Shan Dong Kexing Bioproducts Co.Ltd(688136) : special report on the deposit and actual use of raised funds in 2021

Securities code: Shan Dong Kexing Bioproducts Co.Ltd(688136) securities abbreviation: Shan Dong Kexing Bioproducts Co.Ltd(688136) Announcement No.: 2022018 Shan Dong Kexing Bioproducts Co.Ltd(688136)

Special report on the deposit and actual use of raised funds in 2021

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.

In accordance with the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds by listed companies, the guidelines for the self-discipline supervision of listed companies on the science and Innovation Board of Shanghai Stock Exchange No. 1 – standardized operation, and the Listing Rules of shares on the science and innovation board of Shanghai Stock Exchange, Shan Dong Kexing Bioproducts Co.Ltd(688136) (hereinafter referred to as “the company” or “the company”) the special report of the board of directors on the deposit and actual use of raised funds in 2021 is as follows: I. Basic information of raised funds

According to the reply on Approving the registration of Shan Dong Kexing Bioproducts Co.Ltd(688136) initial public offering (zjxk [2020] No. 2655) issued by the China Securities Regulatory Commission, the company issued 49675300 ordinary shares in the initial public offering, with a par value of 1.00 yuan per share and an issue price of 22.33 yuan per share. The total amount of funds raised in this offering was 110924944900 yuan, After deducting the issuance expenses such as underwriting and recommendation of 11460852984 yuan, the net amount of raised funds was 99464091916 yuan.

All the above-mentioned raised funds have been in place, and the capital has been verified by Dahua Certified Public Accountants (special general partnership), and the capital verification report dhyz [2020] No. Tibet Development Co.Ltd(000752) was issued on December 7, 2020.

The raised capital invested in the raised capital investment project (hereinafter referred to as “raised investment project”) in this period is 540473200 yuan. As of December 31, 2021, the use and balance of the raised capital are as follows:

Unit: Yuan

Use of project raised funds

Total raised funds 110924944900

Less: issuance expenses 11460852984

The net amount of raised funds is 99464091916

Less: accumulative investment amount of raised investment project 57619651345

Less: balance of purchase of financial products, time deposits and structured deposits 0.00

Plus: net amount of bank interest income deducting handling charges 1231009029

As of December 31, 2021, the balance of raised funds was 43075449600

2、 Management of raised funds

In order to standardize the management and use of the raised funds and protect the rights and interests of investors, the company has formulated the Shan Dong Kexing Bioproducts Co.Ltd(688136) raised funds management system (hereinafter referred to as the “raised funds management system”) in accordance with the company law, the securities law, the Listing Rules of science and Innovation Board of Shanghai Stock Exchange and other laws and regulations and in combination with the actual situation of the company. The company shall deposit the raised funds in the special account for raised funds approved by the board of directors for centralized management, and manage and use the raised funds in accordance with the specified requirements.

On December 8, 2020, the company signed the tripartite supervision agreement on the storage of special account for raised funds with China Securities Co.Ltd(601066) (hereinafter referred to as the “sponsor”) and the commercial bank storing the raised funds. On June 21, 2021, the company signed the tripartite supervision agreement with Hua Xia Bank Co.Limited(600015) Shenzhen Science and Technology Park sub branch, the sponsor Shenzhen Kexing Pharmaceutical Co., Ltd. (hereinafter referred to as “Shenzhen Kexing pharmaceutical”), a wholly-owned subsidiary, signed the four party supervision agreement on the storage of raised funds in the special account. Strict examination and approval procedures shall be implemented for the use of raised funds to ensure that the special funds are used for special purposes; The regulatory agreement clearly stipulates the relevant responsibilities and obligations of the issuer, its subsidiaries, recommendation institutions and commercial banks that deposit the raised funds, and defines the rights and obligations of all parties.

As of December 31, 2021, the storage of raised funds of the company and its subsidiaries is listed as follows: unit: Yuan

Account opening entity bank name bank account number closing date balance storage method

China Construction Bank Corporation(601939) Shenzhen Zhenhua 442501 Shenzhen Sed Industry Co.Ltd(000032) 09181813011942944 current account

Sub branch

China Everbright Bank Company Limited Co.Ltd(601818) Shenzhen Shennan 782101808038210664139340150 current account

East Road sub branch

Made by Kexing biology China Merchants Bank Co.Ltd(600036) Shenzhen Bao’an sub branch 53190225071050312595503263 current account

Pharmaceutical Co., Ltd. Industrial And Commercial Bank Of China Limited(601398) Shenzhen Hongwei 4 Shenzhen Kaifa Technology Co.Ltd(000021) 92007626938040435797 current

Company sub branch

Bank Of China Limited(601988) Zhangqiu sub branch 211742709194772699590 current account

Ping An Bank Co.Ltd(000001) Shenzhen times finance 1582654123009140341471 current

Sub branch

Bank Of China Limited(601988) Qianhai Shekou branch 77707413867626070451 current account

Shenzhen Kexing Pharmaceutical Hua Xia Bank Co.Limited(600015) Shenzhen Science and Technology Park sub branch 108790 Ping An Bank Co.Ltd(000001) 690374449115934 current account

Industry Co., Ltd

Total 43075449600/

Note:

1. During the reporting period, Hua Xia Bank Co.Limited(600015) Shenzhen Science Park sub branch received a transfer of RMB 50 million from China Merchants Bank Co.Ltd(600036) Shenzhen Bao’an sub branch on July 5, 2021 for the upgrading and construction project of the R & D center; 2. Shenzhen Kexing Pharmaceutical Co., Ltd. Hua Xia Bank Co.Limited(600015) Shenzhen Science and Technology Park sub branch, the balance of funds raised at the end of 2021 includes “seven days pass”

4418632447 yuan was deposited in the virtual sub account under the special account for raised funds (Account No.: 108790 Ping An Bank Co.Ltd(000001) 71375).

3、 Actual use of raised funds in this year (I) use of funds for projects invested with raised funds

As of December 31, 2021, the use of the company’s raised funds is detailed in Schedule 1 comparison table of the use of raised funds. (II) early investment and replacement of raised investment projects.

On April 22, 2021, the company held the 22nd Meeting of the first board of directors, deliberated and passed the proposal on the company’s use of raised funds to replace self raised funds invested in advance, and agreed to use 5573155147 yuan of raised funds to replace self raised funds invested in advance.

Dahua Certified Public Accountants (special general partnership) has issued (dahuhe Zi [2021] No. 005285) “assurance report on Shan Dong Kexing Bioproducts Co.Ltd(688136) pre investment of raised funds in investment projects with self raised funds”. The board of supervisors and independent directors expressed explicit consent to the above-mentioned company’s use of raised funds to replace self raised funds invested in advance, and the recommendation institution China Securities Co.Ltd(601066) also expressed verification opinions. (III) temporary replenishment of working capital with idle raised funds.

As of December 31, 2021, the company has not used idle raised funds to temporarily supplement working capital. (IV) cash management of idle raised funds and investment in related products.

On December 21, 2020, the company held the 19th meeting of the first board of directors, deliberated and approved the proposal on using some idle raised funds and self owned funds for cash management, and agreed that the company would use some idle raised funds with a maximum balance of no more than 550 million yuan (including 550 million yuan) for cash management without affecting the normal implementation of the company’s raised investment projects and ensuring the safety of the raised funds. Within the above limit, the funds can be used on a rolling basis, and the service life is valid within 12 months from the date of deliberation and approval by the board of directors. The board of supervisors and independent directors expressed their explicit consent, and the recommendation institution also expressed its verification opinions.

As of December 31, 2021, the company’s use of the raised funds is strictly in accordance with the provisions of the raised funds management system and the tripartite supervision agreement on the storage of raised funds.

As of December 31, 2021, the balance of the company’s raised funds to purchase financial products was RMB 10000. During the reporting period, the company used some temporarily idle raised funds for cash management to purchase relevant products. See the following table for details:

Unit: Yuan

Deposit bank product name product type purchase amount purchase date maturity date redemption

Gold counting series bullish structured deposits in three-tier area 1 Shanghai Pudong Development Bank Co.Ltd(600000) China Vanke Co.Ltd(000002) 021 / 1 / 182021 / 4 / 19 is a 90 day structured deposit

Gold counting series bullish structured deposit in three-tier area 1 Shanghai Pudong Development Bank Co.Ltd(600000) China Vanke Co.Ltd(000002) 021 / 5 / 262021 / 6 / 28 is China Merchants Bank Co.Ltd(600036) Shenzhen 32 day structured deposit

Shenzhen Bao’an sub branch dianjin series aggressive interval structural deposit 100000 China Vanke Co.Ltd(000002) 021/9/6 2021/9/30 is a cumulative 21 day structural deposit

Dianjin series aggressive bearish

31 day structured deposit in two-tier interval 100000 China Vanke Co.Ltd(000002) 021 / 10 / 282021 / 11 / 29

Exchange rate pegging in 2021

Structured deposit customized second structured deposit 50000 China Vanke Co.Ltd(000002) 021 / 2 / 2 2021 / 5 / 2 is a term product 36