/Hongri Pharmaceutical: Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Asset Evaluation Report

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Hongri Pharmaceutical: Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Asset Evaluation Report

Shenzhen Stock Exchange

2026/03/21

This asset valuation report is prepared in accordance with China’s Asset Valuation Standards

The entire equity value of the shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. involved in the proposed equity transfer

Asset appraisal report

Yinxin Pingbao Zi (2025) No. 010170 (Volume 1 of 1 in total)

Yinxin Assets Appraisal Co., Ltd.

November 12, 2025

2. Client: Tianjin Hongri Pharmaceutical Co., Ltd.

3. Other users of asset appraisal reports:

(1) Shareholders of the unit being evaluated;

(2) Other users of asset appraisal reports as stipulated by national laws and regulations;

4. Assessed unit: Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Evaluation purpose: The value of all the equity interests of the shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. involved in the proposed equity transfer.
Economic behavior: If shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. intend to transfer their equity, they need to evaluate the value of all shareholders’ equity of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. and provide value references.

7. Assessment object: The value of all shareholders’ equity of the assessed unit as of the assessment base date.

8. Valuation scope: All assets and liabilities owned by the assessed unit as of the valuation base date.

9. Value type: market value

10. Evaluation base date: October 31, 2025

11. Valuation methods: asset-based method, income method

Valuation conclusion: After valuation using the income method, on the valuation base date of October 31, 2025, the book value of the owner's equity of the assessed unit was 31.3203 million yuan. After valuation using the income method, the estimated value was 38.000 million yuan (in capital letters: RMB 38,000,000 yuan). The valuation added value was 6.6797 million yuan, with a value-added rate of 21.33%.

13. Validity period for use of evaluation conclusions

2 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

(i.e. valid from October 31, 2025 to October 30, 2026). When there are major changes in the status of the assets to be appraised and the external market after the valuation base date, causing the original appraisal conclusion to become invalid, the user of the asset appraisal report should re-entrust the appraisal.

14. Special Notes

As of the assessment base date, some of the self-produced inventory products of the assessed unit are expired. Some of the expired inventory products include polyacrylic resin II powder, polyacrylic resin III powder, coating powder, L30D ethyl acrylate copolymer aqueous dispersion, and methacrylic acid copolymer type C. The actual quantity for this evaluation is the effective quantity after deducting the expired quantity. This is brought to the attention of report users.
As of the assessment base date, the assessed unit has expired products that cannot be used. Some of the expired products include polyacrylic resin II powder and polyacrylic resin III powder. The actual quantity for this evaluation is the effective quantity after deducting the expired quantity. This is brought to the attention of report users.
Except for deferred income, this evaluation does not consider the impact of income tax expenses that may arise from the increase or decrease in the value of other items. Bring this to the attention of report users
The list of assets and liabilities involved in the appraisal object is declared and confirmed by the client and the appraised unit; this report is based on the authenticity, legality and completeness of the information provided by the appraised unit. The appraisal company has not independently reviewed the relevant evidence and materials such as economic behavior resolutions, business licenses, warrants, accounting vouchers, etc. provided by the appraised unit or the responsibilities involved, nor will it be responsible for the authenticity of the above information.
The operating conditions of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. are provided by the assessed unit. This assessment conclusion is based on the operating conditions and future operating forecasts provided by the assessed unit. If the operating conditions change, this assessment conclusion will become invalid.
The asset appraisal professionals have conducted on-site investigation of the appraisal object and the assets involved in the appraisal report; the asset appraisal professionals have paid necessary attention to the legal ownership status of the appraisal object and the assets involved, checked the legal ownership information of the appraisal object and the assets involved, truthfully disclosed the problems that have been discovered, and have requested the client and relevant parties to improve the property rights to meet the requirements for issuance of the appraisal report.
If there are defects in the enterprise that may affect the assessment of the value of all shareholders' equity, the appraisal agency and the appraiser will not bear relevant responsibilities unless the client or the appraised unit makes special instructions and the appraiser generally cannot learn about it based on professional experience.
This evaluation does not consider the impact of minority equity, controlling rights and liquidity factors on the evaluation conclusion.

The above content is excerpted from the text of the asset valuation report. If you want to know the details of this valuation business and correctly understand the valuation conclusion, you should read the text of the paper version of the asset valuation report. At the same time, users of the valuation report are reminded to pay attention to the valuation assumptions, restricted use conditions and special matters in the valuation report.

3 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. plan to transfer equity

Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. involved

Total shareholder equity value

Asset appraisal report

Yinxin Pingbao Zi (2025) No. 010170

Text

Tianjin Hongri Pharmaceutical Co., Ltd.:

Yinxin Asset Appraisal Co., Ltd. accepted your organization's entrustment and, in accordance with the provisions of laws, administrative regulations and asset appraisal standards, adhered to the principles of independence, objectivity and fairness, adopted the asset-based method and the income method, and followed the necessary evaluation procedures to evaluate the market value of all the equity values of the shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. involved in the proposed equity transfer on October 31, 2025. The asset assessment status is now reported as follows:

1. Overview of the client, the appraised unit and other users of the asset valuation report

(1) Client

Name of the client: Tianjin Hongri Pharmaceutical Co., Ltd. (referred to as: "Hongri Pharmaceutical")

Unified social credit code 9112000010409702XT Name Tianjin Hongri Pharmaceutical Co., Ltd. Type Co., Ltd. (listed) Legal representative Wu Wenyuan

Registered capital: RMB 3,004,154,837 Date of establishment: September 30, 2000

Residence: West of Quanfa Road, Wuqing Development Zone, Tianjin New Technology Industrial Park

The business period starts from September 30, 2000. The business period ends on September 29, 2050.

Production of small-volume injections, tablets, hard capsules, granules, raw materials, and extraction of traditional Chinese medicines; research, development, consulting, and services of bioengineering drugs, genetically engineered drugs, phytochemicals, and chemical drugs; general freight transportation; the following projects carry out production activities at No. 17, Yuanquan Road, Wuqing Development Zone, Tianjin New Technology Industrial Park: preprocessing of traditional Chinese medicines; raw materials; pharmaceutical business scope Use excipients; large-volume injections; small-volume injections; freeze-dried powder injections; wholesale and retail of chemical products (except dangerous goods and precursor drugs); import and export of goods and technology (unless otherwise stipulated by laws and administrative regulations). Information system operation and maintenance services, software development, and information technology consulting services. (The above scope involves drugs and operates with a drug production license) (Projects that require approval according to law can only carry out business activities after approval by relevant departments).

Note: The above information is extracted from the enterprise business license.

(2) Other users of asset valuation reports

Shareholders of the unit being evaluated;
Other users of asset valuation reports as stipulated by national laws and regulations.

4 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

(3) The assessed unit

Overview of the unit being evaluated

Name of the unit being evaluated: Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. (referred to as: "Lianyungang Wantai")

Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Unified Social Credit Code 913207036689852760 Name

Division

Type Limited liability company (natural person investment or holding) Legal representative Zhang Shaoguo

Registered capital 10.20 million yuan Date of establishment 2007-11-16

Residence: No. 7, Yanpu Road, Dapu Industrial Zone, Lianyungang Economic and Technological Development Zone

The business period is from 2007-11-16. The business period is no fixed period.

Production of pharmaceutical excipients (produced according to the production scope of legally approved pharmaceutical production licenses); development of new technologies and new varieties of pharmaceutical excipients; self-operated and agent import and export business of various commodities and technologies, except for commodities and technologies that are restricted by the state or prohibited from import and export. (Projects that require approval according to law can only be carried out with the approval of relevant departments) Licensed projects: Food additive business scope

Production of food additives (projects that require approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval results) General projects: sales of food additives (except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law)

Note: The above information is extracted from the enterprise business license.

Equity structure and historical evolution of the assessed unit

The assessed unit was established in 2007 with a registered capital of RMB 600,000 and is located in Lianyungang Economic and Technological Development Zone. Hou Yanping, Wang Ping, and Lianyungang Wantai Pharmaceutical Materials Co., Ltd. hold 30.00%, 30.00%, and 40.00% of the equity of the assessed unit respectively. The equity structure of the assessed unit at the time of establishment is as follows:

Investor name Subscribed capital (10,000 yuan) Subscription ratio (%) Paid-in capital (10,000 yuan) Paid-in ratio (%) Hou Yanyu 18.00 30.00 18.00 30.00Wang Ping 18.00 30.00 18.00 30.00 Lianyungang Wantai Pharmaceutical Materials Co., Ltd. 24.00 40.00 24.00 40.00

Total 60.00 100.00 60.00 100.00

In 2009, the assessed unit's equity was changed, and 30.00% of the shares of shareholder Hou Yanyu were transferred to shareholder Wang Ping. After the transfer, shareholder Wang Ping's shares were 60%, and 40% of the shares of shareholder Lianyungang Wantai Pharmaceutical Materials Co., Ltd. were transferred to Zhang Shaoguo. Since then, Wang Ping and Zhang Shaoguo have held 60.00% and 40.00% of the equity of the assessed unit respectively. The equity structure of the assessed unit after this equity change is as follows:

Name of investor Subscribed capital (10,000 yuan) Subscription ratio (%) Paid-in capital (10,000 yuan) Paid-in ratio (%) Wang Ping 36.00 60.00 36.00 60.00 Zhang Shaoguo 24.00 40.00 24.00 40.00

Total 60.00 100.00 60.00 100.00

In June 2014, the assessed unit increased its registered capital from the original 600,000 yuan to 3 million yuan. After this capital increase, shareholder Wang Ping holds 12.00% of the equity of the assessed unit; shareholder Zhang Shaoguo holds 68.00% of the equity of the assessed unit; shareholder Wang Jun holds 20.00% of the equity of the assessed unit.

5 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

The assessed unit held a shareholders' meeting in the company's office in July 2014 and agreed to merge Jiangsu Furui Building Materials Co., Ltd. All assets and liabilities of both parties before the merger were inherited by Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. After the merger, the assessed unit continues to exist, the registered capital is changed to 5 million yuan, and the equity structure is adjusted as follows: Zhang Shaoguo holds 60.00% of the shares, with a subscribed capital contribution of 3 million yuan; Wang Ping holds 25.00% of the shares, with a subscribed capital contribution of 1.25 million yuan; shareholder Wang Jun holds 15.00% of the shares, with a subscribed capital contribution of 750,000 yuan.

In December 2015, shareholder Wang Jun transferred all of his 15.00% equity in the assessed unit totaling 750,000 yuan to Wang Ping. Shareholder Zhang Shaoguo transferred his 11.00% stake in the assessed unit worth RMB 550,000 to Wang Ping. So far, Zhang Shaoguo holds 49.00% of the equity of the assessed unit, with a capital contribution of 2.45 million yuan; Wang Ping holds 51.00% of the equity of the assessed unit, with a capital contribution of 2.55 million yuan.

In February 2016, shareholder Wang Ping transferred her 36.00% stake in the assessed unit worth RMB 1.8 million to Zhang Shaoguo. At this point, Zhang Shaoguo holds 85.00% of the equity of the assessed unit, with a capital contribution of 4.25 million yuan; Wang Ping holds 15.00% of the equity of the assessed unit, with a capital contribution of 750,000 yuan.

