Verification Opinion of Changjiang Securities on Houp Clean Energy's Use of Own Funds to Purchase Financial Products
Changjiang Securities Co., Ltd. (hereinafter referred to as "Changjiang Securities" or "the Sponsor") is the sponsor for Houp Clean Energy (Group) Co., Ltd. (hereinafter referred to as "Houp" or "the Company"). In accordance with relevant laws, regulations, and normative documents such as the "Administrative Measures for Sponsorship of Securities Issuance and Listing," the "Shenzhen Stock Exchange GEM Listing Rules," and the "Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies," the Sponsor has conducted a prudent verification of the Company's use of its own funds to purchase financial products and presents the following verification opinion:
I. Overview of Investment
(1) Investment Amount and Purpose
To improve fund utilization efficiency and reasonably utilize idle funds without affecting the Company's normal production and operations, the Company and its controlling subsidiaries plan to use a maximum of RMB 400 million of their own idle funds to purchase financial products that are highly secure, liquid, and low-risk, in order to increase the returns on the Company's cash assets. The funds can be used on a rolling basis. The use of own funds to purchase financial products will not affect the Company's main business operations, and the Company will arrange fund usage reasonably.
(2) Types of Investments
To control risks, the Company and its controlling subsidiaries will invest in financial products that are highly secure, liquid, and low-risk.
(3) Investment Duration
The investment period for the financial products will be from the date of approval by the Board of Directors until the next annual Board meeting re-evaluates this matter. If the maturity date of a single product is later than the review period, it will automatically extend to the maturity date of the investment. Within the above limits and duration, funds can be used on a rolling basis.