Dongxin Heping Continuous Supervision Document Audit Opinion China Merchants Securities Co., Ltd. Regarding Dongxin Heping Technology Co., Ltd.'s 2025 Raised Funds Deposit and Usage Audit Opinion
China Merchants Securities Co., Ltd. ("China Merchants Securities," "Sponsor") is the sponsor for Dongxin Heping Technology Co., Ltd.'s ("Dongxin Heping," "Company") public offering of shares through a private placement. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Supervision Rules for Listed Company Raised Funds," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 13 - Sponsorship Business," and other relevant laws and regulations, we have audited the matters related to the deposit, management, and actual use of Dongxin Heping's 2025 raised funds. The audit findings are as follows:
I. Basic Situation of Raised Funds
(I) Situation of Raised Funds Received
According to the "Approval for Dongxin Heping Technology Co., Ltd.'s Private Placement" (Zhengjian Permit [2018] No. 1749) issued by the China Securities Regulatory Commission, based on the Company's total share capital of 346,325,336 shares, 103,897,600 shares of RMB ordinary shares (A shares) were offered to all shareholders registered as of February 19, 2019, at a price of RMB 4.04 per share, with a ratio of 3 shares for every 10 shares held. Based on actual subscriptions, 100,160,748 new shares were ultimately placed, with a total raised fund amount of RMB 404,649,421.92. After deducting issuance expenses of RMB 9,353,102.05, the net amount of raised funds from this private placement is RMB 395,296,319.87. The receipt of these raised funds has been audited by CNS Certified Public Accountants (Special General Partnership), who issued the "Verification Report" (Zhonghuan Yan Zi [2019] No. 020004).
(II) Amount of Raised Funds Used and Balance
As of December 31, 2025, the Company had used RMB 75,592,304.55 of the raised funds. Of this, RMB 0.00 was used in 2025. As of December 31, 2025, the remaining balance of the raised funds is RMB 329,143,118.48 (net of bank deposit interest income minus bank handling fees), of which RMB 300,000,000.00 was used for temporary replenishment of working capital, and the remainder was deposited in the special account for raised funds.
II. Deposit and Management of Raised Funds
(I) Establishment of Raised Funds Management System
To standardize the management of the Company's raised funds, improve the efficiency of their use, and protect investor interests, in accordance with the "Company Law," "Securities Law," "Supervision Rules for Listed Company Raised Funds," "Shenzhen Stock Exchange Stock Listing Rules," and other relevant laws and regulations, and considering the Company's actual situation, the Company has formulated and is implementing the "Measures for the Management and Use of Raised Funds of Dongxin Heping Technology Co., Ltd."
(II) Implementation of Raised Funds Management System and Special Deposit Situation
In accordance with the "Measures for the Management and Use of Raised Funds of Dongxin Heping Technology Co., Ltd.," the Company implements a special deposit system for raised funds to facilitate their management and use, as well as supervision of their usage. The Company, together with the sponsor China Merchants Securities Co., Ltd., has signed "Tripartite Supervision Agreements" with the Meijing Branch of Bank of Communications, the Wuzhou Huacheng Branch of CITIC Bank in Zhuhai, and the Zhuhai Xiangzhou Branch of Agricultural Bank of China. These tripartite supervision agreements do not have significant differences from the tripartite supervision agreement template of the Shenzhen Stock Exchange, and their implementation is without issue.
As of December 31, 2025, the situation of raised funds deposit is as follows: