Guotai Junan Securities Co., Ltd. (hereinafter referred to as "Guotai Junan" or "the Sponsor") is the sponsor for Hubei Hendi Pharmaceutical Co., Ltd. (hereinafter referred to as "Hendi Pharmaceutical" or "the Company") in its initial public offering and listing on the Growth Enterprise Market. In accordance with relevant regulations including the "Administrative Measures for the Sponsorship of Securities Issuance and Listing," "Regulations on the Supervision of Fundraising by Listed Companies," "Listing Rules for the Growth Enterprise Market of the Shenzhen Stock Exchange," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," Guotai Junan has conducted a verification of Hendi Pharmaceutical's fundraising storage and actual usage for 2025. The specific situation is as follows:
I. Basic Situation of Fundraising
(1) Fundraising from Initial Public Offering
Approved by the China Securities Regulatory Commission (CSRC) document [2021]3639, Hendi Pharmaceutical publicly issued 60 million shares of RMB ordinary shares (A shares) at an issuance price of RMB 25.80 per share, raising a total of RMB 1,548,000,000.00. After deducting issuance expenses, the net amount raised was RMB 1,400,732,340.85. The raised funds were transferred to the Company's designated account on December 16, 2021. Da Xin Certified Public Accountants (Special General Partnership) verified the funds' arrival on December 16, 2021, and issued verification report No. [2021] 2-10059. After the funds arrived, the Company stored the raised funds in a special account and signed a supervision agreement for the special account storage of the raised funds with the sponsor and the bank where the funds are stored.
(2) Usage and Balance of Fundraising for 2025
As of December 31, 2025, the Company had cumulatively used RMB 606,308,400.00 of the raised funds, with RMB 79,403,600.00 used in the current year, all invested in fundraising projects. The remaining balance of unused raised funds was RMB 914,550,900.00 (of which net interest income after deducting handling fees was RMB 120,127,100.00), with RMB 899,263,400.00 managed as idle funds and RMB 15,287,500.00 stored in the special account for raised funds.