Changjiang Securities Co., Ltd. (hereinafter referred to as "Changjiang Securities" or "the Sponsor") acted as the sponsor for Shanghai Kaixin Separation Technology Co., Ltd. (hereinafter referred to as "Shanghai Kaixin" or "the Company") during its initial public offering and continuous supervision phase on the Growth Enterprise Market. In accordance with relevant laws and regulations, including the "Regulations on the Management of Sponsorship for Securities Issuance and Listing," the "Regulations on the Supervision of Funds Raised by Listed Companies," the "Listing Rules for the Growth Enterprise Market of the Shenzhen Stock Exchange," and the "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Companies," we conducted a verification of the storage and use of funds raised by Shanghai Kaixin for 2025. The specific situation is as follows:
1. Basic Situation of the Raised Funds
With the approval of the China Securities Regulatory Commission regarding the registration of Shanghai Kaixin's initial public offering (Approval No. [2020] 2122), and with the consent of the Shenzhen Stock Exchange, Shanghai Kaixin publicly issued 15,950,000 shares of common stock (A shares) at a par value of RMB 1 per share, with an issue price of RMB 24.43 per share on September 23, 2020. As of September 29, 2020, the total funds raised amounted to RMB 389,658,500, with issuance expenses of RMB 36,736,588.74, resulting in a net amount of RMB 352,921,911.26. On September 30, 2020, Dahua Certified Public Accountants (Special General Partnership) issued Verification Report No. [2020] 000581, confirming the receipt of the raised funds. As of December 31, 2025, the Company had cumulatively used RMB 186,293,625.59 of the raised funds, including RMB 1,500,928.66 used in the current year. The remaining balance of the raised funds should be RMB 193,991,011.18 (including net bank interest income of RMB 6,892,361.44 and investment income from financial management of RMB 20,470,364.07).
As of December 31, 2025, the actual unutilized balance of the raised funds was RMB 197,289,302.82, which is RMB 3,298,291.64 higher than the aforementioned balance due to RMB 3,298,291.64 of issuance expenses being paid with self-raised funds. The original plan was to replace the self-raised funds of RMB 3,293,396.20 with raised funds, and the remaining RMB 4,895.44 will not be replaced. As of December 31, 2025, the RMB 3,293,396.20 of raised funds had not been transferred from the Company's special account for raised funds, and the Company decided not to use the raised funds for replacement in accordance with the relevant provisions of the "Regulations on the Supervision of Funds Raised by Listed Companies."