Dawning Information Industry Co.Ltd(603019) : Dawning Information Industry Co.Ltd(603019) suggestive announcement on the subsidiary’s plan to apply for public offering and listing on the Beijing stock exchange

Securities code: Dawning Information Industry Co.Ltd(603019) securities abbreviation: Dawning Information Industry Co.Ltd(603019) Announcement No.: 2022016 Dawning Information Industry Co.Ltd(603019)

Suggestive announcement on the subsidiary’s intention to apply for public offering and listing on the Beijing stock exchange

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Important risk tips:

There is a risk that the application of Shuguang digital innovation for public offering of shares and listing on the Beijing stock exchange cannot pass the review of listing on the Beijing stock exchange or registration with the CSRC.

There is a risk that Shuguang digital innovation will not be listed on the Beijing stock exchange due to the failure of public offering.

Since Dawning Information Industry Co.Ltd(603019) (hereinafter referred to as “the company”) holding subsidiary Shuguang data infrastructure innovation technology (Beijing) Co., Ltd. (hereinafter referred to as “Shuguang digital innovation”) was listed in the national small and medium-sized enterprise share transfer system (hereinafter referred to as “the new third board”) in 2018, it has been in good operation and meets the conditions for listing on the transfer board, It is proposed to apply for public offering of shares to unspecified QFII and listing on Beijing stock exchange (hereinafter referred to as “Beijing stock exchange”). On April 13, 2022, the company deliberated and passed the proposal on the public offering of shares by its subsidiary dawning digital innovation and its listing on the Beijing stock exchange.

1、 Basic information of Dawning digital creation issuance scheme

The specific scheme for Shuguang digital innovation to apply for public offering of shares to unspecified qualified investors and listing on the Beijing stock exchange is as follows:

1. Type of shares issued this time: RMB ordinary shares.

2. Par value of issued shares: the par value of each share is 1 yuan.

3. Issuing objects: not less than 100 persons, that is, they shall meet the minimum number requirements specified in the stock listing rules of Beijing stock exchange (for Trial Implementation), and shall meet the qualified investors who have opened the stock trading authority of Beijing stock exchange as specified by national laws and regulations and securities regulatory authorities (except the buyers prohibited by national laws and regulations and other regulatory requirements that the company must comply with).

4. Pricing method: the issuing price shall be determined through independent negotiation between the company and the lead underwriter, online bidding or offline inquiry by qualified investors. The final pricing method will be determined by the board of directors authorized by the general meeting of shareholders and the lead underwriter through negotiation according to the specific circumstances and regulatory requirements.

5. Issue price: the reserve price of this issue is 36 yuan / share, and the final issue price will be determined through negotiation between the board of directors and the lead underwriter authorized by the general meeting of shareholders, taking into account the market environment, inquiry results, trading price of the company’s shares, valuation of comparable companies in the same industry and other factors.

6. Number of shares issued this time:

The company plans to issue no more than (7.9 million) shares to unspecified qualified investors, including the number of shares and excluding the over allotment option.

7. Over Allotment: the company and the lead underwriter will choose the opportunity to adopt the over allotment option according to the specific circumstances. The number of shares issued with the over allotment option shall not exceed 15% (i.e. no more than 1185000 shares) of the number of shares issued in this public offering, and shall be disclosed in the prospectus and issuance announcement.

8. Purpose of raised funds: after deducting relevant expenses, the raised funds will be used for product upgrading and industrial R & D projects of liquid cooling data center and supplement working capital in accordance with national laws and regulations, regulations of regulatory authorities and business development needs of the company.

9. Underwriting method: balance underwriting.

10. Proposed listing place and lock-in arrangement: after the issuance is completed, the company’s shares will be listed on the Beijing stock exchange. On the day of listing, the company’s shares will be terminated from the national share transfer system for small and medium-sized enterprises, and comply with the requirements of the stock listing rules of Beijing stock exchange (for Trial Implementation) on the lock-in period.

11. Valid within 12 months from the date of deliberation and approval by the general meeting of shareholders.

2、 Main financial data of Dawning digital creation

The audited main business income of Shuguang digital creation in 2020 and 2021 was 335 million yuan and 408 million yuan respectively, the net profit (calculated based on the lower one before and after deducting extraordinary profits and losses) was 66 million yuan and 88 million yuan respectively, and the weighted average return on net assets (calculated based on the lower one before and after deducting extraordinary profits and losses) was 56.86% and 46.40% respectively, Meet the financial conditions for listing on the Beijing stock exchange as stipulated in relevant rules.

3、 Important risk tips

1. There is a risk that the application of Shuguang digital innovation for public offering of shares and listing on the Beijing stock exchange cannot pass the examination of the issuance and listing of the Beijing stock exchange or the registration of the CSRC.

2. There is a risk that dawning digital innovation cannot be listed on the Beijing stock exchange due to the failure of public offering. Investors should pay attention to investment risks and invest cautiously. It is hereby announced.

Dawning Information Industry Co.Ltd(603019) board of directors April 15, 2022

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