CITIC Securities Co., Ltd. Special Verification Report on the Storage, Management, and Use of Raised Funds of Yangling Meichuang New Materials Co., Ltd. in 2025
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor"), as the continuing supervision institution for the initial public offering and listing on the ChiNext of Yangling Meichuang New Materials Co., Ltd. (hereinafter referred to as "Meichuang Shares" or "the Company"), in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Supervision Rules for the Management of Raised Funds of Listed Companies," the "ChiNext Stock Listing Rules of the Shenzhen Stock Exchange," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 13 — Sponsorship Business," has verified the storage, management, and use of raised funds of Meichuang Shares in 2025. The details are as follows:
I. Basic情况 of Raised Funds
(I) Amount of Raised Funds and Time of Receipt
In July 2020, with the approval of the China Securities Regulatory Commission's "Approval for the Registration of the Initial Public Offering of Shares of Yangling Meichuang New Materials Co., Ltd." (Zheng Jian Xu Ke [2020] No. 1564), Yangling Meichuang New Materials Co., Ltd. publicly issued 40.01 million ordinary shares (A shares) at a par value of RMB 1.00 per share and an issuance price of RMB 43.76 per share. The total raised funds amounted to RMB 175,083.76 million. After deducting related issuance expenses of RMB 10,330.34 million, the net amount of raised funds was RMB 164,753.42 million.
On August 10, 2020, the Company received a total of RMB 175,083.76 million in raised funds. According to the agreement signed between the Company and the Sponsor (underwriter) CITIC Securities, after CITIC Securities deducted the underwriting and sponsorship fees not yet paid by the Company (excluding tax) totaling RMB 7,116.62 million, the remaining raised funds of RMB 167,967.14 million were transferred to the special account for raised funds opened by the Company.
The above-mentioned receipt of raised funds was audited by Lixin Zhonglian Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Lixin Zhonglian"), who issued the "Capital Verification Report" (Lixin Zhonglian Yan Zi [2020] D-0029). The Company has implemented a special account storage system and signed a tripartite supervision agreement for raised funds with the Sponsor and the commercial banks where the raised funds are deposited.
(II) Amount of Raised Funds Used in Previous Years
As of December 31, 2024, the cumulative amount of raised funds invested was RMB 140,955.26 million. The "High-Efficiency Diamond Wire Project" was completed, and the remaining raised funds of RMB 32,788.12 million were permanently supplemented to working capital. The balance of raised funds was RMB 36,407.10 million (net of interest income after deducting bank handling fees).
(III) Amount of Raised Funds Used in the Current Year and Year-End Balance
During the reporting period, the Company invested RMB 2,503.34 million in raised funds, paid handling fees of RMB 0.14 million, received interest income from deposits of RMB 7.86 million, and received income from wealth management of RMB 718.46 million. As of December 31, 2025, the cumulative investment of raised funds was RMB 143,458.60 million, and the balance of raised funds was RMB 34,629.94 million. The specific details are as follows: