Dongxing Securities Co., Ltd.
Report on the Storage and Use of Raised Funds of Zhejiang Jiaxin Silk Co., Ltd. in 2025
Dongxing Securities Co., Ltd. (hereinafter referred to as "Dongxing Securities" or "Sponsor"), as the sponsor of Zhejiang Jiaxin Silk Co., Ltd. (hereinafter referred to as "Jiaxin Silk" or "the Company") for its non-public offering of A shares (hereinafter referred to as "non-public offering"), in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship", "Supervision Guidelines for Listed Companies No. 2 - Supervision Requirements for the Management and Use of Raised Funds by Listed Companies", "Shenzhen Stock Exchange Stock Listing Rules", and "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 1 - Norms for Main Board Listed Companies", has prudently audited the storage and use of Jiaxin Silk's raised funds in 2025. The audit findings are as follows:
I. Basic Situation of Raised Funds
(I) Amount of Raised Funds and Capital Arrival Situation
As approved by the China Securities Regulatory Commission's "Approval on Approving the Non-Public Offering of Shares by Zhejiang Jiaxin Silk Co., Ltd." (Zheng Jian Xu Ke [2017] No. 1638), the Company conducted a non-public offering of 57,023,641 ordinary shares (A shares) at a par value of RMB 1 per share and an issue price of RMB 7.19 per share, underwritten by the lead underwriter Dongxing Securities Co., Ltd. The total amount of raised funds was RMB 409,999,978.79. After deducting relevant expenses such as sponsorship and underwriting fees, and adding deductible input VAT, the net amount of raised funds was RMB 396,795,239.51. Of this amount, RMB 57,023,641.00 was recognized as share capital (share capital), and RMB 339,771,598.51 was recognized as capital reserve - capital surplus. This was verified by the capital verification report "Xin Hui Shi Bao Zi (2018) No. ZA10126" issued by Lixin Certified Public Accountants (Special General Partnership). The total amount of raised funds, after deducting sponsorship and underwriting fees and other listing expenses, remaining for project investment was RMB 396,002,955.15. The Company opened a special account for raised funds, and the raised funds are stored in a dedicated account.