Hubei Hendi Pharmaceutical Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the content of this announcement is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
The Company held the 18th meeting of the second Board of Directors on March 30, 2025, and approved the proposal on continuing to use part of the idle raised funds and own funds for cash management. It was agreed that the Company plans to use no more than RMB 90 million of idle raised funds and no more than RMB 50 million of its own funds for cash management, ensuring that it does not affect the construction of investment projects funded by raised funds and the normal production and operation of the Company. The usage period is valid for 12 months from the date of approval by the shareholders' meeting. Within the above limits and period, the funds can be used in a rolling manner. This proposal still needs to be submitted to the shareholders' meeting for approval. The specific situation is announced as follows:
1. Basic Situation of Raised Funds
According to the approval of the China Securities Regulatory Commission [2021]3639, Hendi Pharmaceutical publicly issued 60 million shares of RMB ordinary shares (A shares) at a price of RMB 25.80 per share, raising a total of RMB 1,548,000,000.00. After deducting issuance costs, the net amount of raised funds is RMB 1,400,732,340.85. The raised funds were transferred to the Company's designated account on December 16, 2021. Da Xin Accounting Firm (Special General Partnership) verified the arrival of the funds for the Company's initial public offering on December 16, 2021, and issued verification report No. [2021] 2-10059. After the raised funds arrived, the Company stored them in a special account and signed a supervision agreement for the special account of raised funds with the sponsor and the bank holding the raised funds.
2. Explanation of the Use of Raised Funds
The Company's investment projects funded by raised funds were approved at the second meeting of the first Board of Directors in 2020 and the second temporary shareholders' meeting in 2020. The situation of the publicly issued stock investment projects is as follows:
| No. | Project Name | Total Investment | Proposed Use of Raised Funds |
|---|---|---|---|
| 1 | Annual production of 5,000 tons of Ibuprofen API | 57,332.66 | 57,332.66 |
| 2 | Annual production of 1,200 tons of API | 29,225.11 | 29,225.11 |
| 3 | Annual production of 12 tons of anti-tumor API | 17,472.91 | 17,472.91 |
| 4 | Supplementing working capital | 15,000.00 | 15,000.00 |
| Total | 119,030.68 | 119,030.68 |
Note: The net amount of the Company's IPO raised funds is RMB 140,073.23 million, with excess raised funds of RMB 21,042.55 million.
On December 30, 2022, the Company held the 15th meeting of the first Board of Directors and the 10th meeting of the first Supervisory Board, and on January 16, 2023, the first temporary shareholders' meeting of 2023 was held to approve the proposal to change part of the use of raised funds, using excess raised funds and own funds for investment in high-end pharmaceutical formulation internationalization projects. This was approved by the shareholders' meeting on January 16, 2023. The situation of the changed investment projects is as follows: