Verification Opinion of Huatai United Securities Co., Ltd. on the Use of Idle Raised Funds for Cash Management by Xintiandi Pharmaceutical Co., Ltd.
Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities" or "Sponsor") as the sponsor for the initial public offering of Xintiandi Pharmaceutical Co., Ltd. (hereinafter referred to as "Xintiandi," "Company," or "Issuer"), conducted a verification of the use of part of the idle raised funds for cash management in accordance with the relevant laws and regulations, including the "Regulations on the Management of Sponsorship for Securities Issuance and Listing," "Regulations on the Supervision of Raised Funds by Listed Companies," and "Shenzhen Stock Exchange GEM Listing Rules." The verification results are as follows:
1. Overview of the Raised Funds Investment Projects
According to the approval from the China Securities Regulatory Commission regarding the initial public offering registration of Henan Xintiandi Pharmaceutical Co., Ltd. (Zheng Jian Xu Ke [2022] No. 1911), the company publicly issued 33,360,000 A shares with a par value of RMB 1.00 per share at an issuance price of RMB 27.00 per share, raising a total of RMB 900,720,000.00. After deducting issuance expenses totaling RMB 85,154,160.95 (excluding VAT), the net raised funds amounted to RMB 815,565,839.05. The capital verification report has been issued by KPMG Huazhen LLP (Special General Partnership) under report number 2201583.
2. Use of Raised Funds
The specific use plan for the raised funds disclosed in the "Prospectus for the Initial Public Offering of Henan Xintiandi Pharmaceutical Co., Ltd." (hereinafter referred to as "Prospectus") is as follows:
| No. | Project Name | Total Investment Amount (10,000 RMB) | Proposed Use of Raised Funds (10,000 RMB) |
|---|---|---|---|
| 1 | Annual Production of 120 Tons API | 26,420.48 | 26,420.48 |
| 2 | R&D Center Construction Project | 12,074.67 | 12,074.67 |
| 3 | Supplementing Working Capital | 20,000.00 | 20,000.00 |
| Total | 58,495.15 | 58,495.15 |
On May 23, 2023, the Company held the 13th meeting of the 5th Board of Directors and the 10th meeting of the 5th Supervisory Board, and on June 8, 2023, the Company held the second extraordinary general meeting of shareholders in 2023, which approved the proposal to use RMB 100 million of the excess raised funds for the construction of the "Intelligent Specialty API Supporting Industrial Chain Project." After the adjustment in the use of raised funds, the specific use plan is as follows:
| No. | Project Name | Total Investment Amount (10,000 RMB) | Proposed Use of Raised Funds (10,000 RMB) |
|---|---|---|---|
| 1 | Annual Production of 120 Tons API | 26,420.48 | 26,420.48 |
| 2 | R&D Center Construction Project | 12,074.67 | 12,074.67 |
| 3 | Intelligent Specialty API Supporting Industrial Chain Project | 10,000.00 | 10,000.00 |
| 4 | Supplementing Working Capital | 20,000.00 | 20,000.00 |
| Total | 68,495.15 | 68,495.15 |
3. Status of Investment Projects
As of now, the status of the investment projects funded by the raised funds is as follows: