Suzhou Hengmingda Electronic Technology Co.Ltd(002947) : Sinolink Securities Co.Ltd(600109) verification opinions on Suzhou Hengmingda Electronic Technology Co.Ltd(002947) using idle raised funds for cash management

Sinolink Securities Co.Ltd(600109) about

Suzhou Hengmingda Electronic Technology Co.Ltd(002947) use idle raised funds

Verification opinions on cash management

Sinolink Securities Co.Ltd(600109) (hereinafter referred to as ” Sinolink Securities Co.Ltd(600109) ” or “recommendation institution”) as a recommendation institution for initial public offering, listing and non-public offering of Suzhou Hengmingda Electronic Technology Co.Ltd(002947) (hereinafter referred to as ” Suzhou Hengmingda Electronic Technology Co.Ltd(002947) ” or “company”), in accordance with the administrative measures for securities issuance and listing recommendation business and the stock listing rules of Shenzhen Stock Exchange According to the requirements of relevant laws and regulations, such as self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board, regulatory guidelines for listed companies No. 2 – regulatory requirements for the management and use of raised funds of listed companies, the cash management of Suzhou Hengmingda Electronic Technology Co.Ltd(002947) using idle raised funds has been verified. The verification results are as follows:

1、 Basic information of raised funds

(I) funds raised from initial public offering

Approved by the reply on approving Suzhou Hengmingda Electronic Technology Co.Ltd(002947) initial public offering of shares (zjxk [2018] No. 2061) of China Securities Regulatory Commission, Suzhou Hengmingda Electronic Technology Co.Ltd(002947) initial public offering of 30378003 RMB common shares (A shares) at an issue price of 18.72 yuan per share, with a total raised capital of 568676216.16 yuan. After deducting the issuance expenses, The net amount of actually raised funds is 526271100.00 yuan. Daxin Certified Public Accountants (special general partnership) has verified the capital availability of the company’s initial public offering on January 29, 2019 and issued the capital verification report “Daxin Yan Zi [2019] No. 3-00002”. The company has adopted a special account for the raised funds, and all the raised funds have been deposited in the special account for raised funds after they are received. The company has also signed the tripartite supervision agreement for raised funds with the special account bank and the sponsor.

(II) funds raised by non-public offering of shares

The reply on approving Suzhou Hengmingda Electronic Technology Co.Ltd(002947) non-public offering of shares (zjxk [2020] No. 2778) of China Securities Regulatory Commission approved the company’s non-public offering of no more than 37994853 new shares. As of August 16, 2021, the company has issued 17412935 non-public RMB ordinary shares at a price of 20.10 yuan per share, and the total amount of funds raised is 34999993.50 yuan. After deducting the issuance expenses, the net amount of funds actually raised is 34509014.52 yuan. Tianjian Certified Public Accountants (special general partnership) has made non-public development of the company on August 17, 2021

The capital availability of the bank’s shares was verified, and the capital verification report “tianjianyan [2021] No. 452” was issued. The company has adopted a special account for the raised funds, and all the raised funds have been deposited in the special account for raised funds after they are received. The company has also signed the tripartite supervision agreement for raised funds with the special account bank and the sponsor. 2、 Use of raised funds

(I) investment progress of projects raised by IPO

1. According to the resolutions of the company’s fourth extraordinary general meeting in 2017 and the annual general meeting in 2018, the funds raised by the company’s initial public offering of shares, after deducting the issuance expenses, are fully invested in the construction of projects related to its main business. The specific investment projects are as follows:

Unit: 10000 yuan

Project name total investment amount proposed raised capital investment amount

Electronic materials and devices upgrading and industrialization project 54086.00 52627.11

2. On April 1, 2019, the 16th meeting of the first board of directors of the company considered and approved the proposal on changing the implementation location of some raised investment projects and using the raised funds to purchase land use rights, and agreed that the company would sign an agreement with Kunshan Bacheng Town Investment Promotion Service Center to use the raised funds of no more than 15 million Purchase the industrial land of maoxu road section of Bacheng town through bidding, auction and hanging for the construction of “electronic material and device upgrading and industrialization project”. After the company obtained the above land, the implementation location of the raised investment project “electronic material and device upgrading and expansion project” was changed from “No. 1568 shipaitaji Road, Bacheng Town, Kunshan City” to “No. 1568 shipaitaji Road, Bacheng Town, Kunshan City and maoxu road section, Bacheng Town, Kunshan City”.

3. On August 19, 2019, the 18th meeting of the first board of directors of the company considered and approved the proposal on increasing the implementation subject and place of some raised investment projects and capital increase to subsidiaries, and agreed to add the implementation subject and place of some projects of “upgrading and industrialization of electronic materials and devices”.

The company increased the implementation subject of “technical transformation of existing production workshop” and “construction of experimental and testing room” in the “electronic material and device upgrading and industrialization project” from Suzhou Suzhou Hengmingda Electronic Technology Co.Ltd(002947) to Suzhou Suzhou Hengmingda Electronic Technology Co.Ltd(002947) and Huizhou Suzhou Hengmingda Electronic Technology Co.Ltd(002947) Electronic Technology Co., Ltd. (hereinafter referred to as “Huizhou Suzhou Hengmingda Electronic Technology Co.Ltd(002947) ). 30 million yuan of funds raised from “electronic materials and devices upgrading and industrialization project – technical transformation of existing production workshop” and 25 million yuan of electronic materials and devices upgrading and industrialization project – Construction of experimental and testing room were invested in Huizhou Suzhou Hengmingda Electronic Technology Co.Ltd(002947) . The implementation location is increased from “1568 shipaitaji Road, Bacheng Town, Kunshan City” to “1568 shipaitaji Road, Bacheng Town, Kunshan City” and “Yanhe Road section (plant) of Huizhou Huiyang Economic Development Zone”. Huizhou Suzhou Hengmingda Electronic Technology Co.Ltd(002947) has adopted a special account for the raised funds. After the raised funds are received, they have been deposited in the special account for raised funds. The subsidiary has signed the four party supervision agreement for raised funds with the special account bank and the sponsor.

4. On February 20, 2020, the first meeting of the second board of directors and the first meeting of the second board of supervisors considered and approved the proposal on adjusting the implementation progress of some raised capital investment projects, and agreed to carefully adjust the planned progress of raised capital investment projects, that is, the construction period will be adjusted from 24 months to 36 months. The date when the investment project with raised funds reaches the expected usable state is adjusted from January 31, 2021 to January 31, 2022.

5. As of December 31, 2021, the company’s fund-raising project “electronic material and device upgrading and industrialization project” has used the raised funds of 203.2711 million yuan, supplemented the working capital of 50 million yuan, and the balance of the special account for raised funds (including interest) totaled 315.0553 million yuan.

6. On January 21, 2022, the 23rd Meeting of the second board of directors and the 17th meeting of the second board of supervisors deliberated and adopted the proposal on the extension of some investment projects with raised funds, and agreed to Under the condition that the purpose of the raised funds and the scale of the investment project are not changed, the time when the investment project of the raised funds from the initial public offering reaches the expected usable state shall be adjusted, and the date when the investment project of the raised funds reaches the expected usable state shall be adjusted from January 31, 2022 to July 31, 2022.

(II) investment progress of non-public offering of shares to raise funds

On August 3, 2020, the eighth meeting of the second board of directors and the seventh meeting of the second board of supervisors deliberated and adopted the proposal on the company’s non-public development and issuance of A-Shares in 2020, and it was resolved that the total amount of non-public funds raised this time should not exceed 990 million yuan, The raised funds after deducting the issuance expenses will be used for “Kunshan maoxu road electronic materials, devices and structural parts industrialization project (phase II)” and “supplementary working capital”. The proposal was deliberated and approved by the third extraordinary general meeting of shareholders in 2020. Taking into account market conditions, demand for raised funds, underwriting risks and other factors, the total amount of the final raised funds of this issuance is RMB 34999993.50. After deducting the issuance expenses, the net amount of the actual raised funds is RMB 34509214.52, and the investment direction of the raised funds remains unchanged.

As of December 31, 2021, “Kunshan maoxu road electronic materials, devices and structural parts industrialization project (phase II)” has used the raised funds of 6.9399 million yuan, the company has supplemented the working capital of 100 million yuan, and the balance of the special account for raised funds (including interest) totaled 240.2237 million yuan.

(III) previous use of some idle raised funds for cash management

On August 25, 2021, the 17th meeting of the second board of directors deliberated and approved the proposal on using idle raised funds for cash management, and agreed to use idle raised funds with a total amount of no more than RMB 80 million for cash management within 12 months from the date of deliberation and approval by the general meeting of shareholders. On September 10, 2021, the third extraordinary general meeting of shareholders in 2021 held by the company approved the proposal.

As of December 31, 2021, the previous company used idle raised funds to purchase bank financial products in 2021, as follows:

1. Redeemed entrusted financial products

Unit: 10000 yuan

Signatory’s product name subscription amount product type value date maturity date income amount

Win win Zhixin interest rate structure breakeven floating income

China Citic Bank Corporation Limited(601998) 35740 RMB structured 15000 interest type deposit products on July 11, 2020 and January 10, 2021 224.38

Win win Zhixin interest rate structure breakeven floating income

China Citic Bank Corporation Limited(601998) 02300 RMB structured 3500 profit type deposit product on December 14, 2020 and March 13, 2021 22.94

Yuntong wealth regular Principal Guaranteed floating income

88 days of Bank Of Communications Co.Ltd(601328) structured deposit (linked to 5000 interest type on December 22, 2020 and 38.58 hook on March 22, 2021)