Hualan Vaccine: Special report on the storage and use of raised funds in the first half of 2026

Securities code: 301207 Securities abbreviation: Hualan Vaccine Announcement number: 2026-029

Hualan Biological Vaccine Co., Ltd.

Special report on the storage and use of raised funds in the first half of 2026

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete, and there are no false records, misleading statements or major omissions.

1. Basic situation of raised funds

According to the China Securities Regulatory Commission's "Reply on the Approval of the Registration for the Initial Public Offering of Hualan Biological Vaccines Co., Ltd." (CSRC Permit [2022] No. 2), Hualan Biological Vaccines Co., Ltd. (hereinafter referred to as the "Company") was approved to publicly issue 40.01 million RMB ordinary shares (A shares) to the public, with a par value of RMB 1 per share and an issue price of RMB 56.88. Yuan/share, the total amount of funds raised was RMB 2,275,768,800. After deducting various issuance expenses of RMB 31,565,700 (tax included), the actual net amount of funds raised was RMB 2,244,203,100. The above raised funds were transferred to the company's designated account on February 14, 2022. Dahua Accounting Firm (Special General Partnership) has verified the availability of funds for the company's initial public offering of stocks on February 14, 2022, and issued a "Capital Verification Report" (Dahua Yanzi [2022] No. 000066).

As of June 30, 2026, the company has used 1,345,021,800 yuan of raised funds, of which 1,334,456,100 yuan has been directly invested in committed investment projects with raised funds, and 10,565,700 yuan has been paid for stock issuance-related expenses. The unused balance of raised funds (including the net amount of interest income and financial management income minus bank fees, etc.) is 1,032.4927 million yuan, of which the unexpired balance of financial products purchased using idle raised funds for cash management is 908.0000 million yuan, and the remaining funds are deposited in a special account for raised funds.

2. Storage and management of raised funds

In order to standardize the management and use of the company's raised funds, improve the efficiency of the use of raised funds, and protect the interests of investors, the company has established a special account for raised funds in accordance with relevant laws and regulations such as the "Supervisory Rules for Funds Raised by Listed Companies", "Shenzhen Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies", "Shenzhen Stock Exchange GEM Stock Listing Rules" and the company's "Raised Funds Management System". accounts, and signed the "Tripartite Supervision Agreement on Raised Funds" with the Zhengzhou Branch of China Minsheng Banking Corporation, Zhengzhou Branch of China Merchants Bank Co., Ltd., Xinxiang Branch of Bank of China Co., Ltd., Xinxiang New District Branch of Industrial and Commercial Bank of China Co., Ltd., Zhengzhou Branch of China CITIC Bank Co., Ltd. and the sponsoring institution Huatai United Securities Co., Ltd., respectively, to conduct special account management of the storage and use of raised funds. As of June 30, 2026, the storage status of raised funds is as follows:

Bank account number Raised funds investment project balance (10,000 yuan)

Influenza vaccine development and industrialization

China Minsheng Bank Co., Ltd.

634400821 and the existing product supply can be ensured. Sales Department of Xinxiang Branch of the Company has been closed

Capacity building project (completed)

Freeze-dried human rabies vaccine is available

CITIC Bank Xinxiang Branch Sales Department 8111101013001430373 2,692.06

Development and industrialization construction projects

Industrial and Commercial Bank of China Co., Ltd. develops multi-linked bacterial vaccines and

1704020229200164827 2,662.60

Si Xinxiang New District Branch Industrialization Construction Project

China Merchants Bank Co., Ltd. Zheng Development of recombinant herpes zoster vaccine

123905076110929 4,719.68

State branch business department development and industrialization projects

Construction of new vaccine research and development platform of Bank of China Co., Ltd.

259879676982 2,374.93 Xianghualan Branch Project

Total ———— 12,449.27

3. Actual use of funds raised during the reporting period

1. Usage of funds raised for investment projects

During the reporting period, there were no abnormal situations in the company's investment projects with raised funds, and there was no situation where the benefits of investment projects with raised funds could not be calculated separately. Please see Appendix 1 for details of the investment and benefits of each project.

2. Changes in implementation locations and implementation methods of fundraising projects

During the reporting period, the company did not change the implementation location or implementation method of the investment projects.

3. Advance investment and replacement of fundraising projects

The company held the 11th meeting of the first board of directors and the 11th meeting of the first board of supervisors on March 2, 2022, and reviewed and approved the "Proposal on Using Raised Funds to Replace Self-raised Funds Pre-invested in Raised Investment Projects and Issue Fees Paid", and agreed that the company would use raised funds to replace self-raised funds pre-invested in raised investment projects and tax-included issuance fees paid, totaling 898.722 million yuan. Dahua Accounting Firm (Special General Partnership) issued the "Assurance Report on Hualan Biological Vaccine Co., Ltd.'s Preliminary Investment of Raised Funds into Investment Projects with Self-raised Funds" (Dahua Hezi (2022) No. 002040) regarding the use of the above-mentioned self-raised funds. For details, please refer to Announcement No. 2022-004 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on March 4, 2022.

