Zhongtai Securities Co., Ltd.
Audit Report on the Custody, Management, and Use of Raised Funds of Shandong Boyuan Pharmaceutical Co., Ltd. for 2025
Zhongtai Securities Co., Ltd. (hereinafter referred to as "Zhongtai Securities" or "the Sponsor"), as the sponsor of Shandong Boyuan Pharmaceutical Co., Ltd. (hereinafter referred to as "Boyuan Shares" or "the Company") for its initial public offering of shares on the ChiNext market, has fulfilled its continuous supervision responsibilities. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "ChiNext Stock Market Listing Rules," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 2 - Standardized Operation of ChiNext Listed Companies," and the "Regulations on the Supervision of Raised Funds of Listed Companies," among other relevant regulations, the Sponsor has audited the custody, management, and use of raised funds of Boyuan Shares for 2025. The audit opinion is as follows:
I. Basic Situation of Raised Funds
(I) Amount of Raised Funds and Time of Receipt
According to the "Approval for the Registration of the Initial Public Offering of Shares of Shandong Boyuan Pharmaceutical Co., Ltd." (Certificate of Securities Regulation [2024] No. 1415) issued by the China Securities Regulatory Commission, the Company issued 25.7 million shares of RMB ordinary shares (A shares) through a combination of offline inquiry and pricing and online pricing to public investors holding non-tradable A shares and non-tradable depositary receipts in the Shenzhen market, with the lead underwriter Zhongtai Securities. The issue price was RMB 27.76 per share, raising a total of RMB 713.432 million. After deducting underwriting and sponsorship fees of RMB 49.9731 million (excluding tax), the raised funds amounted to RMB 663.4589 million, which was remitted to the Company's raised funds supervision account by the lead underwriter Zhongtai Securities on December 5, 2024. After further deducting external expenses directly related to the issuance of equity securities, such as audit and capital verification fees, legal fees, information disclosure fees, and issuance and listing related fees, amounting to RMB 35.2912 million (excluding tax), the net amount of raised funds for this issuance is RMB 628.1677 million. The receipt of these raised funds has been verified by Tianjian Certified Public Accountants (Special General Partnership), who issued the "Capital Verification Report" (Tianjian Verification [2024] No. 494).
(II) Use of Raised Funds
As of December 31, 2025, the use of the Company's raised funds is as follows:
| Item | Serial Number | Amount (RMB ten thousand) |
|---|---|---|
| Net amount of raised funds | A | 62,816.77 |
| Funds invested | B1 | - |
| Accumulated to the beginning of the period | Net income from interest | B2 |
| Supplement to working capital | B3 | |
| Funds invested | C1 | 997.63 |
| Funds from self-raised capital for prior investment in the period | C2 | 22,859.26 |
| Period's | Net income from interest | C3 |
| Supplement to working capital | C4 | |
| Funds invested | D1=B1+C1+C2 | 23,856.89 |
| Accumulated to the end of the period | Net income from interest | D2=B2+C3 |
| Supplement to working capital | D3=B3+C4 | |
| Remaining raised funds | E=A-D1+D2-D3 | 25,241.20 |
| Actual remaining raised funds | F | 25,241.20 |
| Difference | G=E-F | - |
Note: The sum of some items may differ slightly from the sum of their components due to rounding to the nearest ten thousand RMB (as stated below).
II. Custody and Management of Raised Funds