Jiangsu Bide Science And Technology Co.Ltd(605298) : China Industrial Securities Co.Ltd(601377) verification opinions on Jiangsu Bide Science And Technology Co.Ltd(605298) using some temporarily idle raised funds for cash management

China Industrial Securities Co.Ltd(601377)

About Jiangsu Bide Science And Technology Co.Ltd(605298)

Verification opinions on cash management using some temporarily idle raised funds

China Industrial Securities Co.Ltd(601377) (hereinafter referred to as ” China Industrial Securities Co.Ltd(601377) ” or “the sponsor”) as a sponsor of Jiangsu Bide Science And Technology Co.Ltd(605298) (hereinafter referred to as ” Jiangsu Bide Science And Technology Co.Ltd(605298) ” or “the company”) for initial public offering and listing of shares, in accordance with the requirements of the administrative measures for securities issuance and listing sponsorship business, the stock listing rules of Shanghai Stock Exchange and other relevant documents, The cash management matters of Jiangsu Bide Science And Technology Co.Ltd(605298) using some temporarily idle raised funds for cash management have been carefully verified, and the verification results are as follows:

1、 Development of entrusted financial management using some idle raised funds in 2021

On April 2, 2021, the 14th meeting of the second board of directors of the company deliberated and approved that the company plans to use the temporarily idle raised funds of no more than 200 million yuan (including 200 million yuan) for cash management without affecting the normal progress of the company’s investment plan of raised funds, and the service life is no more than one year (including one year) from the date of deliberation and approval of the board of directors. Within the above-mentioned limit and term, the company can recycle and roll.

As of the date of issuance of this verification report, the company has used the temporarily idle raised funds for cash management of 130 million yuan.

2、 Basic information of entrusted financial management using some temporarily idle raised funds

On the premise of ensuring that the normal progress of the company’s investment plan of raised funds will not be affected, the company plans to use the temporarily idle raised funds of no more than 200 million yuan (including 200 million yuan) for cash management, and the service life is no more than one year (including one year) from the date of deliberation and approval by the board of directors. Within the above-mentioned limit and term, the company can recycle and roll. The income obtained by the company from using the temporarily idle raised funds for cash management will be preferentially used to make up for the insufficient investment amount of the raised funds investment projects, and the funds will be managed and used in strict accordance with the requirements of relevant raised funds supervision measures. After the cash management expires, it will be returned to the special account for raised funds in time.

(I) basic information of the other party of the entrusted financial management agreement

The counterparties of financial products purchased by the company are banks, securities companies and other financial institutions with large scale, strong strength and legal business qualification. There is no related relationship or other relationship between the counterparty and the listed company, the controlling shareholder of the listed company, the person acting in concert and the actual controller in terms of property rights, business, assets, creditor’s rights and debts, personnel, etc.

(II) description of products to be invested

The company will strictly control risks in accordance with the company law, the securities law, the Listing Rules of Shanghai Stock Exchange and other relevant provisions. It plans to use the temporarily idle raised funds to purchase financial products with high safety, good liquidity and low risk level, and such cash management products shall not be used for pledge or investment for the purpose of securities investment.

(III) risk control measures

The financial department of the company will timely analyze and track the investment direction of financial products and project progress. Once adverse factors are found or judged, corresponding measures will be taken in time to control investment risks. The Audit Department of the company shall conduct daily supervision on the use of funds and conduct comprehensive inspection on relevant investment products on a regular basis. Independent directors and the board of supervisors have the right to supervise and inspect the use of funds, and can hire professional institutions to audit when necessary.

(IV) authorization

In order to improve efficiency, the board of directors of the company authorizes the management of the company to exercise investment decision-making power and sign relevant documents within the validity period of the above quota and resolution, including but not limited to: selecting qualified professional financial institutions, clarifying the amount and period of cash management, selecting products / business varieties, signing contracts and agreements, and the management of the company shall organize relevant departments to implement them.

3、 The impact of using some temporarily idle raised funds for cash management on daily operation under the premise of complying with national laws and regulations and ensuring that it does not affect the normal operation of the company, the normal progress of the company’s investment plan of raised funds and the safety of raised funds, the company uses some temporarily idle raised funds for cash management, which will not affect the daily operation of the company and the normal development of investment projects with raised funds, There are no circumstances damaging the interests of the company and shareholders. Reasonable cash management of the temporarily idle raised funds can improve the efficiency of the company’s fund use and increase a certain investment income, which is in line with the interests of the company and all shareholders.

4、 Approval procedures for cash management using some temporarily idle raised funds

Jiangsu Bide Science And Technology Co.Ltd(605298) the fourth meeting of the third board of directors deliberated and adopted the proposal on using some temporarily idle raised funds for cash management Jiangsu Bide Science And Technology Co.Ltd(605298) the proposed use of some temporarily idle raised funds for cash management has fulfilled the necessary deliberation procedures and met the relevant regulatory requirements.

5、 Verification opinions of the recommendation institution using part of the temporarily idle raised funds for cash management

After verification, the recommendation institution believes that:

1. As of the issuance date of this verification report, Jiangsu Bide Science And Technology Co.Ltd(605298) used the temporarily idle raised funds for cash management, amounting to 130 million yuan Jiangsu Bide Science And Technology Co.Ltd(605298) the fourth meeting of the third board of directors has considered and approved the implementation of entrusted financial management using some idle raised funds in 2021.

2. The board of directors has made clear that the use of idle funds is in line with the necessary review and approval procedures of the company The requirements of relevant provisions 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 guidelines for the self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 – standardized operation;

3. Jiangsu Bide Science And Technology Co.Ltd(605298) the use of some temporarily idle raised funds for cash management does not violate the relevant commitments of the raised funds investment projects, does not affect the normal progress of the raised funds investment projects, and does not change the raised funds investment projects in a disguised manner and damage the interests of shareholders; On the premise of not affecting the normal progress of the investment plan of the raised funds, Jiangsu Bide Science And Technology Co.Ltd(605298) through cash management, it can improve the use efficiency of funds and obtain certain income, which is in line with the interests of Jiangsu Bide Science And Technology Co.Ltd(605298) and all shareholders.

In conclusion, the recommendation institution agrees that Jiangsu Bide Science And Technology Co.Ltd(605298) this time use some temporarily idle raised funds for cash management.

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