Elite Color Environmental Resources Science&Technology Co.Ltd(002998)
Special report on the deposit and use of raised funds in 2021
1、 Basic information of raised funds
With the approval of zjxk [2020] No. 1309 document of China Securities Regulatory Commission and the consent of Shenzhen Stock Exchange, the company issued 815996 million ordinary shares (A shares) to the public by the lead underwriter China Industrial Securities Co.Ltd(601377) Co., Ltd. on September 18, 2020, with a par value of RMB 1 per share and an issue price of RMB 5.85 per share. As of September 22, 2020, the company has raised a total of 47735766000 yuan. After deducting the issuance expenses of 4582129924 yuan, the net amount of raised funds is 43153636076 yuan.
As of September 22, 2020, all the funds raised by the above issuance of the company have been in place, which has been verified and confirmed by Dahua Certified Public Accountants (special general partnership) with the capital verification report of “Dahua Yan Zi [2020] No. Addsino Co.Ltd(000547) “.
As of December 31, 2021, the company has invested 40570373637 yuan in the investment projects with raised funds, including 22888386667 yuan of raised funds from September 22, 2020 to December 31, 2020; In 2021, 17681986970 yuan of raised funds was used. As of December 31, 2021, the balance of raised funds was RMB 15824479.
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, the company, in accordance with the company law of the people’s Republic of China, the securities law of the people’s Republic of China, the Listing Rules of Shenzhen Stock Exchange, the guidelines for the standardized operation of listed companies of Shenzhen Stock Exchange, the company’s raised funds management system and other relevant provisions, The 13th meeting of the second board of directors of the company passed the proposal on opening a special account for raised funds and signing a tripartite supervision agreement for raised funds on October 9, 2020, and agreed that the company should open a special account for raised funds in Bank Of Jiangsu Co.Ltd(600919) Jiangyin science and technology sub branch, Bank Of Ningbo Co.Ltd(002142) Jiangyin sub branch, and with China Industrial Securities Co.Ltd(601377) Bank Of Jiangsu Co.Ltd(600919) Jiangyin science and technology sub branch and Bank Of Ningbo Co.Ltd(002142) Jiangyin sub branch signed the tripartite supervision agreement for raised funds, and implemented strict approval procedures for the use of raised funds to ensure that special funds are used for special purposes; The authorized sponsor representative can inquire the information of the special account for raised funds at the bank that opens the special account for raised funds at any time, and require the sponsor representative to conduct on-site investigation on the management and use of raised funds at least once every six months.
According to the tripartite supervision agreement on raised funds, if the company withdraws more than RMB 50 million from the deposit account of raised funds in a single time or within 12 months, or the cumulative withdrawal from the deposit account of raised funds reaches 20% of the net amount of raised funds, the company and the bank opening the special account of raised funds shall notify the recommendation institution China Industrial Securities Co.Ltd(601377) , and provide the expenditure list of the special account.
As of December 31, 2021, the storage of raised funds is listed as follows:
Monetary unit: RMB
Bank name account number initial deposit amount deadline balance storage method Bank Of Jiangsu Co.Ltd(600919) Jiangyin science and technology sub branch 291301880 Anhui Guofeng Plastic Industry Co.Ltd(000859) 6824659220615 724.86 current method Bank Of Ningbo Co.Ltd(002142) Jiangyin sub branch 7804012200315861493184412315751993 current method Bank Of Ningbo Co.Ltd(002142) Jiangyin sub branch 780401220031318115044701262 -Total cancelled 44635766 Shijiazhuang Changshan Beiming Technology Co.Ltd(000158) 24479
Use and balance of raised funds
Project amount (RMB)
The total amount of actually raised funds is 47735766000
Less: payment of issuance fee 4582129924
Net proceeds 43153636076
Less: 55248752678 in the form of call deposit, agreement deposit, time deposit and other deposits purchased with idle raised funds
product
Plus: 52393752678 in the form of call deposit, agreement deposit, time deposit and other deposits purchased with idle raised funds
Redemption of products upon maturity
Plus: 119691022 in the form of call deposit, agreement deposit, time deposit and other deposits purchased with idle raised funds
Interest income transferred back when the product is due
Less: purchase of structured deposits with idle raised funds 24890000000
Plus: structural deposits purchased with idle raised funds are transferred back to 2489000000 upon maturity
Plus: due income from purchasing structured deposits with idle raised funds 145691188
Less: investment project expenditure of raised funds 40570373637
Including: 22888386667 invested in previous years
In 2021, 17681986970 yuan was invested
Plus: interest income of special account for raised funds 25702320
Less: 3522490 transferred out of balance
As of December 31, 2021, the balance of the special account for raised funds was 15824479
3、 Use of raised funds in 2021
（1） Use of funds for projects invested with raised funds (hereinafter referred to as “projects invested with raised funds”)
In 2021, the company actually used 17681986970 yuan of raised funds for raised investment projects. See the attached table for details
Use of raised funds.
（2） Advance investment and replacement of investment projects with raised funds
As of October 22, 2020, the company has invested in advance the issuance expenses and the funds raised for the project with self raised funds
The total amount is 3627308238 yuan, including 385903509 yuan of self owned funds to pay the issuance expenses (excluding tax). Dahua Certified Public Accountants (special general partnership) conducted a special audit on the company’s use of raised funds to replace the paid issuance expenses with its own funds, and issued the assurance report on Elite Color Environmental Resources Science&Technology Co.Ltd(002998) using raised funds to replace the paid issuance expenses in advance (dahaha Zi [2020] No. 007958); RMB 3241404729 was paid for the raised investment project by means of bank acceptance and letter of credit, and China Industrial Securities Co.Ltd(601377) issued the “verification opinion on Elite Color Environmental Resources Science&Technology Co.Ltd(002998) using bank acceptance and letter of credit to pay the raised investment project fund and replacing it with the raised fund in the same amount” for review and confirmation.
The company held the 14th meeting of the second board of directors and the 12th meeting of the second board of supervisors on October 15, 2020, deliberated and adopted the proposal on replacing the self owned funds with the raised funds, and agreed to use the raised funds to replace the self owned funds that have paid the issuance expenses of RMB 385903509 (excluding tax) as of October 15, 2020. The independent directors of the company expressed their independent opinions on the matter.
On October 22, 2020, the 15th meeting of Elite Color Environmental Resources Science&Technology Co.Ltd(002998) the second board of directors deliberated and adopted the proposal on using bank acceptance bills and letters of credit to pay the funds of raised investment projects and replace them with the raised funds in the same amount. On October 22, 2020, Elite Color Environmental Resources Science&Technology Co.Ltd(002998) the 13th meeting of the second session of the board of supervisors deliberated and adopted the proposal on using bank acceptance bills and letters of credit to pay the funds of raised investment projects and replace them with the raised funds in the same amount. During the implementation of the raised investment project, the company plans to pay the raised capital investment project through bank acceptance bill and letter of credit, and carefully check the replacement of the raised capital in the same amount. As of December 31, 2021, the company has replaced 11696625612 yuan with the raised capital in the same amount.
The company has fulfilled the necessary decision-making procedures by using the raised funds to replace the self raised funds invested in the raised investment project in advance, and there is no violation of the use plan of the raised funds, no change in the investment direction of the raised funds and damage to the interests of shareholders. （3） Cash management and investment of idle raised funds in related products
On October 15, 2020, the company held the 14th meeting of the second board of directors and the 12th meeting of the second board of supervisors, and deliberated and adopted the proposal on using some idle raised funds for cash management. The proposal mainly includes: in order to control investment risks and not affect the normal operation of investment projects with raised funds, the investment products using some idle raised funds for cash management are limited to bank principal guaranteed financial products and structured deposit products with high safety and liquidity; The company plans to use the amount of no more than 300 million yuan (inclusive) for cash management, and the funds within the amount can be accumulated for use; Valid within 12 months from the date of deliberation and approval by the general meeting of shareholders of the company; Within the term, the funds can be used on a rolling basis, and the investment term of a single cash management product shall not exceed 12 months; The board of directors of the company will authorize the chairman to exercise the investment decision-making power and sign relevant documents in accordance with the authorization of the general meeting of shareholders; The Finance Department of the company is responsible for the specific implementation. The independent directors and the sponsor of the company all expressed their consent to the proposal.
On November 10, 2020, the company held the 16th meeting of the second board of directors and the 14th meeting of the second board of supervisors, deliberated and adopted the proposal on using some idle self owned funds for cash management, used idle self owned funds with a limit of no more than 40 million yuan for cash management, and purchased investment products with high safety, good liquidity and a term of no more than 12 months issued by financial institutions. Within the limit of 40 million yuan, the fund can be recycled within 12 months from the date of adoption by the board of directors of the company, and the chairman is authorized to exercise the investment decision-making power and sign relevant contract documents. The independent directors and the sponsor of the company all expressed their consent to the proposal.
In 2020, the details of the company’s purchase of principal guaranteed financial products with raised funds can be found on the website of Shenzhen Stock Exchange (www.szse. CN.) Announcement of the company on the use of some idle raised funds for cash management and its progress (Announcement No.: 2020021, 2020026).
In 2021, the company used some idle raised funds for cash management as follows:
Signatory’s product name income type investment date investment amount redemption amount investment period investment income closing amount
