LIVZON PHARMA - An announcement has just been published by the issuer in the Chinese section of this website, a corresponding version of which may or may not be published in this section

does not make any representation as to the accuracy or completeness of this announcement, and expressly expressly disclaims any liability arising out of all or any part of the contents of this announcement. or bear any responsibility for any losses caused by reliance on such content. 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 out the "About Livzon Pharmaceutical Group Co., Ltd." published on the website of the Shenzhen Stock Exchange Co., Ltd.’s 2025 Risk Management and Internal Control Self-Evaluation Report” is 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 Zhu Baoguo Mr. (Chairman), Mr. Lin Nanqi and Mr. Qiu Qingfeng; the company’s employee director is Ms. Ran Yongmei; and the company’s independent The non-executive directors are Mr. Bai Hua, Mr. Luo Huiyuan, Ms. Cui Lijie and Ms. Wang Zhiyao. *Identification only Livzon Pharmaceutical Group Co., Ltd. 2025 Annual Risk Management and Internal Control Self-Evaluation Report All shareholders of Livzon Pharmaceutical Group Co., Ltd.: According to the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China" and "Shenzhen Stock Exchange Stock Listing" Rules", Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (hereinafter referred to as the "Hong Kong Listing Rules") "Corporate Governance Code" (hereinafter referred to as the "Corporate Governance Code"), "Basic Standards for Corporate Internal Control" and their supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the "Enterprise Internal Control Standardization System"), combined with Livzon Pharmaceutical Risk management and The internal control system and evaluation methods are based on the daily supervision and special supervision of risk management and internal control. The effectiveness of risk management and internal control was evaluated on December 31, 2025 (the base date for the internal control evaluation report). 1. Important statement In accordance with the provisions of the enterprise risk management and internal control normative system, establish, improve and effectively implement risk management and internal control It is the responsibility of the company's board of directors to control, evaluate its effectiveness, and truthfully disclose risk management and internal control evaluation reports. trial The Planning Committee supervises the establishment and implementation of internal controls by the Board of Directors. Operations management is responsible for organizing and leading enterprise risk management and daily operations of internal controls. The company's board of directors, audit committee, directors and senior management personnel guarantee the contents of this report There are no false records, misleading statements or major omissions, and the authenticity, accuracy and completeness of the report contents Bear individual and joint legal liability. The goal of the company's risk management and internal control is to reasonably ensure legal compliance of operation and management, asset security, and financial reporting. and relevant information are true and complete, improve operating efficiency and effectiveness, and promote the implementation of development strategies. Because risk management and internal control Due to the inherent limitations of the system, it can only provide a reasonable guarantee for achieving the above goals. In addition, due to changes in circumstances it may As a result, risk management and internal controls become inappropriate, or the degree of compliance with control policies and procedures is reduced. There is a certain risk in predicting the effectiveness of future risk management and internal control based on the evaluation results of management and internal control. 2. Risk management and internal control evaluation conclusions Based on the identification of major deficiencies in the company’s financial reporting risk management and internal control, As of the base date of the evaluation report, the company had no major deficiencies in financial reporting risk management and internal control. The board of directors believes that the company Effective in all material aspects has been maintained in accordance with the requirements of the enterprise risk management and internal control normative system and relevant regulations. Financial reporting risk management and internal controls. 1/27 Based on the identification of major deficiencies in the company’s non-financial reporting risk management and internal control, As of the base date of the evaluation report, the company found no major deficiencies in non-financial reporting risk management and internal control. There has been no period from the base date of the risk management and internal control evaluation report to the issuance date of the risk management and internal control evaluation report. Factors that occur that affect the conclusion of the evaluation of the effectiveness of risk management and internal control. 3. Risk management and internal control evaluation work (1) Risk management and internal control evaluation scope The company determines the main units, businesses and matters as well as high-risk areas included in the evaluation scope in accordance with the risk-oriented principle. The main units included in the evaluation scope include: the company and its major subsidiaries. The total assets of the units included in the evaluation scope account for the total assets of the company The total assets in the consolidated financial statements account for 99.93%, and the total operating income accounts for 100% of the total operating income in the company's consolidated financial statements. The main businesses and matters included in the evaluation scope include internal environment, risk assessment, control activities, information and communication and Internal supervision, etc. High-risk areas of focus include financial activities, research and development, quality control, EHS Management, asset management, sales business, related transaction management, etc. The above-mentioned units, businesses and matters included in the scope of evaluation and High-risk areas cover the main aspects of the company's operation and management, and there are no major omissions. The specific contents are as follows: 1. Governance structure The company strictly complies with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China" and "Shenzhen Securities Exchange" Standardize operations in accordance with the requirements of the Stock Exchange Listing Rules, Hong Kong Listing Rules and other relevant laws and regulations and the Articles of Association, and establish Established a corporate governance structure based on the shareholders' meeting, board of directors and management, and formulated standardized rules of procedure and decision-making procedures. The responsibilities and authorities in decision-making, implementation, supervision, etc. have been clarified, and a scientific and effective checks and balances mechanism has been formed. In 2025, the company will further improve its corporate governance structure, improve and optimize its internal control system, and improve its corporate governance standards. Flat. The board of directors believes that during the reporting period, the company’s shareholders’ meeting, board of directors and other decision-making and supervisory bodies were able to strictly follow the regulations. Management decisions and implementation supervision are carried out in accordance with the operating rules and internal control provisions, and the operations are standardized and effective. Audit under the board of directors Committee, Nomination Committee, Remuneration and Appraisal Committee, Strategy Committee and Environmental, Social and Governance Committee all perform Corresponding responsibilities, among which the Audit Committee reviews the company’s internal controls, supervises the effective implementation of internal controls and internal control self- The evaluation situation has formed a corporate governance structure that meets the requirements of listed companies for scientific decision-making, sound operation, and strong execution. In 2025, the actual situation of corporate governance is in line with laws and regulations such as the "Guidelines for the Governance of Listed Companies" and the "Corporate Governance Code" regulations and requirements. 2/27 2. Development strategy The company is a comprehensive pharmaceutical group company integrating pharmaceutical research and development, production and sales. It is one of the top 100 pharmaceutical companies in China. enterprise. The company's A shares are listed on the main board of the Shenzhen Stock Exchange (securities abbreviation: Livzon Group, stock code: 000513). H shares are listed on the main board of the Hong Kong Stock Exchange (stock abbreviation: Livzon Pharmaceutical, stock code: 01513). Livzon Group adheres to the mission of "patient quality of life first" and the vision of "being a leader in the pharmaceutical industry", focusing on life In the field of health, the main business is the research and development, production and sales of pharmaceutical products. The products cover preparation products, raw materials and intermediates, Diagnostic reagents and equipment. Preparation products focus on the treatment fields of digestive tract, assisted reproduction, mental nerves and other fields, and are constantly strengthening their own While focusing on innovation, the company pays attention to cutting-edge technologies, strengthens external cooperation, and conducts research and development in commercialization, production operations, innovative research and development, and two-way Licensing and other multi-dimensional aspects to promote internationalization strategy. The company adheres to the core values of corporate culture and defines its vision, mission and core values: Company mission: Patient quality of life comes first Company Vision: To be a leader in the pharmaceutical industry ①Company values: people-oriented Users always put bringing health to patients and creating value to customers first; Employees, continue to create conditions for employee growth and improvement of employee experience; Shareholders, create long-term value for shareholders. ②Craftsman spirit Strive for excellence: pursue the ultimate, and always maintain the mentality and habit of "talk small and do things well"; Pioneering and innovative: dare to break the rules, take the initiative to learn and continue to learn; Teamwork: Respect others, think from others' perspective, proactively cooperate, and pursue win-win results. ③Trustworthy, truth-seeking and pragmatic Commitment: adhere to the commitment to Livzon’s mission; Trust: Live with integrity, work seriously, and be a good colleague, partner, and customer who is trustworthy. ④Happy life and happy work Life experience: Establish a sense of boundaries between work and life, stay true to your original aspirations, and explore life; Career passion: work hard, overcome difficulties, fulfill social responsibilities, and obtain the achievements and satisfaction brought by your career. In 2025, China will continue to deepen the reform of the medical and health system, and the pharmaceutical industry will continue to transform and upgrade and encourage innovation. Moving forward in the direction of high-quality development. In this market environment, our company always adheres to the mission of "patient quality of life first" and actively We strongly embrace industry changes, steadily improve R&D efficiency, break through higher growth barriers, and strive to achieve the company's goal of "doing medicine". 3/27 Industry leader" vision. The company strengthens its business governance, protects the interests of shareholders with high-quality corporate governance, and improves corporate value and responsibility. The Environmental, Social and Governance Committee under the Board of Directors has established a full-process ESG management mechanism and maintained highly transparent information disclosure. Actively improve the risk management and internal control system to provide a solid institutional guarantee for the sustainable operation of the enterprise. The company practices green development, continues to invest in improving processes and upgrading equipment, and uses practical actions to support "double carbon" Target landed. At the same time, the company has introduced ESG performance indicators into the management assessment to ensure that the group effectively implements green and low-carbon Operations. This year, the Group carried out a comprehensive inventory of greenhouse gas scope 3 for the second consecutive year. In addition, the company also evaluates The company reports on the completion of environmental goals from 2021 to 2025, and combines industry trends, business development and opinions from external stakeholders. Updated the environmental performance evaluation system and formulated the "Livzon Group's 2026-2030 Environmental Management Goals and Carbon Emission Reduction Goals". Plan a clear path for the next stage of sustainable development. While focusing on its own development, the company always adheres to social welfare undertakings and actively assumes social responsibilities. Extensive participation and charity activities, insisting on inclusive chronic disease prevention and public welfare and industrial revitalization and development, and feedback to society with practical actions. 3. Human resources "Employees are the company's most valuable resources, and high-quality talents are the company's most important assets" is the talent philosophy our company has always upheld. concept of development. In 2025, the company will continue to be committed to creating a diverse and inclusive workplace atmosphere for employees and continue to improve the talent development mechanism. Protect the legitimate rights and interests, health and safety of employees. Adhere to the selection criteria of having both ability and political integrity, implement a rotation system for key positions, and implement The education mechanism for talents with one specialty and multiple abilities is based on the principles of fairness, impartiality and openness, and creates a diversified development platform while simultaneously We implement female leadership development plans at all times to achieve harmony and unity between the values of the company and employees. ①Create a diverse and inclusive work environment, adhering to the principles of "anti-discrimination, diversity" and "gender equality", Respect the diversity and differences of employees, integrate the principle of diversity into the company’s recruitment and employment policies, and reject all discrimination avoid discrimination and bias, and encourage and support the development and promotion of female employees. ② Implement a scientific and reasonable assessment system, be "results" oriented, formulate and improve key performance assessment indicators, and carry out Ability evaluation ensures that employees’ value contributions are maximized. Establish and improve long-term incentive mechanisms, implement stock option incentive plans, fully mobilize the enthusiasm of talents, and enhance team cohesion. Work together to ensure the realization of the company's development strategy and business goals. Continue to carry out talent retention plans, formulate and implement competitive salary and welfare policies, and base Set up incentive bonuses for value contribution, identify core and high-potential young talents, and provide resources in promotion, incentives and training. Oblique. ③Employee recruitment: The company strictly abides by the "Labor Law of the People's Republic of China" and "Labor Contract Law of the People's Republic of China" 4/27 "Regulations on the Prohibition of the Use of Child Labor" and other laws and regulations, and formulated the "Livzon Group Labor and Employment Management System" and "Livzon Group Labor and Employment Management System" "Work and Ethics Code of Conduct", "Livzon Pharmaceutical Group Recruitment Management System" and other management regulations, and sign labor contracts with employees in accordance with the law. At the same time, we insist on legal employment and protect the legitimate rights and interests of employees. ④Employee promotion: The company continues to create conditions for employee growth and improvement of employee experience, and enhance employees' sense of belonging. system Formulate the "Administrative and Technical Sequence Management Measures" and establish dual promotion channels for administrative and technical sequences to help employees achieve career development path. ⑤Selection and appointment of cadres: The company advocates the talent concept of having both ability and political integrity and meriting talents, and practices the principle of "promoting the capable and demoting the mediocre" The company adopts the concept of employment, strengthens the human resource management planning of core talents, and builds a team of excellent and efficient management cadres. dry Internal resources are shared within the company to achieve orderly flow of cadres and meet the needs of business development. ⑥Training and development: The company has formulated the "Livzon Group Training Management System" and "Livzon Group Employee Learning and Growth Management Regulations". Combined with strategic development and organizational capability requirements, effectively integrate internal and external resources to form a core platform with "Livzon Business School" A diversified training management system that combines internal and external training, and continues to develop basic skills, job skills, management skills and Continuing education and other training courses make employee training systematic and institutionalized and implemented to improve work performance. At the same time, we will strengthen and deepen school-enterprise cooperation, establish postdoctoral workstations and social practice bases, and consolidate high-tech talents and companies. bridge to ensure the supply mechanism of campus talents. Through the full integration of internal and external resources, employees' enthusiasm and initiative in learning are enhanced, so that the company's human resources can be Fully and comprehensively develop, and have stronger competitiveness in terms of talent reserves. 4. Corporate social responsibility ①ESG management The company attaches great importance to the in-depth integration of ESG management concepts and the company's development strategy, regularly reviews the progress of ESG-related work and Dynamically optimize governance strategies, deeply integrate ESG concepts into operational decisions, and actively promote the coordinated development of upstream and downstream value chains. Dong As the highest decision-making body for the company’s ESG management, the Board of Directors not only maintains a high level of awareness of global ESG development trends and macroeconomic situations. Pay attention to, and also regularly combine the company's strategic planning, production and operation status and stakeholder communication results to comprehensively identify ESG-related risks and opportunities, guide and optimize ESG management policies and strategies, and ensure that its ESG concepts keep pace with the times. In order to ensure the effective implementation of ESG work, the company has established an ESG committee directly led by the board of directors, and under its An ESG working group has been set up as an executive agency to be responsible for daily ESG management and coordinating various functional departments to implement ESG management strategies. Omit. The ESG Committee is responsible for formulating the company's ESG vision, goals and strategies, supervising the effectiveness of the ESG management structure, and regularly Evaluate the results and performance of ESG work. At the same time, in order to strengthen management’s responsibility in promoting ESG management, the company has established Establish a system that links management remuneration with ESG performance, combine the remuneration of ESG working group members with ESG performance, and motivate all 5/27 All employees work together to improve the company's ESG performance, laying a solid development core for the company's sustainable development work. This year, the company continued to improve its governance and sustainable development capabilities: in terms of directors’ performance of duties, the company strictly followed regulatory regulations, Systematically carry out training covering corporate governance, sustainable development, risk management and other fields; in terms of environmental performance, actively Promote scope 3 greenhouse gas inventory, identify and evaluate energy saving and emission reduction opportunities in each link of the value chain, and continue to track environmental management progress in the implementation of management goals and carbon targets. In 2025, Livzon Group's performance in the field of sustainable development has been repeatedly recognized: it was once again selected into S&P Global's "Sustainable Development" Exhibition Yearbook" and ranked among the top 5% of its CSA scores; it was also included in the Hang Seng A-share Sustainability Index and ranked on the Wind ESG "Top 100 Best Practices of Chinese Listed Companies" list, etc. These honors fully reflect Livzon's ESG management path. Keep up the good work. ②Public welfare undertakings While adhering to its own development, the company actively fulfills its corporate social responsibilities, keeps its public welfare mission in mind, and reflects its profound social responsibility. Will take responsibility. The company's "Public Benefit Chronic Disease Prevention and Treatment" public welfare project has been carried out for seven years and has always been committed to providing services to grassroots and remote areas. District brings sustainable health support. By the end of 2025, the "Inclusive Chronic Disease Prevention and Treatment" public welfare project has covered 12 provinces across the country It has benefited more than 48,000 patients in 37 areas in 4 autonomous regions and formed a solid grassroots health protection network; The company implemented the "Astragalus Industry Assistance" project in Datong, Shanxi, planted astragalus through self-built and jointly built bases, and cooperated with Datong Hun Mazhuang Village in Yuan County has launched an astragalus processing workshop jointly built by the village and enterprises, which not only provides jobs for villagers, but also increases output value and helps farmers increase their income. At the same time, the company has established long-term scholarship programs with many well-known universities and donated funds to multiple educational charities to support science and technology. Research teaching and talent cultivation, and promote the balanced development of educational resources. In 2025, when Rongjiang River suffered a flood, Livzon Pharmaceutical 48 Within hours, 4,000 boxes of anti-viral granules were deployed to assist the disaster area; in the face of the Tai Po fire in Hong Kong, the company urgently donated HK$10 million. Assist disaster-stricken compatriots with rescue and post-disaster reconstruction. During the reporting period, the Company's public welfare donations totaled approximately RMB 29.16 million. 5. Corporate culture ①Party building activities In accordance with the requirements of the Party Constitution, the company’s Party Committee insists on giving full play to the Party’s political core and political leadership, and always Throughout the operation of the enterprise, use party building activities to promote enterprise development, focus on the ideological and political construction of party members, and continuously improve party members Improve one's own quality and give full play to the vanguard and exemplary role of party members. At the end of 2025, the company had a total of 655 party members, including 423 party members at the Zhuhai headquarters and 232 party members at the branches. There are 11 party branches directly under the party committee and 7 branch party organizations. 6/27 In 2025, the company’s Party Committee, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, organized an in-depth study of the Party’s The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, General Secretary Xi Jinping’s series of important speeches and other documents, and went to Nanhu, Jiaxing to carry out party member study Educational activities, etc., to drive party members to learn, educate party members and comrades to keep pace with the times and work hard for the development of the company. ②Employee care The company has established the core values of "people-oriented, craftsman spirit, trustworthy, truth-seeking and pragmatic, happy life and happy work". In line with core values, through large-scale public welfare activities such as "Chronic Disease Relief" that have lasted for many years, we have continuously cultivated employees to have a sense of mission and responsibility. The corporate culture concept of responsibility. The company also actively creates a dynamic and innovative corporate culture by organizing badminton, basketball, Competitive sports events such as football, mountain climbing, and Lebu can fully mobilize the enthusiasm and creativity of employees and create an enterprising enterprise. We strive to create a professional cultural atmosphere and strive to create a team of outstanding talents that constantly surpass themselves. The company adheres to the concept of continuously seeking benefits for employees and establishes and improves the corporate welfare system. In addition to providing employees with competitive In addition to competitive salary and welfare benefits, employees can also enjoy diversified non-salary benefits in the company, such as canteen/dormitory, Annual welfare physical examination, employee activity center/gym, living allowance for industrial talents/introduced talents, and skill improvement for industrial talents Awards, master's and doctoral studies, professional skills improvement certification, employee interest association activities, relevant government welfare housing, maternal and child rooms, Ladies-only parking spaces, etc. The company's labor union distributes holiday/birthday gifts to employees, and provides employees with maternity/work-related injury/serious illness medical subsidies and employee assistance. plan, and provide hardship subsidies to extremely needy employees, etc. 6. Funding activities The company gives full play to the advantages of the group, raises and manages funds in a unified manner through the fund settlement center, and improves the efficiency of fund use. To ensure the safety of funds, the company has formulated a series of fund management, investment management, and financing management systems, and based on operation management In order to meet the needs of management and changes in organizational structure, the "Fund Signing and Approval Authority" is revised regularly every year to stipulate different scales of capital activities. Approvals are automatically carried out according to different approval authorities, ensuring the safety of fund expenditures and the effectiveness of authorized approvals. In 2025, the company will continue to improve the anti-risk ability of funds, rationally arrange funds, and plan and maintain liquidity on the premise of ensuring liquidity. Avoid risks and increase returns. Strictly implement the "Financial Derivatives Trading Business Management System" and "Commodity Futures Hedging Business Management System". "Measures for the Management of Foreign Exchange Risks" and "Measures for the Management of Foreign Exchange Risks", sort out the foreign exchange risk management system, establish and improve the foreign exchange risk management system, and control Control foreign currency risks and formulate management strategies suitable for the company's export business. The company improves the financial management of construction projects, ensures that projects strictly implement the approval process and budget control, and organizes and optimizes projects. Streamline financial processes, reduce relevant approval procedures, shorten the running time of business processes, and realize business operations by strengthening control mechanisms. financial management and control to achieve a balance between efficiency improvement and risk control. 7/27 7. Research and development Livzon Group continues to pay attention to new molecules and cutting-edge technologies in the field of global drug research and development, and is guided by clinical value to consolidate the Full product layout in advantageous fields such as gastroenterology, neuropsychiatry, and assisted reproduction and promote innovation and iteration, while actively expanding anti-infectious diseases The company has established a research and development layout in the fields of chronic diseases such as infection, metabolism, cardiovascular and cerebrovascular diseases, and improved the research and development gradient. In terms of technology platform, the company relies on Advantageous technology platforms such as sustained-release microspheres, antibody drugs, and recombinant protein vaccines, etc., give full play to the advantages of the national traditional Chinese medicine research and development platform, and promote Promote the research and development of biological drugs, innovative traditional Chinese medicines, long-acting chemical preparations and exclusive varieties. Ilaprazole, the core product in the digestive tract field As well as leuprolide microspheres, a representative product in the field of assisted reproduction, they are all vivid manifestations of the company's insistence on R&D and innovation. The company now has 3 national-level R&D centers: National Traditional Chinese Medicine Modernization Engineering Technology Research Center, Nationally Recognized Enterprise Technology center, national and local joint engineering research center for long-lasting microsphere technology; 20 provincial R&D centers: Guangdong Provincial Key Industry Engineering Technology Research and Development Center, Guangdong Province Digital Traditional Chinese Medicine Engineering Technology Research and Development Center, Guangdong Province Cephalosporin Pharmaceutical Industry Engineering Technology Research Center, etc. The company has been recognized as a high-tech enterprise in Guangdong Province for many times, which reflects the company's technological innovation and Outstanding results and continued contributions to new product development. The company focuses on the research and development of high-end complex injections of microspheres, and is committed to leveraging the long-term effectiveness and effectiveness of microspheres and high-barrier complex preparations. With the advantage of sustained release, the main products focus on the three major treatment areas of anti-tumor, endocrine regulation and antipsychotics. In 2025, public The progress of the company’s ongoing research projects is as follows: ① Aripiprazole microspheres for injection, a class 2.2 improved new chemical drug, will be obtained in April 2025. It has registered approval documents and passed GMP compliance inspection. It is the world's first long-acting microsphere preparation of this product. ②Leuprorelin acetate for injection Microsphere 11.25mg will be reported for production in June 2025. After being approved, this is the first 3-month sustained-release long-acting microsphere preparation in China. ③ LZHG2401 submitted a clinical trial application in December 2025; ④LZHG1701 is conducting preclinical research; ⑤Alanine acetate Relin microspheres are currently undergoing phase II clinical research. Livzonumab Biotechnology Co., Ltd. is deeply involved in the field of biomedicine and has established mature recombinant protein drugs and innovative Vaccine R&D technology platform and industrial production base. In 2022, the first-generation COVID-19 vaccine Likang V-01 was launched and approved for emergency use License to use. In 2023, Licomin®, the broad-spectrum XBB bivalent vaccine developed based on the same platform, became the company’s second vaccine approved by the country. Inclusion of COVID-19 vaccine for emergency use. Analysis of the clinical data of Licomin® (a total of 4750 subjects included) shows that the vaccine It has significant neutralizing activity against a variety of popular mutant strains (such as EG.5.1, XBB.1.9.1, XBB.1.16, XBB.1.5, etc.), The neutralizing antibody titer after vaccination is high, significantly more effective than Likang V-01, and has good safety and rapid onset of effect, especially for the elderly. The group shows superior immune effect and safety. In addition, the biosimilar drug tocilizumab injection developed by lizumab Vitai® will be approved for marketing in 2023 and is suitable for the treatment of rheumatoid arthritis (RA) and systemic juvenile idiopathic arthritis (sJIA) and diseases such as cytokine release syndrome (CRS). Multiple global authoritative guidelines clearly recommend tocilizumab for severe and critical Treatment of patients with severe COVID-19 infection has been proven to significantly reduce the mortality rate and improve patient survival 8/27 quality. At the same time, the recombinant human follicle-stimulating hormone injection being developed is designed to treat infertility and uses a prefilled injection pen. The design can effectively reduce patients' discomfort during injection and improve medication compliance. This product was declared for listing in January 2025 and obtained Accepted, the on-site inspection at the review stage has been completed and is pending approval. In addition, recombinant anti-human IL-17A/F humanized monoclonal antibody Intracorporeal injection is used for the treatment of moderate to severe psoriasis and ankylosing spondylitis. It has the characteristics of quick onset and long duration of effect. It is expected to fill the gap in domestic IL-17A/F target drugs. It has completed two phase III clinical trials in 2025 and will be launched in 2025. The application for listing was accepted in December and included in the priority review process. In 2025, the company has a total of 4 biopharmaceutical research projects, 2 have been launched, and 2 have been approved for emergency use. They are in the marketing application stage. 2 projects, and several other projects are in early research and development stages. In 2025, Livzon Group's chemical drug research and development will adhere to the dual-engine drive of independent development and technology introduction, focusing on the digestive tract and sperm. In the core areas of medicine, assisted reproduction, and anti-tumor, we will build a differentiated product pipeline layout to achieve innovative drugs, high-barrier complex The three tracks of formulation and consistency evaluation projects are developing rapidly. The company continues to focus on unmet clinical needs and introduces assisted oral GnRH-antagonist in the reproductive field; 2 new indications have been added to independent research projects, further expanding Livzon Group’s chemical drug innovation New pipeline. There are 19 chemical drug projects under development in 2025, among which the raw materials of progesterone injection and lurasidone hydrochloride have been approved for marketing; application for production Produces 4 items: JP-1366 tablets, ω-3 fatty acid ethyl ester 90 soft capsules, aripiprazole for injection, paliperidone palmitate injection All marketing applications were successfully submitted; 2 clinical applications were submitted, 6 clinical approvals were obtained, and 7 clinical trials were carried out. NS-041 tablets, H001 capsules and others have entered different stages of clinical trials. In addition, there are 4 consistency evaluation projects under research in 2025, among which hydrochloric acid Peropilone tablets (4mg) and valacyclovir hydrochloride tablets (0.5g) have been approved, 1 production application has been made, and clinical/BE studies have been carried out 1 item. The R&D center team has built 5 technology research and development platforms, including engineering strain construction and optimization platforms, fermentation process development Development and amplification platform, purification platform based on peptide and glycopeptide drugs and enzyme preparations, quality research platform, activity and toxicity physical representation platform. At present, the laboratory is the key laboratory of Guangdong Provincial Enterprise for R&D and Application of Fermentation and Semi-synthetic Drugs. 2025, The National Key R&D Program "Synthetic Biology" in cooperation with Zhejiang University and Shanghai Jiao Tong University "Actinomycete Drug Synthesis" "Network Reconstruction and System Optimization of Synthetic Biological Systems" project, in cooperation with Tianjin University, Georgia Tech Shenzhen College and Tianjin University The synthetic biology project of the Guangdong Provincial Key Areas R&D Plan "Analysis of Synthetic Pathways of Important Active Natural Products and "Heterologous Expression" all successfully passed the acceptance test. In addition, on the existing research and development platform, we have completed the development of semaglutide injection for hypoglycemic adjustment. Domestic marketing application for indications, as well as overseas marketing applications in Pakistan, Brazil and other countries; completed Phase III clinical trials for weight management indications clinical trials and plans to submit a marketing application in 2026. In 2025, Zhuhai Livzon Reagent Co., Ltd. developed a series of cytokine detection kits and a series of non-standard phospholipids Products such as detection kits and phosphorylated Tau-181 protein assay kits have successively obtained medical device registration certificates, marking the company’s 9/27 Continue to enhance competitiveness in the chemiluminescence track. Livzon Reagents will continue to focus on the fight against autoimmune diseases, neuropsychiatric diseases, etc. strategic areas, and continue to consolidate the comprehensive layout of upstream raw materials, automation equipment and diagnostic reagents, and increase independent innovation efforts. Continue to launch products that meet clinical diagnosis and treatment needs. Traditional Chinese medicine preparations are based on the company's research and development accumulation and evidence-based medicine capabilities in the entire traditional Chinese medicine industry chain, focusing on the mental, nervous, and respiratory systems. We will conduct innovative research and development of new traditional Chinese medicines and clinical research on exclusive varieties for traditional Chinese medicine dominant diseases, geriatric diseases, pediatric drugs, etc. Deeply explore and develop clinical value, and build a "theoretical-clinical-industry" closed-loop innovative traditional Chinese medicine matrix. According to the company management system In accordance with the regulatory policies and regulations of the traditional Chinese medicine industry, we continued to promote the research and development of 8 new traditional Chinese medicines, including 2 classic 3.1 classic prescriptions. Completed the registration application for NDA, obtained the acceptance notice, and entered the technical review stage; 1 traditional Chinese medicine category 1.1 innovative drug, completed Pre- IND communication meeting to prepare for registration and application for IND, and the remaining five new traditional Chinese medicines are progressing normally according to the established project plan. around the company We have launched antiviral granules and Jiuwei Yinao granules to carry out action evaluation and mechanism research, and used experimental data to clarify their clinical value. The scientific connotation of values will be promoted into expert consensus or guidelines, which are expected to be published in 2026. The company continues to promote traditional Chinese medicine to go global In line with the company's strategy of globalization, antiviral granules and Jingfu Antipruritic Granules have completed the registration application in Malaysia; we have continued to strengthen the products already on the market. Evidence-based research on key products of pharmaceutical preparations, focusing on terminals such as grade hospitals, primary medical institutions, retail pharmacies and e-commerce platforms market; continue to optimize traditional channels and terminal structures, and develop more opportunities for traditional Chinese medicine preparation products to create big brand products in major terminals. Many ideas. 8. Quality control The company adheres to the principles of "scientific compliance, continuous improvement, pursuit of excellent quality, patient-centered, and is committed to providing quality products to patients." The quality value of "quality products". (1) Quality management system, the company strictly follows the "Drug Administration Law of the People's Republic of China" and " Vaccine Administration Law", "Drug Registration Management Measures", "Drug Production Supervision and Management Measures", "Drug Post-market Change Management Measures" (Trial)" "Measures for the Supervision and Administration of the Quality of Drug Distribution and Use" and "State Food and Drug Administration's Notice on Strengthening the Holding of Drug Marketing Licenses" "Announcement on the Supervision and Management of Production Entrusted by Individuals" and "Drug Marketing Authorization Holders' Implementation of Drug Quality and Safety Subject Responsibility Supervision" Management Regulations", "Good Manufacturing Practices for Non-clinical Drug Research", "Good Clinical Practice Practices for Drugs", "Good Manufacturing Practices for Drugs" "Quality Management Practices", "Good Manufacturing Practices for Pharmaceutical Products", "Good Pharmacovigilance Practices" and "Regulations on the Supervision and Administration of Medical Devices". "Regulations on the Administration of Veterinary Drugs" and "Good Manufacturing Practice for Veterinary Drugs" and other laws, regulations, rules and standards, and Develop internal systems such as the "Quality Management System", "Quality Internal Audit Management Procedures" and "Drug Marketing Authorization Holder Management System" degree, continue to implement the main responsibilities of the enterprise, and establish a quality management system covering the entire life cycle of product research and development, production, sales and other businesses. Quantity management system. Actively implement the main responsibilities of production enterprises to ensure that the quality, safety and controllability of products throughout their life cycle are in line with industry quality management 10/27 Various requirements of systems (GLP, GCP, GMP, GSP and GVP) and related regulations. A relatively complete quality management system has been established system, and will be gradually revised and improved during the implementation process, including the entire product life cycle (product research and development, product production and product (operation) quality system and pharmacovigilance system. (2) Drug quality audit The company's quality management headquarters is based on the six major systems of GMP specifications (quality system, production system, material system, laboratory system system, equipment facilities system and packaging system) to conduct a comprehensive quality audit. Targeting each production line and combining key varieties, Assist each production company to conduct a comprehensive risk analysis to prevent blind spots in quality management and avoid regional and systemic risks. risk, and further promote the healthy operation of the enterprise's quality management system. The company conducts at least one comprehensive quality audit every year, covering 100% of all production companies and drug marketing licenses. Possible holder. In 2025, the Company will conduct 9 quality audits on the Group’s preparation companies; on the Group’s in vitro diagnostic reagent companies Carry out a quality audit on the Group’s animal drug manufacturing enterprises; Carry out a quality audit on the Group’s raw material pharmaceutical manufacturing enterprises; Conducted 7 quality audits on the Group’s R&D projects; conducted 2 quality audits on the Group’s operating enterprises Plan. Among them, 6 mature manufacturers (Livzon Pharmaceutical Factory, Limin Pharmaceutical Factory, Sichuan Everbright, Shanghai Livzon, Livzon Pilot agent, lizumab) through years of mutual inspection of the six major systems, PDCA derivation and strengthening in 2023 and 2024, the enterprise The quality management system has been improved and has the ability to conduct comprehensive self-examination and in-depth self-correction. In 2025, we will focus on tracking its performance in 2024 Audit the completion of rectifications, and urge these companies to follow the "Major and Serious Defects in the Past Years" issued by the Quality Management Headquarters. Checklist", conduct self-examination and self-correction based on the company's quality supervision situation over the years, and conduct targeted quality audits to achieve To help enterprises continuously improve and enhance their quality systems to ensure product quality. In view of the uneven quality management level and uneven quality awareness of various API companies, in 2025 the company will Carry out quality audits for each API company based on the basic idea of one company, one policy, assist companies in solving current thorny problems, and at the same time Strengthen the supervision of change risks of each enterprise. In 2025, based on the project progress and corporate needs, we will carry out simulation verification of the research and development sites and production sites of each of the group's R&D projects. Through inspections and extended inspections, through identifying high-risk points of the project and conducting rigorous inspections, we confirm the compliance of rectification measures and verify the declared information. data and research data, and the consistency of information between different data, and provide guiding opinions on the project research route, so as to provide varieties as soon as possible. Provide powerful assistance through approval for listing. (3) Quality risk management The company attaches great importance to patient medication safety and insists that "scientific-based risk assessment and control are the basis of quality management." quality concept, based on external quality management standards (GMP, ICHQ9, ICH10, PIC/SPI038-01, ISO-31000, etc.) and "Quality Risk Management Procedures" and other internal management systems, in drug research and development, technology transfer, commercial production, product circulation and Carry out quality risk management (QRM) throughout the life cycle of drugs such as termination. 11/27 QRM policy: Starting from patient safety, we should do a good job in risk identification and control of factors involved in the product life cycle based on scientific knowledge. control, implement dynamic risk management, rationally allocate resources, and achieve continuous control and continuous improvement. Company quality risk management points For steps such as risk assessment, risk control, risk communication and risk review. Among them, risk communication runs through the entire risk management processing process. In order to enhance the ability to respond to drug safety emergencies, improve relevant work management regulations, and ensure the safety of public medication, The company has formulated the "Drug Recall Operating Procedures", "Emergency Plan for Major Drug Safety Incidents", "Adverse Drug Reaction Reporting and Supervision" Management systems such as the "Testing Management System" and other management systems, and regularly conduct simulated drug recalls and emergency drills for drug safety emergencies. Analyze and estimate the risks and problems that have been identified, and confirm the possible consequences and possible consequences of the problems. functionality and issue a quality risk assessment report based on the system risk assessment form. Then, reduce the risk of quality based on the risk level risk control measures and take corrective and preventive actions (CAPA) when necessary; after implementing risk reduction measures and re- After the assessment, the quality risk management team makes a decision on whether to accept the residual risk. (4) Pharmacovigilance management The company and secondary enterprises actively respond to and support the requirements for establishing a comprehensive pharmacovigilance system to ensure drug risk effectiveness. Balance the benefits and ensure the safety and effectiveness of medicines used by the public. Establish an independent pharmacovigilance department, designate the person in charge of pharmacovigilance, and equip Full-time pharmacovigilance personnel are appointed to ensure the normal operation of the pharmacovigilance system; a drug safety committee is established to be responsible for major risk research Judgment, handling of major or emergency drug incidents, risk control decisions and other major matters related to pharmacovigilance; based on The pharmacovigilance system and its related activities have established an institutional document system covering the requirements of current pharmacovigilance-related laws and regulations, and Timely and reasonable revisions and improvements are made in accordance with the latest regulatory requirements. (5) Product recycling procedures The company formulates and implements the "Drug Recall Operating Procedures", "Unqualified Drug Management System", "Adverse Drug Reaction Reports and Monitoring and Management System", "Returned Drug Management System", "Drug Traceability Management System" and other systems, based on drug safety hidden The drug recall work will be divided into three levels according to the severity of the disease. The products to be recalled will be counted and accepted, and returned according to the return procedure. Drug manufacturers should establish and maintain complete purchase and sales records to ensure the traceability of the drugs sold and actively cooperate with them. The manufacturing enterprise or the drug regulatory department shall conduct relevant investigations. Each drug marketing authorization holder within the group regularly conducts simulated product recalls and emergency drills for product safety emergencies. Verified by emergency drills, the relevant systems established by each company can help companies quickly and accurately respond to product safety emergencies. Carry out product recalls in an orderly and effective manner. In 2025, the company had no recalls due to drug safety issues. (6) Supply chain management The company complies with the "Company Law of the People's Republic of China", "Tendering and Bidding Law of the People's Republic of China" and other relevant laws and regulations. 12/27 In accordance with national GMP requirements, relevant supplier management systems are formulated to conduct compliance management of suppliers. In supplier management, The company strictly implements the existing supplier management system and incorporates suppliers’ energy conservation, emission reduction, green development, etc. Among the access conditions, supplier qualification confirmation, evaluation and maintenance, new additions and changes, quality audit, quality assessment and review Implement comprehensive and standardized management in aspects such as supplier's system operation, quality qualification rate, supply capacity, timely arrival rate, etc. Comprehensive evaluation of change control management, personnel training and after-sales service satisfaction, etc., as annual supplier evaluation and procurement The basis for share allocation and synchronized to the supply chain management (SRM) system to ensure supplier screening, access, evaluation, and maintenance Standardized management of the entire life cycle of maintenance, use, and elimination. In 2025, the company will continue to expand alternative supplier resources, focusing on selecting high-quality suppliers for core materials and key production links. Alternative parties, constantly enrich the supplier reserve pool. Effectively reduce single supply risks, improve the supply chain’s ability to resist disturbance, and further Step by step to lay a solid foundation for the stable operation of the supply chain and provide a solid guarantee for the company's production, operation and compliance development. (7) Drug business compliance For drug instructions and label management, the company strictly abides by the "Drug Administration Law of the People's Republic of China" and "Drug Instructions" "Regulations on the Management of Labels and Labels" and other laws and regulations, and established a system for the formulation, revision, maintenance and management of labels and instructions, paying attention to The State Food and Drug Administration revise and improve the management system of drug labels and instructions for the regulatory documents on labels and instructions, so as to Ensure that the company's drug labels and instructions continue to comply with national regulatory requirements, and update the marketing authorization status in the instructions and labels Someone has information. For academic compliance promotion, the company attaches great importance to the overall planning and monitoring of academic promotion, and monitors the themes and activities of national promotion activities. Establish clear standards for activity types and fees to ensure that promotional activities are legal and compliant. At the same time, the company has made every effort to optimize the With a marketing system supported by data, we deeply strengthen the positioning of the medical profession, continue to enrich the clinical evidence chain, and strengthen the understanding of the real world. Collection and analysis of data, and orderly promotion of key tasks such as post-marketing comprehensive clinical evaluation and pharmacoeconomic research of key products. Make. Provide more comprehensive evidence support for the efficacy and safety of the product. (8) R&D quality management The company continues to deepen quality management by extending the scope of quality management from post-market management to research and development. stage to achieve product life cycle quality control. Each drug R&D center of the company is based on GXP (Good X (Agriculture, Laboratory, Clinical, Manufacturing, Supply) Practices, that is, Chinese herbal medicine production quality management practices, drug non-clinical trials (practical Laboratory) quality management practices, drug clinical trial quality management practices, production quality management practices, pharmaceutical business management practices (the collective abbreviation of Fan), ICH (The International Council for Harmonization of Technical Requirements for Pharmaceuticals for Human Use (International Technical Conference for Harmonization of Registration of Pharmaceuticals for Human Use) Guidelines and relevant registration regulations, establish and operate an implementable pharmaceutical research and development quality management system, and company quality management 13/27 The management headquarters conducts registration on-site inspections (pharmaceutical development and production site simulation inspections) on key nodes of pharmaceutical research projects. investigation, clinical audit), assist drug marketing authorization holders to fully identify risks before product marketing, and issue-oriented recommendations Improve the construction and effective operation of the R&D quality system, and adopt risk control measures to ensure smooth project declaration as scheduled. The company conducts quality control on the entire process of medical device product research and development, and has established a design and The development control program clarifies product project establishment, design planning, design input, design output, design conversion, design verification, Requirements, interfaces and review activities at each stage such as design confirmation, and apply medical device risk management requirements (ISO14971) The entire process of product development reduces product quality and safety risks. During the reporting period, the compliance with the research and development process of medical device products was According to the compliance requirements, the company will conduct audits in stages according to the progress of the project. The company has established a clinical trial quality management system covering the entire process of clinical trials. In 2025, all R&D units will Strictly follow the clinical trial quality management system documents and standardize clinical trials to ensure that the company's clinical trials comply with the "Drug Good Clinical Practice for Medical Devices (GCP), Good Clinical Practice for Medical Devices and related regulations. Ask. Our company continues to optimize, evaluate and revise the cQMS system documents in accordance with the requirements of new regulations related to clinical trials. During this reporting period, the cQMS system documents were optimized, evaluated and revised, and all R&D units simultaneously complied with the new regulatory requirements. The clinical trial shall be carried out according to the requirements and system documents. In order to improve the process management and quality control of clinical trial projects, the clinical research quality management department supervises the system of each R&D project. Establish a quality risk management plan and carry out diversified quality management forms, including inspection plans, joint inspection plans, quality Control plan, audit plan, third-party audit plan and medical supervision plan, etc., and determine audit execution based on project characteristics frequency and frequency, and the risks discovered during the audit are required to be rectified within a limited time to ensure that clinical research is fully consistent with Comply with regulatory requirements and industry norms. The company conducts quality audits in accordance with the audit plan for all clinical research projects carried out by all R&D centers. (9) Drug production quality management Regarding post-marketing drug production quality management, our company follows the requirements of China’s GMP and uses international standards as a basis for continuous improvement. In the direction of progress, the Group’s production quality management system has been established. All production enterprises of the Group have fully implemented this management system 100%. Department, strictly control product quality. In addition, the Group’s API manufacturers also comply with ICH Q7, US cGMP and EU-GMP Implement the requirements of the quality management system. 9. EHS management Environmental protection and employee health and safety are one of the social responsibilities that enterprises must fulfill. The company adheres to the principle of "life first, safety first" Putting everything first, abiding by laws and regulations, and protecting the environment" EHS values, adhering to the concepts of integrity and sustainable development, advocating for enterprises, 14/27 To achieve the harmonious development of society and the environment, we will solidly promote energy conservation and emission reduction, and fulfill our corporate ecological and environmental responsibilities with practical actions. (1) Employee health The health and safety of employees is the basis for the company's sustainable development. The company strictly abides by and implements the "People's The Law of the Republic of China on the Prevention and Control of Occupational Diseases" and the "Three Simultaneities" Supervision and Management Measures for Occupational Disease Protection Facilities in Construction Projects" and other occupational health regulations Various laws and regulations, continue to improve the occupational health and safety management mechanism, and enhance safety risk prevention and emergency response effectiveness. Beginning We always adhere to the safety concept of "zero accidents and zero injuries" and create a strong cultural atmosphere of caring for life and paying attention to safety, and comprehensively Protect employee health and safety. In 2025, no major safety accidents occurred in our company, and all production companies have annual safety and environmental protection goals and plans. be effectively implemented. (2) Environmental protection ①Environmental management system: The company strictly abides by the "Environmental Protection Law of the People's Republic of China" and the "Environmental Protection Law of the People's Republic of China". "Environmental Impact Assessment Law" and other laws and regulations, combined with the actual operating conditions and the characteristics of the pharmaceutical industry, establish and improve an environmental management system. Ensure that environmental management requirements are fully implemented. Each secondary enterprise of the company follows the requirements of ISO14001 environmental management system and adopts "Plan-Implement-Inspect-Improve" (PDCA) operate and maintain the effectiveness of the system. Regularly accept independent external audits and internal audits. According to the "General Requirements for EHS Management System" and "EHS Meetings and Inspections" Internal systems such as the "Management System" require the establishment of an EHS internal audit system, and regularly conduct environmental Manage audit work, which mainly includes EHS compliance, operation of pollution control facilities, hidden danger investigation, emergency plans and Emergency drills, etc. All companies in the company that have passed ISO14001 environmental management system certification employ third-party certification agencies for each A supervisory audit of the EHS system is conducted once a year, and a re-certification (certificate renewal) audit is conducted every three years. The company has formulated management systems such as the "Three Wastes" and Noise Management System and the "Environmental, Occupational Health and Safety Management Policy" degree, the policy covers the company’s production operations, waste management, etc., and applies to the company’s suppliers and other major businesses service partner. Annual environmental protection work goals and work plans have been formulated, and the completion of various target indicators has been reviewed regularly to provide Contribution to social and environmental sustainable development. As of December 31, 2025, all production subsidiaries of the Group have established internal environmental management systems, and 14 have passed GB/T24001/ISO14001 environmental management system certification, 10 companies passed the cleaner production audit, and 3 companies obtained the "National Green Industry" Factory" title, and one company won the title of "Provincial Green Factory". ②Environmental management goals: The company has formulated environmental management goals and objectives for 2021-2025 with reference to the ESG guidelines of the Stock Exchange. Plan accordingly and regularly follow up on the completion of various target indicators. ③Environmental protection: The company practices the concept of sustainable low-carbon green development and proactively takes measures to deal with climate change. 15/27 The "Climate Change Management System" has been formulated. The system covers the company and all its subsidiaries. The system stipulates the identification and assessment of climate change. risk procedures and require relevant parties of the company to refer to and learn from them. Comprehensively improve energy use through management improvement and technological innovation Benefits, taking energy-saving performance as the main basis for annual work assessment. The company actively carries out the construction of photovoltaic projects and continues to improve High proportion of green electricity usage. ④Water resources management: The company always focuses on effectively promoting water resources management throughout the entire operation process and actively responds to water resource issues. source risks. The company strictly implements the special management system, strengthens the awareness of water resource risk prevention among all employees, and continues to improve the overall level of the group. Water resource risk response capabilities. ⑤Pollution emission control: The company strictly follows the environmental management requirements of construction projects to ensure that all pollutants are handled in compliance with regulations and meet emission standards. In accordance with the "General Principles of Technical Guidelines for Self-monitoring of Pollutant Discharge Units", the company regularly conducts self-monitoring of pollutants to implement We now effectively monitor pollution sources, regularly publish environmental monitoring information, and accept review by regulatory authorities and public supervision. a. Exhaust gas management: The company strictly complies with the "Atmospheric Pollution Prevention and Control Law of the People's Republic of China" and relevant laws and regulations. On the basis of ensuring that exhaust gas emissions stably meet standards, we will continue to deepen exhaust gas emission reduction work and steadily reduce the total amount of pollutant emissions. b. Wastewater management: The company strictly abides by the "Water Pollution Prevention and Control Law of the People's Republic of China" and relevant regulatory requirements, and continues to Improve daily water pollution control requirements, upgrade and optimize sewage treatment processes, and ensure stable and efficient operation of sewage treatment facilities. c. Waste management: The company strictly abides by the "Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste" and other relevant laws regulations, strengthen waste management and control, and ensure that all types of waste are disposed of in compliance with regulations; at the same time, we actively explore harmless and resource-based treatment methods. path, and implement the concept of sustainable development management with practical actions. ⑥Safety risk management and control: The company strictly follows the "dual prevention mechanism of hierarchical safety risk management and control and hidden danger investigation and management" Systematically carry out hazard source management, comprehensively identify potential risks in production and operation activities, products and services, and scientifically assess their risks. Risk levels and implement hierarchical control, and formulate and implement corresponding safety control measures based on risk levels. ⑦Safety emergency management: The company prepares a comprehensive plan based on the "Emergency Emergency Plan Management Measures" and the actual situation. Cover comprehensive emergency, special emergency and on-site response plans, conduct training for relevant personnel and organize regular plan drills, Ensure the pertinence and effectiveness of emergency plans. ⑧ Hidden danger investigation and management: The company has formulated the "Hazard Source Identification and Safety Risk Classification Management System", etc., according to The system conducts regular hidden danger inspections on the production processes, production sites, article storage warehouses, engineering construction sites, etc. of each enterprise. Carry out hierarchical rectification of discovered accident hazards, and regularly review and assess the completion of rectifications. ⑨Safety training and education: The company attaches great importance to employee health and safety publicity and training, based on the actual work content of each position Customize safety training materials and carry out targeted safety education. Promote the overall improvement of health and safety awareness of all employees. In 2025, the company will continue to actively promote the establishment and optimization of the internal EHS management system, strengthen safety production management, Control EHS risks and ensure the safe operation of enterprises. 