Guangdong Zhongsheng Pharmaceutical Co., Ltd.
Announcement on the Progress of Using Idle Raised Funds for Cash Management
The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or major omissions.
I. Overview
Guangdong Zhongsheng Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the 27th meeting of the 8th Board of Directors and the 27th meeting of the 8th Supervisory Board on September 18, 2025. The meetings deliberated and approved the "Proposal on the Use of Part of Idle Raised Funds for Cash Management." It was agreed that the Company would use no more than RMB 18,000.00 million of idle raised funds for cash management, provided that the normal progress of the raised fund investment plan is not affected. The Company will purchase principal-protected products with high security, such as structured deposits and large-denomination certificates of deposit, in a timely manner.
The cash management period will be twelve months from the date of approval by the Board of Directors. Funds can be used on a rolling basis within the aforementioned amount and period. However, the actual investment amount at any given time shall not exceed RMB 18,000.00 million. This use of part of the idle raised funds for cash management will be authorized by the Chairman for specific implementation within the aforementioned limit.
The detailed content of the above can be found in the relevant announcements published by the Company on September 19, 2025, in the "Securities Times," "Shanghai Securities News," and on the CNINFO website (www.cninfo.com.cn).
To improve the efficiency of raised fund utilization and ensure the safety of the raised funds and the normal progress of the raised fund investment plan, the Company is using part of the idle raised funds for cash management. The specific details are announced as follows:
II. Details of the Current Purchase of Principal-Protected Products
(I) On April 28, 2026, the Company signed an agreement with the Shiqiao Branch of Dongguan Bank Co., Ltd. (hereinafter referred to as "Dongguan Bank"). The Company used RMB 40 million of idle raised funds to purchase a structured deposit product from Dongguan Bank. The specific agreement details are as follows:
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Product Name: Dongguan Bank Unit Structured Deposit
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Expected annualized yield: 1.10% to 1.60%
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Product Type: Principal-Protected Floating Yield
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Currency: RMB
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Product Term: 61 days
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Value Date: April 30, 2026
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Maturity Date: June 30, 2026
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Subscription Amount: RMB 40 million
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Explanation of Related Party Relationship: The Company has no related party relationship with Dongguan Bank.
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Risk Warning:
(1) Principal and Yield Risk: Dongguan Bank only guarantees the principal and the minimum guaranteed interest rate of this structured deposit. It does not guarantee the floating yield of the structured deposit. The final yield of the structured deposit depends on the price changes of the underlying asset, which is affected by various market factors. The risk of uncertain yield shall be borne by the customer, and the customer should be fully aware of this. If the market interest rate rises during the deposit period, the interest rate of this deposit will not increase with the market interest rate.
(2) Policy Risk: This deposit is designed based on current relevant laws and regulations. If national macroeconomic policies or relevant market laws and regulations change, it may affect the normal processing of deposit acceptance, investment, and repayment, and may even lead to a reduction in the yield or loss of principal of this structured deposit, which shall be borne by the customer. Dongguan Bank shall not bear any responsibility for this.