Renhe Pharmacy reallocates funds, terminates projects to bolster working capital

Renhe Pharmacy (SZSE:000650) has approved adjustments to its fund-raising projects, including the completion and termination of certain initiatives. The remaining capital will be permanently allocated to replenish working funds. The company will adjust the "Female Physiological Health Products Production Line Digital Intelligent Technology Upgrade, Relocation and Expansion Project" and terminate the "Digital Health and Disinfection/Antimicrobial Products Production Line Technology Upgrade, Relocation and Expansion Project." Surplus funds from the terminated projects, totaling CNY 1,365.41, will be used to enhance the company's daily operations and development.

The decision, approved by the board of directors on December 9, 2025, reflects market changes and the need to optimize capital utilization. The board believes these adjustments align with Renhe Pharmacy's long-term development strategy and will not harm shareholder interests. The total raised capital for these projects was CNY 83,384.65, with CNY 11,906.54 already invested, leaving CNY 4,018.72 in remaining funds from these two projects for reallocation.

This move follows prior adjustments in 2022, which saw the termination of the "Renhe Xianghe Industrial Hemp Comprehensive Utilization Industrial Project" and changes to other projects. The company's audit committee and board of directors have reviewed and approved these latest changes, which will now be submitted to shareholders for approval.