Special Report on the Deposit, Management and Actual Use of Raised Funds for the First Half of 2026
Securities code: 603976 Securities abbreviation: Zhengchuan Shares Announcement number: 2026-052
Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd.
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.
According to the "Regulations on the Supervision of Funds Raised by Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations (Revised in April 2026)" (Shanghai Securities Regulatory Commission [2026] 44 No.) and other relevant laws and regulations, Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd. (hereinafter referred to as the "Company" or "Zhengchuan Shares") made a special report on the storage, management and actual use of funds raised in the first half of 2026 as follows:
1. Basic situation of raised funds
(1) Actual amount of funds raised and time of fund arrival
According to the China Securities Regulatory Commission’s “Reply on Approving the Public Issuance of Convertible Corporate Bonds by Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd.” (CSRC Permit [2021] No. 198), the company used the balance underwriting method as the lead underwriter, Shenwan Hongyuan Securities Underwriting and Sponsoring Co., Ltd., to publicly issue 4,050,000 convertible corporate bonds to the public, with a face value of RMB 100.00 each. Yuan, issued at face value, raised a total of 405.00 million yuan. After deducting underwriting and recommendation fees of 4.5283 million yuan, the raised funds were 400.4717 million yuan. The funds have been remitted to the company's raised funds supervision account by the lead underwriter Shenwan Hongyuan Securities Underwriting and Sponsoring Co., Ltd. on May 7, 2021. After deducting additional external costs of RMB 1.3108 million directly related to the issuance of convertible corporate bonds such as legal fees, capital verification fees, credit rating fees and issuance fees, and prepaid underwriting and sponsorship fees of RMB 1.1321 million, the company's net raised funds this time was RMB 398.0288 million. The above-mentioned receipt of funds raised has been verified by Tianjian Certified Public Accountants (Special General Partnership), which issued a "Verification Report" (Tianjianyan [2021] No. 8-10).
(2) Use and balance of raised funds
As of June 30, 2026, the company’s use and balance of raised funds are as follows:
Amount unit: RMB 10,000 Issuance name Public issuance of convertible corporate bonds in 2021
Time for receipt of raised funds: May 7, 2021
This reporting period is from January 1, 2026 to June 30, 2026
Project amount
- The total amount of funds raised is 40,500.00, including: the amount of excess funds raised
Less: Direct payment of issuance expenses 697.12
- Net raised funds 39,802.88 minus:
Amount used in previous years 39,481.10 Amount used this year 57.57 Amount of surplus raised funds to permanently replenish working capital 1,466.29 Add:
Interest income from raised funds 1,202.08
- Balance of raised funds at the end of the reporting period 0.00
Note: As of June 30, 2026, the company's investment projects with funds raised from the public issuance of convertible corporate bonds in 2021 have been fully completed, and the unused amount is 1,466.29 yuan (the net amount after deducting bank fees from interest income) It has been used to permanently replenish working capital. The special account for raised funds actually has a balance of 0.00 yuan, and the cancellation procedures for the special account for raised funds have been completed. For details, please see the company’s announcement on the Shanghai Stock Exchange website (www.sse.co) on June 5, 2026. m.cn) and the "Announcement on the Completion of Investment Projects Raised by the Public Issuance of Convertible Corporate Bonds and the Surplus Raised Funds to Permanently Replenish Liquidity" (Announcement Number: 2026-027) disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media, as well as the "Announcement on the Completion of Cancellation of the Special Account for Raised Funds" (Announcement Number: 2026-029) disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on June 11, 2026.
2. Management of raised funds
(1) Management of raised funds
In order to standardize the management and use of raised funds, improve the efficiency and effectiveness of fund use, and protect the rights and interests of investors, the company complies with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Supervisory Rules for Funds Raised by Listed Companies (China Securities Regulatory Commission Announcement [2025] No. 10) and the Self-Discipline Supervision of Listed Companies of the Shanghai Stock Exchange. In accordance with the provisions of relevant laws, regulations and normative documents such as Management Guideline No. 1 - Standardized Operation (Revised in April 2026) (Shanghai Securities Fa [2026] No. 44), and based on the actual situation of the company, the "Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd. Fund Raising Management Measures" (hereinafter referred to as the "Management Measures") were formulated. According to the "Administrative Measures", the company deposits the raised funds in a special account and sets up a special account for raised funds in the bank. The company and the raised funds investment project (hereinafter referred to as the "raised investment project") are implemented by Chongqing Zhengchuan Yongcheng Pharmaceutical Materials Co., Ltd. (hereinafter referred to as the "zhengchuan investment project"). Chuan Yongcheng") and together with the sponsor Shenwan Hongyuan Securities Underwriting and Sponsor Co., Ltd. signed a "Tripartite Supervision Agreement on Raised Funds" with the Beibei Branch of Bank of Chongqing Co., Ltd. on May 17, 2021, clarifying the rights and obligations of all parties. There are no major differences between the three-party supervision agreement and the Shanghai Stock Exchange’s three-party supervision agreement template, and the company has strictly complied with it when using the raised funds.
(2) Storage of raised funds
As of June 30, 2026, the company's deposit status of raised funds is as follows:
Amount unit: RMB Issuance name Public issuance of convertible corporate bonds in 2021
Time for receipt of raised funds: May 7, 2021
Account name Opening bank Bank account number Closing balance Account status
Bank of Chongqing Co., Ltd.
Zhengchuan Co., Ltd. 390102029001211691 0.00 Beibei Branch of the Company has been canceled
Bank of Chongqing Co., Ltd.
Zhengchuan Yongcheng 390102029001211687 0.00 Beibei Branch of the Company has been canceled
Bank of Chongqing Co., Ltd.
Zhengchuan Yongcheng 390102029001211704 0.00 Beibei Branch of the Company has been canceled
Bank of Chongqing Co., Ltd.
Zhengchuan Yongcheng 390102029008906054 0.00 Beibei Branch of the Company has been canceled
As of June 30, 2026, the company's investment projects with funds raised from the public issuance of convertible corporate bonds in 2021 have been fully completed, and all special accounts for raised funds have been cancelled. The "Tripartite Supervision Agreement on Raised Funds" signed by the company and Zhengchuan Yongcheng together with the sponsor Shenwan Hongyuan Securities Underwriting and Sponsoring Co., Ltd. and the Beibei Branch of Bank of Chongqing Co., Ltd. was terminated accordingly.
3. Actual use of funds raised this year
(1) Usage of funds for raised investment projects
The company invested RMB 575,700 in raised capital projects from January 1, 2026 to June 30, 2026. As of June 30, 2026, the cumulative amount invested in raised capital projects was RMB 395,386,700. For details, please see the attached "Comparison of the Use of Raised Funds".
(2) Advance investment and replacement of raised funds
On June 23, 2021, the 15th meeting of the company's third board of directors and the 13th meeting of the third board of supervisors reviewed and approved the "Proposal on Using Raised Funds to Replace Pre-invested Self-raised Funds", agreeing that the company will use raised funds to replace 47.8696 million yuan of self-raised funds that have been invested in pre-invested projects, including 45.6543 million yuan for the borosilicate medicinal glass production project and 2.2153 million yuan for the borosilicate medicinal glass and drug compatibility research project. The independent directors and the board of supervisors issued opinions clearly agreeing with this matter. The sponsor agency Shenwan Hongyuan Securities Underwriting and Recommendation Co., Ltd. issued a verification opinion agreeing with this matter. Tianjian Accounting Firm (Special General Partnership) conducted a special verification on the company’s pre-investment of raised capital investment projects with self-raised funds, and issued Tianjian Shen [2021] No. 8-265 “Assurance Report on Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd.’s pre-investment of self-raised funds in raised investment projects”.
