Shenghe Biotechnology-B (02898) announced on June 28, 2024 that its indirect wholly-owned subsidiary, Sunho HK (as a subscriber), entered into a subscription letter. Sunho HK agrees to subscribe to these funds (North Rock, Prudent Wealth, and Vanguard) in accordance with the terms of the subscription letter.

In order to improve the efficiency of funds and increase the return on funds, the group reasonably uses its surplus cash for financial management purposes to subscribe to these funds and earn extra income without affecting normal operations. These funds provide the group with potential returns better than the general commercial bank deposit rates. The group has implemented adequate and appropriate financial management procedures, and the subscription matters are conducted in accordance with relevant procedures. As the subscription matters are paid from internal resources of the group (excluding funds raised from global sales by the company), and the funds can be redeemed flexibly, the directors believe that the subscription matters will not affect the group's sufficient operating capital or business. The company will continue to closely and effectively monitor and manage these fund investments.