Verification Opinion
Guolian Minsheng Securities Co., Ltd. (hereinafter referred to as "Guolian Minsheng" or "the Sponsor") is the sponsor for Wuhan Huakang Century Clean Technology Co., Ltd. (hereinafter referred to as "Huakang Clean" or "the Company") for its initial public offering in 2022 and its issuance of convertible bonds to unspecified objects in 2024. In accordance with relevant regulations, including the "Regulations on the Management of Securities Issuance and Listing Sponsorship," "Regulations on the Supervision of Raised Funds of Listed Companies," "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," the Company’s use of part of its idle raised funds and its own funds for cash management has been verified. The specific circumstances of the verification are as follows:
1. Basic Situation of Raised Funds
With the approval of the China Securities Regulatory Commission regarding the registration of the issuance of convertible bonds to unspecified objects (Zheng Jian Xu Ke [2024] No. 220), the Company will issue 7.5 million convertible bonds on December 23, 2024, with a par value of RMB 100 each, raising a total of RMB 750,000,000.00. After deducting underwriting and sponsorship fees, accounting, legal, credit rating, and issuance fees (excluding VAT) totaling RMB 6,183,142.52, the actual net raised funds amount to RMB 743,816,857.48. The raised funds have been verified by Zhonghui Certified Public Accountants (Special General Partnership), which issued the "Verification Report No. 11046" on December 27, 2024. To standardize the management of raised funds and protect investors' rights, the Company and its subsidiaries have signed a raised funds supervision agreement with the sponsor and the bank where the special account for raised funds is opened, establishing a special account for raised funds.
2. Use of Raised Funds and Reasons for Temporary Idleness
The raised funds from the issuance of convertible bonds will be invested in the following projects after deducting issuance costs:
| No. | Project Name | Total Investment (10,000 RMB) | Amount of Raised Funds Invested (10,000 RMB) |
|---|---|---|---|
| 1 | Smart Medical IoT Cloud Platform Upgrade Project | 50,266.30 | 49,032.22 |
| 2 | Clean Medical Special Project Construction | 169,839.60 | 140,000.00 |
| 3 | Clean Medical Supporting Products Production Base Construction | 131,899.40 | 110,515.44 |
| 4 | Consumables Logistics Warehousing and Distribution Center Construction | 54,738.80 | 39,768.10 |
| 5 | Supplementing Working Capital | 220,000.00 | 220,000.00 |
| Total | 840,321.20 | 743,816.69 |