Review Opinion on Adjustments to Fundraising Investment Projects
UBS Securities Co., Ltd. (hereinafter referred to as "UBS Securities" or "the Sponsor") acted as the sponsor for Entropy Technology Co., Ltd. (hereinafter referred to as "Entropy Technology" or "the Company") during its initial public offering (IPO) and listing on the Growth Enterprise Market. In accordance with relevant laws, regulations, and normative documents such as the "Regulations on the Management of Securities Issuance and Listing Sponsorship," "Regulations on the Supervision of Fundraising by Listed Companies," and "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules," UBS Securities has conducted a review of the adjustments to the investment plans for certain fundraising projects, including a reduction in total investment and project delays, and hereby issues this review opinion. The specific review situation is as follows:
1. Basic Situation of Fundraising
According to the China Securities Regulatory Commission's approval document (Zheng Jian Xu Ke [2022] No. 926) for the registration of Entropy Technology's IPO, the Company issued 37,123,013 shares of ordinary RMB common stock (A shares) at a price of RMB 43.32 per share, raising a total of RMB 1,608.1689 million. After deducting issuance expenses (excluding VAT) of RMB 150.8705 million, the net amount raised was RMB 1,457.2984 million, with an oversubscription of RMB 147.6392 million. The raised funds were transferred to the Company's designated account on August 12, 2022. Tianzhi International Accounting Firm (Special General Partnership) verified the arrival of the raised funds and issued Verification Report No. [2022]38658 on August 12, 2022. The Company and its subsidiaries implementing the fundraising projects have opened special accounts for the raised funds, ensuring that the funds are stored in dedicated accounts, and have signed tripartite/quadripartite supervision agreements with the sponsor and the commercial bank holding the raised funds.
2. Specific Situation of Fundraising Projects
According to the "Prospectus for the Initial Public Offering and Listing of Entropy Technology Co., Ltd.," the raised funds, after deducting issuance expenses, will be used for the following fundraising projects:
| No. | Project Name | Total Investment Amount | Proposed Investment Amount from Fundraising |
|---|---|---|---|
| 1 | Tangxia Production Base Construction Project | 24,841.18 | 24,841.18 |
| 2 | Mixed Biometrics IoT Intelligent Industry Base | 43,689.94 | 43,689.94 |
| 3 | U.S. Manufacturing Plant Construction Project | 17,392.21 | 17,392.21 |
| 4 | R&D Center Construction Project | 18,240.58 | 18,240.58 |
| 5 | Global Marketing Service Network Construction Project | 26,802.01 | 26,802.01 |
| 6 | Oversubscription Funds | 14,763.92 | 14,763.92 |
| Total | 145,729.84 | 145,729.84 |
As of February 28, 2026, the Company's fundraising investment projects and the use of raised funds are as follows: