Guangdong Zhongsheng Pharmaceutical Co., Ltd. Special Report on the Status of Raised Funds' Deposit, Management, and Use for 2025
The Company and the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and are free from any false representations, misleading statements, or material omissions.
I. Basic Situation of Raised Funds
(I) Amount of Raised Funds and Time of Receipt
With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Guangdong Zhongsheng Pharmaceutical Co., Ltd.'s Private Offering of Shares to Specific Objects" (Zhengjian Permit [2023] No. 891), Guangdong Zhongsheng Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") issued 38,969,401 ordinary shares (A shares) to 12 specific objects at an issue 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 Huazhong Certified Public Accountants (Special General Partnership), who issued the "Capital Verification Report" (Zhonghui Zi [2023] No. 07869) on June 16, 2023.
(II) Amount Used in Previous Years, Amount Used in the 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 cumulatively invested in previous years, and RMB 116,641,686.56 was invested in raised fund projects during the 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 the 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 used to permanently supplement 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 |
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| Project | Amount (RMB) |
|---|---|
| Balance of dedicated raised fund accounts as of December 31, 2025 | 133,586,816.46 |
As of December 31, 2025, the balance of the Company's dedicated raised fund accounts was RMB 133,586,816.46.
II. Status of Raised Funds' Deposit and Management
(I) Management of Raised Funds
To standardize the management, deposit, and use of raised funds, and to improve the efficiency of their use 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," "Securities Law of the People's Republic of China," "Administrative Measures for the Issuance of Securities by Listed Companies," "Supervision Rules for Raised Funds of Listed Companies," "Stock Listing Rules of the Shenzhen Stock Exchange," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other laws and regulations, as well as the "Company Articles of Association." The Company has implemented special deposit and usage management for raised funds in accordance with the requirements of the management measures and based on operational needs.