Huafu Fashion Co., Ltd.
Announcement No. 2025-42
The company and all members of the board guarantee that the content of this information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
I. Basic Situation of Raised Funds
According to the approval from the China Securities Regulatory Commission (CSRC) (Approval No. [2020]2582) regarding the non-public issuance of shares by Huafu Fashion Co., Ltd., the company issued 274,278,835 ordinary shares (A shares) at a price of RMB 4.16 per share on September 14, 2021. The total amount raised was RMB 1,140,999,953.60. After deducting underwriting and sponsorship fees of RMB 10,660,000.00, the net amount raised was RMB 1,130,339,953.60, which was deposited by Huatai United Securities into the company's RMB accounts at Zhejiang Commercial Bank Shaoxing Shangyu Branch (Account No. 3371020210120100198791) and China Construction Bank Shenzhen Luohu Branch (Account No. 44250100002809999888) on September 14, 2021. After deducting other issuance expenses of RMB 3,964,568.82, the net amount of raised funds was RMB 1,126,375,384.78. The status of these funds has been verified by Dahua Certified Public Accountants (Special General Partnership), which issued verification report No. Dahua Yan Zi [2021] 000637. The company has implemented a special account storage system for the raised funds. As of June 30, 2025, the total investment in raised fund projects was RMB 1,136,856,824.39, with no new investments made during this period. As of June 30, 2025, the balance of raised funds was RMB 0.00. The company has not used RMB 1,947.67 of the raised funds, which has been transferred to the company's basic account after deducting account closure fees, and all special accounts for raised funds have been closed.
II. Storage and Management of Raised Funds
- Management of Raised Funds
To standardize the management and use of raised funds and protect the rights and interests of investors, the company has formulated the "Management System for Raised Funds of Huafu Fashion Co., Ltd." (hereinafter referred to as the "Management System") in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange Listing Rules, and the Self-Regulatory Guidelines for Listed Companies No. 1 - Standard Operation of Main Board Listed Companies, among other laws and regulations, combined with the actual situation of the company. This Management System was approved by the company's second extraordinary general meeting of shareholders in 2020. According to the requirements of the Management System and in line with the company's operational needs, the company has opened special accounts for raised funds at China Construction Bank Shenzhen Luohu Branch and Zhejiang Commercial Bank Shaoxing Shangyu Branch. Both accounts are used for the Huafu (Vietnam) 500,000 Spindle New Yarn Project (Phase I). Since the project is located in Vietnam, the raised funds for this project were held in the China Construction Bank Shenzhen Luohu Branch before being transferred to the company's account in Vietnam. On September 15, 2021, a tripartite supervision agreement for raised funds was signed with the sponsor and the commercial bank holding the raised funds, clarifying the rights and obligations of all parties. On January 7, 2022, due to changes in the fundraising project, a supplementary agreement to the tripartite supervision agreement was signed with the sponsor and the commercial bank holding the raised funds. The company strictly implements approval procedures for the use of raised funds according to the internally established Management System to ensure that funds are used for their intended purpose. The authorized sponsor representative can check the information of the raised funds special account at any time and is required to conduct at least one on-site inspection of the management and use of raised funds every half year.