Huafu Securities Co., Ltd.
Audit Opinion on Shanghai Zhenlan Instrument Technology Co., Ltd.'s Use of Part of Idle Raised Funds (Including Surplus Funds) for Cash Management
Huafu Securities Co., Ltd. (hereinafter referred to as "Huafu Securities" or "this sponsor") is the sponsor of Shanghai Zhenlan Instrument Technology Co., Ltd. (hereinafter referred to as "the Company" or "Zhenlan Instrument") for its initial public offering of shares and listing on the ChiNext market. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 13 - Sponsorship Business," "Supervision Rules for Raised Funds of Listed Companies," "Shenzhen Stock Exchange ChiNext Stock Listing Rules," and "Shenzhen Stock Exchange ChiNext Listed Company Self-Regulatory Supervision Guidelines No. 2 - Standardized Operation of ChiNext Listed Companies," and other laws, administrative regulations, departmental rules, and business rules, Huafu Securities has prudently reviewed the matter of Zhenlan Instrument's proposed use of part of its idle raised funds (including surplus funds) for cash management. The review results and opinions are as follows:
I. Basic Situation of Raised Funds
On September 28, 2022, the China Securities Regulatory Commission issued the "Reply on Approving the Registration of the Initial Public Offering of Shares of Shanghai Zhenlan Instrument Technology Co., Ltd." (Securities Regulatory License (2022) No. 2326), approving the registration and issuance of Zhenlan Instrument's initial public offering of RMB ordinary shares (A shares) on the ChiNext market. The Company publicly issued 73 million shares of RMB ordinary shares (A shares) at an issue price of RMB 26.80 per share, with a total raised capital of RMB 1,956,400,000.00. After deducting issuance expenses (excluding VAT) of RMB 98,630,360.01, the net amount of raised funds is RMB 1,857,769,639.99.
The above-mentioned receipt of raised funds was verified by Rongcheng Certified Public Accountants (Special General Partnership), which issued the "Capital Verification Report" (Rongcheng Verification Letter [2023] No. 230Z0037) on February 15, 2023.
II. Investment Project Situation of Raised Funds
According to the "Prospectus" of Shanghai Zhenlan Instrument Technology Co., Ltd. for its initial public offering of shares on the ChiNext market, the raised fund projects and the planned use of raised funds are as follows:
| No. | Project Name | Total Investment (RMB 10,000) | Planned Raised Fund Investment Amount (RMB 10,000) | Implementing Entity |
|---|---|---|---|---|
| 1 | Zhenlan Instrument Technology Co., Ltd. Gas Meter Production Expansion Project | 80,659.67 | 77,625.00 | Zhenlan Instrument |
| 2 | Shanghai Zhenlan Instrument Technology Co., Ltd. Base Construction Project | 61,170.75 | 61,170.75 | Zhenlan Instrument |
| (1) Shanghai Metering Instrument Project | 47,957.50 | 47,957.50 | ||
| (2) Shanghai R&D Center Construction Project | 13,213.25 | 13,213.25 | ||
| 3 | Supplement Working Capital | 35,000.00 | 35,000.00 | |
| Total | 176,830.42 | 173,795.75 |