Hongbo Pharmaceuticals: CITIC Securities Co., Ltd.’s 2025 continuous supervision and regular on-site inspection report of Shanghai Hongbo Zhiyuan Pharmaceutical Co., Ltd.
CITIC Securities Co., Ltd.
About Shanghai Hongbo Zhiyuan Pharmaceutical Co., Ltd.
2025 Annual Continuous Supervision Regular On-site Inspection Report
Sponsor name: CITIC Securities Co., Ltd.
The abbreviation of the sponsored company: Hongbo Pharmaceuticals (hereinafter referred to as "CITIC Securities" or the "Sponsor")
Name of sponsor representative: Yuan Binlong Contact number: 010-60838329 Name of sponsor representative: Li Song Contact number: 010-60838329 Name of on-site inspector: Yuan Binlong
On-site inspection corresponding period: January 1, 2025 - December 31, 2025
On-site inspection time: May 12, 2026
- On-site inspection matters On-site inspection opinions
(1) Corporate governance Yes No On-site inspection methods are not applicable:
We reviewed the latest articles of association of the listed company, the rules of procedure of the three meetings and meeting materials, obtained the list of directors and senior managers of the listed company and their changes, obtained the list of related parties of the listed company, reviewed the information disclosure documents and relevant change decision-making documents on the company’s controlling shareholders, actual controllers, directors, and senior managers, checked the production and operation sites of the listed company, and conducted interviews with senior managers of the listed company.
- Whether the company's articles of association and corporate governance system are complete and compliant √ 2. Whether the company's articles of association and the rules of the three meetings are effectively implemented √ 3. Whether the minutes of the three meetings are complete, including time, location, attendees and meetings
√ Whether the content and other essentials are complete, and whether the meeting materials are completely preserved
- Whether the resolutions of the three meetings are signed and confirmed by the relevant personnel attending the meeting √ 5. Whether the company’s directors, supervisors and senior management follow relevant laws, administrative regulations, department rules,
√Perform responsibilities with normative documents and relevant business rules of Shenzhen Stock Exchange
- If there are major changes in the company’s directors, supervisors and senior management, have they fulfilled the corresponding procedures and information?
√Information disclosure obligations
If the company’s controlling shareholder or actual controller changes, have the corresponding procedures and information disclosure obligations been fulfilled?
Whether the company’s personnel, assets, finance, organization, business, etc. are independent? √ 9. Whether there is no horizontal competition between the company and its controlling shareholders and actual controllers √
(2) Internal control
On-site inspection methods:
We reviewed the latest articles of association of listed companies and related systems such as internal audit and entrusted financial management, obtained the list of the company's internal auditors and audit committee, obtained the work plans or work reports of the company's internal audit department and audit committee, reviewed the company's 2025 internal control evaluation report, 2025 internal control audit report and other documents, and conducted interviews with senior managers.
- Whether to establish an internal audit system and establish an internal audit department in accordance with relevant regulations
√ Door (if applicable)
- Whether to establish an internal audit system and set up an internal audit system within six months after the stock is listed?
√Ministry Audit Department (if applicable)
- Whether the composition of the internal audit department and audit committee complies with regulations (if appropriate)
√Use)
- Whether the audit committee meets at least once every quarter to review the internal audit
√Work plans and reports submitted by the accounting department (if applicable)
- Whether the audit committee reports internal audit to the board of directors at least quarterly
√Work progress, quality and major problems discovered (if applicable)
- Does the internal audit department report to the audit committee at least quarterly?
The implementation of the department’s audit work plan and the problems discovered during the internal audit work, etc. (if applicable)
- Whether the internal audit department deposits and uses raised funds at least quarterly
√Conduct an audit if applicable (if applicable)
- Whether the internal audit department reports to the auditor within two months before the end of each fiscal year
√The Planning Committee submits the internal audit work plan for the next year (if applicable)
- Does the internal audit department report to the auditor within two months after the end of each fiscal year?
√The Planning Committee submits the annual internal audit work report (if applicable)
Does the internal audit department submit an internal control evaluation report to the audit committee at least once a year (if applicable)
Is it necessary to engage in venture capital, entrusted financial management, hedging business and other matters?
√Established a complete and compliant internal control system
(3) Information disclosure
On-site inspection methods:
Review the information disclosure documents of listed companies, investor relations registration forms, information disclosed on the Shenzhen Stock Exchange’s interactive website, documents on the transmission and disclosure process of major information, inside information management and insider registration management, information disclosure management systems, internal control audit reports issued by accountants, search for company public opinion reports, and conduct interviews with senior managers.
