Huatai United Securities Co., Ltd. Regarding the Audit Report on the Storage and Use of Raised Funds by Guangdong Zensun Pharmaceutical Co., Ltd. in 2025
Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities" or "Sponsor") as the sponsor of Guangdong Zensun Pharmaceutical Co., Ltd. (hereinafter referred to as "Zensun Pharmaceutical" or "the Company") for its targeted issuance of shares, in accordance with the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing," the "Supervision Rules for the Management of Raised Funds of Listed Companies," the "Stock Listing Rules of the Shenzhen Stock Exchange," and the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other relevant regulations, has audited the storage and use of Zensun Pharmaceutical's 2025 raised funds. The specific situation is as follows:
I. Basic Situation of Raised Funds
(I) Amount of Raised Funds and Time of Arrival
With the approval of the China Securities Regulatory Commission's "Approval on Guangdong Zensun Pharmaceutical Co., Ltd.'s Targeted Issuance of Shares" (Regulatory Permit (2023) No. 891), Guangdong Zensun Pharmaceutical Co., Ltd. (hereinafter referred to as "the Company") issued 38,969,401 ordinary shares (A shares) to 12 specific targets at an issuance price of RMB 15.36 per share. The total amount of raised funds was RMB 598,569,999.36. After deducting issuance expenses of RMB 8,373,028.97 (excluding tax), the net amount of raised funds was RMB 590,196,970.39. The raised funds from this issuance were all remitted to the Company's designated deposit account on June 15, 2023, and were verified by Huaxing Certified Public Accountants (Special General Partnership). A "Capital Verification Report" (Zhonghui Zi (2023) No. 07869) was issued on June 16, 2023.
(II) Amount Used in Previous Years, Amount Used in This Reporting Period, and Current Balance
As of December 31, 2025, the Company had cumulatively used RMB 446,645,078.06 of raised funds. Of this amount, RMB 330,003,391.50 was invested in previous years, and RMB 116,641,686.56 was invested in raised fund projects during this reporting period.
As of December 31, 2025, the situation of raised fund usage and balance is as follows:
| Project | Amount (RMB) |
|---|---|
| Net amount of raised funds | 590,196,970.39 |
| Less: Amount invested in raised fund projects in previous years (including replacement) | 330,003,391.50 |
| Amount invested in raised fund projects in this reporting period | 116,641,686.56 |
| Amount for cash management of idle raised funds | 0.00 |
| Portion of surplus raised funds from completed raised fund projects permanently supplemented to working capital | 24,315,964.04 |
| Plus: Income from cash management of raised funds | 8,231,467.87 |
| Net interest income from raised funds after deducting fees | 6,119,420.30 |
| Balance in the special account for raised funds as of December 31, 2025 | 133,586,816.46 |
As of December 31, 2025, the balance in the Company's special account for raised funds was RMB 133,586,816.46.
II. Storage and Management of Raised Funds
(I) Management of Raised Funds
To standardize the management, storage, and use of the Company's raised funds, improve the efficiency of raised fund utilization, and protect the legitimate rights and interests of investors, the Company has formulated the "Management Measures for Raised Funds" in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Administrative Measures for the Issuance of Securities by Listed Companies," the "Supervision Rules for the Management of Raised Funds of Listed Companies," the "Stock Listing Rules of the Shenzhen Stock Exchange," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other laws, regulations, and the "Articles of Association," combined with the Company's actual situation. The Company implements special storage and management for raised funds in accordance with the management measures and operational needs.