In May 2016, the assessed unit increased its capital. In this capital increase, Tianjin Boguang Medical Biotechnology Development Co., Ltd., a new shareholder, added 20 million yuan in cash to the company, of which 5.2 million yuan was included in the company's registered capital, and the remaining 14.8 million yuan was included in the company's capital reserve. After the capital increase is completed, the company's registered capital will be 10.20 million yuan, of which shareholder Zhang Shaoguo contributed 4.25 million yuan, shareholder Wang Ping contributed 750,000 yuan, and new shareholder Tianjin Boguang Medical Biotechnology Development Co., Ltd. contributed 5.20 million yuan. As of the valuation base date, the equity structure of the assessed unit is as follows:

Investor name Subscribed capital (10,000 yuan) Subscription ratio (%) Paid-in capital (10,000 yuan) Paid-in ratio (%) Tianjin Boguang Medical Biotechnology Development Co., Ltd. 520.00 50.9804 520.00 50.9804 Zhang Shaoguo 425.00 41.6667 425.00 41.6667 Wang Ping 75.00 7.3529 75.00 7.3529

Total 1,020.00 100.00 1,020.00 100.00

Note: Tianjin Boguang Medical Biotechnology Development Co., Ltd. is a 100% holding subsidiary of the client.

Historical financial information of the assessed unit

The assets and liabilities of the assessed unit in the past three years and on the assessment base date are shown in the table below:

Amount unit: RMB

Item December 31, 2022 December 31, 2024 December 31, 2024 Total assets on October 31, 2025 46,043,254.92 47,723,298.03 50,078,810.45 38,432,677.99 Total liabilities 5,731,677.03 4,100,028.01 4,117,917.80 7,112,380.37 Total owners’ equity 40,311,577.89 43,623,270.02 45,960,892.65 31,320,297.62

The operating conditions of the assessed unit in the past three years and on the assessment base date are shown in the table below:

Amount unit: RMB

6 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Project 2022 2023 2024 January to October 2025

Total operating income 17,609,000.29 20,060,997.13 20,256,374.59 21,571,809.82
Operating costs 10,468,176.61 10,540,398.34 11,942,120.16 11,913,161.15 Taxes and surcharges 130,674.21 182,053.67 149,744.55 147,667.06 Sales expenses 2,423,063.84 3,374,620.71 3,513,779.63 2,867,002.74Administrative expenses 1,514,264.65 1,785,117.09 1,943,660.19 2,283,508.02R&D expenses 956,373.69 1,040,834.23 1,094,469.34 1,034,036.92

Financial expenses -94,074.41 -129,227.25 -115,280.95 -15,394.48 Plus: other income 711,829.95 304,565.00 552,763.48 741,635.97 Credit impairment loss -76,787.77 -43,731.14 102,944.18 29,356.62 Asset impairment loss - - - -321,311.45 Investment income - - - -

Asset disposal income - - - -

Operating profit 2,845,563.88 3,528,034.20 2,383,589.33 3,791,509.55 Plus: non-operating income - 24,506.82 21,151.48 22,258.65

Less: Non-operating expenses 5,955.73 112,386.59 - 364.78

Total profit 2,839,608.15 3,440,154.43 2,404,740.81 3,813,403.42

Less: Income tax 22,852.73 128,462.30 67,118.18 453,998.45

Net profit 2,816,755.42 3,311,692.13 2,337,622.63 3,359,404.97

The financial data in the above table for 2022-2024 and the valuation base date are respectively extracted from “XYZH/2023CDAA3B0031, XYZH/2024CDAA3B0034, and "Audit Report" No. XYZH/2025CDAA3B0025, XYZH/2025CDAA3B0252".

The assessed unit implements the Accounting Standards for Business Enterprises. The main tax types and tax rates are shown in the table below:

Tax type, tax calculation basis and tax rate

① The taxable income from the sale of goods is calculated as output tax at the tax rate of 13%; ② The taxable income from technical services is calculated as the output tax at the rate of 6% VAT, and the VAT is calculated and paid based on the difference after deducting the input tax allowed to be deducted in the current period. Urban maintenance and construction tax is calculated and paid at 7% of the actual turnover tax paid.

The corporate income tax rate paid this year is 5%.

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Relevant Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" (Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation of 2023), the policy of calculating taxable income at a reduced rate of 25% for small and low-profit enterprises and paying corporate income tax at a rate of 20% will continue to be implemented until December 31, 2027.

The assessed unit obtained a high-tech enterprise certificate numbered GR202432004667 on November 19, 2024, which is valid from November 19, 2024 to November 18, 2027. From 2024 to 2027, the corporate income tax will be paid at a reduced rate of 15% according to the high-tech income tax preferential policy. At the same time, the assessed unit is a qualified small and low-profit enterprise this year, so it pays corporate income tax according to the preferential tax policy for small and micro enterprises this year.

Overview of the operation and management status of the assessed unit

7 - Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Asset Evaluation Report

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. (hereinafter referred to as "Lianyungang Wantai") is a professional pharmaceutical excipient manufacturer focusing on the production, research and development and technical services of medicinal acrylic resin products. It was founded in 1983 and is a subsidiary holding company of the listed company Tianjin Hongri Pharmaceutical Co., Ltd. (stock code: 300026, hereinafter referred to as "Hongri Pharmaceutical"). Hongri Pharmaceutical is the holding company of Chengdu Xingcheng Investment Group Co., Ltd., a state-owned enterprise under the Chengdu State-owned Assets Supervision and Administration Commission.

Lianyungang Wantai is a national high-tech enterprise, a specialized and innovative small and medium-sized enterprise in Jiangsu Province, a technology-based small and medium-sized enterprise, a standing director unit of the China Pharmaceutical Excipients Development Alliance (CPEC), a director unit of the Jiangsu Pharmaceutical Excipients Association for Pharmaceutical Packaging, a director unit of the Pharmaceutical High-end Preparation and Green Pharmaceutical Innovation Alliance, and a member of the "Chinese Pharmacopoeia" (2020 Edition) Polyacrylic Resin II, etc. 3 standard drafting units, 7 standard drafting units including "Chinese Pharmacopoeia" (2025 edition) methacrylic acid-ethyl acrylate copolymer.

Lianyungang Wantai adheres to the concept of innovative development and has undertaken more than ten technological innovation fund projects and scientific and technological research projects for small and medium-sized enterprises in science and technology of the Ministry of Science and Technology, Jiangsu Provincial Department of Science and Technology and Lianyungang City, and won two Lianyungang City Science and Technology Progress Awards. Now it has 6 authorized invention patents and 23 utility model patents. The company has three major categories of products: new aqueous dispersion coating materials, gastric/enteric pharmaceutical film coating premix materials, sustained-release preparation coatings and matrix materials. 18 varieties have obtained national CDE platform registration numbers, among which the methacrylic acid-ethyl acrylate copolymer aqueous dispersion (referred to as L30D-55) has obtained the U.S. DMF registration number (040907). The company's products have won honors such as "Top Ten Pharmaceutical Excipient Brands" and "Jiangsu Province High-tech Products" in the national pharmaceutical industry.

Lianyungang Wantai has a modern production workshop that meets GMP standards, established a production management system, quality assurance system and after-sales service system, and has passed ISO9001 quality management system, ISO14001 environmental management system, ISO45001 occupational health and safety management system certification, and halal HALAL certification. The company's products have stable and reliable quality and enjoy a good reputation among users. The products are distributed in hundreds of pharmaceutical companies in 28 provinces, cities and districts across the country. They are also exported to South Korea, India, Bangladesh, Pakistan, Singapore, the United Arab Emirates and other countries and South America.

Qualifications of the unit being evaluated

(1) The assessed unit obtained the high-tech enterprise certificate numbered GR202432004667 on November 19, 2024, which is valid from November 19, 2024 to November 18, 2027.

(2) The assessed unit obtained a food production license on July 10, 2023. The certificate number is SC20332077100254, and the validity period is from July 10, 2023 to July 9, 2028.

(3) The assessed unit has obtained a quality management system certification certificate with the certificate number 02821Q11194R1S, which is valid from October 14, 2024 to October 26, 2027

(4) The assessed unit obtained the environmental management system certification certificate on November 11, 2024. The certificate number is M43124E30832R1S and is valid from November 11, 2024 to November 29, 2027;

8 - Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Asset Appraisal Report Yinxin Asset Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected] (5) The assessed unit obtained the occupational health and safety management system certification certificate on November 11, 2024. The certificate number is M43124S30953R1S and is valid from November 11, 2024 to November 29, 2027;

The relationship between the client and the assessed unit

The assessed unit is a secondary subsidiary of the client.

2. Evaluation purpose

When shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. intend to transfer their equity, they need to evaluate the value of all shareholders’ equity of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. and provide value references.

3. Assessment objects and assessment scope

The object of this asset assessment is the value of all shareholders’ equity of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. as of the assessment base date.

The scope of the assessment is all assets and liabilities owned by Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. as of the assessment base date.

Specifically:

Unit: RMB Carrying amount of current assets:

12,488,548.26 Carrying amount of non-current assets:

25,944,129.73 of which:

Book amount of fixed assets:

23,214,619.03 Book amount of intangible assets:

1,008,660.24 Carrying amount of long-term deferred expenses:

1,204,121.59 Carrying amount of construction in progress:

280,569.65 Carrying amount of deferred income tax assets:

115,573.02 Carrying amount of other non-current assets:

120,586.20Total book amount of assets:

38,432,677.99

Carrying amount of current liabilities:

5,746,314.91 Carrying amount of non-current liabilities:

1,366,065.46 of which:

Carrying amount of deferred income:

1,251,933.92

9 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Carrying amount of deferred income tax liabilities:

114,131.54

Total carrying amount of liabilities:

7,112,380.37

Carrying amount of owners’ equity:

31,320,297.62

The above assets and liabilities are extracted from the "Audit Report No. XYZH/2025CDAA3B0252" audited and issued by ShineWing Accounting Firm (Special General Partnership).

The book records of the main assets of the assessed unit are as follows:

Long-term deferred expenses

The assessed unit has long-term deferred expenses, including engineering renovation and office building decoration projects from January to October 2022 to 2025. The book value of long-term deferred expenses as of the evaluation base date is 1,204,121.59 yuan. The details are as follows: Amount unit: RMB

Survival

Order Original

Expense content Date of formation Benefit Book value number Amount incurred

Number of months

Office building and factory area renovation and repair 2022-10-31

1 410,598.27 24.00 164,239.32

Production workshop renovation 2022-10-31

2 265,579.43 24.00 106,231.80

Finished product warehouse renovation 2022-12-29

3 315,003.82 26.00 133,293.28

Air conditioning efficient system maintenance 2024-12-28

4 69,026.55 26.00 49,852.53

Production equipment maintenance and transformation 2025-02-28

5 102,576.21 28.00 79,781.49

Sewage, catchment tank and rainwater ditch renovation project 2025-07-31

6 63,540.54 57.00 60,345.25

Warehouse renovation and purification project 2025-09-29

7 221,000.92 59.00 217,317.57

Finished product warehouse renovation 2025-10-31

8 84,347.46 60.00 84,347.46

Sewage pool renovation 2025-10-31

9 29,962.46 60.00 29,962.46

Production workshop renovation 2025-10-31

10 278,750.43 60.00 278,750.43

Total 1,204,121.59

Intangible assets-land use rights

The intangible assets owned by the assessed unit are land use rights obtained in 2006, with a land area of 12,039.00 m2, located at No. 7, Yanpu Road, Lianyungang Development Zone, and the title certificate number is "Su (2020) Lianyungang City Real Estate Rights No. 0006685, Su (2017) Lianyungang City Real Estate Rights No. No. 0017613". As of the valuation base date, the original entry value of the intangible asset-land use right was RMB 1,644,556.00, and the book value was RMB 1,008,660.24. The details are as follows:

Amount unit: RMB Yuan order, land use, approved, original entry price

Warrant No. Land Location Obtained Date Nature of Use Rights Area Book Value No. Journey Years Value

Su (2020) Lianyungang City Real Estate Rights No.

