China Merchants Securities Co., Ltd.
Regarding Guangdong Jianlang Hardware Products Co., Ltd.'s 2025 Raised Funds Storage, Management, and Use Audit Opinion
As the sponsor of Guangdong Jianlang Hardware Products Co., Ltd. (hereinafter referred to as "Jianlang Hardware" or "the Company")'s issuance of shares to specific targets, China Merchants Securities Co., Ltd. (hereinafter referred to as "China Merchants Securities" or "the Sponsor") has, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Supervision Regulations for Listed Company Raised Funds," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant regulations, conducted a prudent review of Jianlang Hardware's 2025 raised funds storage, management, and use. The audit opinion is as follows:
I. Basic Situation of Raised Funds
(I) Amount of Actual Raised Funds and Arrival Time
Approved by the China Securities Regulatory Commission's "Approval on Guangdong Jianlang Hardware Products Co., Ltd.'s Issuance of Shares to Specific Targets" (Zheng Jian Xu Ke (2023) No. 2044) and the Shenzhen Stock Exchange, the Company issued 32,345,013 ordinary shares (A shares) to specific targets at an issue price of RMB 18.61 per share. The total raised funds amounted to RMB 60,194.07 million. After deducting issuance expenses, the net amount of raised funds was RMB 59,213.95 million.
The aforementioned raised funds were all received on August 19, 2024. On August 20, 2024, Shinewing Certified Public Accountants (Special General Partnership) audited the arrival of these raised funds and issued Shinewing Audit Letter (2024) No. 000042, "Guangdong Jianlang Hardware Products Co., Ltd. Capital Verification Report."
(II) Amount of Raised Funds Used in Previous Years, Amount Used in This Reporting Period, and Current Balance
As of December 31, 2025, the Company's use of raised funds from the issuance of shares to specific targets is detailed as follows:
| Item | Amount (RMB million) |
|---|---|
| 1. Total Raised Funds | 60,194.07 |
| Less: Various Issuance Expenses | 980.12 |
| 2. Net Raised Funds | 59,213.95 |
| Plus: Net of Interest and Income from Raised Funds Cash Management | 319.96 |
| Less: Amount of Raised Funds Used as of End of 2024 (including prior self-funded investment replacement) | 40,224.68 |
| Less: Amount of Raised Funds Used in 2025 | 9,041.59 |
| Balance of Raised Funds Account at End of Period | 10,267.64 |
Note: 1. The sum of the totals and the sub-items may have rounding differences due to rounding. 2. The balance of the raised funds account at the end of the period includes RMB 0.3081 million mistakenly transferred to the special raised funds account by a third party, which was returned to the third party on January 8, 2026.
II. Raised Funds Storage and Management
(I) Establishment and Implementation of Raised Funds Management System
To regulate the management and use of the Company's raised funds and protect investors' interests, in accordance with the "Supervision Regulations for Listed Company Raised Funds," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant laws, administrative regulations, rules, and normative documents, and in conjunction with the Company's actual situation, the Company has formulated the "Raised Funds Management System" (hereinafter referred to as the "Management System"). The Company strictly manages the raised funds in accordance with the requirements of the Management System.
(II) Signing of Raised Funds Tripartite Supervision Agreements