Special Verification Report on Hongbo Co., Ltd.'s Fund Storage and Actual Use for 2025 by Century Securities Co., Ltd.
Century Securities Co., Ltd. (hereinafter referred to as the "Sponsoring Institution") is the continuous supervision institution for Hongbo Co., Ltd. (hereinafter referred to as "Hongbo" or "the Company") in its private placement of A shares to specific targets. According to the "Regulations on the Supervision of Funds Raised by Listed Companies" (CSRC Announcement [2025] No. 10) issued by the China Securities Regulatory Commission and the "Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 - Standard Operation of Main Board Listed Companies" issued by the Shenzhen Stock Exchange, the Company conducted a verification of the storage and actual use of funds raised in 2025. The specific situation of the verification is as follows:
1. Basic Situation of the Raised Funds
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Actual amount raised and time of fund arrival Approved by the China Securities Regulatory Commission (CSRC) document [2016] No. 1057 and agreed by the Shenzhen Stock Exchange, Hongbo Co., Ltd. issued no more than 40.5 million new shares. On August 4, 2016, the Company privately placed 34,982,142 shares of common stock (A shares) at a price of RMB 22.40 per share to six specific targets including Baoying Fund Management Co., Ltd., Beixin Ruifeng Fund Management Co., Ltd., Qianhai Kaiyuan Fund Management Co., Ltd., Shenwan Hongyuan Fund Management Co., Ltd., Caitong Fund Management Co., Ltd., and Youyouyue. As of August 4, 2016, Hongbo raised a total of RMB 783,599,980.80, with issuance costs of RMB 21,099,982.14, resulting in a net amount of RMB 762,499,998.66. By August 4, 2016, all raised funds had been received, verified and confirmed by the accounting firm Zhitong (special general partnership) with verification report No. Zhitong Yan Zi [2016] No. 351ZA0033.
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Amount used in previous years As of December 31, 2024, the Company had cumulatively invested RMB 596,993,034.80 in projects funded by the raised funds, of which RMB 0.00 was invested using its own funds prior to the arrival of the raised funds; from August 4, 2016, to December 31, 2024, RMB 596,993,034.80 was used from the raised funds.
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Amount used and balance during the reporting period In 2025, the Company used RMB 252,703,859.17 of the raised funds. Among this, RMB 252,703,859.17 was used to permanently supplement working capital from temporarily unspecified raised funds and surplus raised funds; RMB 1,560,580.56 was earned from purchasing financial products with idle raised funds, with interest income of RMB 38,080.16 and fees of RMB 114.50. As of December 31, 2025, the balance of raised funds was RMB 819.58.
The situation of purchasing financial products with idle raised funds in 2025 is as follows:
| No. | Bank Name | Amount (10,000 RMB) | Product Type | Start Date | Maturity Date | Actual Yield | Earnings (RMB) |
|---|---|---|---|---|---|---|---|
| 1 | Huaxia Bank Fuzhou Financial Street Branch (entrusted by China Merchants Bank) | 3,000.00 | Fixed Rate (7-day notice deposit) | 2023/3/7 | 2025/4/11 | 1.80% | 1,149,000.00 |
| 2 | Everbright Bank Fuzhou Wuyi Branch (entrusted by China Merchants Bank) | 3,000.00 | Fixed Rate (7-day notice deposit) | 2023/12/19 | 2025/4/17 | 1.55% | 179,625.00 |
| 3 | Everbright Bank Fuzhou Tongpan Branch (entrusted by China Merchants Bank) | 1,600.00 | Fixed Rate (7-day notice deposit) | 2024/9/26 | 2025/4/17 | 1.20% | 85,288.89 |
| 4 | Everbright Bank Fuzhou Tongpan Branch (entrusted by Quanzhou Bank) | 3,000.00 | Fixed Rate (7-day notice deposit) | 2024/10/22 | 2025/4/17 | 1.00% | 146,666.67 |
| Total | 10,600.00 | 1,560,580.56 |