CITIC Securities Co., Ltd.
Special Audit Report on the Storage and Use of Raised Funds of Rainbow Drone Co., Ltd. in 2025
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "Sponsor") as the sponsor and continuous supervision institution for the 2021 private placement of Rainbow Drone Co., Ltd. (hereinafter referred to as "Rainbow Drone" or "the Company"), in accordance with the "Supervision Rules for the Management of Raised Funds of Listed Companies" and the "Guiding Principles for the Standardized Operation of Main Board Listed Companies of the Shenzhen Stock Exchange" and other relevant regulations, has audited the storage and use of Rainbow Drone's raised funds in 2025. The audit findings and opinions are as follows:
I. Basic Situation of Raised Funds
(I) Actual Amount of Raised Funds and Time of Receipt
Upon approval by the China Securities Regulatory Commission (Document No. [2021] 2806) and with the consent of the Shenzhen Stock Exchange, the Company issued 42,240,259 ordinary shares (A shares) to 5 specific investors at an issuance price of RMB 21.56 per share, raising a total of RMB 910,699,997.40. After deducting underwriting and sponsorship fees of RMB 6,603,773.58, the raised funds amounted to RMB 904,096,223.82, which were deposited into the Company's raised fund supervision account by the lead underwriter, CITIC Securities Co., Ltd., on October 29, 2021. After further deducting new external expenses directly related to the issuance of equity securities, such as legal fees, accounting fees, and statutory information disclosure fees, totaling RMB 804,000.23, the net amount of raised funds for this issuance was RMB 903,292,223.59.
The net amount of raised funds has been verified by the "Capital Verification Report" (Document No. [2021] 110C000745) issued by BDO China Shu Lun Pan Certified Public Accountants (Special General Partnership).
(II) Amount Used in Previous Years, Amount Used in the Current Year, and Current Balance
1. Amount Used in Previous Years
As of December 31, 2024, the Company's net raised funds were RMB 90,329.22 million, with a cumulative investment of RMB 72,223.75 million, and an unused amount of RMB 18,105.47 million. The detailed breakdown of cumulative investment is as follows:
- Supplemented working capital with raised funds amounting to RMB 26,579.22 million.
- Reimbursed funds amounting to RMB 2,918.34 million, covering 4 projects, including the CH-4 enhanced unmanned aerial vehicle R&D project (RMB 2,392.43 million), the unmanned tiltrotor aircraft system R&D project (RMB 230.45 million), the stealth unmanned aerial vehicle system R&D project (RMB 209.46 million), and the low-cost airborne weapon R&D project (RMB 86.00 million).
- Direct investment in projects amounted to RMB 42,726.19 million, covering 5 projects, including the CH-4 enhanced unmanned aerial vehicle R&D project (RMB 9,709.12 million), the unmanned tiltrotor aircraft system R&D project (RMB 4,142.86 million), the stealth unmanned aerial vehicle system R&D project (RMB 22,831.93 million), the low-cost airborne weapon R&D project (RMB 5755.09 million), and the annual production of XX units of low-cost airborne weapon industrialization project (RMB 287.19 million).
2. Amount Used in the Current Year and Current Balance
In 2025, the Company directly invested RMB 12,785.85 million in investment projects using raised funds, covering 5 projects, including the CH-4 enhanced unmanned aerial vehicle R&D project (RMB 43 million), the unmanned tiltrotor aircraft system R&D project (RMB 159.94 million), the stealth unmanned aerial vehicle system R&D project (RMB 10,039.13 million), the low-cost airborne weapon R&D project (RMB 0.35 million), and the annual production of XX units of low-cost airborne weapon industrialization project (RMB 2,543.43 million).
In summary, as of December 31, 2025, the cumulative investment of raised funds was RMB 85,009.60 million, with an unused amount of RMB 5,319.62 million.