Ningbo Menohua Pharmaceutical Co., Ltd.’s progress announcement on the use of idle raised funds for cash management
Securities code: 603538 Securities abbreviation: Minova Announcement number: 2026-021 Convertible bond code: 113618 Convertible bond abbreviation: Minova convertible bonds
Ningbo Menohua Pharmaceutical Co., Ltd.
Announcement on the progress of using idle raised 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:
The specific situation of using idle raised funds for cash management this time is as follows:
Order Product Product Amount Fulfilled
Trustee product name
No. Type Term (10,000 yuan) The review process has been completed at the company’s fifth session of directors in 2026 held on April 17, 2025.
Notice of the 13th meeting of the Board of Directors to 1 China Merchants Bank China Merchants Bank Suixin deposit notice deposit April 15 700
Deposit and expiration date of May 8, 2025
The total amount reviewed and approved at the 2024 Annual Shareholders Meeting - - - 700 -
Special risk warning: Notice deposits are subject to the risk of accruing interest on a current basis due to failure to operate as agreed, and are affected by interest rate fluctuations, liquidity arrangements, policies and operational factors, and there is uncertainty in returns. The company will strictly manage it to ensure the safety of funds.
1. Overview of this cash management
(1) Purpose of this cash management
In order to further improve the efficiency of the use of raised funds, Zhejiang Minohua Pharmaceutical Chemistry Co., Ltd. (hereinafter referred to as "Zhejiang Minohua"), a holding subsidiary of Ningbo Minohua Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company"), used idle raised funds for cash management on March 17, 2026. The use of idle raised funds for cash management will not affect the development of the company's main business, and the company's fund use arrangements are scientific and reasonable.
(2) Amount of cash management this time
The total amount of idle raised funds used for cash management this time is 7 million yuan.
(3) Source of funds
Source of funds: funds raised from idle convertible bonds
Basic information on funds raised through convertible bonds
Approved by the China Securities Regulatory Commission's "Reply on Approving the Public Issuance of Convertible Corporate Bonds by Ningbo Menohua Pharmaceutical Co., Ltd." (CSRC License [2020] No. 2377), the company publicly issued 5.2 million convertible corporate bonds to the public, each with a face value of 100 yuan, with a total issuance of RMB 520,000,000.00, deducting issuance expenses (excluding tax) 7,302,370.33 Yuan, and the net amount of funds raised was RMB 512,697,629.67. All the raised funds were received on January 20, 2021. Shun Li Xin Accounting Firm (Special General Partnership) verified the arrival of the above raised funds and issued a "Capital Verification Report" (Xin Huishi Bao Zi [2021] No. ZF10028). The company has carried out special account storage management for the above-mentioned raised funds.
- Impact on fundraising projects
The company's use of idle raised funds for cash management this time will help further improve the efficiency of the use of raised funds. This cash management will not affect the implementation progress of the raised investment projects.
(4) Basic situation of this cash management
- This cash management method
(1) Zhejiang Menohua used idle convertible bonds to raise 7 million yuan on March 17, 2026 to purchase "China Merchants Bank Suixin Deposit Notice Deposit". The details are as follows:
Product Product Revenue Structure Amount Trustee Name
Type Name Type Arrangement (10,000 yuan)
China Merchants Bank Notice Deposit China Merchants Bank Suixin Notice Deposit Fixed Interest Rate None 700
Estimated revenue
Whether it is related to the estimated annualized yield, product term, interest date, maturity date
Transaction amount (10,000 yuan)
0.75% - - 2026-3-17 2026-4-15 No
- Main terms of the contract
China Merchants Bank Xixin Deposit Notice
Product Name China Merchants Bank Suixin Deposit Notice
Annualized interest rate to maturity is 0.75%
Interest calculation type fixed interest rate
Payment method: One-time repayment of principal and interest upon maturity
Transfer No transfer allowed
The call deposits purchased this time using idle raised funds for cash management are deposit-type products and do not involve capital investment.
The investment products purchased this time using the raised funds for cash management are fixed-rate bank call deposits, which meet the requirements for use with high security and good liquidity. The company has not changed the use of raised funds in any disguised manner. The use of raised funds for cash management will not affect the normal progress of the raised investment projects and will not harm the interests of shareholders.
2. Review procedure
The company held the 2024 Annual General Meeting of Shareholders on May 8, 2025, and reviewed and approved the "Proposal on the Use of Idle Raised Funds for Cash Management": It was agreed that without affecting the construction of investment projects with raised funds and the use of raised funds, the company (including subsidiaries) will use a maximum single-day balance of no more than RMB 13,000. Ten thousand yuan of idle raised funds will be used for cash management, and investment products with good liquidity and capital preservation will be purchased at an appropriate time and in stages. Within the authorization period, the above quota can be used on a rolling basis and will be implemented by the company's financial department. The authorization period is within 12 months from the date of review and approval by the company's general meeting of shareholders. The company's board of supervisors and sponsors have respectively issued clear consent opinions on this matter. For details, please refer to the "Announcement on the Use of Idle Raised Funds for Cash Management" (Announcement No.: 2025-043) and the "Announcement on the Resolution of the 2024 Annual General Meeting of Shareholders" (Announcement No.: 2025-057) disclosed by the company on the Shanghai Stock Exchange website and designated media on April 18, 2025, and May 9, 2025 respectively.
3. Risk analysis and risk control measures
(1) Risk analysis
The above-mentioned notice deposits purchased by the company are fixed-rate investment products and are low-risk investment products. The company's management has conducted a strict pre-assessment of its investment risks, and the evaluation complies with the company's internal fund management requirements. The product issuer has provided a capital guarantee commitment, and the usage limit does not exceed the scope authorized by the shareholders' meeting. This cash management complies with internal control requirements. However, the financial market is greatly affected by macroeconomic, fiscal and monetary policies, and it cannot be ruled out that this investment may be affected by market fluctuations, changes in macroeconomic policies, etc.
(2) In response to investment risks, the measures taken by the company include:
When using idle raised funds to invest in products, the company's management needs to evaluate the investment risks in advance, and the product issuer needs to provide a capital guarantee commitment. The company's operating management will track the investment direction of products invested with idle raised funds, project progress, etc. If any risk factors that may affect the security of funds are discovered, corresponding preservation measures will be taken in a timely manner to control security risks.
The company's financial department will promptly analyze and track product investment directions and project progress. If any adverse factors are discovered or judged, corresponding measures will be taken in a timely manner to strictly control investment risks.
The company’s independent directors have the right to supervise and inspect the use of the above-mentioned idle raised funds, and can hire professional institutions to conduct audits when necessary.
4. Impact on the company
The company's use of idle raised funds for cash management is conducive to increasing the cash management income of idle raised funds, and will not affect the construction of raised funds projects and the use of raised funds. It is in the interests of the company and all shareholders, and does not harm the interests of the company and all shareholders, especially small and medium-sized shareholders. The company's cash management will not have a significant impact on the company's future main business, financial status, operating results and cash flow.
According to the provisions of the Accounting Standards for Business Enterprises, the financial products purchased by the company this time are presented as "trading financial assets" on the balance sheet, and the income is included in investment income.
Announcement is hereby made.
Board of Directors of Ningbo Menohua Pharmaceutical Co., Ltd.
March 18, 2026