4. Use idle raised funds to temporarily supplement working capital

During the reporting period, the company did not use idle raised funds to temporarily replenish working capital.

5. Usage of surplus raised funds

The "Influenza Vaccine Development and Industrialization and Existing Product Supply Guarantee Capacity Building Project" has actually invested RMB 801.079 million in raised funds. It has been completed and put into production and all engineering, construction and other payments have been completed, so the project has been closed. The remaining funds raised from this project (including the net amount of interest income and financial management income minus bank fees, etc.) of 203.4144 million yuan were invested in the company's investment project of raised funds "Recombinant Herpes Zoster Vaccine Development and Industrialization Project." For details, please refer to Announcement No. 2025-016 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on March 29, 2025.

6. Usage of super-raised funds

The company does not have over-raised funds.

7. The purpose and destination of unused raised funds

The company has formulated a "Raised Funds Management System" and implements special account management for raised funds. Without affecting the construction needs of the investment projects with raised funds, and without affecting the company's normal production and operation and ensuring the safety of funds, the company rationally uses idle raised funds for cash management and improves the efficiency of the use of raised funds.

The company held the 11th meeting of the first board of directors and the 11th meeting of the first board of supervisors on March 2, 2022, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds for Cash Management" and agreed that on the premise of ensuring that the construction of investment projects with raised funds and the company's normal production and operations will not be affected, it plans to use no more than RMB 1 billion of idle raised funds for cash management. The use period will be valid for 12 months from the date of review and approval by the board of directors. Within the above quota and period, the funds can be used on a rolling basis. For details, please refer to Announcement No. 2022-005 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on March 4, 2022.

The company held the 18th meeting of the first board of directors and the 18th meeting of the first board of supervisors on February 28, 2023, and reviewed and approved the "Proposal on Continuing to Use Part of Idle Raised Funds for Cash Management" and agreed to continue to use no more than RMB 1 billion of idle raised funds for cash management on the premise of ensuring that it does not affect the construction of investment projects with raised funds and the company's normal production and operations. The use period is valid for 12 months from the date of review and approval by the board of directors. For details, please refer to Announcement No. 2023-007 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on March 2, 2023.

The company held the fourth meeting of the second board of directors and the fourth meeting of the second board of supervisors on February 28, 2024, and reviewed and approved the "Proposal on Continuing to Use Part of Idle Raised Funds for Cash Management", agreeing to continue to use no more than RMB 1 billion of idle raised funds for cash management on the premise of ensuring that it does not affect the construction of investment projects with raised funds and the company's normal production and operations. The use period is valid for 12 months from the date of review and approval by the board of directors. For details, please refer to Announcement No. 2024-005 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on February 29, 2024.

The company held the 12th meeting of the second board of directors and the 10th meeting of the second board of supervisors on February 28, 2025, and reviewed and approved the "Proposal on Continuing to Use Part of Idle Raised Funds for Cash Management" and agreed to continue to use no more than RMB 1 billion of idle raised funds for cash management on the premise of ensuring that it does not affect the construction of investment projects with raised funds and the company's normal production and operations. The use period is valid for 12 months from the date of review and approval by the board of directors. For details, please refer to Announcement No. 2025-006 disclosed by the company on March 1, 2025 on the cninfo.com (http://www.cninfo.com.cn/).

The company held the 18th meeting of the second board of directors on February 27, 2026, and reviewed and approved the "Proposal on Continuing to Use Part of Idle Raised Funds for Cash Management", and agreed to continue to use no more than RMB 1 billion of idle raised funds for cash management on the premise of ensuring that it does not affect the construction of investment projects with raised funds and the company's normal production and operations. The use period is valid for 12 months from the date of review and approval by the board of directors. For details, please refer to Announcement No. 2026-005 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on February 28, 2026.

As of June 30, 2026, the company's unused balance of raised funds (including the net amount of interest income and financial management income minus bank fees, etc.) was 1,032.4927 million yuan, of which the unexpired balance of financial products purchased using idle raised funds for cash management was 908.000 million yuan, and the remaining funds were deposited in a special account for raised funds.

8. Other uses of raised funds

The company comprehensively considers the implementation cycle and project acceptance cycle of some of the raised investment projects, and from the perspective of safeguarding the interests of all shareholders and the company, the date when the raised investment projects "Freeze-dried Human Rabies Vaccine Development and Industrialization Construction Project", "Polymer Bacterial Vaccine Development and Industrialization Construction Project", and "New Vaccine R&D Platform Construction Project" are expected to reach usable status will be extended to December 31, 2027, provided that the implementation entity of the raised investment project, the purpose of the raised funds and the investment scale do not change. For details, please refer to Announcement No. 2025-047 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on October 30, 2025.

4. Changes in the use of funds raised for investment projects

In 2023, in order to effectively improve the efficiency of the use of raised funds, make the raised investment projects more adaptable to the current market conditions, and further enhance the company's competitive advantage in the field of human vaccines, the company changed the investment project of the funds raised from the initial public offering of stocks to the "development and industrialization project of the new pneumonia vaccine", and invested the remaining funds of the project (including interest income, the actual specific amount is based on the interest balance of the project in the special account bank of the raised funds on the day of fund transfer) into the "development and industrialization project of the recombinant herpes zoster vaccine." For details, please refer to Announcement No. 2023-048 disclosed by the company on the cninfo.com (http://www.cninfo.com.cn/) on October 30, 2023.

Please see Appendix 2 for details of the investment and benefits of the project after the change.

5. Problems in the use and disclosure of raised funds

During the reporting period, the company's disclosed information on the use of raised funds was timely, true, accurate and complete, and there were no violations in the use and management of raised funds.

6. Documents for reference

Resolution of the third meeting of the third board of directors.

Announcement is hereby made.

Board of Directors of Hualan Biological Vaccine Co., Ltd.

August 29, 2026

Schedule 1:

Comparison table of usage of raised funds

Unit: 10,000 yuan

Investment this year

Total funds raised 227,576.88 1,835.90

Total funds raised

The total amount of raised funds whose purpose was changed during the reporting period 0

Total investment has been made

Cumulative total amount of raised funds changed in use 56,602.67 133,445.61

Total funds raised

The cumulative proportion of total raised funds changed in use is 25.22%

Yes No The project is feasible and the committed investment projects have been adjusted. The accumulated investment projects as of the end of the period have reached the forecast. Yes No Changes have been made. The investment amount of the raised funds committed this year has been realized this year. The total amount of investment has exceeded the total amount of raised funds. The progress of the estimated investment amount (%) (3) is in a usable status. Benefit

change) commitment investment projects

1. Influenza vaccine is prescribed

development and industrialization and

Existing product offerings

No 108,426.42 80,107.90 0.00 80,107.90 100.00 2022-12-31 2,733.24 No No guarantee capacity building

Project (closed)

2. Freeze-dried human medicine

Canine disease vaccine development

No 8,600.00 7,735.45 281.51 5,453.96 70.51 2027-12-31 —— Not applicable No and industrial construction

Project

3. Polybacteria

Vaccine development and production No 27,425.00 24,667.97 1,394.93 9,275.85 37.60 2027-12-31 —— Not applicable No Industrial construction project

4. New pneumonia epidemic

Seedling development and production

Yes 76,080.81 33,901.04 0.00 33,901.04 100.00 2023-12-31 —— No It is an industrialization project (change

Previous) 2

5. New vaccine research

Development platform construction project No 28,970.51 26,058.11 8.98 2,300.98 8.83 2027-12-31 —— Not applicable No project

6. Reorganization of shingles

development of rash vaccine

No —— 56,602.67 150.48 2,405.88 4.25 2028-08-31 —— Not applicable No and industrialization projects

(after change)

Commitment to investment projects

—— 249,502.74 229,073.14 1,835.90 133,445.61 —— —— 2,733.24 —— Subtotal

Investment direction of excess raised funds: The company does not have excess raised funds

1. The influenza vaccine development and industrialization and existing product supply guarantee capacity building projects failed to achieve the expected benefits in the feasibility study report in the first half of 2026.

The specific reasons are as follows: Since 2024, the prices of various domestic human vaccine products have declined to varying degrees. Based on market conditions, the company has not reached the planned price reduction of related influenza vaccine products by about 30% since June 2024. Therefore, it is difficult for the current influenza vaccine to achieve the expected benefits when the feasibility report was issued.

2. The vaccine development and industrialization process requires a long research and development cycle and multiple key approval nodes. There is a certain degree of uncertainty. Therefore, the circumstances and reasons for some investment projects have not been able to complete the project construction in full according to the planned implementation cycle. The company comprehensively considers the implementation cycle and project acceptance cycle of some of the raised investment projects, from the perspective of safeguarding the interests of all shareholders and the company, and under the condition that the implementation entity of the raised investment project, the purpose of the raised funds and the investment scale do not change, the date of the raised investment projects "Freeze-drying Project" Human Rabies Vaccine Development and Industrialization Construction Project, "Polymer Bacterial Vaccine Development and Industrialization Construction Project", and "New Vaccine R&D Platform Construction Project" are expected to reach a usable state. December 31, 2027. For details, please refer to the company’s announcement on cninfo.com on October 30, 2025.

