Announcement on the adjustment of investment scale, closing of some fundraising projects and the permanent replenishment of working capital with the remaining raised funds
Securities code: 603235 Securities abbreviation: Tianxin Pharmaceutical Announcement number: 2026-006
Jiangxi Tianxin Pharmaceutical Co., Ltd.
Regarding the adjustment of investment scale, closing of some fundraising projects and raising the remaining funds
Announcement on raising funds to permanently replenish working capital
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:
The fundraising project that plans to adjust the investment scale and close this time: Jiangxi Tianxin Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") plans to adjust the investment scale and project production capacity of the fundraising project "66,770 tons of fine chemicals project with annual output", keep the planned use of raised funds unchanged, and change the project name to "66,770 tons of fine chemicals project with annual output phase I". The project has reached the intended usable state, the raised funds have been used up, and the company plans to close the above-mentioned project.
The investment projects that are planned to be closed this time and the remaining raised funds will permanently replenish working capital: "Annual production of 350 tons of cholesterol, 6 tons of 25-hydroxyvitamin D3 project" and "Enterprise Research Institute Project" have reached the scheduled usable status, and the company plans to close the above-mentioned projects. As of March 31, 2026, the total balance of the surplus raised funds for the above projects was 37.2503 million yuan (including interest income minus the net amount of bank fees, the actual amount is based on the balance of the special raised funds account on the day when the funds are transferred out). The company plans to use the above-mentioned surplus raised funds to permanently supplement working capital.
The above matters have been reviewed and approved at the 14th meeting of the company’s third board of directors and still need to be submitted to the company’s 2025 annual shareholders’ meeting for review.
On April 23, 2026, the company held the 14th meeting of the third board of directors, which reviewed and approved the "Proposal on Adjusting the Investment Scale, Closing Projects and Permanently Replenishing Liquidity with Surplus Raised Funds for Some Raised Investment Projects". The relevant matters are now announced as follows:
1. Basic situation of raised funds
Issue Name 2022 Initial Public Offering of Shares
Total raised funds 1,614.6064 million yuan Net raised funds 1,517.2331 million yuan Time of arrival of raised funds July 7, 2022
As of March 31, 2026, the company's use of funds raised from the initial public offering of stocks is as follows: Unit: 10,000 yuan Currency: RMB Actual funds raised
Raised funds commitment
Serial number Item Usage amount Whether to pay the promised usage amount
(unaudited)
Annual production of 1,000 tons of vitamin A items
1 43,129.15 37,285.32 No
The first phase of the project
Annual production of 3,000 tons of vitamin B5
2 16,002.13 16,231.24 Closed projects
Annual output of 350 tons of cholesterol, 6 tons
3 7,705.48 6,438.13 The completion of this 25-hydroxyvitamin D3 project
4 Smart factory project 1,000.00 1,002.23 Completed project 5 Enterprise research institute project 12,886.55 11,087.72 Project closed this time 6 Supplementary working capital 40,000.00 40,229.60 Completed annual output of 66,770 tons of fine chemicals
7 31,000.00 31,017.56 This final project
Total 151,723.31 143,291.80 /
Note: 1. The actual amount of funds raised for some projects is greater than the committed investment amount, mainly due to the income obtained by the company from cash management of part of the temporarily idle raised funds.
- The remaining difference in the total amount is due to rounding when converting to RMB 10,000.
2. Adjustment of investment scale and settlement of this fundraising project
(1) Specific circumstances of project scale adjustment and closing
The implementation entity of the "66,770 tons annual fine chemicals project" is the company's wholly-owned subsidiary Ningxia Xiaxin Pharmaceutical Co., Ltd. (hereinafter referred to as "Ningxia Xiaxin"). The original planned total investment is 500 million yuan, of which 310 million yuan will be raised from the initial public offering of stocks, and the remaining part will be raised by the company itself. After the completion of the project, it is expected to have an annual production capacity of 26,000 tons of ABL (α-acetyl-γ-butyrolactone), 30,000 tons of solid sodium methoxide, 10,000 tons of liquid sodium methoxide (on a dry basis, a total of 33,000 tons of sodium methoxide), and 770 tons of hydrogen. It will help the company vertically expand the upstream of the vitamin industry chain, ensure the supply of raw materials for existing vitamin products, further expand the production and sales scale of the fine chemical business, and enhance the market competitiveness in related product fields.
As of March 31, 2026, the company has completed the investment and construction of the first phase of the "66,770 tons annual fine chemicals project", forming an annual production capacity of 13,000 tons of ABL, 9,000 tons of solid sodium methoxide, 80,000 tons of liquid sodium methoxide (on a dry basis, a total of 33,000 tons of sodium methoxide), and 770 tons of hydrogen. The investment amount of the project is 358.8241 million yuan, of which 310.1756 million yuan (including interest) is raised funds, and the rest is the company's own funds; the investment progress of raised funds for this project has reached 100%. Investment and construction of the remaining second-phase production capacity has not yet begun.
Taking into account the market environment, business planning and fund utilization efficiency of the raised investment project, the company plans to adjust the investment scale of the raised investment project. The production capacity scale will be adjusted to the first-phase production capacity, with a total investment of 358.8241 million yuan, of which 310.000 million yuan of raised funds (excluding interest) will remain unchanged, and the rest will be the company's own funds. After this adjustment, the name of the investment project was accordingly changed to "Phase I of Fine Chemicals Project with an annual output of 66,770 tons".
Considering that the project has been completed and has reached the intended usable state, and the raised funds have been used up, the company plans to close the project.
Unit: RMB 10,000 Currency: RMB Raised Fund Commitment Project Name Total Investment
Amount of investment
Annual output of 66,770 tons of fine chemicals
50,000.00 31,000.00 items before this change
Annual output of 66,770 tons of fine chemicals
After this change 35,882.41 31,000.00 Phase I of the project
(2) Specific reasons for adjusting the investment scale of the project
ABL and sodium methoxide are important intermediates for the company's existing vitamin products. The project construction will help the company ensure the supply of core raw materials, reduce raw material procurement costs, and further enhance the company's market competitiveness in the vitamin field. At the same time, on the basis of meeting the company's own production facilities, the excess production capacity of ABL and sodium methoxide will be sold externally, driving the expansion of the company's fine chemicals segment's sales scale.
In light of changes in the market situation, the company plans to optimize and adjust the production capacity scale and product structure of the investment project. The specific reasons are as follows:
Reduce the scale of ABL production capacity. The company plans to adjust the ABL production capacity in the first phase of the project from 26,000 tons/year to 13,000 tons/year. Since 2023, ABL's market supply pattern has undergone major changes. The concentrated deployment of new domestic production capacity has led to a significant increase in industry supply pressure. Market competition has become increasingly fierce, product prices have continued to fall, and the overall profitability of the industry has declined significantly. Based on the prudent judgment of the market supply and demand pattern, the company has reduced the scale of ABL construction in the first phase of the project to further optimize resource allocation, improve fund utilization efficiency, and ensure the overall income level and return on investment of the project.
Optimize the production capacity structure of sodium methoxide. The company plans to keep its sodium methoxide production capacity at 33,000 tons per year (dry basis) unchanged, and adjust the production capacity structure from "30,000 tons of solid sodium methoxide and 10,000 tons of liquid sodium methoxide" to "9,000 tons of solid sodium methoxide and 80,000 tons of liquid sodium methoxide." The company's production capacity structure adjustment is mainly to optimize the product structure, match customer needs, consolidate and expand the company's market share in the core application field of sodium methoxide, and enhance the market adaptability and competitiveness of the product.
3. Completion of this fundraising project and savings of raised funds
(1) The specific situation of project completion and permanent replenishment of surplus raised funds
- Annual production of 350 tons of cholesterol and 6 tons of 25-hydroxyvitamin D3 project
Project completion name Annual production of 350 tons of cholesterol and 6 tons of 25-hydroxyvitamin D3 project completion date March 31, 2026
Amount of pledged use of raised funds RMB 77.0548 million Actual amount of raised funds Amount of surplus raised funds of RMB 64.3813 million Use of surplus raised funds of RMB 14.4601 million and
Supplementary flow, 14.4601 million yuan
Corresponding amount
- Enterprise Research Institute Project
Project name Enterprise Research Institute Project
Closing date: March 31, 2026
Amount of pledged use of raised funds: RMB 128,865,500 Actual amount of raised funds: RMB 110,877,200 Amount of surplus raised funds Use of surplus raised funds of RMB 22,790,100 and
Supplementary flow, 22.7901 million yuan
Corresponding amount
Note: The amount of remaining raised funds is estimated as of March 31, 2026, including interest income minus net bank fees. The actual balance is based on the amount on the day when the funds are transferred out.
(2) Reasons for savings in raised funds
During the implementation of the raised investment project, the company strictly abides by the relevant regulations on the use of raised funds, adheres to the principle of prudence and efficiency, and implements refined control over project costs and expenses while ensuring the quality and progress of project construction. At the same time, relying on the company's mature engineering implementation experience, the company continues to optimize the construction plan, improve project investment efficiency, and form savings in raised funds. At the same time, in order to improve the efficiency of the use of raised funds, the company uses part of the idle raised funds for cash management and obtains corresponding investment income on the basis of ensuring the smooth progress of the investment projects and the safety of the raised funds. As of March 31, 2026, the “annual output of 350 tons of cholesterol and 6 tons of 25-hydroxyvitamin D3 project” and the “enterprise research institute project” have reached the scheduled state of use.
(3) Usage plan of surplus raised funds
In view that the aforementioned investment project has been implemented and has reached the scheduled usable status, in order to improve the efficiency of the use of raised funds, the company plans to use the remaining 37.2503 million yuan of raised funds from the aforementioned investment project (including interest income minus the net amount of bank fees, the actual amount is based on the balance of the special account of the raised funds on the day when the funds are transferred out) to permanently supplement working capital for the company's daily production operations and business development. After the implementation of this permanent replenishment of working capital, unpaid contract balances and other payments for related projects will be paid with the company's own funds when the payment conditions are met.
4. The impact of adjustments to this fundraising project on the company
The company's prudent decision to adjust the investment scale, close the projects and permanently replenish working capital with the remaining raised funds for some of the raised investment projects is based on changes in the market environment and business development planning, which will help the company improve the efficiency of fund use and meet business development needs. This adjustment of the fundraising project complies with the relevant regulations of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the management of funds raised by listed companies. There will be no harm to the interests of the listed company and all shareholders, it will not have an adverse impact on the company's production and operations, and it is in line with the requirements of the company's long-term development plan.
5. Applicable review procedures and sponsor’s opinions
(1) Review status of the board of directors
The company held the 14th meeting of the third session of the Board of Directors on April 23, 2026, and reviewed and approved the "Proposal on Adjusting the Investment Scale, Closing Projects, and Using Surplus Raised Funds to Permanently Supplement Working Capital for Some Raised Investment Projects" with a vote of 9 in favor, 0 against, and 0 abstentions. Taking into account the market environment, business planning, and fund utilization efficiency of the raised investment projects, it was agreed to adjust the investment scale, close out the projects, and permanently replenish working capital with the remaining raised funds for some of the raised investment projects. This proposal still needs to be submitted to the company's 2025 annual shareholders' meeting for review.
(2) Verification opinions of the sponsor
After verification, the sponsor CITIC Securities Co., Ltd. believes that the adjustment of investment scale, settlement of projects, and permanent replenishment of working capital with the remaining raised funds for the company's initial public offering of shares have been reviewed and approved by the board of directors and still need to be submitted to the company's shareholders' meeting for review. Adjusting the investment scale and closing some of the raised funds this time and using the remaining raised funds to permanently replenish working capital is a prudent decision made by the company based on changes in the market environment and business development planning, which will help improve the efficiency of fund use and meet business development needs.
In summary, the sponsor has no objection to the adjustment of investment scale, closing of some of the company's investment projects and the permanent replenishment of working capital with the remaining raised funds.
Announcement is hereby made.
Board of Directors of Jiangxi Tianxin Pharmaceutical Co., Ltd.
April 24, 2026