1 No. 7, Yanpu Road, Lianyungang Development Zone 2006-07-01 Industrial land State-owned construction land use rights 50 years 12,039.00 1,644,556.00 1,008,660.24 2 real estate certificates including No. 0006685

Houses and buildings

10 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Amount unit: RMB

Building area

preface

House ownership certificate number Building name Structure Year and month of completion (㎡)/Quantity Original book value Net book value number

(item)

Production workshop purification purification

1 Unlicensed 2018/07 1.00 4,292,405.44 3,638,397.44 Project time

QC laboratory building purification purification

2 Unlicensed 2018/07 1.00 1,159,652.79 982,690.97 Project time

Factory rainwater ditch renovation

3 Unlicensed concrete 2019/12 1.00 504,517.08 447,802.66 construction project

Su 2020 Lianyungang City No New Workshop (Workshop and

4 Steel-mixed 2017/01 4,338.15 7,784,372.92 6,598,528.61 Chattel Rights No. 0006685 QC) Zhongsu

Su 2017 Lianyungang City is not

5 Office building Steel-concrete 2007/01 1,302.48 2,435,994.33 2,065,809.25

Chattel Rights No. 0017613

6 Unlicensed Auxiliary Project-Zhongsu Affiliated 2018/07 1.00 2,610,392.11 2,213,629.25

Total: 18,787,334.67 15,574,888.18

Projects under construction-civil works

The projects under construction owned by the assessed unit as of the valuation base date are civil construction projects, with a book value of RMB 280,569.65.

Amount unit: RMB

Serial number Project name Structure Area (㎡) Construction start date Estimated completion date Book value 1 Category A warehouse Steel-concrete 204.12 April 2025 December 2025 280,569.65

Total 280,569.65

Other major assets recorded in the books

Amount unit: RMB

Item Carrying amount (yuan) Quantity Distribution location Current situation and characteristics

Raw materials 775,135.67 40 items Excipient library Normally in use

Low-value consumables in stock 4,134.82 5 items Warehouse Normally in use

Packaging 33,674.22 16 items Inner packaging material or outer material warehouse Normally in use

Finished products 1,703,289.91 12 items Finished product warehouse Except for some expired products, others are normal

Product in progress 174,756.43 4 items Clean room or warehouse Except for some expired items, others are normal

Transportation equipment 15,160.87 2 items in the factory, in normal use

Including spray dryer atomizer, latex liquid automatic cleaning electronic equipment 1,030,275.92 153 items in factories and offices

Clean filters, computers, air conditioners, etc., and use them normally

Including twin-screw mixing extruder, air flow mixer, machinery and equipment 6,594,294.06 84 items in the factory, filtering, washing and drying three-in-one equipment, production workshop power distribution project, etc., in normal use

(1) Inventory

The inventories included in the assessment scope are raw materials, low-value consumables in storage, packaging, finished products, and work in progress. Raw materials are mainly stored in the auxiliary material warehouse, including methyl methacrylate, hydroxypropyl methylcellulose, dimethylaminoethyl methacrylate, etc., with a book value of 775,135.67 yuan; low-value consumables in the warehouse are stored in the warehouse, including work clothes, purified water long filter elements, etc., the book value is 775,135.67 yuan.

11 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

The face value is 4,134.82; the packaging is stored in the internal or external packaging material warehouse, including 25kg plastic barrels, high-pressure bags for coating powder, etc., with a book value of 33,674.22 yuan; the finished products are stored in the finished product warehouse, including polyacrylic resin latex liquid, polyacrylic resin II powder, coating powder, L30D ethyl acrylate copolymer aqueous dispersion, etc., with a book value of 1,703,289.91 yuan, some of which are expired, and others are in good condition; the current products are stored in clean rooms or warehouses, including polyacrylic resin II powder, polyacrylic resin III powder, etc., with a book value of 174,756.43 yuan, some of which are expired, and others are in good condition.

(2) Fixed assets

The fixed assets included in the assessment scope are transportation equipment, electronic equipment and machinery and equipment. Among them, there are 2 transportation equipment with an original book value of 229,654.34 yuan and a book value of 15,160.87 yuan. They are distributed in the factory area; there are 153 items of electronic equipment, including spray dryer atomizers, latex automatic cleaning filters, computers, air conditioners, etc., with the original book value of 2,442,038.66 yuan, with a book value of 1,030,275.92 yuan, distributed in the factory area and office space, and in normal use. The machinery and equipment include twin-screw mixing extruders, airflow mixers, filtering, washing and drying three-in-one equipment, production workshop power distribution projects, etc. The original book value is 10,921,564.33 yuan, and the book value is 6,594,294.06 yuan. Currently, the above equipment is in good condition and is in normal working condition.

Off-book intangible assets of the assessed unit - patent status:

As of the assessment base date, the assessed unit had a total of 32 off-book patents, 29 valid patents, 2 in the trial stage, 1 in the application stage, 6 invention patents among the valid patents, and 23 utility model patents.

Preface Law

Patent type Patent name Patent number Application date Authorization announcement date

No. Status

A kind of low permeability sustained-release coating material and its preparation

1 Invention 2016103315977 2016/5/18 2017/11/7 Effective preparation method

An aqueous enteric film coating premix and its

2 Invention 201610333327X 2016/5/18 2018/2/2 Effective preparation method

A thermal gas mass for oxygen measurement

3 Utility model 2020207706882 2020/5/11 2020/10/27 Valid

flow meter

4 Utility model A filter for polyacrylic resin production 2020202643641 2020/3/6 2020/11/3 Valid

A kind of glass lining used for polyacrylic acid resin polymerization

5 Utility model 202020301003X 2020/3/12 2020/11/3 Effective glass reaction tank

A water spray for polyacrylic resin production

6 Utility model 2020204518805 2020/3/31 2020/11/3 Effective injection vacuum unit

A fully automatic system for polyacrylic resin latex liquid

7 Utility model 2020204378778 2020/3/30 2020/11/3 Valid

Weighing filling machine

8 Utility model A vibrating screen for granulating polyacrylic acid resin 2020202646298 2020/3/6 2020/11/17 Valid 9 Utility model A cold granulator for polyacrylic resin production 2020203011865 2020/3/12 2020/12/8 Valid

A spray for polyacrylic resin production

10 Utility model 2020204515582 2020/3/31 2020/12/8 Effective mist dryer

A twin-screw extruder for polyacrylic resin production

11 Utility model 2020214135838 2020/7/16 2021/4/13 Effective material machine

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Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

12 Utility model Drying equipment for the production of medicinal excipients 2022217634678 2022/7/11 2022/10/8 Valid

A compound for processing based on polyacrylic acid resin

13 Utility model 202221840672X 2022/7/18 2023/5/9 Valid

Equipment

14 Utility model A discharge filter for polyacrylate resin 2022219491880 2022/7/27 2023/5/23 Valid

An ozone cleaning method for producing pharmaceutical excipients

15 Utility model 2022226442963 2022/10/9 2023/3/28 Effective device

A condensation method for the production of water-soluble pharmaceutical excipients

16 Utility model 2022227254919 2022/10/17 2023/5/9 Effective flow impurity removal device

A kind of methacrylic acid-methacrylic acid formic acid

17 Invention 2022112457968 2022/10/12 2023/9/12 Detection device and detection method for effective copolymers

A high-efficiency mixing device for processing medicinal raw materials and auxiliary materials

18 Utility model 202223069148X 2022/11/19 2023/3/28 Valid

set

19 Utility model A multi-stage filter press device for solid pharmaceutical excipients 2023218367236 2023/7/13 2024/2/9 Valid 20 Utility model A material preheating device for the production of pharmaceutical excipients 2023219073579 2023/7/20 2024/2/9 Valid

A kind of medicinal excipient is quickly and evenly distributed after high-temperature sterilization

21 Utility model 2023220289733 2023/7/31 2024/3/29 Valid

cooling equipment

22 Utility model A pharmaceutical excipient granulation equipment 2023221842381 2023/8/15 2024/3/29 Valid

A kind of emulsion for methacrylic acid copolymer processing

23 Invention 2024101480103 2024/2/2 Acceptance notice arrives Filter under review

A kind of resin granule used in the production of polyacrylic acid resin

24 Utility model 2024203410172 2024/2/23 2024/9/24 Effective particle collection device

A kind of raw material mixture for polyacrylic resin processing

25 Utility model 2024206454647 2024/4/1 2024/11/22 Valid

device

26 Utility model A preheating tank for the production of medicinal excipients 202420720381X 2024/4/9 2024/10/29 Valid

A kind of solid medicine chamber dryer auxiliary drying

37 Invention 2024113670895 2024/9/29 2024/11/29 Valid

structure

28 Inventions An anti-caking solid chemical storage tank 2024113766756 2024/9/30 2025/1/21 Valid 29 Inventions A treatment device for wastewater from pharmaceutical excipient production 2024114147414 2024/10/11 2024/12/6 Valid 30 Inventions Packaging equipment for the production of pharmaceutical excipients 2024115742718 2024/11/6 2025/1/21 Under review

A kind of polyacrylic acid resin production polymerization reaction equipment 2025.2.10 Acceptance Notice

31 Utility model 2024226105140 2024/10/29 Application notification arrived

2025.8.2 Payment, certificate

32 Utility Model A high-viscosity polyacrylate reactor 2024225733212 2024/10/24 Valid

The book has not arrived

Off-book intangible assets of the assessed unit - trademark situation:

Trademark Validity Sequence Trademark Name Trademark Sample (Please electronically submit the pattern of the registered trademark Trademark Notation Trademark Registration Trademark Application Trademark Registration

Expiration date (name (edition)) Book category number date date

day

1 Purple Orchid Category 5 280645 1986.07.21 1987.03.10 2027.03.09

13 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

2 wantai Category 5 6166877 2007.07.16 2011.02.21 2031.02.20

3 Graphics Category 5 8895878 2010.11.29 2011.12.14 2031.12.13

4 wangit Category 5 8895987 2010.11.29 2012.01.07 2032.01.06

5 wantai Category 1 68524400 2022.11.23 2023.06.14 2033.06.13

Except for the above-mentioned off-book intangible assets, the assessed unit has no other off-book assets.

The above-mentioned assets and liabilities included in the assessment scope are consistent with the scope determined when entrusting the assessment.

The assessed assets are all in normal use or under control, and there are no mortgage guarantees.

4. Value type

The value type of the assessment conclusion in this report is market value.

Market value refers to the estimated amount of the value of the appraisal object in a normal and fair transaction on the valuation base date when a willing buyer and a willing seller act rationally and without any coercion.

5. Evaluation base date

According to the asset valuation entrustment contract, the valuation base date for this valuation is October 31, 2025.

The reasons for selecting the above date as the assessment base date are:

(1) Negotiate with the client to determine the evaluation base date based on the purpose of the evaluation. The main consideration is to make the assessment base date as close as possible to the date when the assessment purpose is achieved, so that the assessment conclusion can more reasonably serve the assessment purpose.

(2) Selecting the month-end accounting settlement date as the assessment base date can more comprehensively reflect the overall situation of the assets and liabilities being assessed and facilitate asset inventory verification and other work.

The price standard used in this evaluation is the price standard effective on the evaluation base date.

6. Basis of evaluation

(1) Legal and regulatory basis

"Assets Appraisal Law of the People's Republic of China" (Promulgated by the Standing Committee of the 12th National People's Congress on July 2, 2016)

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Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Adopted at the 21st meeting of the Committee);

"Company Law of the People's Republic of China" (amended at the seventh meeting of the Standing Committee of the 14th National People's Congress on December 29, 2023);
"Enterprise Income Tax Law of the People's Republic of China" (revised at the seventh meeting of the Standing Committee of the Thirteenth National Congress on October 29, 2018);
"Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (adopted at the 197th Executive Meeting of the State Council on November 28, 2007, and revised on April 23, 2019);
"Interim Regulations of the People's Republic of China on Value-Added Tax" (revised by State Council Order No. 691 on November 19, 2017);
"Announcement on Matters Related to Deepening the Value-Added Tax Reform" (Announcement No. 39, 2019, of the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs);
"Civil Code of the People's Republic of China" (adopted at the third session of the 13th National People's Congress on May 28, 2020);
"Vehicle Purchase Tax Law of the People's Republic of China" (Order of the President of the People's Republic of China No. 19 on December 29, 2018);
"Patent Law of the People's Republic of China" (amended for the fourth time at the 22nd Session of the Standing Committee of the 13th National People's Congress on October 17, 2020);
"Implementing Rules for the Patent Law of the People's Republic of China" (State Council Order No. 569, 2010);
Other relevant laws, regulations and rules.

(2) Basis for evaluation criteria

"Basic Criteria for Asset Valuation" (Caizi [2017] No. 43)
"Professional Code of Ethics for Asset Appraisal" (China Appraisal Association [2017] No. 30)
"Asset Appraisal Practice Guidelines - Asset Appraisal Procedures" (China Appraisal Association [2018] No. 36)
"Asset Appraisal Practice Guidelines - Asset Appraisal Report" (China Appraisal Association [2018] No. 35)
"Asset Appraisal Practice Guidelines - Asset Appraisal Entrustment Contract" (China Appraisal Association [2017] No. 33)
"Asset Appraisal Practice Guidelines - Asset Appraisal Files" (China Appraisal Association [2018] No. 37)
"Asset Appraisal Practice Guidelines - Utilization of Expert Work and Related Reports" (China Appraisal Association [2017] No. 35)
"Asset Appraisal Practice Guidelines - Enterprise Value" (China Appraisal Association [2018] No. 38)
"Asset Appraisal Practice Guidelines - Real Estate" (China Appraisal Association [2017] No. 38)
"Asset Valuation Practice Guidelines - Intangible Assets" (China Appraisal Association [2017] No. 37)
"Asset Appraisal Practice Guidelines - Intellectual Property Rights" (China Appraisal Association [2023] No. 14)

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Yinxin Assets Appraisal Co., Ltd. Address: 9th Floor, Jiushi Business Building, 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

"Asset Appraisal Practice Guidelines - Machinery and Equipment" (China Appraisal Association [2017] No. 39)
"Asset Appraisal Practice Guidelines - Asset Appraisal Methods" (China Appraisal Association [2019] No. 35)
"Asset Valuation Expert Guide No. 12 - Calculation of Discount Rate in Evaluating Enterprise Value using Income Method" (China Appraisal Association [2020]

No. 38)

"Asset Valuation Standards Terminology 2020" (China Appraisal Association [2020] No. 31)
"Business Quality Control Guidelines for Asset Appraisal Agencies" (China Appraisal Association [2017] No. 46)
"Guiding Opinions on Asset Appraisal Value Types" (China Appraisal Association [2017] No. 47)
"Guiding Opinions on the Legal Ownership of Asset Appraisal Objects" (China Appraisal Association [2017] No. 48)

(3) Basis of property rights

Business license of the unit being evaluated;
The latest charter of the assessed unit;
Real estate title certificate;
Copy of vehicle driving license;
Copies of patent and trademark certificates;
Major equipment contracts and invoices;
Other relevant property rights certificates.

(4) Basis for pricing

"Commonly Used Data Manual for Asset Assessment" Beijing Science and Technology Press;
Audit Report No. "XYZH/2023CDAA3B0031, XYZH/2024CDAA3B0034, XYZH/2025CDAA3B0025, XYZH/2025CDAA3B0252" audited and issued by Nikkei ShineWing Certified Public Accountants (Special General Partnership) for the years 2022-2024 and the evaluation basis;
The deposit and loan interest rates on the assessment base date announced by the People's Bank of China;
The latest loan market quoted interest rate (LPR) authorized by the National Interbank Funding Center;
"Asset Assessment Profit Forecast Declaration Detailed Form" provided by the assessed unit;
Statistical data and technical standard data released by relevant national departments;
The latest version of the "Mechanical and Electrical Products Quotation Manual" of the Mechanical and Electrical Products Price Information Center of the Ministry of Machinery Industry;
Information collected by evaluators during on-site inspections and market survey and inquiry information;
Various contracts, accounting vouchers, account books and other accounting materials related to the acquisition and use of the assets of the assessed unit;

16 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Detailed valuation list of various assets and liabilities entrusted with valuation;
A list of entrusted assets completed after on-site inventory verification;
Various supporting materials related to the evaluation collected by the evaluators;
Flush iFind financial information platform information.

7. Evaluation method

To evaluate the value of all shareholders' equity, the applicability of the three basic methods of income method, market method, and asset-based method should be analyzed and selected according to the evaluation purpose, evaluation object, value type, data collection, etc., and the evaluation method should be selected. For those that are suitable for evaluation using different evaluation methods, asset evaluation professionals should use more than two evaluation methods for evaluation.

Asset-based method: It refers to an evaluation method that uses the balance sheet of the evaluated unit as the basis for evaluation, evaluates the value of various on-balance sheet and identifiable off-balance sheet assets and liabilities, and determines the value of the appraisal object.

Income method: refers to an appraisal method that capitalizes or discounts expected income to determine the value of the appraisal object. Specific methods commonly used in the income approach include the dividend discount method and the discounted cash flow method. The dividend discount method is a specific method for discounting expected dividends to determine the value of the appraisal object. It is usually suitable for the appraisal of the partial equity value of shareholders who lack control. The discounted cash flow method is a specific method that predicts the future cash flows and risks of an enterprise, and then selects a reasonable discount rate to convert the future cash flows into the present value to determine the value of the evaluation object. It is usually suitable for the evaluation of the value of all shareholders' equity or the value of part of the equity of shareholders with controlling rights.

The market method refers to an evaluation method that compares the evaluation object with comparable listed companies or comparable transaction cases to determine the value of the evaluation object. Two specific methods commonly used by the market method are the listed company comparison method and the transaction case comparison method.

(1) Selection of evaluation methods

Since the appraised unit has complete financial information and asset management information available, and has a wide range of sources of relevant data and information on asset acquisition costs, the asset-based method can be adopted for this assessment.

The income method quantifies the expected profitability of an enterprise's overall assets, emphasizing the overall expected profitability of the enterprise. According to the current operating status, business plan and development plan of the assessed unit, the business will have predictable sustainable operating capabilities and profitability in the future. Considering that the assessed unit has the foundation and conditions for continued operations, and its future earnings and risks can be predicted and quantified, the income method can be used for this assessment.

Since there are currently few cases of similar transactions in China, or although there are cases, it is difficult to collect relevant transaction background information, comparable factor information, etc., and the impact of comparable factors on corporate value is difficult to quantify; at the same time, it is also difficult to find comparable company information in the capital market that is similar to the assessed unit in terms of asset size and structure, business scope and profitability, so the market method is not applicable to this assessment.

17 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Through the above analysis, this evaluation was conducted using the asset-based method and the income method.

(2) Introduction to asset-based approach

The asset-based method in enterprise value evaluation refers to the evaluation idea for determining the value of the evaluation object based on a reasonable evaluation of the value of various assets and liabilities of the enterprise. The value of each asset should be determined by selecting appropriate specific assessment methods based on its specific circumstances. The main asset assessment methods are briefly described as follows:

Assessment of current assets

The current assets assessed this time include monetary funds, accounts receivable, receivable financing, notes receivable, prepaid accounts, inventory, and other receivables.

(1) Evaluation of monetary funds

The monetary funds owned by the assessed unit on the assessment base date are bank deposits. For this evaluation, we obtained the bank statement of the account, obtained and checked the bank balance reconciliation statement, and then sent a confirmation letter to the bank where the account was opened. As of the writing date of the evaluation report, a reply letter had been received, and the reply amount was consistent. For RMB deposit accounts, the balance of each bank's deposit ledger on the assessment base date is checked against the bank statement, and the assessed value is determined based on the verified book value; for the foreign currency deposit account, the assessed value is determined by multiplying the foreign currency amount by the central parity rate of the People's Bank of China on the assessment base date, provided that it is verified to be correct with the bank statement.

(2) Evaluation of accounts receivable and other receivables

The assessment of accounts receivable and other receivables uses correspondence confirmation or alternative audit procedures to confirm the authenticity of the book detail balances, analyze their recoverability, and determine the estimated value on this basis. The bad debt provision is evaluated as zero, and the expected bad debt losses that may occur are determined according to the principle of making bad debt provisions.

(3) Receivables financing and assessment of notes receivable

The receivables financing and bills receivable owned by the assessed unit on the valuation base date were all bank acceptance bills. The appraiser randomly checked the vouchers of the bills, checked the detailed accounts of the bills receivable, retrieved the bill attachments, and checked them item by item with the inventory list. Check whether the name of the drawer, name of the payee, amount, bill number, and maturity date on the bill match the book value; on the basis of verification, the non-interest-bearing bank acceptance bill and the unexpired bank acceptance bill will be evaluated based on the approved book value.

(4) Evaluation of prepaid accounts

For the evaluation of prepaid accounts, after verifying the account book records, checking the original vouchers, consulting the relevant contracts or agreements, and understanding the services and conditions received from the evaluation base date to the evaluation on-site operation date, combined with the ability to recover the corresponding assets or rights, the appraised value is determined based on the approved book value.

(5) Valuation of inventory

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Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

The inventories held by the appraised unit as of the valuation base date include raw materials, low-value consumables in storage, packaging, goods in stock, and work in progress.

Inventory inventory verification mainly adopts the method of random inspection. According to the details listed in the inventory inventory assessment detailed list, the priorities are distinguished and the key points are grasped.

First, the assessed unit is required to provide an inventory inventory list with subtotals and totals of classified and paged amounts, signed by the assessed unit's accounting supervisor, inventory accounting accountant, and warehouse physical custodian, on or near the base date of assessment, to understand the daily management system of the inventory to be assessed and its implementation and effectiveness. Randomly check whether the actual inventory quantity matches the accounting quantity to determine the existence, completeness and accuracy of accounting records.

The quality of the inventory is analyzed and determined by observing the physical appearance and storage environment, understanding its physical and chemical standards, storage time, validity period, shelf life, quality inspection data, questioning the technical personnel of the evaluated unit and the physical storage personnel of the warehouse, and sending it to technical monitoring if necessary. During the on-site inspection, we learned about the physical appearance and storage environment of the inventory, as well as its physical and chemical standards, storage time, validity period, shelf life, and quality inspection data. We also questioned the technical personnel of the evaluated unit and the physical storage personnel of the warehouse. We also conducted relevant inventory work on the inventory, obtained the inventory entry and exit list from the assessment base date to the inventory date, verified the purchase invoice, and randomly checked the relevant vouchers.

①Evaluation of raw materials

The raw materials owned by the assessed unit are the main materials used in production, can be used normally, have a fast turnover speed, are large in quantity, and have little change in market price. Therefore, the assessed book value is determined based on the verified book value in this assessment.

②Evaluation of low-value consumables in stock

The low-value consumables in the inventory are consistent with the actual accounts, and the inventory is well preserved and can be used normally. The appraiser obtains the cost unit price of the low-value consumables in the inventory through market research, and multiplies the verified quantity of the low-value consumables in the inventory by the unit purchase cost to determine its appraisal value.

③Evaluation of packaging

The packaging materials owned by the assessed unit are consistent with the accounting records, with large quantities and low unit prices. The inventory is well preserved and can be used normally, and the market prices have not changed much. The verified quantity of low-value consumables in the inventory is multiplied by the unit price of the purchase cost to determine its assessed value.

④Evaluation of inventory items

The inventory goods owned by the assessed unit are goods produced by the assessed unit itself and used for sale, rather than purchased inventory goods. When making an assessment, the appraiser collects the market prices of the same or similar finished products and commodities as those of the appraised unit on the basis of market surveys; understands the pricing policy of the enterprise's commodities, collects the sales price list of inventory commodities and recent sales invoices of finished products and commodities; the provision for inventory depreciation is based on the difference between the actual cost incurred and the recoverable amount in accordance with accounting policies

19 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Impairment provided. The appraiser reviewed the accrual method. In this appraisal, the full amount of depreciation losses was confirmed in accordance with the enterprise accrual principles, and the sales of finished products were analyzed to finally determine the appraised value.

Appraisal value of inventory goods = market sales unit price excluding tax × [1-sales expense rate-tax and surcharge rate-sales profit margin×income tax rate-sales profit margin×(1-income tax rate)×net profit deduction rate]×quantity

⑤Products in progress

The work-in-progress of the assessed unit is work-in-progress that has not yet reached the finished product standard. Except for products in progress that have expired and cannot be used, this evaluation determines the estimated value based on the verified book value, and fully recognizes the depreciation loss in accordance with the corporate accrual principles.

Evaluation of non-current assets

(1) Assessment of houses and buildings

The inventory of real estate generally uses the real estate title certificate as the main basis to determine the ownership of the house and land. During this appraisal and inventory process, we not only considered the provisions of national laws and regulations, but also based on the actual situation of the enterprise, comprehensively understood the enterprise's control of the house, verified the relevant warrants and ownership documents, and determined the ownership of the assets to be assessed realistically on the premise of excluding the existence of property rights disputes.

Based on the asset assessment detailed list provided by the assessed unit, the appraiser conducted an investigation and verification of the houses and buildings included in the assessment.

The conditions of the houses and buildings are as follows:

Amount unit: RMB

Building area

preface

House ownership certificate number Building name Structure Year and month of completion (㎡)/Quantity Original book value Net book value number

(item)

Production workshop purification Purification

1 Unlicensed 2018/07 1.00 4,292,405.44 3,638,397.44 Project time

QC laboratory building purification purification

2 Unlicensed 2018/07 1.00 1,159,652.79 982,690.97 Project time

Factory rainwater ditch renovation

3 Unlicensed concrete 2019/12 1.00 504,517.08 447,802.66 construction project

Su 2020 Lianyungang City No New Workshop (Workshop and

4 Steel-mixed 2017/01 4,338.15 7,784,372.92 6,598,528.61 Chattel Rights No. 0006685 QC) Zhongsu

Su 2017 Lianyungang City is not

5 Office building Steel-concrete 2007/01 1,302.48 2,435,994.33 2,065,809.25

Chattel Rights No. 0017613

6 Unlicensed Auxiliary Project-Zhongsu Affiliated 2018/07 1.00 2,610,392.11 2,213,629.25

Total: 18,787,334.67 15,574,888.18

The houses and buildings included in the assessment scope are mainly the real estate stated in the Su 2020 Lianyungang City Real Estate No. 0006685 and Su 2017 Lianyungang City Real Estate No. 0017613 real estate certificates, located at No. 7, Yanpu Road, Dapu Industrial Zone, Lianyungang City Development Zone, Jiangsu Province.

After on-site investigation, it was commissioned to assess that the building has sufficient bearing capacity, good main structure, complete water sanitation, lighting, and communications. The factory is currently in normal use. The rights holder is Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd.

20 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

①Selection of evaluation methods

According to the purpose of this appraisal and the type of appraisal value, combined with the characteristics of the regional real estate market, the corresponding appraisal method is selected: the nature of the land where the assessed houses and buildings are located is industrial. For this type of building, since there are fewer cases of similar and comparable buildings in the area, and the rent is also difficult to obtain, it is difficult to use the market method and the income method to evaluate. Therefore, in this appraisal, the houses and land use rights are evaluated separately. The houses and buildings are evaluated using the replacement cost method, and the land use rights are evaluated using the market method.

②Evaluation model

The replacement cost method of houses and buildings refers to the method of obtaining the re-purchase and construction price of the valuation object at the time of valuation.

The evaluation formula is as follows:

Appraisal value of houses and buildings = replacement unit price × construction area × newness rate

Determination of replacement unit price: Based on the unit cost after project verification, perform index correction to calculate the construction cost of the commissioned house. On this basis, professional fees, capital costs and other related expenses are calculated, and the total is added to determine the replacement unit price. The calculation formula is:

Replacement cost = construction project cost + preliminary and other expenses + capital cost + reasonable profit

Determination of building area: The building area is based on the assessment materials and house property ownership certificate provided by the assessed unit. Determination of the newness rate: The newness rate is determined by combining the newness rate with the age method and the actual measured newness rate.

(2) Assessment of fixed assets-equipment

Accompanied by the equipment management personnel of the assessed unit, the appraiser conducted an item-by-item inventory and verification of the original value composition, purchase year, quantity, model specifications, usage status, and various factors that increase or decrease the value of each piece of equipment based on the filled-in equipment fixed assets inventory appraisal form. They also went to the site to conduct on-site inspections of the operation, maintenance, and upkeep of the equipment.

After on-site inspection and investigation, it was found that the company's equipment management work is standardized, the equipment is well maintained, and the equipment in use is basically in normal operation. The inventory and verification of the company's equipment accounts are basically consistent.

According to the inventory assessment declaration form provided by the assessed unit, the assessor will conduct an on-site inspection at the location of the equipment with the cooperation of the company's personnel, verify the name and relevant parameters of the equipment, and understand and identify the use, maintenance, repair, modification and current technical status of the equipment through on-site observation, inquiry and information review. On this basis, the original appraisal value, newness rate and net appraisal value of this appraisal will be determined through inquiry.

The equipment evaluated this time uses the replacement cost method, and its calculation formula is as follows:

Appraisal value of equipment = full replacement price × newness rate

Determination of full price for equipment replacement:

The full replacement price is determined by adjusting the price index at the base date of valuation to determine the current market price, transportation, installation and commissioning fees, and

21 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Composed of other reasonable expenses, the full replacement price of machinery and equipment, except for self-made equipment, is the updated replacement price.

According to the "Interim Regulations of the People's Republic of China on Value-Added Tax" issued by the State Council of the People's Republic of China No. 538, enterprises in relevant industries will adopt a consumption-based VAT system instead of a production-based VAT system from January 1, 2009. Under the consumption-based VAT system, the value-added tax contained in fixed assets purchased by an enterprise will be deductible from the incremental value-added tax paid by the company's product sales. If it cannot be deducted in the current year, it can be carried forward to the next year. According to the provisions of the above documents, the calculation formula for the replacement value of domestic equipment is as follows:

Full replacement price (excluding tax) = current replacement price (excluding tax) + current replacement price (excluding tax) × (basic transportation and miscellaneous installation fee rate) + other reasonable expenses

The current replacement price is determined based on the valuation base date and time point by adjusting the price index to determine the current market price; it is obtained through comparative analysis by consulting the recent "Mechanical and Electrical Product Quotation Manual", "National Asset Appraisal Price Information", "China Mechanical and Electrical Equipment Appraisal Price Information", etc.

Determination of miscellaneous basic installation fees:

According to the "Commonly Used Data and Parameters Manual for Asset Assessment", the estimated budget indicators for equipment transportation and miscellaneous fees, equipment basic fees, and installation and commissioning fees are determined by equipment category.

Other reasonable expenses mainly refer to capital costs. For equipment with a long construction period and large value, the capital cost is calculated based on the construction period, payment method and current corresponding loan interest rate; for equipment with a short construction period and small value, the capital cost is generally not included.

For some parts whose actual useful life significantly exceeds the economic useful life, the market price method is directly used for evaluation.

Determination of the full replacement price of the vehicle:

The transportation equipment in the vehicle is evaluated using the replacement cost method, and the full replacement price is determined as an asset of the same equipment type.

Among the vehicles, office vehicles are evaluated using the market approach

The market method determines the price of the object being evaluated based on the current price of a reference object that is similar or comparable to the object being evaluated in the open market. If the reference object is not exactly the same as the object being evaluated, adjustments will need to be made based on the impact on the value of the difference between the object being evaluated and the reference object.

The prerequisites for using the market method are three basic conditions: open market conditions, market efficiency, and the evaluation object and the market reference object are similar or comparable.

The similar comparison method is an evaluation method that uses a market reference object that is similar to the evaluation object as the basis for evaluation, and determines the value of the evaluation object by comparing and adjusting the factor differences between the evaluation object and the market reference object. Its basic calculation formula is:

Vehicle net assessed value = reference selling price × weighted correction coefficient

Weighted correction coefficient = each correction coefficient of the transaction situation × corresponding transaction factor weight + mileage correction coefficient × relative

22 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

The driving mileage factor weight + the service life correction coefficient × the corresponding service life factor weight + the regional factor correction coefficient × the corresponding regional factor weight

Determination of newness rate:

① General equipment newness rate

The general equipment newness rate determines the comprehensive newness rate by analyzing the physical depreciation, functional depreciation and economic depreciation of each equipment asset.

Physical depreciation refers to the depreciation caused by the loss of physical form of equipment due to wear and tear during operation and exposure to erosion in the natural environment.

Functional depreciation refers to the depreciation of equipment value as a result of technological progress. It includes two aspects, namely functional depreciation caused by excess investment costs and functional depreciation caused by excess operating costs.

Economic depreciation means: after interviews, it is found that the estimated equipment can fully meet the design capabilities, then the economic depreciation is 0%. ②Transportation equipment

The newness rate of transportation equipment is determined using the service life method and the calculation formula is:

Newness rate = remaining useful life ÷ (used years + remaining useful life) × 100%

To determine the newness rate of key and key equipment, the theoretical newness rate of the age method and the newness rate of the technical measurement method are used, and the annual calculated newness rates of the age method and the technical measurement method are given different weights to finally determine the comprehensive newness rate of the equipment reasonably. The calculation formula is:

Comprehensive novelty rate = novelty rate based on years × 40% + technical novelty rate × 60%.

The remaining service life is determined comprehensively by professionals after analyzing factors such as equipment utilization, load, maintenance, original manufacturing quality, failure frequency, and environmental conditions.

Renewal rate = remaining useful years ÷ (used years + remaining useful years) × 100%

Comprehensive newness rate = technical newness rate × 60% + newness rate of driving kilometers × 40%.

(3) Evaluation of projects under construction

Projects under construction refer to unfinished projects such as new construction, reconstruction, expansion, improvement or technological transformation, equipment updating, major repairs, etc. of an enterprise's fixed assets, that is, projects that are under construction but have not yet been completed and put into use. The project in progress of the assessed unit on the assessment base date is a civil construction project in progress.

The evaluators obtain the project in progress (civil construction) evaluation declaration details, review whether the aggregation is correct, and check it with the general ledger and detailed ledger totals. We reviewed the original materials such as contracts and payment vouchers for major projects under construction, and verified the authenticity of the book amounts of projects under construction; we also understood the investment scale, investment period, construction method, start and expected completion time, and investment amount of each phase of the projects under construction. Understood relevant project approvals, internal decision-making procedures, procurement, construction, contract contracts, budget and final accounts,

23 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Settlement and payment records, and conduct on-site inspections of major projects under construction to understand the project's image progress and payment progress. Taking into account that the actual construction period of the estimated construction-in-progress - civil engineering project is short, after verifying the relevant information in this assessment, the estimated value will be confirmed based on the book value after review and verification.

(4) Intangible assets - evaluation of land use rights

As of the valuation base date, the land use rights owned by the assessed unit are as follows:

Amount unit: RMB

Accurate

Program Land Use Development Program

Land title certificate number Land location Acquisition date Nature Area (㎡) Original entry value Book value number Purpose Year

limited

Su (2020) Lianyungang

Lianyungang City

Municipal Real Estate No. 2006-07 Industrial Five Access and One

1 Development Zone Salt Transfer 50 12,039 1,644,556.00 1,008,660.24 No. 0006685 and other 2 -01 land flat

No. 7, Pu Road

Real estate title certificate

Total: 12,039 1,644,556.00 1,008,660.24

The assessment object is located at No. 7, Yanpu Road, Lianyungang Development Zone. After on-site investigation, it was found that all parcels subject to assessment have been developed and currently have five connections and one level.

According to the "Urban Land Valuation Regulations" (hereinafter referred to as the "Regulations"), the popular parcel valuation methods include market comparison method, income reduction method, residual method (assumed development method), cost approximation method, benchmark land price coefficient correction method, etc. The selection of valuation method should be in accordance with the technical "Procedures" of land valuation, based on the development of the local real estate market and combined with the specific characteristics of the valuation object and the purpose of the valuation, etc., and finally choose the market comparison method for valuation.

Technical route for evaluation methods:

The market comparison method is to select a number of comparative cases based on the substitution principle among the recent listing or transaction cases in areas similar to the area where the appraisal object is located, and make corrections for transaction conditions, transaction time, location status factors, physical condition factors, and equity status factors, thereby obtaining the price of the appraisal object.

Its basic formula is:

Appraisal value = Appraisal object price = Transaction instance price × Transaction situation correction coefficient × Transaction time correction coefficient × Location condition factor correction coefficient × Physical condition factor correction coefficient × Equity condition factor correction coefficient

(5) Intangible assets - evaluation of other intangible assets

① Evaluation of off-book intangible assets-patents

For the off-book assets - patents owned by the assessed unit on the valuation base date - the income contributed by the estimated intangible assets - patent assets in future years can be measured reliably and has a direct correspondence with the revenue from the production and sales of excipients, which improves the efficiency of the company in the production of excipients and meets the conditions for the income method to be used for evaluation, so the income method is adopted for this evaluation.

From the perspective of the present value of income, the value of an intangible asset should correspond to what the owner can achieve year by year in the future income period of the asset.

24 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

The discounted value of the expected benefits obtained.

A. Selection of evaluation model

Based on the information that can be collected in this evaluation, predict the possible future income that can be realized by using the intangible assets to be estimated to contribute to the production and sales revenue of excipients. The benefits that the appraisal object can bring to the enterprise are determined through a certain share rate (i.e., the share of the assets to be appraised in future earnings), and the appraisal value of the appraisal object on the valuation base date under a certain business scale is calculated through discounting. The calculation formula is:

Among them: P is the estimated value

r is the discount rate

Rt is the income in year t

K is the share rate

n is the economic life span

t is the time series, the tth year in the future

B Forecast of operating income and profit period

This revenue forecast is based on the actual technical factors and application business conditions of the assessed assets, the future development plan and business plan, advantages, disadvantages, risks, etc. of the assessed unit, and is based on the market environment it faces and future development prospects and potential.

The forecast of the income period of this evaluation comprehensively takes into account factors such as the legal protection period, the technology update cycle reflected in business improvement, future development trends of alternative technologies, the current research and development stage, and development trends. After interviews with the management of the assessed unit, and taking into account the legal life, potential protection period, market competition of technology products, effectiveness of technical confidentiality measures, status of alternative technologies, and technology-related contract agreements, corporate management and R&D personnel believe that the economic life cycle of patent renewal and replacement is about 3 to 5 years, and the estimated income period of intangible assets is from November to December 2025 to 2029.

C Determination of the share rate

The value range of the share rate is determined based on the range of technology royalty rates that have been recognized by many countries in international technology trade. With the development of the international technology market, the commission rate has tended to a standardized value. The United Nations Industrial Development Organization has conducted a large number of surveys and statistics on the commission rates of technology trade contracts in various countries. The results show that based on sales revenue, the value range of the commission rate is generally 0.5%-10%. This evaluation determines the share rate of the corresponding industry of the evaluated unit based on the data from the patent implementation licensing statistical table of national economic industries (categories) during the "Thirteenth Five-Year Plan".

25 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Since the factors that affect patent value include legal factors, technical factors, economic factors and risk factors, the impact of risk factors on patent value is mainly reflected in the discount rate, and the remaining three factors can be reflected in the share rate. Therefore, the factors that affect the patent value are subdivided into legal status, protection scope, technical field, advancement, innovation, maturity, application scope and other factors, and weights and scores are given respectively to determine the adjustment coefficient of the technology revenue sharing rate.

Therefore, the sharing rate of off-book patent value = the sharing rate of the corresponding industry of the evaluated unit × the adjustment coefficient D of the technology income sharing rate. Determination of the discount rate

The present value of earnings method determines important parameters for assessing value. The discount rate is the rate at which future earnings are restored or converted into their present value. The discount rate is essentially a rate of return on capital investment, which is essentially the same as the rate of return, profit rate, rate of return, profitability and interest rate. The desire of corporate investors is to obtain greater returns with less risk, but in a relatively complete market, obtaining higher investment returns means taking higher risks, that is, the rate of return is positively correlated with investment risk. The essence of the discount rate reveals the basic idea of determining the discount rate, that is, the discount rate should be equal to the return on capital with the same risk. This assessment uses the risk accumulation method to determine the discount rate.

The theoretical basis of the accumulation method is that when an investor is willing to invest in a certain risky asset, it will inevitably require compensation for the additional risks and additional burdens it bears. Therefore, the accumulation method is a method that uses the risk-free return rate plus the compensation rate for various risks and burdens as the discount rate.

The mathematical expression of the accumulation method is as follows:

Discount rate = risk-free return rate + risk return rate

The risk-free rate of return is the interest rate that does not take into account the risk-reward situation, and generally refers to the interest rate of government bonds.

Risk reward rate = technical risk reward rate + market risk reward rate + management risk reward rate + other risk reward rates

② Evaluation of off-book intangible assets-trademark

The registered trademark under evaluation belongs to the ordinary trademark stage. That is, when a trademark is not noticed by consumers, it is just an ordinary trademark without any asset characteristics. Moreover, the trademarks owned by the property rights holders on the valuation base date have little impact on profitability, so the valuation is conducted using the cost method.

Based on the purpose of evaluation, the object of evaluation, and the relevant information that can be collected during the evaluation process, the cost method is used to evaluate the trademark this time. Cost method evaluation is a method to confirm the value of a trademark based on the various costs required in the trademark formation process.

(6) Evaluation of long-term deferred expenses

The long-term deferred expenses were calculated based on the original book value and the remaining benefit period, the corresponding information was reviewed, contracts, invoices, accounting vouchers and other information were obtained, the authenticity and accuracy of the original amounts were verified, and the estimated value was determined based on the book value during the remaining benefit period.

26 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

(7) Assessment of deferred income tax assets

Deferred income tax assets are caused by deductible temporary differences arising from the assessment unit's provision for asset impairment. The appraiser obtains the detailed statement of deferred income tax assets, reviews whether the aggregation is correct, and checks whether it is consistent with the statement numbers, general ledger numbers and detailed ledger totals, and determines the appraised value based on the approved book value.

(8) Evaluation of other non-current assets

The appraiser checks the accounting vouchers and original vouchers of other current assets, analyzes the rationality of the content, amount, and year of occurrence of the economic business, and judges the accuracy of the accounting records, the existence and authenticity of the book amount. It will be confirmed based on the audited book value.

Assessment of liabilities

Liabilities are economic debts borne by an enterprise that can be measured in currency and need to be repaid with future assets or services.

The assessed value of liabilities is confirmed based on the liability items and amounts that the assessed unit actually needs to bear after the assessment purpose is realized.

(3) Introduction to the income method

Evaluate technical ideas

This time, the income method is used to evaluate all shareholders' equity of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. (hereinafter referred to as: Lianyungang Wantai), that is, based on the company's free cash flow in the next few years, using an appropriate discount rate to discount and add up to calculate the value of operating assets, and then add the value of surplus assets and non-operating assets, subtracting interest-bearing debt to obtain the value of all shareholders' equity.

Evaluation model

This assessment uses the corporate free cash flow model within the income approach.

(1) Calculation formula

Value of all shareholders’ equity = overall value of the enterprise – interest-bearing debt

The overall value of the enterprise = value of operating assets + surplus assets + value of non-operating assets - value of non-operating liabilities

Among them: the value of operating assets is determined according to the following formula: the present value of the enterprise's free cash flow = the present value of the free cash flow during the clear forecast period + the present value of the free cash flow after the clear forecast period

The clear forecast period refers to the time from the assessment base date to the time when the company reaches relatively stable operating conditions.

(2) Determination of forecast period

The assessed unit belongs to the pharmaceutical excipients industry. This assessment uses a segmented approach to predict the cash flow of the assessed unit. That is, the future cash flow of the enterprise is divided into the cash flow during the clear forecast period and the cash flow after the clear forecast period. According to the enterprise

27 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

E-mail: [email protected] Based on the industry's development plan and industry characteristics, in principle, it is predicted that the company's production and operation will be stable. Therefore, the forecast period is clearly from November to December 2025 to 2030, and the annual income status will remain unchanged at the 2030 level.

(3) Determination of income period

Based on the judgment of the characteristics of the business that Lianyungang Wantai engages in and the company's future development potential and prospects, considering that Lianyungang Wantai's operating conditions and manpower conditions over the years are relatively stable and can maintain long-term operations, the income period of this evaluation is determined on a sustainable basis.

(4) Determination of corporate free cash flow

This evaluation uses corporate free cash flow. The calculation formula of corporate free cash flow is as follows:

(Every year during the forecast period) Corporate free cash flow = net profit + depreciation and amortization + after-tax interest – capital expenditure – additional working capital

(5) Determination of final value

For the income period determined on a perpetual basis, the future value formula is:

Pn＝Rn＋1×Terminal value discount coefficient

Rn+1 is determined based on the annual cash flow adjustment at the end of the forecast period.

(6) Consideration of mid-year discount

Considering that free cash flow occurs throughout the year, rather than only at the end of the year, the timing of discounting free cash flow is considered as mid-year discounting.

(7) The discount rate is determined based on the principle that the income amount is consistent with the discount rate caliber. The income amount caliber for this evaluation is the enterprise's free cash flow, and the weighted average cost of capital (WACC) is selected as the discount rate.

Formula: WACC=Ke×E/(D+E)+Kd×D/(D+E)×(1-T)

In the formula: Ke: equity capital cost;

Kd: cost of debt capital;

T: income tax rate;

E/(D+E): Ratio of equity to total capital;

D/(D+E): debt to total capital ratio;

Among them: Ke＝Rf＋β×RPm＋Rc

Rf = risk-free rate of return;

β=enterprise risk coefficient;

RPm = market risk premium;

Rc = enterprise-specific risk adjustment coefficient.

28 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

(8) Determination of the value of surplus assets

Surplus assets refer to assets that exceed the company's production and operation needs on the valuation base date and are not involved in the company's free cash flow forecast after the valuation base date.

(9) Determination of the value of non-operating assets

Non-operating assets refer to assets and related liabilities that are not directly related to the company's operating income and are not included in the scope of income forecasts.

(10) Determination of the value of interest-bearing debt

Lianyungang Wantai has no interest-bearing debt.

8. Implementation process and situation of evaluation procedures

The company selects asset appraisers to form an appraisal project team. After preliminary preparations for the appraisal, they officially enter the enterprise, start the appraisal work, complete the on-site work, and issue the appraisal report. The specific process is as follows:

(1) Clarify the basic matters of evaluation business

When undertaking an appraisal business, the basic matters of the appraisal business, such as the client, the appraised unit, and other users of the asset appraisal report, the appraisal purpose, the appraisal object and scope, the value type, the appraisal base date, the appraisal assumptions and restrictions, and other relevant parties shall be clarified through communication with the client, information review, or preliminary investigation.

(2) Signing an asset appraisal entrustment contract

Based on the specific circumstances of the appraisal business, comprehensively analyze professional competence and independence, evaluate project risks, and after confirming to undertake the appraisal business, sign an asset appraisal entrustment contract with the client.

(3) Preparation of asset evaluation plan

According to the characteristics, scale and complexity of this appraisal project, prepare a reasonable asset appraisal plan, and timely modify and supplement the asset appraisal plan according to the specific circumstances during the execution of the asset appraisal business.

(4) On-site investigation

Conduct necessary inspections of the appraisal objects based on the specific circumstances of the appraisal business, guide the appraised unit to inventory assets, prepare appraisal data, verify assets and verification data, including checking the asset appraisal declaration form with the financial statements, general ledgers, and subsidiary accounts of the appraised unit, and verify relevant data, take necessary measures to ensure the reliability of data sources, conduct necessary on-site inspections of other physical assets, and understand the use and performance of assets.

(5) Determine the valuation method and collect asset valuation data

29 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Through investigation and understanding of the appraisal objects and assets within the appraisal scope, appropriate appraisal methods are determined, and market data and information related to asset appraisal are collected at the same time, and the required appraisal data are collected in a timely manner according to the progress of the appraisal project.

(6) Analysis of financial operating conditions and review of profit forecasts

Analyze the historical operating conditions of the evaluated unit, analyze the composition of revenue, costs and expenses and the reasons for their changes, analyze its business model, profitability and development trends, and analyze the comprehensive strength, management level, profitability, development ability, competitive advantages and other factors of the evaluated unit. Based on the financial plan and development plan of the assessed unit, combined with the analysis of the economic environment and market development conditions, review the profit forecast prepared by the enterprise.

(7) Assessment, estimation and internal review

Compile the materials provided by the assessed unit, the market data and information collected, and based on the analysis of the financial operating status of the assessed unit, appropriately apply the assessment method to form a preliminary assessment conclusion based on the basic principles and normative requirements of assessment, conduct a comprehensive analysis of information materials, parameter quantity, quality and rationality of selection to form an asset assessment conclusion, write an asset assessment report in accordance with the requirements of the assessment criteria, and the asset assessment agency conducts necessary internal review work.

(8) Issue an asset evaluation report

Conduct necessary communication with the client and parties involved in asset appraisal, listen to feedback from all parties on the asset appraisal conclusions, guide the client and other users of asset appraisal reports to reasonably understand and use the asset appraisal conclusions, issue an asset appraisal report and submit it to the client in an appropriate manner.

9. Evaluate assumptions

(1) Basic assumptions

Transaction hypothesis: Assuming that the appraisal object is in the transaction process, the appraiser conducts valuation based on the simulated market such as the transaction conditions of the appraisal object. The appraisal result is an estimate of the most likely transaction price of the appraisal object;
Open market assumption: It is assumed that the appraisal object and the assets involved are traded in the open market. In this market, buyers and sellers have equal status, and each has the opportunity and time to obtain sufficient market information. The transaction behavior of both buyers and sellers is conducted under voluntary, rational, and non-coercive conditions;
Assumption of continuing operation of the enterprise: It is assumed that after the economic behavior of the evaluation purpose is realized, it will continue to operate according to the original business purpose and business method.

(2) Macroeconomic environment assumptions

There are no major changes in the country’s current economic policies;

30 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

There are no major changes in bank credit interest rates and exchange rates;
There are no major changes in the socio-economic environment of the area where the assessed unit is located;
The development trend of the industry to which the assessed unit belongs is stable, and the current laws, regulations and economic policies related to the production and operation of the assessed unit remain stable;

(3) Assumption of the status of the valuation object on the valuation base date

Except for the scope of the appraiser’s knowledge, it is assumed that the acquisition, acquisition or development process of the appraisal object and the assets involved are in compliance with relevant national laws and regulations;
Except for the knowledge of the appraiser, it is assumed that the appraisal object and the assets involved have no rights defects, liabilities and restrictions that affect its value, and it is assumed that the price, taxes and various payables of the appraisal object and the assets involved have been paid in full;
Except to the extent known to the appraiser, it is assumed that the appraisal object and the tangible assets such as the equipment involved have no major technical failures that affect their continued use, there are no harmful substances in these assets that have an adverse impact on their value, and there are no hazardous substances and other harmful environmental conditions in the location of these assets that have an adverse impact on the value of these assets.

(4) Forecasting assumptions

General assumptions

(1) It is assumed that the enterprise involved in the assessment will continue to operate according to the original business purpose and business method after the economic behavior of the assessment purpose is realized, and its income can be predicted;

(2) There are no major changes in the supply and prices of inventory commodities purchased by the assessed unit; there are no unforeseen major changes in the prices of the assessed unit’s products;

(3) It is assumed that the enterprises involved in the evaluation will continue to operate according to the existing management level (or general market participants) on the evaluation base date, without considering the impact of the future management level of the owners of these enterprises on the future earnings of the enterprise;

(4) There will be no significant changes in the financial structure and capital scale of the assessed unit in the future operating period;

(5) There will be no major changes in interest rates, exchange rates, inflation rates, tax bases and tax rates, policy collection fees, etc.; (6) The risk-free return rate of funds will remain at the current level;

(7) The calculation of income is based on one year as an income forecast period, and so on, assuming that revenue and expenditure occur evenly throughout the year; the accounting policies that the company will adopt in the future are basically consistent with the accounting policies adopted when preparing this report in important aspects;

(8) There are no major changes in the current relevant national laws, regulations and policies, the national macroeconomic situation, there are no major changes in the political, economic and social environment of the region where the assessed unit is located, and there are no major adverse effects caused by other unpredictable and force majeure factors;

(9) Future earnings do not take into account the synergistic effects that may arise after the implementation of this economic action.

31 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

Special assumptions and main parameters

(1) It is assumed that the future reconstruction and expansion plan of the assessed unit can be carried out in an orderly manner as planned;

(2) It is assumed that the assessed unit’s planned new buildings and equipment projects in the future will be invested as scheduled;

(3) It is assumed that the evaluated unit can continue to obtain its business license, high-tech certificate, and various business licenses;

(4) It is assumed that there is no significant difference between the accounting policies used in the financial information provided by the assessed unit over the years and the accounting policies used in making income forecasts;

(5) During the foreseeable operating period, non-recurring profits and losses that may occur from the company's operations are not considered, including but not limited to the following items: profits and losses generated from the disposal of fixed assets, intangible assets, other long-term assets, and other non-operating income and expenses; (6) The impact of future capital increases by shareholders or other parties on the enterprise value of the assessed unit is not considered;

(7) It is assumed that after the valuation base date, the assessed unit will maintain the same business scope and methods as currently based on its existing management methods and management levels;

(8) Assume that the company's current business model can continue to be maintained in the future, and there will be no major changes in operating conditions after the assessment base date.

(9) Use income tax rate assumptions. The assessed unit has obtained a high-tech enterprise certificate on the assessment base date, and the applicable corporate income tax rate is 15%. This assessment assumes that the assessed unit can continue to obtain high-tech enterprise certification during the forecast period, and the applicable corporate income tax rate is 15%.

(10) Assumption of income tax rate for small and micro enterprises. According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Relevant Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" (Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation of 2023), the policy of calculating taxable income at a reduced rate of 25% for small and low-profit enterprises and paying corporate income tax at a rate of 20% will continue to be implemented until December 31, 2027. This assessment predicts the predicted income tax rate from 2025 to 2027. 5%, and the forecast income tax rate from 2028 to perpetuity is 15%.

(11) On March 26, 2023, the announcement on further improving the pre-tax super deduction policy for R&D expenses (Announcement No. 7 of the Ministry of Finance and the State Administration of Taxation of 2023) clarified that the R&D expenses actually incurred by manufacturing enterprises in carrying out R&D activities and that do not form intangible assets will be included in the current profits and losses. On the basis of actual deductions in accordance with regulations, starting from January 1, 2023, the actual amount incurred will be 100% plus deduction before tax; if intangible assets are formed, 200% of the cost of the intangible assets will be amortized before tax starting from January 1, 2023. This evaluation assumes that the super deduction of R&D expenses within the limited period is predicted according to the above policy, and that the original super deduction policy is predicted during the perpetual period.

According to the requirements for using the income method to evaluate the enterprise, the evaluators determine that the assumptions provided by the management are established on the evaluation base date, and draw corresponding evaluation conclusions based on these assumptions. If the economic environment changes significantly in the future or other

32 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

When it assumes that the conditions are not met, the evaluator will not bear the responsibility for deriving different evaluation results due to changes in the assumed conditions.

(5) Restrictive assumptions

This appraisal report assumes that the legal documents, technical information, operating information and other appraisal-related information provided by the appraised unit are true and credible. We are also not responsible for any legal matters related to the property rights of the assets involved in the appraisal;
Unless otherwise stated, this valuation report assumes that the on-site inspection results of the tangible assets within the valuation scope through the visible physical appearance are basically consistent with their actual economic service life. This assessment did not conduct special technical testing on the technical data, technical status, structure, attachments, etc. of these assets.

10. Evaluation Conclusion

(1) Assessment conclusions of asset-based approach and income approach

Assessment conclusion using asset-based method

Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. has a book value of total assets of RMB 38.4327 million on October 31, 2025, the base date of evaluation, a book value of total liabilities of RMB 7.1124 million, and a book value of owners' equity of RMB 31.3203 million. After applying the asset-based method, the total asset value is 42.4375 million yuan, the total liability value is 6.0469 million yuan, the value of all shareholders' equity is 36.3906 million yuan, the appreciation of all shareholders' equity is 5.0703 million yuan, and the appreciation rate is 16.19%.

For detailed evaluation results of the asset-based method, please refer to the following summary table of evaluation results:

Summary table of asset-based approach valuation results

Evaluation base date: October 31, 2025

Amount unit: RMB 10,000 project Book value Appraisal value Increase or decrease Value-added rate %

A B D=B-A E=D/A×100Current assets 1,248.85 1,325.27 76.42 6.12Non-current assets 2,594.41 2,918.48 324.07 12.49

Among them:

Fixed assets 2,321.46 2,425.01 103.55 4.46 Intangible assets 100.87 321.38 220.51 218.61 Construction in progress 28.06 28.06 - - Long-term prepaid expenses 120.41 120.41 - - Deferred income tax assets 11.56 11.56 - -Other non-current assets 12.06 12.06 - -

Total assets 3,843.27 4,243.75 400.48 10.42

Current liabilities 574.63 574.63 - -Non-current liabilities 136.61 30.06 -106.55 -78.00

33 - Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Asset Valuation Report

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Total liabilities 711.24 604.69 -106.55 -14.98

Net assets (owners' equity) 3,132.03 3,639.06 507.03 16.19 Note: Unless otherwise specified, all values in this valuation report are rounded to 2 decimal places. If there is a discrepancy between the total and the sum of the sub-items, it is due to rounding.

Please see the asset valuation schedule for details of the valuation conclusion.

Analysis of reasons for value increase and decrease in assessment

(1) The book value of current assets is RMB 12.4885 million, the appraised value is RMB 13.2527 million, the appraised value added is RMB 764,200, and the value added rate is 6.12%. The valuation increase of current assets is due to the fact that the transaction price of inventory goods after deducting sales expenses, taxes and other expenses is higher than the book value.

(2) The book value of fixed assets is 23.2146 million yuan, the appraised value is 24.2501 million yuan, the appraised value added is 1.0355 million yuan, and the value added rate is 4.46%. The main reason for the increase in value in this appraisal is that the depreciation life of the first series of equipment fixed assets is shorter than the economic durability, which leads to faster depreciation of the book value, thus causing the increase in value in this appraisal. The second series of houses and buildings are evaluated using the cost method.

(3) The book value of intangible assets is 1.0087 million yuan, the assessed value is 3.2138 million yuan, the assessed value added is 2.2051 million yuan, and the value-added rate 218.61%, mainly because the first reason is that the intangible assets - land use rights are assessed by the market; the second reason is that the off-book intangible assets - patents owned by the assessed unit can contribute to the increase in the production and sales revenue of the assessed unit, so the off-book intangible assets - patents have a certain value, thus resulting in an increase in the value of this assessment; the third reason is that the off-book intangible assets - trademarks are assessed using the cost method.

(4) The book value of non-current liabilities is 1.3661 million yuan, the assessed value is 300,600 yuan, the assessed impairment is 1.0655 million yuan, and the impairment rate 78.00%, mainly because: the deferred income in non-current liabilities is the relocation subsidy given by the Haizhou District People's Government to the assessed unit, and the obligations related to the recognition of deferred income have been fulfilled, and the amount does not need to be paid later, so this part of the deferred income is assessed as zero; in addition, the deferred income generated by the advanced manufacturing super deduction is also assessed as zero; because the Haizhou District People's Government provides the relocation subsidy to the assessed unit, the corresponding income tax has not been fully paid, so this assessment determines the corresponding deferred income tax liability.

Income method evaluation conclusion

On October 31, 2025, the valuation base date, the assessed value after using the income method was 38.000 million yuan (in capital letters: RMB 38.8 million yuan). Compared with the book value of the owners' equity of the assessed unit on the valuation base date of 31.3203 million yuan, the valuation added value was 6.6797 million yuan, with a value-added rate of 21.33%.

(2) Selection of evaluation conclusions

The value of all shareholders' equity after evaluation using the income method is 38.00 million yuan, and the value of all shareholders' equity after evaluation using the asset-based method is 36.3906 million yuan. There is a difference of 1.6094 million yuan between the two, and the difference rate based on the asset-based method is 4.42%.

34 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

The main reasons for the difference in valuation results between the two methods are: (1) The two valuation methods consider different perspectives. The asset-based method considers the re-acquisition of assets and reflects the replacement value of the company's existing assets. The income method considers the future profitability of the enterprise and reflects the comprehensive profitability of the various assets of the enterprise. (2) The income method is the result of discounting the future net cash flow of the assessed unit, reflecting the discounted sum of the income that the enterprise can obtain under the premise of valuation assumptions; while the asset-based method is the accumulation of the values of the identifiable assets of the assessed unit on the valuation base date, excluding the value of possible and unspecifiable intangible assets. The assessed unit has good current and future development and profitability. The income method valuation calculated based on future discounted net cash flow can better reflect the value of the enterprise. Therefore, the evaluation results of the income method are selected as the final valuation conclusion this time.

Based on the above analysis, the valuation conclusion of this valuation report adopts the income method valuation results. The valuation result of all shareholders’ equity of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. is 38.000 million yuan (in capital letters: RMB 38.8 million yuan). Compared with the book value of the owners’ equity of 31.3203 million yuan on the valuation base date of the assessed unit, the estimated value added is 6.6797 million yuan, with a value-added rate of 21.33%.

Conditions for establishing the assessment conclusion:

This assessment conclusion is drawn based on the principles, basis, assumptions, methods, and procedures described in the assessment report, and is only valid if the above principles, basis, and assumptions exist;
This evaluation conclusion only serves the purpose of this evaluation;
This assessment conclusion does not take into account major changes in national macroeconomic policies and the impact of natural forces and other force majeure;
This valuation conclusion does not consider the impact of special transaction methods on the valuation conclusion;
The evaluation conclusion of this report is issued by this evaluation agency and is affected by the professional level and ability of the evaluators of this agency.

(3) Special matters in the evaluation conclusion

As of the assessment base date, some of the self-produced inventory products of the assessed unit are expired. Some of the expired inventory products include polyacrylic resin II powder, polyacrylic resin III powder, coating powder, L30D ethyl acrylate copolymer aqueous dispersion, and methacrylic acid copolymer type C. The actual quantity for this evaluation is the effective quantity after deducting the expired quantity. This is brought to the attention of report users.
As of the assessment base date, the assessed unit has expired products that cannot be used. Some of the expired products include polyacrylic resin II powder and polyacrylic resin III powder. The actual quantity for this evaluation is the effective quantity after deducting the expired quantity. This is brought to the attention of report users.
Except for deferred income, this evaluation does not consider the impact of income tax expenses that may arise from the increase or decrease in the value of other items. Bring this to the attention of report users

35 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

The list of assets and liabilities involved in the appraisal object is declared and confirmed by the client and the appraised unit; this report is based on the authenticity, legality and completeness of the information provided by the appraised unit. The appraisal company has not independently reviewed the relevant evidence and materials such as economic behavior resolutions, business licenses, warrants, accounting vouchers, etc. provided by the appraised unit or the responsibilities involved, nor will it be responsible for the authenticity of the above information.
The operating conditions of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd. are provided by the assessed unit. This assessment conclusion is based on the operating conditions and future operating forecasts provided by the assessed unit. If the operating conditions change, this assessment conclusion will become invalid.
The asset appraisal professionals have conducted on-site investigation of the appraisal object and the assets involved in the appraisal report; the asset appraisal professionals have paid necessary attention to the legal ownership status of the appraisal object and the assets involved, checked the legal ownership information of the appraisal object and the assets involved, truthfully disclosed the problems that have been discovered, and have requested the client and relevant parties to improve the property rights to meet the requirements for issuance of the appraisal report.
If there are defects in the enterprise that may affect the assessment of the value of all shareholders' equity, the appraisal agency and the appraiser will not bear relevant responsibilities unless the client or the appraised unit makes special instructions and the appraiser generally cannot learn about it based on professional experience.
This evaluation does not consider the impact of minority equity, controlling rights and liquidity factors on the evaluation conclusion.

The appraiser who signed this report reminds users of the report that when using this report, they should pay attention to the above special matters and the possible impact of subsequent major events on the evaluation conclusion and this economic behavior; if there is a discrepancy between the paper version and the electronic version of the report, the paper version shall prevail.

11. Restrictions on the use of evaluation reports

(1) Instructions for use of evaluation report

This asset appraisal report can only be used by the user of the asset appraisal report within the appraisal purpose and validity period stated in the asset appraisal report.
If the client or other user of the asset appraisal report fails to use the asset appraisal report in accordance with the laws, administrative regulations and the scope of use stated in the asset appraisal report, the asset appraisal agency and its asset appraiser shall not be held responsible.
This report is a professional opinion on value. Although we have disclosed the ownership and financial status of the relevant assets within the scope of the assessment, the appraiser does not have the ability to express opinions on such legal and financial matters, nor does he have the corresponding qualifications. Therefore, if the user of the asset appraisal report believes that these legal and financial matters are important to achieve economic behavior, he should hire professionals such as lawyers or accountants to provide corresponding services.

(2) Restrictions

36 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.

Yinxin Assets Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116

Email: [email protected]

Except for the client, other asset appraisal report users agreed in the asset appraisal entrustment contract, and asset appraisal report users specified in laws and administrative regulations, no other institution or individual can become the user of the asset appraisal report.
Unless otherwise stipulated by laws, regulations and relevant parties, the contents of the assessment report shall not be excerpted, quoted or disclosed to the public media without the consent of the Company.
Users of asset valuation reports should correctly understand and use the valuation conclusions. The valuation conclusions are not equivalent to the realizable price of the valuation object, and the valuation conclusions should not be considered as a guarantee of the realizable price of the valuation object.

(3) Validity period of evaluation conclusion

This evaluation conclusion is only valid for the economic behavior of the shareholders of Lianyungang Wantai Pharmaceutical Excipient Technology Co., Ltd.’s proposed equity transfer, and is only established on the evaluation base date stated in the asset evaluation report. The validity period of the asset valuation conclusion is valid within one year from the valuation base date (i.e., October 31, 2025 to October 30, 2026). When there are major changes in the status of the assets to be appraised and the external market after the valuation base date, causing the original appraisal conclusion to become invalid, the user of the asset appraisal report should re-entrust the appraisal.

37 - Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd. Asset Appraisal Report Yinxin Asset Appraisal Co., Ltd.

Address: 9th Floor, Jiushi Business Building, No. 99 Hankou Road, Shanghai Tel: 021-63391088 Fax: 021-63391116 Email: [email protected]

12. Asset Assessment Report Date

The date of this asset evaluation report is November 12, 2025.

13. Signature of asset appraisal professional and seal of asset appraisal agency

Yinxin Asset Appraisal Co., Ltd. Asset Appraiser: Gu Xiaojing

Asset Appraiser: She Min

November 12, 2025

38 - Asset Valuation Report of Lianyungang Wantai Pharmaceutical Excipients Technology Co., Ltd.