Core Viewpoint - The company has established multiple special accounts for fundraising and has undergone changes in the management and usage of these funds, ensuring compliance with regulatory requirements and optimizing the use of idle funds for cash management and project financing [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20]. Fundraising and Account Management - On June 30, 2020, the company signed a five-party supervision agreement for special fundraising accounts with its subsidiaries and banks, establishing accounts at Guangfa Bank and China Construction Bank [1]. - The company has made several changes to its special fundraising accounts, including the establishment of new accounts and the cancellation of old ones, ensuring that all funds are properly managed and transferred [2][3]. - As of September 30, 2025, the company reported a total of RMB 64,276.06 million in invested fundraising, with RMB 8,000.00 million in idle funds managed for cash management purposes [12][17]. Fund Usage and Project Changes - The company has utilized its fundraising for various projects, with specific changes in project funding allocations to optimize resource use and enhance project efficiency [5][6][18][24][25][26]. - The company has received government subsidies totaling approximately RMB 49.89 million, which have contributed to reducing project costs and improving fundraising efficiency [6]. - The company has made adjustments to its project focus, shifting resources towards HIV-related drug development and other strategic areas, while slowing down projects in the oncology sector due to increased competition and resource constraints [24][26][27][28]. Economic Benefits and Performance - The company has reported significant sales revenues from its new drug projects, with sales of RMB 4,884.38 million, RMB 13,354.27 million, and RMB 18,516.06 million for the years 2023, 2024, and the first nine months of 2025, respectively [32]. - The raw material production and research project has achieved a financial internal rate of return of 27.73% and a payback period of 6.50 years, indicating strong economic viability [34]. - The company has successfully completed several clinical projects, with ongoing research expected to yield further economic benefits in the future [18][32][34].

Core Viewpoint - The company has approved the use of its own funds and bank acceptance bills to pay for fundraising projects, with plans to replace these with raised funds later, ensuring the normal implementation of fundraising projects [1][6][7] Summary of Fundraising Situation - The company raised a total of RMB 839.4 million by issuing 60 million shares at RMB 13.99 per share, with total issuance costs amounting to RMB 79.83 million [1][2] - The funds were fully received by July 13, 2020, and have been managed in a dedicated account as per regulatory requirements [1][2] Summary of Investment Projects - As of June 30, 2025, the raw material drug production R&D project has been completed, while other fundraising projects are ongoing [2][3] - Specific projects include the Phase III clinical project for Aibond (艾诺韦林片) and the ACC008 project, with total investments of RMB 53.22 million and RMB 38.60 million respectively [3][4] Reasons for Using Own Funds - The company has used its own funds and bank acceptance bills for several reasons, including the need to pay employee salaries and taxes, which cannot be paid directly from the fundraising account [4][5] - Additionally, payments for overseas equipment and services require foreign currency, which cannot be processed through the fundraising account [4][5] Operational Process for Fund Replacement - The company will regularly compile a detailed list of payments made with its own funds and bank acceptance bills, which will be approved by the financial department [5][6] - After approval, equivalent amounts will be transferred from the fundraising account to replace the funds used [5][6] Impact on Daily Operations - The use of own funds and bank acceptance bills is expected to enhance the efficiency of fund utilization without affecting the normal operation of fundraising projects or the company's daily business [6][7] Review Procedures - The board and supervisory committee have approved the proposal to use own funds and bank acceptance bills, which does not require shareholder approval [6][7] - The proposal aligns with regulatory requirements and does not alter the intended use of the raised funds [6][7]