China Securities Co.Ltd(601066)
About Shenzhen Increase Technology Co.Ltd(300713)
Verification opinions on temporarily replenishing working capital with some idle raised funds
China Securities Co.Ltd(601066) (hereinafter referred to as ” China Securities Co.Ltd(601066) ” and “sponsor”) as the sponsor of Shenzhen Increase Technology Co.Ltd(300713) (hereinafter referred to as ” Shenzhen Increase Technology Co.Ltd(300713) ,” listed company “and” company “) for initial public offering of shares and listing on GEM, in accordance with the rules for listing shares on gem of Shenzhen Stock Exchange and the guidelines for standardized operation of companies listed on gem of Shenzhen Stock Exchange The guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds by listed companies and other relevant provisions have verified the temporary replenishment of working capital by Shenzhen Increase Technology Co.Ltd(300713) using some idle raised funds. The verification results are as follows: I. Basic information of raised funds
With the approval of the reply on approving Shenzhen Increase Technology Co.Ltd(300713) initial public offering of shares (zjxk [2017] No. 1784 document) issued by China Securities Regulatory Commission, Shenzhen Increase Technology Co.Ltd(300713) (hereinafter referred to as “the company”) was approved to issue 10625000 RMB ordinary shares (A shares) for the first time, with a par value of 1.00 yuan per share, an issue price of 40.29 yuan per share, a total amount of raised funds of 42808125000 yuan, after deducting the issue expenses of 4308125000 yuan, The net amount of raised funds is 38500000000 yuan. The above raised funds have been verified by Ruihua Certified Public Accountants (special general partnership) and issued the capital verification report (Ruihua Yan Zi [2017] No. 48 Lepu Medical Technology (Beijing) Co.Ltd(300003) ) on October 25, 2017. The company has signed the tripartite supervision agreement on the deposit of the raised funds, and all the raised funds have been deposited in the special account for the raised funds.
2、 Replacement of raised funds and use of some idle raised funds to supplement working capital or cash management
According to the company’s prospectus for initial public offering and listing on GEM, the investment projects and use plans of the funds raised by this public offering are as follows:
Unit: 10000 yuan
Project name project overview the total investment of the project is planned to use the raised funds
No. input
Project name project overview the total investment of the project is planned to use the raised funds
No. input
The intelligent high-frequency switching power supply is mainly used to expand the existing production
1. Production capacity of industrialization project products and 23500 of some products 23500
upgrade
Intelligent high-frequency switching power supply is mainly used for upgrading existing products
2. Technical development of project level and new products of the development center 7500
Development and research
3 others related to main business – 7500
Working capital
Total 38500
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.
At the 13th meeting of the first board of directors and the 8th meeting of the first board of supervisors held on November 15, 2017, the company deliberated and adopted the proposal on using some idle raised funds for cash management. It is agreed that the company plans to use the idle raised funds of no more than 250 million yuan for cash management within 12 months from the date of approval by the general meeting of shareholders, provided that the company has signed the supervision agreement on the raised funds and ensured that it will not affect the construction of the investment projects of the raised funds and the normal operation of the company. Within the above limit and validity period, the fund limit can be used on a rolling basis. The second extraordinary general meeting of shareholders in 2017 held by the company on December 6, 2017 deliberated and approved the proposal on cash management using some idle raised funds.
At the 14th meeting of the first board of directors held on January 10, 2018, the company deliberated and adopted the proposal on using bank acceptance bills to pay the funds of raised investment projects and replace them with the raised funds in the same amount, and agreed that the company would use bank acceptance bills to pay the funds involved in the raised funds investment projects according to the actual situation, and transfer the same amount of funds from the special account of raised funds to the general account of the company. At the same time, for the idle raised funds and financial products that have not yet expired, the company’s own funds shall pay the funds for the raised investment projects in advance, and after the financial products are redeemed at maturity, they shall be replaced in the same amount from the special account for raised funds.
At the 19th meeting of the first board of directors held on June 6, 2018, the company considered and approved the proposal on using some idle raised funds to temporarily supplement working capital, and agreed that the company should use some idle raised funds of no more than 50 million yuan (including 50 million yuan) to temporarily supplement working capital, with a service life of no more than 12 months from the date of deliberation and approval by the board of directors, Return to the special account for raised funds before maturity.
The company used 50 million yuan of temporarily idle raised funds to supplement working capital within the specified period. On April 10, 2019, the company has returned all the above 50 million yuan to the special account for raised funds in advance. For details, see the announcement on early return of raised funds (Announcement No.: 2019021) disclosed on cninfo.com on April 10, 2019.
At the 23rd Meeting of the first board of directors held on November 15, 2018, the company deliberated and approved the proposal on using some idle raised funds for cash management, and agreed that under the condition that the company has signed the supervision agreement on raised funds and ensured that the construction of investment projects with raised funds and the normal operation of the company will not be affected, The company plans to use the idle raised funds of no more than 250 million yuan for cash management within 12 months from the date of approval by the general meeting of shareholders. Within the above amount and validity period, the amount of funds can be used on a rolling basis.
The fourth extraordinary general meeting of shareholders in 2018 held by the company on December 4, 2018 deliberated and approved the proposal on cash management using some idle raised funds.
