Industrial Securities Co., Ltd.
Audit Report on Guangdong LvTong New Energy Electric Vehicle Technology Co., Ltd.'s Use of Surplus Funds for Equity Acquisition and Capital Increase
Industrial Securities Co., Ltd. (hereinafter referred to as "Industrial Securities" or "Sponsor") as the sponsor of Guangdong LvTong New Energy Electric Vehicle Technology Co., Ltd. (hereinafter referred to as "LvTong Technology," "the Company," or "the Company") for its initial public offering on the ChiNext market, in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship," the "ChiNext Stock Listing Rules of the Shenzhen Stock Exchange," the "ChiNext Listed Company Self-Regulatory Management Guide No. 2 - Standardized Operation of ChiNext Listed Companies," and the "Supervision Rules for the Management of Raised Funds" and other relevant regulations, has audited the situation of LvTong Technology's use of surplus funds for equity acquisition and capital increase. The details are as follows:
I. Basic Situation of Raised Funds
As approved by the China Securities Regulatory Commission's "Approval on the Registration of Guangdong LvTong New Energy Electric Vehicle Technology Co., Ltd.'s Initial Public Offering of Shares" (Securities Regulatory License [2022] No. 2678), the Company issued 17.49 million ordinary shares (A shares) at an issue price of RMB 131.11 per share. The total amount of raised funds was RMB 2,293.1139 million. After deducting issuance-related expenses of RMB 191.8996 million (excluding value-added tax), the net amount of raised funds was RMB 2,101.2143 million.
Huaxing Certified Public Accountants (Special General Partnership) audited the receipt of the raised funds and issued the "Capital Verification Report" (Huaxing Verification [2023] No. 20000010522) on March 2, 2023. The Company has established a special account for raised funds for centralized management of their deposit and use. The Company, the sponsor, and the banks where the raised funds are deposited have signed a "Tripartite Supervision Agreement for Raised Funds."
II. Use of Raised Funds for Investment Projects
As of March 31, 2026, the Company's use of raised funds for investment projects is as follows:
| Project | Total Project Investment (RMB million) | Committed Raised Funds Investment (RMB million) | Cumulative Raised Funds Used (RMB million) |
|---|---|---|---|
| 17,490,000 units/year site electric vehicle expansion project | 27,912.65 | 27,912.65 | 23,433.26 |
| R&D Center Construction Project | 5,546.30 | 5,546.30 | 2,266.44 |
| Informatization Construction Project | 3,036.01 | 3,036.01 | 2,194.08 |
| Supplementary Working Capital Project | 4,000.00 | 4,000.00 | 4,003.16 |
| Total | 40,494.96 | 40,494.96 | 31,896.94 |
Note: The above data is unaudited. The "17,490,000 units/year site electric vehicle expansion project" was completed in February 2025, with RMB 23,433.26 million used, and the remaining funds were used for supplementary working capital. The "Supplementary Working Capital Project" had a committed investment of RMB 4,000.00 million, with RMB 4,003.16 million used, a difference of RMB 3.16 million, which was due to the interest income from the special account for raised funds being used for this project.
III. Use of Surplus Funds
The net amount of surplus funds from the Company's initial public offering is RMB 169,626.47 million. As of March 31, 2026, the use of surplus funds is as follows:
(I) First and Second Tranches of Share Buyback and Cancellation