Donghai Securities Co., Ltd.
Audit Report on Jiangsu Yuxing Thin Film Technology Co., Ltd.'s Termination of Partial Fundraising Projects and Change of Fundraising Fund Use
Donghai Securities Co., Ltd. ("Donghai Securities," "Sponsor") is the sponsor for Jiangsu Yuxing Thin Film Technology Co., Ltd. ("Company," "Yuxing Shares") in its private placement of A shares. Pursuant to the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Shenzhen Stock Exchange GEM Stock Listing Rules," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidance No. 2 - Normative Operation of GEM Listed Companies," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidance No. 13 - Sponsorship Business," and the "Supervision Rules for Fundraising of Listed Companies," etc., Donghai Securities has prudently reviewed the matter of Yuxing Shares terminating partial fundraising projects and changing the use of some of the raised funds. The review findings and opinions are as follows:
I. Basic Situation of Raised Funds, Fundraising Projects, and Use/Balance of Raised Funds
(I) Basic Situation of Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Jiangsu Yuxing Thin Film Technology Co., Ltd.'s Private Placement of Shares" (Zheng Jian Xu Ke [2023] No. 2431), the Company issued 86,626,740 ordinary shares of RMB 8.01 per share to specific objects. The total amount raised was RMB 693,880,187.40. After deducting issuance expenses of RMB 11,335,323.04, the net amount raised was RMB 682,544,864.36.
Donghai Securities, as the sponsor (sole underwriter) for this issuance, transferred the raised funds, after deducting underwriting and sponsorship fees, to the Company's designated account on January 5, 2024. Xinyongzhonghe Certified Public Accountants (Special General Partnership) audited the receipt of the raised funds for this issuance as of January 5, 2024, and issued the "Capital Verification Report on the Paid-in Capital of Jiangsu Yuxing Thin Film Technology Co., Ltd. as of January 5, 2024" (XYZH/2023NJAA3B0168). The raised funds are intended for the following projects:
| No. | Project Name | Total Project Investment (RMB 10,000) | Raised Funds to be Used (RMB 10,000) |
|---|---|---|---|
| 1 | High-performance polyester film production and supporting project | 131,290.11 | 52,000.00 |
| 2 | Supplementary working capital | 18,000.00 | 16,254.49 |
| Total | 149,290.11 | 68,254.49 |
To standardize the management and use of raised funds and protect investors' rights and interests, the Company has signed the "Tripartite Supervision Agreement on Raised Funds" with the sponsor, China Construction Bank Corporation Changzhou Zhonglou Sub-branch, and Bank of Communications Co., Ltd. Changzhou Branch.
(II) Basic Situation of Fundraising Projects
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Project Name: High-performance polyester film production and supporting project
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Project Implementation Entity: Jiangsu Yuxing Thin Film Technology Co., Ltd.
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Project Construction Content and Progress
The Company commenced the construction of the high-performance polyester film production and supporting project in June 2023. This project involves building two new polyester film production lines (each with an annual capacity of 40,000 tons, totaling 80,000 tons). Together with the polyester film production line at the Xinglong plant, the total capacity will reach 243,000 tons. Additionally, two functional polyester production lines will be built, with the new functional polyester capacity intended to provide raw material support for the new and existing film production lines at the Xinglong plant. The project construction period is 24 months. Project funding sources include the Company's own funds, bank project loans, and raised funds.