Verification Opinion of Western Securities Co., Ltd. on the Temporary Use of Idle Raised Funds by Great Wall Information Industry Co., Ltd.
Western Securities Co., Ltd. (hereinafter referred to as "Western Securities" or "the Sponsor") is the sponsor for Great Wall Information Industry Co., Ltd. (hereinafter referred to as "Great Wall Information" or "the Company") for its non-public issuance in 2014. In accordance with relevant regulations including the "Administrative Measures for the Sponsorship of Securities Issuance and Listing," "Shenzhen Stock Exchange Listing Rules," "Guidelines for the Sponsorship Work of Listed Companies on the Shenzhen Stock Exchange," "Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies (Guideline No. 2)," and "Guidelines for the Standard Operation of Main Board Listed Companies on the Shenzhen Stock Exchange," Western Securities has conducted a verification of Great Wall Information's plan to temporarily use part of its idle raised funds to supplement working capital. The specific circumstances of the verification are as follows:
1. Basic Situation of the Raised Funds
With the approval of the China Securities Regulatory Commission (CSRC) document [2014]1313, the Company issued 31,847,133 shares to specific investors at a price of RMB 31.4 per share in December 2014, raising a total of RMB 999,999,976.20. After deducting issuance expenses of RMB 20,400,000, the net amount raised was RMB 979,599,976.20. The raised funds were fully received on December 22, 2014, and Tianzhi International Accounting Firm (Special General Partnership) verified the receipt of the funds and issued verification report Tianzhi Yezi [2014]12877. The Company manages the raised funds in a dedicated account as required by relevant regulatory documents.
2. Basic Situation of Investment Projects
According to the resolutions passed at the sixth board of directors' seventh meeting on May 8, 2014, the eighth meeting on June 6, 2014, and the second extraordinary general meeting of shareholders on June 25, 2014, the total amount raised from this non-public issuance does not exceed RMB 1 billion, planned for investment in the following projects: