GF Securities Co., Ltd.
Review Opinion on Nanjing KeYuan Smart Technology Group Co., Ltd.'s Use of Idle Raised Funds for Wealth Management
As the sponsor institution of Nanjing KeYuan Smart Technology Group Co., Ltd. (hereinafter referred to as "KeYuan Smart" or "the Company") for its private offering of shares, GF Securities Co., Ltd. (hereinafter referred to as "GF Securities") has, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Shenzhen Stock Exchange Main Board Listed Company Normative Operation Guide No. 1," "Regulations on the Supervision of Raised Funds by Listed Companies," and the "Shenzhen Stock Exchange Stock Listing Rules," conducted a prudent review of the Company's use of idle raised funds for wealth management. The review findings are as follows:
I. Basic Situation of Raised Funds
- Initial Public Offering of Shares
Approved by the China Securities Regulatory Commission's "Approval on the Initial Public Offering of Shares by Nanjing KeYuan Automation Equipment Co., Ltd." (Zhengjian Permit [2010] No. 263) on March 3, 2010, the Company publicly issued 17 million ordinary shares (A shares) of RMB 1.7 million at an issue price of RMB 39.00 per share on March 19, 2010. The total amount of raised funds was RMB 663,000,000.00. On March 24, 2010, after deducting underwriting and sponsorship fees of RMB 26,520,000.00, the amount received from the subscriptions of ordinary shares (A shares) by public shareholders was RMB 636,480,000.00. This amount was deposited into the Company's account at the Jiangning Branch of Bank of Communications, Nanjing (Account Number: 320006637018010080246). After deducting issuance expenses such as audit, capital verification, legal, and information disclosure fees of RMB 5,553,184.56 (excluding roadshow, advertising, and reception expenses of RMB 7,449,820.44), the net amount of raised funds was RMB 630,926,815.44. The Company implemented a special account deposit system for the raised funds.
- Private Offering of Shares in 2016
Approved by the China Securities Regulatory Commission's "Zhengjian Permit [2016] No. 421," the Company privately offered 35,991,649 ordinary shares (A shares) at an issue price of RMB 26.01 per share. The total amount of raised funds was RMB 936,142,790.49. After deducting issuance expenses, the net amount of raised funds was RMB 914,618,047.89. This net amount of raised funds was verified by the "Capital Verification Report" (Su Gong W [2016] B031) issued by Jiangsu GongZheng TianYe Certified Public Accountants (Special General Partnership).