Kanghong Pharmaceutical closes special fundraising account for project completion

Chengdu Kanghong Pharmaceutical Group Co., Ltd. announced the deregistration of one of its special accounts for raised funds, specifically an account held at the Pengzhou Branch of Bank of China Co., Ltd. The account was associated with the "Jisheng Pharmacy Technical Transformation and Supporting Production Project." The company confirmed that the raised funds for this project have been fully expended.

The remaining balance of the project funds, totaling RMB631,106.13, has been transferred to the company's basic deposit account to permanently supplement working capital. The deregistration of the account was completed on October 23, 2025. Following the closure of this special account, the corresponding tripartite supervision agreement for raised funds has also been terminated.

This account was originally established following the company's initial public offering of 4,560.00 million shares in 2015, which raised a net amount of RMB57,624.77 million after deducting underwriting and sponsorship fees. The company also raised RMB1,609,357,000.00 net from the public issuance of 16.30 million convertible corporate bonds in 2020. The company has diligently managed these funds in compliance with relevant regulations and supervision agreements.