Verification Opinion of CITIC Securities Co., Ltd. on Dazhu CNC Technology Co., Ltd.'s Temporary Use of Idle A-Share Funds
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "the Sponsor") is the sponsor for the initial public offering of Shenzhen Dazhu CNC Technology Co., Ltd. (hereinafter referred to as "Dazhu CNC" or "the Company") on the ChiNext board. In accordance with relevant laws, regulations, and normative documents, CITIC Securities has conducted a prudent verification of Dazhu CNC's plan to temporarily use part of the idle A-share raised funds for working capital. The verification opinions are as follows:
1. Basic Situation of A-Share Raised Funds
According to the China Securities Regulatory Commission's approval (Zheng Jian Xu Ke [2021] No. 4134) for the registration of Dazhu CNC's initial public offering, the Company issued 42 million shares of ordinary RMB common stock (A-shares). Based on the verification report issued by Rongcheng Accounting Firm (Special General Partnership), as of February 22, 2022, the total amount of raised funds was RMB 3,215,520,000.00, with issuance costs (excluding tax) of RMB 133,741,703.26, resulting in a net amount of RMB 3,081,778,296.74. After deducting the funding needs for investment projects, the excess raised funds (hereinafter referred to as "excess funds") amounted to RMB 1,375,246,296.74. All raised funds have been deposited in a special account established by the Company, and a tripartite supervision agreement has been signed with the sponsor and the commercial bank holding the raised funds.
2. A-Share Raised Funds Usage Plan and Status
(1) Usage Plan of Raised Funds
According to the Company's A-share prospectus, the raised funds, after deducting issuance costs, will be invested in the following projects: