Huadong Medicine: 2025 Board of Directors Work Report

East China Pharmaceutical Co., Ltd.

2025 Annual Board of Directors Work Report

In 2025, the Board of Directors of Huadong Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") strictly complied with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Shenzhen Stock Exchange Stock Listing Rules", "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies" and other relevant laws and regulations, as well as the "Company Articles", "Board of Directors Rules of Procedure" and other regulations, and solidly carried out the work of the Board of Directors. All directors of the company have a responsible attitude towards the company and all shareholders, perform their duties diligently and conscientiously, conscientiously perform the responsibilities assigned by the shareholders' meeting, continue to standardize corporate governance, promote the company's high-quality development, and effectively safeguard the legitimate rights and interests of the company and all shareholders. The main work of the Board of Directors in 2025 is now reported as follows:

1. Analysis of the company’s operating conditions in 2025

2025 is the beginning year of the company’s eighth three-year plan. In the face of policy adjustments and the complex and severe pharmaceutical market environment, the company has always maintained its strategic focus. All Huadong Medicine people have worked hard and proactively under pressure, closely focusing on the overall strategy and annual business goals, adhering to the business philosophy of "development based on war, management as the front line", and taking "promoting entrepreneurship, continuing to deepen reforms, forging organizational systems, and seizing development opportunities" as the action guideline to actively explore high-quality innovative development paths. The company insists on adapting to changes and moving towards the new, solidly promotes the implementation of various key tasks, and achieves continuous breakthroughs in R&D innovation, commercial expansion, and sector synergy and integration. It has delivered high-quality development answers in a complex and ever-changing environment, successfully achieved the phased goals of the eighth three-year plan, and entered a new stage of development that is stable and gaining momentum.

In 2025, the company will achieve operating income of 43.612 billion yuan, a year-on-year increase of 4.07%, and net profit attributable to shareholders of listed companies of 3.414 billion yuan, a year-on-year decrease of 2.78%; net profit attributable to shareholders of listed companies after excluding non-recurring gains and losses will be 3.311 billion yuan, the same as last year.

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down 1.20% from the previous year.

During the reporting period, the company's overall operations remained stable, achieving a comprehensive gross profit margin of 32.36%; the company's net cash flow generated from operating activities was 4.246 billion yuan, a year-on-year increase of 13.25%. As of the end of 2025, the company's total assets were 39.038 billion yuan, net assets attributable to shareholders of listed companies were 24.811 billion yuan, the asset-liability ratio was 35.52%, and the return on net assets (ROE) was 14.28%.

During the reporting period, the overall operating situation of the company's domestic joint-stock companies was good, and the long-term equity investments calculated according to the equity method realized profits; the overseas joint-stock companies (mainly Heidelberg Pharma in Germany and R2 in the United States) suffered operating losses for the current period, and the total impact on the company's consolidated statement net profit according to the equity method was approximately 140 million yuan. In addition, the company's wholly-owned subsidiary Sinclair of the United Kingdom carried out internal personnel and product optimization and adjustments for the EBD business during this period. Affected by the decline in revenue, it suffered operating losses. A total of RMB 78.11 million in goodwill impairment was accrued in this period. If the impact of the aforementioned goodwill impairment factors is excluded, the company's net profit excluding non-recurring gains and losses attributable to shareholders of listed companies in 2025 will be 3.390 billion yuan, a year-on-year increase of 1.13%.

(1) The operation and development of the company’s four major business segments during the reporting period

1. Pharmaceutical industry

During the reporting period, core subsidiary Sino-American Huadong faced complicated industry policies and an increasingly fierce market competition environment. With the pursuit of steady performance growth as its core goal, it took multiple measures to strengthen compliance management, continued to improve the construction of medical, market and access systems, accelerated the layout and promotion of new products, actively expanded new businesses such as medical aesthetics and animal health in public hospitals, and continuously consolidated the company's product pipeline. The overall operation continued to maintain a good growth trend. In 2025, the company's pharmaceutical industry will achieve operating income (including CSO business) of 14.784 billion yuan, a year-on-year increase of 7.04%, net profit attributable to the parent company of 3.355 billion yuan, a year-on-year increase of 15.59%, and a return on net assets of 25.75%.

During the reporting period, as a number of innovative products were approved for launch, the business increment was steadily released, and the contribution of innovative products to revenue continued to rise. During the period, sales and agency service revenue totaled 2.34 billion yuan, a year-on-year increase of 64.2%, accounting for 10% of the pharmaceutical industry (including CSO business)

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The proportion of operating income is 15.81%, and the overall business has entered a high-speed growth channel, which continues to prove the efficiency of the company's R&D achievement transformation and the professionalism of commercial operations.

During the reporting period, the company's R&D investment in the pharmaceutical industry (excluding equity investment) was 2.982 billion yuan, a year-on-year increase of 11.36%, of which direct R&D expenditures were 2.472 billion yuan, a year-on-year increase of 39.64%. Direct R&D expenditures accounted for 16.60% of the pharmaceutical industry revenue. The company's innovative drug research and development center is promoting the research and development of 96 innovative drug pipelines and has achieved a number of positive results in 2025. For details, please refer to the "R&D Investment" section of the company's "2025 Annual Report".

2. Pharmaceutical business

In 2025, the company's pharmaceutical business segment will face the dual pressures of continued deepening of medical insurance fee control and weak end-user consumption. It will adhere to the dual-line efforts in the in-hospital and out-of-hospital markets, coordinate business expansion and operational efficiency improvement, effectively resist external impacts and market competition through proactive internal adjustments and mechanism changes, and achieve overall stable operations. The annual operating income was 28.697 billion yuan, a year-on-year increase of 5.92%; the net profit was 479 million yuan, a year-on-year increase of 5.16%.

3. Medical beauty business

The company's medical aesthetic business adheres to the corporate values ​​of taking professional medicine as the cornerstone, cutting-edge aesthetics as the pillar, and the spirit of innovation as the soul. In 2025, the company's medical beauty sector will be affected by factors such as domestic and foreign market cycle adjustments and intensified competition, and its operations will be under periodic pressure. During the reporting period, the company's total operating income from the medical beauty sector reached 1.826 billion yuan (excluding internal offsetting factors), a year-on-year decrease of 21.50%. Among them, Sinclair achieved sales revenue of approximately 958 million yuan during the reporting period, a year-on-year decrease of 0.95%; Sinclair China achieved annual operating income of 780 million yuan, a year-on-year decrease of 31.50%. Currently, the domestic medical aesthetics industry is in a new stage of deep adjustment and return to rational development. The company will continue to deepen internal strategic coordination, solidly promote brand building and market cultivation, strive to build product differentiation core competitiveness, and effectively avoid homogeneous price competition. Relying on a diversified product matrix and multi-product joint solutions, it accurately matches the diverse needs of beauty seekers, continuously improves the terminal consumer experience, and further consolidates the company's leading position in the domestic high-end injection medical beauty market.

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It also continues to increase channel coverage in public hospitals and private chain institutions, steadily increasing market share and industry influence.

In the face of industry cycle fluctuations and external environmental challenges, the company has always firmly increased R&D investment and product pipeline layout, continued to optimize the global channel network and product structure, and efficiently promoted domestic and foreign clinical trials and registration and certification processes in key markets. In 2026, as a number of key new products are successively launched and commercialized, the company's medical aesthetics product matrix will be further enriched and improved, and its comprehensive competitive strength and market coverage capabilities are expected to continue to increase, pushing the medical aesthetics business to gradually step out of the industry adjustment cycle and return to the track of steady growth.

During the reporting period, Xinkeli Aesthetics continued to strengthen the pipeline layout of injection products with the company's main brand as the core, and promoted the coordinated development of its multiple sub-brands. The company closely links global R&D resources, always adheres to the principle of giving priority to professional medicine, continuously improves its professional influence on B-end medical aesthetic institutions and brand awareness among C-end beauty seekers, and strives to create a brand image of "innovation, professionalism and aesthetics". At present, a dual-channel parallel business structure of public hospitals and private medical aesthetic institutions has been established, which can better meet the diversified, professional, high-end and personalized aesthetic needs of beauty seekers.

4. Industrial microbiology business

During the reporting period, the company continued to deepen the development strategy of the industrial microbiology sector. On the basis of firmly advancing the strategic layout of the four major business directions of xRNA, specialty APIs & intermediates, general health & biomaterials, and animal health, the company continued to strengthen product R&D innovation and domestic and overseas market development capabilities. It will speed up the international layout and deeply integrate into the global pharmaceutical industry supply chain as its core tasks at this stage, and has achieved remarkable results in the expansion of domestic and foreign key customers. After years of exploration and practice, the company has embarked on a high-quality development path that combines challenges and growth. During the reporting period, the overall operating situation of each business unit continued to improve, and all achieved growth against the trend. The total sales revenue was 777 million yuan, an increase of 9.34% over the same period last year. Among them, the xRNA sector and the animal health sector both maintained growth of around 50%.

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(2) The development of the company’s BD cooperation during the reporting period

On August 8, 2025, the exclusive commercialization cooperation agreement for VC005 reached between the company's wholly-owned subsidiary Huadong Medicine (Hangzhou) Co., Ltd. (hereinafter referred to as "Huadong Medicine Hangzhou") and Jiangsu Weikel Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Jiangsu Weikel") officially came into effect. Huadong Medicine Hangzhou has obtained the exclusive commercial licensing rights for Jiangsu Weikel's VC005 oral dosage form in mainland China. For details, please refer to the "Announcement on the Signing of an Exclusive Product Commercialization Cooperation Agreement by a Wholly-Owned Subsidiary" (Announcement Number: 2025-078) disclosed by the company on the cninfo.com (http://www.cninfo.com.cn).

In order to further enrich the company's industrial investment ecosystem, expand the industrial chain layout, better utilize the professional strength and resource advantages of professional institutions, integrate resources from all parties, and improve the company's core competitiveness, August 18, 2025 On the same day, as a limited partner, the company signed the "Hangzhou Fuguang Hongze Equity Investment Partnership (Limited Partnership) Partnership Agreement" with the general partner, executive partner and fund manager Shanghai Fuguang Private Equity Fund Management Co., Ltd., the limited partner Hangzhou Industrial Investment Co., Ltd., and the limited partner Hangzhou Gongshu Industrial Fund Co., Ltd., and jointly invested in the establishment of "Hangzhou Fuguang Hongze Equity Investment Partnership (Limited Partnership)" (hereinafter referred to as the "Special Pharmaceutical Industry Investment Fund"). The total subscribed capital contribution of the special pharmaceutical industry investment fund is RMB 2 billion, of which the Company, as a limited partner, subscribed RMB 980 million with its own funds, and the subscribed capital contribution ratio is 49.00%. For details, please refer to the "Announcement on the Joint Investment and Establishment of Special Pharmaceutical Industry Investment Funds and Related Transactions with Professional Investment Institutions" disclosed by the company on the Juchao Information Network (http://www.cninfo.com.cn) (Announcement No.: 2025-083).

As of September 22, 2025, the special pharmaceutical industry investment fund has completed industrial and commercial registration and has completed registration with the China Securities Investment Fund Industry Association, and the first phase of funds has been raised. For details, please refer to the "Relationships" disclosed by the company on cninfo.com (http://www.cninfo.com.cn)

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Announcement on the progress of jointly investing in and establishing a special pharmaceutical industry investment fund and related transactions with professional investment institutions (Announcement No.: 2025-087). Up to now, the special pharmaceutical industry investment fund has completed five rounds of fund raising and signed multiple investment project agreements. The target companies cover innovative drugs, cell therapy, medical devices and other fields.

On October 9, 2025, the company's wholly-owned subsidiary Huadong Medicine Hangzhou announced that it had reached an exclusive commercial cooperation in mainland China with Hangzhou Changxi Pharmaceutical Co., Ltd. (hereinafter referred to as "Changxi Pharmaceutical") for Changxi Pharmaceutical's product CXG87 (modified budesonide/formoterol inhalation powder spray). CXG87 is a Class 2.2 new drug independently developed by Changxi Pharmaceuticals and is used to treat respiratory diseases such as asthma. According to the terms of the agreement, Changxi Pharmaceutical, as the MAH holder, is responsible for the research and development, registration, production and supply of CXG87 products; East China Medicine will be responsible for the commercial promotion of CXG87 products in mainland China.

On December 07, 2025, the company's wholly-owned subsidiary Huadong Pharmaceutical (Hangzhou) Co., Ltd. announced that it has reached an exclusive commercialization cooperation in mainland China with Guizhou Sannuo Biotechnology Co., Ltd. and its wholly-owned subsidiaries Shanghai Sannuo Pharmaceutical Technology Co., Ltd. and Jiangsu Terui Sannuo Biomedical Technology Co., Ltd. (hereinafter referred to as "Shenguo Pharmaceutical") for the pharmaceutical product Linaratamide glutarate capsules and other dosage forms in mainland China. Linaratide is a new generation of potassium ion competitive acid blocker drugs developed in collaboration with Cinclus Pharma for the treatment of digestive system diseases. Currently, the drug has been approved in China for the indication of reflux esophagitis and has successfully entered the 2025 National Medical Insurance List. According to the terms of the agreement, Sinopharm, as the MAH holder, is responsible for the research and development, registration, production and supply of linaratide; East China Medicine will be responsible for the commercial promotion of linaratide in mainland China.

2. Daily work of the Board of Directors in 2025

1. The convening of the company's board of directors meetings during the reporting period, the board of directors' implementation of the resolutions of the shareholders' meeting/shareholders' meeting (the shareholders' meeting/shareholders' meeting authorized the implementation of projects by the board of directors), the performance of independent directors and special committees of the board of directors, and the status of standardized operations

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(1) During the reporting period, the company held a total of 3 general meetings/shareholders meetings, all of which were chaired by the Board of Directors.

convening, no shareholder individually or collectively holding more than 10% of the company’s shares requested a convening, independent

The situation where the independent director or the board of supervisors proposes to convene a general meeting of shareholders/shareholders, and there is no major event

Items are implemented first and reviewed later. The status of the general meeting/shareholders meeting during the reporting period is as follows:

investor

Conference Session Conference Type Convening Date Disclosure Date

Participation Ratio Meeting Resolution

subtype period period

Example

"China Securities News" "Securities Times"

"Shanghai Securities News" and Juchao Capital 2024 2025 2025 News website

stock of the year

Degree shareholders 67.16% May 15 May 16 (www.cninfo.com.cn)

East Assembly

Meeting Day Day The company's "Announcement on Resolutions of the 2024 Annual General Meeting of Shareholders" (Announcement No.: 2025-042)

"China Securities News" "Securities Times"

"Shanghai Securities News" and Juchao Capital 2025

2025 2025 news website

First time temporary shares

65.78% Extraordinary general meeting of shareholders on July 16 and July 17 (www.cninfo.com.cn)

Day Day The company's "First Extraordinary Eastern Conference in 2025"

Announcement of Resolutions of the General Meeting of Shareholders" (Announcement Number: 2025-068)

"China Securities News" "Securities Times"

"Shanghai Securities News" and Juchao Capital 2025

2025 2025 news website

Second temporary share

61.26% December 09 Extraordinary shareholders meeting on December 10 (www.cninfo.com.cn)

Day Day The company's "Second Extraordinary Eastern Conference in 2025"

Announcement of Shareholders' Meeting Resolutions" (Announcement No.: 2025-111)

(2) During the reporting period, the company held a total of 8 board meetings. The board of directors strictly followed the

Convene and convene board of directors meetings in accordance with the requirements of the "Articles of Association" and "Rules of Procedure of the Board of Directors", and the voting procedures

The order complies with the requirements of laws and regulations. The situation of the board of directors during the reporting period is as follows:

Meeting session Convening date Disclosure date Meeting resolution

"China Securities News" "Securities Times"

Newspaper", "Shanghai Securities News" and the Tenth Board of Directors Juchao Information Website

April 16, 2025 April 18, 2025

The 32nd meeting (www.cninfo.com.cn)

day day

The company's "Announcement on Resolutions of the 32nd Meeting of the 10th Board of Directors" (Announcement Number: 2025-021)

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"China Securities News", "Securities Times", "Shanghai Securities News" and the 10th Board of Directors Juchao Information Website April 24, 2025 April 25, 2025

The 33rd meeting (www.cninfo.com.cn) last day

The company's "Announcement on Resolutions of the Thirty-third Meeting of the Tenth Board of Directors" (Announcement No.: 2025-034), "China Securities Journal", "Securities Times", "Shanghai Securities News" and the Tenth Board of Directors Juchao Information Website June 27, 2025 July 01, 2025

The 34th meeting (www.cninfo.com.cn) last day

The company's "Announcement on Resolutions of the Thirty-Fourth Meeting of the Tenth Board of Directors" (Announcement No.: 2025-048), "China Securities Journal", "Securities Times", "Shanghai Securities News" and the Eleventh Session of Directors of Juchao Information Website July 16, 2025 July 17, 2025

(www.cninfo.com.cn) The first meeting of the meeting day day

The company's "Announcement on Resolutions of the First Meeting of the Eleventh Board of Directors" (Announcement No.: 2025-070), "China Securities News", "Securities Times", "Shanghai Securities News" and Juchao Information Website Eleventh Director August 18, 2025 August 20, 2025

(www.cninfo.com.cn) The second meeting of the meeting Day Day

The company's "Announcement on Resolutions of the Second Meeting of the Eleventh Board of Directors" (Announcement No.: 2025-079), "China Securities News", "Securities Times", "Shanghai Securities News" and the Eleventh Director of Juchao Information Website October 13, 2025 October 15, 2025

(www.cninfo.com.cn) The third meeting of the meeting day day

The company's "Announcement on Resolutions of the Third Meeting of the Eleventh Board of Directors" (Announcement No.: 2025-090), "China Securities News", "Securities Times", "Shanghai Securities News" and Juchao Information Website Eleventh Director October 27, 2025 October 28, 2025

(www.cninfo.com.cn) The fourth meeting of the meeting day day

The company's "Announcement on Resolutions of the Fourth Meeting of the Eleventh Board of Directors" (Announcement No.: 2025-097) The Eleventh Board of Directors November 20, 2025 November 22, 2025 "China Securities Journal", "Securities Times Fifth Meeting", "Shanghai Securities News" and

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The company's "Announcement on Resolutions of the Fifth Meeting of the Eleventh Board of Directors" (announcement number: 2025-103) on the Cninfo website (www.cninfo.com.cn)

The attendance of directors at the board of directors and general meeting/shareholders meeting during the reporting period is as follows:

Directors’ attendance at the board of directors and general meetings/shareholders meetings

Is it connected?

This report is continued twice by communication. Attendance Unit

Out on site, out on commission, absentee director

Director’s surname. Should participate in the period. Method of participation. Not in person. Chairman’s meeting/Director’s Chair. Director’s Chair. Number of board meetings.

Name Added Director Added Director Number of Participated Directors and Shareholders Meetings Number of Meetings

Number of meetings Number of meetings Number of meetings

Luliang 8 8 0 0 0 No 3

Kang Wei 8 1 7 0 0 No 3 Zhu Feipeng 8 1 7 0 0 No 3

Wang Yang 8 1 7 0 0 No 3 Qian Yuchen 5 0 5 0 0 No 1 Dong Jiabo 5 1 4 0 0 No 1 Zhu Liang 8 8 0 0 0 No 3

Huang Jian 8 1 7 0 0 No 3 Wang Ruwei 8 1 7 0 0 No 3 Xue Lixiang 5 0 5 0 0 No 1 Wei Shuzhen 5 0 5 0 0 No 1

Ye Bo 3 1 2 0 0 No 2Gao Xiangdong 3 1 2 0 0 No 2

Directors raised objections to company-related matters: During the reporting period, directors raised objections to company-related matters.

No objection was raised regarding the matter.

Other instructions for directors to perform their duties: During the reporting period, all directors of the company strictly followed the relevant regulations.

Relevant laws and regulations, normative documents, "Articles of Association", "Rules of Procedure of the Board of Directors" and other provisions,

Conscientiously perform obligations and exercise powers, strictly implement the resolutions of the shareholders’ meeting, and actively carry out various meetings of the board of directors.

work, carefully review various proposals of the board of directors, exercise voting rights in accordance with the law, and actively participate in the company's

governance and decision-making activities, and constantly standardize corporate governance; independent directors act in a responsible manner for the company and all shareholders

Responsible attitude, diligently and loyally perform the duties and obligations of independent directors, and carefully review

various proposals of the Board of Directors, and expressed objective opinions on relevant matters under review based on an independent stand,

Actively promote the standardized operation of the board of directors and improve the level of corporate governance, safeguarding the interests of the company and all

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investors' interests. The company has adopted all the above suggestions.

(3) During the reporting period, the company’s independent directors performed their duties honestly, diligently and independently in accordance with the provisions of the Company Law and other departmental regulations, normative documents and system rules, paid attention to and actively safeguarded the legitimate rights and interests of small and medium-sized shareholders, expressed independent opinions on relevant matters in accordance with the "Independent Director Work System", effectively safeguarded the interests of the company and shareholders, especially small and medium-sized shareholders, and gave good play to the supervisory role of independent directors. During the reporting period, the company held a total of 3 special meetings of independent directors.

The company's board of directors has established a strategy committee, an audit committee, a nomination committee, a remuneration and assessment committee, and a sustainable development (ESG) committee. During the reporting period, each special committee of the board of directors made suggestions in investment decision-making, financial management, business operations, internal governance, human resources, etc., and provided professional reference and constructive opinions for the board of directors' decision-making. During the reporting period, the company held a total of 8 meetings of the Audit Committee, 2 meetings of the Nomination Committee, 4 meetings of the Remuneration and Appraisal Committee, 2 meetings of the Strategy Committee, and 2 meetings of the Sustainable Development (ESG) Committee.

The status of the special committees under the board of directors during the reporting period is as follows:

objection raised

Other specific project performance committee members’ information Meeting held Important significance

Date of convening, content of meeting, responsibilities, name of situation, number of meetings, opinions and suggestions

situation (if discussed)

Yes) audit committee, company

Some of the company’s senior executives and managers

The 10th Responsible Company Audit Work

annual review

The board of directors’ certified public accountants and

planning work

Audit Committee Huang Jian and project manager conducted the review

as planned

Committee Kang Wei, 8 2025-04-03 Plan implementation stage communication None None

In progress, not yet

2025 Wang Ruwei Tong, to the company 2024

Found heavy

Focus on the first annual report audit

Big problem.

Major matters discussed at the meeting and

audit committee conducts

Communicate and discuss.

The 10th Huang Jian, Audit Committee, Corporate Annual Review

Board of Directors Kang Wei, 8 2025-04-15 Some senior executives and accounting work of the company None No audit committee Wang Ruwei Responsible for the company’s audit work As planned

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The committee's certified public accountants and the project manager conducted an audit in 2025 and found major problems during the completion stage of the second plan. Conference Pass, Company 2024

Annual report audit completion status

status and audit committee

Communicate and discuss.

1. "About the Company"

<2024 Annual Financials

Final accounts report>discussions

case";

2. "About the Company"

<2025 Annual Financials

Budget Report>Proposal

case";

3. "About the Company"

<2024 Annual Report

Report and its summary>

Bill";

4. "About the Company"

<2024 Internal Company

Control self-evaluation report to the 10th session of the Ministry of Audit > Proposal>; Work is carried out in accordance with the Board of Directors 5. "About the Company Planned Audit Committee Huang Jian, <2024 Annual Profit Orderly Meeting Kang Wei, 8 2025-04-15 Distribution Plan> Proposal, not issued None None 2025 Wang Ruwei Case"; The current major third 6. "About the issue of renewal meeting; review meeting Proposal passed by the accounting firm; All resolutions

7. “About the 2025 Case. Annual provision for subsidiaries

Proposal for Providing Guarantee";

8. "About 2025"

Annual daily communication

"Easy to predict the motion";

9. "About <2024"

Accountant of the Year

Evaluation of performance of duties

Report>Proposal";

10. "About<Directors

Audit Committee

Accounting for 2024

Law Firm Executive Supervisor

Page 11 of 21

Supervisory Responsibilities Report

"Proposal";

11. "About Accounting"

Proposal for policy changes

case";

12. "About the Company"

internal audit department

2024 Annual Work Summary

"Concluded Motion";

13. "About the Company"

internal audit department

2025 annual work plan

planning motion

1. About the company Within the company

Proposal on the "Tenth Annual Report of the Department Audit in the First Quarter of 2025"; work is carried out according to the Board of Directors 2. Regarding the company's internal plan, the Audit Committee Huang Jian, the audit department's orderly implementation meeting in 2025 Kang Wei, 8 2025-04-24 The first quarter work general implementation, not yet issued None No resolution concluded in 2025 Wang Ruwei; the current major fourth 3. Regarding the company's internal issues; review meeting The audit department will pass all planned proposals on the second quarter work plan for 2025.

1. "About Revision<

Audit Committee of the Board of Directors

Rules of Procedure>

Bill";

2. "About Revision<

External guarantee management system

Degree>Proposal》;

The tenth

3. "About Revision<

board of directors

Related party transaction management system

Audit Committee Huang Jian, Review Tong

Degree>Proposal》;

Member Kang Wei, 8 2025-06-27 Passed all None None

4. "About Revision<

2025 Wang Ruwei motion.

foreign investment management system

fifth time

Degree>Proposal》;

meeting

5. "About Revision<

Securities investment, futures

Derivatives trading management

Management System>Proposal";

6. "About Revision<

accounting policy, accounting

Estimate changes and accounting

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error correction management system

Degree>Proposal》;

7. "About Revision<

Accounting firm selection

Recruitment system > Proposal";

8. "About new additions<

Anti-corruption and anti-fraud

System>Proposal";

9. "About new additions<

responsible marketing policy

Policy>Proposal》

eleventh

term directors

Auditor Huang Jian, "About the Appointment of the Company"

Review committee Kang Wei, 8 2025-07-16 Financial person-in-charge’s proposal None None

passed the motion. 2025 Wei Shuzhen Case"

first time

meeting

1. "About the Company

Ministry Audit Department 2025

Work in the second quarter of the year

Summary motion";

2. "About the company

Corporate Internal Audit Department 2025

Ministry audit

Work in the third quarter of the year

Eleventh work button

Plan motion";

Directors according to plan

3. "About the Company"

Auditing Huang Jian, orderly implementation

<half year 2025

Committee Kang Wei, 8 2025-08-18 Shi, not issued None None

Report>and its summary

2025 Wei Shuzhen appears major

Proposal";

second question; trial

4. "About the Company"

The meeting passed <half year of 2025

All Profit Distribution Plans>

case. Proposal";

5. "About developing packages

Hedging financial derivatives

Negotiations on biological products trading

case"

Eleventh 1. "About the Company" Internal Audit of the Company's Internal Directors <Third Quarter of 2025

Huang Jian,

Proposal of the meeting's audit report>; work rules

Kang Wei, 8 2025-10-27 None No Committee 2. "About Revision<According to the Plan

Wei Shuzhen

In 2025, the internal audit management system will be implemented in an orderly manner for the third time; the proposal has not yet been issued.

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Meeting 3. "Proposal on the company's major internal audit department 2025 issues; review of the third quarter work meeting and summary"; all discussed

4. "About internal company cases." Work of the Ministry’s Audit Department in the fourth quarter of 2025

Plan motion

1. "About the revision of the Rules of Procedure of the Nomination Committee of the Board of Directors"

Bill";

The tenth

2. "About the Company's Board of Directors"

The Board of Directors General Election and Nomination Committee Huang Jian, reviewed and approved the proposal to nominate candidates for the 11th Board of Directors Kang Wei, 2 2025-06-27 passed all None None Non-Independent Director Gao Xiangdong in 2025"; for the first time

3. "About the Company's Board of Directors Meeting"

General Election of the Board of Directors and Nomination of Independent Director Candidates for the Eleventh Board of Directors

Proposal for Selection of Personnel"

1. "Proposal on Appointment of General Manager of the Company"

case";

2. "Proposal on Appointment of the Eleventh Deputy General Manager of the Company";

Huang Jian, 3. "Proposal on the Appointment of the Company's Board Secretary Kang Wei, 2 2025-07-16 Nomination of the Company's Board of Directors No No 2025 Wang Ruwei; Proposal for the First Time 4. "Proposal on the Appointment of the Company's Financial Personnel

Bill";

5. "About the Appointment of the Company's Securities Affairs Representative"

motion"

The tenth

The Board of Directors Confirms the Company’s Gao Wangru

Salary and level management personnel 2024 Wei, Lv Reviewed and approved by the Appraisal Committee 4 2025-04-15 Annual salary and formulation None No Liang, Gao approved by the committee 2025 Annual Salary Examination Xiangdong

2025 Nuclear Program Proposal

first time

Page 14 of 21

meeting

1. "Proposal on Adjusting the Repurchase Price of Restricted Stock Incentive Plan in 2022"; 10th Session 2. "On Repurchasing and Invoking the Board of Directors to cancel part of the restricted stock compensation and Wang Ru votes and reduce the company's invoices"

Reviewing and approving the proposal of Wei and Lu Ce Capital of the Assessment Committee; 4 2025-06-27 Passed all None None Liang and Gao 3. "About Revision<

Proposal on the 2025 Xiangdong Board of Directors’ Second Meeting of Procedures for Remuneration and Appraisal of the Board of Directors;

4. "Discussion on the Directors' Subsidy Plan for the Eleventh Board of Directors of the Company"

case"

eleventh

"About the limited term directors in 2022"

Mandatory stock incentive accounting compensation Wang Ru

Planning reservation grant restrictions, review and assessment Wei, Wei

4 2025-10-13 The second solution to Sex Stock Passed all No No Committee Shuzhen,

Excluding the restricted sale period, proposal for 2025 Xue Lixiang

The first time the sale conditions were achieved

case"

meeting

1. "About the 2022 Restricted Stock Incentive Plan for the First Grant of the Eleventh Restricted Stock to the Third Director of the Restricted Stock Period and the Remuneration to Wang Ru to Remove the Restricted Sales Conditions"

"Deliberation and Assessment of Wei and Wei's Proposal";

4 2025-11-20 Passed all None No committee Shuzhen, 2. "About adjustments

Proposal on the price of Xue Lixiang’s second restricted stock repurchase meeting in 2022 in 2025;

3. "About the repurchase and cancellation of some restricted shares"

vote motion

The tenth

"About the Amendment<Board of Directors Lu Liang,

Strategy Committee of the Council Reviewed and approved by the Strategy Committee Wang Yang, 2 2025-06-27 None Proposal without rules of procedure > Council Wang Ruwei

case"

2025

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first time

meeting

eleventh

"About Professional Investment"

Luliang,

Co-invested by social and strategic investment institutions

Zhu Fei Review Committee 2 2025-08-18 Establishing special pharmaceutical industry None None

Peng and Wang passed the proposal on 2025 industrial investment funds and related

Ruwei

Proposal for the first joint transaction

meeting

The tenth

board of directors

sustainable

Zhu Fei About the company "2024

develop

Peng, Ye Annual Environmental and Social Review (ESG) 2 2025-04-15 None None

Wave, High and Governance (ESG) Pass Committee

"Report to the East" motion

2025

first time

meeting

The tenth

board of directors

Sustainability "About the Revisions"

Zhu Fei

Development Council Sustainable Development

Peng, Ye Review (ESG) 2 2025-06-27 (ESG) Committee None None

Bo and Gao passed the Proceedings Committee Rules of Procedure>

eastward

2025 Case》

second time

meeting

2. Company information disclosure, investor relations management, and ESG governance during the reporting period

Waiting for work

(1) Information disclosure

The company regards information disclosure as an important part of corporate governance and is committed to providing investors, regulators

Provide true, accurate, complete and timely information to regulatory agencies and the public. The company strictly follows

Observe internal systems such as the "Information Disclosure Management System" and "Insider Information and Insider Management System",

Ensure that information disclosure is standardized and orderly. In order to improve the efficiency and transparency of information disclosure, the company

Formulate the "Working Rules for Internal Reporting of Major Information" to clarify the division of responsibilities of each department and communicate them through

Collaborate through multiple channels such as email, phone calls and internal processes to ensure efficient transmission of important information

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Delivery and timely disclosure. The company actively practices the concept of proactive information disclosure and displays the company's latest progress in production operations, R&D innovation and strategic layout through regular reports, temporary announcements and other forms. In order to facilitate foreign investors to understand the company's dynamics, the company releases regular reports in English to further enhance its international communication capabilities. In addition, the company continues to innovate in the form of information disclosure and launches visual tools such as "One Picture to Understand" regular reports to present the company's operating results and development plans in a more intuitive way, improving the practicality and readability of information disclosure.

At the same time, the company regularly organizes special training on information disclosure to strengthen the compliance awareness of all employees and provide strong support for the high-quality development of information disclosure work. In 2025, the company continued to strengthen its information disclosure work and disclosed 182 documents to the outside world throughout the year, including 8 regular reports (including 4 regular reports in English) and 109 temporary announcements; maintaining "zero supplements, zero corrections, and zero inquiries", during the reporting period, the company did not receive any penalties due to information disclosure violations.

(2) Investor relations management

The company regards investor relations management as an important part of corporate governance, is committed to establishing smooth and efficient communication channels, and continues to improve the quality of interaction with the capital market. The company has formulated internal systems such as the "Investor Relations Management System", "Publicity Management System" and "Investor Reception and Promotion Work System" to ensure that investor relations management work is carried out in a standardized and orderly manner. Through diversified investor communication activities, we actively convey the company's operating results and development strategies, effectively protect investors' right to know, and enhance the market's recognition of the company's long-term value. The company actively organizes special activities such as investor Q&A sessions, performance briefings, investor research activities, and "Investor Reception Day" to provide in-depth interpretations of the company's strategy and financial performance.

In 2025, the company responded to 167 investor questions through the Shenzhen Stock Exchange’s interactive platform, with the number of responses increasing by 16% compared with last year, and the response rate reaching 100%. At the same time, the company has assigned dedicated personnel to answer the investor hotline and promptly respond to investor concerns through the official email and investor relations email to ensure smooth communication channels.

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In order to fully demonstrate the company's core values and development prospects, the company actively organizes performance briefings and research activities to maintain close interaction with investors. In 2025, the company held a total of 5 performance exchange meetings (including 1 performance briefing meeting), organized multiple on-site and online investor surveys throughout the year, and participated in 41 external strategy meetings. The company's management and various business teams have in-depth exchanges with investors to explain in detail the company's strategy, financial performance and business progress. These activities effectively enhance investors' confidence in the company's future development prospects and further enhance the company's recognition in the capital market.

In order to shorten the distance with investors, the company specially planned the "Investor Reception Day" event to provide opportunities for face-to-face communication. In 2025, the company’s “Investor Reception Day” event attracted the participation of 221 institutional and individual investors. The company's management provided detailed answers to investors' concerns regarding business strategy, financial status, R&D progress and other issues. This activity helps investors fully understand the company's business and development plans, and enhances investors' long-term confidence in the company.

The company has built a complete new media communication matrix, including WeChat official account, Tongshun account, Snowball Enterprise account and Oriental Fortune Enterprise account. In 2025, the company will flexibly use various new media tools to convey the latest developments such as the company's operating status, BD project introduction, R&D progress, award-winning information, and interpretation of regular reports to the capital market and investors in a concise and novel form.

In 2025, the "Huadong Pharmaceutical Investor Relations" WeChat public account published a total of 105 WeChat tweets, with a cumulative number of clicks of more than 195,000 times throughout the year and more than 11,800 subscribers. The official Tongshun account of Huadong Medicine has nearly 1.8 million followers, making it an important window for conveying news to investors. Since its establishment, the official corporate account of Huadong Medicine Snowball has become another important media platform for the company for investors, with nearly 6,500 fans. In order to broaden investor communication channels, in July 2025, the company established a new Huadong Medicine Oriental Fortune Enterprise Account, and the company's stock attention has exceeded 630,000.

(3) ESG governance

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In terms of ESG governance, the company has always adhered to the concept of sustainable development. The company's board of directors has set up a sustainable development (ESG) committee to coordinate the company's ESG work, integrate the core theories of ESG with corporate development strategies and daily operational management, guide and innovate the company's work with a scientific concept of social responsibility, adhere to green production, respond to the dual-carbon strategy of "carbon neutrality, carbon peaking", insist on operating in compliance with laws and regulations, and actively practice social responsibilities. During the reporting period, the company relied on its excellent ESG governance capabilities to raise its WIND ESG rating from A to AA. In addition, the company currently has an ESG rating of AAA from Shenzhen Stock Exchange, China Securities ESG Rating, and Huazheng ESG Rating. It has also won the "2025 Best Practice Case for Sustainable Development Cases of Listed Companies" from the China Listed Companies Association, the "ESG Best Practice" from "New Fortune" magazine in 2024, and the "2025 E-pharmaceutical Manager" "Biomedicine Sustainable Value Pilot Award" and "2025 Chinese Pharmaceutical Listed Companies ESG Competitiveness TOP20 (Large Cap Stocks)" and other honors.

For more information related to information disclosure, investor relations management and ESG governance, please refer to the "Huadong Medicine: 2025 Environmental, Social and Governance (ESG) Report" released by the company. (4) Improve system construction

In 2025, in accordance with the latest provisions of relevant laws, regulations and normative documents such as the "Company Law of the People's Republic of China", the China Securities Regulatory Commission's "Transitional Arrangements for the Implementation of Supporting Systems and Rules of the New Company Law" and the "Guidelines on the Articles of Association of Listed Companies" and other relevant laws, regulations and normative documents, and based on the actual operation and development of the company, the company added or revised 27 governance systems, including the "Articles of Association" and relevant rules of procedure, to promote the smooth implementation of the reform of the Board of Supervisors and achieve a smooth transition for the Audit Committee of the Board of Directors to assume the supervisory powers of the Board of Supervisors. The continuously improving institutional system has further clarified the boundaries of powers and responsibilities of each governance body, optimized the discussion and decision-making process, strengthened the performance guarantee of independent directors and special committees, made the corporate governance system more in line with the requirements of market-oriented development and standardized operation, provided solid institutional support for the scientific and efficient operation of the company's business decisions, and effectively protected the legitimate rights and interests of the company, shareholders and all stakeholders.

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(5) Reelection of the Board of Directors

In 2025, the company's board of directors successfully completed the re-election in accordance with the requirements of laws and regulations such as the Company Law and the Articles of Association Guidelines for Listed Companies; at the same time, the board of supervisors was abolished and the audit committee performed its duties; and a new generation of senior managers was appointed. In addition, in 2025, an employee director will be elected by the company’s employee representative conference to represent employees in decision-making and safeguard the legitimate rights and interests of employees.

(6) Profit distribution

In June 2025, the company implemented the 2024 annual profit distribution, distributing a total cash dividend of 1,017,364,687.84 yuan (tax included). In September 2025, the company implemented the 2025 semi-annual profit distribution, distributing a total cash dividend of 613,907,366.80 yuan (tax included). The profit distribution plan for 2025 is to distribute cash dividends of RMB 1,017,167,371.84 (tax included). The company's cumulative cash dividends in the past three fiscal years totaled 4,279,941,296.12 yuan (including the 2025 profit distribution plan to be implemented), accounting for 43.83% of the total net profit attributable to shareholders of listed companies in the past three fiscal years.

The company has distributed dividends 25 times since its listing, with a cumulative dividend amount of 8.873 billion yuan, 35.49 times the 250 million yuan raised in the IPO, bringing sustained and stable investment returns to shareholders.

3. Key tasks of the Board of Directors in 2026

In 2026, the company's board of directors will continue to actively play its core role in corporate governance. Based on the company's actual situation and development strategy, and adhering to the principle of being responsible to all shareholders, it will actively respond to various difficulties and challenges, face difficulties, do a solid job in the daily work of the board of directors, make scientific and efficient decisions on major company matters, further consolidate the company's core competitive advantages, and promote the company's high-quality development in an all-round way. Focus on doing the following work:

(1) Promote the completion of 2026 business goals

In 2026, the company's board of directors will continue to proceed from the interests of all shareholders, continue to strengthen standardized operations, continue to improve corporate governance, maintain strategic focus, and urge the management to further

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We will further implement the assessment of business objectives, insist on taking economic benefits as the core driver, constantly optimize business strategies, improve production efficiency and service quality, so as to achieve steady and sustainable development of the enterprise. In the process of pursuing economic benefits, we always incorporate social responsibilities into strategic planning, focus on environmental protection, employee rights protection, community harmonious construction, and support for public welfare undertakings, striving to achieve the dual improvement of economic benefits and social benefits, and achieve the win-win goal of corporate development and social progress.

(2) Continue to improve the company’s standardized operations and governance levels

1. In 2026, in accordance with the regulatory requirements of the capital market, the board of directors will continue to improve the corporate governance structure, improve the internal control system, strengthen risk management, improve decision-making levels, realize a virtuous cycle of the company's development, and provide strong protection for the legitimate rights and interests of the company's shareholders.

2. The company will continue to standardize and solidly manage investor relations, improve the normalized communication mechanism, and actively communicate the company's operating results, strategic layout and development prospects to the capital market in a true, accurate, complete, timely and fair manner through performance briefings, investor surveys, information disclosure and other channels, so as to enhance the market and investors' understanding and recognition of the company's value. At the same time, we further strengthen the concept of market value management, coordinate business development and capital market performance, continuously improve corporate governance and core competitiveness based on sustained and stable operating performance, effectively protect the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders, promote the company's market value to match its intrinsic value, and achieve sustainable, stable and healthy development of the company.

3. The board of directors will continue to strengthen the training of directors and senior managers, actively organize directors and senior managers to participate in relevant laws and regulations training and study of rules and regulations, and improve self-discipline awareness and work standardization.

Board of Directors of East China Pharmaceutical Co., Ltd. April 24, 2026

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