Announcement of Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. on the cancellation of treasury shares in the company’s special securities account for repurchase
Securities code: 603567 Securities abbreviation: Zhenbaodao Announcement number: Lin 2026-016 Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.
Announcement on Cancellation of Treasury Stocks in the Company’s Special Securities Account for Repurchase
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.
Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") held the 30th meeting of the fifth board of directors on March 10, 2026, and reviewed and approved the "Proposal on Cancellation of the Company's Repurchase of Treasury Stocks in the Special Securities Account". According to the "Company Law of the People's Republic of China", "Listed Company Share Repurchase Rules", "Shanghai Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 7 - Repurchase of Shares" and other relevant regulations, it is planned to cancel 137,232 treasury shares in the special securities account for repurchase. The above proposals still need to be submitted to the company's shareholders' meeting for review. The relevant matters are now announced as follows:
1. Overview of the company’s share repurchases
On June 9, 2022, the company held the 20th meeting of the fourth board of directors, reviewed and approved the "Proposal on the Plan to Repurchase the Company's Shares through Centralized Bidding Transactions", and agreed that the shares repurchased this time are intended to be used for equity incentive plans or employee stock ownership plans. If the repurchased shares cannot be used for the above purposes within 3 years after the announcement of the repurchase results and share changes, the unused repurchased shares will be canceled in accordance with relevant laws and regulations. For details, please refer to the "Announcement of Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. on the Plan to Repurchase the Company's Shares through Centralized Bidding Transactions" disclosed by the company on the Shanghai Stock Exchange (www.sse.com.cn) on June 10, 2022 (announcement number: Lin 2022-043).
As of May 10, 2023, the company has completed this repurchase and has repurchased a total of 2,560,300 company shares through centralized bidding transactions. For details, please refer to the "Announcement of Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. on the Implementation Results of Share Repurchases and Changes in Shares" disclosed by the company on the Shanghai Stock Exchange (www.sse.com.cn) on May 11, 2023 (announcement number: Lin 2023-037).
2. Usage of repurchased shares
The company completed the grant registration for the company's 2023 restricted stock incentive plan (hereinafter referred to as the "Incentive Plan") on July 20, 2023. The actual number of shares granted was 2,423,068 shares, and 137,232 shares to be granted were not granted because some incentive targets gave up their subscription. For details, please refer to the "Announcement of Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. on Granting Restricted Stocks to Incentive Objects" (announcement number: Lin 2023-063) and "Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. on 2023" disclosed by the company on the Shanghai Stock Exchange (www.sse.com.cn) on July 4, 2023 and July 22, 2023. Announcement on the Grant Results of the Annual Restricted Stock Incentive Plan (Announcement Number: Pro 2023-067).
As of the disclosure date of this announcement, the company's special repurchase account has 137,232 company shares remaining.
3. Reasons and quantity of treasury shares canceled this time
According to the "Company Law of the People's Republic of China", "Share Repurchase Rules for Listed Companies" and "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 7 - Repurchase of Shares" and other relevant laws and regulations, treasury shares in the special securities account for stock repurchase shall be transferred within three years in accordance with the purpose disclosed in accordance with the law. If the transfer is not carried out in accordance with the disclosed purpose, it shall be canceled before the expiration of the period. The retention period of 137,232 treasury shares in the company's special securities account for repurchase will expire on May 10, 2026. According to the actual situation of the company, and based on the above reasons, the company plans to cancel 137,232 treasury shares in the special securities account for repurchase, reduce the company's registered capital accordingly, and request the shareholders' meeting to authorize the company's management to handle the procedures related to the cancellation of the shares.
4. Equity situation after completion of this cancellation
After the cancellation of treasury shares is completed, the company's total share capital will be reduced from 940,996,515 shares to 940,859,283 shares. The company's share capital structure will change as follows:
Before this change, the quantity of this change, after this change
Nature of shares Number of shares in total share capital Number of shares in total share capital (shares) Number of shares (shares)
Ratio (share) Ratio
There is a limited sale clause
1,455,991 0.15% 0 1,455,991 0.15% outstanding shares
Unlimited sales
939,540,524 99.85% -137,232 939,403,292 99.85% of outstanding shares
Total 940,996,515 100.00% -137,232 940,859,283 100.00%
The actual changes in the share capital structure after the cancellation is completed shall be subject to the share structure table issued by the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. at that time.
5. The impact of this cancellation of shares on the company
The cancellation of treasury shares complies with relevant regulations such as the "Company Law of the People's Republic of China", "Listed Company Share Repurchase Rules", "Shanghai Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 7 - Repurchase of Shares" and other relevant regulations. There will be no harm to the interests of the company and all shareholders. It will not have a significant adverse impact on the company's operations, finance, research and development, debt performance capabilities, and future development. It will not cause a change in the company's control, nor will it change the company's listing status. The company's equity distribution still meets the conditions for a listed company.
Announcement is hereby made.
Board of Directors of Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.
March 11, 2026