Industrial Securities Co., Ltd.
Audit Report on Ningbo Jialian Technology Co., Ltd. Terminating Investment Project and Permanently Supplementing Working Capital with Remaining Raised Funds
As the sponsor and continuous supervision institution for the issuance of convertible corporate bonds by Ningbo Jialian Technology Co., Ltd. (hereinafter referred to as "Jialian Technology" or "the Company") to non-specific objects, Industrial Securities Co., Ltd. (hereinafter referred to as "Industrial Securities" or "the Sponsor") has, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Supervision Regulations for Raised Funds of Listed Companies," "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 - Normative Operation of GEM Listed Companies," and other relevant laws and regulations, audited the Company's termination of the "100,000 tons/year bagasse biodegradable environmentally friendly material product project" and the permanent supplementation of working capital with the remaining raised funds. The audit findings and opinions are as follows:
I. Basic Situation of Raised Funds
According to the "Approval of the Registration of Ningbo Jialian Technology Co., Ltd. for Issuing Convertible Corporate Bonds to Non-Specific Objects" issued by the China Securities Regulatory Commission on November 17, 2023 (Securities Regulatory License [2023] No. 2602), and with the consent of the Shenzhen Stock Exchange, the Company issued 7,500,000 convertible corporate bonds to non-specific objects on December 22, 2023, at an issuance price of 100.00 RMB per bond. The total raised funds amounted to 750,000,000.00 RMB. After deducting relevant issuance expenses (excluding tax) of 6,143,886.79 RMB, the net raised funds amounted to 743,856,113.21 RMB. Tianzhi International Certified Public Accountants (Special General Partnership) audited the receipt of the raised funds and issued the "Capital Verification Report" (Tianzhi Accounting Letter [2023] No. 54463) on December 28, 2023.
In accordance with the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 - Normative Operation of GEM Listed Companies" and relevant regulations, the Company has managed the raised funds through dedicated accounts. The Company, the Sponsor, and the banks where the raised funds are deposited have signed the "Raised Funds Tripartite Supervision Agreement" and the "Raised Funds Quadrupartite Supervision Agreement."
II. Raised Funds Investment Projects and Usage
(I) Usage of Raised Funds
According to the "Prospectus for the Issuance of Convertible Corporate Bonds to Non-Specific Objects by Ningbo Jialian Technology Co., Ltd." and the Company's actual raised funds situation, the intended uses of the raised funds are as follows:
| Serial No. | Project Content | Net Raised Funds (RMB) | Cumulative Investment Amount as of July 31, 2026 | Remaining Amount (including deposit interest and wealth management income) (RMB) |
|---|---|---|---|---|
| 1 | 100,000 tons/year bagasse biodegradable environmentally friendly material product project | 74,385.61 | 59,981.35 | 14,826.90 |
| Total | 74,385.61 | 59,981.35 | 14,826.90 |
(II) Storage of Raised Funds in Dedicated Accounts
As of July 31, 2026, the opening and current deposit balances of the Company's raised funds dedicated accounts are as follows: