CytoBio: 2025 Annual Report Summary

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

Securities code: 300583 Securities abbreviation: Cyto Biotechnology Announcement number: 2026-018

Shandong Saito Biotechnology Co., Ltd. 2025 Annual Report Summary

1. Important tips

The summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plans, investors should go to the media designated by the China Securities Regulatory Commission to carefully read the full text of the annual report.

All directors have attended the board meeting where this report was considered.

The audit opinion of Tianjian Accounting Firm (Special General Partnership) on the company's financial report for this year is: standard unqualified opinion. Non-standard audit opinion tips

□Applicable Not applicable

The company was not profitable when it went public and is not currently profitable.

□Applicable Not applicable

The profit distribution plan for the reporting period or the plan for converting public reserve funds into share capital reviewed by the board of directors

Applicable □Not applicable

The company's profit distribution plan reviewed and approved by the board of directors this time is: based on 189,702,126, a cash dividend of 0.05 yuan (tax included) will be distributed to all shareholders for every 10 shares, 0 bonus shares (tax included) will be issued, and capital reserve funds will be transferred to all shareholders to increase 0 shares for every 10 shares. Preferred stock profit distribution plan for the reporting period approved by the board of directors

□Applicable Not applicable

2. Basic situation of the company

1. Company profile

Stock abbreviation Cyto Biotechnology Stock code 300583 Stock Exchange Shenzhen Stock Exchange

Contact person and contact information Secretary of the Board of Directors Name of securities affairs representative Li Lu Zeng Qingli, Guo Yiduo

Office address South section of Dongwaihuan Road, Dingtao District, Heze City, Shandong Province South section of Dongwaihuan Road, Dingtao District, Heze City, Shandong Province Fax 0530-2263536 0530-2263536

Phone 0530-2263536 0530-2263536

Email [email protected] [email protected]

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

2. Introduction to main business or products during the reporting period

(1) Main business and products

1. Main business

The company takes it as its mission to provide high-quality drugs and raw materials that are "leading in the country and in line with the world". It applies genetic engineering technology and synthetic biology technology to develop and produce steroid drug raw materials, and gradually develops into a leading supplier of steroid drug raw materials. In recent years, on the basis of ensuring its leading position in the subdivided industry, the company has gradually deployed high-end specialty APIs for respiratory products, animal health APIs, creams and nasal spray preparations, and initially realized the layout of the entire industrial chain of "intermediates-APIs-preparations".

2. Main products and uses

Through continuous R&D investment and business expansion, the company has now completed the layout of three major segments: steroid core intermediates and high-end intermediates, respiratory high-end specialty APIs and animal health APIs, and cream nasal spray preparations.

(1) In the field of intermediates, the field of core steroid intermediates covers five core raw materials: androstenedione (AD), androstenedione (ADD), 9-hydroxyandrostenedione (9OH-AD), 17α hydroxyprogesterone derivatives (A ring), bis-butol (BA) and corresponding series of products. It has the most comprehensive product line in the field of domestic steroid drug raw materials.

In order to meet the diverse needs of customers, the company has developed and produced more than ten high-end intermediates such as medroxyepoprogesterone (8DM), betamethasone epoxy hydrolyzate (DB11), tetraene (3TR), anectar acetate (H6), and Sijiuwu. High-end intermediates have become one of the company's pillar sectors. The above products are mainly used by downstream companies to develop glucocorticoids, sex hormones, progestins and anabolic hormone steroid drugs, which play an important role in the development, growth, metabolism and reproductive functions of the body.

(2) In the field of APIs, after several years of development and precipitation, the company has taken respiratory high-end specialty APIs as a breakthrough, and has completed technical reserves, quality certification, production capacity construction and other work for a number of APIs, and is actively developing markets and expanding sales channels. China has currently obtained production licenses for 14 APIs including fluticasone propionate, triamcinolone acetonide, budesonide, mometasone furoate, fluticasone furoate, and abiraterone acetate. Among them, fluticasone propionate and triamcinolone acetonide APIs have new sterile specifications. Seven APIs, including indacaterol maleate, mometasone furoate, and methylprednisolone, have obtained domestic registration approval documents, and five APIs, including mometasone furoate, dexamethasone, and dexamethasone sodium phosphate, have obtained European CEP certificates. The above-mentioned API products are ready for external sales. In addition, a number of APIs are currently undergoing critical work such as analytical method development, small-scale optimization, pilot scale-up, stability research, process verification and compilation of registration information as planned. Application and registration at home and abroad for a number of APIs have been launched simultaneously. In addition to external sales, the above-mentioned raw materials can also be used by the company to produce related pharmaceutical preparations, providing strong support for the company to continue to improve the industrial chain layout and expand business growth space.

The company leverages its core strengths and industry opportunities to build the animal health segment as an important supplement to the existing API segment, and gradually improves the production capacity utilization rate of animal health products based on market conditions. Currently, there are two products: neomycin sulfate and tilaverin tartrate. It plans to add new product lines of tylosin tartrate and tylosin phosphate to further enrich the product matrix of the animal health segment.

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

(3) In the field of preparations, the preparation sector is the extension of the company’s industrial chain after the company’s continuous expansion of steroid drug intermediates and raw materials. The company is promoting the construction of a preparation factory and has three preparation products: fluticasone propionate cream, mometasone furoate nasal spray, and budesonide nasal spray. They are all glucocorticoids in the field of steroid drugs. They have strong local anti-inflammatory, anti-allergic and immunosuppressive effects, and can reduce tissue inflammatory reactions and allergic symptoms.

(2) Main business model

1. Procurement model

The company has established a systematic and standardized supply chain management system to ensure stable and high-quality supply of raw materials, equipment and consumables required for R&D and production. For the core raw material phytosterols, the company implements a centralized procurement strategy to effectively control procurement costs while strictly ensuring quality. Other auxiliary materials, consumables and equipment will be purchased through price inquiry and price comparison on the premise of ensuring safety inventory. After years of accumulation, the company has established long-term and stable cooperative relationships with a group of suppliers with excellent qualifications and reliable reputation.

In order to ensure that the quality of raw materials meets high standards, the company has formulated strict supplier management, quality control and procurement process systems. The procurement department scientifically formulates and dynamically executes procurement plans based on the annual business plan, production needs, consumption quotas, market price fluctuations and inventory status. For some raw materials with high demand and frequent price fluctuations, the company continues to track market conditions, predict price trends, and implement flexible inventory control strategies accordingly to balance costs and supply security.

2. Production mode

The company's main business implements the production model of "determining production based on sales and dynamic adjustment". Based on the sales forecast and order status provided by the marketing center, the production department formulates annual and monthly production plans, combines them with real-time inventory, and flexibly adopts a model that combines order production and inventory production. This model not only ensures timely response to customer needs, but also achieves efficient connection between production and sales. During the production execution process, the company uses dynamic tracking and scheduling to ensure that the production rhythm matches market demand and ensures timely delivery of products.

The company always puts product quality first, and quality control runs through the entire production process. In daily production and process optimization, the quality management system is strictly implemented, and full-process monitoring and strict control of raw material storage, personnel operations, equipment maintenance, production processes, quality inspection, and product entry and exit are implemented to ensure the stability of product quality.

3. Sales model

The company's main business adopts the sales model of "direct sales as the main business and distribution as the supplement". Its customers are mainly large domestic and foreign pharmaceutical manufacturers and compliant traders. The marketing center regularly formulates product sales benchmark prices based on price fluctuations of major raw materials, market supply and demand, and competition patterns, and submits them to the operating management for approval. It then determines the final transaction price based on factors such as customer credit status, order size, settlement method, and account period.

In order to cope with the increasingly fierce market competition, the company continues to improve the marketing management system, strengthen strategic coordination and internal coordination, optimize the sales incentive mechanism and performance appraisal system, and has established a professional, efficient, structurally stable and responsive sales team to provide strong support for continued business expansion.

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

(3) Performance drivers

As a technology-driven enterprise relying on R&D and innovation, the company has steadily realized its industrial upgrading strategy through continuous investment in R&D.

During the reporting period, the company focused on the established medium- and long-term industrial upgrading strategy and under the guidance of the business philosophy of “stabilizing the market and building a strong foundation”, taking stabilizing the company to increase market share, stabilizing operating cash flow, and improving the company’s operating quality as its core tasks in 2025. During the reporting period, the company achieved operating income of 1,016.8698 million yuan, a year-on-year increase of 4.77%; net cash flow from operating activities was 158.5302 million yuan, remaining positive for two consecutive years. In the field of APIs, it has entered the "approval harvest period and market development period", and at the same time, animal health APIs will be used as a key supplement to the API sector. In the field of preparations, domestic preparation factories are being constructed in an orderly manner, focusing on the fields of anti-inflammatory and anti-allergic topical creams and nasal sprays. In addition, the company has adopted a number of specific measures to refine management, reduce costs, increase efficiency, and lean production. During the period, expenses continued to decrease compared with the same period last year, and the production costs of some products gradually decreased. The company continues to build a moat for product quality and cost advantages.

The company will continue to focus on the company's entire industry chain strategy of "intermediates-API-preparations" to enhance market competitiveness and lay a solid foundation for the company's steady and sustainable development and early turnaround of losses.

3. Main accounting data and financial indicators

(1) Main accounting data and financial indicators in the past three years

Whether the company needs to retroactively adjust or restate previous years’ accounting data

□Yes No

The end of the year is better than the previous year

End of 2025 End of 2024 End of 2023

Final increase or decrease

Total assets 2,955,639,557.23 3,025,806,782.53 -2.32% 3,240,242,403.84 shares of listed companies

1,762,180,008.02 1,839,121,540.57 -4.18% 2,012,156,809.24 Dong’s net assets

Increase this year compared with last year

2025 2024 2023

minus

Operating income 1,016,869,821.22 970,601,329.97 4.77% 1,279,783,092.49 Attributable to shares of listed companies

-73,147,490.03 -88,766,731.73 17.60% 45,603,990.98 Dong’s net profit

Attributable to listed company shares

Net profit after deducting non-recurring profits and losses -76,650,429.00 -103,361,225.34 25.84% 24,529,004.43

Cash generated from business activities

158,530,227.17 194,459,589.28 -18.48% -92,845,544.21 Net cash flow

Basic earnings per share (yuan/

-0.39 -0.47 17.02% 0.25 shares)

Diluted earnings per share (yuan/

-0.39 -0.47 17.02% 0.25 shares)

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

weighted average net assets

-4.06% -4.61% 0.55% 2.39% yield

(2) Main accounting data by quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter operating income 259,850,364.44 247,912,320.98 241,425,650.02 267,681,485.78 Attributable to shares of listed companies

-27,508,507.98 -25,178,629.37 -16,543,142.49 -3,917,210.19 Dong’s net profit

Attributable to listed company shares

Net profit after deducting non-recurring gains and losses -27,813,133.29 -25,668,501.78 -18,906,279.36 -4,262,514.57

Cash generated from business activities

-10,271,214.76 72,952,837.48 15,127,600.10 80,721,004.35 Net cash flow

Are there any significant differences between the above financial indicators or their totals and the relevant financial indicators disclosed by the company in quarterly reports and semi-annual reports?

□Yes No

4. Share capital and shareholders

(1) The number of common shareholders and preferred shareholders whose voting rights have been restored, and the shareholding status of the top 10 shareholders

Unit: annual report of shares holding special

reporting period

Report Disclosure Don’t Vote

End of reporting period voting date of annual report disclosure

One share of the day before

Voting at the end of the month before general rights restoration

13,375 At the end of the month 13,671 0 0 shareholders 0 preference shares with restored priority rights

Total number of common shares

Total number of shareholders Total number of shareholders

total shareholders (e.g.

total

number (yes)

Shareholding status of the top 10 shareholders (excluding shares lent through refinancing)

Shareholding ratio in pledged, marked or frozen situations Holding of sales restrictions

Name of shareholder Nature of shareholder Number of shares held Share certificate

Example number of shares Quantity

state

Shandong Runxin Investment Co., Ltd. Domestic non-state-owned law

22.82% 43,297,382.00 0.00 Not applicable 0.00 Division Person

Mi Chaojie Domestic natural person 20.62% 39,116,800.00 0.00 Not applicable 0.00

4,736,000. Mickey Domestic natural person 2.50% 4,736,000.00 3,552,000.00 Pledge

Mijia Domestic natural person 1.52% 2,880,000.00 0.00 Not applicable 0.00 Liu Bin Domestic natural person 0.99% 1,870,934.00 0.00 Not applicable 0.00 China Construction Bank Co., Ltd.

Co., Ltd. - Nuoanduo Strategy Others 0.53% 1,005,200.00 0.00 Not applicable 0.00 Hybrid securities investment fund

China Minsheng Banking Co., Ltd.

Co., Ltd. - Jinyuan Shun Anyuan

Others 0.45% 861,220.00 0.00 Not applicable 0.00 Flexible configuration of hybrid certificate

securities investment funds

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd. Zhao Eryong Domestic natural person 0.41% 771,800.00 0.00 Not applicable 0.00 Wei Huilin Domestic natural person 0.40% 752,480.00 0.00 Not applicable 0.000,000 Hunan Domestic natural person 0.36% 677,700.00 0.00 Not applicable 0.00

Mr. Mi Chaojie directly holds 83% of the equity of Shandong Runxin. He is the controlling shareholder of Shandong Runxin and the company's actual related relationship with the above-mentioned shareholders or

Controller: Mr. Mickey and Ms. Mijia are the son and daughter of Mr. Mi Chaojie respectively. In addition, the company does not act in concert

Know whether there are related relationships or concerted actions among other shareholders.

The situation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the refinancing business and lending shares

□Applicable Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed from the previous period due to refinancing lending/returning.

□Applicable Not applicable

Whether the company has differential voting rights arrangements

□Applicable Not applicable

(2) Total number of preferred shareholders of the company and shareholding status of the top 10 preferred shareholders

The company has no preference shareholders’ shareholdings during the reporting period.

(3) Disclose the property rights and control relationship between the company and the actual controller in the form of a block diagram

5. Bonds existing on the date of approval of the annual report

□Applicable Not applicable

3. Important matters

In 2025, as the policies and reforms of the pharmaceutical industry deepen, the field of steroidal drug intermediates will face the impact of various factors such as intensified market competition and structural adjustments to production capacity and inventory. The company's management has determined the business strategy of "increasing share, focusing on focus, accumulating potential energy, and stabilizing current flow".

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

Promote management upgrades, respond to market challenges, gather development potential, and lay a solid foundation for subsequent market breakthroughs. We strive to build the company into a mid- to long-term development strategy for a biotechnology enterprise that integrates “pharmaceutical intermediates, APIs and preparations”.

During the reporting period, the company’s main operations and management work were as follows:

(1) Consolidate market share, deepen cost reduction and increase efficiency, and lay a solid foundation for operations

During the reporting period, in the face of intensified market competition and short-term price declines for some products, the company adhered to the concept of customer first and relied on excellent product quality, stable supply capabilities and proactive market strategies to achieve simultaneous growth in product sales, customer number and operating income, further consolidating the company's leading position in market segments. At the same time, the company further promotes cost reduction, efficiency improvement and management system optimization. In terms of expense management, it implements fee reduction measures through full-process expense review, troubleshooting and regular review. In terms of production costs, through professional energy consumption management, energy consumption per unit product is reduced. In terms of capital management, we implement scientific cash flow control and strengthen the management of receivables, prepaid accounts and expenses to ensure the safety of cash flow and stable operations.

In addition, in order to adapt to the needs of market competition and industrial upgrading, the company has carried out strategic reforms in the marketing system and established the "Key Account Department" and the "API Development Department" to implement professional and refined operations. Among them, the Key Account Department consolidates cooperation with core customers and builds a solid business foundation, while the API Development Department focuses on the promotion of high value-added products and the development of new customers to promote breakthroughs in the sales revenue of the API segment.

(2) Promote the implementation of strategies, enrich the product matrix, and expand business areas

During the reporting period, the company closely focused on the upgrading strategy of the entire industry chain, continued to extend to downstream high value-added areas, and made significant progress. In China, we have obtained production licenses for two new sterile APIs, triamcinolone acetonide and fluticasone propionate, and obtained drug registration approval documents for mometasone furoate, methylprednisolone, and indacaterol maleate. International registration has been advanced simultaneously, and the company has successfully obtained CEP certificates for mometasone furoate, dexamethasone, and dexamethasone sodium phosphate issued by the European Medicines Agency. A number of other raw materials are in the application stage, providing support for domestic and foreign market development. In the field of animal health, the company has been developing for many years through its wholly-owned subsidiary Jinweiduo, and already has two veterinary API production qualifications and GMP certificates. Relying on market opportunities, the company will use the raised funds to build a new tylosin series production line. After the project is completed, it will form a synergy with the existing biological fermentation technology platform to enhance profitability and industry influence. In the field of preparations, the company focuses on areas with large market capacity and high technical thresholds such as anti-allergic creams and anti-inflammatory and anti-allergic nasal sprays. The civil engineering work of the "High-end Preparation Industrialization Project" has been basically completed, and the construction of production lines and supporting projects is being promoted. A competitive preparation pipeline has been initially built, laying the foundation for a closed loop of the entire industry chain.

(3) Strengthen R&D innovation, embrace technological changes, and build core barriers

The company has always regarded technological innovation as the core driving force for development. During the reporting period, it continued to maintain high-intensity R&D investment, with annual R&D expenses reaching RMB 41.5431 million. R&D work adheres to the dual track of "quality improvement + innovation". On the one hand, we carry out research on key impurities in products under development to improve the quality, purity and stability of products, while optimizing the production process of mature products, improving production technology, reducing production costs, and improving product yield and efficiency; on the other hand, we closely track market trends and customer needs, and increase the development of new products, new processes, and new technologies, aiming to

Summary of the 2025 Annual Report of Shandong Saito Biotechnology Co., Ltd.

Continuously enrich the product pipeline and consolidate long-term competitive advantages. During the reporting period, a number of patent applications were submitted, all of which have been accepted by the State Intellectual Property Office. At the same time, the company has set up a technology center to actively explore the application of AI and automation technology, sort out the status quo of informatization and AI needs, test the application potential of relevant models in document management, data analysis and other scenarios, promote the deep integration of AI with GMP management and production processes, and help industrial upgrading and the implementation of the entire industry chain strategy.

(4) Optimize the management system, stimulate organizational vitality, and improve operational efficiency

In order to match the company's development strategy and market competition needs, the company continues to optimize its internal management system. In addition to the reform of the marketing system, the company has comprehensively sorted out the management process, stimulated team vitality through organizational structure optimization, and improved market response speed and customer service depth. At the same time, it has strengthened the management awareness of all employees and implemented refined management throughout all aspects of production, research and development, sales, capital, etc., to promote the continuous improvement of operational efficiency and provide solid management guarantee for the implementation of various strategies.

(5) Adhere to the bottom line of safety and environmental protection, practice green development, and fulfill social responsibilities

Production safety and environmental protection are the company's insurmountable operating red lines. During the reporting period, in terms of safety, by fully implementing the safety production responsibility system for all employees, systematically revising and improving emergency rescue plans for various emergencies, and regularly organizing comprehensive comprehensive safety inspections and practical emergency drills, we achieved the goal of "zero occurrence" of major and major production safety accidents, creating a safe and stable environment for the smooth and orderly development of production and operation activities. In terms of environmental protection, the company has established and dynamically optimized the economic operation and production model, continued to promote green production and energy conservation, and promoted the normalization and upgrading of ecological environment management. The emission of "three wastes" has stably reached standards, and hazardous waste management has been compliant throughout the entire process. It has effectively fulfilled its corporate social responsibilities and laid a solid foundation for sustainable development.