Guosen Securities Co., Ltd. Audit Report on the Termination of Partial Investment Projects of Ningbo Color Masterbatch Co., Ltd. and Permanent Supplementation of Remaining Raised Funds to Working Capital
According to the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Supervision Rules for Listed Company Raised Funds," "Shenzhen Stock Exchange GEM Stock Listing Rules," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 2 - Norms for Operations of GEM Listed Companies," as the sponsor of Ningbo Color Masterbatch Co., Ltd. ("Ningbo Color Masterbatch" or "the Company") for its initial public offering of stocks on the GEM of the Shenzhen Stock Exchange, Guosen Securities Co., Ltd. ("Guosen Securities" or "the Sponsor") has conducted a thorough and prudent review of the Company's proposal to terminate partial investment projects and permanently supplement the remaining raised funds to working capital. The details of the review are as follows:
I. Basic Situation of Raised Funds
With the approval of the China Securities Regulatory Commission's "Approval for the Registration of the Initial Public Offering of Stocks of Ningbo Color Masterbatch Co., Ltd." (Securities Regulatory License [2021] No. 1866), Ningbo Color Masterbatch Co., Ltd. issued 20 million shares of RMB ordinary shares (A shares) at a par value of RMB 1.00 per share and an issuance price of RMB 28.94 per share. The total amount of raised funds was RMB 578.80 million. After deducting issuance expenses of RMB 68.2504 million, the net amount of raised funds was RMB 510.5496 million. Lixin Certified Public Accountants (Special General Partnership) audited the capital contribution of the Company's initial public offering of stocks on June 24, 2021, and issued the "Capital Verification Report" (Xin Hui Shi Bao Zi [2021] No. ZF10771). According to their verification, all the aforementioned raised funds were in place as of June 23, 2021. The Company has established special accounts for the raised funds to ensure their dedicated use, and has signed a tripartite custody agreement for the raised funds with the Sponsor and the custodian bank, strictly adhering to the regulations for the use of raised funds.