I. Basic Information on Raised Funds
(1) Actual Amount Raised and Timing of Funds Arrival
According to the approval document issued by the China Securities Regulatory Commission (CSRC) [2014] No. 27, the company publicly issued 15,578,600 ordinary shares (A shares) at a price of RMB 16.31 per share in January 2014, with a total expected fundraising amount of RMB 257.3491 million. After deducting issuance costs of RMB 37.3491 million, the actual amount raised was RMB 220 million. The funds were received in January 2014 and verified by Beijing Xinghua Accounting Firm (Special General Partnership) with verification report No. 01010005. The company has adopted a dedicated account management approach for the raised funds.
(2) Usage and Balance of Raised Funds
In 2014, the company initially invested RMB 84.0737 million using self-raised funds to replace the initial investment amount of the fundraising project. On July 7, 2014, the 11th meeting of the third board of directors approved a proposal to temporarily supplement working capital with RMB 20 million of idle raised funds. The company returned RMB 20 million to the dedicated account on January 4, 2015. The total amount used from the raised funds in 2014 was RMB 102.5238 million, verified by Beijing Xinghua Accounting Firm with verification report No. 01010026.
In 2015, the usage of raised funds was as follows:
- Direct investment in fundraising projects amounted to RMB 1.3413 million.
- On July 10, 2015, the 19th meeting of the third board of directors approved a proposal to change the use of raised funds. The company terminated the 500kV and below magnetic control parallel reactor project and changed the remaining funds to permanently supplement working capital of RMB 35 million, with RMB 81.1349 million and interest used for external investment.
- As of July 31, 2015, the company had initially invested RMB 7.4652 million in the fundraising investment project using self-raised funds. As of the audit report date, the company had completed the replacement of the initial investment amount for the "external investment" project.
- In 2015, the company permanently supplemented working capital with RMB 35 million and used RMB 64.6831 million for external investment projects.
- The total amount used from the raised funds in 2015 was RMB 101.0244 million. After deducting the cumulative used amount, the remaining principal balance of the raised funds was RMB 16.4518 million, with interest income of RMB 1.3366 million. The balance in the dedicated account as of December 31, 2015, was RMB 17.7884 million.