China Galaxy Securities Co., Ltd.
Audit Opinion on Foshan Energy Group Co., Ltd.'s 2025 Fund Depository and Usage
China Galaxy Securities Co., Ltd. (hereinafter referred to as "Galaxy Securities" or "Sponsor") is the sponsor of Foshan Energy Group Co., Ltd. (hereinafter referred to as "Foshan Energy" or "the Company") for its initial public offering of shares. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Shenzhen Stock Exchange Stock Listing Rules," and other relevant regulations, after careful verification, the following audit opinion is issued on Foshan Energy's 2025 fund depository and actual usage:
I. Basic情况 of Raised Funds
(I) Amount of Funds Actually Raised and Time of Arrival
Upon approval by the China Securities Regulatory Commission's "Approval on the Initial Public Offering of Shares by Foshan Gas Group Co., Ltd." (Zhengjian Permit [2017] No. 1921), Foshan Energy issued 56 million shares of RMB ordinary shares (par value RMB 1.00 per share) at an issuance price of RMB 13.94 per share. The total amount of funds raised by the Company's share issuance was RMB 780,640,000.00. After deducting the unpaid sponsorship and underwriting fees of RMB 48,725,192.45, the amount actually deposited into the fund account was RMB 731,914,807.55. After deducting the prepaid sponsorship fees, issuance fees, audit and verification fees, legal fees, etc., paid by the Company for this share issuance, totaling RMB 17,032,572.32, the actual amount of funds raised was RMB 714,882,235.23. The arrival of these raised funds was verified by Lixin Certified Public Accountants (Special General Partnership), which issued an audit report No. ZB12046 [2017] on November 15, 2017.
(II) Amount Used in Previous Years, Amount Used in the Current Year, and Current Balance
As of December 31, 2025, the Company's fund usage and year-end balance are as follows:
| Item | Amount | Unit: RMB Yuan | Remarks |
|---|---|---|---|
| Total funds raised from initial public offering | 780,640,000.00 |
| Item | Amount | Remarks |
|---|---|---|
| Add: Net amount of interest income minus handling fees | 4,096,991.64 | |
| Wealth management products/structured deposits/7-day notice deposit income | 56,754,227.34 | |
| Less: Issuance expenses paid | 65,757,764.77 | |
| Amount of self-raised funds used to replace | 34,881,965.05 | |
| Direct investment in committed investment projects | 704,312,595.21 | |
| Surplus raised funds permanently supplemented to working capital | 36,538,893.95 | |
| Balance of raised funds in special accounts as of December 31, 2025 | - |
II. Fund Depository and Management
(I) Fund Management
To standardize the management and use of raised funds, improve the efficiency and effectiveness of fund utilization, and protect investors' rights and interests, the Company, in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Shenzhen Stock Exchange Stock Listing Rules," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guide No. 1 - Norms for Operations of Main Board Listed Companies," and the "Supervision Rules for Listed Company Raised Funds," and the Company's "Special Depository and Usage Management System for Raised Funds," has implemented a special account system for raised funds. The Company has established special accounts for raised funds in banks. The Company, together with the Sponsor China Galaxy Securities Co., Ltd., has signed a "Tripartite Supervisory Agreement for Raised Funds" with the banks. There is no significant difference between the tripartite supervisory agreement and the template tripartite supervisory agreement of the Shenzhen Stock Exchange. The Company strictly adheres to the provisions of the "Tripartite Supervisory Agreement for Raised Funds" for the depository and use of raised funds.