Ping An Securities Co., Ltd. Audit Opinion on Yalian Machinery Co., Ltd.'s Closure of Partial Fundraising Projects and Use of Surplus Raised Capital for Permanent Working Capital Supplement Ping An Securities Co., Ltd. (hereinafter referred to as "Ping An Securities" or "Sponsor") is the sponsor institution for the continuous supervision of Yalian Machinery Co., Ltd. (hereinafter referred to as "Yalian Machinery" or "the Company")'s initial public offering of shares and listing on the main board. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Supervision Rules for Raised Capital of Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant laws and regulations, Ping An Securities and its designated sponsor representatives have audited Yalian Machinery's closure of partial fundraising projects and the use of surplus raised capital for permanent working capital supplement. The details are as follows: I. Basic Situation of Raised Capital (I) Amount of Raised Capital and Receipt of Funds As approved by the China Securities Regulatory Commission's "Approval on the Registration of Yalian Machinery Co., Ltd.'s Initial Public Offering of Shares" (Zheng Jian Xu Ke (2024) No. 1582) and the Shenzhen Stock Exchange's "Notice on the Listing of Yalian Machinery Co., Ltd.'s RMB Ordinary Shares" (Shen Zheng Shang (2025) No. 87), the Company issued 21,810,000 ordinary shares of RMB ordinary shares with a par value of RMB 1 per share, and was listed on the main board of the Shenzhen Stock Exchange on January 27, 2025. The offering price was RMB 19.08 per share, with a total raised capital of RMB 416,134,800. After deducting the tax-exclusive issuance expenses of RMB 54,351,532.17, the actual net raised capital was RMB 361,783,267.83. The above raised capital was transferred to the Company's designated account on January 22, 2025. Zhongxinghua Certified Public Accountants (Special General Partnership) has audited the receipt of the Company's raised capital and issued the "Capital Verification Report" (Zhongxinghua Yan Zi (2025) No. 540002). (II) Cumulative Amount of Raised Capital Used and Current Balance The raised capital from this public offering was planned to be invested in the "Yalian Machinery Wood-Based Panel Production Line Equipment Integrated Manufacturing Base Project" and the "R&D Center Project." As of June 15, 2026, after deducting issuance expenses, the cumulative raised capital used for the above fundraising projects was RMB 164,826,799.85. The details are as follows:
| No. | Project | Amount (RMB) |
|---|---|---|
| 1 | Net Raised Capital | 361,783,267.83 |
| 2 | Cumulative Amount of Raised Capital Used | 164,826,799.85 |
| Of which: Replacement Amount | 128,428,830.21 | |
| Direct Investment Amount | 36,397,969.64 | |
| 3 | Increase in Raised Capital | 1,666,452.38 |
| Of which: Cash Management Income and Interest Received | 1,667,383.71 | |
| Payment of Handling Fees | -931.33 | |
| 4 | Balance of Raised Capital as of June 15, 2026 | 198,622,920.36 |
| II. Raised Capital Deposit and Management | ||
| To regulate the Company's management of raised capital, improve the efficiency of raised capital utilization, and protect investors' interests, the Company has formulated the " |