Huajin Securities Co., Ltd.
Special Review Opinion on the Storage, Management, and Use of Raised Funds by Puyang Hecheng Electronic Materials Co., Ltd. in 2025
Huajin Securities Co., Ltd. (hereinafter referred to as "Huajin Securities" or "Sponsor") is the continuous sponsor of Puyang Hecheng Electronic Materials Co., Ltd. (hereinafter referred to as "Puyang Hecheng" or "the Company"). In accordance with the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing," the "Shenzhen Stock Exchange GEM Stock Listing Rules (2025 Revision)," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 2 - GEM Listed Company Normative Operation (2025 Revision)," and the "Supervision Rules for the Management of Raised Funds of Listed Companies" (CSRC Announcement [2025] No. 10), and other relevant laws, regulations, and normative documents, Huajin Securities has prudently reviewed the storage, management, and use of raised funds by Puyang Hecheng in 2025 and hereby issues its review opinion as follows:
I. Basic Situation of Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Puyang Hecheng Electronic Materials Co., Ltd.'s Issuance of Shares to Specific Objects" (Zhengjian Xuke [2021] No. 818), Puyang Hecheng issued 37,243,947 ordinary shares of RMB common stock (A shares) to specific objects at an issuance price of RMB 21.48 per share. The total amount of raised funds was RMB 799,999,981.56. After deducting issuance expenses, the net amount of raised funds was RMB 788,898,808.02. The arrival of these raised funds was verified by the "Capital Verification Report" (Xin Cai Shi Bao Zi [2021] No. ZB11170) issued by Lixin Certified Public Accountants (Special General Partnership) on May 27, 2021.
In 2025, RMB 10.7924 million of raised funds were actually used, and a cumulative RMB 667.4536 million of raised funds (including returns) were used. Among them, RMB 445.8128 million was used for the maleic anhydride derivative and functional material intermediate and R&D center project, and RMB 221.6408 million (including returns) was used for the working capital replenishment project. As of December 31, 2025, the remaining raised funds in the special account for raised funds and the remaining raised funds have been transferred to the company's own bank accounts for permanent replenishment of working capital, and the relevant raised fund special accounts have all been cancelled.
II. Storage and Management of Raised Funds
In accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Shenzhen Stock Exchange GEM Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 2 - GEM Listed Company Normative Operation," as well as the company's articles of association, and in conjunction with the company's actual situation, the company has formulated the "Raised Funds Management System." In accordance with the "Raised Funds Management System," the company stores raised funds in special accounts, goes through approval procedures, supervises the management and use of raised funds, and ensures that funds are used for their intended purpose. The company has been able to store, use, and manage raised funds in accordance with the raised fund supervision agreement and relevant laws and regulations, and has fulfilled its relevant obligations without any illegal or irregular activities.