Huatai United Securities Co., Ltd.’s 2025 semi-annual continuous supervision and follow-up report on Rongchang Biopharmaceutical (Yantai) Co., Ltd.
Huatai United Securities Co., Ltd.
About Rongchang Biopharmaceutical (Yantai) Co., Ltd.
2025 Semi-annual Continuous Supervision and Follow-up Report
Sponsor name: Huatai United Securities Co., Ltd. Sponsored company abbreviation: Rongchang Biotech
Sponsor representative name: Liu Zhaoming Contact number: 025-56839300
Sponsor representative name: Gao Yuan Contact number: 025-83387686
In accordance with the provisions of relevant laws and regulations such as the Securities Law of the People's Republic of China, the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, and the Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules (hereinafter referred to as the "Listing Rules"), Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities Co., Ltd.") "Thailand Securities" or the "Sponsor"), as the sponsor of the initial public offering of shares of Rongchang Biopharmaceutical (Yantai) Co., Ltd. (hereinafter referred to as "Rongchang Bio", the "Company" or the "Issuer"), continues to supervise Rongchang Biological and issues this continuous supervision and follow-up report:
1. Problems discovered by sponsor institutions and sponsor representatives and their rectification status
(1) Problems found
In the first half of 2025, the company achieved operating income of 1.098 billion yuan, an increase of 48.02% from 742 million yuan in the same period last year, mainly due to the rapid year-on-year growth in sales revenue and sales of its two core products, Taiai® (tatacept) and Aidexi® (vedisitomab). The net loss attributable to shareholders of listed companies was 450 million yuan, and the net loss attributable to shareholders of listed companies after excluding non-recurring gains and losses was 446 million yuan. The significant year-on-year decrease in losses was mainly due to the continued growth of the company's operating income, the continued improvement of gross profit margins, the decline in sales expense rates and the reduction in R&D investment.
The company is at risk of continuing losses in 2025 and subsequent years, mainly due to the company's active layout of product pipelines under development covering multiple disease treatment fields. As an innovative biopharmaceutical company, the company will continue to maintain a corresponding scale of R&D investment in preclinical research and global scale for products under development. Drug development work such as clinical trials and pre-launch preparations for new drugs, as well as registration work such as the company's new drug marketing application and post-market marketing, will also incur high costs, which may lead to the company's losses expanding in the short term, thereby adversely affecting the company's daily operations, financial conditions and other aspects.
To sum up, the company's operating income in the first half of 2025 increased by 48.02% compared with the same period last year, but it is still in a state of loss. The company has the risk of continued losses in 2025 and subsequent years.
(2) Rectification situation
The above issues do not involve rectification matters. The sponsoring agency reminds the company to do a good job in relevant information disclosure, promptly and fully disclose the relevant risks, and effectively protect the interests of investors; investors are reminded to pay special attention to the relevant risks caused by the above matters.
2. Major risk matters
The main risk factors currently faced by the company are as follows:
(1) Risks of not yet making profits
Due to the numerous drug review and approval procedures, long cycle, and high uncertainty, the launch process of the company's products under development may be greatly delayed or the company may not be able to obtain marketing approval as planned. After the company's products under development are conditionally approved for marketing, the company may not be able to obtain full approval in the future. The progress in market expansion, academic promotion, medical insurance coverage, etc. may not meet expectations, or the sales team fails to keep up with policy trends and grasp the market competition situation. This will affect the company's future commercialization capabilities. The company's operating income may not grow as scheduled, and the company's losses may further increase.
The company's Tatasercept and Vidicitomab have officially begun sales in 2021. With its inclusion in the latest round of medical insurance catalogue, its registered clinical trials on more indications have been completed one after another, and the development progress of other products under research has been accelerated. The commercialization stage of multiple indications and products will further improve the company's financial situation and create conditions for the company to turn losses into profits as soon as possible.
(2) Risk of significant decline in performance or loss
The company achieved operating revenue of 1.098 billion yuan in the first half of 2025, an increase of 48.02% from 742 million yuan in the same period last year. Sales revenue and sales volume grew strongly year-on-year. The net loss attributable to shareholders of listed companies was 450 million yuan, and the net loss attributable to shareholders of listed companies after excluding non-recurring gains and losses was 446 million yuan. The significant year-on-year decrease in losses was mainly due to the continued growth of the company's operating income, the continued improvement of gross profit margins, the decline in sales expense rates and the reduction in R&D investment. During the reporting period, the company's research and development expenses were 647 million yuan, a decrease of 19.72% compared with the same period last year. The decrease in R&D expenses was mainly due to the company's continuous optimization of the product pipeline under development and the reduction in R&D investment. During the reporting period, the company's sales expenses were 526 million yuan, an increase of 34.93% compared with the same period last year. As the number of hospitals and pharmacies covered by Tatacept and Vidicitumab has increased significantly, the company's increased market investment has led to a corresponding increase in sales expenses.
The company is dedicated to the discovery, development and commercialization of innovative therapies. The company is actively developing a pipeline of products under development covering multiple disease treatment areas, and will maintain a corresponding scale of R&D investment in the future for preclinical research on products under development, global clinical trials, and pre-launch preparations for new drugs and other drug development work. In addition, registration work such as the company's new drug listing application and post-market marketing will also incur high expenses, which may lead to further expansion of the company's losses in the short term, thereby adversely affecting the company's daily operations and financial status. During the reporting period, there were no major adverse changes in the company's main business and core competitiveness.
(3) Core competitiveness risks
Although the market size of the company's core products in various indication fields has good growth expectations and there is no obvious limit on market capacity, similar competing products have been launched in some segments and some have been included in the national medical insurance catalog. If the sales of the company's related drugs and drug candidates are not as good as expected after they are included in the national reimbursement catalog or are not successfully included in the national reimbursement catalog in the future, or there are deviations in the pricing strategy of future products or unsatisfactory cost control, it will have a certain impact on the company's future earnings.
(4) Business risks
When the company carries out R&D and production-related business, it needs to purchase reagents, consumables and equipment from suppliers. In order to ensure the quality of its own products, the company sometimes purchases brand products from well-known foreign manufacturers, and the company may have a certain dependence on some important raw materials or equipment supplied by such foreign manufacturers. In the future, if certain foreign suppliers of some of the company's important raw materials or equipment experience supply shortages, have operational problems, or are unable to supply the company in a timely manner due to the impact of the international trade environment and policies, it may have an adverse impact on the company's business operations and development.
(5) Financial risks
During the reporting period, the company's net cash flow generated from operating activities was -246 million yuan, and its working capital relied on external financing. If the company's future working capital is insufficient to cover required expenses, it will put pressure on the company's financial situation. If the company is unable to make profits or raise sufficient funds to maintain operating expenses within a certain period of time in the future, the company will be forced to postpone, reduce or cancel research and development projects, affecting the commercialization progress of drugs under development, thereby adversely affecting the company's business prospects, financial status and operating results. If the company's working capital is tight, it will affect the company's continued payment or increase in salary levels to employees, which may have an adverse impact on the company's ability to introduce core talents and stabilize the existing team in the future, which may hinder the realization of the company's R&D and commercialization goals and damage the company's strategic ability to further expand its business scope.
(6) Industry risks
On November 15, 2021, the Drug Evaluation Center of the State Food and Drug Administration issued a notice on the "Guiding Principles for Clinical Research and Development of Anti-tumor Drugs Oriented by Clinical Value" (hereinafter referred to as the "Guiding Principles"). This guiding principle emphasizes that anti-tumor drug research and development should implement the concept of clinical needs as the core from determining the direction of research and development to conducting clinical trials, and carry out clinical value-oriented anti-tumor drug research and development. The "Guiding Principles" encourage drug applicants to be patient-oriented, strengthen mechanism research, improve precision treatment, pay attention to dynamic changes in treatment needs, continuously improve drug safety, and improve treatment experience and convenience.
The company's products under development include anti-tumor drugs. So far, the "Guiding Principles" have not had any adverse impact on the conduct of clinical trials of related products. If in the future the clinical trial plans of the company's related products are adjusted according to the requirements of the competent authorities, or if the competent authorities issue more detailed policies and regulations such as guidelines for the conduct of clinical trials of anti-tumor drugs, it may have a certain negative impact on the progress of clinical trials of the company's related products, which will in turn have an adverse impact on the company's daily operations.
(7) Macro-environmental risks
If the overall growth rate of the biopharmaceutical industry slows down in the future, or if public incidents related to quality or safety that are unfavorable to the biopharmaceutical industry occur and the overall image of the industry is affected, it may cause the growth of market demand to slow down, thereby adversely affecting the company's operations.
3. Major violations
In the first half of 2025, the company had no major violations.
4. Reasons and rationality of changes in major financial indicators
In the first half of 2025, the company's main financial data and indicators are as follows:
Unit: Yuan Currency: RMB This period increased compared with the same period last year Main financial data January-June 2025 January-June 2024
minus (%)
Operating income 1,097,953,438.31 741,756,779.89 48.02 Deduction of items unrelated to the main business
business income and no business
1,091,976,197.54 739,656,067.22 47.63 Operating income after actual income
enter
Attributable to shareholders of listed companies
-449,568,663.07 -780,459,767.69 Not applicable to net profit
Attributable to shareholders of listed companies
Net deducting non-recurring gains and losses -445,517,539.67 -793,873,640.06 Not applicable profit
cash flow from operating activities
-245,539,255.27 -820,169,537.32 Net amount not applicable
Main financial data at the end of this reporting period compared with the previous year June 30, 2025 December 31, 2024
Final increase or decrease (%) attributable to shareholders of listed companies
2,357,490,571.09 1,986,200,620.94 18.69Net assets
Total assets 5,850,358,116.92 5,498,518,168.82 6.40 Increase in this period compared with the same period last year Main financial indicators January-June 2025 January-June 2024
minus (%)
Basic earnings per share (yuan/
-0.83 -1.45 (not applicable to stocks)
Diluted earnings per share (yuan/
-0.83 -1.45 (not applicable to stocks)
After deducting non-recurring gains and losses
Basic earnings per share (yuan / -0.82 -1.48 not applicable to shares)
Weighted average return on equity
-23.66 -25.62 increased by 1.96 percentage points (%)
After deducting non-recurring gains and losses
Weighted average return on equity -23.45 -26.06, an increase of 2.61 percentage points (%)
R&D investment as a share of operating income
58.95 108.69 A decrease of 49.74 percentage points (%)
The reasons for the changes in the above major financial data and financial indicators are as follows:
- Operating income increased by 48.02% year-on-year, mainly due to the continued sales of Tatascept and Vidicitomab.
Continued growth, product sales revenue increased;
- Operating income after deducting business income unrelated to the main business and income without commercial substance
A year-on-year increase of 47.63%, the reason for the change is the same as operating income;
The net profit attributable to shareholders of listed companies and the net profit attributable to shareholders of listed companies excluding non-recurring gains and losses decreased year-on-year, mainly due to the continued increase in sales of Tatacept and Vidicitomab, the continued increase in product gross profit margin, the decrease in sales expense rates, and the decrease in R&D investment;
The net cash flow generated from operating activities increased by 574.6303 million yuan year-on-year, mainly due to the increase in sales volume and sales collection in the current period. In addition, the company implemented cost reduction and efficiency improvement, and various operating expenses decreased;
Net assets attributable to shareholders of listed companies increased by 18.69% compared with the end of the previous year, mainly due to the company's Hong Kong stock placement in the first half of the year;
Total assets increased by 6.40% compared with the end of the previous year, mainly due to the company's Hong Kong stock placement in the first half of the year;
The year-on-year increase in earnings per share was mainly due to the reduction in the company's losses;
The weighted average return on equity and the weighted average return on equity after deducting non-recurring gains and losses increased, mainly due to the reduction in the company's losses;
The proportion of R&D investment in operating income decreased by 49.74 percentage points year-on-year, mainly due to the sharp increase in operating income and the decrease in R&D investment this year.
5. Changes in core competitiveness
(1) Rich and innovative product pipeline with market competitiveness and differentiation advantages
The company has the world's first and first-in-class BLyS/APRIL dual-target new recombinant TACI-Fc fusion protein product Tatacept, which has impressive curative effects on B cell-mediated autoimmune diseases. In June 2025, the company entered into an agreement with Tatacept and Vor Bio has reached a licensing cooperation, and the other party has obtained the exclusive rights to develop and commercialize worldwide except Greater China. As part of the consideration for the external licensing transaction, Rongchang Biotech and its wholly-owned subsidiary Rongpu Partnership will receive from Vor Bio obtained US$125 million in cash and warrants, up to US$4.105 billion in clinical registration and commercialization milestone payments, and high single-digit to double-digit sales commissions; it has China's first self-developed ADC innovative drug and the first to be recognized as a breakthrough therapy by the US FDA. China's ADC product Vedicitomab targets common cancers with a large number of unmet medical needs; it has a potential first-in-class, VEGF/FGF dual-target innovative fusion protein (RC28), targeting ophthalmic diseases with huge market potential. In addition, the company also has a series of research products in the clinical stage and preclinical development stage.
(2) Industry-leading independent innovation core technology platform and strong professional R&D talents
After more than ten years of accumulation of technology and industry experience, the company has built four core technology platforms including antibody and fusion protein platforms with independent intellectual property rights, antibody drug conjugate (ADC) platform bispecific antibody platform, and bispecific antibody ADC platform. It also has a highly specialized and experienced clinical development team, which has become an important driving force for the development of a variety of innovative biopharmaceuticals. At the same time, the company has built a comprehensive, end-to-end innovative biopharmaceutical R&D and industrialization system, covering all key drug R&D and industrialization links including drug discovery, preclinical pharmacology, process and quality development, clinical development, and large-scale production in compliance with GMP standards.
(3) Production system and professional quality management system that comply with global GMP standards
Based on the different quality management requirements at different development stages of innovative biopharmaceutical products, the company has established a professional R&D quality management system and commercial quality management system for preclinical research, non-registration clinical research and registered clinical research respectively, covering key production and quality management links in the clinical research and commercial production stages, ensuring that product production in the clinical R&D and commercialization stages complies with relevant global GMP standards. In terms of system construction, the company has formulated systematic system documents and SOP documents focusing on raw materials, materials, drugs and environment in accordance with the relevant requirements of global GMP regulations or other pharmaceutical quality normative documents; in terms of personnel construction, the company has a high-quality quality management team with professional backgrounds such as biology, chemistry and pharmacy and regularly conducts internal and external training on relevant regulations.
(4) Listed products take into account both domestic and global commercial layout and development, and have broad market space
The commercialization of Tatacept is progressing smoothly after conditional approval for marketing in March 2021. China has a huge market for B cell-mediated autoimmune diseases. After licensing to Vor Bio in June 2025, the global market in the field of autoimmunity is vast, and the product has huge room for growth in overseas markets.
The commercialization of Vidicitomab is progressing smoothly after conditional approval for marketing in June 2021. The market size in China will continue to grow. After achieving overseas license-out in August 2021, the potential global commercialization value will be huge.
(5) An expert management team with forward-looking and global vision
The company has an expert management team with forward-looking and global vision. Most members have more than 20 years of experience in the multinational pharmaceutical industry and have accumulated a lot of successful experience in innovative drug research and development, clinical development and commercialization. The company's management team is composed of a number of world-renowned scientists and senior industry experts in the field of innovative biological drugs. They are responsible for and leading the research and development, registration and management of drugs. Most of the relevant experts have international vision and overseas drug research and development experience. The company's management team has formulated a visionary globalization strategy for the company and implemented it, continuously empowering the company's strong R&D capabilities, commercialization capabilities and management capabilities. Under the strong leadership of the company's expert management team, the company continues to develop new market-competitive drug candidates and promotes the global layout of drug candidates.
6. Changes in R&D expenditures and R&D progress
(1) R&D expenditures and changes
From January to June 2025, the company's R&D investment totaled 647.2162 million yuan, a decrease of 19.72% compared with the same period last year, mainly due to the company's continuous optimization of the product pipeline under development. From January to June 2025, the company's R&D investment accounted for 58.95% of its operating income, a decrease of 49.74 percentage points from the same period last year.
(2) R&D progress
The main R&D achievements achieved by the company in the first half of 2025 are as follows:
Patent Category Authorized Announcement Patent Name Patentee Patent Authorized Announcement Number Patent Application Date
Type Japanese Anti-c-Met antibody-drug
RemeGen AU2021337718
conjugate and applications invention 2021/8/31 2025/5/22 Co.,Ltd. B2
thereof
PHARMACEUTICAL
TACI-FC FUSION RemeGen
Invention EP4074337B1 2020/12/9 2025/5/7
PROTEIN Co.,Ltd.
FORMULATION
TACI-Fc fusion protein liquid drug RemeGen
Invention TWI882569B 2023/12/7 2025/5/1
Pharmaceutical Co.,Ltd.
ANTI-CLAUDIN 18.2
ANTIBODY AND REMEGen
Invention JP7675818B2 2022/5/7 2025/5/1 ANTIBODY-DRUG Co.,Ltd.
CONJUGATE THEREOF
A cell freezing rack and supporting freezing RemeGen utility model
CN222794050U 2024/5/29 2025/4/25
Storage box Co.,Ltd. type
Patent Category Authorized Announcement Patent Name Patentee Patent Authorized Announcement Number Patent Application Date
Daily use of TACI-Fc fusion protein therapy RemeGen
Invention TWI881359B 2023/6/8 2025/4/21 Method for treating myasthenia gravis Co.,Ltd.
An anti-mesothelin antibody and its anti-RemeGen
Invention KR102795812B1 2019/5/15 2025/4/11 11-body drug conjugate Co.,Ltd.
METHOD FOR
TREATING IGA
RemGen
NEPHROPATHY WITH invention JP7644838B2 2022/8/9 2025/3/12 Co.,Ltd.
TACI-FC FUSION
PROTEIN
RemeGen Practical New
A kind of tweezers set device CN222493833U 2024/5/29 2025/2/18 Co.,Ltd. type
BIFUNCTIONAL
ANGIOGENESISRemeGen
Invention HK40042305B 2019/12/4 2025/1/17 INHIBITOR AND USE Co.,Ltd.
THEREOF
A LINKER FOR
ANTIBODY-DRUG RemeGen
Invention US12195552B2 2019/12/13 2025/1/14 CONJUGATES AND ITS Co.,Ltd.
USE
ANTI-HER2 ANTIBODY
DRUG CONJUGATE RemGen
Invention KR102754055B1 2020/3/25 2025/1/10 PHARMACEUTICAL Co.,Ltd.
PREPARATION
7. Whether the progress of new business is consistent with the previous information disclosure
Not applicable.
8. Use of raised funds and compliance with regulations
(1) Usage of raised funds
- The actual amount of funds raised and the status of fund arrival
According to the China Securities Regulatory Commission's "About Approval of Rongchang Biopharmaceutical (Yantai) Co., Ltd.