16/27 ⑩Coping with climate change: Climate change continues to affect human health. As a pharmaceutical company, the company will adhere to the principle of "patient quality of life first" Mission, strive to improve the climate, reduce greenhouse gas emissions, provide solutions to health needs caused by climate change, and strive to efforts to reduce the impact of climate change on the environment and human health. The Company supports the management of climate change impacts in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and disclosures. In order to identify potential risks and opportunities brought about by climate change, the company conducts meetings on the Board of Directors and the Environmental, Social and Governance Committee Under the leadership and supervision of the meeting, establish a climate risk management process and framework, and regularly convene the headquarters management and headquarters EHS departments every year departments, subsidiary management and relevant departments to cooperate in identifying climate risks and opportunities, and with the help of external experts With the help of the company, we will assess relevant risks, formulate response plans and measures, and report to the Environmental, Social and Governance Committee on a regular basis. report work results to ensure that climate change issues are included in the company's strategic decision-making. Environment, Social and Governance Committee The Committee has approved the company’s environmental management goals and carbon emission reduction goals from 2026 to 2030 and the goal of achieving carbon neutrality in 2055. mark. During the reporting period, the Company and its subsidiaries made reference to the TCFD recommendations to conduct an analysis of the climate risks and opportunities they faced. We have conducted a comprehensive assessment and formulated and deployed specific plans and comprehensive work to address climate change and reduce greenhouse gases. 10. Sales business The company strictly abides by the Drug Administration Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and the Advertising Law of the People's Republic of China", "Personal Information Protection Law of the People's Republic of China", "Measures for the Administration of Medical Representatives", "Medical Advertising Advertising Management Measures, Drug Advertisement Examination Measures, and Notice on the Standardized Use of Drug Names in Drug Advertisements. Camp-related laws and regulations, fully implement the national requirements for compliance management in the field of pharmaceutical purchase and sales, and ensure market promotion The entire process of marketing activities is legal and compliant. In 2025, in the face of deepening supervision of the pharmaceutical industry and the "Measures for the Administration of Medical Representatives (Medical Representative Management Measures)" With changes in the policy environment such as the release of "Draft for Comments", the company proactively laid out the compliance management system and further strengthened the launch of drugs. The main responsibility of the license holder is to promote professional and standardized management of medical representatives and ensure that the marketing model is highly regulatory-oriented. Fit. At the level of system construction, the company continues to improve the responsible marketing system and strictly implements the "Livzon Group Labor and Employment" and Code of Conduct and Ethics”, “Livzon Group’s Anti-Corruption and Anti-Commercial Bribery System”, “Livzon Group’s Responsible Marketing Policy”, “Livzon Group’s Responsible Marketing Policy” Code of Conduct for Group Sales Personnel" "Responsible Marketing Policy of the Sales Center of Livzon Group API Division" "Livzon Group Internal regulations such as the "Measures for the Management of Reports and Complaints" fully cover all employees at home and abroad of the group (including overseas offices and temporary employees). employ personnel) to build a solid compliance bottom line from the source of the system. In 2025, the company will focus on strengthening the compliance governance of third-party service providers and strictly implement the "Third-Party Service Provider Management Measures". 17/27 Establish and improve a full life cycle management mechanism covering service provider selection, agreement signing, process control, and assessment and evaluation. Pass Carry out regular compliance training, implement penetrating compliance reviews, establish a cross-departmental risk monitoring and early warning platform, and build a "collective A three-dimensional compliance risk control network with team coordination, department linkage, and layer-by-layer implementation effectively regulates third-party promotion behaviors and effectively prevents Standard compliance risks. The company insists on driving high-quality development through compliance marketing, focusing on assisted reproduction, digestive tract, mental health, traditional Chinese medicine, and tumor immunity. and other key treatment areas, and continue to improve professional medical academic promotion capabilities. Relying on digital marketing platform and AI big data analysis Analysis tools provide accurate insight into clinical needs and market trends, dynamically optimize marketing strategies, and improve resource allocation efficiency and market coverage. cover quality. Through high-quality product evidence-based medical evidence, professional academic communication and good doctor-patient interaction, we continue to consolidate Consolidate the market position of core products and accelerate the layout of global marketing network. In terms of team building, the company adheres to the employment orientation of "meriting talents with both ability and political integrity" and continues to optimize the structure of the sales team. structure and assessment mechanism. By building a multi-dimensional incentive system with compliance bottom line, professional capabilities and performance contribution as the core, we will strengthen Pay equal attention to result orientation and process control, and strive to build a high-quality, professional, and combat-effective marketing iron army to serve the company. It provides a solid guarantee for rapid coverage of the company’s core products and improvement of overall operation quality and efficiency. The company's API and intermediate sales continue to strengthen strategic cooperation with leading international pharmaceutical companies and international animal health companies to ensure Maintaining the leading global market share of high-end antibiotic product series, intermediate product series and pet anthelmintic drug series; while also deeply cultivating the global market share global market, improve customer coverage, strengthen linkage up and down the industrial chain, and jointly enhance market competitiveness. There are currently five sea We have established overseas offices to give full play to local advantages and strengthen customer relations. The sales team has traveled to various parts of the world to participate in the World Pharmaceutical Raw Materials Exhibition (CPHI), while actively visiting customers, actively developing new growth points while effectively circumventing local policies. risk. 11. Asset management The company continues to improve its asset management system, establishes and improves management rules and regulations, clarifies property rights relationships and implements management entities responsibility. The company unifies the business operation specifications for project construction, material procurement, daily management, disposal and other operations of each secondary enterprise, and implements Assets are managed and monitored throughout the entire process from project establishment, bidding, procurement, acceptance, warehousing, allocation, scrapping and other business links to ensure Ensure the safety and integrity of company assets. (1) Procurement business The company is committed to building a responsible supply chain system and adheres to the procurement commitment of "openness, transparency, and quality first." in While strictly controlling the quality compliance of raw and auxiliary packaging materials and non-production materials, we actively empower suppliers and promote their compliance with ISO standards. to further deepen EHS and ESG management practices. The company regards supply chain resilience and anti-risk capabilities as the key to annual performance evaluation. In important dimensions, through the mechanism of "priority procurement at the same price", suppliers are encouraged to improve their level of sustainable development and achieve product 18/27 Collaboration and win-win results between the upstream and downstream of the industry chain. The company continues to promote the construction of a procurement digital platform to