Assurance report on the use of the funds raised in the previous round

Longyan Excellence New Energy Co., Ltd

Rong Cheng Zhuan Zi [2024] No. 361Z0634

Rongcheng Certified Public Accountants (Special General Partnership)

Beijing, China

Table of Contents

Serial Number Content Page Number

1 Assurance report on the use of the funds raised in the previous round

2 Special report on the use of funds raised in the previous round 1-9

Rongcheng Certified Public Accountants (Special General Partnership)

Head Office: No. Fuchengmenwai Street, Xicheng District, Beijing

Foreign Economic and Trade Building Floor

Assurance report on the use of the funds raised in the previous round

Rong Cheng Zhuan Zi [2024] No. 361Z0634

All shareholders of Longyan Excellence New Energy Co., Ltd.:

We have reviewed the attached directors of Longyan Excellence New Energy Co., Ltd. (hereinafter referred to as Excellence New Energy Company).

The Special Report on the Use of Funds Raised in the Previous Period as of October 31, 2024 prepared by the Board of Directors.

1. Limitation of the purpose of use of the report

This assurance report is only for the purpose of applying for the issuance of securities to a specific target by means of an expedited procedure

use, not for any other purpose. We agree to apply for this assurance report as an excellent new energy company

The documents necessary for the issuance of securities to specific targets shall be submitted together with other application materials.

2. Responsibilities of the Board of Directors

In accordance with the Guidelines for the Application of Regulatory Rules - Issuance No. 7 issued by the China Securities Regulatory Commission

It is the responsibility of the board of directors of Excellence New Energy Company to prepare the special report on the use of the funds raised in the previous session

This includes guaranteeing that its content is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.

3. Responsibilities of Certified Public Accountants

It is our responsibility to independently present the forensic conclusions of the above-mentioned report prepared by the Board of Directors of Excellence New Energy.

Fourth, the work overview

We audit in accordance with the Chinese Certified Public Accountants Standard for Other Assurance Engagements No. 3101 - Historical Financial Information

or assurance engagements other than review". The Code requires us to plan and implement assurance

to obtain reasonable assurance as to whether the information of the subject of the verification is free of material misstatement. In the assurance process, we:

We have implemented procedures that we deem necessary, including checking accounting records. We believe that our assurance work is the only way to do it

The table provides a sound basis.

5. Verification conclusions

We believe that the attached "Special Report on the Use of the Previous Raised Funds" of the Excellence New Energy Company is important in all aspects

In general, it has been prepared in accordance with the Guidelines for the Application of Regulatory Rules - Issuance No. 7, which fairly reflects the excellence of the new energy company

The use of the funds raised in the previous round as of October 31, 2024.

(This page is the signed and stamped page of the report of Longyan Excellence New Energy Co., Ltd. Rongcheng Zhuangzi [2024] No. 361Z0634.) ）

Rongcheng Certified Public Accountants Chinese Certified Public Accountants:

(Special General Partnership) Huang Yinqiang

Chinese Certified Public Accountants:

Guo Qingyi

Beijing, China Chinese Certified Public Accountants:

Ye Min

December 5, 2024

Special report on the use of the funds raised in the previous round

Special report on the use of the funds raised in the previous round

1. The previous fund-raising

(1) The amount of funds raised in the previous round and the time when the funds were in place

With the approval of the China Securities Regulatory Commission Zheng Jian Xu Xu [2019] No. 1921, the company was allowed to open to the public

Issued 30,000,000 RMB ordinary shares (A shares) at an issue price of RMB42.93 per share

The total amount of funds is 1,287,900,000.00 yuan, after deducting underwriting and sponsorship fees, lawyer fees, audit and capital verification fees, information disclosure fees for this offering, issuance and listing fees and other expenses (excluding VAT) of 87,003,779.25 yuan, the company's net amount of funds raised this time is 1,200,896,220.75 yuan. Grant Thornton Certified Public Accountants (Special General Partnership)

The above-mentioned raised funds were verified, and the "Capital Verification Report" was issued on November 15, 2019

Tong Yan Zi (2019) No. 350ZA0044).

(2) The deposit of the funds raised in the previous round

In accordance with the relevant laws and regulations and the provisions of regulatory authorities, and following the principles of standardization, safety, efficiency and transparency, the company has formulated the "Measures for the Management of Raised Funds", which has made clear provisions on the storage, approval, use, management and supervision of raised funds, so as to ensure the standardized use of raised funds in the system.

On November 19, 2019, the Company and Agricultural Bank of China Co., Ltd. Longyan Longjin Branch (hereinafter referred to as the "Company") announced that the Company and the Agricultural Bank of China Co., Ltd. Longyan Longjin Branch (hereinafter referred to as the "Company").

