Guangdong Yangshan Precision Manufacturing Co., Ltd. Special Report on the Use of Previous Raised Funds
I. Situation of Previous Raised Funds (I) Amount of Funds Actually Raised and Time of Arrival Approved by the China Securities Regulatory Commission's "Approval for Guangdong Yangshan Precision Manufacturing Co., Ltd. to Publicly Issue Shares" (Zhengjianxuke [2022] No. 1046), the company publicly issued 26,983,334 RMB common shares (A shares) in June 2022. Each share has a par value of RMB 1, and the issue price is RMB 19.25. The total amount of funds raised was RMB 519,429,179.50. After deducting non-tax issuance expenses of RMB 70,642,944.54, the net amount of funds actually raised was RMB 448,786,234.96. These funds arrived in June 2022. The arrival of these funds was verified by the "Capital Verification Report" (Dahua Yanzhi [2022] No. 000377) issued by Dahua Certified Public Accountants (Special General Partnership). The company has implemented a special account deposit management system for the raised funds.
(II) Situation of Raised Funds Deposit and Management In accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Supervision Rules for Listed Company Raised Funds," the "Shenzhen Stock Exchange Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," as well as the company's actual situation, and adhering to the principles of standardization, safety, efficiency, and transparency, the company has formulated the "Raised Funds Management System." This system clearly stipulates the deposit, approval, use, management, and supervision of raised funds, ensuring their standardized use at the institutional level.
On July 12, 2022, the company signed "Tripartite Supervision Agreements for Raised Funds" with the following banks: Bank of China Agricultural Bank of China Co., Ltd. Shunde Beijiao Sub-branch, China Merchants Bank Co., Ltd. Foshan Beijiao Sub-branch, Bank of Ma'anshan Co., Ltd. Garden Branch, and Guangdong Yangshan Rural Commercial Bank Co., Ltd. and Everbright Securities Co., Ltd. (hereinafter referred to as "Everbright Securities"), to open special accounts for raised funds. On July 18, 2022, the company signed "Tripartite Supervision Agreements for Raised Funds" with Guangdong Shunde Rural Commercial Bank Co., Ltd. Beijiao Sub-branch and Everbright Securities Co., Ltd. to open special accounts for raised funds.
The aforementioned "Tripartite Supervision Agreements for Raised Funds" do not have significant differences from the template tripartite supervision agreements of the Shenzhen Stock Exchange. The use of the company's raised funds and the performance of the "Tripartite Supervision Agreements for Raised Funds" do not violate any relevant laws, regulations, or agreement provisions.
As of December 31, 2025, the situation of raised funds deposit is as follows:
| Bank Name | Bank Account | Initial Deposit Amount | Balance | Account Status |
|---|---|---|---|---|
| Agricultural Bank of China Co., Ltd. Shunde Beijiao Sub-branch | 44477001040040067 | 26,033,460.20 | - | Active, Closed |
| China Merchants Bank Co., Ltd. Foshan Beijiao Sub-branch | 757900830310128 | 139,043,100.00 | - | Active, Closed |
| Guangdong Shunde Rural Commercial Bank Co., Ltd. Beijiao Sub-branch | 801101001115649307 | 106,452,300.00 | - | Active, Closed |
| Bank of Ma'anshan Co., Ltd. Garden Branch | 225005538211000006 | 113,290,834.96 | - | Active, Closed |
| Guangdong Yangshan Rural Commercial Bank Co., Ltd. | 80020000018400705 | 90,000,000.00 | - | Active, Closed |
| Total | 474,819,695.16 |