Zhongtai Securities Co., Ltd.
Opinion on the Audit of the Storage and Use of Raised Funds of Shandong Yanggu Huatai Chemical Co., Ltd. in 2025
Zhongtai Securities Co., Ltd. (hereinafter referred to as the "Sponsor") is the sponsor institution continuously supervising Shandong Yanggu Huatai Chemical Co., Ltd. (hereinafter referred to as "Yanggu Huatai" or the "Company"). In accordance with the requirements of laws, regulations, and normative documents such as the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Supervision Rules for the Supervision of Raised Funds of Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules for GEM," and "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Management Guide No. 2 - Standardized Operation of GEM Listed Companies," the Sponsor has prudently audited the storage and use of raised funds by Yanggu Huatai in 2025. The specific audit findings are as follows:
I. Basic Situation of Raised Funds
(I) Amount of Raised Funds and Timing of Fund Arrival
- Raised Funds from Issuance of Shares to Specific Objects through Simplified Procedures in 2022
With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Shandong Yanggu Huatai Chemical Co., Ltd.'s Issuance of Shares to Specific Objects" (Securities Regulatory License (2022) No. 1822), the Company issued 24,015,164 ordinary shares (A shares) to specific objects through simplified procedures. Each share has a par value of RMB 1, and the issuance price per share is RMB 11.87. The total amount of raised funds is RMB 285,059,996.68. After deducting issuance expenses such as underwriting fees, sponsorship fees, audit fees, legal fees, and information disclosure fees totaling RMB 3,768,453.68 (excluding tax), the net amount of raised funds is RMB 281,291,543.00. As of August 26, 2022, the raised funds from the Company's aforementioned issuance have all arrived and have been verified by Xinyongzhonghe Certified Public Accountants (Special General Partnership), who issued an auditor's report No. XYZH/2022JNAA30519.
- Raised Funds from Public Issuance of Convertible Corporate Bonds in 2023
According to the China Securities Regulatory Commission's "Approval on the Registration of Shandong Yanggu Huatai Chemical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Objects" (Securities Regulatory License (2023) No. 1091), the Company is approved to publicly issue 6,500,000.00 convertible corporate bonds, with a par value of RMB 100.00 per bond. The total amount of the issuance is RMB 650,000,000.00. After deducting underwriting fees, sponsorship fees, audit fees, legal fees, and information disclosure fees totaling RMB 5,847,650.42 (excluding tax), the net amount of raised funds is RMB 644,152,349.58. The raised funds have all arrived as of August 2, 2023, and have been verified by Xinyongzhonghe Certified Public Accountants (Special General Partnership), who issued an auditor's report No. XYZH/2023JNAA3B0500.
(II) Use of Raised Funds in 2025
As of December 31, 2025, the use of raised funds from the issuance of shares to specific objects through simplified procedures in 2022 is as follows:
| Project | Amount (RMB) |
|---|---|
| Total Raised Funds | 285,059,996.68 |
| Less: Sponsorship and Underwriting Fees | 2,800,000.00 |
| Amount of Raised Funds Received | 282,259,996.68 |
| Less: Repayment of Issuance Expenses with Own Funds | 968,453.68 |
| Less: Other Issuance Expenses | 281,291,543.00 |
| Actual Amount of Raised Funds | 250,968,206.45 |
| Less: Cumulative Investment in Raised Fund Projects | 20,122.62 |
| Less: Cumulative Investment in Raised Fund Projects | 570,000,000.00 |
| Less: Cumulative Investment in Raised Fund Projects | 27,194,793.03 |
| Add: Interest Income from Deposits | 1,184,660.62 |
| Add: Recovered Funds from Wealth Management Products | 570,000,000.00 |
| Add: Proceeds from Wealth Management Products | 1,828,269.24 |
| As of December 31, 2025, Balance of Raised Funds Account | 6,121,350.76 |