CITIC Securities Co., Ltd.
Audit Opinion on Longda Meat Co., Ltd.'s Termination of Fundraising Projects and Permanent Supplementation of Working Capital
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "Sponsor") acted as the sponsor for Longda Meat Co., Ltd. (hereinafter referred to as "Longda Meat," "the Company," or "the Company") in its 2021 non-public offering of shares. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Shenzhen Stock Exchange Stock Listing Rules," the "Supervision Rules for the Management of Raised Funds by Listed Companies," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," among other relevant regulations, CITIC Securities has prudently audited Longda Meat's termination of its 2020 public offering of convertible corporate bonds and its 2021 non-public offering of shares fundraising projects, and the permanent supplementation of the remaining raised funds to working capital. The details are as follows:
I. Basic Situation of Raised Funds
(I) 2020 Public Offering of Convertible Corporate Bonds
Approved by the China Securities Regulatory Commission (hereinafter referred to as "CSRC") with Document No. 1077 [2020], the Company publicly issued convertible corporate bonds with a total amount of RMB 950 million on July 13, 2020. The face value of each bond was RMB 100, totaling 9.5 million bonds with a term of 6 years. After deducting the sponsor and underwriting fees of RMB 14,000,000.00 (excluding tax), the Company actually received RMB 936,000,000.00 in subscription funds for the convertible corporate bonds, which were credited to the account on July 17, 2020. After deducting issuance expenses such as underwriting and sponsorship commissions, verification fees, legal fees, and credit rating fees totaling RMB 14,216,981.13 (excluding tax), the net amount of raised funds from the Company's public offering of convertible corporate bonds was RMB 935,783,018.87. Zhongsen Zhonghuan Certified Public Accountants (Special General Partnership) conducted verification and issued the "Capital Verification Report" (Zhonghuan Yan Zi [2020] No. 280003). After deducting the deductible input VAT of RMB 840,000.00 included in the sponsor and underwriting fees, the net amount of raised funds from the Company's public offering of convertible corporate bonds was RMB 934,943,018.87.
The raised funds were invested in the following projects:
| No. | Project Name | Amount of Raised Funds Invested (RMB million) |
|---|---|---|
| 1 | Anqiu City Shibaozi Town New 500,000 Head Commercial Pig Project | 66,500.00 |
| 2 | Supplementation of Working Capital | 28,500.00 |
| Total | 95,000.00 |
(II) 2021 Non-Public Offering of Shares
According to the CSRC's approval document No. 103 [2021] issued on January 13, 2021, "Approval for Longda Meat Co., Ltd. to Conduct Non-Public Offering of Shares," the Company was approved to issue no more than 298,781,574 ordinary shares. Based on investor subscriptions, the actual number of shares issued in this non-public offering was 76,029,409 shares, with an issue price of RMB 8.16 per share, all subscribed in cash. The total amount raised was RMB 620,399,977.44. After deducting issuance expenses (excluding tax) totaling RMB 9,613,574.57, the net amount of raised funds was RMB 610,786,402.87. These funds were credited to the account on July 28, 2021. Zhongsen Zhonghuan Certified Public Accountants (Special General Partnership) conducted verification and issued the "Capital Verification Report" (Zhonghuan Yan Zi [2021] No. 2800002).