CITIC Securities Co., Ltd.’s verification opinions on Sinovac Biopharmaceutical Co., Ltd.’s use of part of idle raised funds for cash management
CITIC Securities Co., Ltd.
About Sinovac Biopharmaceutical Co., Ltd.
Verification opinions on using part of idle raised funds for cash management
CITIC Securities Co., Ltd. (hereinafter referred to as "China Securities" or the "Sponsor"), as the sponsor of Sinovac Biopharmaceutical Co., Ltd. (hereinafter referred to as "Sinovac" or the "Company")'s initial public offering and listing on the Science and Technology Innovation Board, in accordance with the "Measures for the Administration of Sponsorship Business for Securities Issuance and Listing" and "Shanghai Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules", "Regulations on the Supervision of Funds Raised by Listed Companies", "Shanghai Stock Exchange Science and Technology Innovation Board Listed Companies Self-Regulatory Guidelines No. 1 - Standardized Operations" and other relevant regulations have verified Sinovac Pharmaceutical's use of part of idle raised funds for cash management. The details are as follows:
1. Basic situation of using part of idle raised funds for cash management
(1) Investment purpose
In accordance with relevant regulations such as the "Supervision Rules for Fund Raising by Listed Companies" and the "Self-Regulatory Guidelines for Companies Listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operations" and other relevant regulations, in order to improve the efficiency of the use of raised funds and ensure that the construction of raised funds projects is not affected and the safety of raised funds is ensured, the company rationally uses part of the temporarily idle raised funds for cash management to increase the company's income and obtain more returns for the company and shareholders.
(2) Investment amount and term
Under the premise of ensuring that the normal progress of the company's investment plan of raised funds will not be affected, the company and its wholly-owned subsidiaries plan to use temporarily idle raised funds not exceeding RMB 150 million (including the original amount) for cash management. The use period of the quota is valid for 12 months from the date of review and approval by the board of directors. Within the aforementioned limit and period, funds can be used on a rolling basis.
(3) Source of funds
Issue Name Initial Public Offering of Shares
The time for receipt of raised funds is December 7, 2020
Total raised funds 1,109.2494 million yuan Net raised funds 994.6409 million yuan Total excess raised funds √Not applicable □Applicable, ______ million yuan
Usage of raised funds when reaching the intended usable state Project name Cumulative investment progress (%)
time
Drug production base reconstruction and expansion project 48.08 June 2026
R&D center upgrade and construction project 93.76 December 2028
Information management system upgrade and construction project 100.51 Completed in June 2023
Supplement working capital 100.00 /
Will it affect the implementation of fundraising projects □Yes √No
Note: 1. The cumulative investment progress of the “Drug Production Base Renovation and Expansion Project” and the “R&D Center Upgrading and Construction Project” are based on “as of December 2025” Calculate the cumulative investment amount on the 25th/the investment amount of raised funds before the change; 2. The company held the fourth meeting of the third board of directors on December 13, 2025 to review and approve the "Proposal on Changing the Use of Partially Raised Funds and Extension of Partially Raised Investment Projects". The company plans to Part of the raised funds of approximately 125,020,000 yuan (including interest income and net financial income) from the "Drug Production Base Renovation and Expansion Project" was changed to the "R&D Center Upgrading and Construction Project". As of the date of issuance of this verification opinion, this matter has not yet been reviewed and approved by the company's shareholders' meeting.
(4) Investment methods
- Investment varieties
The company and its subsidiaries will strictly control risks in accordance with relevant regulations and plan to purchase principal-guaranteed financial products (including but not limited to structured deposits, time deposits, notice deposits, large certificates of deposit, agreement deposits, etc.) with high safety, good liquidity, and a product term of no more than 12 months. Such cash management products shall not be used for pledge or investment for the purpose of securities investment.
- Implementation method
Within the validity period and amount approved by the board of directors, the chairman or persons authorized by the chairman are authorized to exercise decision-making power on the matter and sign relevant contract documents, including but not limited to: selecting a qualified professional financial management institution as the trustee, clarifying the amount and period of the entrusted financial management, selecting the types of entrusted financial management products, and signing contracts and agreements and other legal documents. The company's specific investment activities are organized and implemented by the company's financial center. The product-specific settlement account shall not store non-raised funds or be used for other purposes. When opening or canceling a product-specific settlement account, the company will promptly fulfill its information disclosure obligations.
- Information disclosure
The company will fulfill its information disclosure obligations in a timely manner in accordance with the relevant regulations of the Shanghai Stock Exchange and will not change the use of raised funds in any disguised manner.
- Cash management income distribution
The proceeds obtained by the company and its subsidiaries from using part of the temporarily idle raised funds for cash management will be managed and used in strict accordance with the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange on the regulatory rules for raised funds. After the cash management expires, it will be returned to the special account for raised funds.
(5) The company’s cash management of raised funds in the past 12 months to date
The company held the 20th meeting of the second board of directors and the 18th meeting of the second board of supervisors on December 26, 2024, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds and Own Funds for Cash Management", and agreed that the company will use part of the temporarily idle raised funds not exceeding RMB 200 million (including the original amount) for cash management. The above quota will be 12 days from the date of review and approval by the company's board of directors. It is valid within one month. Within the aforementioned limit and period, the funds can be used on a rolling basis.
The company’s cash management of raised funds in the last 12 months (from December 26, 2024 to December 25, 2025) is as follows:
Actual investment amount Actual principal recovered Actual income Serial number of principal yet to be recovered Cash management type
(RMB 10,000) (RMB 10,000) (RMB 10,000) Amount (RMB 10,000)1 Structured deposits 82,985.00 82,985.00 222.05 0
Total 222.05 0Highest daily investment amount in the last 12 months 19,285.00Highest daily investment amount in the last 12 months/net assets in the last year (%) 11.80Highest daily investment amount in the last 12 months/net profit in the last year (%) 612.59Total investment quota of raised funds (10,000 yuan) 0Currently used investment quota (10,000 yuan) 0Unused investment quota (10,000 yuan) 0
Note: 1. "Actual investment amount" and "Actual principal recovery" are the cumulative amounts after rolling use in the last 12 months. 2. The net assets and net profits of the most recent year are the net assets attributable to shareholders of listed companies and the net profits attributable to shareholders of listed companies in the 2024 annual consolidated statement.
- "Currently used investment quota" and "unused investment quota" refer to the investment quota of temporarily idle raised funds for cash management as of December 25, 2025. The quota usage period previously reviewed by the company's board of directors has expired, and the cash management of the company's raised funds has been redeemed before the quota usage period expires and is deposited in the raised funds account.
2. Relevant review opinions
The company held the fifth meeting of the third board of directors and the fifth meeting of the audit committee of the third board of directors, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds for Cash Management", agreeing that the company would use a quota not exceeding RMB 150 million (including RMB 150 million) without affecting the orderly implementation of fundraising projects and the safety of raised funds. Some of the temporarily idle raised funds of RMB 100 million) will be used for cash management to purchase capital-guaranteed financial products with high security and good liquidity. The above quota will be valid within 12 months from the date of review and approval by the company’s board of directors. Within the aforementioned quota and period, the funds can be used on a rolling basis. The board of directors authorizes the chairman to exercise investment decision-making power and sign relevant legal documents.
The above matters are within the scope of the board of directors' approval authority and do not need to be submitted to the shareholders' meeting for review.
3. Investment risk analysis and risk control measures
(1) Investment risks
The company and its wholly-owned subsidiaries will strictly control risks in accordance with relevant regulations and plan to use idle raised funds to purchase investment products with high safety, good liquidity, and meeting capital preservation requirements (including but not limited to structured deposits, time deposits, notice deposits, certificates of deposit, etc.), and such cash management products shall not be used for pledge or investment for the purpose of securities investment.
The financial market is greatly affected by the macroeconomy. The company will intervene in a timely and appropriate manner according to the economic situation and changes in the financial market. However, it does not rule out that the investment income will be affected by market fluctuations and there will be certain systemic risks.
(2) Risk control measures
The company will handle relevant cash management business in strict accordance with relevant regulations such as the "Supervisory Rules for Funds Raised by Listed Companies", "Stock Listing Rules on the Shanghai Stock Exchange's Science and Technology Innovation Board", "Self-Regulatory Guidelines for Companies Listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operations" and the company's "Raised Funds Management System".
The company will conduct cash management based on the economic situation and changes in the financial market, strictly screen cooperation partners, select capital-guaranteed investment products with good liquidity and high security issued by banks and other financial institutions with good reputation, large scale, ability to ensure fund security, good operating efficiency, and strong capital operation capabilities to control investment risks.
The company's financial center will promptly analyze and track financial institutions' cash management product investment directions and project progress. Once adverse factors are discovered or judged, corresponding preservation measures must 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.
4. Impact of investment on the company
The company and its subsidiaries plan to use part of the temporarily idle raised funds for cash management this time. This is done under the premise of complying with national laws and regulations, ensuring the funds required for the company's investment projects and ensuring the safety of the raised funds. It will not affect the normal turnover needs of the company and its subsidiaries and the normal operation of the investment projects with raised funds, nor will it affect the normal development of the main business of the company and its subsidiaries. At the same time, timely cash management of part of the temporarily idle raised funds can improve the efficiency of the use of raised funds, increase the cash asset income of the company and its subsidiaries, and obtain more investment returns for the company and shareholders.
The company will conduct corresponding accounting for financial products in accordance with relevant regulations and guidelines such as "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments".
5. Verification opinions of the sponsor
After verification, the sponsor believes that:
The company's use of part of the idle raised funds for cash management has been reviewed and approved by the company's board of directors and audit committee, and necessary procedures have been fulfilled, and does not need to be submitted to the company's shareholders' meeting for review. The relevant resolution procedures comply with the requirements of relevant laws, regulations and normative documents such as the "Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules", "Regulations on the Supervision of Funds Raised by Listed Companies", "Shanghai Stock Exchange Science and Technology Innovation Board Self-Regulatory Guidelines No. 1 - Standardized Operations of Companies Listed on the Science and Technology Innovation Board" and other relevant laws, regulations and normative documents. There is no disguised change in the use of raised funds, and it does not affect the normal progress of the investment plan of raised funds. It can improve the efficiency of fund use and is in the interests of the company and all shareholders.
To sum up, this sponsor has no objection to Sinovac Pharmaceutical’s use of part of the idle raised funds for cash management.
(No text below)
(This page has no text, but is the signature and seal page of "CITIC Securities Co., Ltd.'s Verification Opinions on Sinovac Biopharmaceutical Co., Ltd.'s Use of Part of Idle Raised Funds for Cash Management")
Signature of the sponsor representative:
Xu Xinyue Zhang Xingming
CITIC Securities Co., Ltd.
year month day