catalogue
1、 Assurance report on the annual deposit and use of raised funds Page 1-2 II. Special report on the annual deposit and use of raised funds……………….. page 3-9
Verification report on annual deposit and use of raised funds
TJS [2022] No. 3619
All shareholders of Hangzhou Zhengqiang transmission Co., Ltd.:
We have verified the attached special report on the annual storage and use of raised funds in 2021 prepared by the board of directors of Hangzhou Zhengqiang transmission Co., Ltd. (hereinafter referred to as Zhengqiang Co., Ltd.).
1、 Restrictions on the users and purposes of the report
This assurance report is only used for the disclosure of the annual report of Zhengqiang Co., Ltd. and shall not be used for any other purpose. We agree to take this assurance report as a necessary document for the annual report of Zhengqiang Co., Ltd., submit it together with other documents and disclose it to the public.
2、 Responsibilities of the board of directors
The responsibility of the board of directors of Zhengqiang Co., Ltd. is to provide true, legal and complete relevant materials, prepare the special report on the annual storage and use of raised funds in accordance with the self regulatory guidelines for listed companies on Shenzhen Stock Exchange No. 2 – standardized operation of companies listed on GEM (SZS [2022] No. 14) and relevant format guidelines, and ensure that its contents are true, accurate and complete, There are no false records, misleading statements or major omissions.
3、 Responsibilities of Certified Public Accountants
Our responsibility is to independently put forward the assurance conclusion of the above report prepared by the board of directors of Zhengqiang Co., Ltd. on the basis of the implementation of the assurance work.
4、 Job overview
Hangzhou Zhengqiang transmission Co., Ltd
Special report on the annual storage and use of raised funds
According to the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 2 – standardized operation of GEM listed companies (SZS [2022] No. 14) and relevant format guidelines issued by Shenzhen Stock Exchange, the deposit and use of the company’s raised funds in 2021 are specially explained as follows.
1、 Basic information of raised funds
（1） Actual amount of raised funds and time of fund arrival
According to the reply on Approving the registration of initial public offering of Hangzhou Zhengqiang transmission Co., Ltd. (zjxk [2021] No. 2745) issued by China Securities Regulatory Commission, the company has Sinolink Securities Co.Ltd(600109) adopted the balance underwriting method to publicly issue 20 million RMB ordinary shares (A shares) to the public at an issue price of RMB 17.88 per share, raising a total of RMB 357.6 million, After deducting 49.28 million yuan of underwriting and recommendation fees, the raised capital was 308.32 million yuan, which was remitted to the raised capital supervision account of the company by the lead underwriter Sinolink Securities Co.Ltd(600109) on November 17, 2021. In addition, after deducting 183374 million yuan of additional external expenses directly related to the issuance of equity securities, such as online issuance fee, prospectus printing fee, reporting accountant fee and lawyer fee, the net amount of funds raised by the company this time is 2899826 million yuan. The availability of the above raised funds has been verified by Tianjian Certified Public Accountants (special general partnership), who issued the capital verification report (Tianjian Yan [2021] No. 644).
（2） Use and balance of raised funds
Monetary unit: RMB 10000
Item No. amount
Net amount of raised funds a 2899826
Project input B1 6.37
Net interest income B2 45.62
Amount incurred in the current period idle raised funds for cash management B31740000 net amount [Note 1]
Advance investment of self raised funds and replacement of b496103 gold investment projects [Note 2]
Item No. amount
Supplementary working capital of over raised funds B5 24.09 [Note 3]
Balance of raised funds to be raised C = a-b1 + B2 – 1065239 b3-b4-b5
Actual balance of raised funds D 1065239
Difference e = C-D
[Note 1] after the deliberation of the ninth session of the first board of directors and the approval of the second extraordinary general meeting of shareholders in 2021, the company uses the maximum amount of raised funds in RMB not more than 270 million for cash management on the premise that it does not affect the construction of investment projects with raised funds, the normal operation of the company and the safety of funds. The validity period of cash management is 12 months from the date of deliberation and approval of the general meeting of shareholders. Zhengqiang Co., Ltd. purchased 54 million yuan of Principal Guaranteed floating income structured deposit products issued by Shanghai Pudong Development Bank Co.Ltd(600000) Hangzhou Xiaoshan sub branch on December 24, 2021; On December 24, 2021, it purchased 100 million yuan of structural deposit products with guaranteed floating income issued by China Merchants Bank Co.Ltd(600036) Hangzhou Xiaoshan sub branch; On December 23, 2021, it purchased 20 million yuan of fixed income deposit products with guaranteed principal issued by Industrial And Commercial Bank Of China Limited(601398) Anji sub branch
[Note 2] before the raised funds are actually in place, the company has used the self raised funds to invest in the construction of the raised funds investment project in advance.
