First Capital Securities Sponsors Kangnong Seeds IPO Project Receives C-Grade Quality Rating, Actual Fundraising Amount Reduced by Over 40%

(I) Basic Company Information Full Name: Hubei Kangnong Seeds Co., Ltd. Abbreviated Name: Kangnong Seeds Code: 837403.BJ IPO Application Date: April 28, 2023 Listing Date: January 18, 2024 Trading Board: Beijing Stock Exchange Industry: Agriculture IPO Sponsor: First Capital Securities Co.,Ltd. Sponsor Representatives: Li Xinggang, Liu Yi IPO Underwriter: First Capital Securities Co.,Ltd. IPO Legal Counsel: Beijing Jincheng Tongda Law Firm IPO Auditor: Yongtuo Certified Public Accountants (Special General Partnership)

(II) Performance Evaluation (1) Information Disclosure: Required to clarify whether disclosures regarding environmental compliance were accurate and complete; required to supplement analysis of 2021 gross profit margin; required to supplement disclosure of specific impacts of national seed variety guidance policies on market space for various varieties, future market demand and prospects for related varieties; required to further explain transaction amounts and proportions, transaction content, and whether related transactions were authentic with sufficient basis.

(2) Regulatory Penalties: On June 6, 2022, received verbal warning from National Equities Exchange and Quotations for financial data misstatement; on December 6, 2023, received verbal warning from National Equities Exchange and Quotations for information disclosure violations.

(3) Media Supervision: No points deducted

(4) Listing Cycle: No points deducted The average time from application to listing for A-share companies listed in 2024 was 629.45 days. Kangnong Seeds' listing cycle was 265 days, below the overall average.

(5) Multiple Applications: Not applicable, no points deducted.

(6) Issuance Costs and Fee Rate Kangnong Seeds' underwriting and sponsorship fees were 16.9501 million yuan, with an underwriting and sponsorship commission rate of 10.00%, higher than the overall average of 7.71%.

(7) First Trading Day Performance Stock price rose 60.45% compared to the issue price on the first trading day.

(8) Three-Month Performance After Listing Stock price rose 16.61% compared to the issue price three months after listing.

(9) Issue Price-to-Earnings Ratio Kangnong Seeds' issue price-to-earnings ratio was 16.95 times, compared to the industry average of 40.97 times, representing 41.37% of the industry average.

(10) Actual Fundraising Ratio Expected fundraising of 304 million yuan, actual fundraising of 170 million yuan, representing a 44.33% reduction in actual fundraising amount.

(11) Short-term Performance After Listing In 2024, the company's operating revenue increased 16.80% year-over-year compared to the previous year, net profit attributable to shareholders increased 55.21% year-over-year, and non-recurring net profit attributable to shareholders increased 27.41% year-over-year.

(12) Purchase Abandonment Rate and Underwriting Rate Not applicable.

(III) Total Score Kangnong Seeds' IPO project received a total score of 76.5 points, classified as Grade C. Negative factors affecting Kangnong Seeds' rating include: information disclosure quality needs improvement, the company was penalized multiple times during the reporting period for information disclosure violations, high issuance fee rate, and actual fundraising amount reduced by over 30%. This comprehensively indicates that while the company has good short-term profitability, information disclosure quality needs improvement, and investors are advised to pay attention to the authenticity behind its performance.