Jingxin Pharmaceutical: Special report on the storage and use of raised funds in the first half of 2025
Securities code: 002020 Securities abbreviation: Jingxin Pharmaceutical Announcement number: 2025042
Zhejiang Jingxin Pharmaceutical Co., Ltd.
Special report on the storage and use of raised funds for the first half of 2025
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and that there are no false records, misleading statements or major omissions.
On August 26, 2025, Zhejiang Jingxin Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the 16th meeting of the 8th Board of Directors, and reviewed and approved the "Special Report on the Storage and Use of Funds Raised by the Company in the Half-Year 2025". In accordance with the relevant provisions of the China Securities Regulatory Commission's "Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies (Revised in 2022)" (CSRC Announcement [2022] No. 15), "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies" and "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Announcement Format", the Company's 2025 The following special report is made on the storage and use of funds raised in the first half of the year:
1. Basic situation of raised funds
(1) Actual amount of funds raised and availability of funds
- Amount of funds raised by non-public issuance in 2016 and status of funds in place
As approved by the China Securities Regulatory Commission's "Approval of the Non-public Issuance of Stocks by Zhejiang Jingxin Pharmaceutical Co., Ltd." (CSRC License [2017] No. 924), the company non-publicly issued 98,126,672 RMB ordinary shares (A shares) to Jingxin Holding Group Co., Ltd. and other 6 specific investors (legal persons or natural persons) who meet the relevant conditions on July 28, 2017. The issuance price per share is RMB. 11.21 yuan. The total amount of funds raised by this non-public issuance of shares was RMB 1,099,999,993.12. After deducting underwriting and sponsorship fees, the actual net amount of funds raised was RMB 1,090,400,357.02. The above-mentioned raised funds were all received on August 4, 2017 and verified by the "Capital Verification Report" No. ZA15725 of Lixin Accounting Firm (Special General Partnership) Xinhuishibaozi [2017].
- Amount of funds raised by non-public issuance in 2020 and status of funds in place
As approved by the China Securities Regulatory Commission's "Approval of the Non-public Issuance of Stocks by Zhejiang Jingxin Pharmaceutical Co., Ltd." (CSRC License [2021] No. 190), the company non-publicly issued 67,567,567 RMB ordinary shares (A shares) to Jingxin Holding Group Co., Ltd. on August 20, 2021, with an issuance price of RMB 7.40 per share. The total amount of funds raised by this non-public issuance of shares was RMB 499,999,995.80. After deducting underwriting and sponsorship fees, the actual net amount of funds raised was RMB 495,040,026.39. The above-mentioned raised funds have been fully received on August 23, 2021 and have been verified by the Capital Verification Report No. ZA15359 of Shun Huishen Accounting Firm (Special General Partnership) [2021].
(2) Use of raised funds and balance of special account
- Use of funds raised from non-public issuance and balance of special accounts in 2016
In 2016, 1,129,599,100 yuan of funds raised from the non-public issuance were used in previous years, and 43,452,800 yuan was used in the first half of 2025. As of March 21, 2025, the funds in this special account have been used up and the balance is zero. The situation is as follows:
Project amount (yuan)
Balance at the beginning of the year 454,227.50
Decrease this year 43,454,304.82
Investment in raised funds projects 43,452,764.52
Temporarily replenish working capital -
Permanently replenish working capital -
Purchase financial products -
Replacement upfront investment -
Handling fee expenditure 1,540.30
Increase this year 43,000,077.32
Interest income and financial management income 77.32
Return the raised funds 43,000,000.00
Redemption of financial products -
Ending special account balance 0.00 Note: The increase and decrease this year are the cumulative amount incurred in the current year.
Use of funds raised from non-public issuance and balance of special accounts in 2020
In 2020, 321.8608 million yuan of funds raised by non-public issuance have been used in previous years, and 34.7192 million yuan was used in the first half of 2025. The use of funds raised and the balance of the special account at the end of June 2025 are as follows:
Project amount (yuan)
Balance at the beginning of the year 596,026.87
Decrease this year 34,720,529.54
Investment in raised funds projects 34,719,202.98
Temporarily replenish working capital -
Permanently replenish working capital -
Purchase financial products -
Replacement upfront investment -
Project amount (yuan)
Handling fee expenditure 1,326.56
Increase this year 34,200,870.01
Interest income and financial management income 870.01
Return the raised funds 34,200,000.00
Redemption of financial products -
Ending special account balance 76,367.34 Note: This year’s increase and current year’s decrease are the cumulative amount of the year
2. Storage and management of raised funds
(1) Management of raised funds
In order to standardize the management and use of raised funds, improve the efficiency of fund use, and protect the rights and interests of investors, the company, in accordance with the provisions of the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Shenzhen Stock Exchange Stock Listing Rules", "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1 - Standardized Operation of Main Board Listed Companies" and other laws and regulations, combined with Based on the actual situation of the company, the "Management Measures for the Use of Raised Funds of Zhejiang Jingxin Pharmaceutical Co., Ltd." (hereinafter referred to as the "Management Measures") were formulated. The "Management Measures" were reviewed and approved by the 13th meeting of the fourth session of the Board of Directors and the 25th meeting of the seventh session of the Board of Directors. The "Management Measures" clearly stipulate the storage, use, investment change, management and supervision of raised funds.
On August 21, 2017, the company signed a tripartite supervision agreement for funds raised through non-public issuance in 2016 with China Merchants Bank Shaoxing Shengzhou Branch and Caitong Securities Co., Ltd.
Because Ping An Securities Co., Ltd. (hereinafter referred to as "Ping An Securities") served as the sponsor for the company's non-public issuance of stocks in 2020, the original sponsor Caitong Securities Co., Ltd. and the company agreed to terminate the sponsorship agreement after consultation. The company and Ping An Securities signed a sponsorship agreement on the continued supervision of the storage and use of funds raised by the company's non-public issuance of stocks in 2016, and hired Ping An Securities to perform the unfinished continuous supervision work of the non-public issuance of stocks in 2016. On October 13, 2020, the company re-signed a tripartite supervision agreement for raised funds with China Merchants Bank Shaoxing Shengzhou Branch and Ping An Securities, the bank where the raised funds are deposited.
On August 31, 2021, the company signed a tripartite supervision agreement for funds raised through non-public issuance in 2020 with Minsheng Bank Hangzhou Branch (the superior branch of Minsheng Bank Shaoxing Shengzhou Branch) and Ping An Securities Co., Ltd.
There is no major difference between the three-party supervision agreement for raised funds signed by the company with the sponsor institution and commercial bank according to regulations and the three-party supervision agreement template.
- During the reporting period, the company strictly implemented the "Regulations on the Management of Raised Funds" and the "Tripartite Supervision Agreement on Raised Funds", and there was no violation of relevant regulations and agreements.
(2) Storage status of raised funds in special account
- Storage status of funds raised from non-public issuance in special accounts in 2016
The funds in the special account for the company's non-public issuance of funds raised in 2016 were all used up on March 21, 2025, and the balance was zero. The special account for raised funds (account number: 571900191010288) was also officially canceled on April 7, 2025.
- Storage status of funds raised from non-public issuance in special accounts in 2020
As of June 30, 2025, the storage situation of raised funds in the special account is as follows:
Amount unit: RMB
Opening bank Account type Account number Balance on June 30, 2025 China Minsheng Banking Co., Ltd. 27,549.60
Special account for raising funds 633248740
Shaoxing Shengzhou Branch
China Minsheng Bank Co., Ltd. 48,817.74
Special account for raising funds 633248766
Shaoxing Shengzhou Branch
Total 76,367.34
3. Actual use of funds raised this year
(1) Usage of funds raised for investment projects
The actual use of funds raised by the company in the first half of 2025 is detailed in the appendix of this report. Among them: the comparison table of the use of funds raised by non-public issuance in 2016 is shown in Appendix 1 of this report; the comparison table of the use of funds raised by non-public issuance in 2020 is shown in Appendix 2 of this report.
(2) Changes in implementation locations and implementation methods of investment projects with raised funds
In the first half of 2025, there were no changes in the implementation location or implementation methods of the company's investment projects with raised funds.
(3) Advance investment and replacement of raised funds in investment projects
In the first half of 2025, the company has no advance investment or replacement of raised funds in investment projects.
(4) Use of idle raised funds to temporarily supplement working capital
On August 14, 2024, the 10th meeting of the company's eighth board of directors reviewed and approved the "Proposal on Using Part of Idle Raised Funds to Temporarily Supplement Working Capital", agreeing that the company will temporarily replenish working capital with idle raised funds not exceeding 290 million yuan (of which the funds raised by non-public issuance in 2016 shall not exceed 90 million yuan; the funds raised by non-public issuance in 2020 shall not exceed 200 million yuan), and the use period shall not exceed 12 months from the date of review and approval by this board of directors.
As of June 30, 2025, the idle raised funds of 138,800,000.00 yuan that have not yet been expired and used to temporarily supplement working capital have come from the 2020 non-public issuance of funds.
(5) Cash management using idle raised funds
The company does not use idle raised funds for cash management.
(6) Usage of surplus raised funds
The company does not use the remaining funds from raised capital investment projects for other raised capital investment projects or non-raised capital investment projects.
(7) Usage of excess raised funds
The company has no use of excess raised funds.
(8) Purpose and destination of unused raised funds
The unused portion of the funds raised from the non-public issuance in 2020 is deposited in the special account for raised funds, Minsheng Bank Shaoxing Shengzhou Branch account number 633248740 and 633248766.
(9) Other uses of raised funds
- Reasons and circumstances why the benefits of investment projects with raised funds cannot be separately calculated
The company's investment projects with funds raised from non-public issuance in 2016 were research and development platform construction projects and supplementing the company's working capital. They did not directly generate economic benefits, so the benefits cannot be calculated separately. According to the company's R&D strategic plan, the long-term benefits of the R&D center will be mainly reflected in the following aspects:
(1) Achieve product quality innovation by conducting research on common technologies related to the main business;
(2) Promote the company's product innovation and enhance the company's core competitiveness and comprehensive strength by conducting research on new fields, new products and new technologies.
- Completion of investment projects with raised funds
The funds in the special account for the company's 2016 non-public issuance of funds raised by the project were all used up on March 21, 2025. The special account for raised funds (account number: 571900191010288) was also officially canceled on April 7, 2025. The closing conditions were met and the company closed the project.
- Situations and reasons for failure to achieve planned progress or expected benefits
The company's 2020 non-public issuance investment project, the solid preparation production capacity improvement project with an annual output of 3 billion tablets, achieved a total profit of 16.0846 million yuan in the first half of 2025, which did not meet the expected revenue. The reason is that the product gradual verification and transfer cycle is long and the production capacity is not fully released.
4. Changes in the use of funds raised for investment projects
(1) Changes in investment projects with raised funds
The company's investment projects with raised funds have not changed during the year.
(2) The planned progress has not been reached and the feasibility of the project after the change has changed significantly. The Company has no situation where the investment project with raised funds has not reached the planned progress or the feasibility of the project has changed significantly after the change.
(3) Reasons and circumstances why the benefits of investment projects with raised funds cannot be separately calculated after the change. There is no situation in which the benefits of investment projects with raised funds cannot be separately calculated after the change.
(4) The investment projects with raised funds have been transferred or replaced externally
There is no situation in which the company's investment projects with raised funds have been transferred or replaced externally.
5. Problems in the use and disclosure of raised funds
The company's disclosed information related to the use of raised funds is not untimely, untrue, inaccurate, or incomplete, and there are no violations in the storage, use, management, and disclosure of raised funds. Attached table: 1. Comparison table on the use of funds raised from non-public issuance in 2016
- Comparison table on the use of funds raised from non-public issuance in 2020
Announcement is hereby made.
Board of Directors of Zhejiang Jingxin Pharmaceutical Co., Ltd.
Schedule 1 on August 27, 2025:
Comparison table of usage of funds raised from non-public issuance in 2016
Compilation unit: Zhejiang Jingxin Pharmaceutical Co., Ltd. First half of 2025 Amount unit: RMB 10,000 Total raised funds invested during the year Total raised funds 109,040.04 4,345.28
Um
The total amount of raised funds whose purpose was changed during the reporting period
The total amount of raised funds that have been invested and the total amount of raised funds that have been changed in use 117,305.19
Um
Cumulative proportion of total raised funds that have been changed in use
Whether the feasibility of the project has been achieved, whether the committed investment project and the investment beyond the raised funds have been changed, whether the project has been changed, the raised funds commitment, the investment for the year, the cumulative investment by the end of the period, the investment progress by the end of the period (%), the project has reached the target, the actual amount for the year is expected, a major change has occurred (including some changes), the total amount of investment, total amount (1) amount, the amount of investment (2) (3) = (2)/(1), the status date, the actual benefits.
Commitment to investment projects
R&D platform construction project No 105,000.00 104,040.04 4,345.28 112,305.19 107.94 Not applicable Not applicable Not applicable No
Supplementary working capital No 5,000.00 5,000.00 5,000.00 100.00 August 23, 2017 Not applicable Not applicable No Subtotal of committed investment projects 110,000.00 109,040.04 4,345.28 117,305.19
Investment direction of super-raised funds
Return bank loan (if any) Not applicable
Supplement working capital (if any) Not applicable
Subtotal of investment of excess raised funds
Total 110,000.00 109,040.04 4,345.28 117,305.19
Failure to achieve planned progress or expected benefits
Not applicable
Situations and reasons (divided into specific projects)
Major changes in project feasibility
There has been no significant change in project feasibility
Situation description
The amount, purpose and use of excess raised funds
Not applicable
Use progress
Implementation location of investment projects with raised funds
The project implementation location has not changed
Changes
Implementation methods of investment projects with raised funds
The project implementation method has not been adjusted
Adjustment
Preliminary investment of raised funds in investment projects did not occur in this period
and replacement situation
Use idle raised funds to temporarily supplement the flow
For details, please refer to the third (fourth) liquidity situation of this report.
Use idle raised funds for cash management
For details, please refer to the third (five) management situation of this report.
There is a balance of raised funds during project implementation
Inapplicable amounts and reasons
The purpose of unused raised funds and
Not applicable destination
Existence in the use and disclosure of raised funds
For details, please refer to the issues or other situations in Section 3 (9) of this report.
Schedule 2:
Comparison table on the use of funds raised from non-public issuance in 2020
Prepared by: Zhejiang Jingxin Pharmaceutical Co., Ltd. First half of 2025 Amount unit: RMB 10,000
Total raised funds invested during the year Total raised funds 49,504.00 3,471.92
Um
The total amount of raised funds whose purpose was changed during the reporting period
The total amount of raised funds that have been invested and the total amount of raised funds that have been changed in use 35,658.00
Um
Cumulative proportion of total raised funds that have been changed in use
Whether the promised investment projects and over-raised capital investment have been achieved. Whether the project has been changed. Raised capital commitment. Adjusted investment. Investment this year. Cumulative as of the end of the period. Investment progress as of the end of the period (%). The project has achieved the scheduled results that can be achieved this year. Is the feasibility of the project
Estimated total investment (including partial changes) Total investment amount (1) Amount Investment amount (2) (3)＝(2)/(1) Use status date Benefit There has been a significant change
Benefit Commitment Investment Project
- Annual output of 3 billion solid preparations
No 28,000.00 27,504.00 2,127.00 18,345.94 66.70 February 2024 1,608.46 No Can the project be upgraded?
- Annual output of 5 billion solid preparations
No 22,000.00 22,000.00 1,344.92 17,312.06 78.69 November 2021 11,786.06 Yes No Textile workshop construction project
Subtotal of committed investment projects 50,000.00 49,504.00 3,471.92 35,658.00
Investment direction of super-raised funds
Return bank loan (if any) Not applicable
Supplement working capital (if any) Not applicable
Subtotal of investment of excess raised funds
Total 50,000.00 49,504.00 3,471.92 35,658.00
Failure to achieve planned progress or expected benefits
For details, please refer to Report 3 (9) 3
Situations and reasons (divided into specific projects)
Major changes in project feasibility
There has been no significant change in project feasibility
Situation description
The amount, purpose and use of excess raised funds
Not applicable
Use progress
Implementation location of investment projects with raised funds
The project implementation location has not changed
Changes
Implementation method of investment projects with raised funds Project implementation method has not been adjusted
Adjustment
Advance investment of raised funds in investment projects
No occurrences or replacements in this period
Use idle raised funds to temporarily supplement the flow
For details, please refer to the third (fourth) liquidity situation of this report.
Use idle raised funds for cash management
Not applicable
There is a balance of raised funds during project implementation
Inapplicable amounts and reasons
The purpose of unused raised funds and
For details, please see the destination of Part 3 (8) of this report.
Existence in the use and disclosure of raised funds
For details, please refer to the issues or other situations in Section 3 (9) of this report.