Special Verification Report on the Storage, Management, and Use of Funds Raised by Sangfor Technologies Co., Ltd. for 2025
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "Sponsor") has conducted a verification of the storage, management, and use of funds raised by Sangfor Technologies Co., Ltd. (hereinafter referred to as "Sangfor" or "Company") in accordance with relevant regulations including the "Administrative Measures for Securities Issuance and Listing Sponsorship," the "Shenzhen Stock Exchange GEM Listing Rules," and the "Self-Regulatory Guidelines for Listed Companies No. 13 - Sponsorship Business." The following verification opinions are presented:
1. Basic Information on the Raised Funds
(1) Actual Amount Raised and Timing of Fund Arrival
- In 2020, the Company raised funds through a private placement of 4,801,848 ordinary shares at a price of RMB 185.01 per share, totaling RMB 888,389,898.48. After deducting issuance costs of RMB 7,147,674.73, the net amount raised was RMB 881,242,223.75. The funds were received on November 23, 2020, and verified by Zhitong Accounting Firm (Special General Partnership) with verification report No. Zhitong Yan Zi (2020) No. 441ZC00453.
- In 2023, the Company issued 12,147,560 convertible bonds at a face value of RMB 100 each, raising a total of RMB 1,214,756,000.00. After deducting issuance costs of RMB 9,036,166.38, the net amount raised was RMB 1,205,719,833.62. The funds were received on August 2, 2023, and verified by Zhitong Accounting Firm (Special General Partnership) with verification report No. Zhitong Yan Zi [2023] No. 441C000383.
(2) Amount Used in Previous Years, Amount Used in the Reporting Period, and Current Balance
- As of December 31, 2025, the total amount used from the funds raised in 2020 was RMB 815,127,179.82, including RMB 745,145,773.89 used in previous years and RMB 69,981,405.93 used in the reporting period. The usage and ending balance of the funds raised in 2020 are as follows:
| Item | Amount (RMB) |
|---|---|
| Total amount raised | 888,389,898.48 |
| Less: Underwriting fees deducted | 3,771,466.55 |
| Less: Other issuance costs | 3,376,208.18 |
| Net amount raised | 881,242,223.75 |
| Plus: Interest income and investment income after deducting fees | 44,063,649.25 |
| Plus: Remaining balance of unpaid issuance costs | 220,310.54 |
| Less: Amount replaced with self-raised funds for pre-invested projects | 89,111,132.41 |
| Less: Total amount invested from raised funds (excluding prior replacement amounts) | 726,016,047.41 |
| Less: Permanent replenishment of funds for completed investment projects | 110,399,003.72 |
| Ending balance of raised funds account | 0 |
- As of December 31, 2025, the total amount used from the funds raised in 2023 was RMB 901,313,195.02 (excluding issuance costs), including RMB 840,173,639.97 used in previous years and RMB 61,139,555.05 used in the reporting period. The usage and ending balance of the funds raised in 2023 are as follows:
| Item | Amount (RMB) |
|---|---|
| Total amount raised | 1,214,756,000.00 |
| Less: Underwriting fees deducted | 5,156,983.02 |
| Actual amount received | 1,209,599,016.98 |
| Less: Amount replaced with self-raised funds for other issuance costs | 3,879,183.36 |
| Net amount raised | 1,205,719,833.62 |
| Less: Amount replaced with self-raised funds for pre-invested projects | 487,954,203.67 |
| Less: Total amount invested from raised funds (excluding prior replacement amounts) | 413,358,991.35 |
| Plus: Interest income and investment income after deducting fees | 24,149,191.00 |
| Ending balance of raised funds account | 328,555,829.60 |
2. Storage and Management of Raised Funds
To standardize the management and use of raised funds and protect the interests of investors, the Company has established a "Management System for the Use of Raised Funds," which clearly stipulates the storage, approval, use, management, and supervision of raised funds to ensure their standardized use.