Newland Pharma Co., Ltd.
2025 Special Report on the Collection and Use of Raised Funds
The Company and all members of the Board of Directors guarantee that the information disclosed in this announcement is true, accurate, and complete, and that there are no false records, misleading statements, or material omissions.
In accordance with the "Supervisory Rules for Raised Funds of Listed Companies" issued by the China Securities Regulatory Commission, the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 - Standardized Operation of GEM Listed Companies," and other normative documents, as well as the "Articles of Association" and "Raised Funds Management System," Newland Pharma Co., Ltd. (hereinafter referred to as the "Company") has compiled this special report on the collection and use of raised funds in 2025. The details are as follows:
I. Basic Status of Raised Funds
(I) Status of Actual Raised Funds
With the approval of the "Approval on the Registration of the Initial Public Offering of Shares of Henan Newland Pharma Co., Ltd." (Securities Regulatory Permit [2022] No. 1911) from the China Securities Regulatory Commission, the Company issued 33,360,000.00 A shares with a par value of RMB 1.00 per share at an issuance price of RMB 27.00 per share. The total amount of raised funds was RMB 900,720,000.00. After deducting issuance expenses related to the raised funds totaling RMB 85,154,160.95 (excluding VAT), the net amount of raised funds was RMB 815,565,839.05. The aforementioned raised funds were audited by KPMG Huazhen Certified Public Accountants (Special General Partnership), who issued the "Capital Verification Report" (KPMG Huazhen Verification No. 2201583) on November 11, 2022.
(II) Status of Raised Funds Used and Remaining
As of December 31, 2025, the Company's balance of raised funds was RMB 65,880,754.18. The details are as follows:
| Project | Amount (RMB) |
|---|---|
| Balance of Raised Funds in Special Account as of December 31, 2024 | 359,968,066.04 |
| Less: Cumulative Amount of Raised Funds Used During the Reporting Period | 299,098,915.40 |
| Of which: Annual Production of 120 Tons of APIs Project | 32,869,515.36 |
| R&D Center Construction Project | 9,143,692.59 |
| Project Funds for Permanent Working Capital (Note 1) | 39,702,535.55 |
| Project Funds for Permanent Working Capital (Note 2) | 139,796,408.15 |
| Intelligent Specialty APIs Project (Note 3) | 8,586,763.75 |
| Surplus Raised Funds for Permanent Working Capital | 69,000,000.00 |
| Plus: Net Interest Income After Handling Fees in 2025 | 521,180.52 |
| Plus: Proceeds from Repurchasing Idle Funds and Investment Income | 4,490,423.02 |
| Balance of Raised Funds as of December 31, 2025 | 65,880,754.18 |
Note 1: On April 19, 2025, the Company held the sixth meeting of the sixth Board of Directors and the sixth meeting of the sixth Supervisory Board. On May 8, 2025, the first extraordinary general meeting of shareholders in 2025 was held, which deliberated and approved the "Proposal on Terminating Some Raised Fund Investment Projects, Permanently Supplementing Working Capital with Surplus Raised Funds, and Canceling Raised Fund Special Accounts." The "R&D Center Construction Project," an IPO raised fund investment project, has reached its intended usable state. The Board of Directors and the shareholders' meeting deliberated and approved the termination of this project and the permanent supplementation of working capital with the surplus funds.
Note 2: On December 6, 2025, the Company held the ninth meeting of the sixth Board of Directors and the ninth meeting of the sixth Supervisory Board. On December 24, 2025, the third extraordinary general meeting of shareholders in 2025 was held, which deliberated and approved the "Proposal on Terminating Some Raised Fund Investment Projects, Permanently Supplementing Working Capital with Surplus Raised Funds, and Canceling Raised Fund Special Accounts." The "Annual Production of 120 Tons of APIs Project," an IPO raised fund investment project, has reached its intended usable state. The Board of Directors and the shareholders' meeting deliberated and approved the termination of this project and the permanent supplementation of working capital with the surplus funds.