Announcement of Beijing Fuyuan Pharmaceutical Co., Ltd. on the use of idle self-owned funds for cash management
Securities code: 601089 Securities abbreviation: Fuyuan Pharmaceutical Announcement number: Lin 2026-021 Beijing Fuyuan Pharmaceutical Co., Ltd.
Announcement on using idle self-owned funds for cash management
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
Important content reminder:
Basic situation
Investment amount 1.8 billion yuan
Investment types: Low-risk financial products with high security and good liquidity
Source of funds Own funds
Review procedures performed and planned to be performed
Beijing Fuyuan Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the fifth meeting of the third board of directors on April 10, 2026, and reviewed and approved the "Proposal on the Use of Idle Own Funds for Cash Management".
Special risk warning
The financial products that the company and its holding subsidiaries intend to purchase using idle self-owned funds are low-risk financial products with high security and good liquidity. However, the financial market is greatly affected by the macroeconomy. It cannot be ruled out that the investment will be affected by market fluctuation risks, interest rate risks, liquidity risks, policy risks, information transmission risks, force majeure risks and other risks. The rate of return will fluctuate and the financial management income will be uncertain. Investors are kindly requested to make prudent decisions and pay attention to preventing investment risks.
1. Overview of investment situation
(1) Investment purpose
In order to improve the efficiency of the company's use of idle self-owned funds and rationally utilize idle self-owned funds, without affecting the company's normal operations, the company and its holding subsidiaries plan to use part of the idle self-owned funds for cash management to seek more investment returns for the company and shareholders.
(2) Investment amount
The company and its holding subsidiaries plan to use no more than RMB 1.8 billion of idle self-owned funds for cash management. Within the above quota, funds can be used on a rolling basis, and the transaction amount at any point in time during the period (including the amount related to reinvestment of the aforementioned investment income) will not exceed the above quota.
(3) Source of funds
The source of funds for cash management of the company and its holding subsidiaries this time is temporarily idle self-owned funds.
(4) Investment methods
The company and its holding subsidiaries will strictly control risks in accordance with relevant regulations, and use idle self-owned funds to invest in low-risk financial products with high security and liquidity.
(5) Investment period
It is valid for 12 months from the date of approval by the company's board of directors. During the above period, the funds can be used on a rolling basis. After this cash management quota and authorization take effect, it will cover the cash management quota and authorization of the company's own funds reviewed and approved at the 2024 annual shareholders meeting.
2. Review procedure
On April 10, 2026, the fifth meeting of the company's third board of directors reviewed and approved the "Proposal on the Use of Idle Own Funds for Cash Management", agreeing that the company and its holding subsidiaries will use temporarily idle own funds with a maximum limit of no more than 1.8 billion yuan for cash management. Within the above limit and period, the funds can be used on a rolling basis.
3. Investment risk analysis and risk control measures
(1) Investment risks
The financial products that the company and its holding subsidiaries intend to purchase using idle self-owned funds are low-risk financial products with high security and good liquidity. However, the financial market is greatly affected by the macroeconomy. It cannot be ruled out that the investment will be affected by market fluctuation risks, interest rate risks, liquidity risks, policy risks, information transmission risks, force majeure risks and other risks. The rate of return will fluctuate and the financial management income will be uncertain.
(2) Risk control measures
The company and its holding subsidiaries will strictly abide by the principle of prudent investment. The specific implementation department and relevant personnel will establish a ledger and track the progress of financial management in a timely manner. If there are risk factors that may affect the company's capital security, corresponding measures will be taken in a timely manner to control investment risks.
The independent directors and the audit committee have the right to supervise and inspect the use of funds, and can hire professional institutions to conduct audits when necessary.
The company will strictly comply with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange and promptly perform its information disclosure obligations.
4. Impact of investment on the company
On the premise of ensuring daily operations and capital security, the company and its holding subsidiaries plan to use part of its idle self-owned funds for cash management, which will not affect the company's normal daily capital turnover needs and will not affect the development of the company's main business. Proper and timely cash management of temporarily idle self-owned funds can help improve the efficiency of the use of self-owned funds, obtain certain investment returns, and reduce financial expenses, which is in the interests of the company and all shareholders.
The company's cash management products will be accounted for in accordance with relevant regulations such as "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments" and other relevant regulations, which may affect the "trading financial assets", "monetary funds" and other items in the balance sheet, and the "financial expenses", "investment income" and other items in the income statement. The final accounting treatment confirmed by the accounting firm shall prevail.
Announcement is hereby made.
Board of Directors of Beijing Fuyuan Pharmaceutical Co., Ltd.
April 14, 2026