UBS Securities Limited (hereinafter referred to as "UBS Securities" or "the Sponsor") is the sponsor for Entropy Technology Co., Ltd. (hereinafter referred to as "Entropy Technology" or "the Company") in its initial public offering and listing on the ChiNext. In accordance with relevant laws, regulations, and normative documents, including the "Administrative Measures for the Sponsorship of Securities Issuance and Listing," the "ChiNext Stock Listing Rules of the Shenzhen Stock Exchange," and the "Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of ChiNext Listed Companies," UBS Securities has conducted a prudent verification of Entropy Technology's use of idle funds to purchase wealth management products. The verification details are as follows:
I. Basic Situation of Using Idle Funds to Purchase Wealth Management Products
(1) Investment Purpose
The purpose of the investment is to improve the efficiency of the Company's idle funds. While ensuring the normal operations of the Company and its subsidiaries and guaranteeing fund safety, part of the idle funds will be used to purchase wealth management products with high safety and good liquidity to enhance the efficiency of the Company's own funds and increase investment returns.
(2) Investment Amount and Duration
The maximum amount of idle funds that the Company and its subsidiaries plan to use for purchasing wealth management products shall not exceed RMB 1.5 billion. This amount will be recycled within the validity period of the resolution, and the transaction amount at any point in time during the validity period (including the reinvestment of the aforementioned investment returns) shall not exceed this limit. The investment period is from the date of approval by the 2025 annual general meeting until the 2026 annual general meeting, and the investment period shall not exceed twelve months.
(3) Types of Investments
The Company will strictly control risks according to relevant regulations, conducting thorough evaluations and screenings of wealth management products, selecting those issued by banks and other formal financial institutions that have high safety and good liquidity.