CITIC Securities Co., Ltd. Audit Opinion on Hunan Yue Neng New Energy Battery Material Co., Ltd.'s Use of Raised Funds to Repay Self-Funded Investments in Raised Projects and Issuance Expenses
CITIC Securities Co., Ltd. ("CITIC Securities" or "Sponsor") is the sponsor for Hunan Yue Neng New Energy Battery Material Co., Ltd. ("Hunan Yue Neng" or "the Company") for its private placement of shares. In accordance with the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing," the "Supervision Rules for the Management of Raised Funds of Listed Companies," the "Shenzhen Stock Exchange GEM Stock Listing Rules," and the "Shenzhen Stock Exchange Listed Company Self-Regulation Guidelines No. 2 - Standardized Operation of GEM Listed Companies," etc., CITIC Securities has prudently audited the matter of Hunan Yue Neng using raised funds to repay self-funded investments in raised projects and issuance expenses, and hereby issues the following audit opinion:
I. Basic Situation of Raised Funds
With the approval of the "Approval on the Registration of Hunan Yue Neng New Energy Battery Material Co., Ltd.'s Private Placement of Shares" (Issuance License [2026] No. 81) from the China Securities Regulatory Commission, the Company issued 82,537,493 ordinary shares (A shares) through a private placement, with a par value of RMB 1 per share. The issuance price was RMB 58.01 per share, and the total raised funds amounted to RMB 4,787,999,968.93. After deducting issuance expenses (excluding tax) of RMB 55,810,265.08, the net raised funds amounted to RMB 4,732,189,703.85. The raised funds were deposited into the Company's designated account on March 16, 2026. The above-mentioned receipt of raised funds has been audited by Tianjian Certified Public Accountants (Special General Partnership), who issued the "Capital Verification Report" (Tianjian Verification [2026] No. 2-5). The Company and its subsidiaries, Guizhou Yue Neng New Energy Battery Material Co., Ltd. and Yunnan Yue Neng New Energy Battery Material Co., Ltd., have opened special accounts for the raised funds and signed the "Raised Funds Tripartite Custody Agreement" with the sponsor and the banks where the raised funds are deposited.
II. Situation of Raised Funds Investment Projects
According to the "Prospectus for the Private Placement of Shares of Hunan Yue Neng New Energy Battery Material Co., Ltd. (Registration Draft)," the raised funds from this issuance, after deducting issuance expenses, will be invested in the following projects:
| Project Name | Total Project Investment (RMB million) | Amount of Raised Funds to be Used (RMB million) |
|---|---|---|
| 320,000 tons/year of Lithium Iron Manganese Phosphate Project | 442,544.00 | 280,000.00 |
| 75,000 tons/year of Ultra-long Cycle Lithium Iron Phosphate Project | 90,815.21 | 50,000.00 |
| 100,000 tons/year of Lithium Iron Phosphate Project | 90,434.00 | 60,000.00 |
| Working Capital Supplement | 88,800.00 | 83,218.97 |
| Total | 473,218.97 |