Anhui Huaren Health Pharmaceutical Co., Ltd. (hereinafter referred to as "Huaren Health" or the "Company") intends to issue A-shares to specific targets, with the total amount of proceeds not exceeding 709.0743 million RMB. In accordance with relevant regulations such as the "Administrative Measures for the Issuance and Registration of Securities by Listed Companies" of the China Securities Regulatory Commission, the Company has prepared this feasibility analysis report on the use of proceeds from the issuance of A-shares to specific targets.
Unless otherwise specified in this report, relevant terms have the same meanings as those defined in the "Anhui Huaren Health Pharmaceutical Co., Ltd. 2026 A-Share Issuance to Specific Targets Plan".
I. Plan for the Use of Proceeds
The total amount of proceeds from this issuance of shares to specific targets shall not exceed 709.0743 million RMB (inclusive). After deducting relevant issuance expenses, the net proceeds will be invested in the following projects:
| No. | Project | Total Investment | Proposed Proceeds Investment |
|---|---|---|---|
| 1 | Smart Manufacturing and Sorting Center Project | 55,085.47 | 40,866.91 |
| 2 | Pharmaceutical R&D Project | 10,789.11 | 10,789.11 |
| 3 | IT Construction Project | 4,251.41 | 4,251.41 |
| 4 | Working Capital Supplement | 15,000.00 | 15,000.00 |
| Total | 85,125.99 | 70,907.43 |
Unit: 10,000 RMB
Before the proceeds from this issuance are received, the Company will invest its own or self-raised funds based on the actual progress of the investment projects, and will replace them according to the procedures stipulated by relevant laws and regulations after the proceeds are received.
After the proceeds from this issuance are received, if the net proceeds are less than the amount proposed to be invested in the above projects, the Company will, under the premise of complying with relevant laws and regulations, adjust and finally decide on the specific investment projects, priority, and specific investment amount for each project based on the actual amount of proceeds and the specific circumstances of project implementation. Any shortfall will be covered by the Company's own or self-raised funds.
II. Specific Details and Feasibility Analysis of Investment Projects
(I) Smart Manufacturing and Sorting Center Project
- Basic Project Information
This project intends to increase the Company's large-scale production capacity for pharmaceutical preparations by building new production plants and purchasing advanced production equipment. On the other hand, it intends to expand storage capacity and improve logistics efficiency by building a new sorting center and purchasing intelligent equipment. The implementation of this project will help fundamentally alleviate the Company's production capacity bottlenecks, improve the Company's automation and intelligent production and operation levels, and lay a foundation for the sustainable development of the business.
Project basic information is as follows:
| Project Name | Smart Manufacturing and Sorting Center Project |
|---|---|
| Implementation Entity | Anhui Huaren Health Pharmaceutical Co., Ltd. and its subsidiaries |
| Total Project Investment | 55,085.47 ten thousand RMB |
| Project Construction Site | Northwest corner of the intersection of Dalian Road and Heilongjiang Road, Baohe District, Hefei City, Anhui Province |
| Construction Period | 36 months |
- Necessity of Project Implementation
(1) Deepen the pharmaceutical industry ecological layout, improve the Company's large-scale production capacity for preparations, and build differentiated competitive barriers.