At the third meeting of the second board of directors and the second meeting of the second board of supervisors held on April 23, 2019, the company deliberated and adopted the proposal on using some idle raised funds to temporarily supplement working capital, and agreed that the company would be used for production and operation related to its main business on the premise of ensuring the capital demand for the construction of investment projects with raised funds and the normal progress of investment projects with raised funds, Temporarily replenish the working capital with some idle raised funds, with a total amount of no more than 80 million yuan (including 80 million yuan). The service life of the replenished working capital shall not exceed December from the date of deliberation and approval by the board of directors, and will be returned to the special account for raised funds at maturity. The company used 69 million yuan of temporarily idle raised funds to supplement working capital within the specified period. On April 21, 2020, the company has returned all the above 69 million yuan to the special account for raised funds in advance. For details, see the announcement on early return of raised funds (Announcement No.: 2020017) disclosed on cninfo.com on April 21, 2020
On October 28, 2019, the company held the eighth meeting of the second board of directors and the seventh meeting of the second board of supervisors, which deliberated and adopted the proposal on continuing to use some idle raised funds for cash management and the proposal on continuing to use some idle self owned funds for cash management, The company plans to use a total of no more than 200 million yuan of idle raised funds and no more than 50 million yuan of its own funds for cash management. The amount of cash management can be recycled and rolled within 12 months from the date of deliberation and approval by the board of directors. When the cash management of idle raised funds expires, it will be returned to the special account for raised funds in time.
At the 11th meeting of the second board of directors and the 9th meeting of the second board of supervisors held on April 24, 2020, the company deliberated and adopted the proposal on using some idle raised funds to temporarily supplement working capital, and agreed that the company would be used for production and operation related to its main business on the premise of ensuring the capital demand for the construction of investment projects with raised funds and the normal progress of investment projects with raised funds, Temporarily replenish the working capital with some idle raised funds, with a total amount of no more than 90 million yuan (including 90 million yuan). The service life of the replenished working capital shall not exceed December from the date of deliberation and approval by the board of directors, and will be returned to the special account for raised funds at maturity. For details, see the announcement on temporarily replenishing working capital with some idle raised funds (Announcement No.: 2020033) disclosed on cninfo.com on April 28, 2020. As of April 22, 2021, the company has returned all the above 90 million yuan to the special account for raised funds in advance. For details, see the announcement on early return of raised funds (Announcement No.: 2021021) disclosed on cninfo.com on April 22, 2021. The company held the 14th meeting of the second board of directors and the 11th meeting of the second board of supervisors on October 28, 2020, The proposal on continuing to use some idle raised funds for cash management and the proposal on continuing to use some idle self owned funds for cash management were deliberated and passed respectively. The company plans to use a total of no more than 200 million yuan of idle raised funds and no more than 50 million yuan of self owned funds for cash management. The amount of cash management can be recycled and used within 12 months from the date of deliberation and approval by the 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.
At the 19th meeting of the second board of directors and the 16th meeting of the second board of supervisors held on April 23, 2021, the company deliberated and adopted the proposal on using some idle raised funds to temporarily supplement working capital, and agreed that the company would be used for production and operation related to its main business on the premise of ensuring the capital demand for the construction of the investment projects with raised funds and the normal progress of the investment projects with raised funds, Temporarily replenish the working capital with some idle raised funds, with a total amount of no more than 90 million yuan (including 90 million yuan). The service life of the replenished working capital shall not exceed December from the date of deliberation and approval by the board of directors, and will be returned to the special account for raised funds at maturity. For details, see the announcement on temporarily replenishing working capital with some idle raised funds (Announcement No.: 2021034) disclosed on cninfo.com on April 27, 2021. The company used 71 million yuan of temporarily idle raised funds to supplement working capital within the specified period. As of April 22, 2022, the company has returned all the above 71 million yuan to the special account for raised funds. For details, please refer to the announcement on returning the raised funds temporarily used to supplement working capital (Announcement No.: 2022019) disclosed on cninfo.com on April 22, 2022
As of March 31, 2022, the balance of the company’s raised funds was 191439 million yuan. After deducting the idle raised funds to temporarily supplement the working capital of 61 million yuan, the balance of the raised funds account was 130439 million yuan, of which the balance of structural deposits purchased with idle raised funds was 110 million yuan.
According to the use plan of the company’s raised funds and the construction progress of investment projects, it is expected that some funds will remain idle within 12 months.
3、 Temporary replenishment of working capital with idle raised funds this time
In order to fully ensure the normal operation of the company’s production and improve the use efficiency of idle raised funds, on the premise of ensuring the capital demand for the construction of raised funds investment projects and the normal progress of raised funds investment projects, according to the provisions of the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds of listed companies (revised in 2022) and the management system of raised funds, The company plans to use some idle raised funds to temporarily supplement working capital, with a total amount of no more than 90 million yuan (including 90 million yuan), and the service life of no more than 12 months from the date of deliberation and approval by the board of directors.
The company uses part of the temporarily idle raised funds to supplement working capital to ensure that the following conditions are met: 1. The purpose of the raised funds will not be changed or changed in a disguised form;
2. It will not affect the normal progress of the investment project with raised funds;
3. It is limited to the production and operation related to the main business, and shall not be directly or indirectly arranged for the placement and purchase of new shares, or for the transaction of stocks and their derivatives, convertible bonds, etc;
4. Before the due date of this replenishment of working capital, the fund shall be returned to the special account for raised funds.
4、 The rationality and necessity of temporarily replenishing working capital with some idle raised funds this time
After the listing of the company, the regional market development is rapid, the production and operation scale is expanded, and the demand for working capital continues to increase. The use of idle raised funds to temporarily supplement working capital is conducive to meeting the company’s working capital needs, improving the use efficiency of raised funds, reducing the company’s financial expenses and improving the company’s operating efficiency, which is in line with the company’s development needs and the interests of all shareholders.
5、 Verification opinions
Upon verification, Shenzhen Increase Technology Co.Ltd(300713) in view of daily life
