Huarong Securities Co., Ltd
About Sinomach Precision Industry Co.Ltd(002046)
Verification opinions on the deposit and use of raised funds in 2021
Huarong Securities Co., Ltd. (hereinafter referred to as “Huarong securities” or “the independent financial consultant”) as an independent financial consultant of Sinomach Precision Industry Co.Ltd(002046) (formerly known as “Luoyang axis Research Technology Co., Ltd.”, hereinafter referred to as ” Sinomach Precision Industry Co.Ltd(002046) ” or “the company”) issued shares to purchase assets and raised matching funds, in accordance with the measures for the administration of major asset restructuring of listed companies and the measures for the administration of securities issuance and listing recommendation business In accordance with the provisions of relevant laws, regulations and normative documents such as the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds by listed companies and the stock listing rules of Shenzhen Stock Exchange, the deposit and use of the supporting raised funds of Sinomach Precision Industry Co.Ltd(002046) issuing shares to purchase assets and raising supporting funds in 2021 were verified. The details are as follows:
1、 Basic information of raised funds
(I) funds raised from non-public offering in 2016
Approved by the CSRC’s zjxk [2015] No. 3134 document, the company issued 1304347800 ordinary shares (A shares) to the original shareholder China Machinery Industry Group Co., Ltd. in February 2016, with a par value of RMB 1.00 per share and a subscription price of RMB 8.05 per share, raising a total of RMB 105 million. After deducting the issuance expenses of RMB 4.2614 million, The net amount of funds actually raised was RMB 1007386 million. As of February 28, 2016, all the funds raised by the above issuance have been in place, which has been verified and confirmed by Lixin Certified Public Accountants (special general partnership) with the capital verification report of “Xin Kuai Shi Bao Zi [2016] No. 710135”.
As of December 31, 2021, the use of the raised funds is as follows:
Project amount (10000 yuan)
Net raised funds 1007386
Less: amount used in previous years 371367
Amount used in 2021: 0.00
Plus: net amount of interest income of raised funds deducting handling charges 44.99
The balance of unused raised funds is 640518
Less: cash management amount 139200
Temporarily replenish working capital 500000
Balance of raised funds account 13.18
(II) supporting funds raised in 2018
With the approval of zjxk [2017] No. 1795 document of China Securities Regulatory Commission, the company privately issued 61210970 ordinary shares (A shares) in January 2018 at an issue price of 8.96 yuan / share. A total of 548450300 yuan of supporting funds were raised this time. After deducting 136617 million yuan of issuance expenses, the net amount of funds actually raised was 534788600 yuan. As of January 9, 2018, all the above raised funds have been in place, which has been verified and confirmed by Lixin Certified Public Accountants (special general partnership) with the capital verification report of “Xin Kuai Shi Bao Zi [2018] No. zg10006”.
As of December 31, 2021, the use of the raised funds is as follows:
Project amount (10000 yuan)
The total amount of raised funds is 5484503
Less: amount used in previous years 3012817
Amount used in 2021: 1145979
Plus: net amount of interest income of raised funds minus handling charges 271942
The balance of unused raised funds is 1597649
Less: cash management amount 200000
Temporary supplementary working capital amount 1360000
Balance of raised funds account 376.49
2、 Management of raised funds
In order to regulate the management and use of the raised funds and protect the rights and interests of investors, Sinomach Precision Industry Co.Ltd(002046) in accordance with the company law, the securities law, the Listing Rules of Shenzhen Stock Exchange and other laws and regulations, the management system for the use of the raised funds was formulated, which was deliberated and adopted at the first interim meeting of the board of directors in 2008 and revised at the fifth meeting of the seventh board of directors on October 28, 2021.
(I) management of funds raised by non-public offering in 2016
On March 24, 2016, Sinomach Precision Industry Co.Ltd(002046) signed the tripartite supervision agreement on raised funds with Luoyang Changchun Branch of ICBC and Debon securities. On May 3, 2017, because the company hired Huarong securities as the independent financial consultant for the company to issue shares to purchase assets and raise supporting funds in 2017, the company cancelled the recommendation agreement signed with Debon securities, and Sinomach Precision Industry Co.Ltd(002046) signed the tripartite supervision agreement for raised funds with Luoyang Changchun Branch of ICBC and Huarong securities on the same day.
The first extraordinary general meeting of shareholders in 2021 held on February 5, 2021 deliberated and approved the proposal on changing the raised funds to invest in the construction of “Yibin science and Technology Industrial Park (phase I) project”, and agreed to invest all the raised funds not yet used in the 2016 non-public offering into the “Yibin science and Technology Industrial Park (phase I) project” of Luoyang Bearing Research Institute Co., Ltd. Since the user of the raised funds is changed from Sinomach Precision Industry Co.Ltd(002046) to Luoyang Bearing Research Institute Co., Ltd., Luoyang Bearing Research Institute Co., Ltd. has opened a storage account with account number 17050212292 Hubei Radio & Television Information Network Co.Ltd(000665) 6 in Luoyang Changchun Branch of Industrial And Commercial Bank Of China Limited(601398) Co., Ltd., China, to store the raised funds. On June 22, 2021, Sinomach Precision Industry Co.Ltd(002046) , Luoyang Bearing Research Institute Co., Ltd., Luoyang Changchun sub branch of China Industrial And Commercial Bank Of China Limited(601398) Co., Ltd. and Huarong securities signed the tripartite supervision agreement on raised funds.
There is no significant difference between the above agreement and the model tripartite supervision agreement, and it has been effectively implemented.
As of December 31, 2021, the storage of the raised funds is listed as follows:
Monetary unit: RMB 10000
Bank name account number initial deposit amount deadline balance storage method
China Industrial And Commercial Bank Of China Limited(601398) Luoyang Changchun 17050212292 Hubei Radio & Television Information Network Co.Ltd(000665) 61007386 13.18 current sub branch
Total – 1007386-
The company held the second meeting of the seventh board of directors on April 23, 2021, which deliberated and passed the proposal on using temporarily idle raised funds for cash management. The board of directors agreed that the company would use temporarily idle raised funds of no more than RMB 110 million for cash management on the premise of ensuring that the construction of raised funds would not be affected. Within the limit, the funds could be used on a rolling basis. Accordingly, the company uses the temporarily idle raised funds for cash management. On December 31, 2021, the special settlement account for products opened for cash management is as follows:
Monetary unit: RMB 10000
Bank name account number closing date balance storage method
China Industrial And Commercial Bank Of China Limited(601398) Luoyang Changchun 17050212292 Hubei Radio & Television Information Network Co.Ltd(000665) 6139200 7-day rolling
Sub branch
Total-
(II) management of supporting funds raised in 2018
On February 7, 2018, Sinomach Precision Industry Co.Ltd(002046) , Zhengzhou abrasive grinding Institute Co., Ltd., Huarong securities and China Construction Bank Corporation(601939) Zhengzhou Railway Sub Branch signed the tripartite supervision agreement on raised funds Sinomach Precision Industry Co.Ltd(002046) , Zhengzhou abrasive grinding Institute Co., Ltd., Huarong securities and Luoyang Xiyuan Road sub branch of China China Everbright Bank Company Limited Co.Ltd(601818) Co., Ltd. signed the tripartite supervision agreement for raised funds.
There is no significant difference between the above agreement and the model tripartite supervision agreement, and it has been effectively implemented.
As of December 31, 2021, the storage of the raised funds is listed as follows:
Monetary unit: RMB 10000
Bank name account number initial deposit amount deadline balance storage method
China China Construction Bank Corporation(601939) Co., Ltd. 410501783608 China Vanke Co.Ltd(000002) 0225605.46 336.44 current company Zhengzhou Railway Sub Branch
China China Everbright Bank Company Limited Co.Ltd(601818) Co., Ltd. 537 Liaoning Port Co.Ltd(601880) 001078927647.40 40.05 current company Luoyang Xiyuan Road sub branch
Total – 5325286 376.49-
Sinomach Precision Industry Co.Ltd(002046) at the second meeting of the seventh board of directors held on April 23, 2021, the proposal on using temporarily idle raised funds for cash management was deliberated and adopted. The board of directors agreed that the company would use temporarily idle raised funds of no more than RMB 110 million for cash management on the premise of ensuring that the construction of raised funds would not be affected. Within the limit, the funds could be used in a rolling manner. Accordingly, Sinomach Precision Industry Co.Ltd(002046) uses the temporarily idle raised funds for cash management. On December 31, 2021, the special settlement account for products opened for cash management is as follows:
Monetary unit: RMB 10000
Bank name account number closing date balance storage method
China Construction Bank Corporation(601939) Zhengzhou 4105027836 Shenzhen Ecobeauty Co.Ltd(000010) 0200000 7-day turnover Railway Sub Branch
Total – 200000
3、 Use of raised funds in 2021
(I) use of funds raised by non-public offering in 2016
The use of the raised funds in 2021 is as follows:
Use of raised funds
