Guotai Junan Securities Co., Ltd.
Regarding Xiangtan Yongda Machinery Manufacturing Co., Ltd.
Use of Bank Bills to Pay for Funds Required for Investment Projects Funded by Raised Capital
and the Verification Opinion on the Equivalent Replacement of Raised Funds
Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "Sponsor") is the sponsor for the continuous supervision of the initial public offering and listing of Xiangtan Yongda Machinery Manufacturing Co., Ltd. (hereinafter referred to as "Yongda Shares," "Company," or "This Company"). In accordance with the "Administrative Measures for the Sponsorship of Securities Issuance and Listing" and the "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange—Standardized Operations of Main Board Listed Companies" and other relevant regulations, we have conducted a verification regarding the Company's use of bank bills to pay for funds required for investment projects funded by raised capital and the equivalent replacement of raised funds. The specific situation is as follows:
I. Basic Situation of Raised Funds
According to the approval from the China Securities Regulatory Commission regarding the initial public offering registration of Xiangtan Yongda Machinery Manufacturing Co., Ltd. (Zheng Jian Xu Ke [2023] No. 1854), the Company will publicly issue 60,000,000 shares of ordinary shares (A shares) at a price of RMB 12.05 per share on the Shenzhen Stock Exchange in December 2023, raising a total of RMB 723,000,000.00. After deducting the issuance expenses of RMB 86,805,438.47 (excluding the deductible input VAT of RMB 5,198,649.94), the net amount of raised funds is RMB 636,194,561.53.
The funds from this fundraising were received on December 6, 2023, and the receipt of these funds has been verified by Tianzhi International Accounting Firm (Special General Partnership), which issued the verification report Tian Zhi Ye Zi [2023] No. 51912 on December 6, 2023.