Special Verification Report on the Storage, Management, and Use of Raised Funds for 2025 by Baoding Dongli Machinery Manufacturing Co., Ltd.
Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities" or "the Sponsor") is the sponsor for the initial public offering of Baoding Dongli Machinery Manufacturing Co., Ltd. (hereinafter referred to as "Dongli Machinery," "the Company," or "the Issuer"). In accordance with the provisions of the "Administrative Measures for the Sponsorship of Securities Issuance and Listing," "Regulations on the Supervision of Raised Funds by Listed Companies," "Shenzhen Stock Exchange GEM Listing Rules," and "Shenzhen Stock Exchange Self-Regulatory Guidelines No. 2 - Standard Operation of GEM Listed Companies" and "Self-Regulatory Guidelines No. 13 - Sponsorship Business," Huatai United Securities conducted a verification of the storage, management, and use of raised funds by Dongli Machinery for the year 2025. The verification results are as follows:
1. Basic Information on Raised Funds
(1) Actual Amount of Raised Funds and Timing of Receipt
According to the China Securities Regulatory Commission's approval of Baoding Dongli Machinery Manufacturing Co., Ltd.'s initial public offering registration (Zheng Jian Xu Ke [2022] No. 509), the Company issued 36.8 million shares of RMB ordinary shares (A shares) at an issuance price of RMB 12.68 per share, raising a total of RMB 466.624 million. After deducting underwriting and sponsorship fees of RMB 43.9583 million, the net raised funds amounted to RMB 422.6657 million, which was transferred to the Company's raised funds supervision account by the lead underwriter Huatai United Securities on May 31, 2022. After deducting additional external expenses directly related to the issuance of equity securities, such as online issuance fees, prospectus printing fees, accounting fees, legal fees, and appraisal fees totaling RMB 27.194 million, the net amount of raised funds was RMB 395.4717 million. The above-mentioned raised funds have been verified by Tianjian Certified Public Accountants (Special General Partnership), which issued a "Verification Report" (Tianjian Yan [2022] No. 7-50).
(2) Use and Balance of Raised Funds
| Item | Amount (10,000 RMB) |
|---|---|
| Net amount of raised funds (A) | 39,547.17 |
| Cumulative amount incurred at the beginning of the period | |
| Project investment (B1) | 30,730.52 |
| Temporary liquidity support outflow (B2) | 3,000.00 |
| Repayment of temporary liquidity support (B3) | 3,000.00 |
| Permanent liquidity support outflow (B4) | 8,400.00 |
| Net income from financial management and interest (B5) | 993.11 |
| Current period incurred project investment (C1) | 1,416.28 |
| Temporary liquidity support outflow (C2) | - |
| Repayment of temporary liquidity support (C3) | - |
| Permanent liquidity support outflow (C4) | - |
| Net income from financial management and interest (C5) | 6.52 |
| Cumulative amount incurred at the end of the period | |
| Project investment (D1=B1+C1) | 32,146.80 |
| Temporary liquidity support outflow (D2=B2+C2) | 3,000.00 |
| Repayment of temporary liquidity support (D3=B3+C3) | 3,000.00 |
| Permanent liquidity support outflow (D4=B4+C4) | 8,400.00 |
| Net income from financial management and interest (D5=B5+C5) | 999.63 |
| Remaining raised funds (E=A-D1-D2+D3-D4+D5) | - |
| Actual remaining raised funds (F) | - |
| Difference (G=E-F) | - |
2. Storage and Management of Raised Funds
(1) Management of Raised Funds
To standardize the management and use of raised funds, improve the efficiency and effectiveness of fund utilization, and protect the rights and interests of investors, the Company formulated the "Management System for the Use of Raised Funds by Baoding Dongli Machinery Manufacturing Co., Ltd." (hereinafter referred to as "the Management System") in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Regulations on the Supervision of Raised Funds by Listed Companies" (CSRC Announcement [2025] No. 10), and "Shenzhen Stock Exchange Self-Regulatory Guidelines No. 2 - Standard Operation of GEM Listed Companies (2025 Revision)" (Shenzhen Stock Exchange [2025] No. 481), among other relevant laws, regulations, and normative documents, combined with the actual situation of the Company.