Shan Dong Kexing Bioproducts Co.Ltd(688136) : China Securities Co.Ltd(601066) special verification report on the deposit and use of raised funds in Shan Dong Kexing Bioproducts Co.Ltd(688136) 2021

About Shan Dong Kexing Bioproducts Co.Ltd(688136)

Special verification report on the deposit and use of raised funds in 2021

China Securities Co.Ltd(601066) (hereinafter referred to as " China Securities Co.Ltd(601066) securities" and "sponsor") as the sponsor of Shan Dong Kexing Bioproducts Co.Ltd(688136) (hereinafter referred to as " Shan Dong Kexing Bioproducts Co.Ltd(688136) " and "company") for initial public offering of shares and listing on the science and innovation board, In accordance with the measures for the administration of securities issuance and listing recommendation business, 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 Listing Rules of Shanghai Stock Exchange on the science and innovation board, the annual deposit and use of raised funds in Shan Dong Kexing Bioproducts Co.Ltd(688136) 2021 were carefully verified. The details are as follows: I. Basic information of raised funds

According to the reply on Approving the registration of Shan Dong Kexing Bioproducts Co.Ltd(688136) initial public offering issued by the China Securities Regulatory Commission (zjxk [2020] No. 2655), the company issued 49675300 ordinary shares in the initial public offering of RMB, with a par value of RMB 1.00 per share and an issue price of RMB 22.33 per share. The total amount of funds raised in this offering was 110924944900 yuan, after deducting the issuance expenses of RMB 11460852984, The net amount of raised funds was 99464091916 yuan.

All the above-mentioned raised funds have been in place, and the capital has been verified by Dahua Certified Public Accountants (special general partnership), and the capital verification report dhyz [2020] No. Tibet Development Co.Ltd(000752) was issued on December 7, 2020.

The raised funds invested in the projects invested with raised funds in the current period are 540473200 yuan. As of December 31, 2021, the use and balance of the raised funds are as follows:

Unit: Yuan

Use of project raised funds

Total raised funds 110924944900

Less: issuance expenses 11460852984

The net amount of raised funds is 99464091916

Less: cumulative investment amount of raised investment projects 57619651345

Less: balance of purchase of financial products, time deposits and structured deposits-

Plus: net amount of bank interest income deducting handling charges 1231009029

As of December 31, 2021, the balance of raised funds was 43075449600

In order to standardize the management and use of raised funds and protect the rights and interests of investors, the company has formulated the Shan Dong Kexing Bioproducts Co.Ltd(688136) raised funds management system (hereinafter referred to as "raised funds management system") 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 Shanghai Stock Exchange on the science and innovation board and other laws and regulations, and in combination with the actual situation of the company. The company shall deposit the raised funds in the special account for raised funds approved by the board of directors for centralized management, and manage and use the raised funds in accordance with the specified requirements.

On December 8, 2020, the company signed the tripartite supervision agreement on the special account storage of raised funds with the sponsor and the commercial bank storing the raised funds respectively, and on June 21, 2021, the company signed the quadripartite supervision agreement on the special account storage of raised funds with Hua Xia Bank Co.Limited(600015) Shenzhen Science and Technology Park sub branch, the sponsor and the wholly-owned subsidiary Shenzhen Kexing Pharmaceutical Co., Ltd. (hereinafter referred to as "Shenzhen Kexing pharmaceutical"). Strict examination and approval procedures shall be implemented for the use of raised funds to ensure that the special funds are used for special purposes; The regulatory agreement clearly stipulates the relevant responsibilities and obligations of the issuer, its subsidiaries, recommendation institutions and commercial banks that deposit the raised funds, and defines the rights and obligations of all parties.

As of December 31, 2021, the storage of funds raised by the company and its subsidiaries is listed as follows:

Unit: Yuan

Account opening entity bank name bank account number closing date balance storage method

China Construction Bank Corporation(601939) Shenzhen 442501 Shenzhen Sed Industry Co.Ltd(000032) 0918113011942944 current Zhenhua sub branch 818

China Everbright Bank Company Limited Co.Ltd(601818) Shenzhen 782101808038210664139340150 current Shennan East Road sub branch

China Merchants Bank Co.Ltd(600036) shenzhen Bao'an 53190225071050312595503263 current Kexing biological sub branch

Pharmaceutical Co., Ltd. Industrial And Commercial Bank Of China Limited(601398) Shenzhen 4 Shenzhen Kaifa Technology Co.Ltd(000021) 920076268040435797 current Co., Ltd. Hongwei sub branch 93

Bank Of China Limited(601988) Zhangqiu sub branch 211742709194772699590 current account

Ping An Bank Co.Ltd(000001) Shenzhen Shidai 1582654123009140341471 current finance sub branch

Bank Of China Limited(601988) Qianhai Shekou 77707413867626070451 current branch

Shenzhen Kexing

Pharmaceutical Co., Ltd. Hua Xia Bank Co.Limited(600015) Shenzhen Science Park sub branch 108790 Ping An Bank Co.Ltd(000001) 690374449115934 current company

Total 43075449600

Note: 1. During the reporting period, Hua Xia Bank Co.Limited(600015) Shenzhen Science Park sub branch received a transfer of RMB 50 million from China Merchants Bank Co.Ltd(600036) Shenzhen Bao'an sub branch on July 5, 2021 for the upgrading and construction project of the R & D center;

2. The balance of raised funds at the end of 2021 of Hua Xia Bank Co.Limited(600015) Shenzhen Science and Technology Park sub branch of Shenzhen Kexing Pharmaceutical Co., Ltd. includes 4418632447 yuan of "seven day notice deposit", which is deposited in the virtual sub account under the special account for raised funds (Account No.: 108790 Ping An Bank Co.Ltd(000001) 71375).

3、 Actual use of raised funds this year

(I) use of funds for projects invested with raised funds

As of December 31, 2021, the actual use of the company's raised funds is shown in Schedule 1 "use of raised funds".

(II) early investment and replacement of raised investment projects

On April 22, 2021, the company held the 22nd Meeting of the first board of directors, deliberated and passed the proposal on the company's use of raised funds to replace self raised funds invested in advance, and agreed to use 5573155147 yuan of raised funds to replace self raised funds invested in advance.

Dahua Certified Public Accountants (special general partnership) has issued (dahuhe Zi [2021] No. 005285) "assurance report on Shan Dong Kexing Bioproducts Co.Ltd(688136) pre investment of raised funds in investment projects with self raised funds". The board of supervisors and independent directors gave clear consent to the above-mentioned company's use of raised funds to replace self raised funds invested in advance, and the recommendation institution also issued verification opinions.

(III) temporary replenishment of working capital with idle raised funds

As of December 31, 2021, the company has not used idle raised funds to temporarily supplement working capital.

(IV) cash management of idle raised funds and investment in related products

On December 21, 2020, the 19th meeting of the first board of directors of the company in 2020 deliberated and approved the proposal on using some idle raised funds and self owned funds for cash management, and agreed that the company would use some idle raised funds with a maximum balance of no more than 550 million yuan (including 550 million yuan) for cash management without affecting the normal implementation of the company's investment projects with raised funds and ensuring the safety of raised funds, The term of use shall be valid within 12 months from the date of deliberation and approval by the board of directors.

As of December 31, 2021, the company's use of the raised funds is strictly in accordance with the provisions of the raised funds management system and the tripartite supervision agreement on the storage of raised funds.

As of December 31, 2021, the balance of the company's raised funds to purchase financial products was RMB 10000. During the reporting period, the company used some temporarily idle raised funds for cash management to purchase relevant products. See the following table for details:

Unit: Yuan

Deposit bank product name product category purchase amount purchase date maturity date type redemption

Gold point series bullish three-tier structure

Interval 90 day structured deposit 1 Shanghai Pudong Development Bank Co.Ltd(600000) China Vanke Co.Ltd(000002) 02101-18202104-19

Gold point series bullish three-tier structure

China Merchants Bank Co.Ltd(600036) interval 32 day structured deposit 1 Shanghai Pudong Development Bank Co.Ltd(600000) China Vanke Co.Ltd(000002) 02105-26202106-28 Shenzhen Bao'an

Structured dianjin series enterprising District sub branch

Accumulated 21 day structured deposit 100000 China Vanke Co.Ltd(000002) 02109-06202109-30

Looking at the structure of the progressive type of dianjin series

The 31 day settlement Deposit in the two-tier down range is 10000000000. 202110-28202111-29 is a structural deposit