To the best of our knowledge, the Board of Directors of the Company and its members confirm that there is no material false or misleading statement or material omission in this announcement and shall be severally and jointly liable for the truthfulness, accuracy and completeness of its content.
I. Basic information of the funds raised from the A share private placement
Approved by the document of China Securities Regulatory Commission (Jian Zheng Xu Ke [2011] No. 1299), Huaxin Cement Co., Ltd. (hereinafter referred to as the “Company”) issued 128,099.9 thousand RMB ordinary shares (A share) with par value of 1 Yuan/share (issuing price was 14.01 Yuan/share) on October 31, 2011. According to the Capital Verification Report on the A share private placement (PricewaterhouseCoopers Zhong Tian Yan Zi (2011) No. 323) issued by PricewaterhouseCoopers Zhong Tian CPAs Co., Ltd., total amount of funds raised from the private placement was 1,794,679,991 Yuan, net amount of the raised funds was 1,742,887,551 Yuan (deducting the underwriting fee and other transaction costs 51,792,440 Yuan).
II. Commitments on injection of the funds raised from the A share private placement
Investment projects of this A-share private placement include: 719.87 million Yuan investment in 15 Waste Heat Power Generation (WHPG) projects, 455.81 million Yuan investment in 25 RMX plants, 159 million Yuan investment in 1 AGG production line and 460 million Yuan in repayment of the Company’s loans. The Company shall invest in the projects through self-financing according to the actual status of the projects progress before receiving the raised funds and then replace it after the raised funds were received.
III. Situation that the Company pre-invested in the projects through self-financing
To ensure that the investment projects of fund raised from private placement can run smoothly, before the raised funds is in place, the Company pre-invested in the above projects through self-financing. According to "Report of Huaxin Cement Co., Ltd. on Investment through Self-financing in Projects of Funds Raised from A-share Private Placement and Authentication Report" (PricewaterhouseCoopers Zhong Tian Te Shen Zi (2011) No. 980) issued by PricewaterhouseCoopers Zhong Tian CPAs Co., Ltd., as of September 30, 2011, details of Huaxin Cement’s pre-investment through self-financing are as follows: