Shanghai Junshi Biosciences : OVERSEAS REGULATORY ANNOUNCEMENT - SHANGHAI JUNSHI BIOSCIENCES CO., LTD. SPECIAL REPORT ON THE DEPOSIT AND ACTUAL USE OF PROCEEDS FOR THE YEAR OF 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SHANGHAI JUNSHI BIOSCIENCES CO., LTD.*

上海君實生物醫藥科技股份有限公司

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 1877)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Reference is made to the "Shanghai Junshi Biosciences Co., Ltd.* Special Report on the Deposit and Actual Use of Proceeds for the Year of 2020" published by Shanghai Junshi Biosciences Co., Ltd.* on the website of the Shanghai Stock Exchange, for reference purpose only. The following is a translation of the official announcement solely for the purpose of providing information. Should there be any discrepancies, the Chinese version will prevail.

The proceeds referred to in this announcement are related to proceeds from the listing of A shares of the Company on the STAR Market of the Shanghai Stock Exchange only, and do not relate to the proceeds from the listing of H shares of the Company on the Stock Exchange of Hong Kong Limited.

By order of the Board

Shanghai Junshi Biosciences Co., Ltd.*

Mr. Xiong Jun

Chairman

Shanghai, the PRC, 30 March 2021

As at the date of this announcement, the board of directors of the Company comprises Mr. Xiong Jun, Dr. Li Ning, Dr. Feng Hui, Mr. Zhang Zhuobing and Dr. Yao Sheng as executive Directors; Dr. Wu Hai, Mr. Tang Yi, Mr. Li Cong, Mr. Yi Qingqing and Mr. Lin Lijun as non-executive Directors; and Dr. Chen Lieping, Mr. Qian Zhi, Mr. Zhang Chun, Dr. Jiang Hualiang and Dr. Roy Steven Herbst as independent non-executive Directors.

• For identification purpose only

Stock Code: 688180 Stock Abbreviation: Junshi Biosciences Announcement No.: Lin 2021-022

Shanghai Junshi Biosciences Co., Ltd.

Special Report on the Deposit and Actual Use of Proceeds

for the Year of 2020

The Board of Directors and all Directors of the Company warrant that the contents of the announcement do not contain any false and misleading representation or material omission, and shall undertake legal liabilities in accordance with the law for the truthfulness, accuracy and completeness of the contents herein.

1. Overview of the Proceeds

In accordance with the "Approval on the Share Registration of the Initial Public Offering of Shanghai Junshi Biosciences Co., Ltd.*" (Zheng Jian Xu Ke [2020] No. 940) (《關於同意上海君實 生物醫藥科技股份有限公司首次公開發行股票註册的批復》(證監許可〔2020〕940號) issued by the CSRC on 20 May 2020, Shanghai Junshi Biosciences Co., Ltd.* (the "Company") was approved to issue 87,130,000 RMB ordinary shares at an issue price of RMB55.50 per share by way of public offering, with the total proceeds amounting to RMB4,835,715,000. Actual net proceeds after deducting issuance expenses amounted to RMB4,496,978,326.73. The above proceeds have become fully available to the Company on 8 July 2020 and RSM China (Special General Partnership) (容誠會計師事務所（特殊普通合夥）) has verified the availability of the proceeds from this public offering, and issued the "Capital Verification Report" (Rong Cheng Yan Zi [2020] No. 230Z0103 (容誠驗字[2020]230Z0103號《驗資報告》) on 8 July 2020. All of the proceeds, after being credited, have been deposited in the special account for proceeds approved by the Board of Directors.

As of 31 December 2020, the Company has used RMB2,066,285,880.23 of the proceeds in aggregate, among which, the proceeds used in aggregate in previous years was RMB0, and the proceeds used in the year of 2020 was RMB2,066,285,880.23, and the balance of the proceeds is RMB2,439,612,158.35. The details are as follows:

		Unit: RMB
	Item	Amount
Total amount of proceeds	4,835,715,000.00
Less: issuance expenses	338,736,673.27
Net proceeds	4,496,978,326.73
Less: amount of proceeds used in aggregate	2,066,285,880.23
Including: amount of proceeds used to replace the self-raised	849,714,305.34
capital previously invested in the designated projects
Amount of expenditure for designated projects	854,333,078.43
Amount of surplus proceeds for permanent replenishment of	362,238,496.46
working capital
Add: Net interest income from proceeds after deducting bank	8,919,711.85
charges and exchange losses
Balance of the proceeds as of 31 December 2020	2,439,612,158.35
II. The Management of the Proceeds
(I)	The management system of proceeds

To standardize the management and usage of the proceeds, to improve the use efficiency of funds, and to protect the interests of investors, the Company, based on its actual situation, formulated the Management Policies for Raised Funds of Shanghai Junshi Biosciences Co., Ltd. (《上海君實生物醫藥 科技股份有限公司募集資金管理制度》) in accordance with relevant laws, regulations and normative documents such as the Company Law of the People's Republic of China (《中華人民共和國公司法》), the Securities Law of the People's Republic of China (《中華人民共和國證券法》) and the Regulatory Guidance for Listed Companies No.2 - Regulatory Requirements for the Administration and Use of Proceeds of the Listed Companies (《上市公司監管指引第2號──上市公司募集資金管理和使用的監 管要求》), the Rules Governing the Listing of Stocks on the STAR Market of the Shanghai Stock Exchange (《上海證券交易所科創板股票上市規則》) and Guideline No. 1 for the Application of Self‑regulatory Rules for Companies Listed on the STAR Market of the Shanghai Stock Exchange - Standardised Operation (《上海證券交易所科創板上市公司自律監管規則適用指引第1號──規範運 作》), and made specific and clear requirements on the deposit, usage and supervision of the proceeds.

1. Tripartite and quadripartite supervision agreements for the proceeds

1. Pursuant to the above laws, regulations and normative documents, the Company has entered into a tripartite supervision agreement with each of the sponsor institution, China International Capital Corporation Limited, and the commercial bank in which the proceeds are deposited. For details, see the "Notice of Initial Public Offering and Listing of Shares on the STAR Market of Shanghai Junshi Biosciences Co., Ltd.*" disclosed on the website of Shanghai Stock Exchange （www.sse.com.cn）on 14 July 2020.
2. On 24 July 2020, the Company held the twenty-fifth meeting of the second session of the Board of Directors and the twentieth meeting of the second session of the Board of Supervisors of the Company, considered and approved the "Resolution on the Addition of New Implementation Entities for Investment Projects and the Entering into of Quadripartite Agreement on Supervision of Special Deposit Accounts for Proceeds" and approved the addition of new implementation entities for Shanghai Junshi Biotechnology Co., Ltd. ("Junshi Biotechnology"), Suzhou Union Biopharm Co., Ltd. ("Suzhou Union Biopharm") and Suzhou Junmeng Biosciences Co., Ltd. ("Suzhou Junmeng") as the implementation entities for "Innovative Drugs Research and Development Projects", and approved the addition of Junshi Biotechnology, Suzhou Union Biopharm and Suzhou Junmeng as new implementation entities for "repayment of bank loans and replenishment of working capital", and approved the establishment of special deposit accounts for the proceeds by the above companies. The independent non-executive directors provided express opinion of consent, and the sponsor institution issued verification opinion. For details, see the "Announcement on the Addition of New Implementation Entities for Investment Projects and the Entering into of Quadripartite Agreement on Supervision of Special Deposit Accounts for Proceeds" (No. Lin 2020-004) disclosed on the website of Shanghai Stock Exchange (www.sse.com.cn) on 25 July 2020 by the Company.
3. On 29 September 2020, the Company held the twenty-seventh meeting of the second session of the Board of Directors and the twenty-second meeting of the second session of the Board of Supervisors of the Company, considered and approved the "Resolution on the Addition of New Implementation Entities for Investment Projects and the Entering into of Quadripartite Agreement on Supervision of Special Deposit Accounts for Proceeds" and approved the addition of Suzhou Junshi Biosciences Co., Ltd., Suzhou Junao Precision Medicine Co., Ltd. and Suzhou Junshi Biotechnology Co., Ltd. as new implementation entities for "repayment of bank loans and replenishment of working capital", and approved the establishment of special deposit accounts for the proceeds by the above companies. The independent non-executive directors provided express

opinion of consent, and the sponsor institution issued verification opinion. For details, see the "Announcement on the Addition of New Implementation Entities for Investment Projects and the Entering into of Quadripartite Agreement on Supervision of Special Deposit Accounts for Proceeds" (No. Lin 2020-026) disclosed on the website of Shanghai Stock Exchange (www.sse.com.cn) on 30 September 2020 by the Company.

1. On 16 December 2020, the Company held the thirty-first meeting of the second session of the Board of Directors and the twenty-fifth meeting of the second session of the Board of Supervisors of the Company, considered and approved the "Resolution on the Addition of New Implementation Entities for Investment Projects and the Entering into of Quadripartite Agreement on Supervision of Special Deposit Accounts for Proceeds" and approved the addition of TOPALLIANCE BIOSCIENCES INC. ("TOPALLIANCE"), a wholly-owned subsidiary, as new implementation entities for "research and development project of innovative drugs", "repayment of bank loans and replenishment of working capital", and approved the establishment of special deposit accounts for the proceeds by the above companies. The independent non-executive directors provided express opinion of consent, and the sponsor institution issued verification opinion. For details, see the "Announcement on the Addition of New Implementation Entities for Investment Projects" (No. Lin 2020-051) disclosed on the website of Shanghai Stock Exchange (www.sse.com.cn) on 18 December 2020 by the Company.
2. The above tripartite and quadripartite agreements on the supervision of special deposit accounts for proceeds do not have material difference with the "Tripartite Agreements on the Supervision of Special Deposit Accounts for Proceeds (Template)" of Shanghai Stock Exchange, and the Company has strictly complied with such agreements in utilizing the proceeds.
3. 1. The deposit in special deposit account for proceeds

As of 31 December 2020, the deposit of the proceeds is as below:

					(Unit: RMB 0'000)
					Amount of
No.	Name of Bank	Name of Account	Account No.	Currency	original	RMB amount
					currency
1	Bank of Shanghai,	Shanghai Junshi	31903303004120409	RMB
	Nanhui Sub-branch	Biosciences Co., Ltd.	46,232.26	46,232.26
2	China Construction	Shanghai Junshi
	Bank Corporation,	Biosciences Co., Ltd.	31050136360000004584	RMB
	Shanghai Branch Office		28,038.75	28,038.75
	Sales Department
3	China Merchants Bank,	Shanghai Junshi	755928673210110	RMB
	Shanghai Changle	Biosciences Co., Ltd.	135,303.05	135,303.05

	Sub-branch*1
4	China Merchants Bank,	Shanghai Junshi
	Shanghai Pilot Free	Biosciences Co., Ltd.	755928673210866	RMB		15,052.42		15,052.42
	Trade Zone Sub-branch
	office
5	China Merchants Bank,	Shanghai Junshi
	Shanghai Changle	Biotechnology Co.,	121932224510566	RMB		0.07		0.07
	Sub-branch	Ltd.
6	China Merchants Bank,	Suzhou Union
	Shanghai Changle	Biopharm	512908464210566	RMB		9.30		9.30
	Sub-branch	Biosciences Co., Ltd.
7	China Merchants Bank,	Suzhou Junmeng
	Shanghai Changle	Biosciences Co., Ltd.	512907597610366	RMB		447.53		447.53
	Sub-branch
8	China Merchants Bank,	Suzhou Junshi
	Shanghai Changle	Biosciences Co., Ltd.	512907093910166	RMB		13.30		13.30
	Sub-branch
9	China Merchants Bank,	Suzhou Junao
	Shanghai Changle	Medicine Co., Ltd.	512907526110866	RMB		-		-
	Sub-branch
10	China Merchants Bank,	Suzhou Junshi
	Shanghai Changle	Biosciences Co., Ltd.	512907977810266	RMB		-		-
	Sub-branch
11	China Merchants Bank,	TopAlliance				2,710.76		17,687.42
	Offshore Financial	Biosciences Inc.	OSA121931739432401	US dollars
	Center
12	Citibank cheque	TopAlliance	205199102	US dollars		180.40		1,177.11
	account*2	Biosciences Inc
		Total					243,961.21
	Note: 1. The	balance of the Company in China Merchants Bank,	Shanghai	Changle

Sub-branch includes RMB certificate of deposit of RMB300 million;

2. The balance as of 31 December 2020 is RMB2,439.6121 million, which includes the balance of deposits in special account for proceeds amounting to RMB2,250.9668 million and US$27.1076 million (equivalent to RMB176.8742 million), respectively, and the difference is RMB11.7711 million, which is the expenditure for designated projects amounting to US$1.8040 million (equivalent to RMB11.7711 million) which was settled but not paid and deposited in the Citibank cheque account (No.: 205199102) of our subsidiary TopAlliance.

The subsidiary, TopAlliance, established in the U.S. mainly conducts daily settlement through issuing cheques in commercial activities. Its bank account (No.: 205199102) in Citibank at the place where it is located is the designated deduction account. To improve capital payment efficiency, after

application and approval based on specific demand of designated projects, the Company transferred funds from China Merchants Bank's special account for proceeds to the Citibank cheque account to pay the expenses incurred by implementing "Innovative Drugs Research and Development Projects". Since the day of transfer coincided with American's traditional holiday Christmas Day, certain payment was postponed to January 2021; moreover, some suppliers did not cash their checks issued in December 2020 in time. Consequently, US$1.8040 million was not actually paid by 31 December 2020, and the balance has been paid by the end of February of 2021.

1. Actual Use of the Proceeds in this Year

1. The use of funds for designated projects

For details of the actual use of the proceeds as of 31 December 2020, please see "Appendix I: Comparison Table for the Use of Proceeds".

(2) The use and replacement of the proceeds on the designated projects

On 28 August 2020, the "Resolution on the Replacement of Self-raised Funds Invested in Advance with Proceeds from the Issuance" was considered and approved at the twenty-sixth meeting of the second session of the Board of Directors and the twenty-first meeting of the second session of the Board of Supervisors, where consent was given for the Company to replace the self-raised funds invested in advance in investment projects with proceeds amounting to RMB849,714,300, and the replacement of self-raised funds used in advance for the payment of issuance expenses with proceeds amounting to RMB3,646,500. In aggregate, the Company will replace self-raised funds invested in advance with proceeds amounting to RMB853,360,800. Independent non-executive directors of the Company provided express consent to the above matters. The sponsor institution issued verification opinions and RSM China (Special General Partnership) issued the "Verification Report on Shanghai Junshi Biosciences Co., Ltd.* Self-Raised Funds Invested in Advance in the Investment Projects with Proceeds Raised from the Issuance" (RSM Zhuanzi [2020] No. 230Z1995) in respect of the use of the above self-raised funds invested in advance in the investment projects. For details, please refer to the "Announcement on the Replacement of Self-raised Funds Invested in Advance with Proceeds from the Issuance" which has been disclosed on the website of Shanghai Stock Exchange (www.sse.com.cn) on 29 August 2020 (No.: Lin 2020-011).

（3）Use of idle proceeds to temporarily replenish liquidity

As of 31 December 2020, the Company had not used idle proceeds to temporarily replenish

liquidity.

（4）Conduct cash management of idle proceeds and invest on relevant products

On 29 September 2020, the "Resolution on Cash Management by Using Temporarily Idle Proceeds" was considered and approved at the twenty-seventh meeting of the second session of the Board of Directors and the twenty-second meeting of the second session of the Board of Supervisors for the Company to manage its cash by using temporarily idle proceeds not exceeding RMB3,800,000,000 provided that it does not affect the normal progress of the Company's investment plans funded with proceeds, and it is used to purchase investment products with high security and good liquidity (including but not limited to negotiable deposits, call deposits, time deposits, certificates of deposit, income certificates, government bonds, structured deposits, etc.), which are valid within 12 months from the date of consideration and approval by the Board of Directors. Within the aforesaid quota and time limit, the Company could use it on a cyclic rolling basis. Independent non-executive directors of the Company provided express consent to the above matters, and the sponsor institution issued verification opinions. For details, please refer to the "Announcement on Cash Management by Using the Temporarily Idle Proceeds" (No.: Lin 2020-025) disclosed by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on 30 September 2020.

As of 31 December 2020, the cash balance of temporarily idle proceeds used by the Company was RMB300,000,000.00. The details are as below:

					Unit: RMB0'000
Bank	Product	Type of Deposit	Amount	Maturity date		Annual Yield
China Merchants Bank,	Unit Certificate of	Certificates of deposit	30,000.00	Transferable	at	3.30%
Changle Sub-branch in	deposit		any time
Shanghai	No.784 in 2020

（5）Permanent replenishment of working capital or repayment of bank loans with surplus proceeds

On 29 September 2020, the "Resolution on the Permanent Replenishment of Liquidity by Using Part of the Surplus Proceeds" was considered and approved at the twenty-seventh meeting of the second session of the Board of Directors and the twenty-second meeting of the second session of the Board of Supervisors for the Company to permanently replenish its liquidity by using part of the surplus proceeds amounting to RMB539,093,400. Independent non-executive directors of the Company provided express consent to the above matters, and the sponsor institution issued verification opinions. This matter was considered and approved at the third extraordinary general meeting of 2020 of the Company on 16 November 2020. For details, please refer to the "Announcement on Cash Management by Using the Temporarily Idle Proceeds" (Announcement No.: Lin 2020-024) disclosed by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on 30 September 2020.

As of 31 December 2020, the Company had used surplus proceeds of RMB362.2385 million for permanent replenishment of working capital.

（6）The circumstance of surplus proceeds being used for projects under construction and new projects (including the acquisition of assets, etc.)

As of 31 December 2020, the Company had not used surplus proceeds for projects under construction and new projects.

（7）Use of saved proceeds

As the implementation of the designated project has not been completed, the Company did not use the saved proceeds of the designated project for other designated projects or non-designated projects during the reporting period.

IV. Change of use of proceeds for designated projects

As of 31 December 2020, the Company did not change the use of proceeds for designated projects.

V. Problems in the use and disclosure of proceeds

Save for those disclosed in Note 2 "balance of deposits in the Citibank cheque account of our subsidiary TopAlliance" to "(III) The deposit in special deposit account for proceeds" under section

1. in the special report, the Company used the proceeds in accordance with the provisions and requirements of relevant laws, regulations and normative documents, and disclosed the use of the proceeds in a timely manner, and there was no non-compliance in the use of the proceeds.
   VI. Concluding opinion on the verification report issued by the accounting firm on the deposit and use of the Company's proceeds for the year
   Upon verification, RSM China (Special General Partnership) is of the opinion that,
   The "Special Report on the Deposit and Use of Proceeds of the Company" of the Company was prepared in accordance with the above-mentioned Regulatory Guidelines for Listed Companies No.2-Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies (CSRC Announcement [2012] No.44) and relevant regulations of the exchange in all major aspects, which fairly reflected the actual deposit and use of proceeds by the Company in 2020.
   VII.Concluding opinion of the special verification report issued by the sponsor institution on the deposit and use of the Company's raised funds for the year

Save for those disclosed in Note 2 "balance of deposits in the Citibank cheque account of our subsidiary TopAlliance" to "(III) The deposit in special deposit account for proceeds" under section

1. in the verification Opinion of the China International Capital Corporation Limited on the Deposit and Actual Use of the Raised Funds of Shanghai Junshi Biosciences Co., Ltd. in 2020, the use of proceeds in 2020 of the Company has complied with relevant laws, regulations and normative documents such as the Rules Governing the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, Measures for the Administration of Funds Raised by Listed Companies of Shanghai Stock Exchange (2013 Revision) and the Management Policies for Raised Funds of Shanghai Junshi Biosciences Co., Ltd. and the Company has timely performed the information disclosure obligation. There is no change on the use of proceeds in effect and damages to the interests of the Company and the shareholders.

VIII. Announcement Appendices of Online Disclosure

1. Verification opinion on the deposit and actual use of proceeds by Shanghai Junshi Biosciences Co., Ltd. * in 2020 from China International Capital Corporation Limited;
2. Verification report on the deposit and actual use of proceeds in 2020 of Shanghai Junshi Biosciences Co., Ltd. * from RSM China (Special General Partnership);
3. Independent Opinions of the Independent Non-executive Directors on Relevant Matters of the Thirty-fourth Meeting of the Second Session of the Board of Directors of Shanghai Junshi Biosciences Co., Ltd.*.

Appendix 1: Comparison Table on the Use of Proceeds Raised (2020)

Announcement is hereby given.

Shanghai Junshi Biosciences Co., Ltd.*

Board of Directors

31 March 2021

Schedule 1：

Comparison Table on the Use of the Proceeds Raised for the Year 2020

Unit: RMB0'000

Total amount of proceeds

449,697.83

Total proceeds invested during the year

206,628.59

Total amount of proceeds with purpose changed

-

Total proceeds invested cumulatively

206,628.59

Proportion of total amount of proceeds with purpose

-

changed

Whether

the project

Total

Total

Committed

Difference between

Investment

Whether

Whether

has been

amount of

amount

Amount

Accumulated

accumulated amount

Date when the

Benefit

Committed

amount of

progress as of

the

project

investment

changed

committed

investment

invested as

invested

amount invested

invested and committed

the end of the

project meets

realized

expected

feasibility

projects

(including

investment

after

of the end of

during the

as of the end of

amount invested as of

period (%) (4)

the scheduled

during the

benefits are

has changed

partial

of

adjustment

the period

year

the period (2)

the end of the period

＝(2)/(1)

usable status

year

realized

significantly

changes)

proceeds

(1)

(3)＝(2)-(1)

(if any)

Research and

development

projects of

Nil

120,000.00

120,000.00

120,000.00

47,477.99

47,477.99

-72,522.01

39.56

N/A

N/A

N/A

No

innovative

drugs

Junshi Biotech

Partially

Industrialization

Nil

70,000.00

70,000.00

70,000.00

70,000.00

70,000.00

-

100.00

N/A

N/A

No

completed

Lingang Project

Repayment of

bank loans and

Nil

80,000.00

80,000.00

80,000.00

52,926.75

52,926.75

-27,073.25

66.16

N/A

N/A

N/A

No

replenishment of

liquidity

Surplus proceeds

N/A

179,697.83

179,697.83

53,909.34

36,223.85

36,223.85

-17,685.49

67.19

N/A

N/A

N/A

No

Total

449,697.83

449,697.83

323,909.34

206,628.59

206,628.59

-117,280.75

-

Reasons for not

meeting the

N/A

scheduled progress (by

specific investment project)

Explanations for significant changes in project feasibility

N/A

On 28 August 2020, the "Resolution on the Replacement of Self-raised Funds Invested in Advance with Proceeds from the

Issuance" (《關於使用募集資金置換預先投入的自籌資金的議案》) was considered and approved at the twenty-sixth

meeting of the second session of the Board of Directors and the twenty-first meeting of the second session of the Board of

Supervisors of the Company for the Company to replace the self-raised funds invested in advance in investment projects with

Upfront investment and replacement of investment projects funded

the proceeds raised amounting to RMB849,714,300 , the total amount of issuance expenses paid in advance with the proceeds

with raised proceeds

from the issuance to replace the self-raised funds amounted to RMB3,646,500 and a total amount of RMB 853,360,800 of the

proceeds from the issuance has been utilized to replace the self-raised funds invested in advance in investment projects. Such

replacement has been verified by RSM China (Special General Partnership) (容誠會計師事務所(普通特殊合夥)), which

issued the "Verification Report on the Investment Projects Funded with Self-raised Funds in Advance by Shanghai Junshi

Biosciences Co., Ltd.*" (Rong Cheng Zhuan Zi [2020] No. 230Z1995) (《關於上海君實生物醫藥科技股份有限公司以自籌

資金預先投入募集資金投資項目的鑒證報告》(容誠專字[2020]230Z1995

號)).

Temporary replenishment of liquidity with idle proceeds

Nil

	In order to improve use efficiency of the idle proceeds, on 29 September 2020, the "Resolution on the Permanent
	Replenishment of Liquidity by Using Part of the Surplus Proceeds" (《關於使用部分超募資金永久補充流動資金的議案》)
	was considered and approved at the twenty-seventh meeting of the second session of the Board of Directors and the
	twenty-second meeting of the second session of the Board of Supervisors for the Company, under the condition that the
Utilization of idle proceeds for cash management by investing	normal operations of the Company's investment projects funded with raised proceeds will not be affected, to permanently
replenish its liquidity by using idle proceeds of up to RMB3.8 billion for cash management to purchase investment products
financial products
with high security and good liquidity, including but not limited to agreement deposits, call deposits, time deposits,
	large-denomination certificates of deposit, income certificates, treasury bonds, structured deposits, etc.), which shall be valid
	for 12 months from the date of approval by the Board of Directors. Within the aforesaid quota and term, the Company can use
	it on a cyclic rolling basis. As of 31 December 2020, the Company has used the temporarily idle proceeds to purchase
	corporate large-denomination certificates of deposit amounting to RMB300,000,000.

	Under the condition that the capital needs of the investment projects funded with raised proceeds and the normal operations of
	the investment projects will not affected, in order to meet the Company's liquidity demand, improve use efficiency of the
	proceeds and reduce financial cost, on 29 September 2020, the "Resolution on the Permanent Replenishment of Liquidity by
Utilization of surplus proceeds for permanent replenishment of	Using Part of the Surplus Proceeds" 《( 關於使用部分超募資金永久補充流動資金的議案》) was considered and approved at
liquidity and repayment of bank loans	the twenty-seventh meeting of the second session of the Board of Directors and the twenty-second meeting of the second
	session of the Board of Supervisors for the Company to permanently replenish its liquidity by using part of the surplus
	proceeds amounting to RMB539,093,400. As of 31 December 2020, the Company has used the surplus proceeds for
	permanently replenishment of liquidity amounting to RMB362,238,500.
Balance of proceeds and the reasons therefor	Nil
Other uses of proceeds	Nil