Annual Report on the Storage, Management, and Use of Raised Funds
To all shareholders of Wuxi Xian Dao Intelligent Equipment Co., Ltd.:
We have audited the attached special report on the storage, management, and use of raised funds for the year 2025 prepared by the Board of Directors of Wuxi Xian Dao Intelligent Equipment Co., Ltd. (hereinafter referred to as "Xian Dao Intelligent" or "the Company").
1. Management's Responsibility
The management of Xian Dao Intelligent is responsible for preparing the special report in accordance with the "Regulations on the Supervision of Raised Funds by Listed Companies" issued by the China Securities Regulatory Commission, the "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," and relevant announcement format requirements, ensuring that its content is true, accurate, and complete, without any false records, misleading statements, or significant omissions.
2. Responsibility of the Certified Public Accountants
Our responsibility is to perform the assurance engagement in accordance with the "Standards for Other Assurance Services No. 3101 - Assurance Engagements Other than Audits or Reviews of Historical Financial Information." This standard requires us to plan and perform the assurance work to obtain reasonable assurance that there are no material misstatements in the information subject to assurance. During the assurance process, we implemented procedures, including verifying accounting records, that we deemed necessary. We believe that the evidence we obtained is sufficient and appropriate to provide a basis for our assurance opinion.
3. Assurance Conclusion
We believe that the special report prepared by the Board of Directors of Xian Dao Intelligent on the storage, management, and use of raised funds for the year 2025 has been prepared in accordance with the "Regulations on the Supervision of Raised Funds by Listed Companies" issued by the China Securities Regulatory Commission, the "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange," and relevant announcement format requirements, and fairly reflects, in all material respects, the storage, management, and use of raised funds by Xian Dao Intelligent for the year 2025.
4. Limitation on the Use of the Report
This assurance report is solely for the purpose of disclosure in Xian Dao Intelligent's 2025 annual report and may not be used for any other purpose. We agree that this assurance report will be submitted as a necessary document along with other documents for Xian Dao Intelligent's 2025 annual report.
Special Report on the Storage, Management, and Use of Raised Funds by the Board of Directors of Wuxi Xian Dao Intelligent Equipment Co., Ltd.
The Company and all members of the Board of Directors guarantee that the content of the information disclosure is true, accurate, and complete, with no false records, misleading statements, or significant omissions. According to the "Regulations on the Supervision of Raised Funds by Listed Companies" issued by the China Securities Regulatory Commission, the "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange," and relevant announcement format requirements, the report on the storage, management, and use of raised funds for the year 2025 is as follows:
1. Basic Information on Raised Funds
(1) Situation of Raised Funds from the Public Issuance of Convertible Bonds in 2019
Approved by the China Securities Regulatory Commission on November 29, 2019, with the approval number [2019]2309, the Company publicly issued convertible bonds with a total face value of RMB 1,000,000,000.00, with a term of 6 years. The total amount raised from this public issuance of convertible bonds is RMB 1,000,000,000.00. The underwriting fees for this fundraising amounted to RMB 9,000,000.00, and other issuance expenses totaled RMB 1,731,367.34, with input tax on underwriting fees and other issuance expenses amounting to RMB 605,094.34. The actual net amount of raised funds after deducting the non-taxable underwriting fees and other non-taxable issuance expenses is RMB 989,873,727.00. The funds were received on December 17, 2019, and the situation of the raised funds has been verified by Tianzhi International Accounting Firm (Special General Partnership), which issued verification report number [2019]38412.