Approval of Registration for Initial Public Offering of Stocks" (China Securities Regulatory Commission License [2022] No. 62), the company's initial public offering
The Bank issued 54,426,301 RMB ordinary shares (A shares) at an issuance price of RMB 48.00 per share. As of 2022
On March 28, 2018, the company actually raised a total of RMB 2,612,462,448.00 yuan. After deducting the sponsor and underwriting fees of RMB 84,699,331.33 (including value-added tax) that should be paid, the balance of the raised funds was RMB 2,612,462,448.00. 2,527,763,116.67 yuan, which have been remitted by the sponsor institution to the company's capital account at the Yantai Development Zone Branch of Shanghai Pudong Development Bank Co., Ltd. on March 28, 2022 (account number 146200788 01100001150) RMB 947,763,116.67, Yantai Bank Co., Ltd. development branch capital account (account number 81601060301421015786) RMB 430 ,000,000.00 yuan, capital account of Yantai Development Branch of China Construction Bank Co., Ltd. (account number 37050166666000002293) RMB 220,000,000.00 yuan, Shanghai Pudong Development Bank Co., Ltd. Yantai Development Zone Branch Capital Account (Account No. 14620078801000001151) RMB 900,000,000.00, and the capital account of the Business Department of China Merchants Bank Co., Ltd. Yantai Branch (account number 999013473010909) RMB 30,000,000.00.
After deducting underwriting fees, legal fees, audit fees, statutory information disclosure and other issuance expenses of RMB 106,516,951.24 (excluding tax), the company's net proceeds from the initial offering were RMB 2,505,945,496.76. The difference from the actual funds in place is that part of the issuance expenses were paid with its own funds in the early stage. The above capital availability has been verified by Ernst & Young Hua Ming LLP (Special General Partnership), which issued the Capital Verification Report No. 61486761_J03 of Ernst & Young Hua Ming (2022).
- Use and balance of raised funds
Reasons for income and expenditure Amount (yuan) Total raised funds 2,612,462,448.00 Less: Underwriting commission and other issuance expenses (Note 1) 106,516,951.24 Net raised funds 2,505,945,496.76 Less: Amount of expenses for investment projects with raised funds (hereinafter referred to as "raised investment projects") (Note 1)
2,240,629,593.13 2)
Less: Use raised funds to replace the amount pre-invested in the investment project (Note 1) 186,055,194.43 Less: Permanent replenishment of the balance of the investment project 11,184,168.29 Less: Purchase of structured deposits with raised funds - Add: Accumulated income amount of cash management products with raised funds 20,735,188.54 Add: Accumulated interest income minus handling fees 41,384,766.72
Balance of raised funds as of June 30, 2025 130,196,496.17 Note 1: The company held the 23rd meeting of the first board of directors on September 26, 2022, and reviewed and approved the "Proposal on the Use of Raised Funds to Replace Pre-invested Self-raised Funds", agreeing to use the raised funds to replace the self-raised funds that have been invested in the project in advance for an amount of RMB 186,055,194.43, and to use the raised funds to replace the paid issuance fees of RMB 18,739,107.34;
Note 2: The amount of expenditure on investment projects with raised funds includes the net amount of interest income from the raised funds minus handling fees and the accumulated income of cash management products with raised funds.
- 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 has formulated the "Management System for the Use of Raised Funds of Rongchang Biopharmaceutical (Yantai) Co., Ltd." (hereinafter referred to as the "Management System") in accordance with the relevant laws and regulations of the China Securities Regulatory Commission and based on the company's actual situation. According to the management system, the company implements a special account for depositing raised funds, establishes a special account for raised funds in a bank, and signs a "Tripartite Supervision Agreement for Special Account Deposit of Raised Funds" with the sponsor institution and each account-opening bank, which clarifies the rights and obligations of all parties.
- Storage status of raised funds in special account
As of June 30, 2025, the specific storage situation of raised funds is as follows:
Unit: RMB account opening bank Bank account number Account category Storage balance Yantai Bank Development Branch 81601060301421015786 Special account for raised funds 130,196,496.17
Total 130,196,496.17
Note: Yantai Development Zone Branch of Shanghai Pudong Development Bank Co., Ltd. (bank account number 14620078801100001150), Business Department of Yantai Branch of China Merchants Bank (bank account number 999013473010909), China Construction Bank Co., Ltd. Yantai Development Branch (bank account number 37050166666000002293) and Shanghai Pudong Development Bank Co., Ltd. Yantai Development Zone Branch (bank account number 14620078801000001151) were canceled on May 23, 2024.
- Advance investment and replacement of fundraising projects
In the first half of 2025, the company will not have any early investment or replacement in fundraising projects.
- Temporary replenishment of working capital with idle raised funds
In the first half of 2025, the company will not have idle raised funds to temporarily replenish working capital.
- Cash management of idle raised funds
The company held the 11th meeting of the second board of directors and the 8th meeting of the second board of supervisors on March 27, 2024, and reviewed and approved the "Proposal on the Use of Idle Raised Funds for Cash Management", agreeing that the company will use idle raised funds not exceeding RMB 200 million to purchase financial products with high security, good liquidity, and purchase institutions that are not limited to banks, securities and other financial institutions for cash management. This will be valid for one year from the date of review and approval by the company's board of directors. Within the above quota and period, it can be used on a rolling basis. The company's board of supervisors issued a concurring opinion, and the sponsor issued a verification opinion on the above matters. For details, please refer to the "Announcement of Rongchang Biopharmaceutical (Yantai) Co., Ltd. on the use of idle raised funds for cash management" disclosed by the company on the website of the Shanghai Stock Exchange on March 28, 2024 (announcement number: 2024-013).
The company held the 21st meeting of the second board of directors and the 15th meeting of the second board of supervisors on March 27, 2025, and reviewed and approved the "Proposal on the Use of Idle Raised Funds for Cash Management", agreeing that the company will use idle raised funds not exceeding RMB 140 million to purchase financial products with high security, good liquidity, and purchasing institutions that are not limited to banks, securities and other financial institutions for cash management. This will be valid for one year from the date of review and approval by the company's board of directors. Within the above quota and period, it can be used on a rolling basis. The company's board of supervisors issued a concurring opinion, and the sponsor issued a verification opinion on the above matters. For details, please refer to the "Announcement of Rongchang Biopharmaceutical (Yantai) Co., Ltd. on the use of idle raised funds for cash management" disclosed by the company on the website of the Shanghai Stock Exchange on March 28, 2025 (Announcement No.: 2025-015).
In the first half of 2025, the company used idle raised funds to purchase the following investment products:
Product Category Amount Expected Annualized Revenue
Bank name Value date Maturity date Whether it is maturity type (10,000 yuan) Yield
Shanghai Pudong Development
Capital preservation and float
Bank Co., Ltd. 0.85%-
Dynamic income 10,000.00 2025/4/3 2025/6/26 The company Yantai Development 2.30%
type products
District branch
- Usage of surplus raised funds
In the first half of 2025, the company will have no surplus raised funds.
- Other uses of raised funds
In the first half of 2025, the company has no other use of raised funds.
(2) Whether the funds raised are in compliance with regulations
The company's storage and use of raised funds in the first half of 2025 complied with the provisions of laws, regulations and institutional documents such as the "Listing Rules", "Self-Regulatory Supervision Guidelines for Companies Listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operations", "Rongchang Biopharmaceutical (Yantai) Co., Ltd.'s Raised Funds Utilization Management System" and other laws, regulations and institutional documents. The raised funds were stored and used for special purposes, and relevant information disclosure obligations were fulfilled in a timely manner. There was no disguised change in the use of raised funds and harm to the interests of shareholders, and there was no illegal use of raised funds.
- Shareholding, pledge, freeze and reduction of controlling shareholders, actual controllers, directors, supervisors and senior managers
As of June 30, 2025, the A shares held directly or indirectly by the company's controlling shareholders, actual controllers, directors, supervisors and senior managers have not been pledged, frozen or reduced.
- There are no other matters on which the Shanghai Stock Exchange or the sponsoring institution deems it appropriate to express opinions.
(No text below)
(This page has no text, but is the signature page of "Huatai United Securities Co., Ltd.'s Continuous Supervision and Tracking Report of Rongchang Biopharmaceutical (Yantai) Co., Ltd. for the 2025 Half Year")
Sponsor representative (signature):
Liu Zhaoming Gao Yuan
Huatai United Securities Co., Ltd.
year month day