Galunhui, November 11th, Hainan Huluwa Pharmaceutical Group (605199.SH) announced that the original "Pediatric Drug Research and Development" project includes three pharmaceutical research and development sub-projects for children's bronchitis and coughing asthma granules, children's accumulation granules, and children's pneumonia stickers. It plans to raise 50 million yuan in funds. As of October 31, 2024, a total of 20.1917 million yuan of raised funds has been used, with a remaining balance of 30.5728 million yuan (including interest) yet to be deployed. Due to factors such as the relatively high recruitment difficulty of children in clinical trials for pediatric medications, the research and development progress of the above pharmaceutical R&D projects lags behind previous expectations, leading to an extended R&D period. At the same time, the company has significantly increased its layout of pharmaceutical R&D projects in recent years, with several ongoing projects requiring substantial funding as research progresses. Therefore, to enhance the efficiency of fund utilization, optimize fund and resource allocation, and promote the company's business development, based on the actual situation of the fundraising project, other ongoing projects, and overall strategic planning, and after comprehensive and prudent consideration, it is proposed to adjust the internal fund usage structure of the original fundraising investment project "Pediatric Drug R&D": no longer use the raised funds to invest in its sub-project "Children's Pneumonia Patch Research Project", while appropriately reducing the amount of raised funds intended for its sub-projects "Children's Bronchitis and Coughing Asthma Granule Research Project" and "Children's Accumulation Granule Research Project". The remaining principal amount of raised funds will be reallocated to other pharmaceutical R&D projects with more urgent funding needs, and the fundraising investment project's name will be changed from "Pediatric Drug R&D Project" to "Pharmaceutical R&D Project".