First Guotai Junan Securities Underwriting and Sponsorship Co., Ltd.
Audit Report on Guangdong Yuehai Feed Group Co., Ltd.'s 2025 Raised Funds Storage and Use
First Guotai Junan Securities Underwriting and Sponsorship Co., Ltd. (hereinafter referred to as "Guotai Junan Investment" or "Sponsor"), as the sponsor of Guangdong Yuehai Feed Group Co., Ltd. (hereinafter referred to as "Yuehai Feed" or "the Company") for its initial public offering of shares and ongoing supervision, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Shenzhen Stock Exchange Stock Listing Rules," the "Listed Company Raised Funds Supervision Rules," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant regulations, has audited the storage and use of raised funds by Yuehai Feed in 2025. The audit findings are as follows:
I. Basic Situation of Raised Funds
(I) Amount of Raised Funds and Time of Receipt
As approved by the China Securities Regulatory Commission's "Approval on Approving the Initial Public Offering of Shares of Guangdong Yuehai Feed Group Co., Ltd." (Zhengjian Xuke [2022] No. 110) and agreed by the Shenzhen Stock Exchange, the Company publicly issued 100,000,000 ordinary shares of RMB (A shares) at an issue price of RMB 5.38 per share, with a total raised fund of RMB 538,000,000.00. After deducting the issuance expenses of RMB 57,920,500.00 (including value-added tax), the net amount of raised funds is RMB 480,079,500.00.
The raised funds were all received on February 9, 2022. Tianzhi International Certified Public Accountants (Special General Partnership) audited the receipt of the raised funds and issued the "Capital Verification Report" (Tianzhi Ziye [2022] No. 2619) on February 9, 2022.
(II) Use and Balance of Raised Funds
In 2025, the use and balance of the Company's raised funds are as follows:
| Project Name | Serial Number | Amount (RMB) |
|---|---|---|
| Net amount of raised funds | A1 | 480,079,500.00 |
| Amount of raised funds used | A2 | 342,898,660.88 |
| Amount of interest income and wealth management income from raised funds | A3 | 8,946,715.31 |
| Amount of raised funds used in previous periods | A4 | 26,944,524.97 |
|---|---|---|
| Net amount of interest income and wealth management income | A5 | 51,425.38 |
| Balance of outstanding raised funds | A6=A1-A2+A3-A4+A5 | 119,234,454.84 |
| Of which: Amount of idle raised funds managed for cash management not yet due | A7 | - |
| Of which: Amount of idle raised funds temporarily used to supplement working capital | A8 | 112,400,000.00 |
| Balance of raised funds in the special bank account at the end of the reporting period | A9=A6-A7-A8 | 6,834,454.84 |
II. Storage and Management of Raised Funds
(I) Formulation and Implementation of Raised Funds Management System
To standardize the management and use of raised funds and protect the legitimate rights and interests of investors, the Company, in accordance with the "Supervision Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies," the "Shenzhen Stock Exchange Stock Listing Rules," the "Shenzhen Stock Exchange Self-Regulatory Supervision Guide No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant regulations, and in conjunction with the Company's actual situation, has revised its "Raised Funds Management System." This system was deliberated and approved at the 18th meeting of the second board of directors on March 7, 2022, and the first extraordinary general meeting of shareholders in 2022 on March 23, 2022. In accordance with the "Raised Funds Management System," the Company has established special accounts for raised funds in banks, implements special account storage for raised funds, and strictly follows approval procedures for the use of raised funds to ensure that funds are used for their intended purpose.