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 the "Regulations on the Management of Sponsorship for Securities Issuance and Listing," "Regulations on the Supervision of Funds Raised by Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules," and "Self-Regulatory Guidelines No. 1 for Listed Companies on the Main Board of Shenzhen Stock Exchange," CITIC Securities conducted a prudent review of Ping An Electric's use of its own funds, bank acceptance bills, letters of credit, and foreign exchange for financing projects and the subsequent replacement with raised funds. The specific circumstances are as follows:
1. Basic Situation of Raised Funds
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-taxable issuance expenses of RMB 79.00 million, the net amount of raised funds is RMB 727.55 million. The above-mentioned raised funds have been verified by Tianjian Certified Public Accountants (Special General Partnership), which issued a "Verification Report" (Tianjian Yan [2024] No. 3-6) on March 21, 2024.
2. Situation of New Implementing Entities for Some Investment Projects
According to the Company's "Prospectus for the Initial Public Offering of Hubei Ping An Electric Technology Co., Ltd." and the announcements regarding adjustments to the amount of raised funds for investment projects (Announcement No.: 2024-003) and the postponement and change of the use of funds for some investment projects (Announcement No.: 2024-051), the planned use of raised funds for investment projects is as follows:
| No. | Project Name | Total Investment | Planned Investment Amount |
|---|---|---|---|
| 1 | Ping An Electric Wuhan Production Base Project | 12,291.54 | 12,291.54 |
| 2 | Hubei Ping An Electric Technology Co., Ltd. Tongcheng Production Base Project | 34,574.87 | 34,574.87 |
| 3 | New Materials R&D Center Project | 8,174.03 | 7,356.63 |
| 4 | Production Base Intelligent Upgrade and Transformation Project | 5,016.90 | 5,016.90 |
| 5 | Supplementing Working Capital | 13,514.57 | 13,514.57 |
| Total | 73,571.91 | 72,754.50 |