Caitong Securities Co., Ltd. (hereinafter referred to as "Caitong Securities" or "the Sponsor") is the sponsor for Zhejiang Bofei Electric Co., Ltd. (hereinafter referred to as "Bofei Electric" or "the Company") regarding the issuance of shares to specific targets in 2025. In accordance with relevant laws, regulations, and normative documents, Caitong Securities has conducted a review of Bofei Electric's use of part of its idle raised funds for cash management. The specific review details are as follows:
I. Basic Situation of Raised Funds
According to the China Securities Regulatory Commission's approval (Zheng Jian Xu Ke [2025] No. 2432) for Zhejiang Bofei Electric Co., Ltd. to issue shares to specific targets, the Company issued 5,166,184 shares of ordinary shares (A shares) at a price of RMB 27.68 per share, raising a total of RMB 142,999,973.12. After deducting related issuance costs, the actual net amount raised is RMB 137,558,822.86. The raised funds have been verified by Zhongxi CPA (Special General Partnership), which issued a "Verification Report" (Zhongxi Yan Zi 2025Y00097). The Company has stored the raised funds in a dedicated account and signed a "Tripartite Supervision Agreement" with the dedicated account bank and the sponsor.
II. Investment Project Situation of Raised Funds
According to the relevant content of the "Prospectus for the Issuance of Shares to Specific Targets by Zhejiang Bofei Electric Co., Ltd. in 2025" and the actual amount of raised funds, the net amount after deducting related issuance costs will be used for the following projects:
| No. | Project Name | Total Investment | Amount of Raised Funds to be Invested |
|---|---|---|---|
| 1 | Annual Production of 70,000 Tons of Motor Insulation Materials Project | 263,102.40 | 137,558.82 |
| Total | 263,102.40 | 137,558.82 |
Due to the construction period required for the investment projects, there is currently a situation where part of the raised funds is temporarily idle. To improve the efficiency of idle raised funds, the Company plans to use part of the idle raised funds for cash management without affecting the construction progress of the investment projects and the normal use of raised funds, while effectively controlling risks.
III. Situation of Using Part of the Temporarily Idle Raised Funds for Cash Management
(1) Purpose of Cash Management
To improve fund efficiency, the cash management of idle raised funds will not affect the construction of investment projects, which is beneficial for reducing financial costs and increasing cash income for the Company and shareholders, thereby obtaining good investment returns.
(2) Cash Management Limit and Duration
The Company will use no more than RMB 80 million (inclusive) of temporarily idle raised funds for cash management, with a validity period of 12 months from the date of approval by the Board of Directors. This limit can be used on a rolling basis within the cash management period.