- Whether the company’s disclosed announcements are consistent with the actual situation √ 2. Whether the company’s disclosed content is complete √ 3. Whether the company’s disclosed matters have not undergone major changes or made important progress √ 4. Whether there are no major matters that should be disclosed but have not been disclosed √ 5. Whether the transmission, disclosure process, confidentiality, etc. of major information are in compliance with the company’s requirements
√Relevant provisions of information disclosure management system
- Whether the investor relations activity record form is timely and interactive at the Shenzhen Stock Exchange
√Easy website publishing
(4) Establishment and implementation of a long-term mechanism to protect the company’s interests from infringement
On-site inspection methods:
Check the company's articles of association and relevant institutional documents; check the details of related transactions, external guarantees, and major external investments; check decision-making procedures and information disclosure materials; analyze the pricing fairness of related transactions and major external investments; check the details of fund transactions between the company and its controlling shareholders, actual controllers and their related parties, as well as relevant internal review documents and information disclosure documents; check the statements of the issuer and its controlling shareholders and actual controllers on whether there is illegal occupation of the issuer's funds; and check the accountants' statement on 2025 A special report on annual non-operating fund occupation and other related fund transactions, and interviews with company executives.
- Whether there is a mechanism to prevent controlling shareholders, actual controllers and their affiliates from directly
√ Or a system that indirectly occupies funds or other resources of listed companies
- Whether the controlling shareholder, actual controller and their related persons do not directly or
√ Indirect occupation of funds or other resources of listed companies
- Whether the review procedures for related-party transactions are in compliance with regulations and the corresponding information disclosure has been performed
√Obligations
- Whether the price of related party transactions is fair √ 5. Whether there is no non-related party transaction √ 6. Whether the review process for external guarantees complies with regulations and fulfills the corresponding information disclosure obligations
√Service
- Whether the guaranteed party has no deterioration in financial status or failure to pay off the guaranteed party when due
√Debts and other situations
- If the guarantee continues to be provided after the guaranteed debt expires, will the relevant obligations be re-performed?
√Approval procedures and disclosure obligations required
(5) Use of raised funds
On-site inspection methods:
We reviewed the company's management and use system of raised funds, reviewed the information disclosure documents and decision-making procedure documents on the use of raised funds, inspected the site of the investment project with raised funds, learned about the project construction progress and operation status, and interviewed the company's senior managers.
- Whether the three-party supervision agreement is signed within one month after the raised funds are received. √ 2. Whether the three-party supervision agreement for the raised funds is effectively implemented. √ 3. Whether the raised funds are not occupied by a third party or entrusted financial management in violation of regulations.
√Situation
- Whether there is no unauthorized change of the purpose of raised funds or temporary
√Replenish working capital, replace advance investment, change implementation location, etc.
- Use idle raised funds to temporarily supplement working capital and invest the raised funds in
Change to permanently replenish working capital or use super-raised funds to replenish working capital
√ If the company fails to pay off the loan or repay the bank loan, whether the company has not carried out the risk during the commitment period.
investment
- Whether the use of raised funds is consistent with the disclosed situation, project progress, investment
√Whether the benefits are consistent with the prospectus, etc.
- Are there no major risks during the implementation of the raised funds project √
(6) Performance
On-site inspection methods:
Conduct on-site inspections of business premises, review listed companies in the same industry and market information, review company regular reports and other information disclosure documents, and interview company senior managers.
Whether there are significant fluctuations in performance √
Is there a reasonable explanation for the large fluctuations in performance √ 3. Compared with comparable companies in the same industry, is there no obvious abnormality in the company’s performance √
(7) Fulfillment of commitments by the company and shareholders
On-site inspection methods:
Check the public commitments of the company and shareholders recorded in periodic reports, prospectuses, etc., and check the implementation of the commitments. 1. Whether the company has fully fulfilled relevant commitments √
- Whether the company’s shareholders have fully fulfilled relevant commitments √
(8) Other important matters
On-site inspection methods:
Cash dividends: Obtain the company’s cash dividend payment vouchers during this continuous supervision period, and compare them with the company’s articles of association and information disclosure documents.
Providing financial assistance to external parties: The company does not provide financial assistance to external parties.
Large-amount fund transactions: Obtain details of the company's large-amount fund transactions and understand the transaction payment objects and reasons for payment.
Major investments or major contracts: Obtain the company's major investments and major contract documents during this continuous supervision period, inquire about the industrial and commercial information of the counterparties of major investments or major contracts, conduct financial sampling on the implementation of major investments and major contracts, and understand the status of prepayments and receivables for major investments and major contracts.
Production and operation environment: Check the company's regular reports and other information disclosure documents, check the company's production and operation environment on-site, check the periodic reports of listed companies in the same industry, and conduct interviews with the company's senior managers. 1. Whether the cash dividend system is fully implemented and disclosed truthfully √
Whether the provision of financial assistance to external parties is legal and compliant, and truthfully disclosed √ 3. Whether large-amount capital transactions have a real transaction background and reasonable reasons √
Whether there are no major changes during the performance of major investments or major contracts
√
or risk
Whether there are no major changes or risks in the company’s production and operation environment √
Whether the problems found by the company in the early stage by regulatory agencies and sponsors have been rectified in accordance with relevant requirements
Problems found during on-site inspection and explanations None
(There is no text below) (This page has no text, it is the signature and seal page of "CITIC Securities Co., Ltd.'s 2025 Continuous Supervision and Regular On-site Inspection Report of Shanghai Hongbo Zhiyuan Pharmaceutical Co., Ltd.")
Sponsor representative:
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Yuan Binlong Li Song
CITIC Securities Co., Ltd.
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