2026 Annual Analysis Report on the Feasibility of Using Raised Funds for Issuing A-shares to Specific Objects
YaBen Chemicals Corporation (hereinafter referred to as "YaBen Chemicals" or "the Company") plans to raise funds by issuing A-shares to specific objects. The feasibility analysis of the Company's use of raised funds for this issuance to specific objects is as follows:
(Unless otherwise specified, terms in this report have the same meaning as in the "Pre-plan for YaBen Chemicals Corporation's 2026 Issuance of A-shares to Specific Objects".)
I. Plan for Use of Raised Funds
The total amount of funds to be raised by the Company through the issuance of shares to specific objects shall not exceed RMB 84,100.00 million (inclusive). After deducting issuance expenses, the funds will be used for the following projects:
| No. | Project Name | Estimated Investment (RMB million) | Proposed Use of Raised Funds (RMB million) |
|---|---|---|---|
| 1 | 35-ton/year High-end Pharmaceutical Intermediate Pilot Project | 4,000.00 | 3,600.00 |
| 2 | New 2,019-ton/year API and Intermediate Project (Phase I) | 14,400.00 | 13,400.00 |
| 3 | New 140-ton/year Pharmaceutical Raw Material Project | 28,600.00 | 28,000.00 |
| 4 | New 50-ton/year Regorafenib and 2-ton/year SERD Inhibitor Project | 20,000.00 | 20,000.00 |
| 5 | R&D Center Construction Project | 3,192.25 | 3,100.00 |
| 6 | Supplementing Working Capital | 16,000.00 | 16,000.00 |
| Total | 86,192.25 | 84,100.00 |
If the actual raised funds are insufficient to meet the funding requirements for the above projects, the Company's Board of Directors may, within the scope of the investment projects, adjust the order and amount of capital injection into the projects based on the progress and funding needs of the raised fund investment projects. Any shortfall will be resolved by the Company through its own funds or other financing methods.
Before the raised funds are in place, the Company may make advance investments using its own funds or self-raised funds. Such advance investments will be replaced by the raised funds after they are in place, in accordance with relevant regulations.
II. Background and Objectives of the Issuance to Specific Objects
1. Policy Support Empowers Industrial Upgrading and Builds a Foundation for High-Quality Development
Currently, China's pharmaceutical and fine chemical industries are at a critical juncture of transformation and upgrading. Policy-level plans and special industrial support measures have been successively introduced to guide the high-quality development of the industry. The "Government Work Report" in 2026 and the "15th Five-Year Plan for National Economic and Social Development" (hereinafter referred to as the "15th Five-Year Plan") have jointly released significant policy orientations, laying a top-level support for the high-quality development of the pharmaceutical and fine chemical industries and fostering a long-term positive policy environment.