Announcement No. 2025-047 disclosed by (http://www.cninfo.com.cn/).

The feasibility of the project "Development and Industrialization Project of New Pneumonia Vaccine" has undergone major changes in the market environment, and it is expected that it will not be able to achieve the company's established development goals. Therefore, the company has terminated the investment project with raised funds due to major changes, and invested the remaining raised funds from the project into the new project "Development and Industrialization Project of Recombinant Herpes Zoster Vaccine". Specific situation description For detailed information, please refer to the company’s announcement No. 2023-048 disclosed on October 30, 2023. Overfunded funds

Amount, purpose and use Not applicable Use progress

Raise funds for investment

Project implementation location Changes not applicable

Raise funds for investment

Project implementation method N/A adjustments

Raise funds for investment

The company used self-raised funds to pre-invest the actual investment amount in the raised projects of RMB 895,267,500, and used self-raised funds to prepay issuance expenses of RMB 3,454,500. The company invested in the replacement project in advance.

The total amount is 898.722 million yuan. For details, please refer to the company’s announcement No. 2022-004 disclosed on March 4, 2022. and replacement situation

Use idle funds to raise funds

Temporary replenishment flow of funds is not applicable to liquidity situations

Project implementation occurs

The "Influenza Vaccine Development and Industrialization and Existing Product Supply Guarantee Capacity Building Project" has been completed and there is a certain amount of surplus funds, the amount (including interest income and savings from financial management funds)

The net income (net of bank fees, etc.) is RMB 203.4144 million. For details, please refer to the company’s announcement No. 2025-016 disclosed on March 29, 2025. Amount and reason

Unused Raised Funds As of June 30, 2026, the company's unused raised fund balance (including interest income and financial management income, net of bank fees, etc.) is RMB 103,249.27 million, of which the unexpired balance of wealth management products purchased using idle raised funds for cash management is RMB 908,000,000, and the remaining funds are deposited in an account dedicated to raising funds.

Use of raised funds

During the reporting period, the information disclosed by the company regarding the use of raised funds was timely, true, accurate and complete, and there were no irregularities or other conditions in the use and management of raised funds.

situation

Note 1: The "Influenza Vaccine Development and Industrialization and Existing Product Supply Guarantee Capacity Building Project" has actually invested 801.079 million yuan in raised funds. It has been completed and put into production and all engineering, construction and other payments have been completed, so the project has been closed. The remaining raised funds for this project (including the net amount of interest income and financial management income minus bank fees, etc.) are 203.4144 million yuan. The above-mentioned remaining funds have been transferred to the "Recombinant Herpes Zoster Vaccine Development and Industrialization Project" account. The account of the "Influenza Vaccine Development and Industrialization and Existing Product Supply Guarantee Capacity Building Project" was canceled in December 2025.

Note 2: The total investment in the "Development and Industrialization Project of New Pneumonia Vaccine" of the company's investment project raised from the initial public offering of shares is 684.3243 million yuan. As of October 27, 2023, the cumulative investment was 339.0104 million yuan. The company invested the remaining funds of the project of 362.6123 million yuan (including interest income and financial management income) into the "Development and Industrialization Project of Recombinant Herpes Zoster Vaccine".

Schedule 2:

Changes to the investment project status of raised funds

Unit: 10,000 yuan

Item after change

As of the end of the period, the investment project has reached the forecast. The project after the feasibility change of the project this year. The corresponding original project planned investment. The actual investment of the year.

The actual cumulative investment progress (%) determines whether the expected benefits have been achieved and whether the expected benefits have been achieved. Project Amount of Raised Funds Amount of Investment

Amount (2) (3)=(2)/(1) Status Date Benefit Amount of significant changes (1)

Recombinant zoster

new pneumonia epidemic

Preparation of rash vaccine

Development and industrialization of seedlings 56,602.67 150.48 2,405.88 4.25 2028-08-31 —— Not applicable No development and industrialization

Industrialization project

Project

Total - 56,602.67 150.48 2,405.88 - - - - -

The market environment of the "Development and Industrialization Project of Novel Pneumonia Vaccine" has undergone major changes, and it is expected that it will not be able to achieve the company's established development goals. Therefore, the company terminated the investment project with raised funds and explained the reasons for the change, decision-making procedures and information disclosure (divided into specific projects). The remaining raised funds from the project were invested in the new project "Development and Industrialization Project of Recombinant Herpes Zoster Vaccine". This matter has been reviewed and approved by the company's board of directors and shareholders' meeting. For details, please see the company's announcements No. 2023-048 and 2023-051.

Situations and reasons for failure to achieve planned progress or expected benefits (by specific projects) Not applicable

Description of major changes in project feasibility after change Not applicable