Verification Opinion of CITIC Securities Co., Ltd. on the Cancellation of Fundraising Accounts by Beijing Zhongke Runyu Environmental Technology Co., Ltd.
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") has conducted a prudent review of the cancellation of certain fundraising accounts and the permanent allocation of surplus funds to working capital for Beijing Zhongke Runyu Environmental Technology Co., Ltd. (hereinafter referred to as "Zhongke Environmental" or "the Company") in its capacity as the sponsor for the Company's initial public offering and listing on the Growth Enterprise Market, in accordance with relevant laws and regulations.
1. Basic Situation of Fundraising
The China Securities Regulatory Commission issued the "Approval on the Registration of Initial Public Offering of Stocks by Beijing Zhongke Runyu Environmental Technology Co., Ltd." (Zheng Jian Xu Ke [2022] No. 720), which approved the registration. The Shenzhen Stock Exchange also agreed to the Company’s initial public offering of 367,219,884 ordinary shares (A shares) with a par value of RMB 1.00 per share, at an issue price of RMB 3.82 per share. The total amount raised was RMB 1,402,779,956.88, with actual net proceeds of RMB 1,350,173,685.00 after deducting issuance expenses (excluding VAT) of RMB 52,606,271.88, including an oversubscription of RMB 160,173,685.00. The funds were transferred to the Company’s special fundraising account on July 4, 2022, and Dahua Certified Public Accountants (Special General Partnership) verified the funds' arrival and issued a verification report (Dahua Yan Zi [2022] No. 000399). The Company (including its holding companies) has signed a fundraising supervision agreement with the commercial banks holding the fundraising funds and the sponsor CITIC Securities.
2. Fundraising Investment Project Situation
According to the "Prospectus for Initial Public Offering of Stocks and Listing on the Growth Enterprise Market," the fundraising investment project situation is as follows:
| No. | Project Name | Proposed Investment (10,000 RMB) |
|---|---|---|
| 1 | Jin City Urban Household Waste Incineration Power Project | 34,000.00 |
| 2 | Government and Social Capital Cooperation Model for Mianyang Second Household Waste Incineration Power Project | 25,000.00 |
| 3 | Haicheng Household Waste Incineration Power Project | 35,000.00 |
| 4 | Supplement Working Capital and Repay Debts | 25,000.00 |
| Total | 119,000.00 |
Additionally, the situation of oversubscription funds investment projects is as follows: