Guotai Junan Securities Co., Ltd.
Audit Report on the Conclusion of Ningbo ZG Technology Co., Ltd.'s Raised Funds Project and the Permanent Supplement of Idle Raised Funds to Working Capital and Cancellation of Raised Funds Special Accounts
Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "the Sponsor") as the sponsor and continuous supervision institution for the targeted issuance of shares by Ningbo ZG Technology Co., Ltd. (hereinafter referred to as "ZG Technology" or "the Company") in 2021, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Listing Rules of the Shenzhen Stock Exchange for the ChiNext Market," the "ChiNext Market Listed Company Regulatory Guidelines No. 2 - Standardized Operation of ChiNext Market Listed Companies," and other relevant regulations, has prudently audited the conclusion of ZG Technology's raised funds project and the permanent supplement of idle raised funds to working capital and cancellation of raised funds special accounts. The details are as follows:
I. Basic情况 of Raised Funds
According to the "Approval Letter on the Registration of Ningbo ZG Technology Co., Ltd.'s Targeted Issuance of Shares" (Document No. Zhengjian Xuke [2021] 3476) issued by the China Securities Regulatory Commission, the Company issued 27,920,000 ordinary shares (A shares) to specific objects, with a total raised funds of RMB 698,000,000.00. After deducting issuance expenses of RMB 9,670,238.68, the net raised funds amounted to RMB 688,329,761.32. The arrival of these raised funds was verified by Lixin Certified Public Accountants (Special General Partnership), who issued the Capital Verification Report No. XH-Reporter [2021] No. ZF11065.
The raised funds have been fully deposited in the special raised funds accounts. The Company and its relevant subsidiaries have signed raised funds supervision agreements with the commercial banks where the funds are deposited and the sponsor.
II. Use of Raised Funds
According to the "Prospectus for Ningbo ZG Technology Co., Ltd.'s Targeted Issuance of A Shares in 2021," the raised funds from the Company's targeted issuance of shares, after deducting issuance expenses, will be invested in the following projects:
| No. | Project Name | Total Project Investment (RMB Million) | Proposed Raised Funds Investment (RMB Million) | Amount Invested as of 2026.3.31 (RMB Million) |
|---|---|---|---|---|
| 1 | Optical Film Production Base Project | 37,000.00 | 30,000.00 | 22,714.03 |
| 2 | Solar Encapsulation Film Production Base Project | 29,000.00 | 20,000.00 | 17,597.36 |
| 3 | Supplement Working Capital | 20,000.00 | 18,832.98 | 18,900.00 [Note] |
| Total | 86,000.00 | 68,832.98 | 59,211.39 |
Note: Includes interest income.
III. Conclusion of Raised Funds Projects and Surplus Situation
(I) Use of Funds for Concluded Raised Funds Projects
As of now, the "Optical Film Production Base Project" and the "Solar Encapsulation Film Production Base Project" have reached the intended state of use and meet the conditions for conclusion. As of March 31, 2026, the Company's relevant raised funds usage and surplus situation is as follows: