Securities Code: 002891 Bond Code: 127076 Securities Abbreviation: Zhong Pet Stock Bond Abbreviation: Zhong Pet Convertible Bond 2 Announcement Number: 2026-023
Announcement on Using Partial Raised Funds to Increase Capital in Wholly-Owned Subsidiary for Implementation of Investment Projects
The Company and all members of the Board of Directors guarantee the content of the information disclosure is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Yantai Zhong Pet Foods Co., Ltd. (hereinafter referred to as the "Company" or "Zhong Pet Stock") at the 24th meeting of the Fourth Board of Directors held on March 23, 2026, deliberated and passed the "Proposal on Using Part of the Raised Funds to Increase Capital in a Wholly-Owned Subsidiary for the Implementation of Investment Projects." It was agreed that the Company would use RMB 147 million of raised funds to increase capital in its wholly-owned subsidiary, Yantai Jia Shi Agricultural Technology Co., Ltd. (hereinafter referred to as "Jia Shi Agricultural"), to implement the investment project. The Board of Directors authorized the Company's management and their authorized representatives to handle the specific work and subsequent related matters. This matter is conducive to ensuring the smooth implementation of the investment project, is in line with the plan for the use of raised funds, and will not have an adverse impact on the Company's normal production and operation.
In accordance with the "Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange," the "Articles of Association," and other relevant regulations, this transaction does not constitute a related-party transaction and does not constitute a major asset restructuring as stipulated in the "Administrative Measures for Major Asset Restructuring of Listed Companies." This capital increase is within the scope of the Board of Directors' authority and does not require submission to the Company's shareholders' meeting for deliberation. The specific details are hereby announced as follows:
I. Basic Situation of Raised Funds
As approved by the China Securities Regulatory Commission's document "Zheng Jian Xu Ke [2022] No. 2063," the Company publicly issued 7,690,459.00 convertible corporate bonds on October 25, 2022. Each bond has a face value of RMB 100.00, with a total raised fund of RMB 769,045,900.00. After deducting underwriting and sponsorship fees of RMB 12,000,000.00 (including tax), the actual amount received was RMB 757,045,900.00.
The lead underwriter of the convertible corporate bonds, Lianchuang Securities Co., Ltd., deposited RMB 757,045,900.00 into the Company's account at the CITIC Bank Co., Ltd. Yantai Laishan Branch (Account No. 8110601011901525819) on October 31, 2022. During this issuance process, the issuer was required to pay underwriting and sponsorship fees, legal fees, auditing and verification fees, credit rating fees, information disclosure and issuance handling fees, and other expenses totaling RMB 14,973,452.30 (including VAT). The issuance expenses excluding VAT amounted to RMB 14,125,898.38 (excluding tax). After deducting the issuance expenses excluding tax, the net amount of raised funds was RMB 754,920,001.62.
The above-mentioned fund arrival situation was verified by HEC Accounting Firm (Special General Partnership), which issued the "Capital Verification Report" (HEC Yan Zi [2022] No. 000056). Due to the exemption of securities registration fees by the China Securities Depository and Clearing Corporation Limited in 2022, the net amount of raised funds after deducting issuance expenses excluding tax was adjusted. After adjustment, the Company's final net amount of raised funds after deducting issuance expenses excluding tax is RMB 754,956,277.37. The Company has deposited the above raised funds into a special account for raised funds, and has signed a supervision agreement for raised funds with the sponsor and the bank where the raised funds are deposited.
II. Use of Raised Funds