Stock Code: 002727 Stock Abbreviation: Yixintang Announcement No.: 2026-068
Yixintang Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Company") held its 2025 Annual General Meeting on May 20, 2026, where the "Proposal on Using Temporarily Idle Own Funds for Cash Management" was reviewed and approved. The Company and its wholly-owned subsidiaries were authorized to use idle own funds not exceeding 2.5 billion RMB for cash management (including but not limited to purchasing fixed-income or principal-protected floating-income wealth management products, large-denomination certificates of deposit, time deposits, notice deposits, and agreement deposits with a term of no more than one year). The cash management amount at any point in time within the investment period (including reinvestment of the aforementioned investment income) shall not exceed 2.5 billion RMB. Within the aforementioned quota, funds can be used on a rolling basis, and the Chairman is authorized to handle relevant implementation matters.
I. Status of Using Temporarily Idle Own Funds for Cash Management
(I) Basic Information on Current Cash Management
Recently, the Company signed a "Structural Deposit Business Agreement" with Huaxia Bank Co., Ltd., Kunming Hongta Branch. The basic information of this cash management is as follows:
| Contracting Bank Name | Product Name | Subscription Amount (10,000 RMB) | Income Type | Contract Start Date | Contract Maturity Date | Expected Annualized Yield |
|---|---|---|---|---|---|---|
| Huaxia Bank Co., Ltd. Kunming Hongta Branch | RMB Unit Structural Deposit DWJCKM26067 | 5,000 | Principal-protected minimum income type | 2026-06-18 | 2026-09-21 | 1.00%-1.75% |
| Huaxia Bank Co., Ltd. Kunming Hongta Branch | RMB Unit Structural Deposit DWJCKM26068 | 5,000 | Principal-protected minimum income type | 2026-06-18 | 2026-09-21 | 1.00%-1.81% |
(II) Investment Risk Analysis and Risk Control Measures
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Investment Risks (1) The Company's cash management belongs to low-risk investment varieties, but the financial market is significantly affected by the macroeconomy, and the impact of market fluctuations on such investments cannot be ruled out. (2) The Company will intervene with funds in a timely and appropriate manner according to changes in the economic situation and financial markets, so the actual return on short-term investments is unpredictable. (3) Operational and monitoring risks of relevant personnel.
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Risk Control Measures (1) After the approval procedures are completed, the Company will sign contract documents with relevant parties within the aforementioned investment quota, and the Company's financial officer will organize the implementation. (2) Relevant personnel in the Company's finance department will analyze and track the investment direction and project progress of cash management products in a timely manner. If risk factors that may affect the safety of the Company's funds are identified, corresponding measures will be taken in a timely manner to control investment risks. (3) The Company's internal audit department is responsible for internal audit and supervision of matters such as the investment in cash management products. (4) The Company's independent directors and audit committee supervise and inspect the use of funds. (5) The Company will perform relevant information disclosure work in accordance with the relevant regulations of the Shenzhen Stock Exchange.
(III) Impact on the Company
- Through moderate investment in low-risk cash management products, the Company and its subsidiaries can improve the efficiency of idle own funds, obtain certain investment benefits, further improve the Company's overall performance, and seek more investment returns for shareholders.
- The Company adheres to the principles of "standardized operation, risk prevention, and prudent investment." Under the premise of ensuring fund safety, it uses a portion of idle own funds for cash management, which does not affect the normal development of the Company's idle own fund investment projects, does not affect the normal turnover of the Company's daily funds, and will not affect the normal development of the Company's main business.