(3) Temporarily supplementing working capital with idle raised funds
During the reporting period, the company did not use idle raised funds to temporarily replenish working capital.
(4) Cash management of idle raised funds and investment in related products
On June 4, 2025, the company held the 22nd meeting of the fourth board of directors and the 15th meeting of the fourth board of supervisors, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds for Cash Management", agreeing that the company and its subsidiaries will use idle raised funds with a limit of no more than RMB 15 million for cash management, and the purchase period of products shall not exceed 12 Capital-guaranteed products with high monthly security, good liquidity, and low risk, including but not limited to call deposits, structured deposits, certificates of deposit, bank financial products, etc. The above quotas can be used on a rolling basis within 12 months from the date of approval by the board of directors. As of June 30, 2026, the company's balance of using idle raised funds for cash management was RMB 0.0 million.
Raised funds cash management review status table
Amount unit: RMB 10,000 Issuance name Public issuance of convertible corporate bonds in 2021
Time for receipt of raised funds: May 7, 2021
Plan now
Method of planning cash management Funds approved by the board of directors Plan start date Plan end date
formula date amount
The purchase period of the product does not exceed 12
High security and liquidity per month
A good, low-risk capital-preserving product that does not exceed the people’s standards
Yen 15 million Products, including but not limited to notices June 4, 2025 June 3, 2026 June 4, 2025 Deposits, structured deposits, large
Certificates of deposit, bank financial products
Wait
Cash management details of raised funds
Amount unit: RMB 10,000
Issue name 2021 public issuance of convertible corporate bonds
Time for receipt of raised funds: May 7, 2021
annualized income
Entrusted Entrusted Product Product Purchase Start End Return Not yet returned Interest
rate of return
Party Bank Name Type Amount Date Date Date Amount Amount (%)
seven days seven days
Zhengchuan Bank of Chongqing
Notice Notice 1,400.00 2024-8-15 Not applicable 2026-6-3 0.00 1.55 39.60 shares Beibei Branch
Deposit Deposit
(5) Use of excess raised funds to permanently supplement working capital or return bank loans
During the reporting period, the company did not use excess raised funds to permanently replenish working capital or repay bank loans.
(6) The excess raised funds are used for projects under construction and new projects (including acquisition of assets, etc.) or the repurchase and cancellation of company shares
During the reporting period, the company did not use excess raised funds for projects under construction or new projects (including acquisition of assets, etc.) or to repurchase and cancel the company's shares.
(7) Usage of surplus raised funds
June 4, 2026 The fourth meeting of the fifth session of the board of directors of the company reviewed and approved the "Proposal on Closing the Investment Project Raised by the Public Issuance of Convertible Corporate Bonds and Using the Surplus Raised Funds to Permanently Replenish Current Capital", and agreed to close the "Medium Borosilicate Medicinal Glass and Drug Compatibility Research Project" among the investment projects raised by the company's public issuance of convertible corporate bonds, and the remaining raised funds will be permanently replenished. To supplement working capital, for details, please refer to the "Announcement on the Completion of Investment Projects with Funds Raised by the Public Issuance of Convertible Corporate Bonds and the Use of Surplus Raised Funds to Permanently Supplement Working Capital" disclosed by the company on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on June 5, 2026 (Announcement Number: 2026-027).
During the reporting period, the company has transferred the remaining raised funds (the net amount after interest income deducts bank fees) of 14.6629 million yuan into the company's own capital account for permanent replenishment of working capital, and the company has completed the cancellation procedures for all special raised fund accounts. For details, please refer to the company's announcement on June 11, 2026 The "Announcement on the Completion of Cancellation of the Special Account for Raised Funds" (announcement number: 2026-029) was disclosed on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on the same day.
(8) Other uses of raised funds
April 24, 2026 The third meeting of the fifth session of the board of directors of the company reviewed and approved the "Proposal on Using Own Funds to Pay Part of the Funds for Raised Investment Projects and Replacement with Raised Funds in Equal Parts". It was agreed that the company and its subsidiaries would use their own funds to pay for part of the funds required for the raised investment projects and replace them with raised funds in equal amounts during the implementation of the raised investment projects based on the actual conditions of the raised investment projects. This part of the replacement funds in equal amounts shall be regarded as the funds used for the raised investment projects; and it was agreed that the company's use of raised funds to replace its own funds to pay for the salary of the investment project personnel and social security provident funds shall be confirmed.
During the implementation of the raised investment project "Chinese Borosilicate Medicinal Glass and Drug Compatibility Research Project", the company used its own funds to pay employee wages, social security, and provident funds based on actual needs, and transferred equal amounts from the raised funds account to the company's own capital account. This part of the equal amount of replacement funds is regarded as the funds used for the raised investment project. From May 7, 2021 to February 27, 2026, the company used its own funds to pay a total of 8,107,959.61 yuan in salary, social security, provident fund and other salary expenses for the relevant personnel of this project. The company has transferred equal amounts from the raised funds account to the company's own fund account. For details, please refer to the "Announcement on Using Own Funds to Pay Part of the Funds for Raised Investment Projects and Replacement with Raised Funds in Equal Balance" (Announcement Number: 2026-009) disclosed by the company on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on April 25, 2026.
4. Change the use of funds for investment projects
During the reporting period, the company did not change the use of funds for fundraising projects.
5. Problems in the use and disclosure of raised funds
During the reporting period, the company disclosed the storage and use of raised funds in a timely, truthful, accurate and complete manner in accordance with the relevant provisions of the "Supervisory Rules for Listed Companies' Raised Funds", "Shanghai Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standardized Operations (Revised in April 2026)" and the "Management Measures for the Use of the Company's Raised Funds", and there was no illegal use of raised funds.
Announcement is hereby made.
Board of Directors of Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd.
August 29, 2026
Comparison table of usage of raised funds
2026 half year
Prepared by: Chongqing Zhengchuan Pharmaceutical Packaging Materials Co., Ltd. Unit: RMB 10,000
Yuan
Name of issue Date of receipt of funds raised from the public issuance of convertible corporate bonds in 2021 Total funds raised on May 7, 2021 39,802.88 Total funds raised during the year 57.57 Total funds raised accumulatively invested 39,538.67 Total funds raised for change of purpose - Proportion of total funds raised for change of use - Cumulative project availability as of the end of the period
Changed items As of the end of the period Investment as of the end of the period
Committed investment projects, after adjustment of raised investment, as of the end of the period, the amount of committed investment and the commitment project have reached the feasibility of
Project, including part of the commitment of raised funds for the year. Accumulated investment amount for the year. Investment progress (%). Whether the actual investment amount for the current year has reached pre- and over-raised funds. Project total investment amount. Is the planned usable amount of the committed investment amount changed? Total committed investment amount. (4) = Current benefits. Calculated benefits.
Nature Amount (1) Difference Status Date Significant changes (if any) (2) (2)/(1)
(3)＝(2)-(1) Huazhong Borosilicate Medicinal Glass Production No
No 36,802.88 36,802.88 37,791.93 989.05 102.69 2024-6-30 1,414.80 No glass production project construction [Note]
Not applicable (ground borosilicate medicinal glass
R&D project, not compatible with drugs No 3,000.00 3,000.00 57.57 1,746.74 -1,253.26 58.22 Not applicable Not applicable No
Project Direct Effectiveness Research Project
benefits)
Total - - 39,802.88 39,802.88 57.57 39,538.67 -264.21 - - - - "Medium borosilicate medicinal glass production project": During the implementation of this project, due to the long supply, installation, commissioning and acceptance cycles of imported equipment, the corresponding payment nodes for some payments were delayed. Therefore, the overall project progress was delayed from the plan, and the completion date was adjusted from December 31, 2022 to June 30, 2024; the project has reached the scheduled usable status by June 30, 2024.
