Western Securities Co., Ltd.
Opinion on Hunan Jiudian Pharmaceutical Co., Ltd.'s Special Due Diligence for Cash Management of Idle Raised Funds
Western Securities Co., Ltd. (hereinafter referred to as "Western Securities" or "Sponsor") is the sponsor for Hunan Jiudian Pharmaceutical Co., Ltd. (hereinafter referred to as "Jiudian Pharmaceutical" or "the Company") in its issuance of convertible corporate bonds to unspecified targets. In accordance with the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing," "Supervision Rules for the Management of Raised Funds by Listed Companies," "Shenzhen Stock Exchange GEM Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidance No. 2 - Norms for the Operation of GEM Listed Companies," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidance No. 13 - Sponsorship Business," among other relevant regulations, Western Securities has prudently reviewed Jiudian Pharmaceutical's use of idle raised funds for cash management. The review findings are as follows:
I. Basic Situation of Raised Funds
As approved by the China Securities Regulatory Commission's "Approval on the Registration of Hunan Jiudian Pharmaceutical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Targets" (Zhengjian Xu Ke [2021] No. 62), the Company was approved to issue convertible corporate bonds to unspecified targets with a total amount not exceeding RMB 270,000,000.00. In this issuance of convertible corporate bonds to unspecified targets, each bond has a face value of RMB 100.00, with an issuance volume of 2,700,000.00 bonds. The issuance price is RMB 100 per bond, and the total raised funds amounted to RMB 270,000,000.00. After deducting issuance expenses (excluding tax) of RMB 7,379,028.29, the net amount of raised funds is RMB 262,620,971.71. These raised funds were transferred to the Company's dedicated account for raised funds on April 8, 2021. They were audited by CNS Zhonghuan Certified Public Accountants (Special General Partnership), who issued the "Capital Verification Report" with the serial number Zhonghuan Yan Zi [2021] No. 1100011.
II. Use of Raised Funds