Changjiang Securities Company Limited(000783) underwriting and recommendation Co., Ltd
About Nacity Property Service Group Co.Ltd(603506)
Verification opinions on cash management with idle raised funds
Changjiang Securities Company Limited(000783) underwriting and recommendation Co., Ltd. (hereinafter referred to as “Changjiang recommendation” or “the recommendation institution”) as a recommendation institution in the continuous supervision stage of initial public offering of securities of Nacity Property Service Group Co.Ltd(603506) (hereinafter referred to as ” Nacity Property Service Group Co.Ltd(603506) ” or “the company”), in accordance with the administrative measures for securities issuance and listing recommendation business and the stock listing rules of Shanghai Stock Exchange In accordance with the relevant provisions of the guidelines on self discipline supervision of listed companies of Shanghai Stock Exchange No. 1 – standardized operation and the guidelines on supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds of listed companies, Nacity Property Service Group Co.Ltd(603506) intends to use idle raised funds for cash management, and issues the following verification opinions:
1、 Basic information of raised funds
With the approval of the reply on Approving the initial public offering of shares by Nacity Property Service Group Co.Ltd(603506) Service Co., Ltd. (zjxk [2017] No. 2333) issued by China Securities Regulatory Commission and the consent of Shanghai Stock Exchange, Nacity Property Service Group Co.Ltd(603506) Service Co., Ltd. issued 1984127 million RMB ordinary shares (A shares) in the initial public offering, with the issue price of RMB 16.25 per share and the total raised funds of RMB 322420600, The net amount of raised funds after deducting the issuance expenses of RMB 349377 million is RMB 287483000. The above raised funds have been verified by Tianjian Certified Public Accountants (special general partnership) and will be released in 2018
The capital verification report (tjy [2018] No. 22) was issued on January 29, 2018.
2、 Use of raised funds
As of December 31, 2021, the investment projects of funds raised by the company’s initial public offering are as follows: unit: 10000 yuan
No. the total amount of the promised investment of the raised funds for the investment project of the raised funds has been invested by the end of 2021
amount of money
1 property management intelligent system project 70 China Tianying Inc(000035) 6391
2. National property service business development project Shanghai Pudong Development Bank Co.Ltd(600000) –
3 community o2o platform construction project 3 Ping An Bank Co.Ltd(000001) 01574
4 apartment rental service items 10785801103566
5. Human resources construction project 196249158702
Total 28748291720233
As the construction of the project invested by raised funds needs a certain period, according to the construction progress of the project invested by raised funds, some of the raised funds are idle in the short term at this stage.
3、 Basic information of idle raised funds used this time
(I) purpose of cash management
In order to improve the use efficiency of raised funds and make rational use of idle funds, improve the utilization rate of raised funds, increase the company’s income and seek more return on investment for the company’s shareholders without affecting the company’s normal operation and the construction of raised investment projects.
(II) source of funds
The funds for cash management this time come from some temporarily idle raised funds.
(III) types of cash management products
The company plans to use idle raised funds to invest in capital guaranteed products with high safety and good liquidity. The investment products of cash management shall comply with the Listing Rules of Shanghai Stock Exchange, the regulatory guidelines for listed companies No. 2 – regulatory requirements for the management and use of raised funds of listed companies, the self regulatory guidelines for listed companies No. 1 – standardized operation, the articles of association and other relevant provisions of the CSRC.
(IV) cash management limit
The company plans to use the temporarily idle raised funds with a maximum amount of no more than RMB 80 million for cash management, which can be used on a rolling basis.
(V) cash management period
It shall be valid within 12 months from the date of deliberation and adoption by the board of directors at the second meeting of the third board of directors. After the cash management of idle raised funds expires, it will be returned to the special account for raised funds in time.
(VI) cash management implementation unit
Cash management is carried out by Nacity Property Service Group Co.Ltd(603506) , Zhejiang Yuedu Network Technology Co., Ltd. and Zhejiang Dayue Business Operation Management Co., Ltd. the chairman of the company is authorized to exercise decision-making power and sign relevant contract documents within the above authorization period and cash management limit. The specific matters shall be organized and implemented by the financial management center of the company.
4、 Investment risk and risk control measures
(I) investment risk
Although the company plans to choose principal guaranteed financial products, the financial market is greatly affected by the macro-economy. The company will intervene in a timely and appropriate manner according to the economic situation and changes in the financial market, and it is not excluded that the investment is affected by market fluctuations.
(II) risk control measures
1. Carry out in strict accordance with the Listing Rules of Shanghai Stock Exchange, the articles of association and other relevant laws, regulations and rules, carefully screen investment objects, and select investment and financial products with high safety, good liquidity and meeting the capital preservation requirements. Investment and financial products may not be pledged.
2. The financial management center of the company shall establish an investment account to timely analyze and track the changes in the net value of products. If adverse factors are found or judged in the evaluation, corresponding measures will be taken in time to control the investment risk.
3. The independent directors and the board of supervisors have the right to continuously supervise and inspect the use of the raised funds, and can hire professional institutions to audit when necessary.
4. The company will disclose the purchase and profit and loss of financial products during the reporting period in the regular report in accordance with the relevant provisions of Shanghai Stock Exchange and other regulatory authorities.
5、 Impact on the daily operation of the company
The company’s cash management with the raised funds this time is carried out on the premise of ensuring that the company does not affect the normal operation of the raised investment projects and ensure the safety of the raised funds. Appropriate financial management is conducive to improving the company’s fund use efficiency, obtaining certain financial income, seeking more investment returns for the company and all shareholders, and will not have a significant impact on the company’s main business, financial status and operating results in the future.
At the same time, it can improve the efficiency of capital use, obtain a certain return on investment, further improve the performance level of the company, and seek more return on investment for the company and shareholders.
6、 Relevant approval procedures and audit opinions
(I) opinions of the board of directors
The second meeting of the third board of directors of the company deliberated and approved the proposal on using idle raised funds for cash management, and agreed that the company would purchase low-risk and principal guaranteed financial products with idle raised funds of no more than 80 million yuan.
(II) opinions of the board of supervisors
The second meeting of the third board of supervisors of the company deliberated and approved the proposal on cash management with idle raised funds and issued clear consent opinions.
(III) opinions of independent directors
The independent directors of the company expressed clear consent to the above matters of cash management with idle raised funds.
(IV) general meeting of shareholders
The proposal does not need to be submitted to the general meeting of shareholders of the company for deliberation.
7、 Verification opinions
After verification, the recommendation institution believes that:
1. The company’s use of idle raised funds for cash management has been deliberated and approved by the board of directors, and the independent directors and the board of supervisors have expressed their consent, which is in line with relevant laws and regulations and has performed necessary legal procedures.
2. The company’s use of idle raised funds for cash management this time complies with the relevant provisions of the stock listing rules of Shanghai Stock Exchange, the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 – standardized operation, and the regulatory guidelines for listed companies No. 2 – regulatory requirements for the management and use of raised funds of listed companies, and there is no disguised change in the use of raised funds, It will not affect the normal implementation of the investment plan of raised funds.
3. On the premise of ensuring the normal operation and capital demand of the company and not affecting the normal implementation of the investment projects with raised funds, the company can improve the efficiency of capital use and obtain certain investment income through cash management, which is in line with the interests of the company and all shareholders.
The sponsor has no objection to the company’s use of some idle raised funds for cash management. (no text below)