As of November 17, 2021, the self raised funds of the company invested in the raised capital investment projects in advance totaled RMB 9.6103 million. The above self raised funds invested in the raised capital investment projects in advance were verified by Tianjian Certified Public Accountants (special general partnership), who issued the verification report on Hangzhou Zhengqiang transmission Co., Ltd. invested in the raised capital investment projects in advance with self raised funds (tianjianshen [2021] No. 10066). As of December 27, 2021, the company has transferred the above funds to its own capital account
[Note 3] after the deliberation of the ninth session of the first board of directors and the resolution of the second extraordinary general meeting of shareholders in 2021, it is agreed that the company will permanently supplement the working capital of the company with part of the over raised capital of 890000 yuan from the initial public offering. As of December 31, 2021, the company has transferred the above-mentioned over raised capital to the company’s own capital account of 240900 yuan
2、 Deposit and management of raised funds
（1） Management of raised funds
In order to standardize the management and use of raised funds, improve the efficiency and efficiency of fund use, and protect the rights and interests of investors, In accordance with the provisions of the stock exchange of the people’s Republic of China (Shenzhen Stock Exchange) No. 1292 of 2020 and the regulatory guidelines for the listing of companies on the stock exchange of the people’s Republic of China (Shenzhen Stock Exchange No. 1292) and the regulatory documents on the Shenzhen Stock Exchange (Shenzhen Stock exchange) No. 1292 of 2020, Combined with the actual situation of the company, the measures for the management of the raised funds of Hangzhou Zhengqiang transmission Co., Ltd. (hereinafter referred to as the management measures) are formulated. According to the management measures, the company has implemented a special account for the raised funds, set up a special account for the raised funds in the bank, and signed the tripartite supervision agreement on the raised funds with China Merchants Bank Co.Ltd(600036) Hangzhou Xiaoshan sub branch and Shanghai Pudong Development Bank Co.Ltd(600000) Hangzhou Xiaoshan sub branch together with the sponsor Sinolink Securities Co.Ltd(600109) on November 25, 2021, clarifying the rights and obligations of all parties; The company and Zhejiang Zhengqiang Auto Parts Co., Ltd. (hereinafter referred to as Zhengqiang Parts Co., Ltd.) together with the sponsor Sinolink Securities Co.Ltd(600109) signed the tripartite supervision agreement on raised funds with Industrial And Commercial Bank Of China Limited(601398) Anji sub branch on December 18, 2021, clarifying the rights and obligations of all parties. There is no significant difference between the tripartite supervision agreement and the model tripartite supervision agreement of Shenzhen Stock Exchange, and the company has strictly complied with the raised funds.
（2） Storage of raised funds in special account
As of December 31, 2021, the company has five special accounts for raised funds, and the deposits of raised funds are as follows:
Monetary unit: RMB
Account name deposit bank account number raised fund balance remarks
China Merchants Bank Co.Ltd(600036) shares 57190388431011110043467336 special account for raised funds Co., Ltd
Shanghai Pudong Development
Bank of China Limited 950700788019 Shenzhen Tellus Holding Co.Ltd(000025) 3458878127 special account for raised funds Hangzhou Branch
Xiaoshan sub branch
Shanghai Pudong Development Co., Ltd
Bank Co., Ltd. 95070078801 China Vanke Co.Ltd(000002) 539174466965 special account for raised funds Hangzhou Branch
Xiaoshan sub branch
Shanghai Pudong Development
Bank Co., Ltd. 950700788014 Shenzhen Tellus Holding Co.Ltd(000025) 40274713705 special account for raised funds Company Hangzhou Branch
Xiaoshan sub branch
Zhengqiang parts China Industrial And Commercial Bank Of China Limited(601398)
Division Co., Ltd. 12052900291 Shenzhen Huakong Seg Co.Ltd(000068) 72100864500 special account for raised funds Anji sub branch
Total 10652390633
3、 Actual use of raised funds this year
（1） Comparison table of use of raised funds
1. See Annex 1 of this report for the comparison table of the use of raised funds.
2. Use of over raised funds in the current period
After deliberation at the 9th meeting of the first board of directors on December 3, 2021 and approved by the second extraordinary general meeting of shareholders in 2021, it is agreed that the company will permanently supplement the working capital of the company with part of the over raised capital of 890000 yuan from the initial public offering. As of December 31, 2021, the amount of the above-mentioned over raised capital transferred to the company’s own capital account by the company is 240900 yuan.
（2） Description of abnormal conditions in the project invested by raised funds
There are no abnormalities in the investment projects of the company with raised funds.
（3） Description of the situation that the benefits of the investment projects with raised funds cannot be calculated separately
The project is still in the investment period, and there is no situation that the benefits of the project invested with raised funds cannot be calculated separately.
4、 Change the use of funds for investment projects with raised funds
The company does not change the investment projects of raised funds.
5、 Problems in the use and disclosure of raised funds
This year, there were no major problems in the use and disclosure of the raised funds of the company.
Attachment: 1 Comparison table of use of raised funds
Hangzhou Zhengqiang transmission Co., Ltd. April 19, 2002 Annex 1
Comparison table of use of raised funds
