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Overseas regulatory announcement

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

This is to set forth the "Livzon Pharmaceutical Group Co., Ltd." published on the website of the Shenzhen Stock Exchange Co., Ltd.'s Commodity Futures Hedging Business Management Measures" are for reference only.

By order of the board of directors

Livzon Pharmaceutical Group Co., Ltd. Livzon Pharmaceutical Group Inc.* company secretary Liu Ning

China, Zhuhai March 24, 2026

As of the date of this announcement, the executive director of the company is Mr. Tang Yanggang (vice chairman); the non-executive director of the company is Mr. Zhu Baoguo. Sheng (Chairman), Mr. Lin Nanqi and Mr. Qiu Qingfeng; the company’s employee director is Ms. Ran Yongmei; and the company’s independence is not

The executive directors are Mr. Bai Hua, Mr. Luo Huiyuan, Ms. Cui Lijie and Ms. Wang Zhiyao.

*Identification only

Livzon Pharmaceutical Group Co., Ltd.

Measures for the Administration of Commodity Futures Hedging Business

Chapter 1 General Provisions

Article 1 To regulate Livzon Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Company")

and its holding subsidiaries engage in commodity futures hedging business, effectively prevent and control risks, and

Fixed cost management measures.

Article 2 The term "futures hedging business" as mentioned in these Measures refers to the company's

The risk of price fluctuations of the main raw materials required in production and operation, combined with sales and production procurement plans,

Futures trading conducted on legally established futures exchanges based on listed standardized futures contracts

for. The purpose of the company's futures hedging business is to hedge against spot market price fluctuations and stabilize

Determine procurement costs to ensure the steady development of the company's business.

Article 3 Basic principles of futures hedging business:

1. The company’s hedging plan is formulated based on production operations and actual spot demand.

The purpose is to avoid the risk of price fluctuations of main raw materials and strengthen inventory management, and pay attention to risks.

Prevent risks and ensure the safety of capital operations;

2. The company only carries out hedging based on its own spot business and does not accept any other

The unit's entrustment and agency futures business does not involve speculative transactions. The company should establish in its own name

Establish a hedging trading account and shall not use other people’s accounts for hedging business;

3. The company’s futures hedging products are limited to those produced with the company or its holding subsidiaries.

Futures types related to the main raw materials required for operations;

4. In principle, the number of various commodity futures positions held by the company for hedging shall not exceed the production limit.

The spot transaction quantity of raw materials required for production and operation;

5. The holding time of various commodity futures for hedging by the company should be consistent with that of the spot hedging exchange.

Match the required pricing period, and the holding time of the corresponding hedging position shall not exceed the actual

The raw material procurement cycle in international operations;

6. The source of funds for the company’s hedging business should be legal and compliant, and bank credit funds are not allowed to be used.

Or the raised funds are used directly or indirectly for hedging business. Companies should strictly control hedging

The capital scale of the value-preserving business shall not affect the company's normal operations.

Article 4 A company must obtain approval from the company’s board of directors or shareholders’ meeting to carry out hedging business.

And strictly follow the operating procedures within the scope approved by the company's board of directors or shareholders' meeting.

Article 5 These Measures apply to the company and its holding subsidiaries.

Chapter 2 Organizational Structure and Responsibilities

Article 6 The company establishes a futures hedging leadership group (hereinafter referred to as the "futures leadership group").

group"). The company’s futures leadership group is led by the chairman and includes: the company’s president, CEO

Vice president in charge of finance of the company, vice president in charge of production of the company, chief engineer of the company, director of the company

Secretary of the meeting and general manager of the enterprise using futures materials. The chairman of the board of directors may authorize the president of the company for a period of

The leader of the cargo leading group shall perform relevant approval functions during specific implementation.

Article 7 The futures leading group is responsible for formulating relevant systems and organizing and implementing the work plan.

plan; establish a futures working group and determine the appropriate personnel within the working group to be responsible for trading,

For auditing, settlement, risk control and other functions, the specific responsibilities of the futures leadership group include:

1. Formulate working principles and guidelines for hedging business, and review the company’s hedging management

Specific rules and regulations for the work; supervise and manage futures hedging business, and continue to improve internal

Establish a departmental organizational system and set various business authorization and management rights;

2. Convene a hedging work meeting, listen to the work report on hedging, and approve

Hedging transaction plans within the scope of quasi-authorization;

3. Responsible for emergency response to transaction risks;

4. Decide to hire a professional institution to provide consultation or consultation on hedging business transactions when necessary.

Ask for service;

5. Exercise other powers stipulated in these Management Measures.

Article 8 The Futures Working Group serves as the daily working organization of the Futures Hedging Leading Group.

structure, consisting of the production technology headquarters, financial headquarters, board secretariat, secondary enterprise supply chain and finance department

and other relevant personnel. Mainly responsible for formulating futures hedging transaction plans and submitting futures

Approval by the leading group; implement the approved plan, including execution of specific hedging transactions,

Responsible for monitoring market conditions, identifying and assessing market risks, executing trading instructions, and reviewing completed transactions

Track and manage transactions. The composition and division of labor of the futures working group are as follows:

(1) The person in charge of the supply chain of each enterprise: initiate an application for opening and closing futures hedging positions;

(2) Market Analyst: Organize the formulation and adjustment of hedging feasibility study reports and

The trading plan shall be submitted to the futures leadership group for approval; market changes shall be monitored in real time and must

When necessary, organize a futures working group to summarize information from all parties and adjust the hedging operation plan and spot prices.

Procurement Arrangements.

(3) Trader: Responsible for entering transaction information on the trading platform or futures company trading room;

(4) Transaction auditor: Responsible for reviewing the transaction information entered by traders and confirming submission;

(5) Fund transfer officer: Complete fund transfer work according to transaction needs;

(6) Accountant: related accounting processing and other financial settlement work;

(7) File Administrator: Responsible for the management of hedging information, including hedging plans,

Trading plans, original transaction data, settlement data, etc.;

(8) Risk controller: Responsible for supervising and tracking the execution of each transaction, and can

Report risk control work directly to the futures leadership group. Keep track of futures brokerage companies

development changes and credit status, and report relevant developments and changes to the futures leadership group so that

The company will decide whether to change the futures brokerage company based on the actual situation.

Article 9 All staff involved in hedging shall separate their powers and responsibilities and shall not cross or

perform their duties beyond their authority and ensure mutual supervision and restraint.

Chapter 3 Authorization System

Article 10 The account opening contract concluded between the company and a futures brokerage company shall be in accordance with the relevant contracts of the company.

After reviewing the management regulations and procedures, the company’s legal representative or a person authorized by the legal representative

member’s signature.

Article 11 The company implements authorization management for futures trading operations. The transaction authorization letter should list

List of persons authorized to trade, specific types of hedging transactions that can be implemented, and transaction limits

and authorization period.

Article 12 The authorized person shall be diligent and conscientious within the scope of rights specified in the authorization letter.

exercise this right voluntarily. Only the authorized person named in the power of attorney can exercise the rights specified in the power of attorney.

rights.

Article 13 If the authorized person needs to be changed due to various reasons, the adjustment should be made immediately.

The new authorized person shall be immediately notified by the authorized person to all parties involved in the business. The original authorized person has

From the time of notification, all rights granted by the original power of attorney will no longer be enjoyed.

Chapter 4 Business Process

Article 14 Market analysts should combine the company’s business scale, raw material demand and market

Market price trends, formulate futures hedging trading plans, and submit them to the futures leading group for approval.

The trading plan should include the following: types, quantities, and price zones of futures hedging transactions

time, hedging ratio, margin to be invested, risk analysis, stop loss strategy, stop loss limit

amount and other risk control measures.

Article 15 When executing specific hedging futures transactions within the approved scope of the trading plan,

The supply chain department of the secondary enterprise that uses the material type initiated the hedging business process.

After approval by the financial director and general manager of the unit, the fund transferor transfers the deposit and then pays

The trader enters the transaction information, and the transaction auditor confirms the order after review.

Article 16 After the accountant receives the delivery document or settlement document and examines it correctly, he or she shall

Account processing.

Article 17 When the market experiences huge fluctuations or deviates greatly from expected price trends,

The production technology headquarters where the market analyst is located should promptly organize a futures working group to summarize all parties

Information, adjust the hedging operation plan and spot purchasing arrangements. The futures leadership group can also

The futures working group was asked to adjust the hedging plan.

Chapter 5 Transaction Risk Control

Article 18 Before carrying out futures hedging business, a company must:

1. Choose a futures brokerage company carefully;

2. Properly set up the futures business organization structure and arrange business personnel in corresponding positions:

(1) The company's futures business position setting should strictly follow these Measures "Chapter 2 Organizational Structure"

organization and its responsibilities "execution;

(2) Requirements for futures business personnel: ① Have futures professional knowledge and management experience, and have good ethics;

Good professional ethics; ② Abide by laws, regulations and various rules and regulations of transactions, and regulate themselves

behavior and put an end to illegal and irregular behaviors.

Article 19 The company’s futures business account opening and brokerage contract signing procedures are as follows:

1. The futures working group selects futures companies with good credit standing, business strength, and standardized operations.

A futures brokerage company shall be recommended to the futures leadership group after qualification review;

2. The futures leadership group selects the brokerage company for the company’s futures trading;

3. The legal representative of the company or a person authorized in writing by the legal representative represents the company and

A futures brokerage company signs a futures brokerage contract and other relevant documents, and goes through the account opening procedures.

Article 20 The risk controller in the futures working group should keep track of the futures management

Keep track of the company’s development, changes and credit standing, and report relevant developments and changes to the company’s futures leadership

group so that the company can decide whether to change futures brokerage companies based on actual conditions.

Article 21 Procedure for handling wrong orders:

1. When an incorrect order occurs that is the fault of the futures brokerage company: the trader shall promptly notify the

futures brokerage company and report to the futures leadership group, instructing the brokerage company to take corresponding measures.

Then recover the losses incurred from the futures brokerage company;

2. When an incorrect order occurs that is the fault of the company’s traders: the trader should report the transaction immediately

Easy auditors and issue corresponding instructions. The corresponding transaction instruction requirements can be eliminated or minimized.

Reduce the losses caused to the company by wrong orders.

Article 22 Liquidity risk control methods for futures contracts:

Because the market liquidity of futures contracts is poor and the trading volume is small when the delivery date is approaching, in order to avoid

To avoid being unable to close the position, the initiator of futures trading should at least

It takes 15 working days to initiate a liquidation application to ensure the smooth implementation of futures liquidation transactions.

Article 23 The company shall carry out hedging capital with the approval of the board of directors or the general meeting of shareholders.

Within the amount, the margin should be planned and used reasonably to ensure the normal progress of the hedging process.

Article 24 The company should strengthen professional ethics education and business training for relevant personnel,

Improve the overall quality of relevant personnel.

Article 25 When the company’s futures working group implements hedging business, relevant persons

Members should strictly implement the risk provisions of the hedging plan reviewed and approved by the Futures Leading Working Group.

risk control measures, and promptly perform the obligations of requesting instructions from the futures leadership group and reporting afterwards.

Chapter 6 Supplementary Provisions

Article 26 Matters not covered in these Measures shall be handled in accordance with relevant national laws, regulations and other

Implementation of normative documents.

Article 27 These Measures shall come into effect from the date of approval and issuance by the Futures Leading Group. Ben

If the methods need to be adjusted, the futures working group will be responsible for revising them, and the futures leading group will be responsible for reviewing them.

Determined.