Zhejiang Merchants Securities Co., Ltd. (hereinafter referred to as "Zhejiang Merchants Securities" or "the Sponsor") is the sponsor for Shuangle Pigment Co., Ltd. (hereinafter referred to as "Shuangle" or "the Company") for the issuance of convertible corporate bonds to unspecified objects in 2025. In accordance with the "Regulations on the Management of Securities Issuance and Listing Sponsorship," "Guidelines for the Supervision of Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds," "Shenzhen Stock Exchange GEM Listing Rules," and "Shenzhen Stock Exchange Self-Regulatory Guidelines No. 2 - Standard Operations for GEM Listed Companies," the Sponsor has conducted a verification of Shuangle's use of idle raised funds for cash management. The specific verification situation is as follows:
I. Basic Situation of Raised Funds With the approval from the China Securities Regulatory Commission regarding the registration of Shuangle's issuance of convertible corporate bonds to unspecified objects (Zheng Jian Xu Ke [2025] No. 2678), Shuangle will issue 8,000,000 convertible bonds at a par value of RMB 100 each, raising a total of RMB 800,000,000. After deducting issuance costs of RMB 8,754,500 (excluding tax), the actual net raised funds amount to RMB 791,245,500. The raised funds were transferred to the Company's designated account on January 5, 2026, and the accounting firm Lixin has verified the actual amount raised and issued a "Verification Report" (Xinhui Report [2026] No. ZA10008). The Company has deposited the raised funds in a special account opened for this issuance and manages the storage and use of the raised funds in a dedicated manner, having signed a "Tripartite Supervision Agreement on Raised Funds" with the Sponsor and the commercial bank holding the raised funds.
II. Use of Raised Funds According to the "Prospectus for the Issuance of Convertible Bonds by Shuangle Pigment Co., Ltd. to Unspecified Objects," the raised funds, after deducting issuance costs, will be used for the following projects: