I. Basic Information on Fundraising
On February 22, 2022, the China Securities Regulatory Commission issued the approval for Shenzhen Kangguan Technology Co., Ltd. (the "Company") to publicly issue no more than 42,487,500 new shares. On March 8, 2022, the Company publicly issued 42,487,500 shares of RMB ordinary shares (A shares) at a subscription price of RMB 48.84 per share, with a par value of RMB 1.00 per share. As of March 14, 2022, the Company raised a total of RMB 2,075,089,500.00, with net proceeds amounting to RMB 1,999,968,974.06 after deducting issuance-related expenses. The raised funds were fully received on March 14, 2022, and verified by the Da Hua Accounting Firm (Special General Partnership) in the verification report "Da Hua Verification [2022] No. 000145."
II. Establishment of Special Account and Signing of Tripartite Supervision Agreement
To regulate the storage, use, and management of the raised funds and protect the rights of small and medium investors, the Company convened the eighth meeting of the third board of directors on April 29, 2026, and approved the proposal to open a special account for temporary supplementary working capital. The board authorized management or its representatives to handle matters related to the opening of the special account, including determining the bank and signing the tripartite supervision agreement with the bank and the sponsor. Recently, the Company has completed the establishment of the special account and signed the tripartite supervision agreement with Huayin Securities Co., Ltd. and the Bank of China Shenzhen Buji Branch. The details of the special account are as follows: