Zhejiang Merchants Securities Co., Ltd. (hereinafter referred to as "Zhejiang Merchants Securities" or "the Sponsor") is the sponsor for the initial public offering and listing of Huabao Fragrance Co., Ltd. (hereinafter referred to as "Huabao" or "the Company"). In accordance with the "Regulations on the Management of Securities Issuance and Listing Sponsorship" and the "Regulations on the Supervision of Fundraising by Listed Companies," the Sponsor has conducted a prudent verification of the Company's adjustment to the investment plan progress. The verification results and opinions are as follows:
I. Basic Situation of Fundraising
According to the approval document issued by the China Securities Regulatory Commission on February 2, 2018, Huabao Fragrance Co., Ltd. was approved for its initial public offering of 61,590,000 ordinary shares at a price of RMB 38.60 per share, raising a total of RMB 2,377,374,000. After deducting issuance expenses of RMB 65,531,881.14, the actual net proceeds amounted to RMB 2,311,842,118.86 (hereinafter referred to as "the raised funds"). These funds were received on February 26, 2018, and were verified by PricewaterhouseCoopers Zhong Tian LLP, which issued verification report No. 0108 (2018). The Company has opened a special account for the raised funds in accordance with relevant laws and regulations and has signed a tripartite supervision agreement with the Sponsor and the bank where the special account is held.
II. Use of Raised Funds
As of December 31, 2025, the status of the Company's unfinished fundraising projects is as follows:
| Project Name | Implementing Entity | Total Proposed Investment (10,000 RMB) | Expected Date of Operational Status |
|---|---|---|---|
| Huabao Technology Innovation Center and Supporting Facilities Project | Huabao Fragrance Co., Ltd. | 44,997.42 | June 30, 2029 |
| Huabao Digital Transformation Project | Huabao Fragrance Co., Ltd. | 6,000.00 | December 31, 2026 |
III. Adjustment of Investment Plan Progress
(1) Adjusted Investment Plan Progress
Unit: 10,000 RMB