China Merchants Securities Co., Ltd.
Regarding Dianlian Technology Co., Ltd. Audit Opinion on the Termination of the Initial Public Offering Project and the Permanent Supplementation of Working Capital and Cancellation of Special Accounts for Raised Funds
China Merchants Securities Co., Ltd. (hereinafter referred to as "China Merchants Securities" or "Sponsor") is the sponsor of Dianlian Technology Co., Ltd. (hereinafter referred to as "Dianlian Technology" or "the Company") for its initial public offering of shares (hereinafter referred to as "this Offering") and listing on the ChiNext market. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Supervision Regulations for Raised Funds of Listed Companies," "Shenzhen Stock Exchange ChiNext Listed Company Self-Regulatory Management Guide No. 2 - Standardized Operation of ChiNext Listed Companies," and other relevant laws and regulations, China Merchants Securities has audited the termination of Dianlian Technology's IPO project and the permanent supplementation of working capital and cancellation of special accounts for raised funds. The audit findings and opinions are as follows:
I. Basic情况 of Raised Funds
As approved by the China Securities Regulatory Commission's Approval Document No. [2017] 1102, the Company publicly issued 30,000,000 ordinary shares (A shares) to the public. The lead underwriter for this Offering was China Merchants Securities Co., Ltd. (hereinafter referred to as "China Merchants Securities" or "Sponsor"). The offering price was RMB 67.72 per share, with a total raised capital of RMB 2,031,600,000.00. After deducting underwriting and sponsorship fees of RMB 166,028,000.00, the raised funds amounted to RMB 1,865,572,000.00. After deducting other issuance expenses of RMB 15,301,753.06, the net raised funds were RMB 1,859,668,058.26. The receipt of these raised funds was verified by Lixin Certified Public Accountants (Special General Partnership), which issued an audit report No. [2017] ZA15659 on July 25, 2017. The Company implemented a special account deposit system for the raised funds and signed a tripartite custody agreement with the Sponsor and the commercial banks holding the raised funds.
According to the "Prospectus for the Initial Public Offering of Dianlian Technology Co., Ltd. and Listing on the ChiNext Market," the changes in the investment projects of the raised funds and the Company's subsequent investment projects are as follows:
| No. | Project | Planned Investment (RMB 10,000) | Amount of Raised Funds Used (RMB 10,000) |
|---|---|---|---|
| 1 | Capital injection into Hefei Dianlian for the connector industrial base construction project | 20,000.14 | 20,000.14 |
| 2 | Shenzhen Headquarters Production Base Technology Upgrade and Capacity Expansion Project | 76,896.99 | 76,896.99 |
| 3 | R&D Center Upgrade and Production Line Automation Upgrade Project | 17,664.24 | 12,882.39 |
| 4 | 5G High-Performance Materials, RF, and Interconnection Industry Base Project | 82,383.00 | 82,383.00 |
II. Management and Custody of Raised Funds
- Management of Raised Funds