Huatai United Securities Co., Ltd.
Audit Report on Pudong Testing Group Co., Ltd.'s Use of a Portion of Raised Funds to Provide Loans to Third-Level Wholly-Owned Subsidiaries for Investment Projects
As the sponsor of Pudong Testing Group Co., Ltd. (hereinafter referred to as "Pudong Testing" or "the Company") for its private placement of shares, Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities" or "the Sponsor") has conducted prudent due diligence in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Supervision Regulations for Listed Company Raised Funds," "Shenzhen Stock Exchange GEM Stock Listing Rules," "Shenzhen Stock Exchange GEM Listed Company Self-Regulatory Guidelines No. 2 - Standardized Operation of GEM Listed Companies," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 13 - Sponsorship Business," and other relevant laws and regulations, on Pudong Testing's use of a portion of raised funds to provide loans to its third-level wholly-owned subsidiaries for investment projects. The specific audit findings are as follows:
I. Basic Situation of Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval for the Registration of Pudong Testing Group Co., Ltd.'s Private Placement of Shares" (Securities Regulatory License (2022) No. 210), Pudong Testing planned to issue no more than 41,106,171 new shares to raise funds for the Pudong Testing Group Shandong Headquarters Building and R&D Testing Center Project, the Pudong Northwest Headquarters Building (Xi'an) Project, and the Working Capital Supplement Project. The Company actually issued 22,418,670.00 ordinary shares of RMB, with an issuance price of RMB 55.30 per share, raising a total of RMB 1,239,752,451.00. After deducting the sponsor and underwriting fees (including tax) of RMB 11,518,019.61, the actual amount received from raised funds was RMB 1,228,234,431.39. The sponsor and underwriting fees and other expenses for this private placement of shares totaled RMB 11,908,483.18 (excluding VAT), and the net amount of raised funds was RMB 1,227,843,967.82.
Lixin Certified Public Accountants (Special General Partnership) audited the receipt of funds for Pudong Testing Group Co., Ltd.'s private placement of shares on March 23, 2022, and issued the "Capital Verification Report of Pudong Testing Group Co., Ltd." (Xin Hui Shi Bao Zi [2022] No. ZG10297).
II. Basic Situation of Raised Funds Investment Projects
After deducting issuance expenses, the raised funds from Pudong Testing's private placement of shares will be invested in the following projects: