Tianjin Lifeon Pharmaceutical Co., Ltd. 2025 Special Report on the Storage and Use of Raised Funds
I. Basic Situation of Raised Funds As approved by the China Securities Regulatory Commission (Document No. Zhengjian Faxi [2010] 371) and with the consent of the Shenzhen Stock Exchange, the Company issued 46 million shares of common stock (A shares) to the public for the first time. Each share has a par value of RMB 1 and an issue price of RMB 45. As of April 16, 2010, the Company had raised a total of RMB 2,070,000,000.00. After deducting issuance expenses of RMB 62,301,336.76, the net amount of raised funds was RMB 2,007,698,663.24. As of April 16, 2010, all the raised funds had been received. This was confirmed by the audit report No. "Zhongruiyuehua Yanshouzi [2010] No. 090" issued by Zhongruiyuehua Certified Public Accountants Co., Ltd. As of December 31, 2025, the Company had cumulatively invested RMB 2,028,772,983.37 in raised fund projects. This includes: RMB 100,698,643.01 of self-raised funds initially invested in raised fund projects before the funds were received; RMB 1,926,012,795.36 used from raised funds during the accounting period from April 16, 2010, to December 31, 2024; and RMB 2,061,545.00 used from raised funds in the current year. As of December 31, 2025, the balance of raised funds was RMB 874,245,681.73.
II. Management of Raised Funds To standardize the management and use of raised funds and protect investors' rights and interests, the Company, in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Stock Listing Rules," and other laws and regulations, and based on the Company's actual situation, formulated the "Raised Funds Management System" (hereinafter referred to as the "Management System"). This system was reviewed and approved by the 27th meeting of the Sixth Board of Directors on August 23, 2021, and approved by the 2021 Second Extraordinary General Meeting of Shareholders on December 30, 2021. In accordance with the requirements of the "Management System" and the Company's operational needs, the Company has opened special accounts for raised funds at China Merchants Bank Tianjin Nanmenwai Sub-branch (hereinafter referred to as "China Merchants Bank"), Industrial Bank Co., Ltd. Tianjin Meijiang Sub-branch (hereinafter referred to as "Industrial Bank"), and China CITIC Bank Co., Ltd. Tianjin Anshan West Road Sub-branch (hereinafter referred to as "CITIC Bank"). The Company has also signed "Raised Funds Tripartite Supervision Agreements" with Bohai Securities Co., Ltd. and the aforementioned three banks. These agreements ensure strict approval procedures for the use of raised funds, guaranteeing that funds are used for their intended purpose. The sponsor representative is authorized to inquire about the raised fund special account information at the bank at any time and is required to conduct on-site investigations of the raised fund management and use at least once every six months. According to the "Raised Funds Tripartite Supervision Agreement" signed by the Company, Bohai Securities Co., Ltd., and the three banks, if the cumulative withdrawal from the special account exceeds RMB 10 million within one year or 12 months (determined by the lower of RMB 10 million or 5% of the net raised funds), the bank shall promptly notify Bohai Securities via fax and provide a statement of account expenditures.