CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") is the sponsor for Hubei Ping An Electric Technology Co., Ltd. (hereinafter referred to as "Ping An Electric" or "the Company") for its initial public offering (IPO) and continuous supervision, in accordance with relevant regulations including the "Administrative Measures for the Sponsorship of Securities Issuance and Listing," "Regulations on the Supervision of Fundraising by Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules," and "Self-Regulatory Guidelines No. 1 for Listed Companies on the Main Board—Standard Operation of Main Board Listed Companies." CITIC Securities has conducted a prudent review of the addition of a wholly-owned subsidiary of Ping An Electric as an implementation entity for certain fundraising projects and the establishment of a new special account for raised funds. The specific circumstances are as follows:
1. Basic Situation of Fundraising
According to the China Securities Regulatory Commission's approval (Zheng Jian Xu Ke [2023] No. 2121), the Company publicly issued 46.38 million shares of RMB ordinary shares (A shares) at an issue price of RMB 17.39 per share, raising a total of RMB 806.55 million. After deducting non-tax issuance expenses of RMB 79.00 million, the net amount raised is RMB 727.55 million. The above fundraising has been verified by Tianjian Accounting Firm (Special General Partnership), which issued a "Verification Report" (Tianjian Yan [2024] No. 3-6) on March 21, 2024. After the funds were received, they were all deposited into a special account for fundraising approved by the Company's board of directors. The Company and relevant subsidiaries have signed a storage supervision agreement for the special account with the sponsor and the commercial bank holding the raised funds.
2. Situation of New Implementation Entity for Some Fundraising Projects
The original implementation entity for the fundraising project "Ping An Electric Wuhan Production Base Construction Project" was the Company's wholly-owned subsidiary Hubei Ping An Electric Industry Co., Ltd. (hereinafter referred to as "Ping An Industry"), with a planned use of raised funds amounting to RMB 122.92 million. To ensure the smooth implementation of the fundraising project, the Company intends to add its wholly-owned subsidiary Hubei Taikai Aneng Technology Co., Ltd. (hereinafter referred to as "Taikai Aneng") as one of the implementation entities for the "Ping An Electric Wuhan Production Base Construction Project." After the addition of the implementation entity, the implementation entities for the project will be Ping An Industry and Taikai Aneng, while the use of raised funds and project construction content will remain unchanged. The specific situation is as follows: