Xinxiang Richful Lube Additive Co.Ltd(300910)
Annual verification report on the deposit and use of raised funds
Sue
Floors 5-8, 12 and 23, block a, UDC times building, No. 8 Xinye Road, Qianjiang New Town, Hangzhou, China www.zhcpa.com cn. Floors5-8,12and23,Block A,UDC Times Building,No.8 Xinye Road，Qianjiang New City,Hangzhou
Tel.057188879999 Fax. 057188879000
catalogue
Page
1、 Annual verification report on the deposit and use of raised funds 1-2
2、 Xinxiang Richful Lube Additive Co.Ltd(300910) about raising funds in 2021
Special report on storage and actual use 3-10
Floors 5-8, 12 and 23, block a, UDC times building, No. 8 Xinye Road, Qianjiang New Town, Hangzhou, China www.zhcpa.com cn. Floors5-8,12and23,Block A,UDC Times Building,No.8 Xinye Road，Qianjiang New City,Hangzhou
Tel.057188879999 Fax. 057188879000
Xinxiang Richful Lube Additive Co.Ltd(300910)
Special report on the deposit and use of raised funds in 2021
Shenzhen Stock Exchange:
In accordance with the requirements of the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on GEM and relevant format guidelines issued by your office, the company’s deposit and use of raised funds in 2021 are specially explained as follows: I. Basic information of raised funds
（1） Actual amount of raised funds and arrival time of funds
With the approval of zjfzz [2020] No. 2396 document of China Securities Regulatory Commission, the company has publicly issued 37.5 million RMB ordinary shares (A shares) to the public by the lead underwriter Dongxing Securities Corporation Limited(601198) through the system of your exchange. The issuing price is RMB 30.26 per share. The total amount of funds raised is RMB 113475 million. After deducting the underwriting Commission and recommendation fee of the securities firm of RMB 728936 million, The lead underwriter Dongxing Securities Corporation Limited(601198) remitted RMB 1061856400 to the supervision account of the raised funds of the company, Xinxiang Development Zone sub branch account of Guangdong Development Bank Co., Ltd. (Account No.: 955088021457410993) on November 24, 2020. In addition, after deducting the additional external expenses related to the issuance of equity securities such as prospectus printing fee, audit fee, lawyer fee, evaluation fee and online issuance service fee of RMB 200228 million, the net capital raised by the company this time is RMB 10418336 million. The availability of the above raised funds was verified by Zhonghui Certified Public Accountants (special general partnership), which issued the capital verification report (Zhonghui Keyan [2020] No. 6638) on November 24, 2020.
（2） Use and balance of raised amount
In 2020, the use of raised funds was 224623900 yuan, of which 146239 million yuan was directly invested in raised funds projects to supplement working capital of 21 million yuan. In 2021, the use of raised funds was 150854 million yuan, of which 150854 million yuan was directly invested in raised funds projects.
As of December 31, 2021, the balance of the raised funds (including the net amount of interest income deducting bank handling fees) was 8311372 million yuan.
2、 Management of raised funds
（1） Management of raised funds
In order to standardize the management and use of raised funds, improve the efficiency and efficiency of fund use, and protect the interests of investors, the company, in accordance with the company law, the securities law and the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds by listed companies (revised in 2022) The company has formulated the management system of Xinxiang Richful Lube Additive Co.Ltd(300910) raised funds (hereinafter referred to as the management system) in accordance with the provisions of relevant laws, regulations and normative documents such as the stock listing rules of Shenzhen Stock Exchange (revised in 2022) and the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on GEM. According to the management system, the company adopts the special account storage system for the raised funds, establishes a special account for the raised funds in the bank, and together with the sponsor Dongxing Securities Corporation Limited(601198) signed the tripartite supervision agreement for the raised funds in Xinxiang Development Zone sub branch, China Merchants Bank Co.Ltd(600036) nongnong Road sub branch of Zhengzhou branch and China Citic Bank Corporation Limited(601998) Xinxiang Fenghua Street sub branch of Guangdong Development Bank Co., Ltd., clarifying the rights and obligations of all parties. There is no significant difference between the tripartite supervision agreement and the model tripartite supervision agreement of Shenzhen Stock Exchange. The company has strictly followed and performed the raised funds in order to facilitate the management and use of the raised funds and supervise their use, so as to ensure that the special funds are used for special purposes.
On December 8, 2020, the 10th meeting of the second board of directors and the 5th meeting of the second board of supervisors of the company deliberated and adopted the proposal on using the raised funds to increase capital to subsidiaries. In view of the fact that the implementation subject of the company’s public offering and investment project “annual output of 60000 tons of lubricating oil additive single agent products and 12800 tons of compound agent products” is a wholly-owned subsidiary Cangzhou Runfu additives Co., Ltd, It is agreed to use 340 million yuan of the net raised funds to increase the capital of Cangzhou Runfu Additive Co., Ltd. The capital increase funds for this capital increase shall be deposited in the special account for raised funds.
（2） Special account storage of raised funds
As of December 31, 2021, the balance of the company’s unused raised funds was 83113716770 yuan, including 28113716770 yuan stored in four special accounts for raised funds and 5500000000 yuan purchased time deposit products.
1. The storage of raised funds in the special account is as follows:
(unit: RMB):
Account opening bank account No. account category storage balance of account holder
Xinxiang Xinxiang Richful Lube Additive Co.Ltd(300910) material Guangfa Bank Co., Ltd. newly raised funds
95508802457410099334039402910 Co., Ltd. Township Development Zone sub branch account
Xinxiang Xinxiang Richful Lube Additive Co.Ltd(300910) material China Citic Bank Corporation Limited(601998) newly raised fund
81111010121012450931 Shenzhen Sinexcel Electric Co.Ltd(300693) 1987 Co., Ltd. xiangfenghua Street sub branch account
Xinxiang City Xinxiang Richful Lube Additive Co.Ltd(300910) material China Merchants Bank Co.Ltd(600036) Zheng raised funds
3719031092103012620121452 agricultural road sub branch account of state branch of Co., Ltd
Cangzhou Runfu additive has the newly raised fund of Guangdong Development Bank Co., Ltd
95508802344240019633447260421 limited company Township Development Zone sub branch account
Total 83113716770
2. As of December 31, 2021, the company used the temporarily idle raised funds to handle the balance of fixed deposit of RMB 43000000000 in Xinxiang Development Zone sub branch of Guangdong Development Bank Co., Ltd., the balance of structural deposit of RMB 10000000000 in China Citic Bank Corporation Limited(601998) Xinxiang Fenghua Street sub branch and the balance of bank structural deposit of RMB 2000000000 in China Merchants Bank Co.Ltd(600036) nongnong Lu sub branch of Zhengzhou branch.
3、 Actual use of raised funds this year
（1） Use of funds for investment projects with raised funds.
See Appendix 1 of this report for the comparison table of the use of raised funds in 2021.
（2） Description of the situation that the benefits of the investment projects with raised funds cannot be calculated separately
The raised funds are planned to be used for four projects, namely “60000 tons of lubricant additive single agent products and 12800 tons of composite agent products per year”, “lubricant additive research center project” (new project of over raised funds), “15200 tons of lubricant additive series product technical transformation project” (new project of over raised funds) and supplementary working capital (new project of over raised funds).
The “lubricating oil additive research center project” does not directly produce economic benefits. After completion, the company will have a first-class lubricating oil additive research center, which will be in line with the world’s advanced level in the detection and R & D ability of products in the field of lubricating oil additives, which can greatly improve the technical R & D level of the company, resulting in indirect benefits.
The benefits of the “technical transformation project of lubricating oil additive series products with an annual output of 15200 tons” cannot be calculated separately. The project is to carry out the technical transformation of lubricating oil additive series products in the original plant area, improve the test, experiment and detection capacity through the innovation of production line technical equipment, increase environmental protection treatment facilities, adjust process parameters such as temperature and pressure, screen more advanced catalyst varieties and adjust product structure, Enhance quality stability, improve production efficiency, and it is impossible to calculate benefits separately.
Replenishing working capital does not directly produce economic benefits, but it helps to improve the use efficiency of raised funds and the profitability of the company, so as to produce indirect benefits.
（3） Advance investment and replacement of investment projects with raised funds.
On December 8, 2020, the 10th meeting of the second board of directors and the 5th meeting of the second board of supervisors deliberated and approved the proposal on using the raised funds to replace the self raised funds and paid issuance expenses of the raised investment projects invested in advance, and agreed that the company would use the raised funds to replace the self raised funds of the raised investment projects invested in advance, totaling RMB 111427 million. On December 4, 2020, Zhonghui Certified Public Accountants (special general partnership) verified the pre investment of self raised funds in the company’s raised investment projects, and issued the verification report on Xinxiang Richful Lube Additive Co.Ltd(300910) pre investment of raised investment projects with self raised funds (Zhonghui kuaijin [2020] No. 6747).
（4） Use of over raised funds.
According to the reply on the registration of Xinxiang Richful Lube Additive Co.Ltd(300910) initial public offering (zjxk [2020] No. 2396) issued by China Securities Regulatory Commission (hereinafter referred to as the CSRC), the company publicly issued 37.5 million A-Shares to the public, with a par value of 1.00 yuan per share and an issue price of 30.26 yuan per share, raising a total of 113475 million yuan. After deducting the issuance expenses, The net amount of funds raised by the company is 1041833600 yuan, of which the total amount of over raised funds is 701833600 yuan.
The second meeting of the board of directors on raising funds for the construction of the company’s annual production of 15200 tons of lubricating oil and additives in 2020 and the second meeting of the board of supervisors on August 12 considered and adopted the proposal on raising funds for the construction of the company’s scientific research center, The company was approved to use the over raised capital of 130 million yuan to build the “lubricating oil additive research center project” and the over raised capital of 35 million yuan to build the “technical transformation project of 15200 tons of lubricating oil additive series products per year”. The proposal on using part of the over raised capital to permanently supplement the working capital was reviewed and approved, and the company was approved to use the over raised capital of 21 million yuan to permanently supplement the working capital.
As of the end of this period, the project of lubricating oil additive research center has invested 354 million yuan in total
