Special Verification Opinion
Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "the Sponsor") acted as the sponsor for the initial public offering (IPO) of Xinling Electric Co., Ltd. (hereinafter referred to as "Xinling Electric" or "the Company") and conducted a verification of the storage and use of funds raised for the year 2025 in accordance with relevant regulations.
1. Basic Information on the Raised Funds
(1) Amount and Receipt of Funds from the Initial Public Offering
With the approval of the China Securities Regulatory Commission regarding the registration of the IPO of Xinling Electric (Approval No. [2022] 1884), and with the consent of the Shenzhen Stock Exchange, the Company issued 25,611,900 shares of ordinary shares (A shares) at a par value of RMB 1 per share, with an issue price of RMB 25.88 per share. The total amount raised was RMB 662.836 million, and after deducting related issuance expenses (excluding VAT) of RMB 68.5074 million, the net amount raised was RMB 594.328544 million. The accounting firm Lixin Certified Public Accountants (Special General Partnership) verified the receipt of the raised funds on November 1, 2022, and issued a verification report (Report No. [2022] ZF11295).
(2) Use and Balance of Raised Funds
In 2025, the Company utilized RMB 12.1972 million for investment projects funded by the raised funds. As of December 31, 2025, the balance in the dedicated fund account was RMB 1.724473 million, detailed as follows:
| Project | Amount (RMB) |
|---|---|
| Net amount raised from IPO | 594,328,544.36 |
| Balance of raised funds as of December 31, 2024 | 281,669,693.16 |
| Plus: Current interest income less handling fees | 13,710.75 |
| Plus: Financial product interest income | 5,838,230.40 |
| Less: Expenditure on investment projects in 2025 | 12,197,161.16 |
| Less: Permanent transfer of supplementary funds | 60,000,000.00 |
| Balance of raised funds as of December 31, 2025 | 215,324,473.15 |
| Among them: Cash management including financial products, time deposits, and large certificates of deposit | 213,600,000.00 |
| Balance in dedicated fund account as of December 31, 2025 | 1,724,473.15 |
2. Management and Storage of Raised Funds
(1) Management of Raised Funds
To standardize the management and use of raised funds and protect investors' rights, the Company formulated a "Management System for Raised Funds" in accordance with relevant regulations. During the reporting period, this system was strictly implemented, and expenditures on investment projects were subject to strict approval procedures. On November 10, 2022, the Company signed "Three-party Supervision Agreements" or "Four-party Supervision Agreements" with its wholly-owned subsidiaries and banks to manage the storage and use of raised funds in dedicated accounts.
(2) Storage of Dedicated Fund Accounts
As of December 31, 2025, the deposit situation of the dedicated fund accounts was as follows: