Summary of Key Points Core Viewpoint The report outlines the fundraising activities and the actual usage of funds by Shandong Xinchao Energy Co., Ltd. as of December 31, 2024, highlighting the total amount raised, the allocation of funds, and the management practices in place to ensure compliance with regulatory requirements. Group 1: Fundraising Overview - The company raised a total of RMB 2,099,999,974.86 through a non-public offering of 206,084,394 shares at RMB 10.19 per share, with a net amount of RMB 2,044,204,730.26 after deducting issuance costs [1][2] - As of December 31, 2024, the total amount used from the raised funds was RMB 1,553,953,785.42, with specific allocations for intermediary fees and operational funds for oilfield assets [2][3] Group 2: Fund Management Practices - The company has established a management system for fundraising that includes special account storage and strict approval procedures to ensure funds are used for their intended purposes [3][4] - Independent directors have the authority to inspect the usage of funds and can hire accounting firms for special audits [3] Group 3: Fund Usage Details - The company has utilized RMB 60 million for intermediary fees in 2016 and has allocated funds for operational costs related to Howard and Borden oilfield assets in subsequent years [2][5] - As of the end of 2024, the remaining balance of unused funds was RMB 655,775,150.75, with RMB 5,775,150.75 in special accounts [10][11] Group 4: Changes in Fund Usage - The company has made adjustments to the intended use of funds, reallocating amounts to enhance efficiency and returns, particularly for the Howard and Borden oilfield assets [7][8] - The company has also temporarily supplemented working capital with raised funds, which has not yet been fully returned to the designated accounts [8][9] Group 5: Audit and Compliance - The report has been audited by Lixin Accounting Firm, which confirmed that the fundraising and usage report complies with relevant regulations [6][9] - The independent financial advisor, Caitong Securities, noted that the company failed to return temporarily supplemented funds as required, and will continue to monitor the situation [9]