CITIC Securities Co., Ltd.
Audit Opinion on Hubei Ping An Electric Co., Ltd.'s Adjustment of Some Fundraising Investment Projects
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") as the sponsor for Hubei Ping An Electric Technology Co., Ltd.'s (hereinafter referred to as "Ping An Electric" or "the Company") initial public offering of shares and listing on the main board, and its continuous supervision, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Regulations on the Supervision of Raised Funds by Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 – Norms for the Operation of Main Board Listed Companies," and other relevant regulations, has prudently reviewed the matter of the Company's new wholly-owned subsidiary Hubei Ping An Electric Material Co., Ltd. (hereinafter referred to as "Ping An Material") being one of the implementing entities for the "Hubei Ping An Electric Technology Co., Ltd. Tongcheng Production Base Construction Project" (hereinafter referred to as "Fundraising Project") of its initial public offering of shares, and the adjustment of the purpose and investment structure of the "New Material R&D Center Project" of the Fundraising Project. The details are as follows:
I. Basic Situation of Raised Funds
According to the "Approval on the Registration of the Initial Public Offering of Shares of Hubei Ping An Electric Technology Co., Ltd." (Securities Regulatory Permit (2023) No. 2121) issued by the China Securities Regulatory Commission, the Company, through China Securities Co., Ltd., the lead underwriter, conducted a public offering of RMB ordinary shares (A shares) of 46.38 million shares at an issue price of RMB 17.39 per share, raising a total of RMB 806.5482 million. After deducting the tax-exclusive issuance expenses of RMB 79.0032 million, the net amount of raised funds is RMB 727.5450 million. The arrival of these raised funds has been verified by Tianjian Certified Public Accountants (Special General Partnership) and confirmed in their "Capital Verification Report" (Tianjian Verification [2024] No. 3-6). Upon receipt, the raised funds have been fully deposited into the special accounts for raised funds approved by the Company's Board of Directors. The Company and its relevant subsidiaries have signed custody agreements for the special accounts of raised funds with the sponsor and the commercial banks where the funds are deposited.