Yixintang to use company funds for project expenses, raised funds to replace

Yixintang Pharmaceutical Group announced that its board of directors approved the use of self-owned funds to pay for portions of proceeds-funded project expenses, with a subsequent equivalent replacement from raised funds. This decision, approved on September 29, 2025, aims to enhance operational efficiency and ensure smooth project progression. Dongxing Securities, the company's sponsor, issued a verification opinion confirming compliance with relevant regulations.

The company's callable bonds, issued on April 19, 2019, raised a net amount of CNY 59,603.54 million. As of June 30, 2025, CNY 24,624.60 million has been invested in projects, with a remaining balance of CNY 38,868.44 million. Key projects include the "Traditional Chinese Medicine Production Capacity Expansion Project," "Information Technology Construction Project," and "Yixintang (Sichuan) Greater Health Smart Medical Base Phase I Logistics Center Project."

The resolution allows Yixintang to use its own funds for personnel salaries, social security, taxes, and various materials for these projects, subsequently replacing these amounts from the dedicated raised funds account within six months. This strategy is adopted due to regulatory requirements for salary payments and tax remittances through basic bank accounts, and to streamline procurement processes for diverse project materials.