"Agricultural Bank of China Longjin Branch"), Industrial Bank Co., Ltd. Longyan Silla Branch (hereinafter referred to as "Industrial Silla Branch") and Yingda Securities Co., Ltd. (hereinafter referred to as "Yingda Securities") signed the Tripartite Supervision Agreement on Raising Funds to open a special account (account number: 13700101046666664, 13700101048888886) in Agricultural Bank of China Longjin Branch. Opened a special account for raising funds (account number: 171010100160188888) in the Silla branch of the Industrial Corporation. There are no material differences between the tripartite regulatory agreement and the model tripartite regulatory agreement of the stock exchange, and there is no problem in the performance of the tripartite regulatory agreement.

As of October 31, 2024, the company's previous raised funds (unit: RMB) are as follows:

Bank Name Bank Account Number Initial Deposit Amount Balance as of Deadline

Agricultural Bank of China Co., Ltd. 13700101046666664 561,000,000.00 16,942,092.93

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 50,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 50,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 50,000,000.00

Silongyan Longjin Branch

Special report on the use of the funds raised in the previous round

Bank Name Bank Account Number Initial Deposit Amount Balance as of Deadline

Agricultural Bank of China Co., Ltd. 13700101048888886 175,000,000.00 51,990.12

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. 13700101048686868 - 289,404.22

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 30,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 30,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 20,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 30,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 20,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 30,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 30,000,000.00

Silongyan Longjin Branch

Agricultural Bank of China Co., Ltd. Large Certificate of Deposit - 10,000,000.00

Silongyan Longjin Branch

Industrial Bank Co., Ltd. 171010100160188888 478,528,301.89 33,523,590.50

Iam Silla Branch

Industrial Bank Co., Ltd. Long Large Certificate of Deposit - 20,000,000.00

Iam Silla Branch

Industrial Bank Co., Ltd. Long Large Certificate of Deposit - 11,000,000.00

Iam Silla Branch

Industrial Bank Co., Ltd. Long Large Certificate of Deposit - 11,000,000.00

Iam Silla Branch

Total - 1,214,528,301.89 442,807,077.77

2. Description of the actual use of the funds raised in the previous round

(1) Comparison table of the use of funds raised in the previous round

The company's commitment to invest in projects include: an annual output of 100,000 tons of biodiesel (non-grain) and an annual output of 50,000 tons of natural fat

Alcohol projects, technology research and development center construction projects, replenishment of working capital, and projects to which over-raised funds are invested include: repayment of banks

loans, a new biodiesel project with an annual output of 100,000 tons, and a hydrocarbon-based biodiesel production line with an annual output of 100,000 tons, by 2024

As of October 31, the company has used a total of 868.6322 million yuan of raised funds for investment projects (including pre-replacement pre-replacement

The actual use of the first investment part is detailed in Annex 1 "Comparison Table of the Use of the Previous Raised Funds".

(2) A description of the changes in the actual investment projects of the previous raised funds

As of October 31, 2024, the company has not changed the actual investment projects of the previous raised funds.

Special report on the use of the funds raised in the previous round

(3) The content and reasons for the difference between the actual total investment and the commitment of the previous fund-raising project

There is a difference between the actual total investment of the R&D center construction project and the over-raised-new biodiesel project with an annual output of 100,000 tons and the commitment, mainly due to the interest income and savings generated by capital savings in the construction process, and the difference in other investment projects is due to the fact that they are still under construction.

(4) A description of the external transfer or replacement of the investment project of the previous raised funds

1. The external transfer of the investment project of the previous raised funds

As of October 31, 2024, the Company did not have any external transfer of the actual investment projects of the previous raised funds

Condition.

2. Replacement of the previous raised funds

On December 9, 2019, the company held the 12th meeting of the 3rd Board of Directors and the 11th meeting of the 3rd Board of Supervisors

At the meeting, the "Proposal on Using Raised Funds to Replace the Self-Raised Funds Invested in Advance in Fund-raising Projects" was deliberated and approved, and it was agreed that the company would use the raised funds to replace the self-raised funds that had been pre-invested in the fund-raising projects of 40,846,714.85 yuan, and use the raised funds to replace the self-raised funds that had paid the issuance costs of 6,155,792.43 yuan, and use a total of 47,002,507.28 yuan of raised funds to replace the above-mentioned self-raised funds in advance. This matter has been verified by Rongcheng Certified Public Accountants (Special General Partnership), and an assurance report on the investment project and payment of issuance costs with self-raised funds in advance was issued [2019] No. 8307.

