Summary of Key Points Core Viewpoint The report provides an overview of the fundraising activities and the utilization of raised funds by Hainan Huluwa Pharmaceutical Group Co., Ltd. for the first half of 2025, highlighting the total amount raised, expenses incurred, and the allocation of funds to various projects. Fundraising Basic Situation - The company raised a total of RMB 208,119,000.00 by issuing 40,100,000 shares at RMB 5.19 per share, with net proceeds amounting to RMB 173,119,000.00 after deducting underwriting fees of RMB 35,000,000.00 [1][2]. - The funds were deposited into a regulatory account managed by the lead underwriter, CITIC Securities Co., Ltd. [1]. Fundraising Usage and Balance - As of June 30, 2025, the total amount of raised funds was RMB 208,119,000.00, with total expenses of RMB 57,079,347.77, resulting in a net amount of RMB 151,039,652.23 [2]. - The remaining balance of the raised funds at the end of the period was RMB 11,878,482.50 after accounting for various expenditures and interest income [2][4]. Fund Management and Storage - The company established a dedicated account for the management of raised funds, adhering to relevant regulations and guidelines to ensure proper usage and protection of investor interests [2][3]. - A tripartite supervision agreement was signed with the banks and the underwriter to clarify the rights and obligations of all parties involved [2][3]. Project Adjustments and Fund Allocation - The company adjusted the implementation of the "Marketing System Construction and Brand Promotion Project" to be managed by its wholly-owned subsidiary, Hainan Huluwa Pharmaceutical Co., Ltd. [3]. - The company decided to reallocate funds from the "Pediatric Drug Research Project" to other urgent drug research projects due to delays in the original project [10][11]. Financial Performance and Future Outlook - The company reported that the fundraising projects do not directly generate economic benefits, making it challenging to assess their individual performance [6][11]. - The long-term benefits of the drug research projects are expected to enhance the company's core competitiveness and market presence [6][7]. Compliance and Disclosure - The company confirmed compliance with all relevant laws and regulations regarding the use of raised funds and timely disclosure of information [12][13]. - There were no violations in the use of raised funds, and all disclosed information accurately reflects the company's financial activities [12].