AVIC Securities Co., Ltd. Audit Opinion on China C-Ceramics Technology Co., Ltd. Continuing to Use Raised Funds for Entrusted Loans to Subsidiaries for Investment Projects
AVIC Securities Co., Ltd. ("AVIC Securities" or "Independent Financial Advisor"), as the independent financial advisor for the issuance of shares by Hebei C-Ceramics Technology Co., Ltd. (hereinafter referred to as the "Company," "Listed Company," or "C-Ceramics") to purchase assets and raise supporting funds (hereinafter referred to as the "Major Asset Restructuring"), has, in accordance with the "Supervision Regulations for the Management of Raised Funds by Listed Companies," "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant laws and regulations, audited the matter of C-Ceramics continuing to use raised funds to provide entrusted loans to its holding subsidiary for investment projects. The details are as follows:
I. Status of Raised Funds
Upon the issuance of the "Approval on the Registration of Hebei C-Ceramics Technology Co., Ltd.'s Issuance of Shares to Purchase Assets and Raise Supporting Funds" (Zhengjian Permit (2023) No. 1519) by the China Securities Regulatory Commission, the Company was approved to issue shares to seven counterparties, including China Electronics Technology Group Corporation's Thirteenth Research Institute, to purchase related assets, and simultaneously raise supporting funds not exceeding RMB 2.5 billion. The type of shares issued for this private placement to specific targets is domestic A-shares, with a par value of RMB 1.00 per share. Dahua Certified Public Accountants (Special General Partnership) issued the "Capital Verification Report on the Paid-in Capital After Hebei C-Ceramics Technology Co., Ltd. Issued 29,940,119 A-shares" (Dahua Verification (2023) No. 000647) on November 1, 2023. Upon verification, as of October 31, 2023, C-Ceramics issued 29,940,119 A-shares at a price of RMB 83.50 per share to specific targets. The total amount of raised funds was RMB 2,499,999,936.50. After deducting issuance-related expenses of RMB 37,309,377.46, the net amount of raised funds was RMB 2,462,690,559.04. The Company has implemented a special account deposit system for raised funds and ensures their dedicated use.
II. Use of Raised Funds
The supporting funds raised by the Company are intended to be invested in the following projects after deducting restructuring-related expenses: