Oriental Securities Co., Ltd. Audit Opinion on Huafeng Chemical Co., Ltd.'s Use of Partially Idle Raised Funds for Cash Management
As the sponsor of Huafeng Chemical Co., Ltd. (hereinafter referred to as "Huafeng Chemical" or "the Company"), Oriental Securities Co., Ltd. (hereinafter referred to as "Oriental Securities" or "the Sponsor") has performed its continuous supervision duties in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Supervision Regulations for Listed Company Raised Funds," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Management Guide No. 1 – Standardized Operation of Main Board Listed Companies," and other relevant laws, regulations, and normative documents. A special audit has been conducted on Huafeng Chemical's use of partially idle raised funds for cash management, as detailed below:
I. Basic Situation of Raised Funds
As approved by the China Securities Regulatory Commission's "Approval for Huafeng Chemical Co., Ltd. to Publicly Issue Shares" (Securities Regulatory License [2021] No. 4150), the Company issued 329,024,676 shares of RMB common stock at an issuance price of RMB 8.51 per share, with a total raised fund of RMB 2,799,999,992.76. After deducting issuance expenses (excluding tax), the net raised fund amounted to RMB 2,773,292,445.68. The capital verification of the raised funds was conducted by Lixin Certified Public Accountants (Special General Partnership), which issued the Capital Verification Report No. [2022]ZF10082.