Hua Jing: Special report on the deposit and use of raised funds

The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosure, and there are no false records, misleading statements or major omissions.

First, the basic situation of raised funds

(1) The amount of funds actually raised and the funds in place

Approved by the China Securities Regulatory Commission on the approval of Zhengzhou Huajing Diamond Co., Ltd. for the initial public offering of shares and listing on the GEM (CSRC [2010] No. 267), the company publicly issued 38 million shares to the public ( The par value of each par value is RMB 1 yuan. The issue price is 21.32 yuan per share. The total amount of funds raised is 810,160,000.00 yuan, minus the underwriting and sponsorship fees of 55,711,200.00 yuan (the underwriting fees and sponsorship fees total RMB 56,711,200.00 yuan, of which the pre-payment of the sponsorship fee is 1,000,000.00 yuan. The proceeds from the deduction of underwriting fees and sponsorship fees of RMB 55,711,200.00 were RMB 754,448,800.00. The company’s lead underwriter, China Merchants Securities Co., Ltd., remitted to the company’s special fundraising account on March 22, 2010. . After deducting other attorney fees, audit fees and other issuance expenses of RMB 8,427,000.00, the net proceeds from the initial public offering of the company were RMB 745,021,800.00. The above-mentioned funds were in place and verified by Zhongqin Wanxin Certified Public Accountants Co., Ltd., and the capital verification report of Zhongqin Yanzi [2010] No. 03005 was issued. The company has adopted a special account storage system for the raised funds.

(II) The amount and balance of funds raised during the year

From January to June 2013, the amount of funds raised by the Company was RMB 23,846,842.49, and the accumulated investment amount was RMB 716,347,517.56. As of June 30, 2013, the balance of the fundraising account of the Company was RMB 53,411,653.88, of which the balance of demand deposit account was RMB 26,993,093.15, the balance of time deposit was RMB 26,418,560.73, and the balance of unused fund raised was RMB 53,411,653.88. There was no difference. The details of the use of raised funds are as follows:



Note: The difference between the net amount of actual raised funds and the net amount of funds raised in the capital verification report of RMB 745,021,800.00 is RMB 7,438,000.00. The reasons are as follows: 1 In the early stage, the total amount of listing counseling fees, attorney fees, audit fees, etc., paid by the self-owned funds is 2,361,500.00 yuan; 2 according to the accounting [2010 In the 25th article, the company will not be eligible for the advertising, roadshow and other expenses in the process of issuing equity securities, the total amount of 5,076,500.00 yuan into the management fee, and on March 22, 2011, the money will be returned to the fundraising account.

Second, the management of raised funds

(1) Management of raised funds

According to the "Company Law", "Securities Law", "Shenzhen Stock Exchange GEM Stock Listing Rules", "Shenzhen Stock Exchange GEM Listed Companies Standard Operation Guidelines" and other legal requirements, combined with the company's actual situation, the company has formulated Zhengzhou Huajing Diamond Co., Ltd. Management Measures for the Use of Raised Funds, establish special accounts for the raised funds, and strictly perform the examination and approval procedures, supervise the management and use of the raised funds, and guarantee the special funds.
The company (including the wholly-owned subsidiary Zhengzhou Synthetic Diamond and Products Engineering Technology Research Center Co., Ltd., Huajing Precision Manufacturing Co., Ltd., the holding subsidiary Henan Huamao New Material Technology Development Co., Ltd. and the sponsor institution China Merchants Securities Co., Ltd. and Bank of China respectively Zhengzhou High-tech Development Zone Sub-branch, Luoyang Bank Zhengzhou Branch, CITIC Bank Zhengzhou Agricultural Road Sub-branch, and Agricultural Bank of China Co., Ltd. Xin'an County Branch signed the “Tripartite Supervision Agreement on Raised Funds”, which clarified the rights and obligations of all parties. There is no problem with the implementation of the agreement.

(II) Storage of special funds for raised funds

As of June 30, 2013, the company's fundraising account is stored as follows:



Actual use of funds raised in the three years

(1) The use of funds for fund-raising investment projects

From January to June 2013, the actual use of funds raised by the Company is shown in the attached table, “Comparison of the Use of Raised Funds”.

(II) Changes in the implementation location and implementation method of the fund-raising investment project

From January to June 2013, the company did not have any changes in the implementation location and implementation method of the fund-raising investment project.

(III) Advance investment and replacement of investment projects for raised funds

From January to June 2013, the company did not have the self-raised funds to replace the investment projects that had been invested in the funds in advance.

(4) Temporary replenishment of working capital with idle raised funds

From January to June 2013, the company did not temporarily supplement the working capital with idle raised funds.

(5) Use of super-raised funds

From January to June 2013, the actual use of the company's over-raised funds is shown in the attached table, “Comparison of the Use of Raised Funds”.

(6) Use of funds raised from savings

In the first six months of 2013, the fund-raising investment projects have not yet been fully completed, so there is no situation in which funds are raised.

4. Change the use of funds in the raised funds investment project

On February 25, 2011, the 17th meeting of the first board of directors of the company and the company's 2010 annual general meeting of shareholders on March 18, 2011 successively reviewed and approved the project on the change of Zhengzhou Synthetic Diamond and Products Engineering Technology Research Center Expansion Project. The "Proposal" plans to expand the Zhengzhou Synthetic Diamond and Products Engineering Technology Research Center project. The original plan for the construction of real estate construction part of the funds of 6.69 million yuan for the addition of research and development and testing equipment.

As of June 30, 2013, the accumulated use of raised funds was 6,805,958.31 yuan.

Five problems in the use and disclosure of raised funds

The relevant information disclosed by the company does not exist in a timely, true, accurate and complete disclosure.

Zhengzhou Huajing Diamond Co., Ltd. Board of Directors

August 13, 2013

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