"Medium borosilicate medicinal glass and drug compatibility research project": Affected by centralized pharmaceutical procurement, macro environment, market environment, etc., most pharmaceutical companies are carrying out cost reduction and efficiency improvement work. The lack of enthusiasm for the introduction of advanced packaging materials has made the categories of compatibility research projects less than expected. In addition, as of June 2024, the consumption cost per unit variety has been lower than expected and has not reached the planned schedule (specific projects). The amount of raised funds invested has not reached 50% of the planned investment amount. However, after careful demonstration by the company, the project is still necessary and feasible. On June 28, 2024, the company held the 16th meeting of the fourth board of directors and the 10th meeting of the fourth board of supervisors, and reviewed and approved the "Proposal on the Closing of Partially Raised Investment Projects and the Extension of Partially Raised Investment Projects", agreed to conclude the "Chinese borosilicate medicinal glass production project", and extended the completion date of the "Chinese borosilicate medicinal glass and drug compatibility research project" from June 30, 2024 to June 30, 2027. On June 4, 2026, the company held the fourth meeting of the fifth board of directors, and reviewed and approved the "Proposal on Closing the Investment Project with Funds Raised by the Public Issuance of Convertible Corporate Bonds and Using the Surplus Raised Funds to Permanently Replenish Working Capital", and agreed to close the "Medium Borosilicate Medicinal Glass and Drug Compatibility Research Project" among the investment projects raised by the company's public issuance of convertible corporate bonds, and use the remaining raised funds to permanently replenish working capital. Explanation of major changes in project feasibility. There were no major changes in project feasibility during the reporting period.
For details on the advance investment and replacement of investment projects with raised funds, please refer to the previous article "3. (2) Advance investment and replacement of raised funds"
Use of idle raised funds to temporarily supplement working capital None
For details on cash management of idle raised funds and investment in related products, please refer to the previous article "3. (4) Cash management of idle raised funds and investment in related products"
Use of excess raised funds to permanently replenish working capital or repay bank loans None
On June 4, 2026, the fourth meeting of the company's fifth board of directors reviewed and approved the "Proposal on the Completion of Investment Projects Raised by the Public Issuance of Convertible Corporate Bonds and the Surplus Raised Funds to Permanently Supplement Working Capital", and agreed to conclude the "Medium Borosilicate Medicinal Glass and Drug Compatibility Research Project" among the investment projects raised by the company's public issuance of convertible corporate bonds, and the remaining raised funds will permanently replenish working capital. During the reporting period, the company has deducted the remaining raised funds (interest income from the balance of raised funds raised by banks and the reasons for its formation).
The net amount after renewal) 14.6629 million yuan was transferred to the company's own capital account. For details of the main reasons for the surplus of raised funds, please refer to the "Announcement on the Completion of Investment Projects with Funds Raised by the Public Issuance of Convertible Corporate Bonds and the Use of Surplus Raised Funds to Permanently Supplement Working Capital" disclosed by the company on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on June 5, 2026 (Announcement Number: 2026-027).
For other uses of raised funds, please refer to the previous article "3. (8) Other uses of raised funds" for details.
[Note] The main reason why China's borosilicate pharmaceutical glass production project has not achieved the expected benefits is that due to the deepening of the pharmaceutical centralized procurement policy, the reform of medical insurance payment and the intensified competition in the pharmaceutical market, pharmaceutical companies generally implement cost reduction and efficiency improvement strategies, resulting in
The willingness to purchase high-end packaging materials has fluctuated periodically. During the reporting period, the sales volume of the ampoule product line fell short of expectations due to changes in market demand. In the injection bottle market, due to intensified competition in the industry, terminal prices continued to be under pressure, and the unit sales price was lower than expected.
period. In addition, the cost of natural gas and the purchase price of key raw material borax pentahydrate have increased significantly than expected, resulting in higher-than-expected production costs and weakening project profitability.