review procedures, and while ensuring that it does not affect the normal implementation of fundraising projects and the normal progress of the fundraising investment plan, it is beneficial to improve the efficiency of raised fund usage, aligns with the company’s development plan and operational needs, and does not change or indirectly change the direction of the raised funds, nor harm the interests of all shareholders, especially minority shareholders, in accordance with the provisions of the “Stock Listing Rules of the Shanghai Stock Exchange,” “Regulations on the Supervision of Raised Funds by Listed Companies,” “Self-Regulatory Guidelines No. 1 for Listed Companies on the Shanghai Stock Exchange—Standardized Operations,” and “Self-Regulatory Guidelines No. 11 for Listed Companies on the Shanghai Stock Exchange—Continuous Supervision.” The sponsor has no objections to the Company’s temporary use of part of the idle raised funds to supplement working capital.

This announcement is hereby made.

Board of Directors of Dream Lily Home Technology Co., Ltd.

March 26, 2026

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