(5) A description of the idle funds raised

The company held the 12th meeting of the 3rd board of directors and the 11th meeting of the 3rd board of supervisors on December 9, 2019

At the meeting, the "Proposal on the Use of Part of the Temporarily Idle Raised Funds for Cash Management" was deliberated and approved, and it was agreed that under the condition of ensuring that the implementation of the investment projects of the raised funds and the safety of the raised funds were not affected, the part of the temporarily idle raised funds with a quota of no more than RMB 980 million was used for cash management to purchase investment products with high security, good liquidity and guaranteed principal (including but not limited to structured deposits, time deposits, large-amount certificates of deposit, etc.). Funds within the above amount can be used on a rolling basis for a period of 12 months from the date of approval by the Board of Directors of the Company. The company's independent directors, board of supervisors, and sponsor institutions have respectively expressed their consent.

On November 29, 2020, the company held the first meeting of the fourth board of directors and the first meeting of the fourth board of supervisors

The "Proposal on the Use of Part of the Idle Raised Funds for Cash Management" was deliberated and approved, and it was agreed that the proposed use amount would not exceed RMB 950 million under the condition of ensuring that the implementation of the investment projects of the raised funds and the safety of the raised funds would not be affected

Special report on the use of the funds raised in the previous round

Part of the idle raised funds is used for cash management to purchase investment products with high security, good liquidity and guaranteed principal (including but not limited to structured deposits, time deposits, large-amount certificates of deposit, etc.). Funds within the above amount can be used on a rolling basis for a period of 12 months from the date of approval by the Board of Directors of the Company. The company's independent directors, board of supervisors, and sponsor institutions have respectively expressed their consent.

On October 26, 2021, the Company held the sixth meeting of the fourth session of the board of directors and the sixth meeting of the fourth session of the board of supervisors

It was agreed that under the condition of ensuring that the implementation of the investment project of the raised funds and the safety of the raised funds are not affected, the proposed use of part of the temporarily idle raised funds with a quota of no more than RMB 750 million for cash management is used to purchase investment products with high security, good liquidity and guaranteed principal (including but not limited to structured deposits, fixed deposits, large-amount certificates of deposit, etc.). Funds within the above amount can be used on a rolling basis for a period of 12 months from the date of approval by the Board of Directors of the Company. The company's independent directors, board of supervisors, and sponsor institutions have respectively expressed their consent.

The company held the 13th meeting of the 4th session of the board of directors and the 11th meeting of the 4th board of supervisors on October 21, 2022

At the meeting, the "Proposal on the Use of Part of the Temporarily Idle Raised Funds for Cash Management" was deliberated and approved, and it was agreed that under the condition of ensuring that the implementation of the investment projects of the raised funds and the safety of the raised funds were not affected, part of the temporarily idle raised funds with a limit of no more than RMB 650 million would be used for cash management for the purchase of investment products with high security, good liquidity and guaranteed principal (including but not limited to structured deposits, time deposits, large-amount certificates of deposit, etc.). Funds within the above amount can be used on a rolling basis for a period of 12 months from the date of approval by the Board of Directors of the Company. The company's independent directors, board of supervisors, and sponsor institutions have respectively expressed their consent.

The company held the 19th meeting of the 4th board of directors and the 15th meeting of the 4th board of supervisors on October 27, 2023

At the meeting, the "Proposal on the Use of Part of the Temporarily Idle Raised Funds for Cash Management" was deliberated and approved, and it was agreed that under the condition of ensuring that the implementation of the investment project of the raised funds and the safety of the raised funds were not affected, part of the temporarily idle raised funds with a limit of no more than RMB 55,000.00 was used for cash management for the purchase of investment products with high security, good liquidity and guaranteed principal (including but not limited to structured deposits, time deposits, large-amount certificates of deposit, etc.). Since 2023

Funds within the above limits can be used on a rolling basis for 12 months from November 30. Independent director and supervisor of the company

The committee and the sponsor have respectively issued their consent.

The Company held the sixth meeting of the fifth board of directors and the fourth meeting of the fifth board of supervisors on October 28, 2024

It was agreed that under the condition of ensuring that the implementation of the investment project of the raised funds and the safety of the raised funds are not affected, the part of the temporarily idle raised funds with a limit of no more than RMB 45,000.00 will be used for cash management, which will be used for the purchase of high-security, good liquidity,

Special report on the use of the funds raised in the previous round

Investment products with guaranteed principal (including but not limited to structured deposits, time deposits, certificates of deposit, etc.). This time

The Golden Management Resolution is valid for 12 months from November 30, 2024. within the above quota and term range

, funds can be used on a rolling basis. The company's independent directors, board of supervisors, and sponsor institutions have respectively expressed their consent.

The Company held the second meeting of the fifth session of the board of directors and the second meeting of the fifth session of the board of supervisors on April 18, 2024

Agreed to close the "Technology R&D Center Construction Project" and "New Biodiesel Production Line Project with an Annual Output of 100,000 Tons" to be completed, and the surplus raised funds will be used to permanently replenish working capital, the above two projects are expected to raise 13.282 million yuan (excluding interest income and net financial income of 3.6 million), accounting for the proportion of the total amount of funds raised in the previous meeting 1.11%。 The company's independent directors, board of supervisors, and sponsor institutions have respectively expressed their consent.

As of October 31, 2024, the amount that has not been recovered by the Company for cash management using idle proceeds is:

39,200.00 yuan, the details are as follows:

Amount (10,000 expected years

Contracted Bank Product Name Product Type RMB) Value Date Maturity Income

Rate (%)

Industrial Bank Co., Ltd. Large Certificate of Deposit Fixed interest rate 2,000.00 2022/4/20 2025/1/14 3.55

Silongam Silla Branch

Industrial Bank Co., Ltd. Large Certificate of Deposit Fixed Interest Rate 1,100.00 2022/12/23 2025/6/22 3.45

Silongam Silla Branch

Industrial Bank Co., Ltd. Large Certificate of Deposit Fixed Interest Rate 1,100.00 2022/12/23 2025/6/22 3.45

Silongam Silla Branch

Agricultural Bank of China shares have Large Certificate of Deposit Fixed Interest Rate 1,000.00 2023/1/10 2026/1/10 3.10

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have Large Certificate of Deposit Fixed Interest Rate 3,000.00 2023/10/24 2026/10/24 2.65

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have large certificates of deposit fixed interest rate 2,000.00 2023/11/6 2026/1/16 3.10

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have large certificates of deposit fixed interest rate 3,000.00 2023/11/6 2026/1/30 3.10

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have Large Certificate of Deposit Fixed Interest Rate 2,000.00 2023/11/6 2025/3/29 3.35

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have Large Certificate of Deposit Fixed Interest Rate 3,000.00 2023/11/6 2025/3/29 3.35

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have Large Certificate of Deposit Fixed Interest Rate 3,000.00 2023/12/5 2025/3/23 3.35

Limited to Longyan Longjin Branch

Agricultural Bank of China shares have a three-year large fixed interest rate of 5,000.00 12/8/2023 12/8/2026 2.65

Limited to the company's Longyan Longjin sub-branch deposit certificate

Agricultural Bank of China shares have a three-year large fixed interest rate of 5,000.00 12/8/2023 12/8/2026 2.65

Limited to the company's Longyan Longjin sub-branch deposit certificate

Agricultural Bank of China shares have a three-year large fixed interest rate of 5,000.00 2023/12/8 2026/2/3 3.10

Limited to the company's Longyan Longjin sub-branch deposit certificate

Special report on the use of the funds raised in the previous round

Amount (10,000 expected years

Contracted Bank Product Name Product Type RMB) Value Date Maturity Income

Rate (%)

Agricultural Bank of China shares have a three-year large fixed interest rate of 3,000.00 12/18/2023 2/3/2026 3.10

Limited to the company's Longyan Longjin sub-branch deposit certificate

Total – 39,200.00 – –

3. Explanation of the benefits realized by the investment project of the previous raised funds

(1) Comparison table of the benefits realized by the investment projects of the previous raised funds

Please refer to Annex 2 of this report for a comparison table of the benefits realized by the investment projects of the previous raised funds. The calculation caliber and calculation method of the realized benefits in the comparison table are consistent with the calculation caliber and calculation method of the promised benefits.

(2) A statement of the fact that the benefits of the previous fund-raising investment project cannot be separately calculated

(1) The "Technology R&D Center Construction Project" is mainly to further enhance and optimize the biodiesel and biodiesel deep processing technology, further research and development of high value-added bio-based green chemical products with biodiesel as raw materials, increase the company's market competitiveness and development stamina, and provide technical support and power for the company's sustainable and healthy development.

(2) The "Supplementary Liquidity Project" is mainly to meet the demand for working capital for business development and improve profitability, and the benefits of this project are reflected in the overall economic benefits of the Company, and the benefits cannot be accounted for separately.

(3) The "repayment of bank loans" is mainly used to repay bank loans, and the benefits cannot be calculated separately.

(3) A description of the cumulative realized income of the raised funds investment project is lower than the promised cumulative return

The comparison table between the realized benefits and the promised returns of the previous raised funds investment projects is detailed in Annex 2 of this report.

4. Explanation of the operation of assets in the previous issuance involving the subscription of shares with assets

The company's previous fundraising did not involve the subscription of shares with assets.

5. Explanation of the comparison between the actual use of the funds raised in the previous round and the publicly disclosed information

The actual use of the funds raised in the previous round is consistent with the relevant content disclosed in the company's periodic reports and other information disclosure documents.