Shenda Shares (600626): Special Account For Raising Funds

Shanghai Shenda Limited by Share Ltd announcement on special account for raising funds

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

1. The basic situation of company's fund-raising funds

On August 20, 2018, the China Securities Regulatory Commission issued the approval of the approval of the stock of the Shanghai Shanghai Shenda Limited by Share Ltd's non-public Development Bank (SFC license No. 2018] No. 1339), and agreed that the Shanghai Shanghai Delta Limited by Share Ltd (hereinafter referred to as "Shenda group", "company" and "our company") had no more than 142048500 shares of RMB common stock (A shares). CITIC Securities Limited by Share Ltd underwritten the issue price of 5.06 yuan per share. As of December 13, 2018, the total amount of funds raised by the company was RMB 718765410 yuan, which deducted 19709657.86 yuan (including tax) of the underwriting and sponsorship and other intermediary agencies' fees. The net amount of the net proceeds raised from the non-public offering of A shares is RMB 699055752.14 yuan. The above funds have been verified by Lixin Accounting firm (special general partnership) and a letter of capital verification report [2018] ZA15973 is issued.

Two. Collection and management of raised funds

In order to standardize the management and use of funds raised by the company, improve the efficiency and efficiency of capital use and protect the interests of investors, the company has formulated the regulations for the management of the funds raised by Limited by Share Ltd in Shanghai, according to the laws and regulations of the People's Republic of China company law, the People's Republic of China securities law and the Shanghai Stock Exchange listed companies' management measures for raising funds (revised in 2013), combined with the actual situation of the company.

During the non-public offering, the company set up a special storage account for raising funds in the Shanghai branch of the Export Import Bank of China. In 2018, there was no significant difference between the company and the CITIC Securities Limited by Share Ltd, the Shanghai branch of the Export Import Bank of China and the sponsor of CITIC Securities Limited by Share Ltd, and the three party regulatory agreement for raising funds and the three party regulatory agreement for raising funds. The company is strictly in accordance with the provisions of the three party regulatory agreement in its daily management, and has performed well since the signing of the agreement.

The opening of the special account for raising funds is as follows:

Three, the use of fund-raising funds

In 2017, the company's non-public offering of stock raising capital investment projects have been delivered. The use of the company's funds is in line with the relevant regulations of the regulatory requirements No. second of the listed companies' supervision and management of listed companies, the guidelines for the standardized operation of the listed companies on the main board, and the regulations governing the collection of funds by the company. There is no violation of the regulations governing the use and management of the funds raised.

Four. The account of the special account for raising funds.

After deliberation at the eighteenth meeting of the ninth board of directors of the company, it passed the motion on the use of raised funds to replace the funds raised in advance from the raise investment projects, and agreed to raise funds to replace the self raised funds that had been invested in the investment projects in advance. In view of the fact that this replacement has been invested in the self financing project, the company's special account balance will be 0 yuan and will no longer be used. As of the date of this announcement, the company has completed the process of closing the account. After the cancellation of the capital account, the three party supervision agreement on the collection of funds signed by the company and the sponsor and bank shall be terminated accordingly.

Notice hereby.

Shanghai Shenda Limited by Share Ltd board of directors

June 25, 2019