China Merchants Securities Co., Ltd. (hereinafter referred to as "China Merchants Securities" or "Sponsor") as the continuous supervision sponsor of Zhejiang Huatong Meat Products Co., Ltd. (hereinafter referred to as "Huatong Shares", "the Company" or "the Company"), according to the "Shenzhen Stock Exchange Stock Listing Rules", "Securities Issuance and Listing Sponsor Management Measures", "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 1 - Standardized Operation of Main Board Listed Companies", "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 13 - Sponsor Business" and other relevant regulations, has investigated the matter of Huatong Shares using part of the temporarily idle raised funds for cash management, and the investigation results and opinions are as follows:
I. Basic情况 of Raised Funds
According to the "Approval on the Registration of Zhejiang Huatong Meat Products Co., Ltd.'s Issuance of Shares to Specific Objects" (Certificate Permit [2025] No. 168) issued by the China Securities Regulatory Commission, the Company issued 172,043,010 ordinary shares (A shares) to specific objects at an issuance price of RMB 9.30 per share. The total raised funds amounted to RMB 1,599,999,993.00. After deducting the tax-exclusive expenses related to the issuance of RMB 18,362,887.65, the net raised funds amounted to RMB 1,581,637,105.35. These raised funds were transferred to the Company's designated account on April 17, 2025. Tianjian Certified Public Accountants (Special General Partnership) has audited the arrival of the raised funds and issued the "Capital Verification Report" (Tianjian Verification [2025] No. 77).
All raised funds have been deposited in the special account for raised funds. The Company, the Sponsor, and the commercial banks where the raised funds are deposited have signed a supervision agreement for the raised funds.
II. Management and Use of Raised Funds
According to the "Zhejiang Huatong Meat Products Co., Ltd. Prospectus for Issuance of A Shares to Specific Objects" and the "Announcement on Adjusting the Amount of Raised Funds to be Invested in Raised Fund Investment Projects" (Announcement No.: 2025-060), the specific situation of the raised fund utilization plan is as follows:
| Project Name | Planned Investment Amount | Original Planned Investment Amount | Adjusted Planned Investment Amount |
|---|---|---|---|
| I. Pig Farming Project | |||
| 1. Jixi Huatong Integrated Pig Farm | 1,026,390,455.46 | 768,000,000.00 | 759,185,810.57 |
| 2. Liandu Huatong Core Pig Farm | 304,095,336.70 | 288,000,000.00 | 284,694,678.96 |
| Subtotal | 1,330,485,792.16 | 1,056,000,000.00 | 1,043,880,489.53 |
| II. Feed Processing Project | |||
| 1. Annual Production of 180,000 Tons of High-Grade Feed for Livestock and Poultry | 80,523,926.30 | 64,000,000.00 | 63,265,484.21 |
| Subtotal | 80,523,926.30 | 64,000,000.00 | 63,265,484.21 |
| III. Repayment of Bank Loans Project | |||
| 1. Repayment of Bank Loans | 480,000,000.00 | 480,000,000.00 | 474,491,131.61 |
| Subtotal | 480,000,000.00 | 480,000,000.00 | 474,491,131.61 |
| Total | 1,891,009,718.46 | 1,600,000,000.00 | 1,581,637,105.35 |