Verification Report on Share Transfer Inquiry by Shareholder of Tai Xiang Industrial Co., Ltd. to Specific Institutional Investors
Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities" or "Organizing Broker") has been entrusted to assist Jiang Xue (hereinafter referred to as "Transferor") in the inquiry-based transfer (hereinafter referred to as "Inquiry Transfer") of shares held in Tai Xiang Industrial Co., Ltd. (hereinafter referred to as "Company" or "Tai Xiang Shares") prior to its initial public offering to specific institutional investors. After verification, Huatai United Securities reports on whether the Transferor and the Transferee meet the requirements of the "Shenzhen Stock Exchange Self-Regulatory Guidelines No. 16 - Inquiry and Allocation Method for Share Transfers by Shareholders of Growth Enterprise Market Listed Companies (2025 Revision)" (hereinafter referred to as "Guideline No. 16"), and whether the inquiry, transfer process, and results are fair and just, in accordance with the provisions of Guideline No. 16.
I. Overview of the Inquiry Transfer
(1) Shareholding Status of the Transferor
As of March 23, 2025, the shareholding status of the Transferor in the Company prior to the initial public offering is as follows:
| No. | Shareholder Name | Number of Shares (shares) | Shareholding Ratio |
|---|---|---|---|
| 1 | Jiang Xue | 12,241,730 | 12.25% |
(2) Quantity of Shares for Inquiry Transfer
The upper limit for the shares to be inquired for transfer is 2,100,000 shares, with the final actual transfer quantity being 2,100,000 shares. After allocation to the Transferee, the inquiry transfer situation is as follows:
| No. | Shareholder Name | Number of Transferred Shares (shares) | Proportion of Total Share Capital | Proportion of Held Shares | Source of Transferred Shares |
|---|---|---|---|---|---|
| 1 | Jiang Xue | 2,100,000 | 2.10% | 17.15% | Pre-IPO Shares |
(3) Method of Transfer
The Transferor, as a pre-IPO shareholder of Tai Xiang Shares listed on the Shenzhen Stock Exchange's Growth Enterprise Market, transfers shares through inquiry to specific institutional investors in accordance with the relevant provisions of Guideline No. 16.
(4) Determination Principle for the Lower Limit of Transfer Price
The Transferor and the Organizing Broker, considering the Transferor's own funding needs and other factors, negotiated to determine the lower limit of the inquiry transfer price. This lower limit is not less than 70% of the average trading price of Tai Xiang Shares over the 20 trading days prior to the date of sending the "Subscription Invitation Letter" (March 23, 2026, inclusive), in compliance with the provisions regarding the lower limit of inquiry transfer prices in Guideline No. 16.
(5) Principles for Determining the Transfer Price
- Determination of Inquiry Transfer Price and Allocation Principles: The Organizing Broker conducted a bidding process for record-keeping. The allocation adopts the principles of "subscription price priority, subscription quantity priority, and time priority of receiving the 'Subscription Quotation Form'." If the total valid subscription shares exceed the upper limit of 2,100,000 shares, the determination principles for the inquiry transfer price, subscription objects, and allocated share quantities are as follows (in order of priority):
- (1) Subscription price priority: Sorted from high to low based on declared prices;
- (2) Subscription quantity priority: For the same declared price, sorted from large to small based on subscription quantity;
- (3) Time priority of receiving the 'Subscription Quotation Form': For the same declared price and subscription quantity, sorted by the time the 'Subscription Quotation Form' was sent to the designated project email for this inquiry transfer (if multiple forms were sent, the first valid quotation received by email is considered), sorted in chronological order. Valid subscriptions received earlier will be prioritized for allocation.