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Northeast Pharmaceutical: 2025 Annual Report

Shenzhen Stock Exchange

2026/04/03

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

April 2026

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

2025 Annual Report

Section 1 Important Tips, Table of Contents and Definitions

The company's board of directors, directors and senior managers guarantee that the contents of the annual report are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability.

Zhou Kai, the person in charge of the company, Li Xin, the person in charge of accounting work, and Xia Tian, the person in charge of the accounting department (accounting supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in this annual report.

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

The forward-looking statements such as future plans involved in this report do not constitute the company's substantive commitment to investors. Investors and related parties should maintain adequate risk awareness and understand the differences between plans, forecasts and commitments. Investors are advised to pay attention to investment risks.

The company's future business development is affected by various risk factors. The company has explained this in the "11. Prospects for the company's future development" in Section 3 of this report, "Management Discussion and Analysis". Investors are advised to pay attention.

The company's profit distribution plan reviewed and approved by the board of directors this time is: based on 1,427,088,265, a cash dividend of 0.55 yuan (tax included) will be distributed to all shareholders for every 10 shares, 0 bonus shares (tax included) will be given, and the public reserve will not be converted into share capital.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 2 Company Profile and Main Financial Indicators

1. Company information

Stock abbreviation Northeast Pharmaceutical Stock code 000597 Stock abbreviation before change (if any) None

Stock exchange where stocks are listed Shenzhen Stock Exchange

The Chinese name of the company: Northeast Pharmaceutical Group Co., Ltd.

The company’s Chinese abbreviation: Northeast Pharmaceutical

The company's foreign name (if any) NORTHEAST PHARMACEUTICAL GROUP CO.,LTD.

Abbreviation of the company’s foreign name (if any) NEPG

The legal representative of the company Zhou Kai

Registered address Kunming Lake Street, Shenyang Economic and Technological Development Zone

Postal code of registered address 110027

Historical changes of the company’s registered address Not applicable

Office address: No. 8, Kunming Lake Street, Shenyang Economic and Technological Development Zone

Postal code for office address 110027

Company website http://www.nepharm.com.cn/

Email [email protected]

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Song Lizhi Yan Dongsheng

Contact address No. 8, Kunming Lake Street, Shenyang Economic and Technological Development Zone No. 8, Kunming Lake Street, Shenyang Economic and Technological Development Zone Telephone 024-25806963 024-25806963 Fax 024-25806400 024-25806400 E-mail [email protected] [email protected]

3. Information disclosure and preparation location

The website of the stock exchange where the company discloses its annual report: Shenzhen Stock Exchange (http://www.szse.cn)

"China Securities Journal", "Securities Times", "Shanghai Securities News" and cninfo.com are the media names and websites where the company discloses its annual report

(www.cninfo.com.cn)

The company's annual report is prepared at the office of the board of directors of Northeast Pharmaceutical Group Co., Ltd.

4. Registration changes

Unified social credit code 91210100243490227Y

Changes in the company’s main business since its listing (if any) No change

The company held a board of directors meeting on June 28, 2018 to complete the changes in the board of directors' previous changes to the controlling shareholder (if any)

election work. Related matters were reviewed by the company held on July 18, 2018

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The second extraordinary general meeting of shareholders in 2018 was reviewed and approved. After the reelection of the board of directors is completed, Fangda Group becomes the controlling shareholder of the company, and Mr. Fang Wei becomes the actual controlling shareholder of the company.

Control people.

5. Other relevant information

Accounting firm hired by the company

Name of the accounting firm Baker Tilly Certified Public Accountants (Special General Partnership)

Office address of the accounting firm: Building 12, Foreign Culture and Creative Park, No. 19, Chegongzhuang West Road, Haidian District, Beijing Name of the signing accountant: Liu Zonglei, Zhou Lang

The sponsor institution hired by the company to perform continuous supervision responsibilities during the reporting period

□Applicable Not applicable

Financial consultant hired by the company to perform continuous supervision duties during the reporting period

□Applicable Not applicable

6. Main accounting data and financial indicators

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

□Yes No

2025 2024 Increase or decrease this year compared with the previous year Operating income in 2023 (yuan) 7,074,853,263.92 7,502,554,909.23 -5.70% 8,243,175,021.66 Attributable to shareholders of listed companies

260,070,456.65 409,848,498.88 -36.54% 358,458,434.72 Net profit (yuan)

Attributable to shareholders of listed companies

Net after deducting non-recurring gains and losses 204,048,702.62 311,652,391.31 -34.53% 261,958,614.00 Profit (yuan)

cash flow from operating activities

1,106,382,481.27 758,761,121.21 45.81% 586,751,744.63 Net amount (yuan)

Basic earnings per share (yuan/share) 0.18 0.29 -37.93% 0.25 Diluted earnings per share (yuan/share) 0.18 0.29 -37.93% 0.25 Weighted average return on equity 4.77% 8.02% -3.25% 7.65%

End of 2025 End of 2024 Increase or decrease at the end of this year compared with the end of the previous year Total assets at the end of 2023 (yuan) 12,888,947,855.01 14,446,181,851.25 -10.78% 15,273,653,642.13 Attributable to shareholders of listed companies

5,529,861,664.80 5,321,612,954.62 3.91% 4,988,269,769.70 Net assets (yuan)

The company's net profit before and after deducting non-recurring gains and losses in the past three fiscal years, whichever is lower, is negative, and the audit report for the most recent year shows that there is uncertainty in the company's ability to continue operating.

□Yes No

The lower of the company's total audited profit, net profit, and net profit after deducting non-recurring gains and losses during the reporting period is negative.

□Yes No

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

7. Differences in accounting data under domestic and foreign accounting standards

Differences in net profit and net assets in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards

□Applicable Not applicable

During the reporting period, there was no difference between the net profit and net assets in the financial reports disclosed in accordance with international accounting standards and Chinese accounting standards.

Differences in net profit and net assets in financial reports disclosed in accordance with both foreign accounting standards and Chinese accounting standards

□Applicable Not applicable

During the reporting period, there was no difference between the net profit and net assets in the financial reports disclosed in accordance with foreign accounting standards and Chinese accounting standards.

8. Main financial indicators by quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter operating income 1,947,277,598.78 1,905,330,527.63 1,625,476,998.14 1,596,768,139.37 Attributable to shareholders of listed companies

Net profit of 36,321,572.23 92,857,038.20 43,524,470.78 87,367,375.44

Attributable to shareholders of listed companies

Net profit after deducting non-recurring gains and losses 19,906,997.48 69,450,387.24 42,789,144.84 71,902,173.06

Cash generated from operating activities

-30,857,306.06 135,971,974.18 274,088,055.83 727,179,757.32 Net flow

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

□Yes No

9. Non-recurring profit and loss items and amounts

Applicable □Not applicable

Unit: Yuan

Item Amount in 2025 Amount in 2024 Amount in 2023 Explanation of gains and losses from disposal of non-current assets (including accrued asset impairment

1,053,748.63 6,192,436.61 172,209.96 prepared write-off portion)

Government subsidies included in current profits and losses (related to the company’s normal operations)

closely related to the affairs, in compliance with national policies and regulations, and in accordance with the determined

70,848,186.39 62,931,248.32 97,005,428.42 Government subsidies that are enjoyed as standard and have a lasting impact on the company’s profits and losses

(except assistance)

Except for effective hedging related to the company’s normal business operations

Outside of financial affairs, non-financial enterprises hold financial assets and financial liabilities

350,622.31

Gains and losses arising from changes in fair value and disposal of financial assets and funds

Profit and loss arising from financial liabilities

Reversal of impairment provision for accounts receivable that were separately tested for impairment 776,986.74 15,063,011.95 971,804.18 Profit and loss from debt restructuring 6,606,190.88 5,160,420.26 8,605,948.49 Other non-operating income and expenses other than the above items -9,646,726.38 16,148,991.10 -10,053,541.01 Other profit and loss items that meet the definition of non-recurring profits and losses 12,642,272.38 253,993.22

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Less: Income tax impact 13,404,339.27 19,349,684.82 228,322.94

Amount of impact on minority shareholders’ equity (after tax) 562,915.27 592,588.23 227,699.60

Total 56,021,754.03 98,196,107.57 96,499,820.72 --Details of other profit and loss items that meet the definition of non-recurring profits and losses:

□Applicable Not applicable

The company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.

Explanation on defining the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Profit and Loss" as recurring profit and loss items

□Applicable Not applicable

The company does not define the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Profit and Loss" as recurring profit and loss items.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 3 Management Discussion and Analysis

1. The main business of the company during the reporting period

(1) Main business

Northeast Pharmaceutical is a listed company under Fangda Group. It was formerly known as Northeast Pharmaceutical General Factory. It was founded in 1946. It has assisted in the construction of 52 pharmaceutical companies in 19 provinces and cities across the country and sent more than 1,300 cadres abroad. It is known as the cradle of my country's national pharmaceutical industry. Over the years, the company has adhered to the original intention and mission of "pharmaceuticals for the country" and the brand concept of "all for people's health". It has won widespread recognition from all walks of life and formed a high market visibility and reputation.

The company is an important pharmaceutical production and export base in China, one of the largest monomer preparation production bases in China, a production base for anesthetic drugs and anti-AIDS drugs in China, a national intelligent manufacturing demonstration factory for bulk APIs and pharmaceutical intermediates, a national enterprise technology center and an innovative drug incubation base, and a mainstream supplier in the international pharmaceutical and food market. The company's main business covers chemical pharmaceuticals (raw materials, preparations), pharmaceutical business (wholesale, chain), pharmaceutical engineering (pharmaceutical design, manufacturing and installation), biomedicine (biological diagnostic reagents) and other sectors, forming a pharmaceutical upstream and downstream industry and service cluster. The company has ten series of high-quality products including vitamin products, anti-infective products, reproductive system and sex hormone products, nervous system products, anti-AIDS products, digestive tract products, hemp essence and hemp-containing series products, other general pharmaceutical products, in vitro (biological) diagnostic reagent products, and products in the general health field. It also has more than 400 types of chemical raw materials, pharmaceutical intermediates and preparation products. Its leading products are exported to many countries and regions, and it is a product supplier and strategic partner of many world-renowned companies.

The company's subsidiary Dingcheng Peptide Source focuses on the development and transformation of innovative solid tumor cell therapy products. It is a national high-tech enterprise, a Zhongguancun high-tech enterprise, a Beijing "specialized, special and new" enterprise, and a Beijing municipal-level enterprise scientific research institution. It has established an immunology postdoctoral research workstation and specializes in specific cellular immunotherapy technology research, product development and clinical transformation. It has built an independent core technology platform around target discovery, sequence discovery, sequence evaluation and function enhancement to develop genetically modified and non-genetically modified cell drugs and technologies, and simultaneously established a transformation platform for plasmids, viruses, cell technology and quality research.

(2) Main products and their uses

Vitamin products: mainly include vitamin C series, vitamin B1, vitamin B6 and levocarnitine series. Vitamin C pioneered the "two-step fermentation method" in the world and is exported to more than 60 countries and regions around the world; its main products include vitamin C chewable tablets (Deweixi), among which "Deweixi" is a famous trademark in Shenyang City. The company is the first domestic enterprise to obtain approval for the pharmaceutical raw material of levocarnitine, the main domestic manufacturer of medicinal levocarnitine, and the drafting unit of the national standard for Dongweili oral solution; it has two dosage forms: injection and oral solution; acetyl levocarnitine approved in 2022 is the first domestically approved pharmaceutical raw material; levocarnitine series products are exported to many countries and regions around the world.
Anti-infective products: mainly include fosfomycin series, azithromycin series, amantadine series, berberine hydrochloride, chloramphenicol and other products. It has the most complete range of fosfomycin series in China and is the world's major fosfomycin sodium manufacturer; fosfomycin sodium for injection (Fumeixin) is a broad-spectrum antibacterial,

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

No sensitivity test is required, and it can be used in combination with other antibiotics. The trademark "Fumeixin" is a well-known trademark in China; Fosfomycin Tromethamine Powder (Fu'anxin) is the first generic in China. It is used to treat acute simple lower urinary tract infections caused by sensitive bacteria and prevent urinary tract infections during surgical operations and infections caused by transurinary tract diagnostic techniques. It is a single-dose oral therapy approved by the US FDA for the treatment of uncomplicated urinary tract infections (UTI). It is also the only drug currently approved by the FDA as a single-dose therapy for bacterial infections. Amantadine hydrochloride is used to treat and prevent upper respiratory tract diseases caused by influenza A virus. It can also be used to treat cerebrovascular disorders and Alzheimer's disease. It can also be used to treat herpes zoster and post-herpetic neuralgia. Rimantadine hydrochloride has a broad antiviral spectrum, high activity, and can effectively kill viruses. It also has the advantages of rapid and safe absorption and low toxic and side effects. Berberine hydrochloride is the first total chemical synthesis in China and has a wide range of therapeutic areas, mainly used for intestinal infections. In recent years, we are jointly researching new applications in hypoglycemic and lipid-lowering aspects with the Chinese Academy of Medical Sciences.

Reproductive system and sex hormone products: mainly include carboprogesterone suppository, carboprost tromethamine, levonorgestrel tablets (Anting), tadalafil tablets and dapoxetine hydrochloride. The generic name of Carboprost methyl suppository is Carprosta methyl suppository. It is a national first-class new drug and a national essential drug. It was included in the national medical insurance catalog in 2004 and is used to prevent and treat postpartum hemorrhage caused by delayed uterine contractions. The trademark "Carboprost" is a famous trademark in Liaoning Province. Carboprost tromethamine is the company's product approved for marketing in 2022 and is a first-line treatment for postpartum hemorrhage. The company is the first domestic company to pass the approval of carboprost tromethamine raw material drug, which further enriches the company's product pipeline in the field of gynecology and consolidates the company's industrial chain advantage of integrating raw materials and preparations.
Nervous system products: mainly include piracetam series, levetiracetam series, vinpocetine and other products. Piracetam is the first domestic generic version of Piracetam and is a major API manufacturer in the world. It is mainly used for memory loss and mild to moderate brain dysfunction caused by acute and chronic cerebrovascular disease, brain trauma, various toxic encephalopathy and other reasons. It is also used for children with delayed intellectual development. Levetiracetam tablets and levetiracetam concentrated solution for injection approved for marketing in 2022 are used for partial seizures in adults and children over 4 years old with epilepsy; Vinpocetine is mainly used for sequelae of cerebral infarction, sequelae of cerebral hemorrhage, and cerebral arteriosclerosis.
Anesthetic and anesthetic-containing series products: Anesthetic and psychotropic drugs and anesthetic-containing series of drugs mainly include morphine hydrochloride injection, morphine hydrochloride tablets, oxycodone hydrochloride injection, compound licorice series, acetaminophen and codeine tablets, etc. Anesthetic and psychotropic drugs are mainly used for moderate to high analgesia and pain relief, and anesthetic-containing preparations are generally used for low to moderate analgesia and cough relief. Oxycodone Hydrochloride Injection is the company's product approved for marketing in 2020, the first domestic imitation. This product is an opioid analgesic widely used in clinical practice. It has strong analgesic effect, rapid onset of action, significant therapeutic effect on visceral pain, and has the clinical advantages of few drug interactions and high safety. The compound licorice series has remarkable antitussive effect and few toxic and side effects.
Anti-AIDS products: mainly include Kedu/Zidovudine tablets, Kedu/Zidovudine capsules, efavirenz, zidovudine tablets and other products. Zidovudine is the world's first anti-AIDS drug approved by the US FDA and is the most basic component of "cocktail" therapy. Efavirenz is the first-line anti-HIV drug used in combination with other antiviral drugs to treat HIV-1-infected adults, adolescents, and children. Zidolamid bivudine tablets are indicated for HIV-infected adults and children over 12 years of age.
Digestive system products: Mainly include Bacillus licheniformis (Zhenghengsheng), Aluminum Magnesium Carbonate Chewable Tablets, Compound Proglutamine Cimetidine Tablets (Rare Wei) and other products. Zhengchangsheng is a microbial live bacteria preparation, a national first-class new drug, mainly used to treat acute and chronic enteritis, and acute bacillary dysentery.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Abdominal bloating and diarrhea caused by liver disease, intestinal flora imbalance caused by various reasons, etc. are available in various dosage forms such as capsules and granules, and are suitable for different groups of adults and children.

Other products: mainly include acetaminophen tablets, analgesic tablets, phenacetin, pregabalin, nocodine syrup, citrine tablets, metronidazole tablets, tinidazole tablets, amlodipine maleate, and vildagliptin , empagliflozin, paracetamol and pseudoephedrine oral solution, paracetamol tablets and other products, covering nearly 20 categories of products such as antipyretic and analgesic, antitussive and expectorant, antibacterial drugs, cardiovascular and cerebrovascular drugs, endocrine and metabolic drugs. It has been widely used clinically or for many years for daily disease treatment. Among them, citronine tablets (Xiao Ke) combine three effects of antitussive, expectorant and anti-inflammatory; the trademark "Xiao Ke" is a famous trademark in Liaoning Province.
In vitro (biological) diagnostic reagent products: Human in vitro diagnostic reagents mainly include molecular diagnostic reagents for HIV, HBV, HCV, HPV, and TB. They are mainly used for qualitative and quantitative detection of infectious diseases or genetic diseases such as AIDS, hepatitis, human papillomavirus, and tuberculosis from a genetic perspective through "nucleic acid and gene chip" technologies.
Products in the health field: In 2025, the company will launch new health products such as beauty and skin care series cosmetics, medicinal and food homologous functional biscuits. In addition, the company also has vitamin C series products, glycosaminoglycan chondroitin sulfate collagen D3 calcium capsules, protein powder, probiotic powder, American ginseng ready-to-eat tablets and other health products. Among them, the vitamin C series includes oral dissolving powder, effervescent tablets, chewable tablets, solid drinks and other products, and has formed a comprehensive health product system with diversified tastes and dosage forms and serialization.
Cell therapy products: Relying on the technology platform, we will focus on TCR-T, CAR-T cell therapy products and non-genetically modified cell products and technologies, focus on solid tumor indications such as pancreatic cancer, colorectal cancer, gastric cancer, liver cancer, and brain glioma, and develop multiple products under development targeting core targets such as KRAS mutations and EGFRvIII.

(3) Business model

Production mode

Northeast Pharmaceutical's production model is a production model that combines annual business plans and temporary organization of customer special needs orders. Long-term production and year-round sales varieties are strictly implemented in accordance with the annual business plan, and small varieties and customer special needs orders are organized in accordance with order requirements. Specific measures include:

(1) Promote the continuous deepening of production plan management, further improve human efficiency, coordinate advance planning and respond to dynamic changes, further improve work efficiency through internal tapping of potential, maintain smooth communication between supply, production and marketing, strengthen the seriousness of production plan execution, strengthen assessment and supervision methods, take into account safety, environmental protection, and quality compliance requirements, ensure the smooth operation of the production system, and support annual production and operation goals.

(2) Continue to promote cost reduction work at a high level, fully consider seasonal characteristics, production cycles and production specifications when scheduling production, rationally utilize working hours to organize production intensively, and reduce production costs while meeting sales demand. Combined with the company's actual operating conditions, dynamically optimize management and control requirements, establish a new comparison template, guide production units and support centers to explore improvement points, and implement cost reduction and cost control.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(3) Actively and proactively connect, promote production coordination, do a good job in the transition and connection of the production of products that have been evaluated for consistency evaluation, and balance the connection work of new products, procurement of new resources, development and verification, etc. Fully participate in the production evaluation and on-site docking of self-supplied raw materials during the product revitalization process to support the development needs of the enterprise.

(4) Continue to improve the company's special drug system management, conduct monthly self-examinations, quarterly internal audits, and annual reviews, organize and implement monthly special drug meetings, and ensure that special drug management reaches the front lines and all involved positions. At the same time, special drug management personnel at all levels are organized to further strengthen the prevention and fraud management of special drugs to ensure that the production process can be tracked throughout the entire chain, and materials and finished products can be traced throughout the process.

(5) Continue to do a good job in process execution inspection, process precision control, on-site 5S management, inspection and laboratory video supervision, etc., implement full-process production process compliance inspection, service, and guidance, and urge production units to always maintain compliance and efficient operation.

Sales model

(1) Sales of APIs

According to different sales models, the market is divided into self-operated and agency/distribution.

Sales model Sales channel Market characteristics

Can directly establish cooperative relations with end customers and purchase directly from production factories, effectively reducing users’ procurement costs;

Manufacturer - terminal use

Self-operated 2. A single customer purchases a large amount;

household

The demand is fixed, the supply requirements are stable, and the price sensitivity is not high. Quality audits will be carried out on the factory.
Sales channels are basically fixed to ensure product quality and communicate with manufacturers through trading companies;
The purchase volume is small, but the number of customers is huge. The sales volume is expanded through distributors, but the customer manufacturer-agent/sub-customer's specific needs are slow to communicate;

Agency/Distribution

Sales - end users 3. For the purpose of profit, taking into account the brand;

Distributors mainly cover customers in exporting countries and rarely operate across borders. They basically select two suppliers, with one as the main supplier. They usually have local warehouses to meet customers' timely and scattered small-amount needs.

(2) Sales of preparations

Agent sales are the company's main preparation sales method. Adopt diversified sales strategies based on product attributes, including clinical promotion, retail promotion, channel distribution and e-commerce sales. According to different products and regional differences, we set up sales support units to provide comprehensive services to various provinces, regions and regions through precise market positioning and in-depth market analysis, deeply explore the market, and help achieve sales targets.

(3) Supply and marketing company

The supply and marketing company has five major business sectors, integrating the five major functions of hospital, promotion, express batch, distribution, and e-commerce. It is a mature comprehensive, full-format pharmaceutical commercial enterprise. The supply and marketing company is the provincial general distributor of many well-known domestic and foreign companies, dealing in traditional Chinese medicine pieces, Chinese patent medicines, chemicals, biological products, second-class psychotropic drugs, anabolic preparations, peptide hormones, etc. The company's network layout covers the entire Liaoning Province and Jilin Province, forming an operation model with unique regional characteristics.

(4) Northeast Pharmacy

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Northeast Pharmacy is one of the leading pharmaceutical retail chain enterprises in Liaoning Province, mainly engaged in the retail business of pharmaceuticals, health products, medical equipment and other products.

Adhering to the business philosophy of "the largest pharmacy in Northeast China, professional in protecting health", the company has continued to deeply explore the Liaoning market over the years and has many directly-operated stores in many cities in the province. Store types include hospital side stores, business district stores, community stores and in-hospital pharmacies. The main service targets are ordinary consumers and group purchase customers of enterprises and institutions in the province (such as government agencies, banks, large enterprises, etc.). Committed to providing customers with high-quality products and a good shopping experience.

While doing a good job in physical retail, based on the company's offline stores, through competitive commodity resources, we can achieve online and offline integration and accelerate the development of pharmaceutical e-commerce (including O2O and B2C). At the end of the reporting period, online sales were realized through mainstream third-party platforms such as JD.com, Tmall, and Pinduoduo, as well as self-built WeChat mini programs, and the delivery scope could cover the entire country. Through cooperation with Ele.me and Meituan, the scope of localized store sales network has been expanded. Ensure to keep up with the industry’s “new retail” pace and expand the influence of e-commerce.

(5) Products and research progress

As of December 31, 2025, the registration status of drugs that have entered the registration process:

Indications and functions

Serial number Drug name Registration category Registration stage Progress status Indications

1 Berberine hydrochloride tablets Improved new drug Lipid-lowering, hypoglycemic Approved for clinical trials 2 Berberine hydrochloride sustained-release capsules Improved new drug Lipid-lowering, hypoglycemic Approved for clinical trials 3 Efavirenz 4 Anti-AIDS Obtained registration certificate mark A——

4 Levetiracetam extended-release tablets 3 Nervous system Obtained drug registration certificate——

5 L-carnitine oral solution 4 Metabolic regulation Obtained drug registration certificate——

6 Pregabalin Capsules 4 Analgesia Registration Application Under Review

7 Ritonavir 4 Anti-AIDS registration application under review

8 Elagolix sodium 3 Reproductive system drug registration application under review

9 Dolutegravir sodium 4 Anti-AIDS registration application under review

10 Mabaloxavir 4 antiviral drug registration application under review

11 Empagliflozin Tablets 4 Metabolism Regulation Registration Application Under Review

Efavirenz tablets

12 4 Anti-AIDS registration application under review

(200mg)

13 Dolutegravir Sodium Tablets 4 Anti-AIDS Registration Application Under Review

As of December 31, 2025, the research and development project of ultra-sensitive and high-precision human immunodeficiency virus (HIV-1) load detection reagents has successfully entered the clinical completion stage.

As of December 31, 2025, the company's subsidiary Dingcheng Peptide Source DCTY1102 injection has received the "Drug Clinical Trial Approval Notice" approved and issued by the State Food and Drug Administration, and is expected to become the world's second TCR-T cell drug targeting KRAS G12D and the country's first.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

DCTY0801 injection (glioblastoma indication) has obtained orphan drug qualification certification from the US FDA in May 2023, and received the "Drug Clinical Trial Approval Notice" approved and issued by the National Medical Products Administration on September 29, 2025.

(6) Products that have been included in the "National Basic Medical Insurance, Work Injury Insurance and Maternity Insurance Drug Catalog" and the latest version of the "National Essential Drug Catalog"

As of December 31, 2025, among the company's 359 approved products, 245 products belong to national medical insurance varieties; 120 products belong to national essential drug varieties.

(4) Market position of the company’s products

Northeast Pharmaceutical is one of the earliest companies in my country to export chemical raw materials. Its sales channels cover many countries and regions in China, Europe and the United States, and it occupies a certain position in both domestic and foreign markets. The company's key products such as Zhengchangsheng, Dongweili, Carrein Suppository, Fu'anxin, Fumeixin and Deweixi have shown significant advantages in the competition with generic products.

Dingcheng Peptide is derived from the independently developed DCTY1102 injection. It is an autologous TCR-T cell immunotherapy product indicated for malignant tumors such as advanced pancreatic cancer and colorectal cancer. This is the most advanced product in the world among similar products with the same target. It is the second TCR-T cell drug targeting KRAS G12D in the world and the first domestically to enter Phase I clinical research. DCTY0801 injection has obtained orphan drug qualification certification from the U.S. FDA in May 2023. Drugs that have obtained orphan drug qualification can enjoy incentive policies such as fast track marketing application, a 7-year research and development exclusivity period after listing, and tax incentives in the United States, which is of great value to the drug launch or global promotion.

(5) Competitive advantages and disadvantages

First, the company lays out the entire industrial chain to form differentiated core competitiveness, and achieves independent control of the entire process through supporting subsidiaries such as engineering design, hazardous chemicals transportation, and measurement inspection. At the same time, we will build a three-dimensional pharmaceutical business network covering the whole of Liaoning and radiating to the three northeastern provinces, and open up integrated pharmaceutical e-commerce services to promote business model innovation and ecological upgrading. Second, the company deepens the integrated layout of "raw materials + preparations", and achieves independent control of the entire industry chain for its main products. At the same time, through technological breakthroughs and production capacity implementation of key varieties, the company continues to enrich its product pipeline, consolidate its industrial advantages in the integrated raw materials and preparations, and build differentiated barriers for market competition. Third, the company reduces solvent consumption by optimizing processes, achieves synergy between economic and environmental benefits, launches a circular economy industrial park, strengthens waste resource utilization and core capabilities such as incinerators and photovoltaic power generation, and forms a closed loop of sustainable development. Fourth, the company strictly follows the international and domestic GMP quality management system and has established a complete systematic management framework. Through the automation of the entire production process and visual penetrating management and control, core data such as production, safety, energy consumption, and quality can be monitored in real time to achieve full traceability and ensure the compliance and stability of production operations.

At the same time, the company is clearly aware of its shortcomings in competitiveness. First, the product structure is single. The products are mainly low-margin traditional generic drugs, and there is a lack of high-margin innovative drugs or biological drugs, making it difficult to cope with the pressure of price reductions for volume purchases. Secondly, the marketing model is traditional. The sales team mainly has many years of experience in selling old products and seems passive in adapting to market changes. The domestic market lacks digital marketing layout. The international market channels are weak, lacking independent brands and overseas direct sales networks, and at the same time, it has insufficient penetration into international markets (such as the European and American high value-added pharmaceutical markets). again,

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Insufficient reserves of cutting-edge talent and technology restrict process upgrades and cost control. At the same time, the company is also facing environmental pressure. Since the production of APIs is a highly polluting and energy-intensive industry, stricter environmental protection policies have led to rising costs.

(6) Main performance drivers

The marketing system strives to break the situation and fully stimulate market vitality

Faced with the market pressure brought about by the normalization of centralized procurement and the in-depth reform of medical insurance payment methods, the company has anchored on the core goal of "expanding terminals, strengthening coverage, and increasing contribution", and continues to optimize the core path of academic promotion. Through clinical promotion, terminal development and channel preemption, it improves terminal coverage and unit yield, leverages the advantages of integrating APIs and preparations, and enhances the market competitiveness of industrial chain products. Targeted introduction of terminal pure sales incentive policies to consolidate the market leadership of Dongweili, Zhengchangsheng, fosfomycin sodium and other products, strengthen the precise monitoring and control of "three types of terminals", fully activate the product market development potential, achieve year-on-year growth in net sales, and the coverage of all major varieties increase year-on-year.

Faced with severe challenges in the domestic market and foreign markets, raw material sales have made efforts from multiple dimensions such as product strategic planning, customer structure, performance orientation, etc., and proactively broke through the situation and made progress. Strengthen product planning, optimize the sales structure of raw material products, and maximize economic benefits. Key products such as levocard series, sucralfate, berberine hydrochloride, and exported fosfomycin sodium all maintained steady growth.

Lean production ensures high-quality supply and builds a solid foundation for enterprise development.

With the comprehensive production department as the core, we have built a management system of "production and marketing collaboration, full-chain precision control" to coordinate and promote related work such as production arrangements, material supply guarantees and by-product transportation, and integrate refined management concepts throughout the entire production process to achieve two-way breakthroughs in ensuring high-quality supply and reducing costs and increasing efficiency. Keep a close eye on the progress of indicators, focus on process optimization, make precise efforts from the dimensions of yield improvement, quality control, energy consumption reduction, precise parameter control, etc., rely on technology to reduce costs to support projects to deeply explore their potential, and continue to promote cost reduction work at a high level. We will further promote the transformation of equipment management towards digitalization, intelligence and professionalization, continue to introduce and apply new technologies, new equipment and new materials, and solidly carry out technological upgrading and transformation to provide strong guarantee for production operations. Adhering to the management principle of "taking cost reduction as the core focus and ensuring supply as the basic responsibility", we will promote the development of new resources on the basis of compliance and enhance the resilience and bargaining initiative of procurement and supply guarantee. By closely tracking domestic and foreign political and economic situations and upstream and downstream price trends, and dynamically adjusting procurement strategies based on production scheduling plans and supplier production capacity, the value creation capabilities of the supply chain continue to increase.

Safety management has established a three-dimensional supervision model of "daily inspections + seasonal inspections + major holiday inspections". A total of 1,045 potential safety hazards were investigated and rectified throughout the year, with a rectification completion rate of 100%; 267 emergency drills at all levels were organized and carried out, with 15,264 people participating in the drills. We organized and carried out safety training for 1,538 people, and provided safety education for a total of 1,313 external personnel. We will continue to strengthen the hierarchical management and control of safety risks and the investigation and management of hidden dangers, accelerate the digital transformation of safety management, build and improve the dual prevention mechanism for hazardous chemicals, and use technology to empower safety management and control efficiency.

Environmental protection management adheres to the concept of "precise pollution control, scientific pollution control, and pollution control in accordance with the law". The environmental protection system has operated stably throughout the year and has successfully passed multiple on-site inspections and monitoring by the national, provincial, municipal, and district authorities. Strictly implement the full-process management and control of hazardous waste, the effective transmission rate of online monitoring data exceeds 98%, the self-monitoring compliance and data release rate both reach 100%, achieve VOCs emission reduction, and implement green development responsibilities with solid measures.

The quality management work has been steadily improved. No major quality accidents occurred in the raw materials and preparation products throughout the year. The passing rate of raw materials and random inspections were both 100%, and the passing rate of preparations and market sampling were 100%. Key progress in international certification efforts: Chlorine

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Mymycin products passed the Brazilian drug certification inspection for the first time with zero defects. The Xihe plant received the first unannounced inspection of dietary supplements by the US FDA and passed with zero defects. Piracetam products passed the EU CEP on-site inspection, and fosfomycin trometamol products obtained the EU CEP certificate, providing strong support for the company to expand overseas markets. Phenacetin, vitamin D2, and fosfomycin sodium products successfully passed the domestic GMP certification inspection. Establish a cosmetics quality management system to ensure the compliance of cosmetics entrusted production business and provide quality support for the company's diversified development.

Increase efforts in drug research and development, and the results of project introduction are outstanding

We will continue to increase the research and development of new products, focus on advantageous treatment areas and product clusters, and adhere to the "two-wheel drive" of generic drugs and innovative drugs. By strengthening R&D node management, optimizing parallel R&D processes, improving R&D quality management, and accelerating the progress of ongoing research projects. Efavirenz API completed CDE review and received a marketing application approval notice, and levetiracetam extended-release tablets and levetiracetam oral solution obtained drug registration certificates. The registration applications for four new generic drugs, including efavirenz tablets (200 mg), dolutegravir sodium tablets, empagliflozin tablets, and mabaloxavir API, were accepted. Promote the construction of a reserve pool for R&D projects, tap potential varieties, and revitalize two old varieties such as oryzanol throughout the year. Continuing to focus on the biopharmaceutical track, Dingcheng's peptide source R&D pipeline is advancing steadily, key projects have made key progress and obtained important approvals.

Professional lines blossom in more places, and synergy empowers and builds cohesion.

Promote recruitment in accordance with the company's strategic plan, effectively fill vacancies in key positions, and strengthen talent support for core business segments. We will solidly carry out special recruitment for recent master's and doctoral students, establish a full-cycle tracking and training mechanism, and build a good platform for the rapid growth of talents. Establish a scientific and reasonable result evaluation mechanism, accurately measure the work results of cadres and employees with objective, fair and comprehensive evaluation standards, stimulate team work enthusiasm and creativity, and provide a solid talent guarantee for the company's high-quality development.

Anchor the national "artificial intelligence + manufacturing" policy orientation, with data security and compliance as the core, complete the basic upgrade of the Xihe data center, build an industrial big data disaster recovery and unified backup system, and successfully pass domestic and foreign audits and verifications of computerized systems; deepen the construction of smart factories, implement DCS system digital twins and heterogeneous system remote control, hone the professional talent team through skills competitions, lay a solid foundation for innovation with more than 100 AI application scenario demonstrations, and lay a solid foundation for the digital transformation of the entire chain.

Strengthen financial work management and focus on the core goals of risk control, efficiency creation and cost reduction. Continue to strengthen daily supervision and risk prevention and control of accounts receivable and overdue accounts.

We will intensify auditing and supervision efforts and make precise efforts around compliance operations and risk prevention and control.

Party building guidance continues to deepen, and welfare benefits continue to rise

We continue to optimize the structure of the party and mass teams. The grassroots party organizations have established 65 vanguard posts for party members around the enterprise's production and operation center, set up 28 party member responsibility areas, initiated 55 party member projects, and established 36 party member commando teams to comprehensively support production and operation.

2. Industry conditions of the company during the reporting period

In 2025, my country's chemical pharmaceutical industry is in a stage of in-depth transformation and high-quality development with normalized centralized procurement and quality improvement, continued strict industry supervision, accelerated industrial innovation and transformation, and continuous optimization of supply structure. With the aging of the population, increasing demand for primary care and the national medical and health system

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Against the background of the continuous deepening of reform, the chemical pharmaceutical industry as a whole maintains an operating trend of steady progress, improving quality and efficiency, and intensifying survival of the fittest. The development of the industry has gradually shifted from scale expansion in the past to a new development pattern of quality first, compliance-based, cost controllable, innovation-driven, and coordination of the entire industry chain.

In 2025, the pharmaceutical manufacturing industry will accelerate structural adjustment and new growth momentum will gradually grow. According to data from the National Bureau of Statistics, the annual revenue of enterprises above designated size reached 2.49 trillion yuan, a year-on-year decrease of 1.2%, and profits were 349 billion yuan, a year-on-year increase of 2.7%. The economic indicators of the pharmaceutical manufacturing industry have gradually recovered, but the scale growth rate is still weaker than the national industrial level, and the pressure for high-quality development and transformation continues to exist.

Under the guidance of policies, the chemical pharmaceutical industry continues to transform and upgrade in the direction of high quality, compliance, scale, differentiation, and integration. The industry structure continues to be optimized, and the development environment becomes more healthy and orderly. This provides a sustainable, predictable, and long-term healthy development external industry environment for chemical pharmaceutical companies such as Northeast Pharmaceutical, which have a complete raw material preparation industry chain, standardized production operations, mature quality systems, outstanding scale advantages, and long-term stable operations.

(1) The industry faces deep adjustments

With the continuous deepening of national policies and the continuous upgrading of market demand, competition in the pharmaceutical industry has intensified. At present, industrial upgrading has entered the "deep water zone". Core technologies in innovative fields such as high-end preparations and biopharmaceuticals are still dependent on imports, and the industrial chain autonomy rate is insufficient. The contradiction between the stagnant growth of traditional generic drugs and the long commercialization cycle of innovative drugs is highlighted. Superimposed environmental protection standards have pushed up compliance costs, leading to a decline in the overall profit margin of the industry. The pharmaceutical industry is facing a difficult transformation from "scale expansion" to "high-quality development".

(2) The joint effect of multiple policies

Volume-based purchasing and medical insurance cost control policies continue to deepen, and drug prices have become a key factor. So far, eleven batches of national centralized procurement have been organized, including a total of 490 kinds of drugs, with an average reduction of more than 50%. From national centralized procurement to local alliance centralized procurement, the scope of centralized drug procurement continues to expand. With the introduction of policies such as the "four identical drugs" price management, the prices of many varieties have been further reduced. At the same time, policy pressure has been transmitted to the upstream, and the operating rate of API companies has been insufficient. Although innovative pharmaceutical companies have entered medical insurance through "price-for-volume", the gap between medical insurance payment prices and R&D costs has widened, and the industry's profit margins have been further compressed.

(3) Generic drug competition is becoming increasingly fierce

Currently, the field of chemical drugs is still dominated by generic drugs, accounting for more than 70%. However, the industry presents a structural contradiction of "low concentration and high homogeneity". Many companies rely on the extensive model of "scale expansion + price competition" to survive. Some small and medium-sized enterprises even reduce prices by compressing production standards and avoiding compliance costs, further disrupting the market order. In particular, bulk API companies such as vitamins and antibiotics are locked in a "price war" to compete for market share. The prices of some varieties have fallen below the cost of raw materials. The international market is flooded with a large number of low-priced domestic export products, which has seriously affected the value core of China's pharmaceutical manufacturing.

(4) Innovation and transformation challenges and opportunities coexist

Traditional pharmaceutical companies face dual impacts in the process of innovation and transformation: on the one hand, there is insufficient investment in R&D, and the R&D cost of a single new drug is far beyond the company's ability to bear; on the other hand, the R&D foundation is weak and independent innovation capabilities are insufficient. At present, most companies are still focused on following innovation, and the targets are tightly clustered.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Heavy. For example, PD-1/PD-L1 and Claudin18.2 in the field of anti-tumor, GLP-1 in the field of metabolic diseases, and CD19 in CAR-T therapy. These targets are highly concentrated and homogeneous, which not only causes a waste of R&D resources, but also leads to the "one-size-fits-all approach" in the subsequent commercialization stage. In addition, the cycle from R&D to commercialization of innovative drugs is long and the risks are high. The capital market has become cautious in investing in the pharmaceutical industry, making financing more difficult. Innovative pharmaceutical companies are facing financial pressure on R&D investment. At the same time, China's cell therapy industry has ushered in a critical window period with favorable policies, accelerated clinical transformation, and breakthroughs in solid tumors. The number of IND approvals has increased significantly, and the industry has comprehensively expanded from the field of hematology to solid tumors. Dingcheng Peptide focuses on specific cellular immunotherapy of solid tumors. It is one of the few domestic companies with complete technology platforms and independent intellectual property rights for TCR-T and CAR-T. It has a comprehensive product pipeline layout, and its DCTY1102 injection product has entered the clinical trial stage, giving it a competitive advantage in segmented tracks.

(5) The global market faces multiple structural challenges

Europe's manufacturing reshoring policy promotes the reconstruction of local production capacity, and India's "self-sufficiency" plan strengthens its independent supply system for APIs, coupled with the continued escalation of trade frictions, which directly leads to a decline in demand in my country's traditional export markets, further leading to a situation of "oversupply" in the domestic market. In addition, major markets such as Europe and the United States frequently set up technical barriers, raise tariff thresholds, and implement more stringent quality reviews and market access restrictions on Chinese products, resulting in continued pressure on international market share.

3. Core competitiveness analysis

(1) Advantages of collaborative empowerment across the entire industry chain

The company has laid out the entire industrial chain of "R&D-production-distribution-service" to form differentiated core competitiveness; through engineering design, hazardous chemicals transportation, measurement and inspection and other supporting subsidiaries, it has achieved independent control of the entire process; it has built a three-dimensional pharmaceutical business network covering the entire region of Liaoning and radiating to the three northeastern provinces, and opened up integrated services of "offline entities + online platforms" for pharmaceutical e-commerce to promote business model innovation and ecological upgrading.

(2) Deeply expand the advantages of integration of raw materials and preparations

The company has deepened the integrated layout of "raw materials + preparations" in the core product field, and its main products have achieved independent control of the entire industry chain. At the same time, through technological breakthroughs and production capacity implementation of key varieties, the company continues to enrich its product pipeline, consolidate the industrial advantages of integrated raw materials and preparations, and build differentiated barriers for market competition.

(3) “Double Innovation” Driving Advantages

The company has a national-level enterprise technology center and a new drug incubation base, and continues to deepen strategic cooperation with top research institutions such as the Chinese Academy of Sciences. The company has increased its investment in innovative drugs and high-tech threshold generic drugs, and the research and development of new products focusing on innovation has entered a new stage. It has completed a series of new product projects in the fields of chemical innovative drugs and biological innovative drugs, including monoclonal antibodies, bisAbs, ADCs and CAR-T. While the company continues to optimize existing products and accelerate the research and development of new products, it is also beginning to plan the research and development and industrialization of innovative biological drugs, forming a "double innovation" driven pattern in which innovative drugs lead the way and generic drugs follow up.

The company's subsidiary Dingcheng Peptide has carried out clinical research on a number of cell therapy products in well-known domestic tertiary hospitals, establishing a scientific research and clinical research cooperation model. After years of technology accumulation and precipitation, the company has formed a batch of technological achievements to be transformed. In addition to multiple product pipelines under development, the sequence discovery platform

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

We reserve more than 30 verified TCR sequence libraries and have product transformation capabilities. With the continuous improvement and development of technology, more product pipelines will be gradually transformed to benefit the majority of cancer patients.

(4) Competitive advantages of environmental protection compliance

Through the implementation of environmental protection projects, the company's wastewater and exhaust gas emissions are far superior to national and Liaoning provincial standards, and tail gas emissions also meet the latest national standards. Introducing MBR membrane bioreactor; optimizing the process to reduce solvent consumption and achieving synergy between economic and environmental benefits; launching a circular economy industrial park to strengthen waste resource utilization and core capabilities such as incinerators and photovoltaic power generation to form a closed loop of sustainable development.

(5) Systematic and refined management efficiency advantages

The company strictly follows the international and domestic GMP quality management system and has established a complete systematic management framework. Through the automation of the entire production process and visual penetrating management and control, core data such as production, safety, energy consumption, and quality can be monitored in real time to achieve full traceability and ensure the compliance and stability of production operations. At the same time, refined management has been deeply integrated into the corporate culture. Through multiple supervision mechanisms, a closed loop is formed in all aspects of corporate management, reducing leakage and leakage, and improving corporate management efficiency.

(6) Advantages of corporate culture and brand influence

After 80 years of development and cultural inheritance, the company has accumulated a profound brand heritage and has been rated as one of the top 100 enterprises in China's pharmaceutical industry and one of the top 100 enterprises in China's chemical and pharmaceutical industry for many years. The company adheres to the guidance of party building, comprehensively strengthens party building, promotes the deep integration of party building work with production and operations, and promotes high-quality development of the enterprise. Facing the future, the company will continue to uphold the corporate culture of "Party Building as the Soul", deepen its brand advantages, and strive to build Northeast Pharmaceutical into an internationally renowned and domestically leading large-scale comprehensive pharmaceutical and health industry group.

4. Main business analysis

Overview

In 2025, faced with multiple pressures such as intensified homogeneous competition in the industry and narrowing space for growth in the existing market, the company's cadres and employees adhere to the guidance of party building, unite and forge ahead, overcome difficulties, and make every effort to sprint towards the annual production and operation task targets. Internally, we will deeply cultivate refined management, comprehensively improve quality and efficiency, and externally keep a close eye on market trends, continuously optimize the allocation of R&D resources and product matrix layout, cultivate new competitive advantages, continue to improve basic work levels such as safety, environmental protection, and quality, lay a solid foundation for corporate development, and promote the company's high-quality development and steady improvement of its core competitiveness.

During the reporting period, the company achieved operating income of 7.075 billion yuan; net profit attributable to shareholders of the listed company was 260 million yuan. As of December 31, 2025, the company's total assets were 12.89 billion yuan; the net assets attributable to shareholders of listed companies were 5.530 billion yuan, a year-on-year increase of 3.91%.

For the main business information, please refer to the relevant contents of "1. The main business engaged in by the company during the reporting period" and "2. The industry situation of the company during the reporting period" in this section.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Income and costs

(1) Composition of operating income

Unit: Yuan 2025 2024

Ratio of operating income Year-on-year increase or decrease Amount Ratio of operating income

heavy

Total operating income 7,074,853,263.92 100% 7,502,554,909.23 100% -5.70% Industry

Pharmaceutical manufacturing 3,898,464,474.92 55.10% 4,291,459,855.29 57.20% -9.16% Pharmaceutical business 3,026,294,500.73 42.78% 3,052,937,029.34 40.69% -0.87% Others (including others

150,094,288.27 2.12% 158,158,024.60 2.11% -5.10% business income)

By product

Sales of raw materials 1,126,501,217.65 15.92% 1,297,701,085.15 17.30% -13.19% Sales of preparations 2,743,431,020.45 38.78% 2,929,101,286.64 39.04% -6.34% Others (including others

3,204,921,025.82 45.30% 3,275,752,537.44 43.66% -2.16% business income)

By region

Export 1,087,691,853.17 15.37% 902,299,240.38 12.03% 20.55% Domestic sales 5,987,161,410.75 84.63% 6,600,255,668.85 87.97% -9.29% Sales model

Direct sales 4,136,002,032.75 58.46% 4,551,997,550.16 60.67% -9.14% Distribution 2,938,851,231.17 41.54% 2,950,557,359.07 39.33% -0.40%

(2) Industries, products, regions, and sales models that account for more than 10% of the company’s operating revenue or operating profit

Applicable □Not applicable

Unit: Yuan Operating income is higher than operating cost is higher Gross profit margin is higher than operating income Operating cost Gross profit margin

Increase/decrease in the same period of the year Increase/decrease in the same period of the year Increase/decrease in the same period of the year By industry

Pharmaceutical manufacturing 3,898,464,474.92 1,498,889,543.51 61.55% -9.16% -9.96% 0.34%Pharmaceutical commerce 3,026,294,500.73 2,841,953,538.21 6.09% -0.87% 0.88% -1.64% others (including others

150,094,288.27 96,868,083.19 35.46% -5.10% -15.61% 8.04% business income)

By product

Sales of raw materials 1,126,501,217.65 354,702,797.97 68.51% -13.19% -19.35% 2.40% Sales of preparations 2,743,431,020.45 1,139,107,941.36 58.48% -6.34% -3.22% -1.34% others (including others

3,204,921,025.82 2,943,900,425.58 8.14% -2.16% -1.20% -0.90% business income)

By region

Export 1,087,691,853.17 949,210,644.81 12.73% 20.55% 10.69% 7.77%Domestic sales 5,987,161,410.75 3,488,500,520.10 41.73% -9.29% -6.70% -1.62% points sales model

Direct sales 4,136,002,032.75 1,655,681,781.47 59.97% -9.14% -10.98% 0.83%Distribution 2,938,851,231.17 2,782,029,383.44 5.34% -0.40% 1.66% -1.91% If the statistical caliber of the company's main business data is adjusted during the reporting period, the company's main business data in the most recent year will be adjusted based on the caliber at the end of the reporting period.

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(3) Whether the company’s physical sales revenue is greater than its labor service revenue

Yes □No

Industry Classification Project Unit 2025 2024 Year-on-year increase or decrease

Sales volume tons 16,067.32 18,104.61 -11.25% Raw material segment Production volume tons 17,130.68 20,100.60 -14.78% Inventory volume tons 7,123.05 6,059.68 17.55%

Sales volume is reduced to the smallest unit (10,000 tubes, 10,000 bottles, 10,000 tablets, 10,000 bags) 881,594.87 908,227.65 -2.93% Preparation segment Production volume is reduced to the smallest unit (10,000 tubes, 10,000 bottles, 10,000 tablets, 10,000 bags) 830,266.15 873,876.95 -4.99%

Inventory quantity reduced to the smallest unit (10,000 pieces, 10,000 bottles, 10,000 capsules, 10,000 bags) 69,992.17 121,683.95 -42.48% Explanation of reasons for changes in relevant data by more than 30% year-on-year

Applicable □Not applicable

The inventory of preparations segment has changed by more than 30% year-on-year, indicating that the sales volume of vitamin C tablets and acetaminophen tablets is greater than the production volume.

(4) Performance of major sales contracts and major purchase contracts signed by the company as of this reporting period

□Applicable Not applicable

(5) Composition of operating costs

Product classification

Unit: Yuan 2025 2024

Product Category Items % of operating costs % of operating costs Year-on-year increase/decrease amount Amount

specific gravity

Sales of raw materials Direct materials 519,738,253.93 54.92% 580,957,213.43 53.60% -10.54% Sales of raw materials Direct labor 90,133,610.22 9.52% 101,237,114.35 9.34% -10.97% Sales of preparations Direct materials 803,471,634.35 67.31% 918,006,258.20 70.97% -12.48% Sales of preparations Direct labor 93,043,503.81 7.80% 103,367,456.25 7.99% -9.99% Explanation

Note: The cost amount and its proportion are before offset.

(6) Whether there are changes in the scope of consolidation during the reporting period

Yes □No

Cancel liquidation subsidiary this year

Unit: Yuan

Company name Reduction method Reduction time Net assets on the date of disposal Net profit from the beginning of the period to the date of disposal Jilin Haiaosi Industrial Co., Ltd. Cancellation 2025-8-14 0.00 -6,724.87

(7) Significant changes or adjustments to the company’s business, products or services during the reporting period

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(8) Major sales customers and major suppliers

The company’s main sales customers

The total sales amount of the top five customers (yuan) 585,060,875.86 The total sales amount of the top five customers accounts for the proportion of the total annual sales 8.27% The sales volume of the top five customers accounts for the proportion of the sales of related parties to the total annual sales 2.06% Information of the company's top five customers

Serial number Customer name Sales volume (yuan) Proportion of total annual sales 1 Sinopharm Holdings Co., Ltd. 177,970,410.73 2.52% 2 Yingkou Fangda Hospital Co., Ltd. 145,686,132.38 2.06% 3 Sinopharm Group Pharmaceutical Co., Ltd. 130,293,357.24 1.84% 4 FNF INGREDIENTS USA INC 67,120,191.00 0.95% 5 Liaoning Cancer Hospital 63,990,784.51 0.90%

Total -- 585,060,875.86 8.27% Other information about major customers

□Applicable Not applicable

The company’s main suppliers

The total purchase amount of the top five suppliers (yuan) 603,196,139.09 The total purchase amount of the top five suppliers accounts for the proportion of the total annual purchases 13.97% The purchase amount of the top five suppliers accounts for the proportion of the related party purchases in the total annual purchases 0.00% Information of the company's top five suppliers

Serial number Supplier name Purchase amount (yuan) Proportion of total annual purchase 1 NCPC HONG KONG COMPANY LIMITED 177,078,673.70 4.10% 2 Novo Nordisk (China) Pharmaceutical Co., Ltd. 128,483,670.43 2.98% 3 Beijing Novartis Pharmaceutical Co., Ltd. 109,603,418.14 2.54% 4 State Grid Liaoning Electric Power Co., Ltd. Shenyang Power Supply Company 103,495,826.73 2.40% 5 Tianjin Tasly Pharmaceutical Commercial Co., Ltd. 84,534,550.09 1.96%

Total -- 603,196,139.09 13.97% Other information about major suppliers

□Applicable Not applicable

During the reporting period, the company’s trading business revenue accounted for more than 10% of its operating revenue.

Applicable □Not applicable

Information on the company’s top 5 customers in the trading business

Serial number Customer name Sales volume (yuan)

1 Yingkou Fangda Hospital Co., Ltd. 145,686,132.38 2 FNF INGREDIENTS USA INC 67,120,191.00 3 Liaoning Provincial Cancer Hospital 63,990,784.51 4 CHEMMART LLC 58,520,675.43 5 Liaoning Zhenghang Pharmaceutical Co., Ltd. 57,712,768.23

Total -- 393,030,551.55 Information on the company's top 5 suppliers in the trading business

Serial number Supplier name Purchase amount (yuan)

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

1 NCPC HONG KONG COMPANY LIMITED 177,078,673.70 2 Novo Nordisk (China) Pharmaceutical Co., Ltd. 128,483,670.43 3 Beijing Novartis Pharmaceutical Co., Ltd. 109,603,418.14 4 Tianjin Tasly Pharmaceutical Commercial Co., Ltd. 84,534,550.09 5 Sino-US Tianjin SmithKline Pharmaceutical Co., Ltd. 61,505,543.03

Total -- 561,205,855.39

Cost

Unit: Yuan

2025 2024 Year-on-year increase or decrease Explanation of major changes

Selling expenses 1,264,523,861.68 1,381,892,380.61 -8.49%

Management expenses 702,328,686.07 741,452,499.90 -5.28%

Mainly affected by the decrease in interest income and exchange financial expenses 17,716,018.28 -26,219,084.12 167.57%

loss impact.

Mainly due to the company’s increased investment in R&D, R&D expenses 172,266,427.48 117,763,982.51 46.28%

R&D expenses increased accordingly.

R&D investment

Applicable □Not applicable

Main R&D project name Project purpose Project progress To be achieved Estimated impact on the company's future development Levetiracetam extended-release tablets Add the company's new generic drug products Replenishment research Drug registration approval Supplement the company's nervous system drug levocarnitine oral solution Add the company's new generic drug products Replenishment research Drug registration approval Supplement the company's cardiovascular system drug efavirenz Add the company's new generic drug product Replenishment research Registration number "A" Supplement the company's anti-AIDS drug berberine hydrochloride tablets. Add the company's new generic drug products. Prepare for communication and exchange meetings. Drug registration approval documents. Supplement the company's anti-diabetic and lipid-lowering drug berberine hydrochloride sustained-release capsules. Add the company's new generic drug products. Prepare for communication and exchange meetings. Drug registration approval documents. Supplement the company's anti-diabetic drug pregabalin capsules. Add the company's new generic drug products. Registration application. Drug registration approval document. Supplement the company's analgesic drug ritonavir. Add the company's new generic drug products. Registration application. Registration number “A” Supplements the company’s anti-AIDS drug elagolix sodium and adds the company’s new generic drug product Registration application Registration number “A” Supplements the company’s reproductive system drug dolutegravir sodium Adds the company’s new generic drug product Registration application Registration number “A” Supplements the company’s anti-AIDS drug empagliflozin tablets Adds the company’s new generic drug product Registration application Drug registration approval document Supplements the company’s anti-diabetic drug efavirenz tablets

Add the company's new generic drug products, registration application, drug registration approval document, supplement the company's anti-AIDS drug (200mg)

Dolutegravir Sodium Tablets Add the company’s new generic drug products Registration application Drug registration approval document Supplement the company’s anti-AIDS drugs and strive to achieve the core

Obtained from the National Drug Administration

Breakthrough for tumors

Indications are pancreatic cancer and colorectal cancer. Approved and issued by the Supervision and Administration Bureau

DCTY1102 injection provides patients with a higher supplement to the company's "Drug Clinical Trials" in the field of biotherapy for cancer, etc.

effective treatment

Approval Notice》

case.

Already in May 2023

Obtained orphan drug by US FDA

Strive to achieve the core

Qualification certification; completed

Breakthrough for tumors

September 29, 2025

The indication of DCTY0801 injection is for patients with brain glioblastoma, which provides higher supplementary drugs in the field of biotherapy of the company and has obtained national drug supervision.

effective treatment

Approved and issued by the Administration

case.

"Drug Clinical Trial Approval"

"Approval Notice"

Company R&D personnel

2025 2024 Change ratio

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Number of R&D personnel (people) 855 779 9.76% Number of R&D personnel Proportion 14.93% 13.06% 1.87% Educational structure of R&D personnel

Bachelor's degree (person) 434 424 2.36% Master's degree (person) 182 109 66.97% Doctoral degree (person) 32 20 60.00% College degree and below (person) 209 226 -7.52% Age composition of R&D personnel

Under 30 years old (person) 106 59 79.66% 30-40 years old (person) 440 415 6.02% Over 40 years old (person) 309 305 1.31% Company R&D investment

2025 2024 Change ratio

Amount of R&D investment (yuan) 206,217,827.53 148,896,820.21 38.50% R&D investment as a proportion of operating income 2.91% 1.98% 0.93% Amount of capitalized R&D investment

33,951,400.05 31,132,837.70 9.05% (yuan)

Capitalized R&D investment as a share of R&D investment

16.46% 20.91% -4.45% ratio

The reasons and impacts of major changes in the company's R&D personnel composition

Applicable □Not applicable

In 2025, the company's R&D personnel will increase by 76, a year-on-year increase of 9.76%. At the same time, the number of PhDs, masters, and people under 30 years old among R&D personnel will increase by 66.97%, 60.00%, and 79.66% respectively year-on-year. The main reason is that the company will recruit 106 graduate R&D personnel with master's and doctorate degrees in 2025 to supplement the R&D personnel of biological drugs and chemical drugs and optimize the personnel structure.

Reasons for the significant change in the proportion of total R&D investment in operating income compared with the previous year

□Applicable Not applicable

Reasons for significant changes in R&D investment capitalization rates and their rationale

□Applicable Not applicable

Cash flow

Unit: Yuan

Item 2025 2024 Year-on-year increase or decrease, subtotal of cash inflows from operating activities 7,350,689,141.82 7,590,590,675.66 -3.16% Subtotal of cash outflows from operating activities 6,244,306,660.55 6,831,829,554.45 -8.60% Net cash flow from operating activities 1,106,382,481.27 758,761,121.21 45.81% Subtotal cash inflow from investing activities 58,711,604.97 2,702,990.00 2,072.10% Subtotal cash outflow from investing activities 148,078,225.26 286,669,503.77 -48.35% Net cash flow generated from investing activities -89,366,620.29 -283,966,513.77 68.53% Subtotal cash inflow from financing activities 6,513,727,000.00 15,018,258,631.88 -56.63% Subtotal cash outflow from financing activities 6,752,676,934.10 16,171,696,517.33 -58.24% Net cash flow generated from financing activities -238,949,934.10 -1,153,437,885.45 79.28%

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Net increase in cash and cash equivalents 754,255,504.00 -668,964,478.27 212.75% Explanation of the main factors affecting significant year-on-year changes in relevant data

Applicable □Not applicable

The net cash flow generated from operating activities was RMB 1,106.3825 million, an increase of RMB 347.6214 million over the same period last year, mainly due to the relative decrease in operating expenses this year.

The net cash flow generated from investing activities was -89.3666 million yuan, an increase of 194.5999 million yuan over the same period last year, which was mainly affected by the large expenditure on acquiring subsidiaries last year.

The net cash flow generated from financing activities was -238.9499 million yuan, an increase of 914.488 million yuan over the same period last year, mainly due to the greater impact of the previous year's repayment of due loans.

Explanation of the reasons for the significant difference between the company's net cash flow generated from operating activities during the reporting period and the current year's net profit

□Applicable Not applicable

5. Analysis of non-main business

□Applicable Not applicable

6. Analysis of assets and liabilities

Major changes in asset composition

Unit: Yuan End of 2025 Early 2025

Increase or decrease in proportion of total assets Increase or decrease in proportion of total assets Explanation of significant changes Amount

Proportion Proportion of production

Monetary funds 3,601,754,773.77 27.94% 4,468,332,416.81 30.93% -2.99% Accounts receivable 1,732,901,284.52 13.44% 1,959,029,870.69 13.56% -0.12% Contract assets 5,307,083.08 0.04% 807,489.23 0.01% 0.03% Inventory 1,181,565,317.16 9.17% 1,323,826,723.69 9.16% 0.01% Long-term equity investment 4,730,908.12 0.04% 6,127,595.39 0.04% 0.00% Fixed assets 3,488,511,658.10 27.07% 3,853,775,267.88 26.68% 0.39% Construction in progress 99,108,588.14 0.77% 155,476,187.39 1.08% -0.31% Right-of-use assets 42,667,221.78 0.33% 54,642,267.12 0.38% -0.05% Short-term borrowings 1,891,780,154.51 14.68% 1,542,200,000.00 10.68% 4.00% Contract liabilities 87,902,786.02 0.68% 104,806,624.47 0.73% -0.05% Long-term borrowings 154,600,000.00 1.20% 1.20% Lease liabilities 19,815,002.59 0.15% 30,137,899.30 0.21% -0.06% Overseas assets account for a high proportion

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Assets and liabilities measured at fair value

Applicable □Not applicable

Unit: Yuan included in equity

Current period’s cumulative fair value for the period. Provision for other items. Beginning amount. Accrual amount. Purchase amount for the period. Sales amount for the period. Closing amount. Changes in gains and losses. Decrease in fair value.

Value Momentum change

financial assets

Transactional

financial assets

(Excluding derivatives 0.00 2,862,491.39 50,293,508.78 53,156,000.17 0.00 Financial financing

production)

Derivatives

0.00 350,622.31 350,622.31Financing assets

Other debts

equity investment

Other rights

profit tool investment

capital

Other non-

mobile finance

assets

financial assets

Subtotal

investment property

real estate

productive life

physical assets

Others

Total of the above 0.00 350,622.31 350,622.31 Financial liabilities 0.00 0.00 Other changes

Whether there are any significant changes in the measurement attributes of the company's main assets during the reporting period Yes  No

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Restrictions on asset rights as of the end of the reporting period

End of term

Project

Book balance (yuan) Book value (yuan) Restriction type Restriction situation Monetary funds 749,507,665.83 749,507,665.83 Guarantee, pledge, freeze Deposit, legal action notes receivable 195,023,553.29 195,023,553.29 Pledge Business accounts receivable that have not yet expired 0 0

Total 944,531,219.12 944,531,219.12

7. Investment status analysis

Overall situation

Applicable □Not applicable

Investment amount during the reporting period (yuan) Investment amount during the same period last year (yuan) Change range

134,020,928.48 193,282,087.67 -30.66%

Major equity investments obtained during the reporting period

□Applicable Not applicable

Major non-equity investments ongoing during the reporting period

□Applicable Not applicable

Financial asset investment

(1) Securities investment situation

Applicable □Not applicable

Unit: Yuan included

Equity in this period

Initial Accounting Beginning of Period Fair Accumulation Current Period Current Period Report End of Period Accounting Securities Securities Securities Funds

Investment Measurement Book Value Accounting Purchase Sale Period Loss Book Accounting Type Code Abbreviation Source Cost Mode Value Change Fair Price Amount Amount Loss Value Account Profit and Loss Value Change

move

Trading Treasury Bonds Treasury Bonds 131,0 Fair 131,0 131,0

4,505 Xingjin Owned Others Reversal Reversal 85,31 Value 0.00 0.00 0.00 85,31 89,81 0.00

.70 Financing Fund Purchase 0.80 Measurement 0.80 6.50

Overseas domestic shares Overseas domestic shares Overseas domestic shares 5 80 , 22 38 4 Fair value 0.00 0.00 0.00 5 80 , 22 38 4 5 23 , 21 78 4 2 , 08 49 04 . 0.00 Sex Yijin Self-funded Money

Financing

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Ticket Ticket Ticket .04 Measurement .04 .68 64 Production

Other securities investments held at the end of the period

0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- -- capital

181,3 181,3 184,2 2,898

Total 73,54 -- 0.00 0.00 0.00 73,54 72,09 ,546. 0.00 -- --

4.84 4.84 1.18 34

Securities Investment Approval Board of Directors

Not applicable

Report disclosure date

Securities Investment Approval Shareholders Meeting

Not applicable

Report disclosure date (if any)

(2) Derivatives investment situation

Applicable □Not applicable

Derivative investments for the purpose of hedging during the reporting period

Applicable □Not applicable

Unit: 10,000 yuan

Ending investment included in equity

The amount accounts for the cumulative public investment in public derivatives initial investment and fair value during the reporting period during the reporting period.

Amount at the beginning of the period Amount at the end of the period Type of capital reported by the company Amount Profit and loss from change in value Change in fair value Purchase amount Amount sold

Net assets at the end of the year

Proportion of foreign exchange swaps 0 0 35.06 0 0 0 0 0.00% Total 0 0 35.06 0 0 0 0 0.00% During the reporting period

Hedging

business meeting

planning policies,

Accounting

The specific original accounting principles are handled in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting", and "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments", and there are no significant changes compared to the previous reporting period.

with the previous report

Compared with the reporting period

does it happen

major changes

description

Reporting period actual

Actual profit and loss: Income from changes in fair value was RMB 350,622.31.

explanation of the situation

Hedging

During the reporting period, the company carried out foreign exchange hedging to hedge the risks of US dollar assets and exchange rate fluctuations, and did not engage in speculative transactions. The business has been locked and has no effect.

exchange rate, effectively offsetting exchange rate exposure risks.

Ming

Derivatives investment

Capital funds come from existing funds

source

The company's derivatives transactions during the reporting period are only used to hedge the risk of U.S. dollar exchange rate fluctuations, and speculative transactions are strictly prohibited. Market risks are mainly caused by sharp fluctuations in exchange rates and derivatives during the reporting period.

Floating profit and loss, liquidity risk stems from the obstruction of liquidation due to concentrated contract expiration, credit risk is bank performance risk, and operational risk mainly refers to personnel operations.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Legal risks related to mistakes in holding raw product positions, system failure risks, and policy changes. The company strictly controls the size of its positions and selects high-liquidity contracts and state-owned banks as risk-based counterparties; it implements the separation and hierarchical approval of trading, risk control, and financial positions, reviews transaction agreements for compliance, and pays close attention to regulatory policy adjustments. Analysis and control during the reporting period: The position derivatives have locked the closing exchange rate, so there is no risk mentioned above, and it has not had any adverse impact on the operating results. Description of measures

(Including but

Not limited to city

market risk,

liquidity wind

insurance, credit

risk, risk

risk,

legal risks

etc.)

Invested in derivatives

Product report

Market during the period

price or product

fair value

value changes

situation, yes

During the reporting period, an income of RMB 350,622.31 occurred from changes in fair value. The changes in the fair value of derivatives were based on the delivery exchange rate agreed in the contract and the actual derivatives fair value of the bank.

differences in international exchange rates. of fair value

The analysis should be

Reveal specific details

method used

and related leave

Assume and parameters

settings

Litigation situations

(If applicable Not applicable

use)

Derivative investments for speculative purposes during the reporting period

□Applicable Not applicable

There were no derivative investments for speculative purposes during the reporting period.

Major asset and equity sales
Sale of major assets

□Applicable Not applicable

The company did not sell any major assets during the reporting period.

Sale of major equity interests

□Applicable Not applicable

Analysis of major holding and joint stock companies

Applicable □Not applicable

Information about major subsidiaries and joint-stock companies that affect the company's net profit by more than 10%

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Unit: Yuan

Company name Company type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit Northeast Pharmaceutical

Group Shenyang 80,000,00 4,243,200 1,432,087 2,508,724 158,917,3 112,058,5

Subsidiary pharmaceutical production

Daiichi Pharmaceutical 0.00,270.21,891.56,399.36 65.90 86.96 Co., Ltd.

Northeast Pharmaceutical

- (Shanghai) Biopharmaceutical R&D 500,000,0 138,843,2 89,649,41

Subsidiaries 3,207.56 28,113,74 26,721,81 Biotech Co., Ltd. and production 00.00 20.71 5.02

1.26 4.18 Co., Ltd.

Beijing Dingcheng

- - Peptide Biotechnology Drug R&D 54,540,49 40,325,37 223,815.8

Subsidiaries 522,758,8 113,391,0 113,578,7 Technology Co., Ltd. and production 5.00 1.97 5

69.36 65.24 66.13Company

Acquisition and disposal of subsidiaries during the reporting period

Applicable □Not applicable

Company name Method of acquiring and disposing of subsidiaries during the reporting period Impact on overall production operations and performance Jilin Haiaosi Industrial Co., Ltd. Cancellation No significant impact.

Description of major holding and joint-stock companies

10. Structured entities controlled by the company

□Applicable Not applicable

11. Prospects for the company’s future development

2026 is the first year of the "15th Five-Year Plan". It is also an important year for Northeast Pharmaceutical to continue to deepen reforms and accelerate high-quality development. It is also the first year for the company to implement the "One Body, Two Wings" strategy (one body: to improve and strengthen chemical generics; two wings: one is biomedicine, and the other is general health products and traditional Chinese medicine). Doing a good job in various tasks is of great responsibility and significance, and it also puts forward new and higher requirements for all employees of the company.

(1) Seize opportunities, innovate and make breakthroughs, and comprehensively enhance market competitiveness

The core task of preparation sales is to improve the quality and quantity of terminals, with the "three types of terminals" as an important starting point, and coordinate the promotion of incremental profit-increasing plans for key products such as the Zhengchangsheng series, Zorka series, fosfomycin series, and VC series, comprehensively enhance the breadth of product coverage in terminals, and further enhance the profitability of leading varieties. At the same time, we will increase the marketing efforts of new products, cosmetics and food, accelerate market introduction and scale expansion, and promote the rapid formation of incremental support for new business segments. Continue to strengthen expense management, refine expense policies and implementation standards, improve expense utilization efficiency, optimize operating processes, and comprehensively improve overall operational quality and market competitiveness.

Raw material sales will coordinate the promotion of scale growth and efficiency improvement, consolidate and expand product market share, and provide solid support for the stable operation of the production system. Focusing on key products such as levocarnitine series, piracetam, and berberine hydrochloride, we will continue to deepen market planning and promotion and accelerate the cultivation of new growth points; actively expand end customer resources and optimize customer structure; focus on promoting vitamin C, levocarnitine, piracetam, phosphorus

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Marketing and sales of 4 CEP products including Mycin and Tromethamine. It is necessary to continue to strengthen project execution capabilities and resource integration capabilities to achieve strong growth in revenue and efficiency; it is necessary to actively expand potential markets such as South America, Africa and Southeast Asia, and promote the rapid formation of large-scale increments in preparation export business.

(2) Think long and hard, expand the market, and make every effort to build the brand reputation of the subsidiary

Supply and marketing companies should continue to deepen cooperation with key customers, strengthen new product introduction and new customer development, continuously consolidate channel foundation and market layout, increase pure terminal sales scale, and comprehensively promote the introduction and promotion of device business and various diagnostic reagents. Vigorously promote refined management and improve operational quality and resource utilization efficiency. Further strengthen the penetrating management of subsidiaries and improve the standardization and profitability of subsidiaries' operations. Northeastern pharmacies should focus on "improving quality, efficiency, and scale" and taking the opportunity of external strategic cooperation to comprehensively coordinate and promote key tasks such as operations, sales, and channels, optimize product structure, strengthen inventory guarantee, improve operational quality through full-chain closed-loop management, seize opportunities for online and offline integration of pharmaceutical retail, promote an increase in the proportion of O2O sales, and comprehensively improve profitability.

(3) Deeply tap potential, reduce costs and increase efficiency, and build a solid foundation for production and supply with high quality

The company must coordinate sales plans and reserve arrangements for key varieties, strengthen the foresight, accuracy and seriousness of production plans, improve advance planning and dynamic response mechanisms, maintain efficient coordination of sales, supply and production, and ensure that production operations match market demand. Under the premise of strictly adhering to the bottom line of safety, environmental protection and quality, taking product cost reduction as the core management and control goal, using process technology upgrade as the starting point, we will continue to promote process cost reduction projects, deeply explore the potential of process optimization, accurately control key process parameters, build a solid foundation for cost reduction with technological empowerment, continue to deepen refined management, innovatively build comparative analysis templates, and form a long-term control mechanism; strengthen the construction of energy management systems, comprehensively penetrate all links of energy production, supply, and use, and improve energy utilization efficiency and refinement of management.

Procurement work must focus on "guaranteing supply, optimizing resources, and controlling risks" from a strategic perspective, establishing a regular communication mechanism, accurately connecting supply and demand, dynamically optimizing inventory, and reducing backlog and capital occupation risks. We will increase efforts to introduce new suppliers, break down price barriers, and use the development of new resources as a strong support for cost reduction and efficiency creation. Deepen market research and judgment, timely analyze industry trends and price fluctuations, and provide professional support for company decision-making.

Consolidate the foundation of safety management, consolidate the main responsibilities of safety production, closely combine the characteristics of job production and safety management and control requirements, continue to strengthen the construction of safety production infrastructure, deeply ingrain the awareness of safety red lines into the minds of all employees, realize the dual transformation from "post-processing" to "pre-prevention", and from "accident management" to "hidden hazard investigation and management + risk-level management and control", and build a new safety management pattern of advanced prevention and control and proactive prevention.

Actively respond to the national "double carbon" strategic deployment, implement the concept of green development, and further improve the level of environmental protection management with firmer determination and pragmatic and powerful actions. Focus on key directions such as source control, pollutant emission reduction, hazardous waste resource utilization, process optimization and upgrading, and promotion and application of new materials to deeply explore potential and achieve a two-way win-win situation of emission reduction, cost saving and governance compliance.

Deepen the construction of quality culture and strive to achieve the management and control goals of "improving management levels, adhering to legal red lines, strictly controlling quality, and assisting production and operations", strengthening quality supervision and online inspections throughout the production process, using artificial intelligence technology to deepen quality trend analysis and risk warnings, accurately identifying potential hazards, and preventing and defusing risks in advance.

We will continue to strengthen basic equipment management, focusing on service production and ensuring operation, and effectively control costs. Strengthen regular supervision, promote standardization and standardization of management processes, and improve the overall efficiency of equipment management. Strongly encourage small reforms and repair old ones to reuse them, and tap into internal cost reduction potential;

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

We will increase efforts in localization substitution, expand the layout of technological innovation projects, and promote equipment management to make steady progress in a more efficient, economical, and smarter direction.

(4) Focus on frontiers, coordinate research and production, and continue to cultivate the resilience of enterprise development

Product innovation and technology research and development are the core driving forces to promote the implementation of the company's strategic goals. Research and development work must be carried out with a high position and high standards, focusing on the frontier areas of pharmaceutical research and development and the advantageous treatment areas of generic drugs, studying and judging industry development trends, exploring needs and industry opportunities in the health field, and continuing to replenish the research and development pipeline to form a good trend of steady growth in the number of new product approvals. Strengthen R&D project management, shorten the R&D cycle, and accelerate the registration review process. Pay close attention to product economic indicators and consolidate the quality and cost basis for production transformation. Deepen the construction of the market research system, explore varieties with market potential, enrich the research and development of new pharmaceutical products, layout traditional Chinese medicine varieties, explore innovative preparations and new dosage form projects, constantly improve the R&D project reserve pool mechanism, and form a virtuous cycle of "research, reserve, R&D, and transformation".

The company will focus on the strategic plan for the development of innovative drugs, coordinate all work, continue to efficiently promote key research projects, promote innovative drugs to participate in international multi-center clinical research and overseas licensing cooperation, accelerate the internationalization process of innovative drugs, expand and enrich the R&D pipeline of antibodies and ADC drugs, proactively deploy next-generation technology platforms, and build differentiated competitive advantages.

Dingcheng Peptide Source, a subsidiary of the company, will continue to promote its layout from three major dimensions. The first is to accelerate technology iteration and pipeline expansion, and upgrade immune cell therapy. The second is to build an intelligent production system and build a fully enclosed automated cell preparation platform. The third is to speed up the clinical trials and commercialization process. At the same time, Dingcheng Peptide Source will focus on accelerating product research and development, and simultaneously strictly control risks in research and development, market competition, policies, regulations, and finance. Through refined R&D management, keeping a close eye on industry trends, strengthening regulatory communication, and optimizing financial control to ensure stable operations, Dingcheng Peptide Source will continue to deepen the research and development of TCR-T, CAR-T products, and TCR protein drugs.

(5) Intensive management, strengthening collaboration, and effectively seeking benefits from efficient management

Focusing on the company's strategic development direction, we will continue to increase the introduction of high-end talents in key areas and focus on high-quality R&D teams with core technical capabilities to accumulate momentum for the company's long-term development. Continue to improve the performance appraisal system, be performance-oriented, and strengthen the "baton" role of appraisal.

We will continue to deepen the management and control of risk funds, implement the unified management of accounts receivable policy approval, overdue warning and assessment, and ensure the timely return of funds. We will continue to strengthen system construction and process management, improve the cost and expense assessment system, and promote financial management and control towards refinement, standardization and closed-loop.

Adhere to the strategy of "innovation-driven, digital intelligence empowerment, and green transformation" and focus on the intelligent upgrading of the company's entire value chain. Upgrade the privatized computing center to promote the deep integration of AI technology into all aspects of R&D, production, and marketing to release the core value of data; deepen the construction of intelligent management systems for key processes; improve the "talent training + innovative application" mechanism to accelerate the transformation and implementation of innovative results.

Focus on key business areas such as engineering, procurement, and sales, give full play to the supervision and guarantee role of auditing and supervision, strengthen the supervision of the entire process of contracts before, during and after the event, and realize the identification and pre-emptive prevention and control of legal risk sources. Closely track national laws and regulations, industry policies and regulatory developments, conduct compliance assessments and strategic adjustments in a timely manner, and provide solid legal support and decision-making guarantee for the company's business innovation, market expansion and strategic layout.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(6) Party building leads and unites efforts to provide a strong guarantee for high-quality development

The company must adhere to the guidance of party building, conscientiously study and implement the spirit of the 20th National Congress of the Party and the 20th Plenary Session of the Party, adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, constantly strengthen theoretical arming, always take the Party's flag as the banner, the Party's will as the will, and the Party's mission as the mission, and always We must maintain a high degree of consistency with the Party Central Committee with Comrade Xi Jinping as the core in terms of ideology, politics, and actions, fully implement the work requirements of "deep, practical, detailed, accurate, and effective" and "change, work, and practice" to further emancipate the mind, deepen reforms, and continuously transform theoretical learning results into a powerful force for entrepreneurship.

Closely follow the enterprise development center to carry out situational task education, and build a hierarchical and classified, accurate and efficient publicity and propaganda system around industry development trends, market competition situation, and enterprise reform requirements, carry out target propaganda and responsibility transmission on a regular basis, further condense the ideological consensus of "high-quality development, leapfrog improvement", and strengthen all employees' awareness of opportunities, innovation, responsibility, and gratitude. We will deepen the promotion of the selection of advanced models and continue to create a strong atmosphere of "hard work and striving to be the first". Give full play to the role of the "four long-term mechanisms" of party member projects, party member commandos, party member vanguard posts, and party member responsibility areas to empower production and operations.

(7) Risk factors faced by the company and countermeasures

Industry policy risks

With the continuous advancement of medical reform, the country attaches increasing importance to drug quality and safety. At the same time, the state's requirements for the consistency evaluation of generic drugs have continued to increase, which has greatly affected the production and sales of some generic drug companies. Changes in medical insurance policies such as adjustments to medical insurance payment standards and updates to the medical insurance catalog also have an impact on the sales prices and market demand of drugs.

Response measures: In response to changes in these industry policies, the company actively adjusted its strategic direction and optimized its product structure. On the one hand, it increases investment in the research and development of innovative drugs, adheres to the "double innovation" drive of generic drugs and innovative drugs, and improves the technical content and added value of products; on the other hand, it follows the medical reform process, adjusts sales channels in a timely manner, attaches great importance to marketing innovation, and enhances product competitiveness and brand awareness. At the same time, we should keep abreast of changes in industry policies, conduct in-depth analysis of policies, strengthen supervision of all aspects of drug research and development, production, and sales, rationally plan product research and development, production, and sales strategies, and reduce the impact of policy risks on the company's operations.

Price competition risk

In December 2018, the national drug centralized procurement pilot policy was first implemented in the "4+7" cities. So far, eleven batches of national centralized procurement have been organized, including a total of 490 kinds of drugs, with an average reduction of more than 50%. As the national centralized procurement rules gradually mature, various localities are accelerating the coverage of volume procurement in the form of provinces and provincial alliances, and continue to expand the varieties included. As the scope of centralized procurement continues to expand and varieties increase, new varieties and renewed varieties have experienced price drops to varying degrees, and market competition has further intensified.

Countermeasures: Focus on improving pure product sales as the core task and promote the development of the overall industrial chain. Seize the opportunity to seize market share, increase product awareness in the end market, expand the coverage of medical institutions, promote sales growth of new products, and achieve significant increases in performance. Accurately study and judge market dynamics, continue to optimize the sales product structure, actively explore emerging markets, deeply tap the potential of international markets, and plan new market opportunities and growth points.

Innovation and R&D risks

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The pharmaceutical industry is a technology-intensive industry, and innovative research and development is the core driving force for the sustainable development of enterprises. In recent years, the state has introduced many encouraging policies to promote the innovative development of the industry. With the rapid development of technologies such as genetic engineering and biopharmaceuticals, as well as the widespread application of artificial intelligence, big data and other technologies, the pharmaceutical industry has ushered in new development opportunities. However, homogeneous competition in innovation and R&D is serious, with high investment, long cycle, and high risk of failure.

Countermeasures: Focus on the cutting-edge areas of bio-innovative drugs and advantageous areas of generic drugs, integrate the company's internal and external resources through independent research and development, cooperative development and other methods, continue to enrich the research and development pipeline, and strive to accelerate the transformation and implementation of research and development results to inject new momentum into performance growth. At the same time, we will strengthen the node management and monitoring of R&D projects, optimize the R&D process, improve R&D quality management, and improve the R&D success rate. The company will continue to increase investment in research and development and actively promote cell therapy products and key projects.

Safety and environmental risks

The pharmaceutical industry is one of the polluting industries, and the continuous tightening of environmental protection policies may cause companies to face higher environmental protection investment and operating costs. As the requirements for the treatment of waste water, waste gas, and waste residues increase, companies need to update environmental protection equipment and improve production processes, which poses a severe test to the company's financial and technical strength.

Countermeasures: Focus on safety and environmental protection goals, do a good job in management, strengthen awareness, and implement main responsibilities. Strengthen safety management, strengthen hierarchical management and control of safety risks and investigation and management of hidden dangers, carry out safety training and emergency drills, and continue to improve employees' safety awareness and quality. Further improve environmental protection work, control three wastes, investigate soil and groundwater, ensure discharge standards are met, strictly manage the operation and maintenance of online equipment, and tap into potential from source control, pollutant emission reduction, hazardous waste reuse, process optimization, new material application, etc., to achieve a win-win situation of emission reduction, cost saving and governance compliance.

12. Receive research, communication, interviews and other activities during the reporting period

Applicable □Not applicable

The main topic of discussion

Basic information of the survey: reception time, reception location, reception method, type of reception objects, reception objects, content and information provided.

condition index information

Regarding the company’s production experience

January 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on 03rd

communication

Regarding the company’s production experience

January 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on 06th

communication

Regarding the company’s production experience

February 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on 05th

communication

Regarding the company’s production experience

February 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable for 10 days

communication

Regarding the company’s production experience

March 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on 05th

communication

Regarding the company’s production experience

March 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 12th

communication

In March 2025, the network platform is online. For details about the company’s market location, please refer to the company’s

Company Institutional Investment

20th Exchange Bit and Subsidiary Ding The full text of the 2025 Annual Report of Northeast Pharmaceutical Group Co., Ltd. in March 2025

The research and development of peptide sources disclosed on the 20th and other information are included in the "Investor Relations Activity Record Form of Northeast Pharmaceutical Group Co., Ltd." (No. 2025-001)

For details, please see the company at

Regarding the company's future development in March 2025, the development and subsidiary Ding disclosed on the 21st "Northeast Pharmaceutical Collection March 2025 Network Platform Online

Company Institutional Institutional Investment Chengduyuan’s Core Tuan Co., Ltd. 21st Exchange

Competitiveness and other contents, communicate with the company’s investor relations activity record sheet” (No. 2025- 002)

For details, please see the company at

Regarding the company's digital transformation and subsidiaries disclosed on the 24th in March 2025, "Northeast Pharmaceutical Collection March 2025 Network Platform Online

Company Institution Institutional Investment Dingcheng Peptide Source’s Competition Group Co., Ltd. 24th Exchange

Competing for advantages and other contents, communicate with the company’s investor relations activity record sheet” (No. 2025- 003)

For details, please see the company at

In March 2025, regarding the company's marketing system, the construction and subsidiary companies disclosed on the 25th "Northeast Pharmaceutical Group March 2025 Network Platform Online

Company Institution Institutional Investment Si Ding Cheng Peptide Source Group Co., Ltd. 25th Exchange

Product features and other contents are communicated with the company’s investor relations activity record sheet” (No. 2025-

004)

Regarding the company’s production experience

April 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

03rd

communication

Regarding the company’s production experience

April 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

17th

communication

Regarding the company’s production experience

May 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

14th

communication

Regarding the company’s production experience

May 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

19th

communication

Regarding the company’s production experience

June 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

06th

communication

Regarding the company’s production experience

June 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

11th

communication

Regarding the company’s production experience

July 2025

Company Telephone communication Individual Individual investor Communicate about business situation Not applicable

02nd

communication

July 2025 Regarding the company’s production experience

Company Telephone communication Individual Individual investor Not applicable

On the 15th, the camp situation was communicated.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

communication

Regarding the company’s production experience in August 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable 08 days

communication

Regarding the company’s production experience in August 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 19th

communication

Regarding the company’s production experience in September 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on 03rd

communication

Regarding the company’s production experience in September 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 12th

communication

Regarding the company’s production performance in October 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 15th

communication

Regarding the company’s production performance in October 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 22nd

communication

Regarding the company’s production experience in November 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable for 10 days

communication

Regarding the company’s production experience in November 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 14th

communication

Regarding the company’s production experience in December 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable 08 days

communication

Regarding the company’s production experience in December 2025

Company Telephone communication Individual Individual investor Communicate on business situation Not applicable on the 27th

communication

13. Formulation and implementation of market value management system and valuation improvement plan

Whether the company has formulated a market value management system.

□Yes No

Whether the company has disclosed plans to increase its valuation.

□Yes No

14. Implementation of the “Double Improvement of Quality and Return” action plan

Has the company disclosed an announcement on the “Dual Improvement of Quality and Return” action plan?

□Yes No

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 4 Corporate Governance, Environment and Society

1. Basic situation of corporate governance

During the reporting period, the company strictly complied with the requirements of relevant laws, regulations and normative documents such as the Company Law, Securities Law, Code of Governance of Listed Companies, and Shenzhen Stock Exchange Stock Listing Rules, and continuously improved the corporate governance structure and promoted the company's standardized operations. The company has a corporate governance structure with clear rights and responsibilities, effective checks and balances, scientific decision-making, and coordinated operations. The actual status of corporate governance complies with relevant laws, regulations, normative documents, and regulatory agency requirements.

(1) Shareholders and shareholders’ meeting

The shareholders' meeting is the company's highest authority, deciding on the company's operating policies and investment plans, and reviewing and approving the board of directors' report, the company's profit distribution plan, annual financial budget and final accounts plan, etc. The company strictly complies with the provisions of the Company Law, Articles of Association, and Rules of Procedure for Shareholders' Meetings to standardize the convening, convening and proceedings of shareholders' meetings. During the reporting period, the company held 1 annual shareholders' meeting and 2 extraordinary shareholders' meetings. The company provides all shareholders with on-site and online voting to participate in the shareholders' meeting, hires qualified lawyers to conduct on-site witnessing, and counts and discloses the votes of small and medium-sized investors separately, fully protecting the rights and interests of small and medium-sized investors. All shareholders' meeting resolutions were approved, and relevant announcements were promptly published in China Securities Journal, Securities Times, Shanghai Securities News and Juchao Information Network.

(2) Directors and Board of Directors

The board of directors is responsible for executing the resolutions of the shareholders' meeting, deciding on the company's business plans and investment plans, formulating the company's annual financial budget and final accounts, formulating the company's profit distribution plan, and other powers stipulated in laws, regulations or the Articles of Association and granted by the shareholders' meeting. The company currently has 11 directors, including 4 independent directors, accounting for more than 1/3 of all directors. The number and composition of the board of directors meet the requirements of laws, regulations and the Articles of Association. The company's board of directors has established a strategy committee, a nomination committee, an audit committee, and a remuneration and assessment committee. The members of the special committees are all directors, among which the independent directors of the Nomination Committee, Audit Committee, and Remuneration and Appraisal Committee account for the majority and serve as conveners. The convener of the Audit Committee is an accounting professional. The company strictly complies with the provisions and requirements of the Articles of Association and the Rules of Procedure of the Board of Directors to standardize the convening, convening and discussion procedures of the Board of Directors. During the reporting period, the company held a total of 14 board meetings. All resolutions of the board of directors were passed, and relevant announcements were promptly published in China Securities Journal, Securities Times, Shanghai Securities News and Juchao Information Network.

(3) Supervisors and Board of Supervisors

The main powers of the board of supervisors include reviewing the company's regular reports prepared by the board of directors and providing written review opinions, inspecting the company's finances, and supervising the performance of the company's duties by directors, general managers and other senior managers. During the reporting period, the company held a total of 8 meetings of the Board of Supervisors. In accordance with the provisions of laws and regulations, the Articles of Association and the Rules of Procedure of the Supervisory Board, the Company's Board of Supervisors conducts comprehensive supervision and verification on the company's standardized operations, business management, financial status, performance of senior management personnel and other aspects, and independently and effectively performs its duties to directors and senior management.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Supervising and inspecting the financial supervision and inspection of listed companies, safeguarding the legitimate rights and interests of the company and shareholders. All resolutions of the Supervisory Board meeting were approved, and relevant announcements were promptly published in China Securities Journal, Securities Times, Shanghai Securities News and Juchao Information Network. On December 15, 2025, the company held the second extraordinary shareholders' meeting of 2025, which reviewed and approved the "Proposal on Changing the Company's Registered Capital, Total Number of Shares, Abolition of the Board of Supervisors, and Amending the Articles of Association" and other matters. When the amendments to the "Articles of Association" came into effect, the company will no longer have a board of supervisors, and the Audit Committee of the Board of Directors will exercise the powers of the board of supervisors stipulated in the "Company Law."

(4) Incentive and restraint mechanism for senior managers and the company

During the reporting period, the company's senior managers abided by laws, regulations and the provisions of the Articles of Association, performed their duties faithfully, diligently and prudently, reported work to the board of directors regularly, and accepted the inspection and supervision of the board of directors; actively organized and implemented the board of directors' resolutions; continuously strengthened internal control, timely identified and systematically analyzed risks existing in business activities, and took corresponding measures to control risks to ensure the smooth implementation and orderly advancement of the company's various business plans. During the reporting period, the company implemented scientific and effective performance appraisal management methods, combining incentives and constraints, striving to stimulate the enthusiasm, initiative, creativity and stability of senior managers, and using effective remuneration policies to ensure and promote the realization of the company's business objectives and the improvement of benefits.

(5) The company, its controlling shareholders and their related parties

During the reporting period, the company maintained independence from the controlling shareholder and its related parties in terms of assets, personnel, finance, organization, business and other aspects. The board of directors and internal institutions operated independently, protecting the interests of the company and shareholders. The company's controlling shareholder complies with the relevant provisions of the "Code of Corporate Governance for Listed Companies", the "Shenzhen Stock Exchange Stock Listing Rules" and the "Articles of Association", exercises shareholder rights through the shareholders' meeting in accordance with the law, and does not directly or indirectly interfere with the company's decision-making and operating activities beyond the shareholders' meeting. There is no horizontal competition with the company, the controlling shareholder does not occupy the company's funds, and the company does not provide guarantees for the controlling shareholder.

(6) Maintenance of investor relations

The company attaches great importance to communication and exchanges with investors, and establishes contact with investors through various channels such as answering investor calls and responding to Shenzhen Stock Exchange’s interactive transactions. The company designates "China Securities Journal", "Securities Times" and "Shanghai Securities News" as paper media for information disclosure, and strictly follows relevant laws, regulations and company information disclosure regulations through the cninfo.com, treats all investors fairly, justly and openly, discloses information in a true, accurate, complete and timely manner to protect the legitimate rights and interests of all investors.

(7) Information disclosure and inside information management

In 2025, the company's board of directors strictly complied with the "Measures for the Administration of Information Disclosure of Listed Companies", "Supervisory Guidelines for Listed Companies No. 5 - Registration and Management System for Insiders of Listed Companies' Insider Information" and other regulations, disclosed regular reports and temporary announcements on time in accordance with the information disclosure format guidelines of the China Securities Regulatory Commission and the Shenzhen Stock Exchange and other relevant regulations on information disclosure, registered and reported insiders in accordance with the law, and fully protected the investors' right to know.

Whether there are major differences between the actual situation of corporate governance and the laws, administrative regulations and regulations on the governance of listed companies issued by the China Securities Regulatory Commission

□Yes No

Full text of the 2025 Annual Report of Northeast Pharmaceutical Group Co., Ltd. There is no major difference between the actual status of corporate governance and the laws, administrative regulations and regulations on the governance of listed companies issued by the China Securities Regulatory Commission.

The company’s independence from its controlling shareholders and actual controllers in ensuring the company’s assets, personnel, finance, organization, business, etc.

During the reporting period, the company had sufficient independence in terms of assets, personnel, finance, institutions, and business, and was strictly separated from its controlling shareholders and actual controllers. There was no reliance on controlling shareholders or actual controllers to carry out business or any overlap in personnel, assets, institutions, or finance.

3. Competition within the industry

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

4. Directors and senior managers

Basic situation

Increase this period Decrease this period

Other increases and decreases Shares increase Number of shares held at the beginning of the period Shares held Shares held Number of shares held at the end of the period Name Gender Age Position Position status Start date of term Term end date Changes Subtract changes (shares) Quantity Quantity (shares) (shares) Reasons for (shares) (shares)

Chairman Current January 21, 2025 April 23, 2028 4,220,100 0 0 0 4,220,100 Zhou Kai Male 61 Director Current November 29, 2020 April 23, 2028 0 0 0 0 0 General Manager Appointment and removal May 8, 2019 January 21, 2025 0 0 0 0 0

Director Current October 3, 2021 April 23, 2028 3,195,000 0 0 0 3,195,000 Guo Jianmin Male 54

Chairman Appointment and removal October 3, 2021 January 21, 2025 0 0 0 0 0 Huang Chengren Male 61 Director Incumbent July 18, 2018 April 23, 2028 3,220,100 0 0 0 3,220,100 Ao Xinhua Male 61 Director Incumbent July 18, 2018 April 23, 2028 3,220,100 0 0 0 3,220,100 Huang Zhihua Male 57 Director Current November 17, 2021 April 23, 2028 1,000,000 0 0 0 1,000,000

Director Incumbent June 20, 2025 April 23, 2028 0 0 0 0 0Cai Yonggang Male 45 General Manager Incumbent January 21, 2025 April 23, 2028 350,000 0 0 0 350,000

Deputy General Manager Appointment and removal October 28, 2024 January 21, 2025 0 0 0 0 0 Wang Xinpeng Male 61 Employee Representative Director Incumbent June 20, 2025 April 23, 2028 0 0 0 0 0 Liu Xingming Male 69 Independent Director Incumbent April 24, 2025 April 23, 2028 0 0 0 0 0Huang Yongwei Male 62 Independent Director Current April 24, 2025 April 23, 2028 0 0 0 0 0Ma Haitian Male 45 Independent Director Current April 24, 2025 April 23, 2028 0 0 0 0 0Cao Yue Male 44 Independent Director Current June 20, 2025 April 23, 2028 0 0 0 0 0 Liu Yan Male 61 Deputy General Manager Current December 23, 2015 April 23, 2028 3,250,157 0 0 0 3,250,157 Song Lizhi Male 51 Secretary of the Board of Directors Current July 28, 2025 April 23, 2028 203,000 0 0 0 203,000 Li Xin Female 45 Financial Director Current September 6, 2025 April 23, 2028 0 0 0 0 0 Wang Guodong Male 83 Independent Director Resigned July 18, 2018 April 24, 2025 0 0 0 0 0 Han Demin Male 74 Independent Director Resigned July 18, 2018 April 24, 2025 0 0 0 0 0 Yao Hui Male 61 Independent Director Resigned July 18, 2018 April 24, 2025 0 0 0 0 0Tian Hai Male 40 Director Resigned September 07, 2023 June 4, 2025 160,000 0 0 0 160,000Tan Zhaochun Male 60 Director Resigned November 17, 2021 June 4, 2025 0 0 0 0 0 Shang Youguang Male 59 Independent Director Resigned October 29, 2020 June 4, 2025 0 0 0 0 0 Feng Xiao Male 60 Deputy General Manager Resigned December 24, 2023 July 2, 2025 0 0 0 0 0 Yan Xiaojia Male 42 Board Secretary Resignation June 19, 2024 July 21, 2025 0 0 0 0 0

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Zhou Yana Female 46 Financial Director Resigned December 23, 2024 September 1, 2025 120,000 0 0 0 120,000 Zhan Baidan Female 51 Supervisor Resigned December 28, 2018 December 15, 2025 0 0 0 0 0 Chen Liqin Male 60 Supervisor Resigned November 17, 2021 December 15, 2025 0 0 0 0 0 Yang Lin Female 41 Employee Supervisor Resigned November 20, 2023 December 15, 2025 0 0 0 0 0Total -- -- -- -- -- -- 18,938,457 0 0 0 18,938,457 --

Full text of the 2025 annual report of Northeast Pharmaceutical Group Co., Ltd. Whether there were any departures of directors and senior managers during the reporting period during their term of office

Yes □No

During the reporting period, independent director Wang Guodong, independent director Han Demin, and independent director Yao Hui resigned due to a change of office; independent director Shang Youguang, board secretary Yan Xiaojia, and financial director Zhou Yana resigned due to personal reasons; director Tian Hai resigned due to work adjustment; director Tan Zhaochun and deputy general manager Feng Xiao resigned because they reached the statutory retirement age.

Changes in directors and senior managers of the company

Applicable □Not applicable

Name Position held Type Date Reason

Chairman Appointment and removal January 21, 2025 Job transfer (no longer serves) Guo Jianmin

Director Appointment and Removal January 21, 2025 Job transfer (appointment)

Chairman Appointment and removal January 21, 2025 Work transfer (appointment) Zhou Kai

General Manager Appointment and removal January 21, 2025 Job transfer (no longer holds the position)

General Manager Appointment and removal January 21, 2025 Job transfer (no longer holds the position) Cai Yonggang Deputy General Manager Appointment and removal January 21, 2025 Job transfer (no longer serves)

Director Elected June 20, 2025 Change of Director

Wang Guodong Independent Director Resigned April 24, 2025 Resigned after the general election Han Demin Independent Director Resigned April 24, 2025 Resigned after the general election Yao Hui Independent Director Resigned April 24, 2025 Resigned after the general election Liu Xingming Independent Director was elected April 24, 2025 Resigned after the general election Huang Yongwei Independent Director was elected on April 24, 2025 and took office after the general election Ma Haitian Independent Director was elected on April 24, 2025 and took office after the general election Shang Youguang Independent Director resigned on June 4, 2025 for personal reasons

Tian Hai Director Resigned on June 4, 2025 Work adjustment

Tan Zhaochun Director Resigned June 4, 2025 Reached the statutory retirement age Wang Xinpeng Director was elected June 20, 2025 Director change

Cao Yue, independent director, was elected as a by-election on June 20, 2025.

Feng Xiao Deputy General Manager Dismissed July 2, 2025 Reached the statutory retirement age Yan Xiaojia Secretary of the Board Dismissed July 21, 2025 Personal reasons

Song Lizhi Secretary of the Board of Directors Appointed July 28, 2025 Appointed by the Board of Directors

Zhou Yana, Financial Director, dismissed on September 1, 2025 for personal reasons

Li Xin Financial Director Appointment September 6, 2025 Appointment by the Board of Directors

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Zhan Baidan Supervisor Resigned on December 15, 2025 Cancel the Board of Supervisors

Chen Liqin Supervisor Resigned on December 15, 2025 Cancel the Board of Supervisors

Yang Lin Employee Supervisor Resigned on December 15, 2025 Cancel the Board of Supervisors

Note: 1. After Ms. Zhou Yana, the former financial director of the company, resigned, the company's director and general manager Mr. Cai Yonggang assumed the duties of the financial director until Ms. Li Xin was appointed as the company's financial director; 2. On December 15, 2025, the company held the 2025 The second extraordinary shareholders' meeting in 2019 reviewed and approved the "Proposal on Changing the Company's Registered Capital, Total Shares, Cancellation of the Board of Supervisors, and Amending the Articles of Association." The company no longer has a board of supervisors, and the company's supervisors, Ms. Zhan Baidan, Mr. Chen Liqin, and Ms. Yang Lin, are automatically exempted from their duties and cease to perform their duties.

Employment status

The professional background, main work experience and current main responsibilities of the company’s current directors and senior managers in the company

Mr. Zhou Kai, born in 1964, is a member of the Communist Party of China. He holds a bachelor’s degree and is a professor and researcher-level senior engineer. He has successively served as deputy director and director of the Technology Department of Northeast Pharmaceutical General Factory, executive vice president, president, deputy chief engineer, assistant to the factory director, and deputy director of the Northeast Pharmaceutical Group Co., Ltd., deputy general manager of Northeast Pharmaceutical Group Co., Ltd., chairman of Northeast Pharmaceutical Group Liaoning Biomedicine Co., Ltd., chairman of Northeast Pharmaceutical (Shenyang) Technology Development Co., Ltd., general manager and party committee secretary of Northeast Pharmaceutical Group Shenyang Daiichi Pharmaceutical Co., Ltd., executive director and general manager of Shenyang Shide Pharmaceutical Co., Ltd. of Dongyao Group, deputy general manager of Northeast Pharmaceutical Group Co., Ltd., and general manager of Northeast Pharmaceutical Group Co., Ltd. He has served as a non-independent director since October 2020, and has served as the chairman of the company since January 2025.

Mr. Guo Jianmin, born in 1971, is a member of the Communist Party of China. He has a bachelor's degree and is a professor-researcher-level senior engineer. He has served successively as assistant to the general manager and deputy general manager of Jinhua Chemical (Group) Co., Ltd., general manager and party committee secretary of Fangda Jinhua Chemical Technology Co., Ltd., president and chairman of Northern Heavy Industries Group Co., Ltd., and chairman of Northeast Pharmaceutical Group Co., Ltd. He currently serves as director and senior vice president of Liaoning Fangda Group Industrial Co., Ltd., chairman and general manager of Fangda Medical Investment Management Co., Ltd., and director of Liaoning Fangda General Hospital Co., Ltd. He has served as a non-independent director of the company since July 2021.

Mr. Huang Chengren, born in 1964, is a member of the Communist Party of China and has a bachelor’s degree. He has successively served as deputy director of the Economic Responsibility Department and director of the Economic and Trade Department of Fushun Municipal Audit Bureau, chief accountant of Fushun Carbon Co., Ltd., director and financial director of Liaoning Fangda Group Industrial Co., Ltd. He currently serves as director and deputy financial director of Liaoning Fangda Group Industrial Co., Ltd., director of Jiangxi Fangda Iron and Steel Group Co., Ltd., chairman of Liaoning Fangda Real Estate Group Co., Ltd., and director of Lingyuan Iron and Steel Co., Ltd. He has served as a non-independent director of the company since July 2018.

Mr. Ao Xinhua, born in 1964, is a member of the Communist Party of China, a master's degree candidate, and a senior economist. He has successively served as the deputy general manager, financial director, and general manager of Jiangxi Pinggang Industrial Co., Ltd., general manager and party secretary of Jiangxi Fangda Steel Group Co., Ltd., deputy party secretary, vice president, and executive vice president of Liaoning Fangda Group Industrial Co., Ltd., party secretary of Fangda Special Steel Technology Co., Ltd., and general manager of Pingxiang Pingang Anyuan Steel Co., Ltd. He currently serves as the executive chairman of the board of directors of Liaoning Fangda Group Industrial Co., Ltd., director of Jiangxi Fangda Steel Group Co., Ltd., director of Fangda Special Steel Technology Co., Ltd., chairman of Jiangxi Pinggang Industrial Co., Ltd., chairman of Hainan Fangda Aviation Development Co., Ltd., director of HNA Aviation Group Co., Ltd., director and general manager of Shanghai Huxu Investment Management Co., Ltd., and director of Liaoning Fangda Equipment Manufacturing Group Co., Ltd. He has served as a non-independent director of the company since July 2018.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Mr. Huang Zhihua, born in 1968, is a member of the Communist Party of China, has a bachelor’s degree and is a senior engineer. He has successively served as assistant to the general manager and deputy general manager of Fangda Special Steel Technology Co., Ltd., general manager, chairman and party committee secretary of Jiujiang Pinggang Steel Co., Ltd., deputy general manager and general manager of Jiangxi Fangda Steel Group Co., Ltd., director of Fangda Carbon New Material Technology Co., Ltd., and chairman of Hukou Fangda Hengyuan Real Estate Development Co., Ltd. He is currently the director and president of Liaoning Fangda Group Industrial Co., Ltd., the director of Jiangxi Fangda Steel Group Co., Ltd., the director of Fangda Special Steel Technology Co., Ltd., the director and general manager of Jiangxi Pinggang Industrial Co., Ltd., the director of Pingxiang Pingang Anyuan Steel Co., Ltd., the chairman of Sichuan Dazhou Iron and Steel Group Co., Ltd., the director of Northern Heavy Industry Group Co., Ltd., the director of Hainan Nanda Aviation Development Co., Ltd., and the director of Tianjin Yishang Group Co., Ltd. He has served as a non-independent director of the company since November 2021.

Mr. Cai Yonggang, born in 1980, is a member of the Communist Party of China and holds a postgraduate degree. He has successively served as assistant to the general manager and deputy general manager of the VC company of Northeast Pharmaceutical Group Co., Ltd., deputy director of the equipment department of Northeast Pharmaceutical Group Co., Ltd., director of the general manager’s office and party branch secretary of Northeast Pharmaceutical Group Co., Ltd., director of the engineering project department of Northeast Pharmaceutical Group Co., Ltd., general manager of the marketing department of Northeast Pharmaceutical Group Co., Ltd., general manager of the preparation sales company of Northeast Pharmaceutical Group Co., Ltd., party committee secretary, marketing director, assistant to the general manager and deputy general manager of Northeast Pharmaceutical Group Co., Ltd., etc. The current general manager of the company. He has served as a non-independent director of the company since June 2025.

Mr. Wang Xinpeng, born in 1964, is a member of the Communist Party of China. He once served as deputy general manager of Anshan Iron and Steel Zhongyuan Industrial Group Company, member of the Standing Committee of the Fushun Municipal Party Committee, and minister of the United Front Work Department. He is currently the Party Secretary of Northeast Pharmaceutical Group Co., Ltd. He has served as a non-independent director of the company since June 2025.

Mr. Liu Xingming, born in 1956, is a member of the Communist Party of China and holds a master's degree in engineering. From 2001 to 2012, he served as the general manager and chairman of Fushun Xinfu Steel Plant. From 2008 to 2012, he served as a member of the Economic Committee of Fushun Municipal People's Congress and a member of the Standing Committee of Fushun Municipal People's Congress. From 2012 to 2020 He served as vice president of Liaoning Fangda Group Industrial Co., Ltd. from 2020 to 2022, and served as vice president of Northern Heavy Industries Group Co., Ltd. He has served as an independent director of the company since April 2025.

Mr. Huang Yongwei, born in 1963, is a member of the Communist Party of China and holds a doctorate in litigation law. Graduated from Southwest University of Political Science and Law in 1982 with a bachelor's degree in law. After graduation, he worked at the Higher People's Court of Hebei Province. He once served as a member of the Judicial Committee of the Higher People's Court of Hebei Province, the President of the Appeal Division, and the President of the Civil Trial Supervision Division. From 1999 to 2000, he studied at Illinois State University in the United States and obtained an MBA (Master of Business Administration) degree. In 2003, he served as president of the Qinhuangdao Intermediate People's Court. In 2006, he served as deputy president of the Trial Supervision Tribunal of the Supreme People's Court, in charge of criminal complaint review and commutation and parole work. In 2008, he studied for a doctorate in law at Southwest University of Political Science and Law and received a doctorate in litigation law. In 2012, he was appointed president of the National Judges College, and in 2018, he was appointed president of the Administrative Tribunal of the Supreme People's Court. In 2022, he was appointed as the Chairman of the Board of Supervisors of the China Association of Small and Medium Enterprises. He is currently the general director of the Chinese Behavioral Law Society. He has served as an independent director of the company since April 2025.

Mr. Ma Haitian, born in 1980, is a member of the Communist Party of China, holds a doctorate in economic law, and is the chief legal consulting expert at the provincial level in Liaoning Province. He graduated from Liaoning University Law School in 2002 with a bachelor's degree in law. After graduation, he worked at the Law School of Liaoning University and served as the director of the Office of the Law School of Liaoning University. From 2007 to 2009, he studied at the Law School of Liaoning University and obtained a master's degree in law. In 2015, he studied for a doctorate in law at the Law School of Liaoning University and obtained a doctorate in economic law. From 2017 to present, he works at the Law School of Liaoning University and Liaoning Intellectual Property College as deputy dean; from 2024 to present, he serves as a visiting professor at the Law School of the University of Technology, Sydney, Australia. He has served as an independent director of the company since April 2025.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Mr. Cao Yue, born in 1981, holds a Ph.D. in Accounting, a Chinese Certified Public Accountant, and a Chinese Certified Tax Agent. He has long been engaged in the teaching and research of accounting standards and tax regulations. He has won the first prize of the 13th Hunan Province Philosophy and Social Sciences Outstanding Achievements, the second prize of the 14th Hunan Province Philosophy and Social Sciences Outstanding Achievements, and the honorary title of the 6th Hunan Province Outstanding Young Social Science Expert. He has published "Research on the Financial Effects of Large-Scale Tax and Fee Reductions" and other works. He is currently a professor at the School of Business Administration of Hunan University and an independent director of Tuowei Information Systems Co., Ltd. He has served as an independent director of the company since June 2025.

Mr. Liu Yan, born in 1964, is a member of the Communist Party of China. He holds a bachelor’s degree and is a professor and researcher-level senior engineer. He has successively served as deputy director (in charge of work) and director of the Technical Department of Northeast Pharmaceutical General Plant, first deputy director (ministerial level) and director of the Production Technology Department of Northeast Pharmaceutical General Plant, deputy chief engineer, assistant to the factory director, assistant deputy director, and deputy director of Northeast Pharmaceutical General Factory, general manager of Northeast Pharmaceutical Group Co., Ltd., chairman and general manager of Northeast Pharmaceutical Group Shenyang Daiichi Pharmaceutical Co., Ltd., chairman and general manager of Shenyang Shide Pharmaceutical Co., Ltd. of Dongyao Group, general manager and party committee secretary of the API Production Division, and deputy general manager of Northeast Pharmaceutical Group Co., Ltd. From December 2015 to present, he serves as the deputy general manager of the company.

Mr. Song Lizhi, born in 1974, is a member of the Communist Party of China. He has a university degree and is an accountant and economist. He once served as deputy director of the Securities Department of the Secretariat of the Board of Directors of Jinhua Chlor-Alkali, securities affairs representative and board secretary of Fangda Chemical, deputy general manager of Fangda Medical, deputy director of the Securities Investment Department and deputy general manager of the Investment Management Center of Fangda Group, and director of the office of the board of directors of Fangda Special Steel. From July 2025 to present, he has served as the secretary of the company’s board of directors.

Ms. Li Xin, born in 1980, holds a bachelor’s degree. He once served as the director of the finance department of Jiujiang Pinggang Steel Co., Ltd.; the director and chief financial officer of the finance department of Beijing Fangda Carbon Technology Co., Ltd.; and the deputy director and director of the finance department of Liaoning Fangda Group Industrial Co., Ltd. From September 2025 to present, he has served as the company’s financial director.

The situation where the controlling shareholder and actual controller simultaneously serve as the chairman and general manager of a listed company

□Applicable Not applicable

Employment status in shareholder units

Applicable □Not applicable

Served in a shareholder company Name of person who holds a position in a shareholder company Name of shareholder company Term start date Term end date

Position Receive remuneration allowance

Liaoning Fangda Group Executive Director, Senior Vice President

Guo Jianmin

Industry Co., Ltd.

Liaoning Fangda Group Executive Director, Vice President of Finance

Huang Chengren

Industry Co., Ltd. Supervisor

Jiangxi Western Steel Group

Huang Chengren Director

group co., ltd.

Liaoning Fangda Group

Ao Xinhua Executive Chairman of the Board of Directors

Industry Co., Ltd.

Jiangxi Western Steel Group

Ao Xinhua Director

group co., ltd.

Liaoning Fangda Group

Huang Zhihua Director, President

Industry Co., Ltd.

Jiangxi Western Steel Group

Huang Zhihua Director

group co., ltd.

Working in a shareholder unit

None

Description of the situation

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Employment status in other units

Applicable □Not applicable

Served in other units. Starting term. End of term. Name of person who holds office in other units. Name of other unit.

Position Start date End date Receive remuneration and allowance Guo Jianmin Chairman and General Manager of Fangda Medical Investment Management Co., Ltd. Guo Jianmin Director of Liaoning Fangda General Hospital Co., Ltd.

Guo Jianmin, Chairman of Fangda Medical (Yingkou) Co., Ltd.

Guo Jianmin, Director of Yingkou Fangda Hospital Co., Ltd.

Guo Jianmin, Director of Northern Heavy Industries Group Co., Ltd.

Huang Chengren Chairman of Liaoning Fangda Real Estate Group Co., Ltd.

Huang Chengren Lingyuan Iron and Steel Co., Ltd. Director

Huang Chengren Director, Fangda Medical Investment Management Co., Ltd.

Huang Chengren Director, Jiangxi Pinggang Industrial Co., Ltd.

Huang Chengren Director of Jiangxi Fangfang Steel Group Co., Ltd.

Huang Chengren Director, Tianjin Yishang Group Co., Ltd.

Ao Xinhua Chairman of Jiangxi Pinggang Industrial Co., Ltd.

Ao Xinhua Director, Fangda Special Steel Technology Co., Ltd.

Ao Xinhua Director of Jiangxi Fangfang Steel Group Co., Ltd.

Ao Xinhua Chairman of Hainan Southern Airlines Development Co., Ltd.

Ao Xinhua Director of HNA Aviation Group Co., Ltd.

Ao Xinhua Director and General Manager of Shanghai Huxu Investment Management Co., Ltd. Ao Xinhua Director of Liaoning Fangda Equipment Manufacturing Group Co., Ltd.

Huang Zhihua Director of Jiangxi Pinggang Industrial Co., Ltd.

Huang Zhihua Director, Sichuan Dazhou Iron and Steel Group Co., Ltd.

Huang Zhihua Director of Jiangxi Fangfang Steel Group Co., Ltd.

Huang Zhihua Director of Hainan Nanda Aviation Development Co., Ltd.

Huang Zhihua Director, Fangda Special Steel Technology Co., Ltd.

Huang Zhihua Director, Northern Heavy Industries Group Co., Ltd.

Huang Zhihua Director of Tianjin Yishang Group Co., Ltd.

Huang Zhihua Director, Pingxiang Pinggang Anyuan Steel Co., Ltd.

Huang Zhihua Director of Fangda Medical Investment Management Co., Ltd.

Huang Zhihua, Manager, Beijing Fangda International Industrial Investment Group Co., Ltd.

Huang Zhihua Chairman of Beijing Fangda Carbon Technology Co., Ltd.

Huang Yongwei, General Director, China Behavioral Law Society

2017 Ma Haitian Vice President of Liaoning University Law School and Liaoning Intellectual Property College October 1st 2010 Cao Yue Professor of School of Business Administration, Hunan University July 01st 2022 Cao Yue Tuowei Information Systems Co., Ltd. Independent Director May 18th Current appointment in other units None

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Description of job situation

Penalties imposed by the securities regulatory authorities in the past three years on current and former directors and senior managers of the company during the reporting period

□Applicable Not applicable

Remuneration of directors and senior managers

Decision-making procedures, basis for determination, and actual payment status of remuneration of directors and senior managers

The decision-making procedure and basis for determining the remuneration of directors and senior managers: The company’s management and the remuneration and assessment committee of the board of directors shall determine the remuneration based on their duties.

Determine remuneration according to business, performance appraisal and other circumstances.

Actual payment of remuneration to directors and senior managers: Directors and senior managers (including current and former employees) received from the company

The total remuneration for the year (including basic salary, bonuses, allowances, subsidies, employee welfare fees, etc.) was 9.3682 million yuan.

Remuneration situation of directors and senior managers of the company during the reporting period

Unit: 10,000 yuan

Obtained from the company. Whether you are in the company or not is related to your name, gender, age, position, and employment status.

Total pre-tax remuneration Remuneration received by joint parties Zhou Kai Male 61 Chairman Current 148.30 No Guo Jianmin Male 54 Director Current 128.56 No Huang Chengren Male 61 Director Current 0 Yes Ao Xinhua Male 61 Director Current 0 Yes Huang Zhihua Male 57 Director Current 0 Yes Cai Yonggang Male 45 Director/General Manager Current 93.60 No Wang Xinpeng Male 61 Director Incumbent 117.71 No Liu Xingming Male 69 Independent Director Incumbent 10.26 No Huang Yongwei Male 62 Independent Director Incumbent 10.26 No Ma Haitian Male 45 Independent Director Incumbent 10.26 No Cao Yue Male 44 Independent Director Incumbent 7.91 No Liu Yan Male 61 Deputy General Manager Current 107.94 No Song Lizhi Male 51 Board Secretary Current 2.54 No Li Xin Female 45 Financial Director Current 5.30 No Tianhai Male 40 Director Resigned 0 Yes Tan Zhaochun Male 60 Director Resigned 0 Yes Wang Guodong Male 83 Independent Director Resigned 0 No Han Demin Male 74 Independent Director Resigned 4.74 No Yao Hui Male 61 Independent Director Resigned 4.74 No Shang Youguang Male 59 Independent Director Resigned 7.09 No Feng Xiao Male 60 Deputy General Manager Resigned 205.52 No Yan Xiaojia Male 42 Board Secretary Resigned 46.5 No Zhou Yana Female 46 Financial Director Resigned 25.59 No Total -- -- -- -- 936.82 --

The assessment of the actual remuneration received by all directors and senior managers at the end of the reporting period is based on the "Remuneration Management System for Senior Management of Northeast Pharmaceutical Group Co., Ltd."

At the end of the reporting period, the assessment of the actual remuneration received by all directors and senior managers was completed.

Completed

situation

Deferred expenses of remuneration actually received by all directors and senior management at the end of the reporting period

Not applicable

payment arrangement

Stop payment recovery of actual remuneration received by all directors and senior management at the end of the reporting period

Not applicable

Search situation

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other information

□Applicable Not applicable

5. Directors’ performance of duties during the reporting period

Directors’ attendance at board of directors and shareholders’ meetings

Directors’ attendance at board of directors and shareholders’ meetings

Whether two consecutive

This reporting period should be by communication

Directors present on site. Directors present by proxy. Absent from the board of directors. Did not attend in person. Name of director who attended the shareholders' meeting. Participated in the board of directors. Participated in the board of directors.

Number of Board Meetings Number of Board Meetings Number of Board Meetings Number of Times

discuss

Zhou Kai 14 1 13 0 0 No 3 Guo Jianmin 14 0 14 0 0 No 3 Huang Chengren 14 0 14 0 0 No 3 Ao Xinhua 14 0 14 0 0 No 3 Huang Zhihua 14 0 14 0 0 No 3 Cai Yonggang 5 0 5 0 0 No 1 Wang Xinpeng 5 0 5 0 0 No 1 Liu Xingming 8 1 7 0 0 No 2 Huang Yongwei 8 1 7 0 0 No 2 Ma Haitian 8 1 7 0 0 No 2 Cao Yue 5 0 5 0 0 No 1 Wang Guodong (already

6 0 6 0 0 No 1 resigned)

Han Demin (already

6 0 6 0 0 No 1 resigned)

Yao Hui (deceased)

6 0 6 0 0 No 1)

Shang Youguang (already

9 0 9 0 0 No 2 resigned)

Tian Hai (departed)

8 0 8 0 0 No 1)

Tan Zhaochun (already

8 0 8 0 0 No 1 resigned)

Explanation for failing to attend the board of directors in person for two consecutive times

None.

Directors raise objections to company-related matters

Whether directors raise objections to company-related matters

□Yes No

During the reporting period, the directors raised no objections to relevant matters of the company.

Other instructions on directors’ performance of duties

Whether the directors’ recommendations to the company have been adopted

Yes □No

Director’s explanation on whether the company’s relevant suggestions were adopted or not adopted

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

During the reporting period, the company's directors strictly followed the "Code of Corporate Governance for Listed Companies", "Shenzhen Stock Exchange Stock Listing Rules" and "Articles of Association"

"Rules of Procedure for the Board of Directors" and other relevant regulations, actively participate in the board of directors and shareholders' meetings, and conscientiously perform the duties of directors. Directors of the company based on their professional

professional knowledge, exercise voting rights objectively and prudently, and promote the scientificity and objectivity of the board of directors’ decision-making.

6. The situation of the special committees under the board of directors during the reporting period

The objection matters include the time of the meeting, the importance of the proposal, the name of the other performance committee members, the date of the meeting, the content of the meeting, the specific situation (such as the number of opinions and suggestions, the situation of responsibilities)

Yes) Nomination Committee 1. Regarding the election, the Nomination Committee 1 Not Applicable Wu Hai, Yao Hui, January 20, 2025 2025-01-2025 Nomination Committee 1 Not applicable Wu Hai, Yao Hui, 2025-01-2025 01 Proposal work will be carried out in strict accordance with the relevant laws and regulations. Wang Guodong, Guo Chairman of the Company and the system. After full communication and discussion between Mr. Shang Youguang and Mr. Cai Yonggang as the general manager of the company, all resolutions were passed unanimously.

Remuneration and Appraisal Committee Strictly Regarding 2022

Restricted shares in accordance with the relevant legal year

Laws and regulations and Yao Hui, Ao Xin vote incentive plan

Developing salary and assessment for employees Hua and Huang Zhi 03, 2025 Reserved and Awarded Department

1 work, with due diligence Not applicable No committee Hua, Han De The second deadline is 3rd day of the month

Responsible. After replenishing the public and prospering the business, the sale period has been lifted.

Achievements in communication and sale conditions

discussion, unanimous resolution

passed all motions.

The Audit Committee carries out daily work in strict accordance with relevant laws and regulations, and is expected to perform its duties diligently. After full communication and discussion on the proposals of Dong and Yao Hui, all proposals were unanimously passed.

The Audit Committee strictly complies with relevant laws and regulations of Northeast Pharmaceutical Group

Shang Youguang, Huang and System Development Group Co., Ltd.

Chengren, Tan Zhao 2025 03 Work, Diligent Audit Committee 1 Company 2024 N/A Wu Chun, Wang Guo 25th Responsible. annual report

Dong and Yao Hui fully communicated and discussed the first draft

discussion, and all motions were passed unanimously.

Shang Youguang, Huang 1. About the Company Audit Committee Cheng Ren, Tan Zhao 2025 03 2024 Strictly carry out the proposals and systems in accordance with the relevant Audit Committee 1 Not applicable Wuchun, Wang Guo March 28 Full text of the report and summary of relevant laws and regulations Dong, Yao Hui

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Regarding the company’s work, be diligent and fulfill your responsibilities within 2024. After full communication and discussion of the evaluation report by the Ministry of Control and Self-control, all proposals were unanimously passed. 3. About the company.

2024 annual plan

Impairment of assets

prepared motion

About the proposed continuation

Hiring Company 2025

annual audit machine

motion of the body

5.About adjustments

2025 annual day

Regular related transactions

expected motion

6.About the company

Accounting policy changes

more motion

1.About the company

Remuneration and Appraisal Director, Senior

Committee strictly manages personnel

According to relevant laws, the salary for 2024

Laws and Regulations and Proposals on Remuneration of Yao Hui and Ao Xin

Developing employee compensation and assessment Hua and Huang Zhi March 2025 2. About the revision

1 Work with due diligence Not applicable No committee Hua and Han De "Northeast Pharmaceuticals" on January 28

Responsible. After filling the people and Shang Youguang, the group shares

Senior management of Branch Communication Co., Ltd.

Discussion, unanimously agreed on management salary

Pass all remuneration management systems

case.

"degree" motion

Nomination Committee 1. Regarding the directors, Wang Guodong, Guo Fei, independent directors, and systems are strictly followed in accordance with the relevant laws and regulations. Nomination Committee 1 Not Applicable Wu Hai, Yao Hui, March 28, 2025. Nomination Committee 1 Not applicable, March 28, 2025. 2. About the directors, they are responsible. After the general election of the Chamber of Commerce, the independent directors were fully communicated and discussed, and all resolutions were unanimously passed.

case.

1.About appointment

Mr. Cai Yonggang

General manager of the company

Nomination Committee 2. About the Appointment Mr. Liu Xingming, Zhou Deputy General Manager of the Company Kai, Tian Hai, 2025 04 2025 04 Deputy General Manager of the Company Carry out work in strict accordance with the relevant laws and regulations. After Youguang, Mr. Feng Xiao fully communicated and discussed the opinions of the company's deputy general manager, and unanimously approved and approved the proposals of all commentators.

4.About appointment

Mr. Yan Xiaojia

as company director

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

meeting secretary’s proposal

case

5.About appointment

Ms. Zhou Yana

for corporate finance

Governor's motion

The Audit Committee strictly follows the relevant

Relevant laws and regulations Shang Youguang, Huang About the appointment week and system development Chengren, Tan Zhao 2025 04 Ms. Yana works for the diligent Audit Committee 1 Not applicable Wu Chun, Liu Xing On the 24th of the month, the company's chief financial officer is responsible. After full communication and discussion on the motions supervised by Ming and Huang Yongwei, all motions were unanimously passed.

The Audit Committee strictly follows the relevant

Relevant laws and regulations Shang Youguang, Huang About the company and system development Chengren, Tan Zhao 2025 04 2025 first work, diligent Audit Committee 1 Not applicable Wu Chun, Liu Xing 25th March quarterly report due diligence. After full communication and discussion between Ming and Huang Yongwei, all motions were unanimously adopted.

Nomination Committee 1. Regarding by-elections, strictly follow the relevant

The tenth session of the company's relevant laws and regulations Liu Xingming, Zhou Board of Directors independent and systematic work Kai, Tian Hai, 2025 06 directors' proposals, diligent nomination committee 1 Not applicable None Huang Yongwei, Shang 03 2. About changes Responsible. After full communication and discussion among the directors of the 10th Board of Directors of Youguang Company, all resolutions were unanimously passed.

The Audit Committee strictly follows the relevant

Relevant laws and regulations Shang Youguang, Huang Regarding by-elections and system development Cheng Ren, Tan Zhao 2025 06 The work of the tenth session of the Board of Directors, diligent Audit Committee 1 Not applicable Wu Chun, Liu Xing 03 months Independent Directors of the Board of Directors are responsible. After full communication and discussion between Ming and Huang Yongwei, all proposals were unanimously adopted.

The Nomination Committee strictly follows the relevant

Relevant laws and regulations Liu Xingming, Zhou and system development

Regarding the appointment of directors

Kai, Wang Xin 07, 2025 Work diligently, Nomination Committee 1 Secretary of the Board Not applicable Wu Peng, Huang Yong July 25, Responsible. passed

motion

Wei and Cao Yue fully communicated and discussed, and unanimously passed all resolutions.

case.

Cao Yue, Huang Cheng August 2025 About the Company Audit Committee Audit Committee 1 Not applicable Wu Ren, Cai Yong August 22, 2025 Half year Strictly in accordance with the full text of the 2025 annual report of Northeast Pharmaceutical Group Co., Ltd.

Gang and Liu Xingdu carried out the full text of the report, discussed relevant laws and regulations, Huang Yongwei and the summary, and carried out case work diligently and responsibly. After full communication and discussion, all resolutions were unanimously adopted.

The Audit Committee strictly complies with relevant laws, regulations and systems to carry out appointment matters.

Ren, Cai Yong 09, 2025 Work, Diligent Audit Committee 1 Financial Director of the Company Not applicable Wu Gang, Liu Xing 04, Responsible. passed motions

Ming and Huang Yongwei fully communicated and discussed and unanimously passed all resolutions.

The Nomination Committee strictly complies with the relevant laws and regulations regarding the appointment of Liu Xingming, Zhou and the system.

Kai, Wang Xin 2025-09 Working diligently Nomination Committee 1 Financial Director of the Company Not applicable Wu Peng, Huang Yong 04-month Responsible. passed motions

Wei and Cao Yue fully communicated and discussed and unanimously passed all resolutions.

The Audit Committee strictly complies with the relevant requirements 1. About the Company

Relevant laws and regulations 2025 third

Cao Yue, Huang Cheng and the system conduct quarterly reporting

Ren, Cai Yong 2025 10 work, diligent Audit Committee 1 motion Not applicable Wu Gang, Liu Xing March 22 Responsible. After 2. About quasi-change

Ming and Huang Yongwei fully communicated and discussed changes in accounting affairs

On the resolution of the Unanimous Communications Office

passed all motions.

The Audit Committee strictly complies with relevant laws, regulations and systems when conducting accounting estimates.

Ren, Cai Yong November 2025 work, Diligent Audit Committee 1 Proposal for plan changes Not applicable Wu Gang, Liu Xing March 25th Responsible. case

Ming and Huang Yongwei fully communicated and discussed and unanimously passed all resolutions.

7. Work of the Audit Committee

The audit committee discovered whether there are risks in the company during its supervision activities during the reporting period

□Yes No

The Audit Committee has no objection to the supervision matters during the reporting period.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

8. Company employees

Number of employees, professional composition and education level

Number of active employees of the parent company at the end of the reporting period (person) 4,475 Number of active employees of major subsidiaries at the end of the reporting period (person) 1,252 Total number of active employees at the end of the reporting period (person) 5,727 Total number of employees receiving salaries during the current period (person) 5,727 Number of retired employees of the parent company and major subsidiaries who need to bear expenses (person) 0 Professional composition

Major composition category Major composition number (people)

Production staff 3,317 Sales staff 790 Technical staff 1,248 Financial staff 89 Administrative staff 283 Total 5,727 Education level

Education level category Number (person)

Doctoral students 34 Master students 320 Undergraduate students 2,185 College degree and below 3,188 Total 5,727

Remuneration policy

Based on the salary concept of "fixing salary according to position, changing salary according to job position, and changing salary according to performance", the company has established a "broadband salary" system and correspondingly improved the form.

It has become a market-oriented, efficiency- and cost-centered performance appraisal system.

The company has clear assessment and incentive methods for all tasks, and benefits are shared in stages, levels, and majors according to the creation of benefits. company

Establish reward systems for various aspects such as procurement performance, production performance, sales performance, scientific research results, small reforms, innovation and efficiency creation, cost reduction and efficiency improvement, etc.

case.

Training plan

The company develops an annual training plan every year. Certification system training content includes quality, safety, environmental protection, measurement, energy and other system regulations

and related knowledge training. Each unit carries out training according to the plan, and at the same time makes timely suggestions based on work needs, organizational responsibilities, and personnel adjustments.

Immediate planning and change of planning applications as supplementary planning. In 2025, 740 training items are planned to be carried out, and 1,438 training items are completed throughout the year.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The Human Resources Department guides, manages, and supervises the training work of grassroots units, takes advantage of the technical training of each professional network and the job skills training of each grassroots unit, and organizes the training and assessment of personnel at all levels. Coordinate training resources, expand training channels, and adopt diversified training methods such as in-company training and outsourced training to improve the effectiveness and pertinence of training.

Labor outsourcing situation

□Applicable Not applicable

9. Company profit distribution and conversion of capital reserve funds into share capital

The formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies, during the reporting period

Applicable □Not applicable

The company attaches great importance to returns to investors and implements profit distribution policies in strict accordance with the Articles of Association of Northeast Pharmaceutical Group Co., Ltd. During the reporting period, on the basis of fully considering the actual operating conditions and future sustainable development, the company’s profit distribution plan reviewed and approved at the 2024 Annual General Meeting of Shareholders held on April 24, 2025 is: Based on the company’s total share capital at the end of the reporting period 1 , 429,103,265 shares as the base, it is planned to distribute a cash dividend of 1 yuan (tax included) to all shareholders for every 10 shares, with a total cash dividend of 142,910,326.50 yuan. No bonus shares will be given, and the reserve fund will not be converted into share capital.

From the disclosure to the implementation of the above profit distribution plan, the company completed the repurchase and cancellation on June 13, 2025 2022 The company's total share capital was reduced from 1,429,103,265 shares to 1,427,088,265 shares. The share capital base for this profit distribution was 1,427,088,265 after deducting the 2,015,000 partially restricted shares of the stock incentive plan repurchased and canceled by the company. The total amount of profit distribution will be adjusted based on the principle of keeping the distribution ratio unchanged, and the total distribution will be 142,708,826.50 yuan.

Special explanation of cash dividend policy

Whether it complies with the provisions of the company's articles of association or the requirements of the resolution of the shareholders' meeting: Yes

Are the dividend standards and proportions clear and clear: Yes

Are the relevant decision-making procedures and mechanisms complete: Yes

Whether the independent directors have performed their duties and played their due role: Yes

If the company does not distribute cash dividends, it should disclose the specific reasons and next steps.

Not applicable

Measures to be taken to enhance investor returns:

Whether small and medium-sized shareholders have the opportunity to fully express their opinions and demands, and their legitimate rights and interests

Yes

Is it adequately protected:

If the cash dividend policy is adjusted or changed, are the conditions and procedures in compliance with the regulations?

Not applicable

Transparent:

The company made profits during the reporting period and the parent company’s profits available for distribution to shareholders were positive but no cash dividend distribution plan was proposed

□Applicable Not applicable

Profit distribution and capitalization of capital reserve during the reporting period

Applicable □Not applicable

Number of bonus shares for every 10 shares (shares) 0

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Dividend distribution amount per 10 shares (yuan) (tax included) 0.55 Equity base of distribution plan (shares) 1,427,088,265 Cash dividend amount (yuan) (tax included) 78,489,854.58 Cash dividend amount in other ways (such as share repurchase) (yuan) 0.00 Total cash dividends (including other ways) (yuan) 78,489,854.58 Distributable profits (yuan) 336,635,484.66 Total cash dividends (including other methods) as a proportion of total profit distribution 100%

Cash dividend distribution this time

Others

Detailed explanation of profit distribution or capital reserve conversion plan

Taking into account the company's current operating conditions and future development planning needs, the company's profit distribution plan for 2025 is as follows: Based on the company's total share capital of 1,427,088,265 shares at the end of the reporting period, it is planned to distribute a cash dividend of 0.55 yuan (tax included) to all shareholders for every 10 shares, with a total cash dividend of 78,489,854.58 yuan. No bonus shares will be given, and no public reserves will be converted into share capital.

10. Implementation of the company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

Applicable □Not applicable

Equity incentives

(1) On March 5, 2025, the company held the 37th meeting of the ninth session of the Board of Directors, which reviewed and approved the "Proposal on the Achievement of Removing the Restriction Conditions for the Second Unlocking Period of the Reserved Grant Part of the 2022 Restricted Stock Incentive Plan" and the "Proposal on the Plan to Repurchase and Cancel the Restricted Stocks that have been granted but have not yet been released from the restricted stock in the 2022 Restricted Stock Incentive Plan." Beijing Deheng Law Firm issued a legal opinion.

(2) On March 5, 2025, the company held the 25th meeting of the ninth board of supervisors, and reviewed and approved the "Proposal on the Second Unlocking Period and the Achievements of Unlocking the Restriction Conditions for the Reserved Grant Part of the 2022 Restricted Stock Incentive Plan" and the "Proposal on the Plan to Repurchase and Cancel the Restricted Stocks that have been granted but have not yet been released from the restricted stock in the 2022 Restricted Stock Incentive Plan." The company's board of supervisors issued verification opinions on relevant matters.

(3) On March 12, 2025, the company disclosed the "Indicative Announcement of Northeast Pharmaceutical Group Co., Ltd. on the Listing and Circulation of Unlocked Shares during the Second Unlocking Period of the Reserved Grant Part of the 2022 Restricted Stock Incentive Plan". After review and confirmation by the Shenzhen Stock Exchange and China Securities Depository and Clearing Co., Ltd. Shenzhen Branch, the company 2022 The annual restricted stock incentive plan reserves the right to grant incentives to 115 incentive targets who meet the conditions for lifting sales restrictions, and the number of restricted stocks that can be lifted from sales is 4.56 million shares. The listing and circulation date of the restricted stocks that are lifted from sales this time is March 14, 2025.

(4) On June 14, 2025, the company completed the repurchase and cancellation of some or all of the 2,015,000 restricted shares that had been granted but had not yet been released from sale restrictions held by 26 ineligible incentive targets involved in the 2022 restricted stock incentive plan.

(5) On October 27, 2025, the company held the seventh meeting of the tenth board of directors, and reviewed and approved the "Proposal on Adjusting the Initial Grant and Reserved Grant Repurchase Price of the 2022 Restricted Stock Incentive Plan". Beijing Deheng Law Firm issued a legal opinion.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(6) On October 27, 2025, the company held the fourth meeting of the 10th Board of Supervisors, and reviewed and approved the "Proposal on Adjusting the Initial Grant and Reserved Grant Repurchase Price of the 2022 Restricted Stock Incentive Plan". Beijing Deheng Law Firm issued a legal opinion. (7) On December 15, 2025, the company held its second extraordinary shareholders' meeting in 2025, which reviewed and approved the "Proposal on the Plan to Repurchase and Cancel Part of the Restricted Stocks that have been granted but have not yet been released from sales restrictions under the 2022 Restricted Stock Incentive Plan." The company disclosed the "Announcement of Northeast Pharmaceutical Group Co., Ltd. on repurchasing and canceling some restricted stocks, reducing registered capital and notifying creditors" on December 16, 2025.

Equity incentives received by the company’s directors and senior managers

Applicable □Not applicable

Unit: Share Report

Period reporting restrictions

Reports at the beginning of the period, reports at the end of the period and beginning of the period, reports completed, reports at the end of the period, current period, new stocks.

New for the period Held Holding During the period During the period Rights shares held End of the period Resolved Granted votes

Grant Restriction Restricted Name Position Stock Feasible Already executed several lines Stock Market Price Locked Restriction Grant

Stock Sexual stock Sexual stock option Rights stock Rights stock Option price Option (yuan/number of shares Sexual stock price

Option Number of votes Number of votes Number Number Box Quantity Shares) Quantity Number of votes (yuan/

Quantity Quantity (yuan/quantity share)

shares)

Former Director

50,00

Cai Yang Council 0 0 2.716 0 Secretary

original

Sun Jing Deputy 500,0

0 0 2.716 0% General Manager 00

reason

550,0

Total -- 0 0 0 0 -- 0 -- 0 0 -- 0 Northeast Pharmaceutical Group Co., Ltd.'s announcement on the completion of the repurchase and cancellation of some restricted stocks. The stocks held by the former board secretary Mr. Cai Yang and the former executive deputy general manager Mr. Sun Jingcheng that have been granted but have not yet been released from the company's 2022 restricted stock incentive plan have been noted by the public (if any)

For details of the company's repurchase and cancellation, please refer to the "Announcement of Northeast Pharmaceutical Group Co., Ltd. on the completion of the repurchase and cancellation of some restricted stocks" (2025-048) disclosed by the company on cninfo.com on June 14, 2025.

Evaluation mechanism and incentives for senior managers

The company evaluates senior managers in accordance with the "Remuneration and Assessment Management Measures for Directors and Senior Managers of Northeast Pharmaceutical Group Co., Ltd."

Implementation of employee stock ownership plan

□Applicable Not applicable

Other employee incentives

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

11. Construction and implementation of internal control system during the reporting period

Construction and implementation of internal control

Northeast Pharmaceutical has established a two-level internal control system, with the audit and supervision department at the company level and the management departments and subsidiaries at the unit level. formulated

The "Northeast Pharmaceutical Internal Control Manual", "Northeast Pharmaceutical Group Co., Ltd. Internal Control Management Regulations" and other systems provide guidance on the company's daily internal control management.

Guidance is provided for operational and supervisory inspections. The Audit and Supervision Department organizes internal control inspection teams from time to time to conduct internal control work in various management departments and subsidiaries.

During supervision and inspection, problems found will be formed into a written rectification notice, and a copy will be submitted to the leader of the responsible unit for rectification within a time limit and included in the internal control assessment.

Details of major deficiencies in internal control discovered during the reporting period

□Yes No

12. The company’s management and control of subsidiaries during the reporting period

Problems encountered during integration and solutions adopted

Company name Integration plan Integration progress Resolution progress Follow-up resolution plan

Problem Measures

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

Abnormalities in management control of subsidiaries

□Yes No

13. Internal control evaluation report or internal control audit report

Internal control evaluation report

Date of disclosure of the full text of the internal control evaluation report: April 3, 2026

Full text disclosure index of internal control evaluation report Juchao Information Network (www.cninfo.com.cn)

The total assets of the units included in the evaluation scope account for the total assets of the company

100.00% and the proportion of total assets in the financial statements

The operating income of the units included in the evaluation scope accounts for the company's total

100.00% and the proportion of operating income in financial statements

Defect identification standards

Category Financial Reporting Non-Financial Reporting

Major deficiencies: Qualitative standards for non-financial reporting deficiencies of directors, supervisors and senior managers are mainly determined based on factors such as employee fraud; the company's correction of published financial statements; the severity of the deficiencies involving the nature of the business, direct reporting; the existence of material misstatements in the current financial report, or the nature and scope of the potential negative impact; the internal control failed to detect the error during the operation; and other factors. Deficiencies with the following characteristics: defects of the company's audit committee and internal audit department may be considered as major non-financial reporting deficiencies that are ineffective in the internal control supervision of financial reporting. Trap:

Important flaws: Failure to make selections in accordance with generally accepted accounting principles (1) The company lacks a collective decision-making process;

Qualitative criteria

and application of accounting policies; failure to establish anti-fraud procedures; (2) the company's decision-making process leads to major errors; and control measures; for non-routine or special transactions (3) the company violates national laws and regulations and is punished for accounting treatment without establishing a corresponding control mechanism;

Or it is not implemented and there is no corresponding compensatory control (4) The company's middle and senior managers and senior technical personnel; there is serious personnel loss in the control of the period-end financial reporting process;

There are one or more deficiencies and there is no reasonable guarantee that the prepared financial statements are true and accurate. (5) Negative news frequently appears in the media and affects a wide range of people.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

mark. The degree system fails;

General deficiencies: other control deficiencies other than the above-mentioned major deficiencies and important deficiencies. be rectified.

Other internal control deficiencies that do not constitute major deficiencies but have a significant impact may be considered as important non-financial reporting deficiencies; other internal control deficiencies that do not constitute major deficiencies or important deficiencies may be considered as general non-financial reporting deficiencies.

Major deficiencies: These deficiencies have the potential to cause financial losses

The amount of loss or misstatement in the accounting statements is greater than or equal to the aggregate amount.

And 1% of operating income in financial statements, the impact is important

Accounts, presentations and related determinations and recurring

, as a major defect.

Important deficiencies: These deficiencies may potentially lead to financial losses. Quantitative standard of deficiencies in the company’s internal control over non-financial reporting.

Loss or misstatement amount in the accounting statements is greater than or equal to the accuracy, mainly based on control deficiencies that may directly result in quantitative standard

And 0.2% of the operating income of the financial statements, the amount of economic losses affected, shall be implemented with reference to the quantitative standards of internal control accounts, presentation and related identification and frequent production deficiencies of financial reports.

Raw, it is an important defect.

General defects: These defects have the potential to cause financial losses

The amount of loss or misstatement in the accounting statements is less than that of the consolidated financial statements.

0.2% of reported operating income, and occasionally occurs

, is a general defect.

Number of major flaws in financial reports (number) 0 Number of major flaws in non-financial reports (number) 0 Number of major flaws in financial reports (number) 0 Number of major flaws in non-financial reports (number) 0

Internal control audit report

Applicable □Not applicable

Review opinion paragraph in internal control audit report

We believe that Northeast Pharmaceutical Company maintained effective internal control over financial reporting in all material aspects in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations on December 31, 2025.

Disclosure of internal control audit report Disclosure

Date of disclosure of the full text of the internal control audit report: April 3, 2026

Internal control audit report full text disclosure index Juchao Information Network (http://www.cninfo.com.cn)

Type of opinion on internal control audit report Standard unqualified opinion

Are there any major deficiencies in the non-financial report? No

Whether the accounting firm issues an internal control audit report with non-standard opinions

□Yes No

Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of directors

Yes □No

Whether a non-standard audit opinion on internal control was issued during the reporting period or the previous year

□Yes No

14. Rectification of self-examination issues in the special action on governance of listed companies

Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

15. Disclosure of environmental information

Whether listed companies and their major subsidiaries are included in the list of companies that disclose environmental information in accordance with the law

Yes □No

Number of companies included in the list of companies that disclose environmental information in accordance with the law (household) 2 Serial number Company name Query index of environmental information disclosure reports in accordance with the law

1 Northeast Pharmaceutical Group Co., Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

2 Shenyang Dongrui Fine Chemical Co., Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index

16. Social Responsibility

The company has always adhered to social responsibilities such as assistance, public welfare, role models, and ethics. On January 9, 2025, it disclosed the "Announcement of Northeast Pharmaceutical Group Co., Ltd. on Donations to the Earthquake-Stricken Areas in Dingri County, Shigatse City, Tibet" (Announcement Number: 2025-001), and donated RMB 10,000 in earthquake relief materials to the earthquake-stricken areas in Dingri County, Shigatse City, Tibet to ensure the basic livelihood and warmth of the people in the disaster area during the winter.

17. Consolidate and expand the results of poverty alleviation and rural revitalization

In 2025, the three industrial poverty alleviation projects invested and established by the company in Dongxiang Autonomous County, Gansu Province, including honeysuckle deep processing, knitted sweaters, and plasters, will enter their sixth year. While focusing on current production and providing employment for the masses, the three project companies actively carry out online and offline sales, continue to expand both internal and external markets, and continue to consolidate the industrial foundation. The knitting project successfully completed the relocation and resumption of production in the new factory area, creating favorable conditions for subsequent development. The Honeysuckle Project successfully expanded new categories and developed new customers, laying a key foundation for expanding market territory, extending brand value, and enhancing core competitiveness.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 5 Important Matters

1. Fulfillment of commitments

Commitments made by the company’s actual controller, shareholders, related parties, acquirers, the company and other relevant parties that have been fulfilled during the reporting period and have not yet been fulfilled by the end of the reporting period

Applicable □Not applicable

Reason for commitment Commitment party Commitment type Commitment content Commitment time Commitment period Performance status

(1) Guarantee the independence of personnel 1. Guarantee that the general manager, deputy general manager, financial controller, secretary of the board of directors and other senior management personnel of Northeast Pharmaceutical will not hold other positions other than directors and supervisors in the promiser and other companies controlled by the promiser, and will not receive salaries from the promiser and other companies controlled by the promiser; guarantee that the financial personnel of Northeast Pharmaceutical will not work part-time or receive salary in the promiser and other companies controlled by the promiser. 2. Ensure that Northeast Pharmaceutical has a complete and independent labor, personnel and salary management system, and that these systems are independent of the promiser and other enterprises controlled by the promiser. (2) Guarantee the independence and integrity of assets. The company maintains the independence and integrity of the listed company's assets. The company and its wholly-owned subsidiaries or holding subsidiaries do not occupy the funds and assets of the listed company in violation of laws and regulations, nor infringe the listed company's rights to possess, use, benefit from and dispose of its legal person property. (3) Ensure financial independence 1. Ensure that the listed company continues to maintain its independent financial accounting department, acquisition report or its independent financial accounting system and financial management system. 2. Ensure that listed companies continue to protect Liaoning Fangda Group

Equity Change Report Other Commitments Open an independent bank account and are related to the company and its wholly-owned subsidiaries or holding subsidiaries June 15, 2018 Long-term Normal Fulfillment Industrial Co., Ltd.

The commitment made in the book is that the company will not share a bank account with Northeast Pharmaceutical. 3. Guarantee not to interfere with listed companies’ independent taxation in accordance with the law. 4. Ensure that listed companies can make independent financial decisions and that the company will not illegally interfere with the use of funds of Northeast Pharmaceutical. (4) Guarantee the independence of the organization. The Company supports the independent and legal operation of the listed company’s board of directors, board of supervisors, business operating departments or other institutions and their personnel, and does not interfere with the establishment, adjustment or cancellation of the listed company’s institutions by other means than exercising the shareholder rights stipulated in relevant laws, regulations and the listed company’s articles of association, or restrict or exert other improper influence on the exercise of powers of the company’s board of directors, board of supervisors, other institutions and their personnel. (5) Guaranteeing business independence 1. Guarantee that Northeast Pharmaceutical’s business is independent of the promiser and other companies controlled by the promiser. 2. Ensure that Northeast Pharmaceutical has the assets, personnel, qualifications and capabilities to independently carry out business activities, and has the ability to operate independently and sustainably in the market. 3. Guarantee that the promisee will not interfere with the business activities of Northeast Pharmaceutical except through the exercise of shareholder rights.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(1) Guarantee the independence of Northeast Pharmaceutical personnel 1. The company/I guarantee that the senior management personnel of Northeast Pharmaceutical will not hold other positions other than directors and supervisors in the company and other enterprises controlled by the company/I, and will not receive salaries in the company and other enterprises controlled by the company/I; I guarantee that the financial personnel of Northeast Pharmaceutical will not work part-time or receive salary in the company and other enterprises controlled by the company/I. 2. The company/I guarantee that Northeast Pharmaceutical has a complete and independent labor, personnel and salary management system, and that these systems are independent of the company and other enterprises controlled by the company/I. (2) Ensure the independence and integrity of Northeast Pharmaceutical’s assets. The company/I maintain the independence and integrity of the assets of the listed company. The company and other enterprises controlled by the company/I do not occupy the listed company’s funds and assets in violation of laws and regulations, and do not infringe the listed company’s rights to possess, use, benefit from and dispose of its legal person property. (3) Guarantee the financial independence of Northeast Pharmaceutical 1. Guarantee that the listed company will continue to maintain an independent financial accounting department of its group company and continue to maintain its independent financial accounting system and financial management acquisition report or

Division, Liaoning Fang Dali system. 2. Ensure that the listed company continues to maintain its independence and open a bank account. The company and its equity change report. Other commitments May 09, 2020 Long-term Normal implementation of the commitments made in the Group Industrial Co., Ltd./other companies controlled by me and other related companies not to share a bank with Northeast Pharmaceutical

Company, Fang Weixian account. 3. Guarantee not to interfere with listed companies’ independent taxation in accordance with the law. 4. Ensure that the listed company can make independent financial decisions and that the company/I will not illegally interfere with the use of funds of Northeast Pharmaceutical. (4) Guarantee the independence of Northeastern Pharmaceutical Institutions. The company/I support the independent and legal operation of the listed company’s board of directors, board of supervisors, business operating departments or other institutions and their personnel, and will not interfere with the establishment, adjustment or cancellation of the listed company’s institutions through means other than the exercise of relevant laws, regulations and shareholder rights stipulated in the articles of association of the listed company, or restrict or exert other improper influence on the company’s board of directors, board of supervisors, other institutions and their personnel in the exercise of their powers. (5) Ensure the business independence of Northeast Pharmaceutical 1. Ensure that the business of Northeast Pharmaceutical is independent of the company and other companies controlled by the company/me. 2. Ensure that Northeast Pharmaceutical has the assets, personnel, qualifications and capabilities to independently carry out business activities, and has the ability to operate independently and sustainably in the market. 3. Guarantee that the company/I will not interfere with the business activities of Northeast Pharmaceutical except through the exercise of shareholder rights.

Company, Liaoning Fangda has a complete and independent labor, personnel and salary management system, and these systems are independent of this equity change report. Other commitments August 13, 2020 Long-term Normal performance of Group Industrial Co., Ltd. and the company/other enterprises controlled by me. (2) Guarantee the commitments made in the separate letter of Northeast Pharmaceutical Assets

The company and Fang Weixian will ensure that the company/I maintain the independence and integrity of the assets of the listed company. The company and other enterprises controlled by the company/I shall not occupy the funds and assets of the listed company in violation of laws and regulations, and shall not infringe the listed company's rights to possess, use, benefit from and dispose of its legal person property. (3) Guarantee the financial independence of Northeast Pharmaceutical 1. Ensure that the listed company continues to maintain its independent financial accounting department, and continues to maintain its independent financial accounting system and financial management.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

management system. 2. Ensure that the listed company continues to maintain an independent bank account, and that the company and related companies such as the company/other companies controlled by me do not share a bank account with Northeast Pharmaceutical. 3. Guarantee not to interfere with listed companies’ independent taxation in accordance with the law. 4. Ensure that the listed company can make financial decisions independently, and that the company/I will not illegally interfere with the use of funds of Northeast Pharmaceutical. (4) Guarantee the independence of Northeastern Pharmaceutical Institutions. The company/I support the independent and legal operation of the listed company’s board of directors, board of supervisors, business operating departments or other institutions and their personnel, and will not interfere with the establishment, adjustment or cancellation of the listed company’s institutions through means other than the exercise of relevant laws, regulations and shareholder rights stipulated in the articles of association of the listed company, or restrict or exert other improper influence on the company’s board of directors, board of supervisors, other institutions and their personnel in the exercise of their powers. (5) Ensure the business independence of Northeast Pharmaceutical 1. Ensure the business independence of Northeast Pharmaceutical from the company and other companies controlled by the company/me. 2. Ensure that Northeast Pharmaceutical has the assets, personnel, qualifications and capabilities to independently carry out business activities, and has the ability to operate independently and sustainably in the market. 3. Guarantee that the company/I will not interfere with the business activities of Northeast Pharmaceutical except through the exercise of shareholder rights.

(1) Guarantee the independence of Northeast Pharmaceutical personnel 1. The company/I guarantee that the senior management personnel of Northeast Pharmaceutical will not hold other positions other than directors and supervisors in the company and other enterprises controlled by the company/I, and will not receive salaries in the company and other enterprises controlled by the company/I; I guarantee that the financial personnel of Northeast Pharmaceutical will not work part-time or receive salary in the company and other enterprises controlled by the company/I. 2. The company/I guarantee that Northeast Pharmaceutical has a complete and independent labor, personnel and salary management system, and that these systems are independent of the company and other enterprises controlled by the company/I. (2) Ensure the independence and integrity of Northeast Pharmaceutical’s assets. The company/I maintain the independence and integrity of the assets of the listed company. The company and other enterprises controlled by the company/I do not illegally occupy the listed company’s funds and assets, and do not infringe the listed company’s group limited rights of possession, use, income and disposal of its legal person property. (3) Ensure the financial independence of Northeast Pharmaceutical 1. Ensure that the listed company continues to maintain its acquisition report or

Company, Liaoning Fangda has an independent financial accounting department and continues to maintain its independent financial accounting system and financial management equity change report. Other commitments August 20, 2021 Long-term normal implementation of the Group Industrial Co., Ltd. system; 2. Ensure that listed companies continue to maintain independence and open bank accounts. The commitments made by the company and this book

The company, Fang Weixian's company/other companies controlled by me and other related enterprises do not share a bank account with Northeast Pharmaceutical. 3. Guarantee not to interfere with listed companies’ independent taxation in accordance with the law. 4. Ensure that the listed company can make financial decisions independently, and that the company/I will not illegally interfere with the use of funds of Northeast Pharmaceutical. (4) Guarantee the independence of Northeastern Pharmaceutical Institutions. The company/I support the independent and legal operation of the listed company’s board of directors, board of supervisors, business operating departments or other institutions and their personnel, and will not interfere with the establishment, adjustment or cancellation of the listed company’s institutions through means other than the exercise of relevant laws, regulations and shareholder rights stipulated in the articles of association of the listed company, or restrict or exert other improper influence on the company’s board of directors, board of supervisors, other institutions and their personnel in the exercise of their powers. (5) Ensure the business independence of Northeast Pharmaceutical 1. Ensure the business independence of Northeast Pharmaceutical from the company and other companies controlled by the company/me. 2. Ensure that Northeast Pharmaceutical has the assets, personnel, qualifications and capabilities to independently carry out business activities, and has the market-oriented

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The ability to operate independently and sustainably. 3. Guarantee that the company/I shall not be liable to shareholders by exercising

In addition to our rights, we will not interfere with the business activities of Northeast Pharmaceutical. Is the promise on time?

Yes

fulfill

If the promise is overdue

The performance is completed,

should be explained in detail

Not applicable if performance has not been completed

The specific reasons are as follows

one step work plan

row

If there is a profit forecast for the company's assets or projects, and the reporting period is still in the profit forecast period, the company will explain why the assets or projects have reached the original profit forecast and the reasons why.

□Applicable Not applicable

The company involves performance commitments

□Applicable Not applicable

Non-operating capital occupation of listed companies by controlling shareholders and other related parties

□Applicable Not applicable

During the company's reporting period, there was no non-operational occupation of funds by the controlling shareholder or other related parties of the listed company.

3. Illegal external guarantees

□Applicable Not applicable

The company had no illegal external guarantees during the reporting period.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

4. The Board of Directors’ explanation of the latest “non-standard audit report”

□Applicable Not applicable

Explanation by the board of directors and independent directors (if any) on the “non-standard audit report” of the accounting firm for this reporting period □ Applicable  Not applicable
Description of changes in accounting policies, accounting estimates or correction of major accounting errors compared with the previous year’s financial report □ Applicable  Not applicable

The company had no changes in accounting policies, accounting estimates or correction of major accounting errors during the reporting period.

7. Explanation of changes in the scope of consolidated statements compared with the previous year’s financial report

Applicable □Not applicable

Cancel liquidation subsidiary this year

Company name Reduction method Reduction time Net assets on the date of disposal Net profit from the beginning of the period to the date of disposal (yuan) Jilin Haiaosi Industrial Co., Ltd. Cancellation 2025-8-14 0.00 -6,724.87

8. Appointment and dismissal of accounting firms

Currently employed accounting firm

Name of domestic accounting firm Baker Tilly International Accounting Firm (Special General Partnership) Domestic accounting firm remuneration (10,000 yuan) 115 Consecutive years of audit service by domestic accounting firm 1 Name of CPA of domestic accounting firm Liu Zonglei, Zhou Lang

Continuous years of audit service provided by a domestic accounting firm’s certified public accountants 1 Whether a new accounting firm is hired in the current period

Yes □No

Whether to hire a new accounting firm during the audit period

□Yes No

Whether to follow the approval procedures when changing accounting firms

Yes □No

Detailed explanation of the re-appointment and change of accounting firm

In view that Grant Thornton Certified Public Accountants (Special General Partnership) has provided audit services to the company for 6 consecutive years, and after comprehensive consideration of the company's development strategy and audit needs, the company held the seventh meeting of the 10th Board of Directors on October 27, 2025 and the second extraordinary shareholders' meeting in 2025 on December 15, 2025, and reviewed and approved the "Proposal on the Proposed Change of Accounting Firm" and agreed to appoint Baker Tilly International Certified Public Accountants (Special General Partnership) as the company's 2025 Annual financial reporting and internal controls audit agency. The company has changed its accounting firm

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The matter concerned had friendly communication in advance with Grant Thornton Accounting Firm (Special General Partnership). Grant Thornton Accounting Firm (Special General Partnership) was aware of the matter and confirmed that it had no objection.

Recruitment of internal control audit accounting firms, financial consultants or sponsors

Applicable □Not applicable

The company hired Baker Tilly Certified Public Accountants (Special General Partnership) as the financial audit and internal control audit agency for 2025, and paid internal control audit fees of 150,000 yuan.

9. Facing delisting after the annual report is disclosed

□Applicable Not applicable

10. Matters related to bankruptcy and reorganization

□Applicable Not applicable

The company had no bankruptcy or reorganization related matters during the reporting period.

11. Major litigation and arbitration matters

Applicable □Not applicable

Litigation (Second) Litigation (Second)

Litigation (arbitration) Amount involved Whether a pre-litigation (arbitration)

Judgment) Trial outcome Judgment enforcement Disclosure date Basic information on disclosure index (RMB 10,000) Liability calculation Judgment) Progress

Results and impact

The first instance has been decided

decision, both sides

Appeal. Liaoning

The first trial has been re-examined

Hebei Construction Group Provincial Senior People "Northeast Pharmaceuticals"

Judgment, our

Co., Ltd. The court ruled that the group shares

Filed in August 2021 against Northeast Pharmaceutical Construction Co., Ltd. 2,261.87 No Return to Shenyang City N/A Co., Ltd. 2021

The second-instance trial was suspended on September 26 by the People's Court of the People's Republic of China.

No trial has been held

The same dispute case shall be retried. Retrial and prosecution.

The first instance has been decided

Decision, we have

File an appeal.

Our application is strong

After the system is implemented,

The court decided on both sides

Party versus party

The first instance has been decided

Line basis

Decide, let’s go

a content

sue. The second trial has been completed 2023-026: Dongyang Wuhai Chemical's performance has not been achieved

Verdict. Company Northeast Pharmaceutical Group Co., Ltd. v. Dongbei unanimous opinion, 04, 2023

6,123.55 No Contribution to Inner Mongolia High-tech Co., Ltd. N/A Tuan Co., Ltd. Beijing Pharmaceutical Co., Ltd. to jointly contribute to this case None On March 21

Level People's Court Company Litigation and Contract Dispute Cases Law Enforcement and Arbitration

Application for re-examination, the exhibition announcement will terminate our

The court rejected the

Applying for a case

review application.

execute; the other party

Apply for enforcement

After the trip, the court

consider it unworthy

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

cooperate in executing the case

Judgment item one

content, ruling

reject its execution

Apply, the other party

Already submitted to Wuhai City

Intermediate People's Law

Court application for reply

discussion. 2025

September 30,

Received execution reply

Discuss and rule, reject

return the other party's insistence

Apply for reconsideration

Please, keep it black

Hainan District, Haishi

People's Court

Make a ruling.

Rebuttal of the first instance judgment

Reply to the plaintiff's lawsuit

request, second instance

The judgment was changed to our branch. The company has moved inwards.

2023-004: Beijing Huade Parking Pay Beijing Huade Mongolian Senior

Northeast Pharmaceutical Market Management Co., Ltd. Parking Lot Management Civil Court Application 2023 02

8,756.73 Yes Not applicable Tuan Co., Ltd. v. Northeast Pharmaceutical Co., Ltd. Retrial. Effective on January 1st

Company litigation involving contract dispute cases 27.925 million, the judgment has been fulfilled

Exhibition announcement yuan. We've finished.

High to Inner Mongolia

level people's court

Apply for reexamination.

a natural person

Withdrawn

sue. The remaining nine

The first and second instance of a natural person upheld the original decision 2024-068:

The trial will judge our side. Effective Northeast Pharmaceutical Group Tan Minjuan and ten others have been sentenced to 2.6 million yuan in 2024 12 Tuan Co., Ltd.

7,261.41 No Not applicable

Natural persons/share repurchases by various banks. On March 11, Dongrui Company filed an application for retrial with the court regarding the equity interests held by natural persons in the company. The parties to the announcement of the lawsuit have filed their respective

Sued, the second instance has been completed

Court session.

Hainan District, Wuhai City

Shuangqing Agriculture and Animal Husbandry Opens

limited liability company

Division v. Northeast Pharmaceutical 2025-041: Group Co., Ltd. The first instance has been decided. Northeast Pharmaceutical Group Co., Ltd.

The second trial has not yet started April 2025

Company, Dongyaowu 5,784 No, we will go up Not applicable Tuan Co., Ltd.

Court 29th

Hai Chemical Co., Ltd. prosecuted. Company lawsuit filed with the company, third party Beizhan Announcement Jinghuade Parking Lot

Management Co., Ltd.

Contract dispute case

12. Punishment and rectification

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

There were no penalties or rectifications during the company's reporting period.

13. Integrity status of the company, its controlling shareholders and actual controllers

Applicable □Not applicable

During the reporting period, the company, its controlling shareholder Liaoning Fangda Group Industrial Co., Ltd., and its actual controller Mr. Fang Wei had good integrity and no

There are situations such as failure to fulfill effective court judgments and large debts that have not been paid off when due.

14. Major related transactions

Related transactions related to daily operations

Applicable □Not applicable

approved

Related sharing can be obtained

Is the related intersection related?

Related, related, related, related, transaction, quasi-transaction

Related party transaction amount exceeds transaction disclosure disclosed transaction transaction transaction transaction amount Yijin similar

Relationship Pricing Approval Settlement Date Indexer Type Content Price (10,000 Amount Transaction

Principle (10,000 amount method

Yuan) Ratio Market Price

Yuan)

Disclosed in Juchao Information Network's "About Tiaoxiangguan Zhengyingkou Joint Sales Basis 2025 Holdings 2025"

Fangda Sales Vendor Market Annual Shareholder Market 14,56 20,10 Contract Market Year 04

Hospital commodities and prices 1.89% No Daily subordinates Price 8.61 0 Agreed price Month 03

Limited products, provision Negotiation Affiliated Enterprises Day

The company provides services, pricing, transaction services, and expected announcements" (Announcement No.: 2025-020) disclosed to Julianren Sales Chaozi Liaoning Sales Agent News Network Basis

Fangda Holdings Commodities, Market in 2025

General Medical Shareholder Product and supply market 3,384 13,80 Contract market Year 04 "Custom price 0.44% No

The hospital has subordinates to provide services at a price of .93 0. The agreed price will be negotiated on March 03.

Limited public enterprise services, daily pricing

General Affairs, Rental 2025 Rental Equipment Annual Equipment Daily Related Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Full Text

"Announcement on Transaction Estimation" (Announcement No.: 2025-020) was disclosed in "About the Transfer to Guanzhong Liaoning" on cninfo.com.cn

Lianren Sales Basis 2025 Fangda Holdings 2025

Vendor Market Annual Xincheng Shareholder Market 4,664 Contract Market Year 04

Commodity, price 0.60% 8,000 No Routine Real Estate Subsidiary Price .99 Agreed price Month 03

Products, supplies, consultations, related limited companies, day

Provide service pricing trading company

Service Expected Announcement" (Announcement No.: 2025-020) 22,61 41,90

Total -- -- -- -- -- -- -- -- 8.53 0

Details of large sales returns Not applicable

On April 1, 2025, the company held the 39th meeting of the ninth board of directors, and reviewed and approved the "About Adjustment of the Daily Relationships that Will Happen in the Current Period by Category"

Proposal on Estimating Daily Related Transactions in 2025. In order to adapt to market demand and better develop various businesses, the total amount is estimated based on public transactions and is reported in the report.

In order to meet the actual needs of the company's daily operations, the company will adjust the estimated amount of daily related transactions in 2025, and the company's actual performance during the period (if any)

The estimated total amount of various daily related transactions with related parties in 2025 for its subsidiaries and its subsidiaries is adjusted to 576 million yuan. The difference between the transaction price and the market reference price is relatively

Not applicable

Big reason (if applicable)

Related transactions arising from asset or equity acquisition and sale

□Applicable Not applicable

The company had no related transactions involving acquisition or sale of assets or equity during the reporting period.

Related transactions related to joint external investment

□Applicable Not applicable

The company had no related transactions involving joint external investments during the reporting period.

Related credit and debt transactions

□Applicable Not applicable

The company had no related creditor's rights or debts during the reporting period.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Dealings with related financial companies

□Applicable Not applicable

There are no deposits, loans, credit or other financial business between the company and its related financial companies and related parties.

The transactions between the financial company controlled by the company and related parties

□Applicable Not applicable

There are no deposits, loans, credit or other financial business between the financial companies controlled by the company and related parties.

Other major related transactions

□Applicable Not applicable

The company had no other major related transactions during the reporting period.

15. Major contracts and their performance

Custody, contracting and leasing matters

(1) Custody situation

□Applicable Not applicable

There was no custody situation during the company's reporting period.

(2) Contracting situation

□Applicable Not applicable

There was no contracting situation during the reporting period of the company.

(3) Leasing situation

□Applicable Not applicable

There was no leasing situation during the company's reporting period.

Major guarantee

Applicable □Not applicable

Unit: RMB 10,000 External guarantees provided by the company and its subsidiaries (excluding guarantees to subsidiaries)

Guarantee amount Counter guarantee

Is the collateral related to the guarantee? Amount of guarantee actually issued. Actual guarantee. Guarantee type situation. Whether it has been fulfilled.

(For example, guarantee period, name of related party, announcement disclosure, date of birth, insured amount type (if completed, yes), guarantee disclosure date, yes)

The company’s guarantees for subsidiaries

Guarantee amount Collateral Counter guarantee Whether it is a guarantee pair Guarantee amount Actual issuance Actual guarantee Guarantee type Whether performance

Degree related (such as: situation, guarantee period, name of related party, date of birth, insured amount, type, completion of

Announcement disclosed (Yes) (such as guarantee

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Revealed date: Yes) Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 June 17 10,000 None None 12 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 April 17 15,400 None None 6 months Yes Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 May 16 13,200 None None 6 months Yes Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2024 2025 Shenyang No.

March 30 260,000 January 20 12,000 None None 12 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2024 2025 Shenyang No.

March 30 260,000 January 21 17,000 None None 12 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 May 15 11,000 None None 6 months Yes Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 May 13 9,800 None None 6 months Yes No One Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 June 23 10,000 None None 6 months Yes Noyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2024 2025 Shenyang No.

March 30 260,000 March 31 7,920 None None 24 months No Fuyi Pharmaceutical

day day

limited company

Division

Northeastern system 2023 2024

260,000 13,020 None None 12 months Yes Noyao Group March 30 March 29

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Shenyang Riyi Pharmaceutical

limited company

Division

Made in Northeast China

pharmaceutical group

2023 2024 Shenyang No.

March 30 260,000 January 16 5,000 None None 12 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 September 24 17,500 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 December 02 10,000 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 October 11 14,700 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 October 31 11,000 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 September 03 15,000 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 August 13 9,800 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

pharmaceutical group

2024 Shenyang No. 2024

March 30 260,000 December 06 10,000 None None 6 months Yes Fuyi Pharmaceutical

Japan Co., Ltd.

Division

Made in Northeast China

Pharmaceutical Group 2024 Shenyang March 30, 2024 260,000 September 12 7,700 None None 6 months Yes No One Pharmaceutical Day Day Co., Ltd.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 November 12 10,000 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 November 12 5,000 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 December 09 5,000 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 December 10 13,300 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 November 17 10,990 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 December 25 10,000 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

pharmaceutical group

2025 Shenyang No. 2025

April 03 300,000 November 26 9,800 None None 6 months No Fuyi Pharmaceutical

day day

limited company

Division

Made in Northeast China

2024 2024 Pharmaceutical Group 1,449.9 March 30 170,000 November 20 None None 12 months Yes No Supply and marketing Yes 7 days Day

Ltd.

Made in Northeast China

2024 2024 Pharmaceutical Group 8,550.0 March 30 170,000 November 27 None None 12 months Yes No Supply and marketing Yes 3 days Day

Ltd.

Made in Northeast China

2025 2025 Pharmaceutical Group

April 03 170,000 May 21 5,000 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Northeastern system 2025 2025

170,000 5,000 None None 6 months Yes Noyao Group April 03 May 26

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Supply and marketing are day by day

Ltd.

Made in Northeast China

2024 2025 Pharmaceutical Group

March 30 170,000 March 31 13,000 None None 12 months No No supply and marketing Yes

day day

Ltd.

Made in Northeast China

2024 2025 Pharmaceutical Group

March 30 170,000 March 15 5,000 None None 12 months Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2025 Pharmaceutical Group

March 30 170,000 March 15 10,000 None None 12 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2025 Pharmaceutical Group

March 30 170,000 March 27 10,000 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2025 Pharmaceutical Group

March 30 170,000 January 17 30,000 None None 12 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2025 2025 Pharmaceutical Group

April 03 170,000 May 16 4,900 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2024 Pharmaceutical Group

March 30 170,000 May 08 5,000 None None 8 months Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2023 2024 Pharmaceutical Group

March 30 170,000 March 15 5,000 None None 12 months Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2023 2024 Pharmaceutical Group

March 30 170,000 January 24 10,000 None None 12 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2024 Pharmaceutical Group

March 30 170,000 September 06 12,600 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2024 Pharmaceutical Group

March 30 170,000 August 21 7,000 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2024 Pharmaceutical Group

March 30 170,000 December 13 6,500 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China

2024 2024 Pharmaceutical Group

March 30 170,000 September 30 10,500 None None 6 months Yes Yes No supply and marketing

day day

Ltd.

Made in Northeast China 2024 2024 Pharmaceutical Group March 30 170,000 November 13 4,000 None None 6 months Yes No Supply and marketing available Day Day

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Ltd.

Made in Northeast China

2025 2025

pharmaceutical group

April 03 170,000 October 17 7,000 None None 12 months No No supply and marketing Yes

day day

Ltd.

Made in Northeast China

2025 2025

pharmaceutical group

April 03 170,000 September 17 5,000 None None 12 months No No supply and marketing

day day

Ltd.

Made in Northeast China

2025 2025

pharmaceutical group

April 03 170,000 November 19 5,000 None None 6 months No No supply and marketing Yes

day day

Ltd.

Made in Northeast China

2025 2025

pharmaceutical group

April 03 170,000 December 25 30,000 None None 6 months No No supply and marketing Yes

day day

Ltd.

Made in Northeast China

2025 2025

pharmaceutical group

April 03 170,000 November 20 4,900 None None 6 months No No supply and marketing

day day

Ltd.

Made in Northeast China

2025 2025

pharmaceutical group

April 03 170,000 September 25 16,000 None None 12 months No No supply and marketing Yes

day day

Ltd.

Approval of subsidiaries during the reporting period

The total amount of the company's guarantees is 610,000. The total actual amount of guarantees is 321,210 (B1). Total (B2)

Approved at the end of the reporting period

Guarantee limit for subsidiaries 610,000 Total actual guarantee balance 191,910 Total (B3) (B4)

Guarantees provided by subsidiaries to subsidiaries

Guarantee amount Counter guarantee

Is the collateral related to the guarantee? Amount of guarantee actually issued. Actual guarantee. Guarantee type situation. Whether it has been fulfilled.

(For example, guarantee period, name of related party, announcement disclosure, date of birth, insured amount type (such as completion of the transaction)

Yes) Warranty Disclosure Date Yes)

The total amount of company guarantees (i.e. the total of the first three major items)

Approval of guarantees during the reporting period Actual guarantees during the reporting period

Total quota 610,000 Total amount incurred 321,210 (A1+B1+C1) (A2+B2+C2)

Actual guarantees approved at the end of the reporting period

Total guarantee limit 610,000 Total balance 191,910 (A3+B3+C3) (A4+B4+C4)

The total guarantee balance (i.e. A4+B4+C4) accounts for the company’s net capital

34.70% production ratio

Among them:

Directly or indirectly, for those whose asset-liability ratio exceeds 70%

80,900 Debt guarantee balance provided by the insured party (E)

The total amount of the above three guarantees (D+E+F) 80,900

Specific instructions for using composite guarantees

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Entrusting others to manage cash assets

(1) Entrusted financial management situation

□Applicable Not applicable

The company did not have entrusted financial management during the reporting period.

(2) Entrusted loans

□Applicable Not applicable

The company had no entrusted loans during the reporting period.

Other major contracts

□Applicable Not applicable

The company had no other major contracts during the reporting period.

16. Usage of raised funds

□Applicable Not applicable

The company has no use of raised funds during the reporting period.

17. Description of other major matters

Applicable □Not applicable

The company announced the "Announcement of Northeast Pharmaceutical Group Co., Ltd. on the completion of the implementation of the shareholding increase plan of the controlling shareholder acting in concert" (announcement number: 2025-047) on the designated information disclosure media on June 11, 2025. From April 9, 2025 to the closing of June 10, 2025, Fangda Steel passed The Shenzhen Stock Exchange increased its holdings of the company's shares by a total of 14,629,900 shares through centralized bidding transactions, accounting for 1.0237% of the company's total share capital at that time (1,429,103,265 shares). The total increase in holdings was 75,004,222 yuan (excluding transaction costs). The shareholding increase plan has been completed.

18. Major events of the company’s subsidiaries

Applicable □Not applicable

On October 9, 2025, the company announced the "Announcement of Northeast Pharmaceutical Group Co., Ltd. on its controlled subsidiary obtaining drug clinical trial approval notice" (announcement number: 2025-063) on the designated information disclosure media. DCTY0801 injection, independently developed by the company's controlled subsidiary Dingcheng Peptide, received the "Drug Clinical Trial Approval Notice" approved and issued by the National Medical Products Administration, agreeing to conduct clinical trials for EGFRvIII-positive recurrent or progressive high-grade brain gliomas.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 6 Share changes and shareholder status

1. Changes in shares

Changes in shares

Unit: Before this change in share capital Increase or decrease in this change (+, -) After this change

Quantity Proportion Issuance of new shares Bonus shares Conversion of provident funds Others Subtotal Quantity Proportion

Shares subject to sales restrictions 27,794,449 1.94% -9,879,921 -9,879,921 17,914,528 1.26%
State shareholding
Shareholding by state-owned legal persons
Other domestic shareholdings 27,794,449 1.94% -9,879,921 -9,879,921 17,914,528 1.26% Among them: shares held by domestic legal persons 2,770,685 0.19% 2,770,685 0.19% shares held by domestic natural persons 25,023,764 1.75% -9,879,921 -9,879,921 15,143,843 1.07%
Foreign shareholding

Including: shares held by overseas legal persons

Shareholding by foreign natural persons

Shares without selling restrictions 1,401,308,816 98.06% 7,864,921 7,864,921 1,409,173,737 98.74%
RMB ordinary shares 1,401,308,816 98.06% 7,864,921 7,864,921 1,409,173,737 98.74%
Domestic-listed foreign shares
Foreign-invested stocks listed overseas
Others
Total number of shares 1,429,103,265 100.00% -2,015,000 -2,015,000 1,427,088,265 Reasons for changes in 100.00% shares

Applicable □Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

In June 2025, the company completed the repurchase and cancellation of all or part of the restricted shares that have been granted under the 2022 restricted stock incentive plan but have not yet been released from sale. The number of people involved was 26, and the total number of shares repurchased and canceled was 2,015,000 shares. After the repurchase and cancellation, the company's total share capital changed from 1,429,103,265 shares to 1,427,088,265 shares.

Approval status of share changes

Applicable □Not applicable

Company on November 13, 2023 The 22nd meeting of the 9th board of directors and the 18th meeting of the 9th board of supervisors were convened on November 29, 2023. The fourth extraordinary shareholders' meeting of 2023 was held on November 29, 2023, and the "Proposal on the proposed repurchase and cancellation of some restricted stocks that have been granted but have not yet been released from sale under the 2022 restricted stock incentive plan" was held on November 29, 2023. The 28th meeting of the ninth board of directors and the 22nd meeting of the ninth board of supervisors were held on July 25, 2024, in September 2024. The second extraordinary general meeting of shareholders in 2024 was held on the 12th and reviewed and approved the "Proposal on the Plan to Repurchase and Cancel Part of the Restricted Stocks that have been granted but have not yet been released from the restricted stock incentive plan in 2022". Transfer status of changes in shares

Applicable □Not applicable

In June 2025, the company completed the repurchase and cancellation of some or all of the 2,015,000 restricted shares held by the 26 ineligible incentive targets involved in the 2022 restricted stock incentive plan that had been granted but did not meet the conditions for lifting the restrictions. According to the confirmation results of the China Securities Depository and Clearing Co., Ltd. Shenzhen Branch, after the repurchase and cancellation was completed, the company's total share capital was 1,429,103,265 The number of shares was changed to 1,427,088,265 shares.

The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in the most recent year and period, net assets per share attributable to the company’s common shareholders Applicable □Not applicable

During the reporting period, after the company completed the above-mentioned repurchase and cancellation, the total share capital changed from 1,429,103,265 shares to 1,427,088,265 shares. Based on the latest dilution of total share capital on December 31, 2025, earnings per share are 0.18 yuan.

Other content that the company deems necessary or required to be disclosed by securities regulatory authorities

□Applicable Not applicable

Changes in restricted shares

Applicable □Not applicable

Unit: Increased sales restrictions in the equity period, lifted sales restrictions in this period

Name of shareholder Number of restricted shares at the beginning of the period Number of restricted shares at the end of the period Reason for selling restrictions Number of shares on the date of lifting the restrictions Number of shares

serving directors and senior management

Total number of unlocked shares in the year Zhou Kai 3,165,075 0 0 3,165,075 Director-locked shares

The number shall not exceed 25% of the total number of shares held at the beginning of the period.

Incumbent directors and Gao Guo Jianmin 2,396,250 0 0 2,396,250 Directors lock in share-level management personnel per

The full text of the 2025 annual report of Bei Pharmaceutical Group Co., Ltd.

The number shall not exceed the total number of shares held at the beginning of the period

25%.

The cumulative number of shares unlocked by serving directors and senior managers every year Liu Yan 2,437,618 0 0 2,437,618 Directors’ locked shares

The number shall not exceed the total number of shares held at the beginning of the period

25%.

The cumulative number of shares unlocked by serving directors and senior managers each year Huang Chengren 2,415,075 0 0 2,415,075 Directors’ locked shares

The number shall not exceed the total number of shares held at the beginning of the period

25%.

The cumulative number of shares unlocked by serving directors and senior managers every year Ao Xinhua 2,665,075 0 0 2,665,075 Directors’ locked shares

The number shall not exceed the total number of shares held at the beginning of the period

25%.

The cumulative number of shares unlocked by serving directors and senior managers each year Huang Zhihua 750,000 0 0 750,000 Directors’ locked shares

The number shall not exceed the total number of shares held at the beginning of the period

25%.

Equity incentive restricted shares: The listing and circulation date of restricted shares that are released from sales is March 14, 2025; the processing time for repurchasing restricted shares held by equity incentives is other than 13,965,356 182,250 10,062,171 4,085,435. Locked shares of senior managers: The cumulative number of unlocked shares of current directors and senior managers each year shall not exceed 25% of the total shares held at the beginning of the period.

Total 27,794,449 182,250 10,062,171 17,914,528 -- --

2. Securities issuance and listing

Securities issuance (excluding preference shares) during the reporting period

□Applicable Not applicable

Explanation of changes in the company’s total number of shares and shareholder structure, and changes in the company’s asset and liability structure

Applicable □Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

On June 14, 2025, the company disclosed the "Announcement of Northeast Pharmaceutical Group Co., Ltd. on the completion of the repurchase and cancellation of some restricted stocks" on the cninfo.com (www.cninfo.com.cn). The company's 2022 restricted stock incentive plan involves The 2,015,000 restricted shares held by the ineligible incentive targets that have been granted but do not meet the conditions for lifting the restrictions will be repurchased and canceled. After the repurchase and cancellation is completed, the company's total share capital will change from 1,429,103,265 shares to 1,427,088,265 shares. The above changes have no significant impact on the company's assets and liability structure.

Existing internal employee shares

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

3. Shareholders and actual controllers

Number of shareholders and shareholding status of the company

Unit: Share

Annual Report End of Reporting Period Vote

Priority for restoration of rights before disclosure date

Common shares at the end of the reporting period Voting rights restored at the end of the previous month before the annual report disclosure date

47,381 End of the previous month 47,538 Total number of shareholders 0 Total number of shareholders Total number of preference shareholders (if any) (see Note 8)

Shares of common stock (if any) (see

Total number of East Note 8)

Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through refinancing)

Shareholding at the end of the reporting period Increase or decrease during the reporting period Shares held with selling restrictions Shares held without selling conditions Pledged, marked or frozen Name of shareholder Nature of shareholder Shareholding ratio

Quantity Changes Number of shares Number of shares Status of shares Number Jiangxi Dangda Iron and Steel Group Domestic non-state-owned law

32.08% 457,861,342 14,630,000 0 457,861,342 Pledge 263,002,211 Co., Ltd. Person

Liaoning Fangda Group Industrial Domestic Non-State-owned Law

23.06% 329,068,713 0 0 329,068,713 Pledge 48,740,000 Co., Ltd. Person

Fang Wei Domestic natural person 0.85% 12,189,130 0 0 12,189,130 Not applicable 0 Hong Kong Securities Clearing Company Limited

Overseas legal person 0.81% 11,505,082 2,273,894 0 11,505,082 Not applicable 0 companies

Zhang Shaoguang Domestic natural person 0.74% 10,498,100 7,271,600 0 10,498,100 Not applicable 0Lü Kunyu Domestic natural person 0.70% 10,000,000 0 0 10,000,000 Not applicable 0Wu Enbo Domestic natural person 0.66% 9,387,000 0 0 9,387,000 Not applicable 0Hu Binbin Domestic natural person 0.47% 6,686,500 6,686,500 0 6,686,500 Not applicable 0 China Merchants Bank Co., Ltd.

Company - Southern China Securities

Others 0.46% 6,587,558 712,200 0 6,587,558 Not applicable 0 1000 Transaction type open

Index Securities Investment Fund

Xu Fujian Domestic natural person 0.45% 6,450,300 6,450,300 0 6,450,300 Not applicable 0 Strategic investors or general legal persons formed due to the placement of new shares

Being the top 10 shareholders (if any) (see None

Note 3)

Explanation on the related relationships or concerted actions of the above-mentioned shareholders: Liaoning Fangda Group Industrial Co., Ltd., Jiangfang Fangda Steel Group Co., Ltd. and the actual controller Mr. Fang Wei constitute parties acting in concert. The company does not know any other top ten shareholders with total share capital.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

It is also unknown whether there is a related relationship between them, and whether they are persons acting in concert as stipulated in the "Measures for the Administration of Acquisitions of Listed Companies".

The above-mentioned shareholders involve entrustment/entrusted voting rights, delegation of

None

Explanation of abstention from voting rights

Among the top 10 shareholders, there are special repurchase accounts.

None

Description (if any) (see Note 10)

Shareholdings of the top 10 shareholders without sales restrictions (excluding shares lent through refinancing and shares locked by executives)

Share type

Name of shareholder Number of shares without selling restrictions held at the end of the reporting period

Type of shares Quantity Jiangxi Fangda Steel Group Co., Ltd. 457,861,342 RMB ordinary shares 457,861,342 Liaoning Fangda Group Industrial Co., Ltd. 329,068,713 RMB ordinary shares 329,068,713 Fang Wei 12,189,130 RMB ordinary shares 12,189,130 Hong Kong Securities Clearing Company Limited 11,505,082 RMB ordinary shares 11,505,082 Zhang Shaoguang 10,498,100 RMB ordinary shares 10,498,100 Lv Kunyu 10,000,000 RMB ordinary shares 10,000,000 Wu Enbo 9,387,000 RMB ordinary shares 9,387,000 Hu Binbin 6,686,500 RMB ordinary shares 6,686,500 China Merchants Bank Co., Ltd. - China Southern Securities

1000 trading open-end index securities investment fund 6,587,558 RMB ordinary shares 6,587,558 gold

Xu Fujian 6,450,300 RMB ordinary shares 6,450,300 Among the top 10 shareholders of unrestricted tradable shares,

The top 10 shareholders of unrestricted tradable shares and the top 10 Liaoning Fangda Group Industrial Co., Ltd., Jiangxi Fangda Steel Group Co., Ltd. and the actual controller Mr. Fang Wei constitute persons acting in concert. The Company does not know whether there is any related relationship or concerted action among other shareholders who are among the top ten shareholders in terms of total share capital, nor does it know whether they are persons acting in concert as stipulated in the "Measures for the Administration of Acquisitions of Listed Companies".

Ming

The top 10 common shareholders participate in the margin financing and securities lending industry

Not applicable

Description of financial situation (if any) (see Note 4)

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

□Applicable Not applicable

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

□Applicable Not applicable

Whether the company's top 10 ordinary shareholders and the top 10 unrestricted ordinary shareholders conducted agreed repurchase transactions during the reporting period

□Yes No

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The company's top 10 common shareholders and the top 10 common shareholders without selling restrictions did not conduct agreed repurchase transactions during the reporting period.

Information about the company’s controlling shareholders

Nature of controlling shareholder: Natural person holding

Controlling shareholder type: legal person

Name of the controlling shareholder Legal representative/person in charge of the unit Date of establishment Organization code Main business industry investment and management of the company’s invested assets, metal materials, building materials, electrical equipment,

Auto parts, hardware tools, rubber products, instruments, office supplies, chemical products (excluding dangerous Liaoning Fangda Group Industrial

Huang Zhihua April 24, 2000 91210100719656393Q Hazardous chemicals), coke, mineral powder, limestone sales, metallurgical materials sales, self-operated and agents of various companies Co., Ltd.

Import and export of goods and technologies, except for goods and technologies that are restricted by the state or prohibited from being imported or exported.

(Projects that require approval according to law can only be carried out with approval from relevant departments.) Information on holding listed companies:

Fangda Group and party acting in concert Fang Wei collectively hold 38.32% of the equity of Fangda Carbon New Materials Technology Co., Ltd. (600516.SH);

Jiangxi Fangda Steel Group Co., Ltd., a subsidiary of Fangda Group, and its subsidiary Jiangxi Automobile Leaf Spring Co., Ltd. collectively hold 40.16% of the equity of Fangda Special Steel Technology Co., Ltd. (600507.SH); Fangda Group and persons acting in concert, Fang Wei, Fang Mingxian, and Fang Pengxiang, collectively hold 39.24% of the equity of Zhongxing Commercial (000715.SZ);

Fangda Group holds 43.36% of Hainan Airlines Holdings Co., Ltd. (600221, 900945.SH) through Hainan Hanwei Investment Co., Ltd. and persons acting in concert Fang Wei, Hainan Southern Airlines Development Co., Ltd., Grand China Airlines Co., Ltd., American Aviation Ldc, Haikou Henghe Electronic Technology Co., Ltd., Hainan Shangpinyigou E-commerce Co., Ltd., HNA Flying Aviation Club Co., Ltd., Shanghai Fangda Investment Management Co., Ltd., and Hainan Hangnong Investment Co., Ltd.

Information on equity participation in listed companies:

Controlling shareholder during the reporting period

Jiujiang Pinggang Iron and Steel Co., Ltd. holds 10.91% equity of Lingyuan Iron and Steel Co., Ltd. (600231.SH) through indirect holding;

Other holdings and shareholdings

Through indirect holding Shanghai Fangda Investment Management Co., Ltd. holds 5.95% equity of Jilin Chemical Fiber Co., Ltd. (000420.SZ);

Domestic and overseas listed companies

Through indirect holding Jiangxi Pinggang Industrial Co., Ltd. holds 9.89% equity in Henan Jinma Energy Co., Ltd. (06885.HK);

Equity situation

It holds a total of 6.01% equity in Bank of Jiujiang Co., Ltd. (06190.HK) through Fangda Carbon New Materials Technology Co., Ltd. and Jiangxi Pinggang Industrial Co., Ltd.; indirectly holds 0.83% equity in Jiangxi Bank Co., Ltd. (01916.HK) through Jiangxi Pingang Steel Industrial Co., Ltd.;

Holds 0.48% equity of Caesar Tongsheng Development Co., Ltd. (000796.SZ) through HNA Aviation Group Co., Ltd.;

Holds 0.017% equity of Caesars Tongsheng Development Co., Ltd. (000796.SZ) through Hainan Airlines Holding Co., Ltd.;

Holds 1.12% equity of Hainan Meilan International Airport Co., Ltd. (0357.HK) through Hainan Airlines Holding Co., Ltd.;

Through Hainan Airlines Holdings Co., Ltd. and its subsidiaries China Xinhua Airlines Group Co., Ltd. and Changan Airlines Co., Ltd., it holds a total of 1.99% equity in China Civil Aviation Information Network Co., Ltd. (0696.HK);

It holds 4.99% equity interest in CDB Financial Leasing Co., Ltd. (1606.HK) through Hainan Airlines Holdings Co., Ltd.

Changes in controlling shareholders during the reporting period

□Applicable Not applicable

The company's controlling shareholder did not change during the reporting period.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The actual controller of the company and its persons acting in concert

Nature of actual controller: Domestic natural person

Type of actual controller: natural person

Whether to obtain the name of the actual controller in other countries, the relationship with the actual controller, and the nationality

or regional residence authority. I am China. No

Chairman of Beijing Fangda International Industrial Investment Group Co., Ltd., Director of Liaoning Fangda Group Industrial Co., Ltd. Main occupations and positions

long.

He is currently the actual controller of Fangda Carbon New Materials Technology Co., Ltd., Fangda Special Steel Technology Co., Ltd., Northeast Pharmaceutical Group Co., Ltd., ZTE-Shenyang Commercial Building (Group) Co., Ltd., and Hainan Airlines Holdings Co., Ltd., domestic and overseas listed companies that he has controlled in the past 10 years. Formerly known as Hangjin Technology Co., Ltd. (original name: Fangda Jinhua Chemical Engineering Co., Ltd.

Technology Co., Ltd.) actual controller.

Changes in actual controller during the reporting period

□Applicable Not applicable

The actual controller of the company did not change during the reporting period.

Block diagram of the property rights and control relationship between the company and the actual controller

The actual controller controls the company through trust or other asset management methods

□Applicable Not applicable

The cumulative number of pledged shares by the company’s controlling shareholder or largest shareholder and persons acting in concert accounts for 80% of the number of company shares held by them.

□Applicable Not applicable

Other legal person shareholders holding more than 10% of the shares

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Restrictions on shareholding reduction of controlling shareholders, actual controllers, reorganizers and other commitment entities □Applicable Not applicable
Specific implementation status of share repurchases during the reporting period Progress of implementation of share repurchases

□Applicable Not applicable

Implementation progress of using centralized bidding transaction method to reduce and repurchase shares □Applicable Not applicable

5. Relevant information on preference shares

□Applicable Not applicable

There were no preferred shares in the company during the reporting period.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 7 Bond-related situations □Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Section 8 Financial Report

1. Audit report

Type of audit opinion Standard unqualified opinion

Audit report signing date April 1, 2026

Name of the audit institution Baker Tilly Certified Public Accountants (Special General Partnership)

Audit report number: Tianzhuozi [2026] No. 15799

Name of CPA: Liu Zonglei, Zhou Lang

Audit report text

All shareholders of Northeast Pharmaceutical Group Co., Ltd.:

1. Audit opinions

We have audited the financial statements of Northeast Pharmaceutical Group Co., Ltd. (hereinafter referred to as Northeast Pharmaceutical Company), including the consolidated and parent company balance sheets as of December 31, 2025, the consolidated and parent company income statements for 2025, the consolidated and parent company cash flow statements, the consolidated and parent company statements of changes in shareholders' equity, and the notes to the financial statements.

We believe that the attached financial statements are prepared in accordance with the Accounting Standards for Business Enterprises in all material respects and fairly reflect the consolidated and parent company's financial status of Northeast Pharmaceutical Company on December 31, 2025, as well as the consolidated and parent company's operating results and cash flows in 2025.

2. The basis for forming audit opinions

We performed the audit work in accordance with the Chinese Certified Public Accountants Auditing Standards. Our responsibilities under these standards are further described in the "CPA's Responsibilities for the Audit of Financial Statements" section of the auditor's report. In accordance with the Chinese Code of Independence for Certified Public Accountants and the Chinese Code of Professional Ethics for Certified Public Accountants, we are independent from Northeast Pharmaceutical Company, have applied the independence requirements for public interest entities, and have fulfilled other responsibilities in professional ethics. We believe that the audit evidence we obtained is sufficient and appropriate and provides a basis for issuing an audit opinion.

3. Key audit matters

Key audit matters are matters that we, based on our professional judgment, consider to be most important in the audit of the current period's financial statements. The response to these matters is based on the audit of the financial statements as a whole and the formation of audit opinions. We do not express opinions on these matters individually.

Key audit matter How the matter was addressed in the audit

(1) Provision for bad debts of accounts receivable

As of December 31, 2025, Northeast China Manufacturing Co., Ltd. has mainly implemented the following audit procedures for this key audit matter:

The balance of accounts receivable in the pharmaceutical company's consolidated financial statements 1. Understand the company's internal controls related to the provision of bad debt provisions for accounts receivable, identify the key to 2,059,930,600 yuan, and bad debt provisions as the control process, evaluate the design of these controls, determine whether they have been implemented, and test 327,029,300 yuan. Effectiveness of system operation;

Since the balance of accounts receivable and the expected credit loss allowance 2. Review the relevant accounting policies for management's provision for bad debt provisions, analyze the management's significant amount of provisions for accounts receivable, and evaluate the rationality of the accounting estimate of the provision for bad debts for expected credit losses, including the basis for determining the accounts receivable portfolio, preparation involves significant accounting judgments and estimates, we will make separate judgments on provision for bad debts, etc.;

The provision of bad debt provisions for accounts receivable is regarded as a key audit. 3. For accounts receivable that measure expected credit losses on an individual basis, review management matters. Forecast the cash flows expected to be collected and evaluate the appropriateness of the significant assumptions used in the forecast.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Relevant disclosures are detailed in Note "V. 11. Financial Instruments" as well as the adequacy, relevance and reliability of the data, and should be verified with the external evidence obtained and V. 13. Accounts Receivable, Note "VII. 5.";

Collect accounts”. 4. For accounts receivable that measure expected credit losses on a portfolio basis, evaluate the rationality of management's division of portfolios according to credit risk characteristics; evaluate the rationality of the expected credit loss rate of accounts receivable determined by management, including the appropriateness of the major assumptions used and the appropriateness, relevance and reliability of the data; test whether management's calculation of bad debt provisions is accurate;

Obtain the aging analysis table prepared by the management, review its accuracy, pay attention to accounts receivable with long aging and overdue accounts, and verify the rationality of the management's judgment by inquiring about the customer's operating status, historical transactions and repayment status;
Combined with the confirmation of accounts receivable and the inspection of subsequent payment collections, evaluate the rationality of the management's provision for bad debt provisions for accounts receivable;
Check whether the information related to the impairment of accounts receivable has been appropriately included in the financial statements

Presentation.

(2) Provision for inventory decline in value

As of December 31, 2025, Northeast Pharmaceutical has mainly implemented the following audit procedures for this key audit matter:

The company's inventory book balance is 1,300,471,400 1. Understand the company's internal controls related to the accrual of inventory depreciation provisions, identify key control elements, inventory depreciation provisions are 118,906,000 processes, evaluate the design of these controls, determine whether they are implemented, and test operating elements. effectiveness;

Since the amount of inventory is significant and the net realizable value is 2. Select items to evaluate the rationality of the estimated selling price of the inventory, review whether the estimated selling price is consistent with the reasonable sales contract price, market sales price, historical data, etc.

Evaluate the reasonableness of the management’s estimate of the costs, sales expenses and related major impacts that will be incurred when the inventory is completed, so we calculate tax on the provision for inventory decline;

identified as a key audit matter. 4. Test whether management’s calculation of net realizable value of inventory is accurate;

For relevant disclosure details, please see Note "V. 17. Inventory 5. Obtain the year-end inventory age list of the company's inventory and review it, combined with the company's inventory" and Note "VII. 10. Inventory". Supervise inventory procedures, check the quantity, condition, validity period, etc. of inventory, and pay attention to whether there is potential obsolescence or damage;

Check whether information related to the net realizable value of inventories has been appropriately presented in the financial statements.

4. Other information

The management of Northeast Pharmaceutical (hereinafter referred to as the management) is responsible for other information. Additional information includes Northeastern Pharmaceuticals' 2025 Annual Report

information included in, other than the financial statements and our auditor's report.

Our audit opinion on the financial statements does not cover other information, nor do we express any form of assurance conclusion on other information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is relevant to the financial statements

There are material inconsistencies or the appearance of material misstatements in the statements or in our knowledge obtained during the audit.

If we determine, based on the work we have performed, that other information is materially misstated, we should report that fact. In this regard,

We have nothing to report.

5. Responsibility of management and those charged with governance for financial statements

The management is responsible for preparing financial statements in accordance with the provisions of the Accounting Standards for Business Enterprises to achieve fair reflection, and to design, execute and maintain necessary

Internal controls to ensure that financial statements are free from material misstatements due to fraud or error.

When preparing financial statements, management is responsible for assessing Northeast Pharmaceutical Company's ability to continue as a going concern and disclosing matters related to going concern.

(if applicable) and apply the going concern assumption unless management plans to liquidate, cease operations or has no other realistic alternative.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Those charged with governance at Northeastern Pharmaceuticals (hereinafter referred to as those charged with governance) are responsible for overseeing Northeastern Pharmaceuticals’ financial reporting process.

6. Responsibilities of certified public accountants for auditing financial statements

Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free of material misstatements due to fraud or error, and to issue an audit report containing an audit opinion. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit performed in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements may be due to fraud or error and are generally considered material if they are reasonably expected individually or in aggregate to affect the economic decisions made by users of financial statements based on the financial statements.

In the process of performing audit work in accordance with the auditing standards, we use professional judgment and maintain professional skepticism. At the same time, we also perform the following tasks:

(1) Identify and assess the risks of material misstatement of financial statements due to fraud or errors, design and implement audit procedures to respond to these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Because fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls, the risk of failing to detect a material misstatement resulting from fraud is higher than the risk of failing to detect a material misstatement resulting from error.

(2) Understand the internal controls related to auditing to design appropriate audit procedures.

(3) Evaluate the appropriateness of the accounting policies adopted by management and the reasonableness of accounting estimates and related disclosures.

(4) Draw conclusions on the appropriateness of management’s use of the going concern assumption. At the same time, based on the audit evidence obtained, a conclusion is drawn as to whether there is a material uncertainty about events or conditions that may cast significant doubt on Northeast Pharmaceutical Company's ability to continue as a going concern. If we conclude that significant uncertainty exists, auditing standards require us to draw the attention of users to the relevant disclosures in the financial statements in our audit report; if the disclosures are insufficient, we should issue a qualified opinion. Our conclusions are based on information available as of the date of the auditor's report. However, future events or conditions may cause Northeast Pharmaceuticals to cease to continue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities in Northeast Pharmaceutical Company to express an audit opinion on the financial statements. We are responsible for directing, supervising and performing group audits and take full responsibility for our audit opinions.

We communicate with those charged with governance regarding, among other matters, the planned audit scope, timing and significant audit findings, including communication of significant internal control deficiencies identified during our audit.

We also provide statements to those charged with governance that we have complied with ethical requirements related to independence and communicate with those charged with governance all relationships and other matters that may reasonably be considered to affect our independence, and related safeguards, if applicable.

From the matters communicated with those charged with governance, we determine which matters are most significant to the audit of the current period's consolidated financial statements and therefore constitute key audit matters. We describe these matters in our auditor's report unless laws or regulations prohibit public disclosure of the matter or, in rare circumstances, we determine that the matter should not be communicated in our auditor's report if the adverse consequences of communicating the matter in the auditor's report are reasonably expected to outweigh the benefits in the public interest.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

2. Financial statements

The unit of statements in the financial notes is: Yuan

Consolidated balance sheet

Prepared by: Northeast Pharmaceutical Group Co., Ltd.

December 31, 2025

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 3,601,754,773.77 4,468,332,416.81 Settlement reserves

Loan funds

Trading financial assets 350,622.31

Derivative financial assets

Notes receivable 440,776,337.16 534,622,306.52 Accounts receivable 1,732,901,284.52 1,959,029,870.69 Accounts receivable financing 244,430,667.26

Prepayments 101,303,973.61 140,839,635.54 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 186,387,478.52 192,507,181.41 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 1,181,565,317.16 1,323,826,723.69

Among them: data resources

Contract assets 5,307,083.08 807,489.23 Assets held for sale

Non-current assets due within one year

Other current assets 37,516,857.55 26,520,171.69 Total current assets 7,532,294,394.94 8,646,485,795.58 Non-current assets:

Grant loans and advances

debt investment

Other debt investments

long-term receivables

Long-term equity investment 4,730,908.12 6,127,595.39 Other equity instrument investments

Other non-current financial assets

investment real estate

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Fixed assets 3,488,511,658.10 3,853,775,267.88 Construction in progress 99,108,588.14 155,476,187.39 Productive biological assets

oil and gas assets

Right-of-use assets 42,667,221.78 54,642,267.12 Intangible assets 661,225,283.51 687,831,364.73

Among them: data resources

Development expenditure 746,063,347.98 717,739,470.70

Among them: data resources

Goodwill 153,403,839.82 154,447,077.24 Long-term deferred expenses 16,654,112.12 24,311,985.86 Deferred income tax assets 137,642,962.17 131,378,508.69 Other non-current assets 6,645,538.33 13,966,330.67 Total non-current assets 5,356,653,460.07 5,799,696,055.67 Total assets 12,888,947,855.01 14,446,181,851.25 Current liabilities:

Short-term borrowings 1,891,780,154.51 1,542,200,000.00 Borrowings from the Central Bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable 1,623,928,687.66 3,536,592,539.37 Accounts payable 1,238,491,928.98 1,303,925,503.92 Advance payments

Contract liabilities 87,902,786.02 104,806,624.47 Financial assets sold and repurchased

Taking deposits and placing deposits with other banks

Agent for buying and selling securities

Agent underwriting securities funds

Employee benefits payable 36,183,196.51 46,252,665.34 Taxes payable 57,711,519.18 79,952,928.07 Other payables 1,439,026,533.99 1,577,265,049.42 Including: interest payable

Dividends payable 1,597,979.18 1,597,979.18 Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 80,585,388.81 55,428,853.85 Other current liabilities 108,170,723.18 10,499,746.51 Total current liabilities 6,563,780,918.84 8,256,923,910.95 Non-current liabilities:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

insurance contract reserves

Long-term borrowings 154,600,000.00

bonds payable

Among them: preferred shares

perpetual bond

Lease liabilities 19,815,002.59 30,137,899.30 Long-term payables

Long-term employee benefits payable

Estimated liabilities 16,350,000.00

Deferred income 126,202,804.04 140,905,277.36 Deferred income tax liabilities 93,733,277.00 95,742,193.50 Other non-current liabilities 245,207,406.83 352,829,670.57 Total non-current liabilities 655,908,490.46 619,615,040.73 Total liabilities 7,219,689,409.30 8,876,538,951.68 Owners’ equity:

Share capital 1,427,088,265.00 1,429,103,265.00 Other equity instruments

Among them: preferred shares

perpetual bond

Capital reserve 2,519,017,553.86 2,490,048,047.37 Less: treasury shares 2,471,560.00 67,129,260.00 Other comprehensive income 1,570,151.87 2,582,921.95 Special reserves 6,272,155.82 6,387,512.20 Surplus reserve 205,119,439.95 192,624,557.66 General risk reserve

Undistributed profits 1,373,265,658.30 1,267,995,910.44 Total owners’ equity attributable to the parent company 5,529,861,664.80 5,321,612,954.62 Minority shareholders’ equity 139,396,780.91 248,029,944.95 Total owners’ equity 5,669,258,445.71 5,569,642,899.57 Total liabilities and owners’ equity 12,888,947,855.01 14,446,181,851.25 Legal representative: Zhou Kai Person in charge of accounting work: Li Xin Person in charge of accounting department: Xia Tian

Balance sheet of the parent company

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 1,085,594,156.52 593,861,207.73 Trading financial assets 350,622.31

Derivative financial assets

Notes receivable 286,256,949.12 205,799,241.30 Accounts receivable 110,957,384.72 108,598,638.74 Accounts receivable financing 16,557,479.53

Prepayments 30,341,434.47 33,615,796.69 Other receivables 1,018,594,324.74 857,389,936.96

Among them: interest receivable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Dividends receivable 571,116.42 571,116.42 Inventory 486,989,650.02 520,786,269.10

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets

Total current assets 3,035,642,001.43 2,320,051,090.52 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 1,176,938,595.20 1,133,989,104.53 Other equity instrument investments

Other non-current financial assets

investment real estate

Fixed assets 3,218,426,963.58 3,624,767,028.53 Construction in progress 65,815,347.51 71,970,414.28 Productive biological assets

oil and gas assets

right-of-use assets

Intangible assets 474,776,214.16 497,448,877.62

Among them: data resources

Development expenditure 74,294,072.66 61,834,535.18

Among them: data resources

goodwill

Long-term deferred expenses

Deferred income tax assets 22,153,523.04 14,410,590.14 Other non-current assets 4,914,944.83 5,036,783.31 Total non-current assets 5,037,319,660.98 5,409,457,333.59 Total assets 8,072,961,662.41 7,729,508,424.11 Current liabilities:

Short-term borrowings 987,943,022.86 705,000,000.00 Trading financial liabilities

Derivative financial liabilities

Notes payable 164,345,593.38 244,876,495.08 Accounts payable 648,760,365.34 752,697,764.66 Advance payments

Contract liabilities 59,204,813.29 36,642,907.83 Employee benefits payable 1,928,686.98 20,861,137.03 Taxes payable 12,630,744.66 37,919,778.45

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other payables 1,292,302,920.56 1,138,067,459.09 Including: interest payable

Dividends payable 817,164.32 817,164.32 Liabilities held for sale

Non-current liabilities due within one year 57,200,000.00 35,200,000.00 Other current liabilities 55,908,109.11 2,664,548.91 Total current liabilities 3,280,224,256.18 2,973,930,091.05 Non-current liabilities:

Long-term borrowings 77,000,000.00

bonds payable

Among them: preferred shares

perpetual bond

Lease liability

long-term payables

Long-term employee benefits payable

Estimated liabilities 16,350,000.00

Deferred income 122,481,257.07 136,306,837.92 Deferred income tax liabilities

Other non-current liabilities 132,400,000.00 167,600,000.00Total non-current liabilities 348,231,257.07 303,906,837.92Total liabilities 3,628,455,513.25 3,277,836,928.97Owner’s equity:

Share capital 1,427,088,265.00 1,429,103,265.00 Other equity instruments

Among them: preferred shares

perpetual bond

Capital reserve 2,479,409,519.55 2,485,060,561.88 Less: treasury shares 2,471,560.00 20,329,260.00Other comprehensive income -1,275,000.00 -1,275,000.00Special reserves

Surplus reserve 205,119,439.95 192,624,557.66 Undistributed profits 336,635,484.66 366,487,370.60 Total owners’ equity 4,444,506,149.16 4,451,671,495.14 Total liabilities and owners’ equity 8,072,961,662.41 7,729,508,424.11

Consolidated income statement

Unit: Yuan

Project 2025 2024

Total operating income 7,074,853,263.92 7,502,554,909.23 Including: operating income 7,074,853,263.92 7,502,554,909.23 Interest income

Premiums earned

Fee and commission income

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Total operating costs 6,671,639,822.19 6,888,697,612.66 Including: operating costs 4,437,711,164.91 4,596,466,279.52 Interest expenses

Handling fees and commission expenses

surrender deposit

Net compensation expenses

Net withdrawal of reserves for insurance liability contracts

policy dividend payout

Reinsurance cost

Taxes and surcharges 77,093,663.77 77,341,554.24 Sales expenses 1,264,523,861.68 1,381,892,380.61 Management expenses 702,328,686.07 741,452,499.90 Research and development expenses 172,266,427.48 117,763,982.51Financial expenses 17,716,018.28 -26,219,084.12Including: interest expenses 49,163,074.74 64,533,460.27

Interest income 90,670,813.43 128,628,643.84 Add: other income 77,879,262.30 75,573,520.70 Investment income (losses are filled in with "-"

7,809,974.98 5,160,420.26 columns)

Of which: for associates and joint ventures

-1,396,687.27

corporate investment income

Measured at amortized cost

Income from derecognition of financial assets

Exchange gains (losses are filled in with "-"

column)

Net exposure hedging gain (loss calculated as

Fill in the column with "-" sign)

Gains from changes in fair value (losses calculated as

350,622.31

Fill in the column with "-" sign)

Credit impairment losses (losses are marked with "-"

-4,492,408.75 2,544,051.19 fill in the column)

Asset impairment losses (losses are marked with "-"

-170,904,871.32 -125,566,328.87 fill in the column)

Asset disposal income (losses are marked with "-"

255,861.15 6,192,436.61 (please fill in the column)

3. Operating profit (loss is filled in with "-"

314,111,882.40 577,761,396.46 columns)

Add: Non-operating income 52,981,238.56 48,519,028.20 Less: Non-operating expenses 61,830,077.46 32,370,037.10

4. Total profit (total loss is marked with "-"

305,263,043.50 593,910,387.56 fill in the column)

Less: Income tax expenses 87,434,892.49 170,628,065.67

5. Net profit (net loss is filled in with "-"

217,828,151.01 423,282,321.89 columns)

(1) Classification by business continuity

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Net profit from continuing operations (net loss divided by

217,828,151.01 423,282,321.89 (Fill in “-”)

Net profit from discontinued operations (net loss equal to

Fill in the column with "-" sign)

(2) Classification according to ownership ownership

Net profit attributable to shareholders of the parent company 260,070,456.65 409,848,498.88
Profit and loss of minority shareholders -42,242,305.64 13,433,823.01
Net after-tax amount of other comprehensive income -1,008,512.83 629,692.33 Other comprehensive income attributable to owners of the parent company

-1,012,770.08 632,527.83 net amount after tax

(1) Others that cannot be reclassified into profit or loss

Comprehensive income

Remeasure changes in defined benefit plans

Others that cannot be transferred to profit or loss under the equity method

Comprehensive income

Fair value of other equity instrument investments

change

Fair value of the company’s own credit risk

change

5.Others

(2) Other comprehensive items that will be reclassified into profit or loss

-1,012,770.08 632,527.83 combined income

Other comprehensive items that can be transferred to profits and losses under the equity method

combined income

Changes in fair value of other debt investments
Financial assets are reclassified into other comprehensive

Amount of combined income

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation difference of foreign currency financial statements -1,012,770.08 632,527.83

7.Others

Other comprehensive income attributable to minority shareholders

4,257.25 -2,835.50 Net after tax

Total comprehensive income 216,819,638.18 423,912,014.22 Total comprehensive income attributable to owners of the parent company

259,057,686.57 410,481,026.71 amount

Total comprehensive income attributable to minority shareholders -42,238,048.39 13,430,987.51

8. Earnings per share

(1) Basic earnings per share 0.18 0.29

(2) Diluted earnings per share 0.18 0.29 If a business merger under the same control occurs in this period, the net profit realized by the merged party before the merger is: yuan, and the net profit realized by the merged party in the previous period is: yuan.

Legal representative: Zhou Kai Person in charge of accounting work: Li Xin Person in charge of accounting department: Xia Tian

Income statement of the parent company

Unit: Yuan

Project 2025 2024

Operating income 1,795,946,731.87 2,081,380,798.49

Less: Operating costs 1,026,493,599.32 1,182,045,181.11

Taxes and surcharges 47,235,460.07 47,639,175.05

Selling expenses 17,150,480.69 20,529,146.80

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Management expenses 423,511,198.82 496,054,132.62

Research and development expenses 58,523,795.73 86,747,995.91

Financial expenses -2,057,099.78 8,709,999.87

Including: interest expenses 19,751,233.06 37,772,761.14

Interest income 33,257,726.40 23,985,516.62

Add: other income 26,332,493.99 22,353,350.35

Investment income (losses are filled in with "-"

5,886,061.07 2,717,565.51 columns)

Of which: for associates and joint ventures

investment income

Money measured at amortized cost

Gains from derecognition of financial assets (losses are marked with “-”

Fill in the column)

Net exposure hedging gain (loss calculated as

Fill in the column with "-" sign)

Gains from changes in fair value (losses calculated as

350,622.31

Fill in the column with "-" sign)

Credit impairment losses (losses are marked with "-"

-4,281,373.69 430,788.57 fill in the column)

Asset impairment losses (losses are marked with "-"

-153,317,563.94 -105,260,027.29 fill in the column)

Asset disposal income (losses are marked with "-"

2,053,847.25 1,568,155.67 (please fill in the column)

2. Operating profit (loss is filled in with "-"

102,113,384.01 161,464,999.94 columns)

Add: non-operating income 44,900,433.36 11,337,749.38

Less: Non-operating expenses 21,393,647.98 30,060,967.97

3. Total profit (total loss is marked with “-”

125,620,169.39 142,741,781.35 fill in the column)

Less: Income tax expense 671,346.54 19,713,024.25

4. Net profit (net loss is filled in with "-"

124,948,822.85 123,028,757.10 columns)

(1) Net profit from continuing operations (net loss divided by

124,948,822.85 123,028,757.10 (Fill in “-”)

(2) Net profit from discontinued operations (net loss equal to

Fill in the column with "-" sign)

5. Net amount of other comprehensive income after tax

(1) Others that cannot be reclassified into profit or loss

Comprehensive income

Remeasure changes in defined benefit plans

Others that cannot be transferred to profit or loss under the equity method

Comprehensive income

Fair value of other equity instrument investments

change

Fair value of the company’s own credit risk

change

5.Others

(2) Other comprehensive items that will be reclassified into profit or loss

combined income

Other comprehensive items that can be transferred to profits and losses under the equity method

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

combined income

Changes in fair value of other debt investments
Financial assets are reclassified into other comprehensive

Amount of combined income

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements

7.Others

Total comprehensive income 124,948,822.85 123,028,757.10

7. Earnings per share

(1) Basic earnings per share

(2) Diluted earnings per share

Consolidated cash flow statement

Unit: Yuan

Project 2025 2024

1. Cash flow generated from operating activities:

Cash received from selling goods and rendering services 6,913,916,435.17 7,259,519,087.18 Net increase in customer deposits and deposits from banks

Net increase in borrowing from the central bank

Net increase in borrowing funds from other financial institutions

Cash received from premiums from the original insurance contract

Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Cash collected from interest, fees and commissions

Net increase in borrowing funds

Net increase in repurchase business funds

Net cash received from buying and selling securities on behalf of agents

Tax refunds received 11,357,802.86 18,601,190.83 Other cash received related to operating activities 425,414,903.79 312,470,397.65 Subtotal of cash inflows from operating activities 7,350,689,141.82 7,590,590,675.66 Cash paid for purchasing goods and receiving services 3,540,793,039.93 3,877,759,625.28 Net increase in customer loans and advances

Net increase in deposits with central banks and inter-banks

Cash used to pay compensation from the original insurance contract

Net increase in lending funds

Cash payments for interest, fees and commissions

Cash payment for policy dividends

Cash paid to and for employees 1,005,729,405.15 1,003,139,832.02 Various taxes and fees paid 412,938,190.33 510,220,933.27 Cash paid for other operating activities 1,284,846,025.14 1,440,709,163.88 Subtotal cash outflow from operating activities 6,244,306,660.55 6,831,829,554.45 Net cash flow generated from operating activities 1,106,382,481.27 758,761,121.21

2. Cash flow generated from investing activities:

Cash received from recovery of investment 53,156,000.17

Cash received from investment income

Disposal of fixed assets, intangible assets and other long-term

5,555,604.80 2,702,990.00 Net cash amount from asset recovery

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Received from disposal of subsidiaries and other business units

net cash

Other cash received related to investing activities

Subtotal of cash inflows from investing activities 58,711,604.97 2,702,990.00 Purchase and construction of fixed assets, intangible assets and other long-term assets

97,784,716.48 159,425,992.57 Cash paid for assets

Cash paid for investment 50,293,508.78

Net increase in mortgage loans

Obtain payment from subsidiaries and other business units

127,243,511.20 net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 148,078,225.26 286,669,503.77 Net cash flow generated from investing activities -89,366,620.29 -283,966,513.77

3. Cash flow generated from financing activities:

Cash received from investment 7,000.00

Among them: subsidiaries absorb investment income from minority shareholders

7,000.00

Cash arrived

Cash received from borrowings 2,847,800,000.00 1,772,200,000.00 Cash received from other financing activities 3,665,920,000.00 13,246,058,631.88 Subtotal of cash inflows from financing activities 6,513,727,000.00 15,018,258,631.88 Cash paid to repay debts 2,334,000,000.00 2,447,629,999.99

Distribution of dividends, profits or repayment of interest payments

196,902,896.73 206,138,041.64 cash

Including: shares paid by subsidiaries to minority shareholders

Profit, profit

Cash payments related to other financing activities 4,221,774,037.37 13,517,928,475.70 Subtotal cash outflows from financing activities 6,752,676,934.10 16,171,696,517.33 Net cash flow generated from financing activities -238,949,934.10 -1,153,437,885.45

4. The impact of exchange rate changes on cash and cash equivalents

-23,810,422.88 9,678,799.74 impact

Net increase in cash and cash equivalents 754,255,504.00 -668,964,478.27 plus: opening balance of cash and cash equivalents 2,097,991,603.94 2,766,956,082.21
Balance of cash and cash equivalents at the end of the period 2,852,247,107.94 2,097,991,603.94
Cash flow statement of the parent company

Unit: Yuan

Project 2025 2024

1. Cash flow generated from operating activities:

Cash received from selling goods and providing services 1,682,101,938.06 2,103,189,845.42 Tax refunds received 2,612,176.60 11,208,378.52 Cash received from other operating activities 403,342,190.45 784,959,846.02 Subtotal of cash inflows from operating activities 2,088,056,305.11 2,899,358,069.96 Cash paid for purchasing goods and receiving services 681,797,824.25 916,960,921.35 Cash paid to and for employees 432,083,729.95 450,208,819.95 Various taxes and fees paid 135,889,738.45 138,251,302.19 Other cash payments related to operating activities 278,764,583.62 307,864,782.50 Subtotal of cash outflows from operating activities 1,528,535,876.27 1,813,285,825.99 Net cash flow generated from operating activities 559,520,428.84 1,086,072,243.97

2. Cash flow generated from investing activities:

Cash received from recovery of investment 53,156,000.17

Cash received from investment income

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Disposal of fixed assets, intangible assets and other long-term

5,538,725.09 2,962,972.52 Net cash amount from asset recovery

Received from disposal of subsidiaries and other business units

net cash

Other cash received related to investing activities

Subtotal of cash inflows from investing activities 58,694,725.26 2,962,972.52 Purchase and construction of fixed assets, intangible assets and other long-term assets

11,929,470.03 16,477,915.97 Cash paid for assets

Cash paid for investment 93,293,508.78 209,755,022.22

Obtain payment from subsidiaries and other business units

net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 105,222,978.81 226,232,938.19 Net cash flow generated from investing activities -46,528,253.55 -223,269,965.67

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowing 1,137,800,000.00 855,000,000.00

Other cash received related to financing activities 7,500,000.00 651,243,254.53 Subtotal of cash inflows from financing activities 1,145,300,000.00 1,506,243,254.53 Cash paid to repay debts 946,000,000.00 1,523,200,000.00 distributed dividends, profits or paid interest

164,335,017.25 183,592,976.89 cash

Cash payments related to other financing activities 40,800,648.21 623,845,378.19 Subtotal cash outflows from financing activities 1,151,135,665.46 2,330,638,355.08 Net cash flow generated from financing activities -5,835,665.46 -824,395,100.55

4. The impact of exchange rate changes on cash and cash equivalents

-20,913,074.13 7,144,314.08 impact

Net increase in cash and cash equivalents 486,243,435.70 45,551,491.83

Add: Balance of cash and cash equivalents at the beginning of the period 570,085,850.12 524,534,358.29

Balance of cash and cash equivalents at the end of the period 1,056,329,285.82 570,085,850.12

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Consolidated statement of changes in owners’ equity

Amount of current period

Unit: Yuan

2025

Owner's equity attributable to parent company

Other equity instruments

Items General Minority shareholders Owner's equity Equity Priority Yong Other Capital reserves Less: Treasury Other comprehensive special reserves Surplus Risks Undistributed profits Others Subtotal Equity Total retained shares Profit reserves

he prepares

stocks bonds

192,6

Ending balance of the previous year 1,429,10 2,490,04 67,129, 2,582,9 6,387,5 1,267,99 5,321,612, 248,029, 5,569,642,

24,55

Amount 3,265.00 8,047.37 260.00 21.95 12.20 5,910.44 954.62 944.95 899.57 7.66

Add: Accounting

policy change

upfront difference

Error correction

Others

192,6

Opening balance of the current year 1,429,10 2,490,04 67,129, 2,582,9 6,387,5 1,267,99 5,321,612, 248,029, 5,569,642,

24,55

Amount 3,265.00 8,047.37 260.00 21.95 12.20 5,910.44 954.62 944.95 899.57

7.66

3. Increases and decreases in this period - - - - 12,49 -

28,969,5 105,269, 208,248,71 99,615,546 Liquidity amount (reduced by 2,015,00 64,657, 1,012,7 115,356 4,882 108,633,

06.49 747.86 0.18 .14 (please fill in the column with "-") 0.00 700.00 70.08 .38 .29 164.04

(1) Comprehensive income 260,070, 259,057,68 216,819,63

1,012,7 42,238,0

Total 456.65 6.57 8.18 70.08 48.39

(2) Owner’s investment 28,969,5 91,612,206 28,160,960

2,015,00 64,657, 63,451,2

Investment and reduction of capital 06.49 .49 .00 0.00 700.00 46.49

- 1. owner input

46,793,0 46,793,000 common shares

00.00 .00

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other equity workers

Tool holder invests

Ben

3． share-based payment plan

into owner's equity

Amount

28,969,5 91,612,206 74,953,960 4. Others 2,015,00 64,657, 16,658,2 06.49 .49 .00 0.00 700.00 46.49

12,49 - - - -

(3) Profit distribution 4,882 154,800, 142,305,82 2,943,86 145,249,69 .29 708.79 6.50 9.16 5.66

12,49 -

1． Withdrawal of surplus

4,882 12,494,8

Accumulate

.29 82.29

extract general wind

Risk preparation

3． Shares to owners - - - - (or shareholders) 142,305, 142,305,82 2,943,86 145,249,69 826.50 6.50 9.16 5.66

4． Others

(4) Ownership rights

Profit internally carried forward

1． Capital reserve transfer

Increase capital (or shares

this)

Transfer of surplus reserve

Increase capital (or shares

this)

3． surplus reserve

make up for losses

4． defined benefit plan

Transfer balance carry forward

savings income

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other comprehensive income

Earnings carried forward to retained earnings

6． Others

(5) Special reserves 115,356

115,356.38 115,356.38 .38

13,325, 13,325,537 13,325,537 1. Extract this period

537.70 .70 .70

- - 2． Used in this period 13,440, 13,440,894 13,440,894

894.08 .08 .08

(6) Others

205,1

Ending balance of the current period 1,427,08 2,519,01 2,471,5 1,570,1 6,272,1 1,373,26 5,529,861, 139,396, 5,669,258,

19,43

Amount 8,265.00 7,553.86 60.00 51.87 55.82 5,658.30 664.80 780.91 445.71

9.95

Amount of last period

Unit: Yuan

2024

Owner's equity attributable to parent company

Other equity instruments

he prepares

stocks bonds

180,3

Ending balance of the previous year 1,429,10 2,467,79 110,717 1,950,3 6,455,3 1,013,36 4,988,269, 170,472, 5,158,742,

21,68

Amount 3,265.00 6,232.36 ,740.00 94.12 22.50 0,613.77 769.70 520.27 289.97 1.95

Add: Accounting

policy change

upfront difference

Error correction

Others

Opening balance of the current year 1,429,10 2,467,79 110,717 1,950,3 6,455,3 180,3 1,013,36 4,988,269, 170,472, 5,158,742, Amount 3,265.00 6,232.36 ,740.00 94.12 22.50 21,68 0,613.77 769.70 520.27 289.97

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

1.95

3. Increase or decrease in this period - - 12,30

22,251,8 632,527 254,635, 333,343,18 77,557,4 410,900,60 (reduced by 43,588, 67,810. 2,875

15.01 .83 296.67 4.92 24.68 9.60 (please fill in the column with "-") 480.00 30 .71

(1) Comprehensive income 632,527 409,848, 410,481,02 13,433,8 423,914,84 Total .83 498.88 6.71 23.01 9.72

(2) Owner’s investment 22,251,8 65,840,295 65,840,295

43,588,

Investment and reduction of capital 15.01 .01 .01

480.00

1． owner input

of common stock

Other equity workers

Tool holder invests

Ben

3． share-based payment plan

22,251,8 22,251,815 22,251,815 into owner’s equity

15.01 .01 .01amount

43,588,480 43,588,480 4. Others 43,588,

.00 .00 480.00

12,30 - - -

64,123,6

(3) Profit distribution 2,875 155,213, 142,910,32 78,786,724 01.67

.71 202.21 6.50 .83

12,30 -

1． Withdrawal of surplus

2,875 12,302,8

Accumulate

.71 75.71

extract general wind

Risk preparation

3． To the owner - - -

64,123,6

(or shareholders) 142,910, 142,910,32 78,786,724

01.67

Match 326.50 6.50 .83 4. Others

(4) Ownership rights

Profit internally carried forward

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

1． Capital reserve transfer

Increase capital (or shares

this)

Transfer of surplus reserve

Increase capital (or shares

this)

3． surplus reserve

make up for losses

4． defined benefit plan

Transfer balance carry forward

savings income

Other comprehensive income

Earnings carried forward to retained earnings

6． Others

(5) Special reserves 67,810. -67,810.30 -67,810.30

16,249, 16,249,227 16,249,227 1. Extract this period

227.55 .55 .55

- - 2． Used in this period 16,317, 16,317,037 16,317,037

037.85 .85 .85

(6) Others

192,6

Ending balance of the current period 1,429,10 2,490,04 67,129, 2,582,9 6,387,5 1,267,99 5,321,612, 248,029, 5,569,642,

24,55

Amount 3,265.00 8,047.37 260.00 21.95 12.20 5,910.44 954.62 944.95 899.57

7.66

Statement of changes in owner’s equity of the parent company

Amount of current period

Unit: Yuan

2025

Project

Share capital Other equity instruments Capital reserves Less: Inventories Other comprehensive special reserves Surplus reserves Undistributed profits Other owners’ equity

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The total income reserve of Youyong shares is

Continue first

him

stocks bonds

2,485,060,5 20,329,2 192,624 366,487,37 4,451,671,4

1. Closing balance of the previous year 1,429,103,265.00 1,275,00

61.88 60.00,557.66 0.60 95.14 0.00

Add: Changes in accounting policies

Early error correction

Others

2,485,060,5 20,329,2 192,624 366,487,37 4,451,671,4

2. Balance at the beginning of the year 1,429,103,265.00 1,275,00

61.88 60.00,557.66 0.60 95.14 0.00

3. Amount of increase or decrease in the current period (minus 12,494,

-2,015,000.00 5,651,042.3 17,857,7 29,851,885 7,165,345.9 (please fill in with "-") 882.29

3 00.00 .94 8

124,948,82 124,948,822

(1) Total comprehensive income

2.85 .85

(2) Owner’s investment and capital reduction 10,191,657.

-2,015,000.00 5,651,042.3 17,857,7

Ben 67

3 00.00

1． Common stock invested by owners

Other equity instrument holders invest

invest capital

3． Share-based payments are included in ownership rights

amount of profit

10,191,657. 4. Others -2,015,000.00 5,651,042.3 17,857,7

3 00.00

12,494,

(3) Profit distribution 154,800,70 142,305,826 882.29

8.79 .50 -

12,494,

1． Withdrawal of surplus reserve 12,494,882

882.29

.29

To the owner (or shareholder)

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

allocate

- 1. Others 142,305,82 142,305,826

6.50 .50

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves into capital (or

equity)

Conversion of surplus reserves into capital (or

equity)

3． Surplus reserve to cover losses

4． Defined benefit plan change balance

Transfer to retained earnings

Other comprehensive income carried forward and retained

income

6． Others

(5) Special reserves

13,325, 13,325,537. 1. Extract this period

537.70 70

- 1. This period uses 13,325, 13,325,537.

537.70 70

(6) Others

2,479,409,5 2,471,56 205,119 336,635,48 4,444,506,1

4. Ending balance of the current period 1,427,088,265.00 1,275,00

19.55 0.00 ,439.95 4.66 49.16

0.00

Amount of last period

Unit: Yuan

2024

Other equity instruments

Items: Inventory Other Comprehensive Special Reserves Surplus Company Owners’ Equity Capital Other Capital Reserves Undistributed Profits Others

First, continue the stock income reserve and total it.

stocks bonds

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

2,462,808,7 110,717, 180,321 398,671,81 4,358,912,7

1. Closing balance of the previous year 1,429,103,265.00 1,275,00

46.87 740.00 ,681.95 5.71 69.53 0.00

Add: Changes in accounting policies

Early error correction

Others

2,462,808,7 110,717, 180,321 398,671,81 4,358,912,7

2. Balance at the beginning of the year 1,429,103,265.00 1,275,00

46.87 740.00 ,681.95 5.71 69.53 0.00

Increases and decreases in the current period (minus 22,251,815. 12,302, 92,758,725.

90,388,4 32,184,445

Please fill in the column with "-" sign less) 01 875.71 61 80.00 .11

123,028,75 123,028,757

(1) Total comprehensive income

7.10 .10

(2) Owner’s investment and capital reduction 22,251,815. 112,640,295

90,388,4

Ben 01.01

80.00

1． Common stock invested by owners

Other equity instrument holders invest

invest capital

3． Amount of share-based payment included in owner's equity 22,251,815. 22,251,815. Equity 01 01 -

90,388,480. 4. Others 90,388,4

80.00

12,302,

(3) Profit distribution 155,213,20 142,910,326 875.71

2.21.50 -

12,302,

1． Withdrawal of surplus reserve 12,302,875

875.71

.71

- 1. To the owner (or shareholder)

142,910,32 142,910,326 allocation

6.50 .50 3． Others

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves into capital (or

equity)

Conversion of surplus reserves into capital (or

equity)

3． Surplus reserve to cover losses

4． Defined benefit plan change balance

Transfer to retained earnings

Other comprehensive income carried forward and retained

income

6． Others

(5) Special reserves

16,249, 16,249,227. 1. Extract this period

227.55 55

- 1. Used in this period 16,249, 16,249,227. 227.55 55

(6) Others

2,485,060,5 20,329,2 192,624 366,487,37 4,451,671,4

4. Ending balance of the current period 1,429,103,265.00 1,275,00

61.88 60.00,557.66 0.60 95.14 0.00

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

3. Basic situation of the company

(1) Basic situation

Northeast Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Company" or the "Company") is a joint-stock company established by Northeast Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Dongyao Group") as the sole sponsor through targeted fundraising, approved by the Shenyang Municipal Economic Structural Reform Commission's Shen Ti Gaifa (1993) No. 76 document, on May 23, 1996. Nikkei China Securities Regulatory Commission's Zhengjianfazi (1996) No. 42 document approved listing and trading on the Shenzhen Stock Exchange. The stock abbreviation is Northeast Pharmaceutical and the stock trading code is 000597.

In 2018, Liaoning Fangda Group Industrial Co., Ltd. (hereinafter referred to as "Fangda Group") purchased non-publicly issued shares in cash and centralized bidding transactions on the Shenzhen Stock Exchange, increasing its holdings of 148,153,873 shares of the company. After the shareholding increase, the controlling shareholder of the company was changed from Northeast Pharmaceutical Group Co., Ltd. to Liaoning Fangda Group Industrial Co., Ltd.

July 4, 2021 On the same day, Dongyao Group and Shenyang Shengjing Financial Holdings Investment Group Co., Ltd. (hereinafter referred to as "Shengjing Financial Holdings Group") and Jiangxi Fangda Steel Group Co., Ltd. (hereinafter referred to as "Fangda Steel") signed the "Northeast Pharmaceutical Group Co., Ltd., Shenyang Shengjing Financial Holdings Investment Group Co., Ltd. and Jiangxi Fangda Steel" Steel Group Co., Ltd.'s Share Transfer Agreement on Northeast Pharmaceutical Group Co., Ltd." Dongyao Group and Shengjing Financial Holdings Group transferred their combined 254,865,083 unrestricted tradable shares of Bei Pharmaceutical to Fangda Steel, accounting for 18.91% of the company's total share capital. After this equity change, Fangda Steel needs to fulfill its comprehensive tender offer obligations.

On September 27, 2021, the transfer procedures for the shares in the tender offer were completed. Fangda Steel holds 188,366,359 shares of the company, accounting for 13.98% of the company's total share capital.

On October 13, 2021, Dongyao Group and Shengjing Financial Holdings Group completed the transfer registration procedures with the China Securities Depository and Clearing Co., Ltd. to transfer their combined 254,865,083 company shares to Fangda Steel. After the share transfer was completed, Fangda Iron and Steel held 443,231,442 shares of the company, accounting for 32.88% of the company's total share capital. Fangda Iron and Steel became the company's largest shareholder; Fangda Iron and Steel was a wholly-owned subsidiary of Fangda Group. Fangda Iron and Steel, Fangda Group and the actual controller Mr. Fang Wei constituted persons acting in concert, and the actual control of the company did not change.

On July 14, 2022, the seventh meeting of the company's ninth board of directors reviewed and approved the "Proposal on Adjusting the Grant Price for the First Grant Part of the Company's 2022 Restricted Stock Incentive Plan" and the "Proposal on Adjusting the List and Grant Quantity of Partial Incentives for the First Grant of the Company's 2022 Restricted Stock Incentive Plan". The company adjusted the exercise price to 2.716 in accordance with the authorization of the shareholders' meeting. Yuan/share, and the list and number of incentives granted to some of the incentive targets for the first time under this incentive plan have been adjusted. The number of incentive targets actually participating in the exercise of the rights granted to this equity incentive plan for the first time is 525 people, the number of restricted shares issued through private placement is 76,510,000 shares, the exercise price is 2.716 yuan/share, and the registered capital after the change is RMB 1,424,383,265.00 yuan.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

On September 29, 2022, the 11th meeting of the 19th Board of Directors of the company reviewed and approved the "Proposal on Granting Reserved Partial Restricted Stocks to Incentive Objects". The number of incentive objects granted by the company to actually participate in the exercise of the rights is 119 people, the number of restricted shares issued through private placement is 9,933,000 shares, the exercise price is 2.716 yuan/share, and the registered capital after the change is RMB 1,434,316,265.00 yuan.

The company held the 17th meeting of the 9th board of directors and the 13th meeting of the 9th board of supervisors on July 25, 2023, and held the first extraordinary shareholders meeting of 2023 on August 10, 2023. The company reviewed and approved the "Proposal on the Plan to Repurchase and Cancel Part of the Restricted Stocks that have been granted but have not yet been released from the 2022 Restricted Stock Incentive Plan" and "On the Adjustment of the 2022 Restricted Stock Incentive Plan" "Proposal on the First Grant and Reserved Grant Repurchase Price of the Restricted Stock Incentive Plan in 2018", the company repurchased and canceled all or part of the 5,213,000 restricted shares held by the original 31 incentive targets that had been granted and have not been released from sale, with a repurchase price of RMB 2.616 per share, and the registered capital after the change was RMB 1,429,103,265.00.

The company held the 37th meeting of the 9th board of directors and the 25th meeting of the 9th board of supervisors on March 5, 2025, and reviewed and approved the "About the Plan to Repurchase and Cancel 2022 "Proposal on Part of the Restricted Stock Incentive Plan for the Year of Restricted Stocks that have been granted but have not yet been released from sales restrictions". The company repurchased and canceled all 160,000 restricted shares that were granted but have not been released from sales restrictions held by the original incentive target. The repurchase price was 2.516 yuan per share, and the registered capital after the change was RMB 1,427,088,265.00.

As of December 31, 2025, the company's registered capital was RMB 1,427,088,265.00.

(2) Company registration place, organizational form and headquarters address

The company's unified social credit code/registration number: 91210100243490227Y; legal representative: Zhou Kai; registration place and headquarters address: Kunming Lake Street, Shenyang Economic and Technological Development Zone; organizational form is a joint-stock company; business period: June 10, 1993 to June 10, 2043.

(3) The main business activities actually engaged in by the company

The company belongs to the pharmaceutical manufacturing industry, and its main business covers chemical pharmaceuticals (raw materials, preparations), pharmaceutical business (wholesale, chain), pharmaceutical engineering (pharmaceutical design, manufacturing and installation), biomedicine (biological diagnostic reagents) and other sectors, forming a pharmaceutical upstream and downstream industry and service cluster. The company has a series of high-quality products such as vitamin products, anti-infective products, reproductive system and sex hormone products, nervous system products, anti-AIDS products, digestive tract products, hemp essence and hemp-containing series products, other general pharmaceutical products, in vitro (biological) diagnostic reagent products, products in the general health field, chemical raw materials, pharmaceutical intermediates and preparation products.

(4) The name of the parent company and the ultimate parent company of the group

The parent company of the company is Jiangxi Fangda Steel Group Co., Ltd., and the ultimate parent company is Liaoning Fangda Group Industrial Co., Ltd., and the actual controller is Fang Wei.

(5) Approval and issuance agency of financial reports and date of approval and issuance of financial reports

These financial statements and notes to the financial statements were approved for issuance by the tenth meeting of the tenth board of directors of the company on April 1, 2026.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

4. Basis for preparation of financial statements

(1) Basis for preparation

These financial statements are prepared based on the company's going concern assumption, actual transactions, the relevant provisions of the Accounting Standards for Business Enterprises, and based on the important accounting policies and accounting estimates described below.

(2) Continued operations

The Company evaluated its ability to continue operating for the 12 months from the end of the reporting period and found no events or circumstances that cast any significant doubt on its ability to continue operating. Therefore, these financial statements have been prepared on the basis of going concern assumption.

5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

The company determines the depreciation of fixed assets, amortization of intangible assets and revenue recognition policies based on its own production and operation characteristics. Please refer to Notes 5, 24, 29 and 37 for specific accounting policies.

Statement on compliance with corporate accounting standards

The financial statements prepared by the Company based on the above preparation basis comply with the requirements of the latest Accounting Standards for Business Enterprises and their application guidelines, interpretations and other relevant regulations promulgated by the Ministry of Finance (collectively, the "Accounting Standards for Business Enterprises"), and truly and completely reflect the Company's financial status, operating results, cash flow and other relevant information.

In addition, the preparation of this financial report refers to the presentation and disclosure requirements of the "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial Reports" (revised in 2023) issued by the China Securities Regulatory Commission.

Accounting period

The Company's fiscal year runs from January 1 to December 31 of the Gregorian calendar.

Business cycle

The company's operating cycle is 12 months.

Accounting standard currency

The Company and its domestic subsidiaries use RMB as their functional currency for accounting. The Company's overseas subsidiaries determine their recording currency based on the currency of the main economic environment in which they operate. The currency used by the Company in preparing these financial statements is RMB.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Determination method and selection basis of importance standards

Applicable □Not applicable

Project Materiality Criteria

The company identifies individual projects under construction with an amount exceeding RMB 20 million as important projects under construction.

Construction in progress.

The company identifies a single capitalized R&D project with an amount exceeding RMB 20 million as an important capitalized R&D project.

Important research and development projects.

The company recognizes accounts payable with a single account payable amount exceeding 0.1% of total assets as important accounts payable with an age exceeding 1 year.

Accounts payable as important.

The company will include other important other payables with a single other payable amount exceeding 0.1% of total assets and an aging of more than 1 year.

Other payables deemed important.

The company identifies pending litigation with a single litigation amount exceeding 0.1% of total assets as contingencies arising from major pending litigation or arbitration and its financial impact

Significant pending litigation.

Other items that management considers important in light of the specific circumstances in which the company operates.

Accounting treatment methods for business combinations under the same control and those not under the same control

(1) Accounting treatment for business combinations under common control

The company acquires a business combination under the same control in one transaction or implements it step by step through multiple transactions. The assets and liabilities acquired in the business combination are measured according to the book value of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. The difference between the book value of the net assets acquired by the company and the book value of the merger consideration paid (or the total face value of the shares issued) shall be adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings shall be adjusted.

(2) Accounting treatment for business combinations not under common control

On the acquisition date, the Company recognizes the difference between the merger cost and the fair value share of the acquiree's identifiable net assets acquired in the merger as goodwill; if the merger cost is less than the fair value share of the acquiree's identifiable net assets acquired in the merger, the difference is first recognized as goodwill. The fair value of the acquiree's identifiable assets, liabilities and contingent liabilities and the measurement of merger costs are reviewed. After review, if the merger cost is still less than the fair value share of the acquiree's identifiable net assets obtained in the merger, the difference is included in the current profit and loss.

The merger of enterprises not under the same control carried out step by step through multiple transactions should be handled in the following order:

①Adjust the initial investment cost of long-term equity investment. If the equity held before the acquisition date is accounted for using the equity method, it will be remeasured according to the fair value of the equity on the acquisition date, and the difference between the fair value and its book value will be included in the investment income of the current period; if the equity of the purchased party held before the acquisition date involves other comprehensive income and changes in other owners' equity under the equity method accounting, it will be converted into the current income on the acquisition date, except for other comprehensive income arising from the investee's remeasurement of the net liabilities or changes in net assets of the defined benefit plan and changes in the fair value of other equity instrument investments held.

② Recognize goodwill (or the amount included in the current profit and loss). Compare the initial investment cost of the long-term equity investment after the first step of adjustment with the fair value share of the subsidiary's identifiable net assets on the purchase date. If the former is greater than the latter, the difference is recognized as goodwill; if the former is less than the latter, the difference is included in the current profit and loss.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Situation in which equity is disposed of step by step through multiple transactions to the point where control of the subsidiary is lost

① The principle of judging whether various transactions in the process of disposing of equity in steps to losing control of the subsidiary belong to the "package transaction" principle

If the terms, conditions and economic impact of various transactions related to the disposal of equity investments in subsidiaries meet one or more of the following circumstances, it usually indicates that multiple transactions should be accounted for as a package deal:

These transactions were entered into at the same time or with consideration of mutual effects;
These transactions as a whole can achieve a complete business result;
The occurrence of a transaction depends on the occurrence of at least one other transaction;
A transaction is uneconomical on its own but is economical when considered together with other transactions.

② Various transactions in the process from the step-by-step disposal of equity to the loss of control over the subsidiary belong to the accounting treatment method of "package transactions"

If the various transactions involving the disposal of equity investments in a subsidiary until the loss of control belong to a package transaction, each transaction should be accounted for as a transaction in which the subsidiary is disposed of and control is lost; however, the difference between the price of each disposal and the share of the net assets of the subsidiary corresponding to the disposal investment before the loss of control shall be recognized as other comprehensive income in the consolidated financial statements, and shall be transferred to the profits and losses of the current period when control is lost.

In the consolidated financial statements, the remaining equity should be remeasured according to its fair value on the date when control is lost. The difference between the sum of the consideration obtained for disposing of the equity and the fair value of the remaining equity, minus the share of the original company's net assets calculated continuously from the date of purchase based on the original shareholding ratio, shall be included in the investment income in the period when control is lost. Other comprehensive income related to the equity investment of the atomic company shall be converted into current investment income or retained earnings when control is lost.

③ The various transactions in the process from the step-by-step disposal of equity to the loss of control over the subsidiary do not belong to the accounting treatment method of "package transaction"

If the investment in a subsidiary is disposed of without losing control, the difference between the disposal price in the consolidated financial statements and the share of the subsidiary's net assets corresponding to the disposal investment shall be included in the capital reserve (capital premium or equity premium). If the capital premium is insufficient to offset it, the retained earnings shall be adjusted.

If the investment in a subsidiary is disposed of and control is lost, the remaining equity in the consolidated financial statements shall be remeasured according to its fair value on the date when control is lost. The difference between the sum of the consideration obtained for disposing of the equity and the fair value of the remaining equity, minus the share of the original subsidiary's net assets calculated continuously from the date of purchase based on the original shareholding ratio, shall be included in the investment income in the period when control is lost. Other comprehensive income related to the equity investment in the original subsidiary shall be converted into current investment income or retained earnings when control is lost.

Judgment standards for control and preparation methods of consolidated financial statements

The scope of the company's consolidated financial statements should be determined based on control.

Control means that the company has power over the investee, enjoys variable returns by participating in the investee's relevant activities, and has the ability to use its power over the investee to affect its return amount. Relevant activities refer to activities that have a significant impact on the return of the investee.

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The relevant activities of the investee should be judged based on the specific circumstances, which usually include the sale and purchase of goods or services, the management of financial assets, the purchase and disposal of assets, research and development activities, and financing activities.

The Company makes a judgment on whether to control the investee based on comprehensive consideration of all relevant facts and circumstances. Once changes in relevant facts and circumstances lead to changes in the relevant elements involved in the definition of control, the company will reassess.

When judging whether to include a structured entity into the scope of consolidation, the company evaluates whether it controls the structured entity based on comprehensively considering all facts and circumstances, including assessing the purpose and design of the structured entity, identifying the type of variable returns, and whether it assumes part or all of the return variability by participating in its related activities.

The consolidated financial statements are based on the financial statements of the parent company and its subsidiaries and other relevant information, and are prepared by the company in accordance with the "Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements".

Classification of joint arrangements and accounting treatment of joint operations

(1) Identification and classification of joint arrangements

A joint arrangement refers to an arrangement that is jointly controlled by two or more parties. A joint arrangement has the following characteristics: (1) Each participant is bound by the arrangement; (2) Two or more participants exercise joint control over the arrangement. No one participant can solely control the arrangement, and any participant with joint control of the arrangement can prevent other participants or combinations of participants from individually controlling the arrangement.

Joint control refers to the shared control over an arrangement in accordance with relevant agreements, and the relevant activities of the arrangement must be decided only with the unanimous consent of the parties sharing control rights.

Joint arrangements are divided into joint operations and joint ventures. A joint operation refers to a joint arrangement in which the joint venture party enjoys the relevant assets of the arrangement and assumes the relevant liabilities of the arrangement. A joint venture refers to a joint arrangement in which the joint venture party only has rights to the net assets of the arrangement.

(2) Accounting treatment of joint arrangements

Joint operating participants shall confirm the following items related to their share of interests in the joint operation, and conduct accounting treatments in accordance with the relevant accounting standards for enterprises: ① Confirm the assets held individually, and recognize the assets held jointly according to their shares; ② Confirm the liabilities assumed individually, in order to And recognize jointly borne liabilities according to their shares; ③ Recognize the income generated from the sale of their share of the joint operation output; ④ Recognize the income generated by the joint operation from the sale of output according to their shares; ⑤ Recognize the expenses incurred individually, and recognize the expenses incurred from the joint operation according to their shares.

Participants in a joint venture shall account for investments in joint ventures in accordance with the "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment".

The Company accounts for investments in joint ventures in accordance with the provisions on equity method accounting for long-term equity investments.

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Determination standards for cash and cash equivalents

The cash in the cash flow statement refers to the company's cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments that are held for a short period (generally due within three months from the date of purchase), are highly liquid, are easily convertible into known amounts of cash, and have little risk of changes in value.

Foreign currency business and foreign currency statement conversion

(1) Foreign currency business conversion

When foreign currency transactions are initially recognized, they are converted into RMB amounts using the spot exchange rate on the date of the transaction. On the balance sheet date, foreign currency monetary items are converted at the spot exchange rate on the balance sheet date. The exchange differences arising from different exchange rates, except for the exchange differences on the principal and interest of special foreign currency borrowings related to the acquisition and construction of assets that meet the capitalization conditions, are included in the current profits and losses; historical costs are used. Foreign currency non-monetary items measured at this time are still translated using the spot exchange rate on the date of the transaction, and their RMB amounts do not change; foreign currency non-monetary items measured at fair value are translated using the spot exchange rate on the date the fair value is determined, and the difference is included in the current profit and loss or other comprehensive income.

(2) Conversion of foreign currency financial statements

Assets and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date; owners' equity items, except for "undistributed profits" items, are translated using the spot exchange rate on the date of the transaction; income and expense items in the income statement are translated using the spot exchange rate on the date of the transaction. The difference in the translation of foreign currency financial statements arising from the above translation is recognized as other comprehensive income.

Financial instruments

(1) Recognition and derecognition of financial instruments

The Company recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract.

Buying and selling financial assets in a regular manner is recognized and derecognized based on transaction date accounting. Regular way buying and selling of financial assets means collecting or delivering financial assets within the time limit specified by regulations or common practice in accordance with the terms of the contract. The trading day refers to the date when the company commits to buy or sell financial assets.

If the following conditions are met, a financial asset (or part of a financial asset, or part of a group of similar financial assets) shall be derecognised, that is, it shall be written off from its account and balance sheet:

①The right to receive cash flows from financial assets expires;

② Transfers the right to receive cash flows from financial assets, or assumes the obligation to pay the collected cash flows in full to a third party in a timely manner under a "pass-through agreement"; and (a) substantially transfers substantially all risks and rewards of ownership of financial assets, or (b) although substantially neither transfers nor retains substantially all risks and rewards of ownership of financial assets, it gives up control of the financial assets.

(2) Classification and measurement of financial assets

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Upon initial recognition, the Company's financial assets are classified according to the Company's business model for managing financial assets and the contractual cash flow characteristics of the financial assets into: financial assets measured at amortized cost, financial assets measured at fair value with changes included in other comprehensive income, and financial assets measured at fair value with changes included in current profits and losses. The subsequent measurement of a financial asset depends on its classification.

The Company's classification of financial assets is based on the Company's business model for managing financial assets and the cash flow characteristics of financial assets.

Financial assets measured at amortized cost

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at amortized cost: the company's business model for managing the financial asset is to collect contractual cash flows as the goal; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. For such financial assets, the actual interest rate method is used and subsequent measurement is carried out at amortized cost. Gains or losses arising from amortization or impairment are included in the current profits and losses.

Debt instrument investments measured at fair value through other comprehensive income

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at fair value with changes included in other comprehensive income: the company's business model for managing this financial asset is to collect contractual cash flows as well as sell financial assets as the goal; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. For such financial assets, fair value is used for subsequent measurement. The discount or premium is amortized using the effective interest method and recognized as interest income or expense. Except for impairment losses and exchange differences on foreign currency monetary financial assets that are recognized as current profits and losses, changes in the fair value of such financial assets are recognized as other comprehensive income until the financial assets are derecognised, and their accumulated gains or losses are transferred to current profits and losses. Interest income related to such financial assets is included in the current profit and loss.

Equity instrument investments measured at fair value through other comprehensive income

The Company irrevocably chooses to designate some non-trading equity instrument investments as financial assets measured at fair value with changes included in other comprehensive income. Only relevant dividend income will be included in the current profit and loss, and changes in fair value will be recognized as other comprehensive income until the financial assets are derecognised, and their accumulated gains or losses will be transferred to retained earnings.

Financial assets measured at fair value with changes included in current profits and losses

Financial assets other than the above-mentioned financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income are classified as financial assets measured at fair value through profit or loss for the current period. At the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assets measured at fair value with changes included in current profits and losses. For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.

All affected related financial assets will be reclassified if and only if the Company changes its business model for managing financial assets.

For financial assets measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other types of financial assets are included in their initial recognition amount.

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(3) Classification and measurement of financial liabilities

The Company's financial liabilities are classified upon initial recognition into: financial liabilities measured at amortized cost and financial liabilities measured at fair value with changes included in current profits and losses.

Financial liabilities that meet one of the following conditions can be designated as financial liabilities at fair value through current profits and losses at the time of initial measurement: ① This designation can eliminate or significantly reduce accounting mismatches; ② According to the group's risk management or investment strategy stated in formal written documents, the financial liability portfolio or the financial assets and financial liability portfolio are managed and performance evaluated based on fair value, and reported to key management personnel within the group on this basis; ③ The financial liability contains embedded derivatives that need to be separated separately.

The Company determines the classification of financial liabilities at initial recognition. For financial liabilities measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other financial liabilities are included in their initial recognition amount.

The subsequent measurement of financial liabilities depends on their classification:

①Financial liabilities measured at amortized cost

For such financial liabilities, the actual interest rate method is adopted and subsequent measurement is carried out at amortized cost.

②Financial liabilities measured at fair value and changes included in current profits and losses

Financial liabilities measured at fair value through profit or loss for the current period include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as measured at fair value through profit or loss for the current period upon initial recognition.

(4) Offset of financial instruments

If the following conditions are met at the same time, financial assets and financial liabilities will be listed in the balance sheet as the net amount after offsetting each other: it has the legal right to offset the recognized amount, and the legal right is currently enforceable; it plans to settle on a net basis, or to realize the financial assets and pay off the financial liabilities at the same time.

(5) Impairment of financial assets

The Company recognizes loss provisions based on expected credit losses for financial assets measured at amortized cost, receivables and debt investments measured at fair value with changes included in other comprehensive income, contract assets defined in "Accounting Standards for Business Enterprises No. 14 - Revenue", lease receivables and financial guarantee contracts, etc.

Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected to be received by the company, discounted at the original actual interest rate, that is, the present value of all cash shortfalls.

The company considers reasonable and well-founded information about past events, current conditions and predictions of future economic conditions, weights the risk of default, calculates the probability-weighted amount of the present value of the difference between the cash flow receivable in the contract and the cash flow expected to be received, and recognizes expected credit losses.

①General model of expected credit losses

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If the credit risk of the financial instrument has increased significantly since initial recognition, the Company will measure its loss provision at an amount equivalent to the expected credit losses of the financial instrument throughout its lifetime; if the credit risk of the financial instrument has not increased significantly since initial recognition, the Company will measure its loss provisions at an amount equivalent to the expected credit losses of the financial instrument within the next 12 months. The resulting increase or reversal of loss provisions is included in the current profit and loss as impairment losses or gains. For the Company’s specific assessment of credit risk, please refer to Note “12. Risks Related to Financial Instruments”.

Generally, if it is overdue for more than 30 days, the Company considers that the credit risk of the financial instrument has increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not increased significantly since initial recognition.

Specifically, the Company divides the process of credit impairment for financial instruments that are not credit-impaired when purchased or originated into three stages. There are different accounting treatment methods for the impairment of financial instruments at different stages:

Stage 1: Credit risk has not increased significantly since initial recognition

For financial instruments at this stage, enterprises should measure loss provisions based on expected credit losses in the next 12 months, and calculate interest income based on their book balance (that is, before deducting impairment provisions) and actual interest rate (if the instrument is a financial asset, the same below).

Stage 2: Credit risk has increased significantly since initial recognition but credit impairment has not yet occurred

For financial instruments at this stage, enterprises should measure loss provisions based on the expected credit losses throughout the entire duration of the instrument, and calculate interest income based on its book balance and actual interest rate.

Stage 3: Credit impairment occurs after initial recognition

For financial instruments in this stage, enterprises should measure loss provisions based on expected credit losses throughout the entire duration of the instrument, but the calculation of interest income is different from financial assets in the first two stages. For financial assets that have suffered credit impairment, enterprises should calculate interest income based on their amortized cost (book balance minus accrued impairment provisions, that is, book value) and actual interest rate.

For financial assets that are credit-impaired when purchased or originated, an enterprise should only recognize changes in expected credit losses during the entire duration after initial recognition as loss provisions, and calculate interest income based on its amortized cost and credit-adjusted actual interest rate.

② For financial instruments with low credit risk on the balance sheet date, the company chooses not to compare the credit risk at the time of initial recognition, but directly makes the assumption that the credit risk of the instrument has not increased significantly since initial recognition.

If the enterprise determines that the default risk of a financial instrument is low, the borrower's ability to fulfill its contractual cash flow obligations in the short term is strong, and even if there are adverse changes in the economic situation and operating environment in the longer term, it will not necessarily reduce the borrower's ability to fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower credit risk.

③Accounts receivable and lease receivables

The company adopts a simplified model of expected credit losses for receivables that do not contain significant financing components (including the case where financing components in contracts of no more than one year are not considered according to this standard) as stipulated in "Accounting Standards for Business Enterprises No. 14 - Revenue", and always measure its loss provisions based on the amount of expected credit losses throughout the duration.

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For receivables that contain significant financing components and lease receivables specified in "Accounting Standards for Business Enterprises No. 21 - Lease", the Company makes accounting policy choices and chooses to adopt a simplified model of expected credit losses, that is, to measure loss provisions based on an amount equivalent to expected credit losses during the entire duration.

(6) Transfer of financial assets

If the Company has transferred substantially all risks and rewards of ownership of a financial asset to the transferee, the financial asset shall be derecognized; if the Company has retained substantially all risks and rewards of ownership of the financial asset, the financial asset shall not be derecognised.

If the company neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, the following situations will be dealt with: if it gives up control of the financial asset, it will terminate the recognition of the financial asset and recognize the resulting assets and liabilities; if it does not give up control of the financial asset, the relevant financial assets will be recognized according to the extent of its continued involvement in the transferred financial assets, and the relevant liabilities will be recognized accordingly.

If the company continues to be involved by providing financial guarantees for the transferred financial assets, the assets formed by the continued involvement will be recognized based on the lower of the book value of the financial assets and the amount of financial guarantees. The amount of financial guarantee refers to the maximum amount that will be required to be repaid out of the consideration received.

Notes receivable

(1) Determination method and accounting treatment method of expected credit loss of notes receivable

The company adopts a simplified model of expected credit losses for notes receivable that do not contain significant financing components as stipulated in the "Accounting Standards for Business Enterprises No. 14 - Revenue" (including the case where financing components in contracts of no more than one year are not considered according to this standard), that is, the loss provisions are always measured according to the amount of expected credit losses during the entire duration. The resulting increase or reversal of the loss provisions is included in the current profit and loss as an impairment loss or gain.

For notes receivable that contain significant financing components, the Company chooses to adopt a simplified model of expected credit losses, that is, it always measures its loss provisions based on the amount of expected credit losses throughout the duration.

(2) Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

For notes receivable divided into portfolios, the Company refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration. Based on the credit risk characteristics of notes receivable, they are divided into different combinations:

Item Basis for recognizing portfolio Measurement method of expected credit losses

With reference to historical credit loss experience and the current situation, the expected credit loss rate is

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Refer to historical credit loss experience and combine it with the current situation to

The acceptor is a non-bank financial institution with high credit risk

Notes Receivable Portfolio 2: Commercial Acceptance Bills and forward-looking information are considered, and the expected credit and enterprise are confirmed by age.

Loss rate.

(3) According to the judgment standard for single provision of bad debt provisions

If there is objective evidence that a certain note receivable has been credit-impaired, the company will make a separate provision for bad debts for the note receivable and recognize expected credit losses.

Accounts receivable

(1) Determination method and accounting treatment method of expected credit losses of accounts receivable

The company adopts a simplified model of expected credit losses for accounts receivable that do not contain significant financing components as stipulated in the "Accounting Standards for Business Enterprises No. 14 - Revenue" (including the situation where financing components in contracts of no more than one year are not considered according to this standard), that is, the loss provisions are always measured according to the amount of expected credit losses during the entire duration. The resulting increase or reversal of the loss provisions is included in the current profit and loss as an impairment loss or gain.

For accounts receivable that contain significant financing components, the Company chooses to adopt a simplified model of expected credit losses, that is, it always measures its loss provisions based on the amount of expected credit losses throughout the duration.

(2) Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

For accounts receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current conditions and predictions of future economic conditions, prepares a comparison table between the aging of accounts receivable and the expected credit loss rate for the entire duration, and calculates expected credit losses. The aging of accounts receivable is calculated from the date of confirmation. Based on the credit risk characteristics of accounts receivable, they are divided into different combinations:

Item Basis for recognizing portfolio Measurement method of expected credit losses

Referring to historical credit loss experience, combined with the current situation, accounts receivable portfolio 1: receivable from overseas corporate customers and predictions of future economic conditions, through default risk

Confirm based on business nature

Account exposure and expected credit loss rate throughout the duration are used to calculate expected credit losses.

Referring to historical credit loss experience, combined with the current situation, accounts receivable portfolio 2: Domestic medical equipment receivable and predictions of future economic conditions, through default risk

Confirm based on business nature

The expected credit losses are calculated based on the structural exposure and the expected credit loss rate throughout the duration.

Referring to historical credit loss experience, combined with the current situation, accounts receivable portfolio 3: Receivables consolidation scope and prediction of future economic conditions, through default risk

Confirm based on business nature

Joint exposure and lifetime expected credit loss rate, calculated

Expected credit losses.

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Referring to historical credit loss experience, combined with the current situation, accounts receivable portfolio 4: receivables and prediction of future economic conditions, through default risk

Confirm based on business nature

Other customer exposures and lifetime expected credit loss rates, calculated

Expected credit losses.

(3) According to the judgment standard for single provision of bad debt provisions

If there is objective evidence that a certain account receivable has been credit-impaired, the company will make a provision for bad debts for the account receivable individually and recognize expected credit losses.

Accounts receivable financing

(1) Determination method and accounting treatment method of expected credit losses for receivables financing

The company adopts a simplified model of expected credit losses for the financing of receivables that does not include significant financing components as stipulated in "Accounting Standards for Business Enterprises No. 14 - Revenue" (including the situation where financing components in contracts that are not more than one year are not considered according to this standard). That is, the company always measures its loss provisions according to the amount of expected credit losses during the entire duration. The resulting increase or reversal of loss provisions is included in the current profit and loss as impairment losses or gains.

For receivable financing that contains significant financing components, the Company chooses to adopt a simplified model of expected credit losses, that is, it always measures its loss provisions based on the amount of expected credit losses throughout the duration.

(2) Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

For the financing of receivables divided into portfolios, the Company refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration. Based on the credit risk characteristics of receivables financing, it is divided into different combinations:

Item Basis for recognizing portfolio Measurement method of expected credit losses

Refer to historical credit loss experience and combine the current situation with receivables financing combination 1: bank acceptance

The acceptor is a bank acceptance bill with low credit risk and considering forward-looking information, the expected credit loss rate is

(3) According to the judgment standard for single provision of bad debt provisions

If there is objective evidence that a certain receivable financing has been credit-impaired, the company will make a separate provision for bad debts and recognize expected credit losses for the receivable financing.

Other receivables

(1) Determination method and accounting treatment method of expected credit losses of other receivables

The Company uses the general model of expected credit losses to process other receivables. Please see Note "V. 11. Financial Instruments" for details.

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(2) Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

The company divides other receivables into several combinations based on credit risk characteristics, and calculates expected credit losses on the basis of the combinations. The basis for determining the combinations is as follows:

Item Basis for confirming combination

Other receivables portfolio 1: deposits and margins receivable This portfolio represents deposits and margins in daily operating activities

Other receivables portfolio 2: Accounts receivable from government agencies This portfolio is the accounts receivable from government agencies.

Other receivables portfolio 3: Receivables from related parties within the scope of consolidation This portfolio is the receivables from related parties within the scope of consolidation of the company

Other receivables portfolio 4: Reserve funds receivable and others This portfolio represents employee reserves and other funds in daily operating activities

For other receivables classified into portfolios, the Company calculates expected credit losses through the default risk exposure and the expected credit loss rate within the next 12 months or throughout the duration.

(3) Aging calculation method based on aging confirmation of credit risk characteristics combination

For other receivables grouped by aging, the aging is calculated from the date of confirmation.

(4) According to the judgment standard for individual provision of bad debt provisions

If there is objective evidence that a certain other receivable has been credit-impaired, the Company will make impairment provisions for the other receivable on an individual basis.

Contract assets

(1) Recognition methods and standards for contract assets

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The consideration (other than accounts receivable) that the Company has the right to receive for transferring goods or providing services to customers is listed as contract assets.

(2) Determination method and accounting treatment method of expected credit loss of contract assets

The company adopts a simplified model of expected credit losses for contract assets that do not include significant financing components as stipulated in "Accounting Standards for Business Enterprises No. 14 - Revenue" (including the situation where financing components in contracts that are no longer than one year are not considered according to this standard). That is, the company always measures its loss provisions according to the amount of expected credit losses during the entire duration. The resulting increase or reversal of the loss provisions is included in the current profit and loss as an impairment loss or gain.

For contract assets that contain significant financing components, the Company chooses to adopt a simplified model of expected credit losses, that is, it always measures its loss provisions based on the amount of expected credit losses throughout the duration.

(3) Combination categories and determination basis for bad debt provisions based on combinations of credit risk characteristics

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For contract assets divided into portfolios, the Company refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration. Based on the credit risk characteristics of contract assets, they are divided into different combinations:

Item Basis for recognizing portfolio Measurement method of expected credit losses

Calculate expected credit losses by referring to historical credit loss experience, combined with current conditions and predictions of future economic conditions.

(4) According to the judgment standard for individual provision of bad debt provisions

If there is objective evidence that a certain contract asset has been credit-impaired, the Company will make impairment provisions for the contract asset on an individual basis.

Inventory

(1) Classification of inventory

Inventories include finished products or commodities held for sale in daily activities, work-in-progress in the production process, materials and supplies consumed in the production process or in the process of providing services, etc.

(2) Valuation method for issued inventory

Inventories are issued using the weighted average method at the end of the month.

(3) Inventory inventory system

The inventory system of inventories is the perpetual inventory system.

(4) Amortization method for low-value consumables and packaging materials

① Low value consumables

Amortization is carried out according to the one-time write-off method.

②Packaging

Amortization is carried out according to the one-time write-off method.

(5) Recognition standards and accrual methods for inventory depreciation provisions

On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory depreciation provisions are made based on the difference between the cost of a single inventory and its net realizable value. For inventories that are directly used for sale, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes in the normal production and operation process; for inventories that need to be processed, the realizable value is determined by the estimated selling price of the finished goods produced during the normal production and operation process, minus the estimated costs to be incurred upon completion, the estimated sales expenses and related taxes.

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Net value; on the balance sheet date, if part of the same inventory has a contract price and other parts do not have a contract price, the net realizable value shall be determined respectively and compared with its corresponding cost to determine the amount of provision or reversal of inventory depreciation provisions.

Assets held for sale

(1) Recognition standards and accounting treatment methods for non-current assets or disposal groups classified as held for sale

The company classifies group components (or non-current assets) that meet the following conditions as held for sale: (1) According to the practice of selling such assets or disposal groups in similar transactions, they can be sold immediately under the current conditions; (2) The sale is very likely to occur, a resolution on a sale plan has been made and a firm purchase commitment has been obtained (firm purchase commitment) , refers to a legally binding purchase agreement signed between an enterprise and other parties. The agreement contains important terms such as transaction price, time and sufficiently severe penalties for breach of contract, making the possibility of major adjustments or cancellation of the agreement extremely small. The sale is expected to be completed within one year and must be approved by relevant authorities or regulatory authorities in accordance with relevant regulations.

The company adjusts the estimated net residual value held for sale to reflect its fair value minus selling expenses (but shall not exceed the original book value of the item held for sale). The difference between the original book value and the adjusted estimated net residual value is included in the current profit and loss as an asset impairment loss, and at the same time, a provision for impairment of assets held for sale is made. For the amount of asset impairment loss recognized by a disposal group held for sale, the book value of the goodwill in the disposal group shall first be deducted, and then the book value shall be deducted in proportion to the proportion of the book value of various non-current assets in the disposal group that are subject to the measurement provisions of these standards.

If the net amount of the fair value of non-current assets held for sale less selling expenses increases on subsequent balance sheet dates, the amount previously written down shall be restored and reversed within the amount of asset impairment losses recognized after being classified as held for sale, and the reversed amount shall be included in the current profit and loss. Impairment losses on assets recognized before they are classified as held for sale cannot be reversed. If the net amount of the fair value of the disposal group held for sale less selling expenses increases on subsequent balance sheet dates, the previously written-down amount shall be restored and reversed within the amount of asset impairment losses recognized for non-current assets after being classified as held for sale and subject to the measurement provisions of these Standards, and the reversed amount shall be included in the current profit and loss. The book value of goodwill that has been deducted and the asset impairment losses recognized before the non-current assets subject to the measurement requirements of this standard are classified as held for sale shall not be reversed. The subsequent reversal amount of asset impairment losses recognized by a disposal group held for sale shall be increased in proportion to its book value based on the proportion of the book value of various non-current assets in the disposal group that are subject to the measurement provisions of these standards except goodwill. If an enterprise loses control of its subsidiary due to reasons such as the sale of its investment in a subsidiary, regardless of whether the enterprise retains part of the equity investment after the sale, when the investment in the subsidiary to be sold meets the conditions for classification as held for sale, the entire investment in the subsidiary shall be classified as held for sale in the parent company's individual financial statements, and all assets and liabilities of the subsidiary shall be classified as held for sale in the consolidated financial statements.

(2) Determination standards and presentation methods for discontinued operations

Discontinued operations refer to an independently distinguishable component of an enterprise that meets one of the following conditions, and the component has been disposed of or classified as held for sale: ① The component represents an independent main business or a separate main operating area; ② The component

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It is part of a related plan to dispose of an independent main business or an independent main operating area; ③ This component is a subsidiary acquired specifically for resale.

The definition of discontinued operations includes the following three aspects:

① Termination of operations should be a separately distinguishable component of the enterprise. The operations and cash flows of this component can be clearly distinguished from other parts of the business when operating the business and preparing financial statements.

② Termination of operations should be of a certain scale. The discontinued operation shall represent an independent major business or a separate major operating area, or be part of an associated plan to dispose of an independent major business or a separate major operating area.

③ Termination of operations must meet certain time requirements. A component that meets the definition of discontinued operations should fall into one of the following two situations. The component has been disposed of before the balance sheet date, including sold and ended use (such as shutdown or scrapping, etc.); the component has been classified as held for sale before the balance sheet date.

Debt investment
Other debt investments
Long-term receivables
Long-term equity investment

(1) Determination of investment cost

① Formed by a business merger under the same control, if the merging party pays cash, transfers non-cash assets, assumes debts or issues equity securities as the merger consideration, the share of the book value of the owner's equity of the merged party in the final controlling party's consolidated financial statements on the merger date shall be regarded as its initial investment cost. The difference between the initial investment cost of the long-term equity investment and the book value of the merger consideration paid or the total face value of the shares issued is adjusted to the capital reserve (capital premium or equity premium); if the capital reserve is insufficient for offset, the retained earnings are adjusted.

If the merger of enterprises under the same control is realized in steps, the share of the combined party's book owner's equity on the merger date calculated based on the shareholding ratio shall be used as the initial investment cost of the investment. The difference between the initial investment cost and the book value of the original long-term equity investment plus the book value of the newly paid consideration for further shares acquired on the merger date is adjusted to the capital reserve (capital premium or equity premium). If the capital reserve is insufficient to offset, the retained earnings are offset.

② If it is formed by a business combination not under the same control, the fair value of the merger consideration paid on the purchase date shall be used as its initial investment cost.

③Except for those formed through business mergers: If it is obtained by paying cash, the actual purchase price paid will be used as its initial investment cost; if it is obtained by issuing equity securities, its initial investment cost will be based on the fair value of the equity securities issued; if it is invested by investors, its initial investment cost will be based on the value stipulated in the investment contract or agreement (except if the value stipulated in the contract or agreement is unfair).

(2) Subsequent measurement and profit and loss recognition methods

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Long-term equity investments that the company can control over the investee are accounted for using the cost method in the company's individual financial statements; long-term equity investments that have joint control or significant influence are accounted for using the equity method.

When the cost method is adopted, long-term equity investments are valued at the initial investment cost. In addition to the actual price paid when acquiring the investment or the cash dividends or profits that have been declared but not yet distributed included in the consideration, the cash dividends or profits declared by the investee to be distributed are recognized as investment income for the current period. At the same time, whether the long-term investment is impaired is considered in accordance with the relevant asset impairment policies.

When using the equity method, if the initial investment cost of a long-term equity investment is greater than the fair value share of the investee's identifiable net assets at the time of investment, it will be included in the initial investment cost of the long-term equity investment; if the initial investment cost of a long-term equity investment is less than the fair value share of the investee's identifiable net assets at the time of investment, the difference will be included in the current profit and loss, and the cost of the long-term equity investment will be adjusted at the same time.

When using the equity method, after obtaining a long-term equity investment, the investment gains and losses are recognized and the book value of the long-term equity investment is adjusted based on the share of the net profits and losses realized by the investee that should be enjoyed or shared. When confirming the share of the investee's net profits and losses, it is based on the fair value of the investee's identifiable assets when the investment is obtained, in accordance with the company's accounting policies and accounting periods, and offsets the part of the internal transaction profits and losses with associates and joint ventures that are attributable to the investing company based on the shareholding ratio (but if the internal transaction losses are asset impairment losses, they should be recognized in full), and the net profit of the investee is recognized after adjustment. The portion to be distributed is calculated based on the profits or cash dividends declared by the investee to be distributed, and the book value of the long-term equity investment is reduced accordingly. The company recognizes the net loss incurred by the investee until the book value of the long-term equity investment and other long-term interests that essentially constitute the net investment in the investee are written down to zero, except where the company has the obligation to bear additional losses. For other changes in the owner's equity of the invested unit other than net profit and loss, the book value of the long-term equity investment is adjusted and included in the owner's equity.

(3) Basis for determining control and significant influence on the invested unit

Control refers to having power over the investee, enjoying variable returns by participating in the relevant activities of the investee, and having the ability to use power over the investee to affect the amount of returns; significant influence means that the investor has the power to participate in decision-making on the financial and operating policies of the investee, but is not able to control or jointly control the formulation of these policies with other parties.

(4) Disposal of long-term equity investments

① Partial disposal of long-term equity investments in subsidiaries without loss of control

When a long-term equity investment in a subsidiary is partially disposed of without losing control, the difference between the disposal price and the corresponding book value of the disposed investment should be recognized as investment income for the current period.

② Partial disposal of equity investments or loss of control over subsidiaries due to other reasons

If an equity investment is partially disposed of or control over a subsidiary is lost due to other reasons, the book value of the long-term equity investment corresponding to the equity sold should be carried forward for the equity disposed of, and the difference between the proceeds from the sale and the book value of the long-term equity investment disposed of is recognized as investment income (loss); at the same time, the remaining equity should be recognized as long-term equity investment or other related financial assets based on its book value. After disposal

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If the remaining equity can exercise joint control or significant influence on the subsidiary, accounting treatment shall be carried out in accordance with the relevant provisions on the conversion of the cost method to the equity method.

(5) Impairment testing method and impairment provision accrual method

For investments in subsidiaries, associates and joint ventures, if there is objective evidence that they are impaired on the balance sheet date, corresponding impairment provisions will be made based on the difference between the book value and the recoverable amount.

Investment real estate

Investment real estate measurement model

Not applicable

Fixed assets

(1) Confirmation conditions

Fixed assets refer to tangible assets held for the production of goods, provision of labor services, leasing or operation and management, and with a useful life of more than one accounting year.

Fixed assets are recorded at their actual cost when acquired, and depreciation is accrued using the straight-line method from the month following when they reach their intended usable condition.

(2) Depreciation method

Category Depreciation method Depreciation life Residual value rate Annual depreciation rate Houses and buildings Year-averaged method 10-43 3.00 9.70-2.26

Machinery and equipment Average age method 10 5.00 9.50

Means of transportation Average age method 8 5.00 11.88

Electronic equipment and other average years method 5-7 5.00 19.00-13.57

Projects under construction
When the project under construction reaches the intended usable state, it will be transferred to fixed assets according to the actual cost of the project. If the asset has reached the intended usable state but has not yet completed the final settlement, the estimated value will be transferred to fixed assets first. After the final settlement is completed, the original temporary estimated value will be adjusted according to the actual cost, but the originally accrued depreciation will not be adjusted.
On the balance sheet date, if there are signs that the construction in progress is impaired, corresponding impairment provisions will be made based on the difference between the book value and the recoverable amount. For details on the method of accruing asset impairment for projects under construction, please refer to Note "V. 30. Impairment of long-term assets".

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Borrowing costs

(1) Recognition principles for capitalization of borrowing costs

If the borrowing costs incurred by the company can be directly attributed to the acquisition, construction or production of assets that meet the capitalization conditions, they will be capitalized and included in the cost of the relevant assets; other borrowing costs will be recognized as expenses when incurred and included in the current profits and losses.

(2) Capitalization period of borrowing costs

① Capitalization begins when borrowing costs meet the following conditions at the same time: 1) Asset expenditures have occurred; 2) Borrowing costs have been incurred; 3) The purchase, construction or production activities necessary to bring the assets to the intended usable or salable state have begun.

② If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or production process, and the interruption lasts for more than 3 months, the capitalization of borrowing costs is suspended; the borrowing costs incurred during the interruption are recognized as current expenses until the acquisition, construction or production activities of the asset are restarted.

③ When the assets purchased, constructed or produced that meet the capitalization conditions reach the intended usable or salable state, the capitalization of borrowing costs will cease. (3) Capitalized amount of borrowing costs

If a special loan is borrowed for the purpose of purchasing, constructing or producing assets that meet the capitalization conditions, the actual interest expenses incurred on the special loan in the current period (including the amortization of discounts or premiums determined in accordance with the actual interest rate method) shall be deducted from the interest income obtained from depositing the unused borrowed funds in the bank or the investment income obtained from temporary investment. The amount of interest that should be capitalized is determined based on the amount after profit; if general borrowings are occupied for the purchase, construction or production of assets that meet the capitalization conditions, the amount of interest that should be capitalized on the general borrowings is calculated and determined based on the weighted average of the cumulative asset expenditures exceeding the special borrowings multiplied by the capitalization rate of the general borrowings occupied.

During the capitalization period, all exchange differences on special foreign currency borrowings are capitalized; exchange differences on general foreign currency borrowings are included in the current profits and losses.

Biological assets
Oil and gas assets
Intangible assets

(1) Useful life and its basis for determination, estimation, amortization method or review procedure

Intangible assets are initially measured based on cost, and their service life is analyzed and judged when the intangible assets are acquired. Intangible assets with limited service life shall be amortized systematically and reasonably within the service life according to the expected realization method of the economic benefits related to the intangible asset. If the expected realization method cannot be reliably determined, the straight-line method shall be used for amortization. The specific amortization period of intangible assets with limited service life is as follows:

Item Amortization period (years)

Land use rights 50

Patent rights 10-20

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Non-patented technology 10

Software 2-10

Intangible assets with indefinite service life are not amortized, and the Company reviews the service life of the intangible assets in each accounting period. If it is different from the previous estimate, the original estimate will be adjusted and treated as a change in accounting estimate. The company determines intangible assets such as intangible assets that cannot foresee the period during which the asset will bring economic benefits to the company, or whose useful life is uncertain, as intangible assets with an indefinite useful life. For intangible assets with an uncertain service life, the basis for determining the uncertainty of the service life is: they originate from contractual rights or other legal rights, but there is no clear service life stipulated in the contract or law; based on the situation in the same industry or the argumentation of relevant experts, it is still impossible to judge the period during which the intangible assets will bring economic benefits to the company.

If it is expected that an intangible asset will no longer bring future economic benefits to the enterprise on the balance sheet date, all the book value of the intangible asset will be transferred to the current profit and loss.

For intangible assets with a definite service life, if there are signs of impairment on the balance sheet date, corresponding impairment provisions will be made based on the difference between the book value and the recoverable amount; for intangible assets with an indefinite service life and intangible assets that have not yet reached a usable state, whether there are signs of impairment or not, impairment testing will be conducted every year.

(2) Scope of aggregation of R&D expenditures and related accounting treatment methods

① Scope of aggregation of R&D expenditures

The company's R&D expenditures are expenditures directly related to the company's R&D activities, including employee salaries of R&D personnel, direct investment costs, depreciation costs, design costs, equipment debugging fees and other expenses. The wages of R&D personnel are included in R&D expenditures based on project working hours. Equipment, production lines, and sites shared between R&D activities and other production and operation activities are included in R&D expenses according to the proportion of working hours and the proportion of area.

②Accounting treatment methods related to R&D expenditures

The Company divides the expenditures on internal research and development projects into expenditures in the research phase and expenditures in the development phase. Expenditures in the research phase of internal research and development projects are included in the current profits and losses when incurred. Expenditures in the development phase of internal research and development projects are recognized as intangible assets if they meet the following conditions: A. It is technically feasible to complete the intangible asset so that it can be used or sold; B. There is the intention to complete the intangible asset and use or sell it; C. The way in which the intangible asset generates economic benefits, including being able to prove the use of the intangible asset There is a market for the products produced or the intangible asset itself exists. If the intangible asset will be used internally, its usefulness can be proven; D. It has sufficient technical, financial and other resource support to complete the development of the intangible asset, and has the ability to use or sell the intangible asset; E. The expenditures attributable to the development stage of the intangible asset can be measured reliably.

The Company’s specific standards for dividing expenditures in the research phase and development phase of internal research and development projects:

Combining the research and development process of the pharmaceutical industry and the characteristics of the company's own research and development, the company's internal research and development projects of drugs enter the development stage when bioequivalence testing or similar time points begin, and end when the product marketing authorization is obtained. The remaining R&D expenditures are regarded as research phase expenditures.

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If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage, all R&D expenditures incurred will be included in the current profit and loss.

Impairment of long-term assets

Enterprises should determine whether there are signs that assets may be impaired on the balance sheet date.

Goodwill and intangible assets with indefinite useful lives formed due to business combinations shall be tested for impairment every year regardless of whether there are signs of impairment.

The presence of the following signs indicates that the asset may be impaired:

(1) The market price of the asset has fallen significantly in the current period, and the decline is significantly higher than the expected decline due to the passage of time or normal use; (2) The economic, technological or legal environment in which the enterprise operates and the market in which the assets are located have undergone major changes in the current period or will occur in the near future, which will have an adverse impact on the enterprise; (3) Market interest rates or other market investment returns have increased in the current period, thus affecting the discount rate used by the enterprise to calculate the present value of the estimated future cash flows of the assets, resulting in the assets being collectible. The amount of repayment has been significantly reduced; (4) There is evidence that the asset has become obsolete or its entity has been damaged; (5) The asset has been or will be idle, terminated, or planned to be disposed of in advance; (6) Evidence from the company's internal report shows that the economic performance of the asset has been or will be lower than expected, such as the net cash flow created by the asset or the operating profit (or loss) realized is far lower than (or higher than) the expected amount; (7) Other signs that the asset may have been impaired. If there are signs of impairment of an asset, its recoverable amount should be estimated.

The recoverable amount shall be determined based on the higher of the asset's fair value minus disposal costs and the present value of the asset's expected future cash flows. Disposal costs include legal fees, related taxes, transportation fees, and direct costs incurred in bringing the assets to a salable state, etc. related to asset disposal. The present value of the estimated future cash flows of an asset shall be determined by selecting an appropriate discount rate and discounting the estimated future cash flows generated during the continued use and final disposal of the asset. The present value of the estimated future cash flows of an asset should comprehensively consider factors such as the asset's expected future cash flows, useful life, and discount rate. The Company estimates the recoverable amount on the basis of a single asset; if it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs is determined based on the asset group. The identification of an asset group is based on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assets or asset groups.

The measurement results of the recoverable amount show that if the recoverable amount of an asset is lower than its book value, the book value of the asset should be written down to the recoverable amount. The amount written down is recognized as asset impairment loss and included in the current profit and loss, and corresponding asset impairment provisions are made.

As far as the impairment test of goodwill is concerned, the book value of goodwill formed due to a business combination shall be allocated to the relevant asset groups in a reasonable manner from the date of purchase; if it is difficult to allocate it to the relevant asset groups, it shall be allocated to the relevant asset group combinations. The relevant asset group or asset group combination is an asset group or asset group combination that can benefit from the synergy effects of the business combination, and is no larger than the reporting segment determined by the company. During impairment testing, if there are signs of impairment in an asset group or combination of asset groups related to goodwill, first conduct an impairment test on the asset group or combination of asset groups that does not contain goodwill, calculate the recoverable amount, and recognize the corresponding impairment loss. Then for the asset group or asset containing goodwill

Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Full Text Group is tested for impairment, and its book value and recoverable amount are compared. If the recoverable amount is lower than the book value, the impairment loss of goodwill is recognized.

Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.

Long-term deferred expenses

Long-term deferred expenses are recorded according to the actual amount incurred, and are amortized evenly over the benefit period or a specified period. If a long-term deferred expense item cannot benefit future accounting periods, all the amortized value of the item that has not been amortized will be transferred to the current profit and loss.

Contract liabilities

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Company's obligations to transfer goods or provide services to customers for consideration received or receivable from customers are listed as contract liabilities.

Employee compensation

(1) Accounting treatment method for short-term compensation

During the accounting period when employees provide services, the company recognizes the actual employee wages, bonuses, social insurance premiums such as medical insurance premiums, work-related injury insurance premiums, maternity insurance premiums, and housing provident funds paid for employees according to prescribed standards and proportions as liabilities, and includes them in the current profit and loss or related asset costs.

(2) Accounting treatment of post-employment benefits

(3) Accounting treatment method for dismissal benefits

The company terminates the labor relationship with employees before the expiration of the employee's labor contract, or offers to provide compensation to encourage employees to voluntarily accept redundancy. When the company cannot unilaterally withdraw the labor relationship termination plan or layoff proposal or when the costs and expenses related to the restructuring involving the payment of dismissal benefits are recognized, whichever is earlier, the liability arising from the compensation for terminating the labor relationship with the employee is recognized and included in the current profit and loss. (4) Accounting treatment methods for other long-term employee benefits

① Set up a withdrawal plan

Our employees participate in the basic social pension insurance organized and implemented by the local labor and social security department. The Company pays pension insurance premiums to the local basic social pension insurance agency on a monthly basis based on the local basic social pension insurance payment base and proportion. After employees retire, the local labor and social security department is responsible for paying basic social pensions to retired employees. During the accounting period when employees provide services, the company will recognize the amount payable according to the above social security regulations as a liability and include it in the current profit and loss or related asset costs.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

②Defined benefit plan

Other supplemental retirement benefits

The Company also provides supplementary retirement benefits other than the insurance system stipulated by the state to employees who meet certain conditions. These supplementary retirement benefits belong to defined benefit plans. The defined benefit liabilities recognized on the balance sheet are the present value of the defined benefit obligations minus the fair value of the plan assets. For defined benefit plans, an actuarial valuation is performed by an independent actuary on the annual balance sheet date to determine the cost of providing benefits using the expected accumulated benefit unit method. The employee compensation costs caused by the company's defined benefit plan include the following components:

A. Service costs, including current service costs, past service costs and settlement gains or losses. Among them, the current service cost refers to the increase in the present value of the defined benefit plan obligations caused by the services provided by employees in the current period; the past service cost refers to the increase or decrease in the present value of the defined benefit plan obligations related to employee services in previous periods caused by the modification of the defined benefit plan.

B. The net interest amount of the net liabilities or net assets of the defined benefit plan, including the interest income of the plan assets, the interest expenses of the defined benefit plan obligations, and the interest affected by the asset ceiling.

C. Changes caused by re-measurement of the net liabilities or net assets of the defined benefit plan.

Unless other accounting standards require or allow employee benefit costs to be included in asset costs, the company will include the above items A and B in the current profit and loss; item C will be included in other comprehensive income and will not be transferred back to profit and loss in subsequent accounting periods. When the original defined benefit plan is terminated, all parts originally included in other comprehensive income will be carried forward to undistributed profits within the scope of equity.

Estimated liabilities

(1) Obligations resulting from contingencies such as external guarantees, litigation matters, product quality guarantees, loss-making contracts, etc., become current obligations of the company. When the performance of this obligation is likely to result in the outflow of economic benefits from the company, and the amount of the obligation can be measured reliably, the company will recognize the obligation as an estimated liability.

(2) The company initially measures estimated liabilities based on the best estimate of the expenditures required to fulfill relevant current obligations, and comprehensively considers factors such as risks, uncertainties, and time value of money related to contingencies. If the time value of money has a significant impact, the best estimate is determined by discounting the relevant future cash outflows. The Company reviews the book value of estimated liabilities on the balance sheet date and adjusts the book value to reflect the current best estimate. If all or part of the expenses required to settle the recognized estimated liabilities are expected to be compensated by a third party or other parties, the compensation amount can only be recognized separately as an asset when it is basically certain that it will be received. The amount of compensation recognized shall not exceed the book value of the liability recognized.

Share-based payment

(1) Types of share-based payment

The Company's share-based payment includes equity-settled share-based payment and cash-settled share-based payment.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(2) Method for determining the fair value of equity instruments

① If there is an active market, it shall be determined according to the quotation in the active market.

② If there is no active market, use option pricing models to determine its fair value. The selected option pricing model considers the following factors: A. The exercise price of the option; B. The validity period of the option; C. The current price of the underlying stock; D. The expected volatility of the stock price; E. The expected dividend of the stock; F. The risk-free interest rate during the validity period of the option.

(3) Basis for confirming the best estimate of exercisable equity instruments

On each balance sheet date during the waiting period, the Company makes its best estimate based on the latest changes in the number of vested employees and other subsequent information, and revise the number of equity instruments expected to be vested. On the vesting date, the number of equity instruments ultimately expected to be vested should be consistent with the actual number of vested equity instruments.

(4) Accounting treatments related to the implementation, modification and termination of share-based payment plans

① Equity-settled share-based payment

Equity-settled share-based payments that become exercisable immediately after grant in exchange for employee services will be included in relevant costs or expenses based on the fair value of the equity instrument on the date of grant, and the capital reserve will be adjusted accordingly. For equity-settled share-based payments in exchange for employee services that are vested upon completion of services within the waiting period or upon meeting specified performance conditions, on each balance sheet date during the waiting period, based on the best estimate of the number of exercisable equity instruments and the fair value on the date of grant of the equity instrument, the services obtained in the current period are included in the relevant costs or expenses, and the capital reserve is adjusted accordingly. No adjustments will be made to the recognized related costs or expenses and the total owner's equity after the vesting date.

For equity-settled share-based payments in exchange for services from other parties, if the fair value of the other party's services can be reliably measured, it will be measured based on the fair value of the other party's services on the date of acquisition; if the fair value of the other party's services cannot be reliably measured, but the fair value of the equity instrument can be measured reliably, it will be measured based on the fair value of the equity instrument on the date of service acquisition, and the relevant costs or expenses will be included, and the owner's equity will be increased accordingly. ②Cash-settled share-based payment

Cash-settled share-based payments that become exercisable immediately after grant in exchange for employee services will be included in relevant costs or expenses based on the fair value of the liability borne by the company on the date of grant, with a corresponding increase in liabilities. For cash-settled share-based payments in exchange for employee services that are vested upon completion of the services within the waiting period or upon meeting specified performance conditions, on each balance sheet date during the waiting period, based on the best estimate of the vesting situation and the fair value of the liabilities borne by the company, the services obtained in the current period are included in the relevant costs or expenses and corresponding liabilities. On each balance sheet date and settlement date before the settlement of relevant liabilities, the fair value of the liability is remeasured, and its changes are included in the current profit and loss.

③Modify and terminate the share-based payment plan

If the modification increases the fair value of the equity instruments granted, the company will recognize the increase in services obtained according to the increase in the fair value of the equity instruments; if the modification increases the number of equity instruments granted, the company will recognize the increased fair value of the equity instruments as an increase in services obtained accordingly; if the company modifies the vesting conditions in a way that is beneficial to employees, the company will consider the modified vesting conditions when processing the vesting conditions.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

If the modification reduces the fair value of the equity instruments granted, the company will continue to recognize the amount of services obtained based on the fair value of the equity instruments on the date of grant, regardless of the decrease in the fair value of the equity instruments; if the modification reduces the number of equity instruments granted, the company will treat the reduction as the cancellation of the equity instruments granted; if the vesting conditions are modified in a way that is unfavorable to employees, the modified vesting conditions will not be considered when processing the vesting conditions.

If the company cancels the granted equity instruments or settles the granted equity instruments during the waiting period (except for cancellation due to failure to meet the vesting conditions), the cancellation or settlement will be treated as accelerated vesting, and the amount originally recognized during the remaining waiting period will be immediately recognized. (5)Restricted stocks

In the equity incentive plan, the company grants restricted stocks to the incentive recipients, who first subscribe for the shares. If the unlocking conditions specified in the equity incentive plan are not subsequently met, the company will repurchase the shares at a pre-agreed price. If the restricted stocks issued to employees have completed registration and other capital increase procedures in accordance with relevant regulations, on the date of grant, the company will confirm the share capital and capital reserve (share premium) based on the subscription payments received from employees; at the same time, the company will recognize treasury shares and other payables for repurchase obligations.

Preferred shares, perpetual bonds and other financial instruments
Income

Disclose accounting policies adopted for revenue recognition and measurement by business type

(1) Recognition of income

The company's revenue mainly includes preparation sales, commercial trade, raw material sales, services and others. The company fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods, revenue is recognized. Obtaining control over relevant goods means being able to direct the use of the goods and obtain almost all economic benefits from them.

Based on the relevant provisions of the revenue standards, the company determines that the nature of the relevant performance obligations is "performance obligations performed within a certain period of time" or "performance obligations performed at a certain point in time", and revenue is recognized according to the following principles respectively.

If the company meets one of the following conditions, it will perform its performance obligations within a certain period of time:

① When the company performs the contract, the customer obtains and consumes the economic benefits brought by the company's performance of the contract.

②The customer can control the assets under construction during the company's performance of the contract.

③The assets produced by the company during the performance of the contract have irreplaceable uses, and the company has the right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.

For performance obligations performed within a certain period of time, the Company will recognize revenue based on the performance progress during that period, except where the performance progress cannot be reasonably determined. The company considers the nature of the goods and uses the output method or the input method to determine the appropriate performance progress.

For performance obligations that are not performed within a certain period of time but are performed at a certain point in time, the company recognizes revenue at the point when the customer obtains control of the relevant goods.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

When judging whether the customer has obtained control of the goods, the company considers the following signs:

① The company has the current right to receive payment for the product, that is, the customer has the current payment obligation for the product.

②The company has transferred the legal ownership of the product to the customer, which means that the customer already has the legal ownership of the product.

③The company has physically transferred the commodity to the customer, which means that the customer has physically taken possession of the commodity.

④ The company has transferred the main risks and rewards of ownership of the commodity to the customer, that is, the customer has obtained the main risks and rewards of ownership of the commodity.

⑤The customer has accepted the product.

⑥Other indications that the customer has obtained control of the product.

The company’s specific policies for revenue recognition:

①Preparation sales, commercial trade, raw material sales business

A. Domestic sales revenue recognition principles

According to the contract, the company delivers the product to the customer and the customer has accepted the product, has recovered the payment or obtained a receipt, and the relevant economic benefits are likely to flow in, and the control of the product has been transferred.

B. Principles for recognition of export sales revenue

In accordance with the contract, the company has declared and shipped the products, obtained customs declaration forms, has recovered the payment or obtained payment receipts and the relevant economic benefits are likely to flow in, and the control of the goods has been transferred.

②Services and other businesses

According to the contract, the company has provided labor services, has recovered the payment or obtained a receipt, and the relevant economic benefits are likely to flow in, and the control of the labor services has been transferred.

(2) Measurement of income

The company shall measure revenue based on the transaction price allocated to each individual performance obligation. When determining the transaction price, the Company considers the impact of variable consideration, significant financing components in the contract, non-cash consideration, consideration payable to customers and other factors.

①Variable consideration

The company determines the best estimate of variable consideration based on the expected value or the most likely amount, but the transaction price including variable consideration should not exceed the amount at which the accumulated recognized revenue is unlikely to be significantly reversed when the relevant uncertainty is eliminated. When an enterprise evaluates whether a major reversal of accumulated recognized revenue is unlikely to occur, it should also consider the possibility and proportion of revenue reversal.

②Significant financing components

If there is a significant financing component in the contract, the company shall determine the transaction price based on the amount payable in cash when the customer obtains control of the product. The difference between the transaction price and the contract consideration shall be amortized using the effective interest method during the contract period.

③Non-cash consideration

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

If the customer pays non-cash consideration, the company determines the transaction price based on the fair value of the non-cash consideration. If the fair value of the non-cash consideration cannot be reasonably estimated, the company determines the transaction price indirectly by referring to the stand-alone selling price of the goods it promises to transfer to the customer.

④Consideration payable to customers

For consideration payable to customers, the consideration payable shall be offset against the transaction price, and the current revenue shall be offset at the later of the recognition of relevant income and the payment (or commitment to pay) of the consideration to the customer, except where the consideration payable to the customer is for the purpose of obtaining other clearly distinguishable goods from the customer. If the consideration payable by an enterprise to a customer is to obtain other clearly distinguishable goods from the customer, the purchased goods shall be confirmed in a manner consistent with the company's other purchases. If the consideration payable by an enterprise to a customer exceeds the fair value of clearly distinguishable goods obtained from the customer, the excess amount shall be offset against the transaction price. If the fair value of clearly distinguishable goods obtained from customers cannot be reasonably estimated, the enterprise shall offset the full amount of the consideration payable to the customer against the transaction price.

Similar business adopts different business models and involves different revenue recognition methods and measurement methods.

Contract costs

Contract costs are divided into contract performance costs and contract acquisition costs.

If the costs incurred by the company to fulfill the contract meet the following conditions, they are recognized as contract performance costs as an asset: (1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred solely because of the contract;

(2) This cost increases the company’s resources for fulfilling its performance obligations in the future;

(3) The cost is expected to be recovered.

If the incremental costs incurred by the company to obtain the contract are expected to be recovered, they are recognized as an asset as the contract acquisition cost; however, if the amortization of the asset does not exceed one year, it can be included in the current profit and loss when incurred.

Assets related to contract costs are amortized on the same basis as revenue from goods or services related to the asset is recognized.

If the book value of assets related to contract costs is higher than the difference between the following two items, the company will make impairment provisions for the excess and recognize it as asset impairment losses:

(1) The remaining consideration expected to be obtained from the transfer of goods or services related to the asset;

(2) The estimated cost to be incurred in transferring the relevant goods or services.

If the above-mentioned asset impairment provision is subsequently reversed, the book value of the asset after the reversal shall not exceed the book value of the asset on the date of reversal if no impairment provision was made.

Government subsidies

(1) Government subsidies include asset-related government subsidies and income-related government subsidies.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(2) If the government subsidy is a monetary asset, it shall be measured according to the amount received or receivable; if the government subsidy is a non-monetary asset, it shall be measured at its fair value. If the fair value cannot be obtained reliably, it shall be measured at its nominal amount.

(3) Government subsidies adopt the total amount method:

① Government subsidies related to assets are recognized as deferred income and are included in profits and losses in installments according to a reasonable and systematic method within the useful life of the relevant assets. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the undistributed balance of relevant deferred income will be transferred to the profit and loss of the current period of asset disposal.

② If government subsidies related to income are used to compensate for relevant expenses or losses in the future period, they are recognized as deferred income, and are included in the current profits and losses during the period when the relevant expenses are recognized; if they are used to compensate for relevant expenses or losses that have already occurred, they are directly included in the current profits and losses.

(4) Government subsidies adopt the net amount method:

① Government subsidies related to assets will offset the book value of related assets;

② If the government subsidies related to income are used to compensate for relevant expenses or losses in the future period, they are recognized as deferred income, and the relevant costs are offset during the period when the relevant expenses are recognized; if they are used to compensate for the relevant expenses or losses that have already occurred, the relevant costs are directly offset.

(5) For government subsidies that contain both asset-related parts and income-related parts, different parts shall be distinguished for separate accounting treatment; if it is difficult to distinguish, the whole shall be classified as income-related government subsidies.

(6) The company will include government subsidies related to the company's daily activities into other income or offset relevant costs and expenses based on the economic business essence; government subsidies that are not related to the company's daily activities should be included in non-operating income and expenses.

(7) The company will handle the policy-based preferential loan interest discounts obtained in two cases: the finance will allocate the interest discount funds to the lending bank and the finance department will directly allocate the interest discount funds to the company:

① If the finance department allocates interest discount funds to the lending bank, and the lending bank provides loans to the company at policy preferential interest rates, the company chooses to conduct accounting treatment according to the following methods:

The actual amount of the loan received is used as the recorded value of the loan, and the relevant borrowing costs are calculated based on the loan principal and the policy preferential interest rate.
The fair value of the loan is used as the book value of the loan and the borrowing costs are calculated according to the actual interest rate method. The difference between the actual amount received and the fair value of the loan is recognized as deferred income. Deferred income is amortized using the effective interest rate method over the duration of the loan to offset related borrowing costs.

② If the finance department directly allocates interest discount funds to the company, the company will use the corresponding interest discount to offset related borrowing costs.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Deferred income tax assets/deferred income tax liabilities

(1) Based on the difference between the book value of assets and liabilities and their tax basis (if the tax basis of items not recognized as assets and liabilities can be determined in accordance with tax laws, the difference between the tax basis and their book amount), deferred income tax assets or deferred income tax liabilities are calculated and recognized according to the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled.

(2) Recognition of deferred income tax assets is limited to the amount of taxable income that is likely to be available to offset the deductible temporary differences. On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future period to offset the deductible temporary differences, deferred income tax assets that have not been recognized in previous accounting periods will be recognized.

(3) On the balance sheet date, review the book value of the deferred tax assets. If it is likely that sufficient taxable income will not be available in the future to offset the benefits of the deferred tax assets, the book value of the deferred tax assets will be written down. The amount of the write-down is reversed when it is probable that sufficient taxable income will be obtained.

(4) The company's current income tax and deferred income tax are included in the current profit and loss as income tax expenses or income, but do not include income tax arising from the following situations: ① business merger; ② transactions or events directly recognized in owner's equity.

The company uses the balance sheet debt method to recognize deferred income tax based on the temporary differences between the book values of assets and liabilities on the balance sheet date and their tax basis.

Each taxable temporary difference is recognized as a related deferred income tax liability, unless the taxable temporary difference is generated in the following transactions:

(1) Initial recognition of goodwill, or the initial recognition of assets or liabilities arising from a transaction with the following characteristics: the transaction is not a business combination, and the transaction affects neither accounting profits nor taxable income when it occurs;

(2) For taxable temporary differences related to investments in subsidiaries, joint ventures and associates, the reversal time of the temporary differences can be controlled and the temporary differences are likely not to be reversed in the foreseeable future.

For deductible temporary differences, deductible losses and tax credits that can be carried forward to future years, the company recognizes the resulting deferred income tax assets to the extent that it is likely to obtain future taxable income that can be used to offset the deductible temporary differences, deductible losses and tax credits, unless the deductible temporary differences are generated in the following transactions:

(1) The transaction is not a business combination, and when the transaction occurs, it affects neither accounting profits nor taxable income (except for individual transactions in which the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences);

(2) For deductible temporary differences related to investments in subsidiaries, joint ventures and associates, corresponding deferred income tax assets are recognized if the following conditions are met: the temporary differences are likely to be reversed in the foreseeable future, and it is likely to be taxable income that can be used to offset the deductible temporary differences in the future.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

On the balance sheet date, the Company's deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled, and the income tax impact of the expected method of recovering the asset or settling the liability on the balance sheet date is reflected.

Leasing

(1) Accounting treatment method for leasing as lessee

①Judgment basis

When the company is the lessee, on the start date of the lease period, except for short-term leases and low-value asset leases that choose to adopt simplified treatment, right-of-use assets and lease liabilities are recognized for the lease. A short-term lease refers to a lease with a term of no more than 12 months on the start date of the lease term. A lease that includes an option to purchase is not considered a short-term lease. Low-value asset leases refer to leases where the value of a single leased asset is less than 40,000 yuan when it is a brand-new asset.

②Accounting treatment method

On the commencement date of the lease term, the right-of-use asset is initially measured at cost. This cost includes: the initial measurement amount of the lease liability; the lease payment amount paid on or before the start date of the lease term, and if there is a lease incentive, the amount related to the lease incentive that has been enjoyed will be deducted; the initial direct costs incurred by the company as a lessee; the costs that the company as a lessee is expected to incur to dismantle and remove the leased assets, restore the site where the leased assets are located, or restore the leased assets to the state agreed upon in the lease terms. As a lessee, the Company recognizes and measures costs such as dismantling and restoration in accordance with "Accounting Standards for Business Enterprises No. 13 - Contingencies". Adjustments are made subsequently for any subsequent remeasurement of the lease liability. The Company uses the straight-line method to calculate depreciation. If the Company, as the lessee, can reasonably determine that it will obtain ownership of the leased asset at the expiration of the lease term, depreciation will be accrued over the remaining useful life of the leased asset. If it is not reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, depreciation will be accrued during the shorter of the lease term and the remaining useful life of the leased asset. For details on the impairment testing method and impairment provision accrual method for right-of-use assets, please refer to Note "V. 30. Impairment of Long-term Assets".

Lease liabilities are initially measured based on the present value of the unpaid lease payments at the beginning of the lease term using the interest rate implicit in the lease. If the interest rate implicit in the lease cannot be determined, the incremental borrowing rate is used as the discount rate. Lease payments include: fixed payments and substantive fixed payments, if there are lease incentives, less the amount related to the lease incentives; variable lease payments that depend on an index or ratio; the exercise price of the purchase option, provided that the lessee is reasonably certain that the option will be exercised; the amount required to exercise the option to terminate the lease, provided that the lease term reflects that the lessee will exercise the option to terminate the lease; and the amount expected to be paid based on the residual value of the guarantee provided by the lessee. Subsequently, the interest expense of the lease liability for each period during the lease term is calculated based on the fixed periodic interest rate and included in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when actually incurred.

For short-term leases and low-value asset leases, the company chooses not to recognize right-of-use assets and lease liabilities, and the lease payments for short-term leases and low-value asset leases are included in the relevant asset costs or current profits and losses on a straight-line basis during each period of the lease term.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

③Lease change

If a lease changes and the following conditions are met at the same time, the company will account for the lease change as a separate lease: ① The lease change expands the scope of the lease by adding the right to use one or more leased assets; ② The increased consideration is equivalent to the amount of the individual price of the expanded part of the lease scope adjusted according to the conditions of the contract.

If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the company re-allocates the consideration of the contract after the change, re-determines the lease term, and re-measures the lease liability based on the present value of the lease payment after the change and the revised discount rate. If a change in the lease results in a reduction in the scope of the lease or a shortening of the lease period, the company will reduce the book value of the right-of-use assets accordingly, and include the related gains or losses from the partial or complete termination of the lease into the current profits and losses.

If other lease changes result in the remeasurement of lease liabilities, the company will adjust the book value of the right-of-use assets accordingly.

(2) Accounting treatment method for leasing as lessor

①Financial lease

As a lessor, the Company recognizes finance lease receivables for finance leases on the start date of the lease period, terminates the recognition of finance lease assets, and calculates and recognizes interest income for each period during the lease term based on fixed periodic interest rates.

②Operating lease

As the lessor, the company uses the straight-line method to recognize the lease receipts from operating leases as rental income during each period during the lease term. The initial direct expenses related to the operating lease will be capitalized, amortized during the lease period on the same basis as the rental income recognition, and included in the current profit and loss in installments.

For fixed assets included in operating lease assets, the company shall use the depreciation policy for similar assets to calculate depreciation; for other operating lease assets, it shall use a systematic and reasonable method for amortization in accordance with the business accounting standards applicable to the assets. In accordance with the provisions of "Accounting Standards for Business Enterprises No. 8 - Impairment of Assets", the Company determines whether operating lease assets are impaired and performs corresponding accounting treatments.

③Lease change

If an operating lease changes, the Company will account for it as a new lease from the effective date of the change, and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the amount of receipts from the new lease.

If a financial lease changes and the following conditions are met at the same time, the company will account for the change as a separate lease: ① The change expands the scope of the lease by increasing the use rights of one or more leased assets; ② The increased consideration is equivalent to the amount of the individual price of the expanded part of the lease scope adjusted according to the conditions of the contract.

If a financial lease is changed and is not accounted for as a separate lease, the company will treat the changed lease under the following circumstances: A. If the change takes effect on the lease start date, the lease will be classified as an operating lease, the company will account for it as a new lease from the effective date of the lease change, and use the net lease investment before the lease change effective date as the book value of the leased asset; B.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

If the change takes effect on the lease commencement date, the lease will be classified as a finance lease. The company shall comply with the Accounting Standards for Business Enterprises No. 22 -

"Recognition and Measurement of Financial Instruments" provides accounting treatment for modifying or renegotiating contracts.

Other important accounting policies and accounting estimates
Changes in important accounting policies and accounting estimates

(1) Changes in important accounting policies

□Applicable Not applicable

(2) Changes in important accounting estimates

□Applicable Not applicable

(3) Adjustments to relevant items in the financial statements at the beginning of the year when the new accounting standards are first implemented starting from 2025.

□Applicable Not applicable

Others

6. Taxes

Main tax types and tax rates

Type of tax Tax calculation basis Tax rate

Taxable value-added amount (taxable amount is based on taxable sales

Value-added tax: The sales amount is multiplied by the applicable tax rate to deduct the amount allowed for the current period: 3%, 5%, 6%, 9%, 13%

Calculation of the balance after input tax)

Urban maintenance and construction tax Actual turnover tax paid 5%, 7%

Corporate income tax: taxable income 15%, 16.5%, 19%, 20%, 25%

Education fee surcharge Actual turnover tax paid 3%

Local education surcharge Actual turnover tax paid 2%

Property tax 70% of the original value of the property (or rental income) 1.2%, 12%

If there are taxpayers with different corporate income tax rates, a description of the disclosure

Name of tax payer Income tax rate

Northeast Pharmaceutical Group Co., Ltd. 15.00% Northeast Pharmaceutical Group Shenyang Daiichi Pharmaceutical Co., Ltd. 15.00% Dongyao Group Shenyang Shide Pharmaceutical Co., Ltd. 15.00% Northeast Pharmaceutical Group Liaoning Biomedicine Co., Ltd. 15.00% Shenyang Dongrui Fine Chemical Co., Ltd. 15.00% Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. 15.00% Shenyang Million Transportation Co., Ltd. 20.00% Northeast Pharmaceutical Group Shenyang Planning and Control Co., Ltd. 20%

Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Full Text Other Subsidiaries 25.00%

Tax incentives

(1)Income tax

①On December 8, 2025, the company obtained the "High-tech Enterprise Certificate" No. GR202521000429 jointly issued by the Liaoning Provincial Department of Science and Technology, the Liaoning Provincial Department of Finance, the State Administration of Taxation and the Liaoning Provincial Taxation Bureau, and will be levied a corporate income tax at a reduced rate of 15% from 2025 to 2027.

②On November 27, 2024, the company's subsidiary Northeast Pharmaceutical Group Shenyang First Pharmaceutical Co., Ltd. received the "High-tech Enterprise Certificate" No. GR202421001093 jointly issued by the Liaoning Provincial Department of Science and Technology, the Liaoning Provincial Department of Finance, and the State Administration of Taxation, Liaoning Provincial Taxation Bureau, and will be levied a corporate income tax at a reduced rate of 15% from 2024 to 2026.

③On November 27, 2024, the company's grandson Dongyao Group Shenyang Shide Pharmaceutical Co., Ltd. received the "High-tech Enterprise Certificate" No. GR202421000355 jointly issued by the Liaoning Provincial Department of Science and Technology, the Liaoning Provincial Department of Finance, and the State Administration of Taxation, Liaoning Provincial Taxation Bureau, and will be levied a corporate income tax at a reduced rate of 15% from 2024 to 2026.

④On December 8, 2025, the company's holding subsidiary Shenyang Dongrui Fine Chemical Co., Ltd. received the "High-tech Enterprise Certificate" No. GR202521000422 jointly issued by the Liaoning Provincial Department of Science and Technology, the Liaoning Provincial Department of Finance, and the State Administration of Taxation and the Liaoning Provincial Taxation Bureau. From 2025 to 2027, the corporate income tax will be levied at a reduced rate of 15%.

⑤On November 27, 2024, the company's controlled subsidiary Northeast Pharmaceutical Group Liaoning Biopharmaceutical Co., Ltd. received the "High-tech Enterprise Certificate" No. GR202421000578 jointly issued by the Liaoning Provincial Department of Science and Technology, the Liaoning Provincial Department of Finance, and the State Administration of Taxation, Liaoning Provincial Taxation Bureau, and will be levied a corporate income tax at a reduced rate of 15% from 2024 to 2026.

⑥On October 29, 2024, the company's holding subsidiary Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. received the "High-tech Enterprise Certificate" No. GR202411003838 jointly issued by the Beijing Municipal Science and Technology Commission, Beijing Municipal Finance Bureau, and Beijing Municipal Taxation Bureau of the State Administration of Taxation, and will be levied a corporate income tax at a reduced rate of 15% from 2024 to 2026.

⑦The company's subsidiaries Shenyang Million Transportation Co., Ltd., Sundong Company Northeast Pharmaceutical Group Shenyang Control Co., Ltd., Shenyang Zhongnuo Pharmaceutical Co., Ltd., Gansu Dongyao Mingzutang Medical Equipment Co., Ltd., Gansu Fangda Fuhuang Dongxi Collaborative Garment Co., Ltd., according to the announcement of the Ministry of Finance and the State Administration of Taxation on further supporting the development of small and micro enterprises and individual businesses (Ministry of Finance The State Administration of Taxation Announcement No. 12 of 2023) provides a policy for small and low-profit enterprises to calculate taxable income at a reduced rate of 25% and pay corporate income tax at a tax rate of 20%. (2) Value-added tax

①The export products of the company and its holding subsidiary Shenyang Dongrui Fine Chemical Co., Ltd. enjoy the preferential tax policy of VAT exemption and refund; the export products of the company's subsidiary Shenyang Northeast Pharmaceutical Import and Export Trading Co., Ltd. enjoy the preferential tax policy of VAT exemption and refund, and the export products of the company's grandson Shenyang Zhongnuo Pharmaceutical Co., Ltd. enjoy the preferential tax policy of VAT exemption and refund.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

②The sales of contraceptives and appliances by the Company's subsidiaries Northeast Pharmaceutical Group Shenyang First Pharmaceutical Co., Ltd., Northeast Pharmaceutical Group Supply and Marketing Co., Ltd., and Shenyang Northeast Pharmacy Chain Co., Ltd. are exempt from value-added tax.

③According to Article 1 of the "Announcement of the Ministry of Finance and the State Administration of Taxation on the Additional Value-Added Tax Deduction Policy for Advanced Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the State Administration of Taxation of 2023), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to add additional input tax deductible according to the current period. 5% of the value-added tax payable is deducted. The company and its subsidiaries Northeast Pharmaceutical Group Shenyang No. 1 Pharmaceutical Co., Ltd., Shenyang Dongrui Fine Chemical Co., Ltd., and Northeast Pharmaceutical Group Liaoning Biomedicine Co., Ltd. enjoy the VAT tax preferential treatment of additional input tax deduction.

Others

7. Notes on Consolidated Financial Statement Items

Monetary funds

Unit: Yuan

Item Ending balance Beginning balance

Cash on hand 1,353.14 780.57 Bank deposits 2,888,346,333.25 2,124,748,023.45 Other monetary funds 713,407,087.38 2,343,583,612.79 Total 3,601,754,773.77 4,468,332,416.81

Including: Total amount deposited abroad 3,027,647.56 2,701,724.65 Other instructions:

At the end of the period, there were 749,507,665.83 yuan of funds with restrictions on use such as mortgages, pledges, and freezes.

The details of restricted monetary funds are as follows:

Unit: Yuan

Item Ending balance Beginning balance

Bank acceptance bill deposit 711,658,627.89 2,342,235,612.79 Frozen bank deposits 36,100,577.94 26,757,200.08 Other restricted funds 1,748,460.00

Performance guarantee letter of credit deposit 1,348,000.00 Total 749,507,665.83 2,370,340,812.87

Trading financial assets

Unit: Yuan

Item Ending balance Beginning balance

Measured at fair value with changes included in current profit and loss

350,622.31

beneficial financial assets

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Among them:

Derivative financial assets 350,622.31

Among them:

Total 350,622.31

Other notes:

Derivative financial assets

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Notes receivable

(1) Classified presentation of notes receivable

Unit: Yuan

Item Ending balance Beginning balance

Bank acceptance notes 440,776,337.16 534,622,306.52 Total 440,776,337.16 534,622,306.52

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

its

Medium:

by combination

bad provision

440,776 440,776 534,622 534,622Account provision 100.00% 100.00%

,337.16,337.16,306.52,306.52 receivables

bill

its

Medium:

Bank commitments 440,776 440,776 534,622 534,622

100.00% 100.00%

Exchange draft ,337.16 ,337.16 ,306.52 ,306.52

440,776 440,776 534,622 534,622Total 100.00% 100.00%

,337.16 ,337.16 ,306.52 ,306.52 Provision for bad debts based on combination:

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Bank acceptance bill 440,776,337.16

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Total 440,776,337.16

Description of what this combination is based on:

If bad debt provisions for notes receivable are made according to the general expected credit loss model:

□Applicable Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or transfer Write-off Others

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable Not applicable

(4) Notes receivable pledged by the company at the end of the period

Unit: Yuan Project Amount pledged at the end of the period

Bank acceptance notes 195,023,553.29 Total 195,023,553.29

(5) Notes receivable that have been endorsed or discounted by the company at the end of the period and have not yet matured on the balance sheet date

Unit: Yuan Item Amount derecognized at the end of the period Amount not derecognized at the end of the period

Bank acceptance notes 114,893,569.41 Total 114,893,569.41

(6) Notes receivable actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off of bills receivable:

Unit: Whether the Yuan amount is paid by the related unit, nature of the note receivable, write-off amount, reason for write-off, write-off procedures performed

transaction generated

Instructions for writing off notes receivable:

Accounts receivable

(1) Disclosure based on aging

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 1,601,703,886.32 1,888,265,621.97 1 to 2 years 141,020,648.73 87,920,682.00 2 to 3 years 20,101,465.30 8,701,287.67 More than 3 years 297,104,594.06 301,404,299.56 3 to 4 years 5,160,603.55 9,248,409.15 4 to 5 years 7,721,465.43 11,406,624.95

More than 5 years 284,222,525.08 280,749,265.46 Total 2,059,930,594.41 2,286,291,891.20

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

bad provision

33,257, 33,257, 33,644, 33,644,

Account provision 1.61% 100.00% 1.47% 100.00%

677.09 677.09 663.83 663.83

receivables

Accounts

its

Medium:

by combination

Bad provision 2,026,6 1,732,9 2,252,6 1,959,0

293,771 293,617

Account provision 72,917. 98.39% 14.50% 01,284. 47,227. 98.53% 13.03% 29,870.

,632.80 ,356.68

Accounts receivable 32 52 37 69

its

Medium:

sea of receivables

63,683, 13,751, 49,932, 83,100, 13,818, 69,281, foreign enterprises 3.09% 21.59% 3.63% 16.63%

272.54 061.15 211.39 102.26 311.73 790.53Customers

Receivable country 1,136,0 1,077,3 1,343,6 1,288,9

58,723, 54,609,

Internal medicine 23,578. 55.15% 5.17% 00,336. 01,492. 58.77% 4.06% 91,592.

241.16 899.90

Institution 11 95 77 87 Medical receivable

Drug circulation 826,966 221,297 605,668 825,945 225,189 600,756

40.15% 26.76% 36.13% 27.26%

and others, 066.67, 330.49, 736.18, 632.34, 145.05, 487.29 customers

2,059,9 1,732,9 2,286,2 1,959,0 327,029 327,262

Total 30,594. 100.00% 15.88% 01,284. 91,891. 100.00% 14.31% 29,870. ,309.89 ,020.51

41 52 20 69 Provision for bad debts on an individual basis: 33,257,677.09 yuan

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Shanghai Hanfei Biochemical 24,504,443.83 24,504,443.83 24,117,457.09 24,117,457.09 100.00% Involving litigation, pre-payment

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Technology Co., Ltd. cannot recover Shanghai Zhiduo Xingshi and is involved in litigation.

9,140,220.00 9,140,220.00 9,140,220.00 9,140,220.00 100.00%

Industrial Co., Ltd. The plan cannot be recovered

Total 33,644,663.83 33,644,663.83 33,257,677.09 33,257,677.09

Provision for bad debts by portfolio: receivable from overseas corporate customers

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 49,070,739.27 574,127.65 1.17% 1-2 years (including 2 years) 1,310,963.44 580,494.61 44.28% 2-3 years (including 3 years) 2,233,999.60 1,688,903.70 75.60% 3-4 years (including 4 years) 1,684,670.14 1,542,989.38 91.59% 4-5 years (including 5 years) 746,109.03 727,754.75 97.54% More than 5 years 8,636,791.06 8,636,791.06 100.00%

Total 63,683,272.54 13,751,061.15

Description of what this combination is based on:

Provision for bad debts by portfolio: receivable from domestic medical institutions

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 956,589,525.18 4,495,970.76 0.47% 1-2 years (including 2 years) 123,722,770.07 7,460,483.04 6.03% 2-3 years (including 3 years) 15,016,982.97 6,946,856.31 46.26% 3-4 years (including 4 years) 1,800,995.18 1,396,671.77 77.55% 4-5 years (including 5 years) 5,384,254.56 4,914,209.13 91.27% More than 5 years 33,509,050.15 33,509,050.15 100.00%

Total 1,136,023,578.11 58,723,241.16

Description of what this combination is based on:

Provision for bad debts by portfolio: receivables from pharmaceutical circulation and other customers

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 596,043,621.87 4,057,002.23 0.68% 1-2 years (including 2 years) 15,986,915.22 3,620,469.61 22.65% 2-3 years (including 3 years) 2,850,482.73 1,692,304.73 59.37% 3-4 years (including 4 years) 1,674,938.23 1,517,445.30 90.60% 4-5 years (including 5 years) 1,591,101.84 1,591,101.84 100.00% More than 5 years 208,819,006.78 208,819,006.78 100.00%

Total 826,966,066.67 221,297,330.49

Description of what this combination is based on:

If bad debt provisions for accounts receivable are made according to the general expected credit loss model:

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off Others

Provision for bad debts 327,262,020.51 264,276.12 386,986.74 110,000.00 327,029,309.89 Total 327,262,020.51 264,276.12 386,986.74 110,000.00 327,029,309.89 Among them, the amount of bad debt provision recovery or reversal in the current period is important:

Unit: Yuan Determine the name of the original bad debt provision accrual unit, the recovery or reversal amount, the reason for the reversal, the recovery method, the basis for the ratio and its rationality

(4) Accounts receivable actually written off in the current period

Unit: yuan item write-off amount

Actual write-off of accounts receivable 110,000.00 Among them, the important write-off of accounts receivable:

Unit: Yuan Whether the amount is paid by the name of the related unit Nature of accounts receivable Amount of write-off Reason for write-off The write-off procedures performed

transaction generated

Instructions for writing off accounts receivable:

(5) Accounts receivable and contract assets with the top five closing balances collected by debtors

Unit: Yuan accounts receivable and combined accounts receivable, bad debts, quasi-accounts receivable, ending balance, contract assets, ending balance, accounts receivable and contracts

Unit name Closing balance of same assets Provision and contract asset reduction amount Closing balance of assets

Proportion of total value Preparation ending balance China Medical University Attachment

65,361,361.33 65,361,361.33 3.16% 602,720.00 Belongs to the First Hospital

Shenyang No. 242 Hospital 49,767,729.33 49,767,729.33 2.41% 365,669.29 Yingkou Fangda Hospital has

47,790,321.34 568,089.11 48,358,410.45 2.34% 235,584.81 Co., Ltd.

Huludao Central Hospital

35,026,447.52 35,026,447.52 1.70% 405,166.43 Hospital

Shenyang Fifth People's Government

33,770,126.88 33,770,126.88 1.64% 537,806.64Hospital

Total 231,715,986.40 568,089.11 232,284,075.51 11.25% 2,146,947.17

Contract assets

(1) Contract assets

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Ending balance Beginning balance

Project

Book balance Bad debt provision Book value Book balance Bad debt provision Book value Receivables quality assurance

5,420,985.89 113,902.81 5,307,083.08 1,290,337.53 482,848.30 807,489.23 gold

Total 5,420,985.89 113,902.81 5,307,083.08 1,290,337.53 482,848.30 807,489.23

(2) Amount and reasons of major changes in book value during the reporting period

Unit: Yuan

Item Amount of change Reason for change

(3) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value Example

Among them:

Provision based on portfolio 5,420,9 100.0 113,90 5,307,0 1,290,3 482,848 807,489

2.10% 100.00% 37.42%

Provision for bad debts 85.89 0% 2.81 83.08 37.53 .30 .23Among them:

5,420,9 100.0 113,90 5,307,0 1,290,3 482,848 807,489Quality deposit 2.10% 100.00% 37.42%

85.89 0% 2.81 83.08 37.53 .30 .23 5,420,9 100.0 113,90 5,307,0 1,290,3 482,848 807,489Total 2.10% 100.00% 37.42%

85.89 0% 2.81 83.08 37.53 .30 .23 Provision for bad debts by combination: quality margin

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 4,986,064.05 40,885.75 0.82% 1-2 years (including 2 years) 404,272.54 42,367.76 10.48% More than 5 years 30,649.30 30,649.30 100.00%

Total 5,420,985.89 113,902.81

Description of what this combination is based on:

Provision for bad debts based on the general expected credit loss model

□Applicable Not applicable

(4) Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Item Provision in the current period Recovery or transfer in the current period Write-off/write-off in the current period Reasons

The reversal in the current period is reclassified to bad debt provisions 62,937.78 431,883.27 0.00

Accounts receivable

Total 62,937.78 431,883.27 ——

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Other notes:

(5) Contract assets actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off of contract assets

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

Instructions for writing off contract assets generated by transactions:

Other notes:

Accounts receivable financing

(1) Classified presentation of financing receivables

Unit: Yuan Item Ending balance Beginning balance

Bank acceptance bill 244,430,667.26

Total 244,430,667.26

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

1. Joint ventures

2. Joint ventures

Hunan

Han Jing -

6,127 4,730

Reamin 1,396

,595. ,908.

Basic acids, 687.

39 12

Limited 27

company

1,500 1,500 1,500 gross

,000. ,000. ,000. Seek

00 00 00

7,627 6,230 1,500

1,396

Subtotal ,595. ,908. ,000. ,687.

39 12 00

7,627 6,230 1,500

1,396

Total ,595. ,908. ,000. ,687.

39 12 00

The recoverable amount is determined as the net amount after fair value minus disposal costs.

□Applicable Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

Other notes:

Other non-current financial assets

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Investment real estate

(1) Investment real estate using cost measurement model

□Applicable Not applicable

(2) Investment real estate using fair value measurement model

□Applicable Not applicable

(3) Converted to investment real estate and measured at fair value

Unit: Accounting Section before yuan conversion Amount of other comprehensive income items Reason for conversion Approval procedure Impact on profit and loss

Benefit impact

(4) Investment real estate that has not completed the ownership certificate

Unit: Yuan Item Book value Reasons for not completing the property rights certificate

Other notes:

Fixed assets

Unit: Yuan Item Ending balance Beginning balance

Fixed assets 3,488,511,658.10 3,853,775,267.88 Liquidation of fixed assets

Total 3,488,511,658.10 3,853,775,267.88

(1) Fixed assets

Unit: Yuan Items Houses and buildings Machinery and equipment Transportation Electronic equipment and others Total

1. Original book value:

8,311,306,195. 1. Opening balance 3,131,732,687.16 4,994,151,426.59 38,051,511.86 147,370,570.32

2.Increase in this period

23,129,715.62 81,478,760.39 1,030,934.78 2,116,264.66 107,755,675.45Amount

(1) Purchase

407,727.01 4,025,799.40 139,824.80 4,573,351.21

(2) in

22,721,988.61 77,452,960.99 1,030,934.78 1,976,439.86 103,182,324.24 Construction project transferred in

(3) Enterprise

Increase in business mergers

Reduction in this period

63,789,847.33 1,189,027.52 3,523,833.92 68,502,708.77Amount

(1) Department 63,789,847.33 1,189,027.52 3,523,833.92 68,502,708.77

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

dispose or scrap

8,350,559,162. 4. Closing balance 3,154,862,402.78 5,011,840,339.65 37,893,419.12 145,963,001.06

2. Accumulated depreciation

4,446,203,872. 1. Opening balance 1,060,732,997.96 3,232,977,910.89 23,372,412.63 129,120,550.65

2.Increase in this period

124,042,436.94 335,105,416.31 2,585,437.15 5,692,619.39 467,425,909.79Amount

(1) Count

124,042,436.94 335,105,416.31 2,585,437.15 5,692,619.39 467,425,909.79

Reduction in this period

60,384,440.43 1,131,526.16 1,393,366.74 62,909,333.33Amount

(1) place

60,384,440.43 1,131,526.16 1,393,366.74 62,909,333.33 Disposal or scrapping

4,850,720,448. 4. Closing balance 1,184,775,434.90 3,507,698,886.77 24,826,323.62 133,419,803.30

3. Impairment provision

Opening balance 9,096,751.54 1,670,115.22 560,189.16 11,327,055.92 2. Increase in this period

Amount

(1) Count

mention

Reduction in this period

Amount

(1) place

dispose or scrap

Closing balance 9,096,751.54 1,670,115.22 560,189.16 11,327,055.92

4. Book value

Closing balance sheet 3,488,511,658.

1,960,990,216.34 1,502,471,337.66 13,067,095.50 11,983,008.60

Value 10 2. Opening book 3,853,775,267.

2,061,902,937.66 1,759,503,400.48 14,679,099.23 17,689,830.51

Value 88

(2) Temporarily idle fixed assets

Unit: Yuan

Item Original book value Accumulated depreciation Impairment provision Book value Remarks

(3) Fixed assets leased through operating leases

Unit: Yuan

Item Closing book value

(4) Fixed assets whose property rights certificates have not been obtained

Unit: Yuan

Item Book value Reason for not completing the property rights certificate

Houses and buildings 1,031,888,409.73 In process

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other notes:

(5) Impairment testing of fixed assets

□Applicable Not applicable

(6) Fixed assets liquidation

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Projects under construction

Unit: Yuan

Item Ending balance Beginning balance

Projects under construction 92,476,496.27 111,595,668.65 Project materials 6,632,091.87 43,880,518.74

Total 99,108,588.14 155,476,187.39

(1) Projects under construction

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

72,724,851.1 20,948,250.2 51,776,600.8 79,631,026.1 20,948,250.2 58,682,775.9 Xihe Relocation Project

3 4 9 4 4 0Biological drugs under development 22,818,256.4 22,818,256.4 36,928,899.8 36,928,899.8Central project 9 9 9 9

19,442,705.5 17,881,638.8 17,545,059.4 15,983,992.8 Other projects 1,561,066.62 1,561,066.62

1 9 8 6 114,985,813. 22,509,316.8 92,476,496.2 134,104,985. 22,509,316.8 111,595,668.Total

13 6 7 51 6 65

(2) Changes in important projects under construction during the current period

Unit: yuan current period

The number of projects in this period includes: This period

Transfer in this period

Project budget Beginning of period Others End of period Estimated investment Project progress Interest capitalization Interest funds for the period

increase fixed

Name Number Balance Decrease Balance Accounted for Budget Cumulative Amount Interest Capital Capital Source Amount Assets

Amount Ratio Amount Ratio

Amount

3,46 79,6 10,7

Small river 3,82 72,72

1,78 31,0 27,2 233,063,95

Relocation 1,03 4,851 88.10% 97.05% Others

4,90 26.1 14.0 4.53

Engineering 9.07.13

0.00 4 8

Biology 107, 36,9 45,2 59,9

22,31

Yaoyan 200, 28,8 90,6 09,3

0,256 76.00% 81.55% Other hits 000. 99.8 94.9 38.3

.48

Heart item 00 9 8 9

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Head

3,56 116, 49,1 70,6

95,03

8,98 559, 11,7 36,5 233,063,95

Total 5,107

4,90 926. 34.0 52.4 4.53

.61

0.00 03 5 7

(3) Provision for impairment of projects under construction in the current period

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Reason for provision

Xihe relocation project 20,948,250.24 20,948,250.24 Construction suspended

Other projects 1,561,066.62 1,561,066.62 Construction suspended

Total 22,509,316.86 22,509,316.86 --

Other notes:

(4) Impairment testing of projects under construction

Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

Applicable □Not applicable

Unit: Yuan

fair value and disposal

Specific items of key parameters Book value Recoverable amount Impairment amount Determination of acquisition costs Key parameters

basis method

"Accounting Standards for Business Enterprises No. 8 - Asset Impairment Test"
"Accounting Standards for Business Enterprises No. 39 - Fair Value Measurement"
"Asset Appraisal Practice Guidelines - Fair Value of Assets and Chattels"

Fair value adopted

= Full replacement price × 4. Construction in progress is determined by market law;

Xihe relocation project 39,409,100.00 44,921,000.00 Comprehensive success rate

Market transaction discount tickets and settlement fees are related taxes and fees

Rate materials, bidding related information

Asset impairment test data of previous years
On-site investigation records by asset appraisal professionals 7. Other information related to this appraisal

Total 39,409,100.00 44,921,000.00

The recoverable amount is determined based on the present value of expected future cash flows.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

□Applicable Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

Other notes:

(5) Engineering materials

Unit: Yuan

Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

6,556,100.4 43,804,527.2 Special equipment 8,300,566.01 1,744,465.60 45,548,992.88 1,744,465.60

1 8 Special materials 315,270.07 239,278.61 75,991.46 315,270.07 239,278.61 75,991.46

6,632,091.8 43,880,518.7 Total 8,615,836.08 1,983,744.21 45,864,262.95 1,983,744.21

7 4Other instructions:

Productive biological assets

(1) Productive biological assets using cost measurement model

□Applicable Not applicable

(2) Impairment testing of productive biological assets using the cost measurement model

□Applicable Not applicable

(3) Productive biological assets using fair value measurement model

□Applicable Not applicable

Oil and gas assets

□Applicable Not applicable

Right-of-use assets

(1) Right-of-use assets

Unit: Yuan

Project Houses and Buildings Total

1. Original book value

Opening balance 98,554,114.95 98,554,114.95 2. Increase in the current period 13,182,765.71 13,182,765.71 (1) Rental 13,182,765.71 13,182,765.71 3. Decrease in the current period 17,827,686.71 17,827,686.71 (1) Maturity or change 17,827,686.71 17,827,686.71 4. Closing balance 93,909,193.95 93,909,193.95

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

2. Accumulated depreciation

Balance at the beginning of the period 43,911,847.83 43,911,847.83 2. Increase in the current period 24,994,524.44 24,994,524.44

(1) Provision 24,994,524.44 24,994,524.44 3. Decrease amount in the current period 17,664,400.10 17,664,400.10

(1) Disposal 17,664,400.10 17,664,400.10 4. Closing balance 51,241,972.17 51,241,972.17

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

Ending balance

4. Book value

Book value at the end of the period 42,667,221.78 42,667,221.78 2. Book value at the beginning of the period 54,642,267.12 54,642,267.12

(2) Impairment testing of right-of-use assets

□Applicable Not applicable

Other notes:

Intangible assets

(1) Intangible assets

Unit: Yuan

Project Land use rights Patent rights Non-patented technology Software Total

1. Original book value

1,106,650,653.0 1. Opening balance 668,438,706.73 203,897,032.44 164,443,023.76 69,871,890.08

Increase the amount of money in this period

17,009,174.31 5,627,522.77 414,249.45 23,050,946.53

(1) Purchase

414,249.45 414,249.45

(2) within

5,627,522.77 5,627,522.77 R&D

(3) Enterprise

Increase in business mergers

(4) Other increases 17,009,174.31 17,009,174.31 3. Decrease in cash for the current period

(1) place

set

Closing balance 685,447,881.04 203,897,032.44 170,070,546.53 70,286,139.53 1,129,701,599.5

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

2. Accumulated amortization

Opening balance 213,320,912.87 49,193,688.89 103,424,533.96 45,948,080.21 411,887,215.93 2. Increase in current period

13,864,823.32 16,114,037.27 12,229,561.08 7,448,606.08 49,657,027.75

(1) Count

13,864,823.32 16,114,037.27 12,229,561.08 7,448,606.08 49,657,027.75

Reduction of funds in this period

(1) place

set

Closing balance 227,185,736.19 65,307,726.16 115,654,095.04 53,396,686.29 461,544,243.68

3. Impairment provision

Opening balance 545,337.26 4,766,051.46 1,620,683.63 6,932,072.35 2. Increase in current period

(1) Count

mention

Reduction of funds in this period

(1) place

set

Closing balance 545,337.26 4,766,051.46 1,620,683.63 6,932,072.35

4. Book value

Closing book price

457,716,807.59 133,823,254.82 52,795,767.86 16,889,453.24 661,225,283.51 value

Book price at the beginning of the period

454,572,456.60 149,937,292.09 59,397,806.17 23,923,809.87 687,831,364.73 value

At the end of the period, the intangible assets formed through the company's internal research and development accounted for 33.10% of the balance of intangible assets.

(2) Data resources recognized as intangible assets

□Applicable Not applicable

(3) Land use rights for which property rights certificates have not been obtained

Unit: Yuan

Item Book value Reasons for not completing the property ownership certificate Logistics Center of Northeast Pharmaceutical Group Supply and Marketing Co., Ltd. 2,354,291.21 Relevant procedures have not been completed Other explanations:

(4) Impairment testing of intangible assets

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Goodwill

(1) Original book value of goodwill

Unit: Yuan

Increase in this period Decrease in this period

Name of the invested unit or events that formed goodwill. Opening balance. Business merger. Closing balance. Other disposals.

formed

Dongyao Group Huludao Pharmaceutical Co., Ltd. 21,405,677.44 21,405,677.44 Northeast Pharmaceutical Jinzhou Pharmaceutical Co., Ltd. 6,830,792.03 6,830,792.03 Northeast Pharmaceutical Liaoyang Pharmaceutical Co., Ltd. 6,272,544.32 6,272,544.32 Northeast Pharmaceutical Dandong Pharmaceutical Co., Ltd. 2,431,797.82 2,431,797.82 Dongyao Group Jilin Pharmaceutical Co., Ltd. 475,267.53 475,267.53 Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. 128,328,472.43 128,328,472.43

Total 165,744,551.57 165,744,551.57

(2) Goodwill impairment provision

Unit: Yuan The name of the invested unit or the formation of goodwill. Increase in the current period. Decrease in the current period.

Beginning balance Closing balance

Item accrual disposal

Northeast Pharmaceutical Jinzhou Pharmaceutical Co., Ltd. 3,083,469.79 3,083,469.79 Northeast Pharmaceutical Liaoyang Pharmaceutical Co., Ltd. 5,306,939.19 5,306,939.19 Northeast Pharmaceutical Dandong Pharmaceutical Co., Ltd. 2,431,797.82 2,431,797.82 Dongyao Group Jilin Pharmaceutical Co., Ltd. 475,267.53 475,267.53 Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. 1,043,237.42 1,043,237.42

Total 11,297,474.33 1,043,237.42 12,340,711.75

(3) Relevant information about the asset group or asset group combination where the goodwill is located

Whether it is consistent with the name, the composition and basis of the asset group or combination it belongs to, the operating segment it belongs to and its basis, the previous year's guarantee

Consistent with Dongdong Pharmaceutical Group Huludao Pharmaceutical Co., Ltd. Fixed assets, intangible assets and goodwill Pharmaceutical commercial sales channels Yes

Northeast Pharmaceutical Jinzhou Pharmaceutical Co., Ltd. Fixed assets, intangible assets and goodwill Pharmaceutical commercial sales channels Yes

Northeast Pharmaceutical Liaoyang Pharmaceutical Co., Ltd. Fixed assets, intangible assets and goodwill Pharmaceutical commercial sales channels Yes

Goodwill, fixed assets, development expenditures, intangible assets

Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. Biomedicine R&D Channel Yes

assets, long-term deferred expenses and right-of-use assets

Changes in asset group or asset group combination

Name Composition before change Composition after change Objective facts and basis leading to change

Other instructions

The goodwill generated by the Company's acquisition of Beijing Dingcheng Peptide Biotechnology Co., Ltd. includes part of the goodwill generated by the recognition of deferred income tax liabilities. This year, goodwill impairment provisions of RMB 1,043,237.42 were made due to the amortization of deferred income tax liabilities.

(4) Specific determination method of recoverable amount

The recoverable amount is determined as the net amount after fair value minus disposal costs.

Applicable □Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Unit: Yuan

fair value and disposal

Specific items of key parameters Book value Recoverable amount Impairment amount Determination of acquisition costs Key parameters

basis method

Management adopts forecast based on medical management. Management adopts forecast based on data.

Pharmaceutical industry volatility measures future net cash production group-wide research

and the underlying asset flow approach and fair issuance pipeline clinical

Future expected earnings value minus disposal progress, market trends

situation, use the energy cost method to analyze the situation of competitive products in the receivable category and

Evaluate the amount that can reflect the amount of assets combined and the products under development.

The value of the R&D pipeline is estimated based on whichever has the highest development prospects.

Beijing Dingcheng Peptide Source The expected wave of fluctuation is 772,266,669. 843,797,029. The principle is determined. Its relevant important leave

Biotechnology has limited momentum

62 36, the asset group is public, including those under research

Company 27.70%-

Calculation of R&D Weekly for New Drugs

28.13%; discounted using binary tree actual period, research and development results

The rate is calculated using the inverse property option method, and patients taking medications

The research and development of the reflecting asset group is determined, and the disposal fee quantity and per capita usage

The successful launch of pipelines mainly includes drug cost and production cost.

Wind brand transaction fees after sale and after product launch

The rate of return on risk is related to taxes and fees. Sales pricing etc.

14.29%.

772,266,669. 843,797,029.

total

62 36

The recoverable amount is determined based on the present value of expected future cash flows.

Applicable □Not applicable

Unit: Yuan

Impairment in the stable period Key in the forecast period Impairment in the stable period

Item Book value Recoverable amount Key parameter Exact amount Year Parameter Key parameter

Determine the operating income during the forecast period based on

Input growth rate respectively

is 46.40%,

3.00%,

Income growth: stable period income 3.00%,

Rate: The growth rate is 3.00%,

Dongyao Group's profit is 0.00%; profit is 0.00%, profit is 3.00%; forecast period

Ludao Pharmaceutical has 42,567,810.79 45,304,100.00 5 Profit rate: The profit rate and discounted profit rate are respectively

Co., Ltd. 2.16%; discount rate and forecast period 1.95%,

Current rate: The calculation method guarantees 2.12%,

7.22% agreed. 2.13%,

2.17%,

2.18%; discount rate

is 7.22%

Operating income during the forecast period

Input growth rate respectively

is 13.57%, revenue growth is 0.38% in the stable period, profit rate: growth rate is Northeast Pharmaceutical Jin 0.40%, 0.00%; profit 0.00%, Lizhou Pharmaceutical Co., Ltd. 6,507,392.55 12,601,200.00 5 0.42%, profit rate: profit rate, discount company 0.44%; forecast period 1.20%; the discount rate and profit rate during the forecast period are respectively Current rate: 1.28% and 7.22%. The calculation method remains consistent. 1.25%,

1.23%,

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

1.21%,

1.20%; discount rate

is 7.22%

Operating income during the forecast period

Input growth rate respectively

is 24.91%,

3.00%,

Income growth: stable period income 3.00%,

Rate: The growth rate is

3.00%,

Northeast Pharmaceutical Liaoning 0.00%; profit 0.00%, profit

3.00%; forecast period

Yang Pharmaceutical Co., Ltd. 1,778,608.05 5,109,700.00 5 Profit rate: Profit rate, discount

The profit margins are

The company is 1.42%; the discount rate and forecast period are 1.46%,

Current rate: The calculation method guarantees 1.46%,

7.22% agreed. 1.41%,

1.42%,

1.42%; discount rate

is 7.22%

Total 50,853,811.39 63,015,000.00

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

(5) Completion of performance commitments and corresponding impairment of goodwill

There is a performance commitment when goodwill is formed and the reporting period or the previous period of the reporting period is within the performance commitment period

□Applicable Not applicable

Other notes:

Long-term deferred expenses

Unit: Yuan

Item Beginning balance Increase in the current period Amortization in the current period Other decreases Closing balance Decoration 24,127,984.26 108,990.81 7,695,638.19 16,541,336.88 Glodon encryption lock renewal fee 184,001.60 71,226.36 112,775.24

Total 24,311,985.86 108,990.81 7,766,864.55 16,654,112.12Other instructions:

Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets without offset

Unit: Yuan Ending balance Beginning balance

Project

Deductible temporary differences Deferred income tax assets Deductible temporary differences Deferred income tax assets Asset impairment provision 212,066,077.30 34,562,831.79 177,310,445.84 28,942,697.58 Unrealized profits from internal transactions 461,052,425.71 71,425,940.13 567,292,600.89 87,611,282.09 Other payables 206,998,521.31 31,049,778.20 96,707,436.20 14,506,115.43 Lease liabilities 41,600,391.40 8,949,406.12 50,366,753.15 7,718,395.36 Others 1,850,622.31 277,593.35 1,500,000.00 225,000.00

Total 923,568,038.03 146,265,549.59 893,177,236.08 139,003,490.46

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(2) Deferred income tax liabilities without offset

Unit: Yuan Ending balance Beginning balance

Project

Taxable temporary differences, deferred income tax liabilities, taxable temporary differences, deferred income tax liabilities due to business combinations involving enterprises not under common control

601,764,753.47 90,264,713.02 608,719,669.60 91,307,950.44 Asset appraisal value added

Relocation that has not yet been settled and settled

19,510,827.07 2,926,624.06 20,057,859.52 3,008,678.93Income

Right-of-use assets 42,667,221.78 9,164,527.34 54,642,267.12 9,050,545.90

Total 663,942,802.32 102,355,864.42 683,419,796.24 103,367,175.27

(3) Deferred income tax assets or liabilities presented on a net basis after offsetting

Unit: Yuan Deferred income tax assets and liabilities Deferred income tax assets after offset Deferred income tax assets and liabilities Deferred income tax items after offset

Offset amount at the end of the debt period Ending balance of assets or liabilities Offset amount at the beginning of the debt period Deferred income tax assets 8,622,587.42 137,642,962.17 7,624,981.77 131,378,508.69 Deferred income tax liabilities 8,622,587.42 93,733,277.00 7,624,981.77 95,742,193.50

(4) Details of deferred income tax assets not recognized

Unit: Yuan

Item Ending balance Beginning balance

Deductible temporary differences 696,938,695.60 758,078,546.73 Deductible losses 1,251,826,447.78 1,043,097,730.32

Total 1,948,765,143.38 1,801,176,277.05

(5) Deductible losses that have not been recognized as deferred income tax assets will expire in the following years

Unit: Yuan

Year Ending amount Beginning amount Remarks

2025 33,037,198.48

2026 25,240,746.98 29,251,997.97

2027 20,063,800.74 20,064,461.30

2028 51,761,194.48 51,995,851.42

2029 127,472,171.50 127,728,007.62

2030 212,112,863.19 136,591,177.27

2031 164,414,390.24 164,414,390.24

2032 165,696,016.88 165,696,016.88

2033 182,989,294.87 182,989,294.87

2034 131,329,334.27 131,329,334.27

2035 170,746,634.63

Total 1,251,826,447.78 1,043,097,730.32

Other notes:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other non-current assets

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value 13,966,330.6 13,966,330.6 Engineering equipment 6,645,538.33 6,645,538.33

7 7 13,966,330.6 13,966,330.6Total 6,645,538.33 6,645,538.33

7 7Other instructions:

Assets whose ownership or use rights are restricted

Unit: End of the period Beginning of the period

Project

Book balance Book value Restriction type Restriction situation Book balance Book value Restriction type Restriction situation 749,507,6 749,507,6 Guarantee, pledge deposit, 2,370,340 2,370,340 Guarantee, pledge deposit, monetary funds

65.83 65.83 Deposit, freeze, legal proceedings, 812.87, 812.87 Deposit, freeze, legal proceedings 195,023,5 195,023,5 Business not yet available 167,509,2 167,509,2 Business not yet available Notes receivable Pledge Pledge

53.29 53.29 Expiration 45.71 45.71 Expiration

199,539,7 197,828,7 Business accounts receivable not yet pledged

51.92 31.20 Expiration

944,531,2 944,531,2 2,737,389 2,735,678

total

19.12 19.12 ,810.50 ,789.78

Other notes:

Short-term borrowing

(1) Classification of short-term loans

Unit: Yuan Item Ending balance Beginning balance

Pledged loans 97,000,000.00 Guaranteed loans 1,420,000,000.00 1,090,200,000.00 Credit loans 457,800,000.00 355,000,000.00 Discounted undue notes receivable 13,980,154.51

Total 1,891,780,154.51 1,542,200,000.00 Description of short-term loan classification:

(2) Overdue short-term borrowings that have not been repaid

The total amount of overdue and unpaid short-term borrowings at the end of this period was RMB 0.00, among which the important overdue and unpaid short-term borrowings are as follows:

Unit: yuan borrowing unit Ending balance Borrowing interest rate Overdue time Overdue interest rate

Other notes:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Trading financial liabilities

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Derivative financial liabilities

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Notes payable

Unit: Yuan

Category Ending balance Beginning balance

Commercial acceptance bill 200,000,000.00 Bank acceptance bill 1,623,928,687.66 3,336,592,539.37

Total 1,623,928,687.66 3,536,592,539.37 The total amount of notes payable that has expired but not been paid at the end of this period is RMB 0.00, and the reason for not paying when due is.

Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

Item Ending balance Beginning balance

Accounts payable 909,929,125.09 781,883,735.22 Accounts payable for projects and equipment 326,487,283.82 395,733,467.16 Notes receivable that have not been terminated 122,100,820.03 Others 2,075,520.07 4,207,481.51

Total 1,238,491,928.98 1,303,925,503.92

(2) Important accounts payable that are aged more than 1 year or are overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Beijing Red Sun Pharmaceutical Co., Ltd. 72,482,318.69 Failure to meet settlement conditions

Jiangxi Runhong Health Industry Co., Ltd. 24,567,876.60 Failure to meet settlement conditions

Hebei Construction Group Co., Ltd. 15,161,900.27 There are pending lawsuits

Shenyang Northern Construction Co., Ltd. 14,368,118.06 Failure to meet settlement conditions

Total 126,580,213.62

Other notes:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(3) Is there any overdue payment to small and medium-sized enterprises?

Is it a large enterprise?

Yes □No

Are there any overdue payments to small and medium-sized enterprises?

□Yes No

Other payables

Unit: Yuan

Item Ending balance Beginning balance

Dividends payable 1,597,979.18 1,597,979.18 Other payables 1,437,428,554.81 1,575,667,070.24

Total 1,439,026,533.99 1,577,265,049.42

(1) Interest payable

Unit: Yuan

Item Ending balance Beginning balance

Important overdue and unpaid interest information:

Unit: Yuan

Borrowing unit Overdue amount Reasons for overdue

Other notes:

(2) Dividends payable

Unit: Yuan

Item Ending balance Beginning balance

Dividends on common shares 817,164.32 817,164.32 Shanghai Hanfei Biochemical Technology Co., Ltd. 499,726.87 499,726.87 Su Jianyong 281,087.99 281,087.99

Total 1,597,979.18 1,597,979.18 Other instructions, including important dividends payable that have not been paid for more than 1 year, the reasons for non-payment should be disclosed:

(3) Other payables

List other payables according to the nature of the payment

Unit: Yuan

Item Ending balance Beginning balance

Sales and service fees 801,540,188.42 774,350,637.19 Deposits and margins 307,861,511.56 325,999,278.44 Current accounts 264,918,283.37 261,508,122.83 Restricted stock repurchase obligations 2,471,560.00 20,329,260.00 Non-operating expenses payable 85,365,072.99 Others 60,637,011.46 108,114,698.79 Full text of the 2025 Annual Report of Northeast Pharmaceutical Group Co., Ltd.

Total 1,437,428,554.81 1,575,667,070.24

Important other payables aged more than 1 year or overdue

Unit: Yuan Item Closing balance Reason for outstanding or carry-forward

Shenyang Tiexi District Urban Renewal Bureau 22,526,012.50 Did not meet the settlement conditions

Total 22,526,012.50

Other notes:

Contract liabilities

Unit: Yuan Item Ending balance Beginning balance

Contract liabilities related to sales of goods 87,902,786.02 104,806,624.47 Total 87,902,786.02 104,806,624.47 Important contract liabilities aged more than 1 year

Unit: Yuan Item Closing balance Reason for outstanding or carry-forward

Amount and reasons for significant changes in book value during the reporting period

Unit: Yuan Item Amount of change Reason for change

Employee compensation payable

(1) Presentation of employee benefits payable

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance

Short-term salary 45,474,742.68 877,481,557.87 887,128,170.08 35,828,130.47
Post-employment benefits - defined contribution plan 777,922.66 104,487,047.48 104,909,904.10 355,066.04

3. Dismissal benefits 1,944,602.31 1,944,602.31

Total 46,252,665.34 983,913,207.66 993,982,676.49 36,183,196.51

(2) Presentation of short-term remuneration

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance

Salaries, bonuses, allowances and

42,303,341.24 659,196,965.60 667,632,554.56 33,867,752.28 Subsidy

Employee welfare fees 69,524,472.15 69,524,472.15
Social insurance premiums 256,276.50 63,325,768.19 63,582,044.69

Including: medical insurance premium 251,150.98 55,036,541.10 55,287,692.08

Work injury insurance premium 5,125.52 8,226,759.38 8,231,884.90

Maternity insurance premium 62,467.71 62,467.71

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Housing provident fund 352,402.01 72,913,556.10 72,913,556.10 352,402.01
Union funds and employee education

2,562,722.93 12,520,795.83 13,475,542.58 1,607,976.18 Funding

Total 45,474,742.68 877,481,557.87 887,128,170.08 35,828,130.47

(3) Display of defined contribution plan

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Basic pension insurance 765,108.44 101,316,178.29 101,726,220.69 355,066.04
Unemployment insurance premium 12,814.22 3,170,869.19 3,183,683.41

Total 777,922.66 104,487,047.48 104,909,904.10 355,066.04Other instructions:

Taxes payable

Unit: Yuan

Item Ending balance Beginning balance

Value-added tax 28,538,679.96 27,275,640.60 Corporate income tax 22,687,946.96 46,216,472.95 Personal income tax 532,158.84 564,219.26 Urban maintenance and construction tax 2,208,795.57 3,186,776.41 Real estate tax 2,049,430.57 277,785.45 Education fee surcharge 947,010.04 1,401,464.04 Local education fee surcharge 631,340.04 902,684.96 Land use tax 108,933.95 108,896.45 Others 7,223.25 18,987.95

Total 57,711,519.18 79,952,928.07Other instructions:

Liabilities held for sale

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Non-current liabilities due within one year

Unit: Yuan

Item Ending balance Beginning balance

Long-term borrowings due within one year 23,600,000.00

Lease liabilities due within one year 21,785,388.81 20,228,853.85 Other non-current liabilities due within one year 35,200,000.00 35,200,000.00

Total 80,585,388.81 55,428,853.85Other instructions:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other current liabilities

Unit: Yuan Item Ending balance Beginning balance

Output tax to be reversed 7,257,308.28 10,499,746.51 Notes receivable that have not been terminated 100,913,414.90

Total 108,170,723.18 10,499,746.51 Increase or decrease in short-term bonds payable:

Unit: yuan per face

Overflow discount

Bond par value issuance Bond issuance Beginning of period Current period Value calculation Current period End of period Whether par value Price amortization

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Cancellation

information

total

Other notes:

Long-term borrowing

(1) Classification of long-term loans

Unit: Yuan Item Ending balance Beginning balance

Guaranteed loan 77,600,000.00

Credit loan 77,000,000.00

Total 154,600,000.00

Description of long-term loan classification:

Other instructions, including interest rate ranges:

Bonds payable

(1) Bonds payable

Unit: Yuan Item Ending balance Beginning balance

(2) Increases and decreases in bonds payable (excluding preference shares, perpetual bonds and other financial instruments classified as financial liabilities)

Unit: yuan per face

Overflow discount

Bond par value issuance Bond issuance Beginning of period Current period Value calculation Current period End of period Whether par value Price amortization

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Cancellation

information

Total ——Full text of the 2025 annual report of Northeast Pharmaceutical Group Co., Ltd.

(3) Description of convertible corporate bonds

(4) Description of other financial instruments classified as financial liabilities

Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

Unit: yuan outstanding. Beginning of the period. Increase in the current period. Decrease in the current period. End of the period.

financial engineering

Quantity Book value Quantity Book value Quantity Book value Quantity Book value instrument

Explanation of the basis for classifying other financial instruments as financial liabilities

Other notes:

Lease liabilities

Unit: Yuan Item Ending balance Beginning balance

Lease payments 43,475,274.75 58,056,745.09 Unrecognized financing costs -1,874,883.35 -7,689,991.94 Reclassified to non-current liabilities due within one year -21,785,388.81 -20,228,853.85 Total 19,815,002.59 30,137,899.30Other instructions:

Long-term accounts payable

Unit: Yuan Item Ending balance Beginning balance

(1) List long-term payables according to the nature of the payment

Unit: Yuan Item Ending balance Beginning balance

Other notes:

(2) Special accounts payable

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance Reasons for formation

Other notes:

Long-term employee compensation payable

(1) Long-term employee salary payable table

Unit: Yuan Item Ending balance Beginning balance

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(2) Changes in defined benefit plans

Present value of defined benefit plan obligations:

Unit: Yuan Item Amount of the current period Amount of the previous period

Plan assets:

Unit: Yuan Item Amount of the current period Amount of the previous period

Net liabilities (net assets) of defined benefit plans

Unit: Yuan Item Amount of the current period Amount of the previous period

Description of the content of the defined benefit plan and the risks associated with it, as well as the impact on the company's future cash flows, timing and uncertainty:

Explanation of significant actuarial assumptions and sensitivity analysis results of defined benefit plans:

Other notes:

Estimated liabilities

Unit: Yuan Item Ending balance Beginning balance Reason for formation

Pending litigation 16,350,000.00 Possible liability for compensation

Total 16,350,000.00

Other explanations, including important assumptions and estimation instructions related to important estimated liabilities:

Deferred income

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance Reasons for formation

Total government subsidies received from off-site reconstruction and construction projects, industrial transfer projects 140,905,277.36 14,702,473.32 126,202,804.04 type upgrade projects, manufacturing intelligent upgrade projects, etc. 140,905,277.36 14,702,473.32 126,202,804.04 --

Other notes:

Other non-current liabilities

Unit: Yuan Item Ending balance Beginning balance

Northeast Pharmaceutical Group Co., Ltd. 167,600,000.00 202,800,000.00 Beijing Jundao Technology Development Co., Ltd. 112,807,406.83 185,229,670.57 Less: other non-current liabilities due within one year -35,200,000.00 -35,200,000.00 Total 245,207,406.83 352,829,670.57Other instructions:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Share capital

Unit: Yuan Increase or decrease in this change (+, -)

Balance at the beginning of the period New issuance bonus Provident fund Balance at the end of the period Other subtotal

Share Share Conversion

Total number of shares 1,429,103,265.00 -2,015,000.00 -2,015,000.00 1,427,088,265.00Other instructions:

Other equity instruments

(1) Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

(2) Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

Unit: yuan outstanding. Beginning of the period. Increase in the current period. Decrease in the current period. End of the period.

financial engineering

Quantity Book value Quantity Book value Quantity Book value Quantity Book value

tools

Changes in other equity instruments during the current period, explanations of the reasons for the changes, and the basis for relevant accounting treatments:

Other notes:

Capital reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Capital premium (equity premium) 2,206,392,059.86 9,594,240.00 3,457,740.00 2,212,528,559.86 Other capital reserves 283,655,987.51 34,658,246.49 11,825,240.00 306,488,994.00

Total 2,490,048,047.37 44,252,486.49 15,282,980.00 2,519,017,553.86 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

Note 1: In this period, 4,560,000.00 shares of the reserved grant portion of the company's 2022 restricted stock incentive plan were unlocked for the second time, resulting in an increase in equity premium of 9,594,240.00 yuan, a decrease in other capital reserves of 9,594,240.00 yuan, and a total reduction in restricted stock repurchase obligations of 12,384,960.00 yuan; in this period, repurchase and cancellation 2022 In the annual restricted stock incentive plan, 2,015,000 restricted shares have been granted but have not yet been released from sale restrictions, resulting in a decrease in equity premium of RMB 3,457,740.00 and a decrease in restricted stock repurchase obligations by RMB 5,472,74 0.00 yuan; the grant and repurchase of the stock incentive plan resulted in a total increase in equity premium of RMB 9,594,240.00 and a decrease of RMB 3,457,740.00. Other capital reserves decreased by RMB 9,594,240.00.

Note 2: In this period, the subsidiary Shenyang Dongrui Fine Chemical Co., Ltd. has fulfilled its obligation to repurchase some minority shareholders' equity, resulting in an increase in the company's shareholding ratio and an increase in other capital reserves of RMB 34,640,940.83; the subsidiary Northeast Pharmacy accepted investors' shares, resulting in a passive dilution of the company's equity holdings and an increase in other capital reserves of RMB 17,305.66; the total adjustment of the subsidiary's minority interests resulted in an increase in other capital reserves of RMB 34,658,246.49.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Note 3: In this period, the amortization of expenses related to equity-settled share-based payment decreased, resulting in a decrease in other capital reserves of 2,231,000.00

Yuan.

Treasury stocks

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Ending balance Restricted stock repurchase obligation 20,329,260.00 17,857,700.00 2,471,560.00 Equity repurchase obligation 46,800,000.00 46,800,000.00

Total 67,129,260.00 64,657,700.00 2,471,560.00 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

Note 1: In this period, restricted stocks that did not meet the unlocking conditions were repurchased and canceled, reducing the restricted stock repurchase obligation by RMB 17,857,700.00;

Note 2: In this period, the subsidiary Shenyang Dongrui Fine Chemical Co., Ltd. has fulfilled its obligation to repurchase the equity held by minority shareholders, which decreased.

The equity repurchase obligation is RMB 46,800,000.00.

Other comprehensive income

Unit: Yuan Amount incurred in the current period

Less: previous period Less: previous period

Income for the current period is included in other items and is included in other items. Attribution after tax

Item Opening balance Less: Income Attribution after tax Ending balance before tax Comprehensive income Comprehensive income Attributable to minority shares

Tax expenses at the parent company

Amount transferred in the current period Transferred in in the current period

Profit and loss Retained earnings

1. Can’t

Reclassified into - - Profit and loss 1,275,000 1,275,000 Other comprehensive income .00 .00

Others

-Equity Instruments

1,275,000 1,275,000 Fair investment

.00 .00Value change

2. Will be heavy

Classification entry loss 3,857,921 2,845,151

1,008,512 1,012,770 4,257.25

Other benefits .95 .87

.83 .08

Comprehensive income

Foreign Currency - -

3,857,921 2,845,151Financial statements 1,008,512 1,012,770 4,257.25

.95 .87 Conversion difference .83 .08

Other comprehensive 2,582,921 1,570,151

1,008,512 1,012,770 4,257.25

Total income .95 .87

.83 .08

Other explanations include adjustments to the initial recognition amount of the effective portion of cash flow hedging gains and losses converted into hedged items:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Special reserves

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Closing balance Safety production expenses 6,387,512.20 13,325,537.70 13,440,894.08 6,272,155.82

Total 6,387,512.20 13,325,537.70 13,440,894.08 6,272,155.82 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

Surplus reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 192,491,191.47 12,494,882.29 204,986,073.76 Discretionary surplus reserve 133,366.19 133,366.19

Total 192,624,557.66 12,494,882.29 205,119,439.95 Description of surplus reserves, including changes in increases and decreases in the current period and explanation of reasons for changes:

Undistributed profits

Unit: Yuan

Projects in this issue Previous issue

Undistributed profit at the end of the previous period before adjustment 1,267,995,910.44 1,013,360,613.77 Undistributed profit at the beginning after adjustment 1,267,995,910.44 1,013,360,613.77 Add: Net profit attributable to owners of the parent company for the current period 260,070,456.65 409,848,498.88 Less: Withdrawal of statutory surplus reserve 12,494,882.29 12,302,875.71

Dividends payable on ordinary shares 142,305,826.50 142,910,326.50 Undistributed profits at the end of the period 1,373,265,658.30 1,267,995,910.44 Details of adjustments to undistributed profits at the beginning of the period:

Due to the retrospective adjustment of the "Accounting Standards for Business Enterprises" and its related new regulations, the undistributed profit at the beginning of the period was affected by RMB 0.00.
Due to changes in accounting policies, the undistributed profit at the beginning of the period was affected by RMB 0.00.
Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by RMB 0.00.

4). Changes in the scope of consolidation due to the same control affect the undistributed profit at the beginning of the period by RMB 0.00.

The total impact of other adjustments on the undistributed profit at the beginning of the period is 0.00 yuan.

Detailed explanation of the use of capital reserves to cover losses:

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

revenue cost revenue cost

Main business 7,024,008,024.90 4,414,526,580.15 7,448,464,053.67 4,561,095,152.97 Other businesses 50,845,239.02 23,184,584.76 54,090,855.56 35,371,126.55

Total 7,074,853,263.92 4,437,711,164.91 7,502,554,909.23 4,596,466,279.52 The lower of the company’s total audited profit, net profit, and net profit after deducting non-recurring gains and losses during the reporting period is negative.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

□Yes No

Breakdown information of operating income and operating costs:

Unit: Yuan Division 1 Division 2 Total Contract Classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

Classified by business area

Among them:

Market or customer type

Among them:

Contract type

Among them:

Classification by time of transfer of goods

Among them:

Classification by contract period

Among them:

Classified by sales channel

Among them:

total

Information related to performance obligations:

The company's pre-payments, the company's performance obligations, and the important payment terms. The company's commitment to transfer is the main responsibility.

The item will be refunded to the customer during the period. The type and time of the quantity guarantee. The nature of the goods. Anyone.

Account’s money and other explanations of related obligations

Information related to the transaction price allocated to the remaining performance obligations:

At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but have not been performed or have not been completed is RMB 0.00, of which RMB 0.00 is expected to be recognized in the year, RMB 0.00 is expected to be recognized in the year, and RMB 0.00 is expected to be recognized in the year.

Information related to variable consideration in the contract:

Major contract changes or major transaction price adjustments

Unit: Yuan Item Accounting treatment method Amount of impact on income Other explanations:

Taxes and surcharges

Unit: Yuan Item Amount of the current period Amount of the previous period

Urban maintenance and construction tax 19,673,044.85 21,300,082.88

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Education surcharge 8,453,607.68 9,173,128.06 Property tax 26,967,106.06 25,202,434.70 Land use tax 10,026,688.20 10,030,629.06 Local education surcharge 5,622,580.81 6,115,383.85 Stamp duty, etc. 6,350,636.17 5,519,895.69

Total 77,093,663.77 77,341,554.24

Other notes:

Management expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 257,949,364.64 284,287,764.72 Loss of work stoppage 272,683,196.94 266,251,718.55 Depreciation and amortization 83,059,654.81 102,188,602.79 Repair expenses 37,012,635.24 27,511,286.39 Equity incentive amortization -2,231,000.00 22,251,815.01 Others 53,854,834.44 38,961,312.44

Total 702,328,686.07 741,452,499.90

Other notes:

Sales expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Sales and service fees 1,035,801,176.57 1,131,131,389.01 Employee compensation 170,667,294.44 191,548,161.96 Travel expenses 17,547,577.18 19,085,731.92 Depreciation of right-of-use assets 10,944,282.63 15,310,153.49 Others 29,563,530.86 24,816,944.23

Total 1,264,523,861.68 1,381,892,380.61

Other notes:

Research and development expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Material consumption 47,353,360.51 56,351,093.65 Employee compensation 67,330,618.13 41,857,203.55 Depreciation and amortization 30,030,988.27 11,691,078.93 Technical service fee 21,778,288.59 5,240,450.19 Testing and inspection fees, etc. 5,773,171.98 2,624,156.19

Total 172,266,427.48 117,763,982.51

Other notes:

Financial expenses

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Item Amount for the current period Amount for the previous period

Interest expense 49,163,074.74 64,533,460.27 Less: Interest income -90,670,813.43 -128,628,643.84 Exchange gains and losses 25,846,305.78 -10,055,772.47 Handling fees and others 33,377,451.19 47,931,871.92

Total 17,716,018.28 -26,219,084.12Other instructions:

Other income

Unit: Yuan

Sources of other income Amount incurred in the current period Amount incurred in the previous period

Government subsidies 70,848,186.39 62,931,248.32Additional value-added tax deduction 6,301,738.41 12,175,348.93 Refund of withholding and payment fees 647,453.46 396,894.58 Value-added tax reduction 81,884.04 70,028.87

Total 77,879,262.30 75,573,520.70

Net exposure hedging income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Other notes:

Income from changes in fair value

Unit: Yuan

Sources of income from changes in fair value Amount incurred in the current period Amount incurred in the previous period

Trading financial assets 350,622.31

Among them: fair value generated by derivative financial instruments

350,622.31

Gains from changes in value

Total 350,622.31

Other notes:

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Long-term equity investment income calculated using the equity method -1,396,687.27

Investment income from trading financial assets during the holding period

2,678,471.91

benefit

Income from debt restructuring 6,606,190.88 5,160,420.26 Others -78,000.54

Total 7,809,974.98 5,160,420.26Other instructions:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Credit impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bad debt losses on accounts receivable 122,710.62 3,760,058.08 Bad debt losses on other receivables -4,615,119.37 -1,216,006.89

Total -4,492,408.75 2,544,051.19Other instructions:

Asset impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

1. Inventory depreciation losses and contract performance cost deductions

-170,230,579.39 -109,428,166.13 value loss

Impairment losses on fixed assets -29,064.41
Impairment losses on projects under construction -10,093,863.94

10. Impairment loss of goodwill -1,043,237.42

Impairment losses on contract assets 368,945.49 1,689,072.02
Others -7,704,306.41

Total -170,904,871.32 -125,566,328.87Other instructions:

Income from asset disposal

Unit: Yuan

Source of asset disposal income Amount incurred in the current period Amount incurred in the previous period

Gains from disposal of fixed assets 100,125.01 1,706,833.77 Gains from disposal of right-of-use assets 155,736.14 4,485,602.84

Total 255,861.15 6,192,436.61

Non-operating income

Unit: Yuan Financial items included in non-recurring gains and losses for the current period Amount incurred in the current period Amount incurred in the previous period

Total gains from disposal of non-current assets 832,200.00 832,200.00 Penalty income 11,595,483.07 35,661,313.53 11,595,483.07 Compensation or compensation 40,000,000.00 12,158,328.74 40,000,000.00 Amounts not required to be paid 45,956.04 619,022.13 45,956.04 Others 507,599.45 80,363.80 507,599.45

Total 52,981,238.56 48,519,028.20 52,981,238.56Other instructions:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Non-operating expenses

Unit: Yuan Financial items included in non-recurring gains and losses for the current period Amount incurred in the current period Amount incurred in the previous period

External donations 14,210,141.40 14,210,141.40 Total losses on disposal of non-current assets 34,312.52 34,312.52 Breach of contract and compensation 43,349,657.38 32,222,378.81 43,349,657.38 Others 4,235,966.16 147,658.29 4,235,966.16

Total 61,830,077.46 32,370,037.10 61,830,077.46Other instructions:

Income tax expenses

(1) Income tax expense schedule

Unit: Yuan

Item Amount for the current period Amount for the previous period

Current income tax expense 95,708,262.47 174,721,378.52 Deferred income tax expense -8,273,369.98 -4,093,312.85Total 87,434,892.49 170,628,065.67

(2) Adjustment process of accounting profits and income tax expenses

Unit: Yuan

Item Amount incurred in this period

Total profit 305,263,043.50 Income tax expenses calculated according to statutory/applicable tax rates 45,789,456.53 The impact of different tax rates applicable to subsidiaries 9,425,320.46 The impact of adjusting income taxes in previous periods 15,308,080.59 The impact of non-taxable income -2,073,837.13 The impact of non-deductible costs, expenses and losses 10,030,786.81 Effect of using deductible losses of deferred income tax assets not recognized in the previous period -16,749,240.72 Deductible temporary differences or deductible losses of deferred income tax assets not recognized in the current period

51,934,600.76 Impact of loss

The tax impact of the super deduction of research and development expenses (filled in with "-") -25,837,471.09 Others -392,803.72 Income tax expenses 87,434,892.49 Other notes:

Other comprehensive income

For details, please see Note 7.56 Other Comprehensive Income.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Cash flow statement items

(1) Cash related to operating activities

Other cash received related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Changes in restricted monetary funds 198,639,414.27 33,434,141.93 Interest income 90,670,813.43 128,628,643.84 Current funds such as security deposits 75,348,635.34 95,420,280.28 Government subsidies 56,126,630.71 47,106,660.23 Others 4,629,410.04 7,880,671.37

Total 425,414,903.79 312,470,397.65 Description of other cash received related to operating activities:

Other cash paid related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Cash paid for sales expenses 1,065,966,229.08 1,076,942,151.28 Cash paid for administrative expenses 77,497,303.57 123,987,911.79 Changes in restricted monetary funds 15,135,470.79 1,164,980.45 Financial expenses - bank fees 5,890,228.37 3,819,542.87 Others 120,356,793.33 234,794,577.49

Total 1,284,846,025.14 1,440,709,163.88 Description of other cash paid related to operating activities:

(2) Cash related to investing activities

Other cash received related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Significant cash received related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Description of other cash received related to investing activities:

Other cash paid related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Significant cash payments related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Description of other cash paid related to investment activities:

(3) Cash related to financing activities

Other cash received related to financing activities

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bill financing 3,665,920,000.00 6,112,000,000.00 Fund raising deposit recovery 7,134,058,631.88

Total 3,665,920,000.00 13,246,058,631.88

Description of other cash received related to financing activities:

Other cash payments related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bill financing 2,045,279,220.69 6,842,715,516.92 Financing deposit payment 1,985,526,000.00 6,652,441,506.39 Repayment of related party loans 112,512,293.20

Payment for equity repurchase of minority shareholders 46,800,000.00

Cash paid to repay lease liabilities 26,183,783.48 22,771,452.39 Payment for equity incentive repurchase 5,472,740.00

Total 4,221,774,037.37 13,517,928,475.70

Description of other cash payments related to financing activities:

Changes in various liabilities arising from financing activities

Applicable □Not applicable

Unit: Yuan

Increase in this period Decrease in this period

Item Opening balance Closing balance Cash change Non-cash change Cash change Non-cash change

1,542,200,00 2,657,800,00 13,980,154.5 2,322,200,00 1,891,780,15 Short-term borrowings

0.00 0.00 1 0.00 4.51 Long-term borrowings (including

190,000,000. 11,800,000.0 178,200,000. Due within one year

00 0 00 long-term loan)

Lease liabilities (including

50,366,753.1 14,489,465.3 22,447,991.9 41,600,391.4 Due within one year 807,835.13

5 2 4 0 lease liabilities)

Other non-current negative

Debt (including within one year 388,029,670. 112,512,293. 280,407,406.

4,890,029.46

Other non-current liabilities due 57 20 83)

1,980,596,42 2,847,800,00 33,359,649.2 2,468,960,28 2,391,987,95Total 807,835.13

3.72 0.00 9 5.14 2.74

(4) Explanation on presenting cash flow in net amount

Item Relevant facts and circumstances Basis for net presentation Financial impact

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(5) Major activities and financial impacts that do not involve current cash receipts and payments but affect the company's financial status or may affect the company's cash flow in the future

Supplementary information for cash flow statement

(1) Supplementary information for cash flow statement

Unit: Yuan

Supplementary information Amount for the current period Amount for the previous period

1． Adjust net profit to cash flow from operating activities

Net profit 217,828,151.01 423,282,321.89 plus: asset impairment provision 175,397,280.07 123,022,277.68 Depreciation of fixed assets, depreciation of oil and gas assets

467,425,909.79 502,912,009.99 Depreciation of consumption and productive biological assets

Depreciation of right-of-use assets 24,994,524.44 22,469,319.00 Amortization of intangible assets 49,657,027.75 46,589,093.30 Amortization of long-term prepaid expenses 7,766,864.55 952,215.03 Disposal of fixed assets, intangible assets and other

Loss of other long-term assets (income is listed with "-" sign -255,861.15 -6,192,436.61)

Loss on scrapping of fixed assets (income based on

-797,887.48

Fill in the column with "-" sign)

Loss from change in fair value (gain based on

-350,622.31

Fill in the column with "-" sign)

Financial expenses (revenues are filled in with "-"

92,435,882.47 95,570,177.45 columns)

Investment losses (income is filled in with "-"

-7,809,974.98 -5,160,420.26 columns)

Deferred tax assets decreased (increased by

-6,264,453.48 -3,310,209.65 (Fill in “-”)

Deferred tax liabilities increased (decreased by

-2,008,916.50 90,524,847.24 Fill in the “-” number)

Decrease in inventory (increase marked with "-"

99,692,436.47 57,138,619.93 fill in the column)

Decrease in operating receivables (increase in

101,579,510.12 -82,526,143.81 (please fill in with "-")

Increase (decrease) in operating payables

-112,792,033.12 -528,694,554.68 (please fill in the list with "-")

Others -115,356.38 22,184,004.71 Net cash flow from operating activities 1,106,382,481.27 758,761,121.21 2. Major investments and financing that do not involve cash receipts or payments

Activities

debt to capital

Convertible corporate bonds due within one year

Financing leased fixed assets

3． Net changes in cash and cash equivalents:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Closing balance of cash 2,852,247,107.94 2,097,991,603.94 Less: Opening balance of cash 2,097,991,603.94 2,766,956,082.21 Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents 754,255,504.00 -668,964,478.27

(2) Net cash paid in the current period to acquire subsidiaries

Unit: yuan amount

Among them:

Other notes:

(3) Net cash received from disposal of subsidiaries in the current period

Unit: yuan amount

Among them:

Other notes:

(4) Composition of cash and cash equivalents

Unit: Yuan Item Ending balance Beginning balance

Cash 2,852,247,107.94 2,097,991,603.94 Including: Cash on hand 1,353.14 780.57 Bank deposits that can be used for payment at any time 2,852,245,754.80 2,097,990,823.37
Balance of cash and cash equivalents at the end of the period 2,852,247,107.94 2,097,991,603.94

(5) Situations where the scope of use is limited but still represents cash and cash equivalents

Unit: Yuan Item Amount for the current period Amount for the previous period Reasons why it is still cash and cash equivalents

(6) Monetary funds that are not cash and cash equivalents

Unit: Yuan Items that are not cash and cash equivalents Amount for the current period Amount for the previous period

Reason

Bank acceptance bill deposit 711,658,627.89 2,342,235,612.79

Frozen bank deposits 36,100,577.94 26,757,200.08

Other funds with restricted use 1,748,460.00

Performance guarantee letter of credit deposit 1,348,000.00

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Total 749,507,665.83 2,370,340,812.87

Other notes:

(7) Description of other major activities

Notes on items in the statement of changes in owners’ equity

Explain the names of "other" items and the amount of adjustments that were made to the closing balance of the previous year:

Foreign currency monetary items

(1) Foreign currency monetary items

Unit: Yuan

Item Foreign currency balance at the end of the period Conversion exchange rate Monetary funds converted into RMB at the end of the period 1,171,758,903.87 Including: US dollars 161,661,344.17 7.0288 1,136,282,024.07 Euros 6,852.14 8.2355 56,430.80 Hong Kong dollars

Korean won 103,721,347.00 0.0049 503,254.00

Swiss francs 3,945,000.00 8.8510 34,917,195.00 Accounts receivable 48,263,498.04 Including: US dollars 6,610,555.72 7.0288 46,463,557.45 Euros 218,558.75 8.2355 1,799,940.59

Hong Kong dollar

long term borrowing

Of which: US dollars

Euro

Hong Kong dollar

Accounts payable 30,891,269.56 Including: USD 3,330,065.35 7.0288 23,406,363.32

Euro 908,858.75 8.2355 7,484,906.24 Other payables 6,042,489.77 Of which: USD 637,173.96 7.0288 4,478,568.32

Euro 189,900.00 8.2355 1,563,921.45Other instructions:

(2) Description of overseas operating entities, including for important overseas operating entities, their main overseas business location, accounting standard currency and basis for selection should be disclosed. If the accounting standard currency changes, the reasons should also be disclosed.

□Applicable Not applicable

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Leasing

(1) The company serves as the lessee

Applicable □Not applicable

Variable lease payments not included in the measurement of lease liabilities

□Applicable Not applicable

Simplified treatment of short-term leases or lease payments for low-value assets

□Applicable Not applicable

Situations involving sale and leaseback transactions

The total cash outflow related to leasing was RMB 26,183,783.48.

(2) The company as the lessor

Operating lease as lessor

Applicable □Not applicable

Unit: Yuan Including: Variable lease items not included in lease receipts Lease income

Payment related revenue

Operating lease 4,671,235.74

Total 4,671,235.74

Finance lease as lessor

□Applicable Not applicable

Undiscounted lease payments for each of the next five years

□Applicable Not applicable

Reconciliation of undiscounted lease receipts and net lease investment

(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor

□Applicable Not applicable

Data resources
Others

8. R&D expenditures

Unit: Yuan

Item Amount for the current period Amount for the previous period

Material consumption 54,659,974.80 63,222,395.61 Employee compensation 78,955,957.43 46,664,483.49 Depreciation and amortization 34,872,058.12 14,085,962.91 Technical service fee 27,468,714.55 19,993,376.25 Testing and inspection fees 10,261,122.63 4,930,601.95 Outsourced research projects 573,930,000.00 Total 206,217,827.53 722,826,820.21 Full text of the 2025 Annual Report of Northeast Pharmaceutical Group Co., Ltd.

Including: Expenditure R&D expenditure 172,266,427.48 117,763,982.51 Capitalized R&D expenditure 33,951,400.05 605,062,837.70

R&D projects that meet capitalization conditions

Unit: Yuan Increase amount in this period Decrease amount in this period

Item Opening balance It is recognized as intangible assets Ending balance Internal development expenditure is transferred to current profit and loss

He produces

New product research

705,214,991.07 154,565,825.73 5,627,522.77 125,667,259.45 728,486,034.58

Consistency evaluation

45,010,589.63 5,479,852.03 427,018.26 50,063,423.40 price items

Total 750,225,580.70 160,045,677.76 5,627,522.77 126,094,277.71 778,549,457.98 Important capitalized R&D projects

Estimated economic benefits Projects to be capitalized R&D progress Estimated time of completion Time to start capitalization

Production method is based on the chemistry of fosfomycin sodium series for injection December 2026

Research on supplementation for internal use August 1, 2019 Process validation report generic drug consistency evaluation 31

Impairment provision for development expenditures

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance Impairment test New product research and development 24,781,803.59 24,781,803.59

Consistency evaluation project 7,704,306.41 7,704,306.41

Total 32,486,110.00 32,486,110.00

Important outsourced research projects

The criteria for judging capitalization or expense and the specific way in which economic benefits are expected to be generated based on the name of the project.

According to

Other notes:

The company acquired 70% of the equity of Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. in November 2024 and incorporated it into the research project for RMB 573.93 million. The above-mentioned items can be separated or divided from the acquiree, and can be sold, transferred, licensed, leased or exchanged individually or together with related contracts, assets and liabilities, and are likely to bring an inflow of economic benefits to the company in the future, and the company is entitled to receive such benefits. Therefore, the company includes the above-mentioned projects under research into the development expenditure account.

9. Changes in consolidation scope

Business merger not under common control

(1) Business mergers not under common control that occurred during the current period

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Purchase date to Purchase date to Purchase date to the purchased party Equity acquisition Equity acquisition Equity acquisition Equity acquisition Equity acquisition Purchased at the end of the period Acquired at the end of the period Acquired at the end of the period Name of date Time point Cost Proportion Method Determination basis Buyer’s acquisition Buyer’s net Buyer’s cash

Other explanations of income profit and cash flow:

(2) Merger costs and goodwill

Unit: Yuan

Combined cost--cash

--Fair value of non-cash assets

--Fair value of debt issued or assumed

--Fair value of equity securities issued

--Fair value of contingent consideration

--The fair value of the equity held before the purchase date on the purchase date--Others

Total combined costs

Less: Share of fair value of identifiable net assets acquired

The amount of goodwill/merger cost that is less than the fair value share of identifiable net assets acquired is the method for determining the fair value of the merger cost:

Description of contingent consideration and its changes

The main reasons for the formation of large amounts of goodwill:

Other notes:

(3) The identifiable assets and liabilities of the purchased party on the purchase date

Unit: Yuan

Fair value on acquisition date Book value assets on acquisition date:

Monetary funds

Accounts receivable

Inventory

fixed assets

intangible assets

Liabilities:

borrow money

Accounts payable

Deferred income tax liability

net worth

Less: Minority interests

Net assets acquired

Method for determining the fair value of identifiable assets and liabilities:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Contingent liabilities of the purchased party assumed in a business combination:

Other notes:

(4) Gains or losses arising from the remeasurement of equity held before the purchase date at fair value

Is there any transaction that realizes the business combination step by step through multiple transactions and obtains control during the reporting period?

□Yes No

(5) Relevant explanation that the merger consideration or the fair value of the acquiree’s identifiable assets and liabilities cannot be reasonably determined on the acquisition date or at the end of the current period of merger.

(6) Other instructions

Merger of enterprises under common control

(1) Business mergers under the same control that occurred in the current period

Unit: yuan Consolidated current period Consolidated current period

constitute the same

Business combination from the beginning of the period to the merger period from the beginning of the period to the merger period Comparative period Comparative period Enterprises under the control of the merged party On the date of merger

Obtained from Merger date Merger date Merger date Merger name of merged party Determination basis of business merger

Equity ratio, merger’s acquisition, merger’s net income, basis of net profit

Other instructions for profit:

(2) Merger cost

Unit: Yuan

Merger costs

--cash

--Book value of non-cash assets

--The book value of debt issued or assumed

--The face value of the equity securities issued

--Contingent consideration

Description of contingent consideration and its changes:

Other notes:

(3) Book value of the assets and liabilities of the merged party on the merger date

Unit: Yuan

Merger date Closing assets of the previous period:

Monetary funds

Accounts receivable

Inventory

fixed assets

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

intangible assets

Liabilities:

borrow money

Accounts payable

net worth

Less: Minority interests

Net assets acquired

Contingent liabilities of the merged party assumed in a business merger:

Other notes:

Reverse purchase

Basic information of the transaction, the basis for the transaction to constitute a reverse purchase, whether the assets and liabilities retained by the listed company constitute business and the basis for it, the determination of the merger cost, the amount of equity adjustment when dealing with equity transactions and its calculation:

Disposal of subsidiaries

Are there any transactions or events that result in the loss of control of subsidiaries during this period?

□Yes No

Is there any situation where investments in subsidiaries are disposed of step by step through multiple transactions and control is lost in the current period?

□Yes No

Changes in the scope of consolidation due to other reasons

Explain the changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their related circumstances:

Cancel liquidation subsidiary this year

Company name Reduction method Reduction time point Net assets on the date of disposal (yuan) Net profit from the beginning of the period to the date of disposal (yuan) Jilin Haiaosi Industrial Co., Ltd. Cancellation 2025-8-14 0.00 -6,724.87

Others

10. Interests in other entities

Interests in subsidiaries

(1) Composition of enterprise groups

Unit: Yuan Shareholding ratio Subsidiary name Registered capital Main place of business Place of registration Nature of business How to obtain

Direct Indirect Northeast Pharmaceutical Group Shen

Yangyi Pharmaceutical Co., Ltd. 80,000,000.00 Shenyang Shenyang Manufacturing 100.00% Investment to establish the company

Northeast Pharmaceutical Group

(Ningbo) Sales 50,000,000.00 Ningbo Ningbo Commercial 100.00% Investment to establish a limited company

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Dongyao Group Shenyang Shi Under the same control

10,000,000.00 Shenyang Shenyang Manufacturing 100.00%

De Pharmaceutical Co., Ltd. Enterprise merger with Harbin Guanghua Biotech Not under common control

1,000,000.00 Harbin Harbin Commercial 100.00%

Technologies Ltd. under Business Merger with Antigua Daiichi Pharmaceuticals

0.00 Antigua Antigua Manufacturing 75.00% Investment to establish a limited company

Gansu Dongyao Mingzutang

Dongxiang, Linxia Prefecture Dongxiang, Linxia Prefecture

Medical Equipment Co., Ltd. 2,000,000.00 Manufacturing 70.00% Investment and establishment

ethnic autonomous county ethnic autonomous county

Division

Gansu Fangda Fuhuangdong

Dongxiang, Linxia Prefecture Dongxiang, Linxia Prefecture

Xihehe Garment Co., Ltd. 30,000,000.00 Manufacturing 80.00% Investment and establishment

ethnic autonomous county ethnic autonomous county

company

Gansu Fangda nine-room shed

Dongxiang, Linxia Prefecture Dongxiang, Linxia Prefecture

Science and Technology Development Co., Ltd. 100,000,000.00 Manufacturing 36.00% Investment and establishment

ethnic autonomous county ethnic autonomous county

Division

Jilin Province Haiaosi Shi

1,000,000.00 Changchun Changchun Commercial 100.00% Investment to establish an industry limited company

Shenyang Northeast Pharmaceutical Co., Ltd.

Export Trading Co., Ltd. 50,000,000.00 Shenyang Shenyang Commercial 99.99% 0.01% Investment and Establishment Department

Shenyang Northeast Pharmaceutical Co., Ltd.

Export Trade (Hong Kong 14,454,850.00 Hong Kong Hong Kong Commercial 100.00% Investment and Establishment in Hong Kong) Co., Ltd.

NEPG EUROPE

SPÓŁKA Z

OGRANICZONA 81,380.96 Poland Poland Business 100.00% Investment to establish ODPOWIEDZIALNO

SCIA

NEPG US INC 86,541.60 United States United States Business 100.00% Investment to establish NEPG KOREA

553,410.00 South Korea South Korea Business 100.00% Investment to establish LIMITED

NORTHEAST

PHARMACEUTICA

L GROUP

0.00 Vietnam Vietnam Business 100.00% Investment to establish VIETNAM

COMPANY

LIMITED

Shenyang Zhongnuo Medicine is under the same control

5,000,000.00 Shenyang Shenyang Commercial 100.00%

Co., Ltd. Enterprise merger Northeast Pharmaceutical Group

200,000,000.00 Shenyang Shenyang Commercial 99.99% 0.01% Invest in the establishment of a sales company

Dongyao Group Huludao Not under common control

50,000,000.00 Huludao Huludao Commercial 51.00%

Pharmaceutical Co., Ltd. merged with Dongyang Pharmaceutical Group Chaoyang Medical

20,000,000.00 Chaoyang Chaoyang Commercial 100.00% Investment to establish a pharmaceutical company

Northeast Pharmaceutical Liaoyang Medical Not under common control

10,000,000.00 Liaoyang Liaoyang Commercial 60.00%

Pharmaceutical Co., Ltd. merged with Northeast Pharmaceutical Dandong Medical Co., Ltd. Not under common control

10,000,000.00 Dandong Dandong Commercial 60.00%

Pharmaceutical Co., Ltd. merged with Northeast Pharmaceutical Jinzhou Medical Co., Ltd. Not under common control

10,000,000.00 Jinzhou Jinzhou Commercial 60.00%

Pharmaceutical Co., Ltd. merged with Northeast Pharmaceutical Group

5,000,000.00 Dalian Dalian Commercial 60.00% Invest in the establishment of Lian Pharmaceutical Co., Ltd.

Dongyao Group Jilin Medical Not under common control

4,100,000.00 Jilin Jilin Commercial 51.00%

Pharmaceutical Co., Ltd. merged with Dongyao Group Yingkou Medical

15,000,000.00 Yingkou Yingkou Commercial 100.00% Investment to establish a pharmaceutical Co., Ltd.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Northeast Pharmaceutical Group sells under common control

50,000,000.00 Shenyang Shenyang Commercial 100.00%

Sales Co., Ltd. Enterprise merger Shenyang Northeast Pharmacy

70,007,000.00 Shenyang Shenyang Wholesale and retail industry 99.99% Investment to establish a chain company

Shenyang Northeast Pharmaceutical Equipment

Equipment Manufacturing and Installation Co., Ltd. 125,000,000.00 Shenyang Shenyang Service Industry 99.99% 0.01% Investment to establish a company

Northeast Pharmaceutical Group Shen

Yangjikong Co., Ltd. 1,000,000.00 Shenyang Shenyang Service industry 0.00% 100.00% Investment to establish a company

Shenyang Dongrui Refinement

1,000,000.00 Shenyang Shenyang Manufacturing 89.00% Investment to establish an industrial co., Ltd.

Shanghai Dongyao Hanfei Enterprise

12,000,000.00 Shanghai Shanghai Commercial 40.00% Investment to establish Industrial Development Co., Ltd.

Shanghai Yidong Investment Co., Ltd.

Partnership (limited partnership 200,000,000.00 Shanghai Shanghai Commercial 95.00% 2.00% investment to establish partnership)

Shenyang Northeast Pharmaceutical Co., Ltd.

3,000,000.00 Shenyang Shenyang Service industry 99.99% 0.01% Invest in the establishment of a design Co., Ltd.

Shenyang Million Transportation Co., Ltd.

4,070,000.00 Shenyang Shenyang Service industry 99.99% 0.01% Investment to establish a limited company

Northeast Pharmaceutical Group Shen

Yang Yunchuang Technology Co., Ltd. 20,000,000.00 Shenyang Shenyang Service industry 100.00% Investment to establish a company

Northeast Pharmaceutical Group Liaoning

Ning Biopharmaceutical Co., Ltd. 90,000,000.00 Benxi Benxi Manufacturing 62.50% Investment to establish a company

Northeast Pharmaceutical (Part 1)

Hai) Biotechnology has 500,000,000.00 Shanghai Shanghai Service Industry 99.99% 0.01% Investment to establish a limited company

Beijing Dingcheng Peptide Source Non-identical Control

54,540,495.00 Beijing Beijing Service Industry 70.00%

Chemical Technology Co., Ltd. merged with Dongyakurisheng (Shenyang)

Yang) Consulting Co., Ltd. 50,000.00 Shenyang Shenyang Service Industry 100.00% Investment to establish any company

Explanation on the difference between the proportion of shareholding in subsidiaries and the proportion of voting rights:

Basis for holding half or less of the voting rights but still controlling the invested unit, and holding more than half of the voting rights but not controlling the invested unit:

(1) The company holds 40.00% of the equity of Shanghai Dongyao Hanfei Enterprise Development Co., Ltd., making it the company’s largest shareholder with five directors

Three of them are dispatched by the company. According to the investment agreement and the company's articles of association, the company has the right to decide on matters discussed at the shareholders' meeting. Therefore, the company

The company can control the operations and decision-making of Shanghai Dongyao Hanfei Enterprise Development Co., Ltd., which constitutes actual control.

(2) The company holds 36.00% of the equity of Gansu Fangda Jiujianpeng Technology Development Co., Ltd.

Jiujiang Pinggang Iron and Steel Co., Ltd., which has a 24.00% stake in Gansu Zhanzhan Co., Ltd., is a person acting in concert, and Gansu Fangda Jiujianpeng Technology Development Co., Ltd.

The board of directors occupies 3/5 of the seats, enjoys 60% of the voting rights, controls the financial and operating policies of the merged party, enjoys the corresponding benefits and assumes

The corresponding risks constitute actual control.

For important structured entities included in the scope of consolidation, the basis for control is:

Basis for determining whether a company is agent or principal:

Other notes:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(2) Important non-wholly owned subsidiaries

Unit: Yuan Attributable to minority shareholders in this period. To minority shareholders in this period. Name of subsidiary with minority shareholders’ rights at the end of the period. Shareholding ratio of minority shareholders.

East’s profit and loss Balance of dividends declared to be distributed Beijing Dingcheng Peptide Source Biotechnology Co., Ltd. 30.00% -36,160,104.68 0.00 23,701,765.23 Explanation that the shareholding ratio of subsidiary minority shareholders is different from the voting right ratio:

Other notes:

(3) Main financial information of important non-wholly owned subsidiaries

Unit: Yuan

Ending balance Beginning balance

Zigong

non-flow non-flow non-flow non-flow

Company name Current assets Current liabilities Current assets Current liabilities Liquid capital Current liabilities Liquid capital Liquid liabilities

Said Assets Total Liabilities Total Assets Total Liabilities Total

property debt property debt

Beijing

Dingcheng

Peptide source 12,97 27,35 40,32 442,5 120,5 563,0 16,98 37,87 54,85 265,9 198,1 464,0Biological 3,447 1,924 5,371 03,76 80,47 84,24 3,471 0,512 3,983 00,74 33,34 34,08Technology .36 .61 .97 6.50 4.83 1.33 .22 .66 .88 2.46 4.65 7.11Limited

company

Unit: Yuan

Amount for the current period Amount for the previous period

Subsidiary name

Comprehensive Income Operating Activities Comprehensive Income Operating Activities Operating Income Net Profit Operating Income Net Profit

Total Cash Flow Total Cash Flow Beijing Dingcheng

Peptide Source Biotech 223,815.8 85,590,50 920,669.5

113,578,7 113,578,7 0.00 9,758,811 9,758,811

Limited technology 5 1.99 4

66.13 66.13 .32 .32

company

Other notes:

(4) Significant restrictions on the use of enterprise group assets and settlement of enterprise group debts

(5) Financial support or other support provided to structured entities included in the scope of consolidated financial statements

Other notes:

Transactions in which the ownership share of the subsidiary changes and the subsidiary is still controlled

(1) Description of changes in owner’s equity shares of subsidiaries

(2) The impact of the transaction on minority shareholders’ equity and owner’s equity attributable to the parent company

Unit: Yuan

Purchase cost/disposal consideration

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

--cash

--Fair value of non-cash assets

Total purchase cost/disposal consideration

Less: The difference in net asset share of subsidiaries calculated based on the proportion of equity acquired/disposed of

Including: Adjustment of capital reserve

Adjust the surplus reserve

Adjust undistributed profits

Other notes:

Interests in joint ventures or associated enterprises

(1) Important joint ventures or associates

Shareholding ratio of joint ventures or joint ventures or associates

Main place of business Registration place Nature of business Name of joint venture invested by the enterprise Direct Indirect

Explanation on accounting treatment method: The proportion of shareholdings in joint ventures or associates is different from the proportion of voting rights: Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but not having significant influence:

(2) Main financial information of important joint ventures

Unit: Yuan

Ending balance/amount of the current period Beginning balance/amount of the previous period

current assets

Of which: cash and cash equivalents

non-current assets

Total assets

current liabilities

non-current liabilities

Total liabilities

minority interests

Equity attributable to shareholders of the parent company

Share of net assets calculated based on shareholding ratio

Adjustments

--Goodwill

--Unrealized profits from internal transactions

--Others

Book value of equity investments in joint ventures

Fair value operating income from equity investments in joint ventures with publicly quoted prices

financial charges

income tax expense

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

net profit

Net profit from discontinued operations

other comprehensive income

Total comprehensive income

Other descriptions of dividends received from joint ventures during the year:

(3) Main financial information of important associates

Unit: Yuan

Ending balance/amount of the current period Beginning balance/amount of the previous period

current assets

non-current assets

Total assets

current liabilities

non-current liabilities

Total liabilities

minority interests

Equity attributable to shareholders of the parent company

Share of net assets calculated based on shareholding ratio

Adjustments

--Goodwill

--Unrealized profits from internal transactions

--Others

Fair value operating income of equity investments in associates whose book value is publicly quoted

net profit

Net profit from discontinued operations

other comprehensive income

Total comprehensive income

Other explanations on dividends received from associates during the year:

(4) Summary financial information of unimportant joint ventures and associates

Unit: Yuan

Ending balance/amount of the current period Beginning balance/amount of the previous period

Joint Venture:

The total of the following items calculated based on shareholding ratio

Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Full Text Associates:

Total book value of investments 4,730,908.12 6,127,595.39 Total of the following items calculated based on shareholding ratio

--Net profit -1,396,687.27 -1,076,503.22 --Total comprehensive income -1,396,687.27 -1,076,503.22Other notes:

(5) Explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the company (6) Excess losses incurred by joint ventures or associates

Unit: Yuan

Unrecognized losses in the current period (or names of joint ventures or associates in the current period Accumulated unrecognized losses in previous periods Accumulated unrecognized losses at the end of the period

shared net profit)

Other notes:

(7) Unconfirmed commitments related to investment in joint ventures

(8) Contingent liabilities related to investments in joint ventures or associates

Important joint operations

Shareholding ratio/share joint business name Main place of business Registration place Nature of business

Explanation on whether the proportion of direct or indirect shareholdings or shares enjoyed in a joint operation is different from the proportion of voting rights:

If the joint operation is a separate entity, the basis for classifying it as a joint operation is:

Other notes:

Equity in structured entities not included in the scope of consolidated financial statements

Relevant instructions for structured entities not included in the scope of consolidated financial statements:

Others

11. Government subsidies

Government subsidies recognized according to the amount receivable at the end of the reporting period

□Applicable Not applicable

Reasons for failure to receive the estimated amount of government subsidy at the estimated time

□Applicable Not applicable

Liability items involving government subsidies

Applicable □Not applicable

Full text of the 2025 annual report of Northeast Pharmaceutical Group Co., Ltd. Unit: Yuan for the current period

New in this issue

Entering business and transferring to other revenue in the current period. Other revenue and assets/receipt accounting account in the current period. Opening balance. Additional subsidy. Ending balance.

Amount of external income and benefits Other changes related to benefits

Amount

Deferred income 140,905,277.36 14,702,473.32 126,202,804.04 Related to assets

Total 140,905,277.36 14,702,473.32 126,202,804.04

Government subsidies included in current profits and losses

Applicable □Not applicable

Unit: Yuan

Accounting accounts Amount for the current period Amount for the previous period

Related to assets 14,702,473.32 26,438,669.69 Related to income 56,145,713.07 36,492,578.63

Total 70,848,186.39 62,931,248.32Other instructions:

12. Risks related to financial instruments

Various risks arising from financial instruments

The company's main financial instruments, in addition to derivatives, include bank borrowings, other interest-bearing borrowings, monetary funds, etc. The primary purpose of these financial instruments is to finance the Company's operations. The company has a variety of other financial assets and liabilities arising directly from operations, such as accounts receivable and accounts payable.

The Company also enters into derivative transactions, primarily including foreign exchange swap contracts, for the purpose of managing interest rate risk and foreign exchange risk in the Company's operations. Throughout the year, the Company adopted a policy of not engaging in speculative transactions in derivatives.

The main risks caused by the company's financial instruments are credit risk, liquidity risk and market risk (including exchange rate risk, interest rate risk and commodity price risk).

The Company's goal in risk management is to achieve an appropriate balance between risks and returns, and strive to reduce the adverse impact of financial risks on the Company's financial performance. Based on this risk management objective, the Company has formulated risk management policies to identify and analyze the risks faced by the Company, set appropriate risk acceptance levels and design corresponding internal control procedures to monitor the Company's risk levels. The Company will regularly review these risk management policies and related internal control systems to adapt to changes in market conditions or the Company's operating activities. The Company's internal audit department also regularly or randomly checks whether the implementation of the internal control system complies with the risk management policy.

The board of directors is responsible for planning and establishing the company's risk management structure, formulating the company's risk management policies and relevant guidelines, and supervising the implementation of risk management measures. The Company has formulated risk management policies to identify and analyze the risks faced by the Company. These risk management policies clearly define specific risks and cover many aspects such as market risk, credit risk and liquidity risk management. The Company regularly evaluates changes in the market environment and the Company's operating activities to determine whether to update risk management policies and systems. Our company’s risk management

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

It is carried out by relevant departments in accordance with policies approved by the Board of Directors. These departments identify, evaluate and avoid relevant risks through close cooperation with other business departments of the Company.

The Company diversifies financial instrument risks through appropriate diversification of investments and business portfolios, and reduces risks concentrated in a single industry, specific region or specific counterparty by formulating corresponding risk management policies.

(1) Classification of financial instruments

①The book value of various financial assets on the balance sheet date

December 31, 2025

Unit: Yuan Measured at fair value and Measured at fair value and

Measured at amortized cost

Financial asset items, changes in which are included in current losses, changes in which are included in other comprehensive totals

Financial assets (yuan)

Financial assets with income Financial assets with income

Monetary funds 3,601,754,773.77 3,601,754,773.77 Trading financial assets 350,622.31 350,622.31 Notes receivable 440,776,337.16 440,776,337.16 Accounts receivable 1,732,901,284.52 1,732,901,284.52 Receivables financing 244,430,667.26 244,430,667.26 Other receivables 186,387,478.52 186,387,478.52 December 31, 2024

Unit: Yuan Measured at fair value and Measured at fair value and

Measured at amortized cost

Financial asset items, changes in which are included in current losses, changes in which are included in other comprehensive totals

financial assets

Financial assets with income Financial assets with income

Monetary funds 4,468,332,416.81 4,468,332,416.81 Notes receivable 534,622,306.52 534,622,306.52 Accounts receivable 1,959,029,870.69 1,959,029,870.69 Other receivables 192,507,181.41 192,507,181.41 ② Book value of various financial liabilities on the balance sheet date

December 31, 2025

Unit: Yuan Measured at fair value with changes included

Financial liabilities items Other financial liabilities Total

Financial liabilities for current profit and loss

Short-term loans 1,891,780,154.51 1,891,780,154.51 Notes payable 1,623,928,687.66 1,623,928,687.66

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Accounts payable 1,238,491,928.98 1,238,491,928.98 Other payables 1,439,026,533.99 1,439,026,533.99 Non-current liabilities due within one year 80,585,388.81 80,585,388.81 Other current liabilities 100,913,414.90 100,913,414.90 Long-term borrowings 154,600,000.00 154,600,000.00 Lease liabilities 19,815,002.59 19,815,002.59 Other non-current liabilities 245,207,406.83 245,207,406.83 December 31, 2024

Unit: Yuan Measured at fair value with changes included

Financial liabilities items Other financial liabilities Total

Financial liabilities for current profit and loss

Short-term borrowings 1,542,200,000.00 1,542,200,000.00 Notes payable 3,536,592,539.37 3,536,592,539.37 Accounts payable 1,303,925,503.92 1,303,925,503.92 Other payables 1,577,265,049.42 1,577,265,049.42 Non-current liabilities due within one year 55,428,853.85 55,428,853.85 Other current liabilities

Lease liabilities 30,137,899.30 30,137,899.30 Other non-current liabilities

352,829,670.57 352,829,670.57 (2) Credit risk

Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, resulting in financial losses for the company.

The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits, bills receivable, accounts receivable, other receivables, etc.

The company's bank deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks. The company does not expect that there will be significant credit risk in bank deposits.

For notes receivable, accounts receivable and other receivables, the company sets relevant policies to control credit risks. The company evaluates the customer's credit qualifications and sets corresponding credit periods based on the customer's financial status, credit history and other factors such as current market conditions. The company will regularly monitor customer credit records. For customers with poor credit records, the company will use written reminders, shorten the credit period or cancel the credit period to ensure that the company's overall credit risk is within a controllable range.

The debtors of the Company's accounts receivable are customers located in different industries and regions. The Company continues to conduct credit assessments on the financial status of accounts receivable and purchases credit insurance when appropriate.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The maximum credit risk borne by the Company is the carrying amount of each financial asset in the balance sheet. The Company has not provided any other guarantees that may expose the Company to credit risk.

Among the Company's accounts receivable, the accounts receivable of the top five customers accounted for 11.25% of the Company's total accounts receivable (2024: 13.83%); among the Company's other receivables, the other receivables of the top five companies in arrears accounted for 72.60% of the Company's total other receivables (2024: 72.95%).

(3) Liquidity risk

Liquidity risk refers to the risk that the company encounters a shortage of funds when fulfilling its obligations to settle by delivering cash or other financial assets. When managing liquidity risk, the Company maintains and monitors cash and cash equivalents that management considers sufficient to meet the Company's operating needs and reduce the impact of cash flow fluctuations. The Company's management monitors the use of bank borrowings and ensures compliance with borrowing agreements. At the same time, obtain commitments from major financial institutions to provide sufficient backup funds to meet short-term and long-term funding needs.

The Company raises working capital through funds generated from operating businesses and bank and other borrowings. Maturity analysis of financial liabilities based on undiscounted contractual cash flows:

Unit: Yuan December 31, 2025

Project

Within 1 year More than 1 year Total

Short-term borrowings 1,891,780,154.51 1,891,780,154.51 Notes payable 1,623,928,687.66 1,623,928,687.66 Accounts payable 1,238,491,928.98 1,238,491,928.98 Other payables 1,439,026,533.99 1,439,026,533.99 Non-current liabilities due within one year 80,585,388.81 80,585,388.81 Other current liabilities 100,913,414.90 100,913,414.90 Long-term borrowings 154,600,000.00 154,600,000.00 Lease liabilities 19,815,002.59 19,815,002.59 Other non-current liabilities 245,207,406.83 245,207,406.83 Continued from the table above:

Unit: Yuan December 31, 2024

Project

Within 1 year More than 1 year Total

Short-term borrowings 1,542,200,000.00 1,542,200,000.00 Notes payable 3,536,592,539.37 3,536,592,539.37 Accounts payable 1,303,925,503.92 1,303,925,503.92

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Other payables 1,577,265,049.42 1,577,265,049.42 Non-current liabilities due within one year 55,428,853.85 55,428,853.85 Other current liabilities

long term borrowing

Lease liabilities 30,137,899.30 30,137,899.30 Other non-current liabilities 352,829,670.57 352,829,670.57 (4) Market risk

Market risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market prices. Market risks mainly include interest rate risks, foreign exchange risks and other price risks.

①Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market interest rates. Interest rate risk can arise from both recognized interest-bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).

The Company's interest rate risk mainly arises from bank borrowings. Financial liabilities with floating interest rates expose the Company to cash flow interest rate risks, while financial liabilities with fixed interest rates expose the Company to fair value interest rate risks. The Company determines the relative proportions of fixed-rate and floating-rate contracts based on the prevailing market environment, and maintains an appropriate portfolio of fixed-rate and floating-rate instruments through regular review and monitoring.

The Company pays close attention to the impact of interest rate changes on the Company's interest rate risk. The Company currently does not adopt an interest rate hedging policy. However, management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk if necessary. Rising interest rates will increase the cost of new interest-bearing debt and the interest expenses of the company's unpaid interest-bearing debt with floating interest rates, and will have a significant adverse impact on the company's financial performance. The management will make timely adjustments based on the latest market conditions. These adjustments may involve interest rate swap arrangements to reduce interest rate risks.

For financial instruments held on the balance sheet date that expose the Company to fair value interest rate risk, the impact on net profit and shareholders' equity in the above sensitivity analysis is the impact after assuming that interest rates change on the balance sheet date and the above financial instruments are remeasured according to the new interest rate. For floating rate non-derivatives held on the balance sheet date that expose the Company to cash flow interest rate risk, the impact on net profit and shareholders' equity in the above sensitivity analysis is the impact of the above interest rate changes on annual estimated interest expenses or income. The previous year's analysis was based on the same assumptions and methodology.

②Exchange rate risk

Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial instruments denominated in foreign currencies other than the functional currency of accounting.

Exchange rate risk is mainly due to the impact of the company's financial position and cash flows on foreign exchange rate fluctuations. The company's exposure to exchange rate risks is mainly related to the U.S. dollar. Except for export business settled in U.S. dollars and a small amount of euros, the company's other main business activities are denominated and settled in RMB. The proportion of foreign currency assets and liabilities held by the Company to the overall assets and liabilities is not significant. Therefore, the Company believes that the exchange rate risk it faces is not significant.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

At the end of the period, the amounts of foreign currency financial assets and foreign currency financial liabilities held by the Company converted into RMB are listed as follows:

(Unit: RMB 10,000) Foreign currency liabilities Foreign currency assets

Project

Ending balance Last year's end balance Last year's end balance USD 2,788.49 4,058.47 118,274.56 73,209.17 Swiss francs 3,491.72

Euro 904.88 1,012.24 185.64 140.96 Korean won 50.33 50.95 Polish currency 0.09 Total 3,693.37 5,070.71 122,002.25 73,401.17 The company pays close attention to the impact of exchange rate changes on the company's exchange rate risk. The company's management is responsible for monitoring exchange rate risks and will consider hedging significant exchange rate risks if necessary.

Hedging

(1) The company carries out hedging business for risk management

□Applicable Not applicable

(2) The company carries out qualified hedging business and applies hedging accounting

Unit: Yuan Confirmed hedged items

The effectiveness of the hedge and the absence of a hedge are included in the hedged item and the carrying value of the hedge. Hedge accounting has a negative impact on the company's financial items.

The related book value of period instruments and the cumulative fair effect of hedged items are partly derived from the relevant impact on financial statements.

Value Hedge Adjustment

Hedging risk type

Hedging category

Other instructions

(3) The company carries out hedging business for risk management and expects to achieve risk management objectives but does not apply hedging accounting

□Applicable Not applicable

Financial assets

(1) Classification of transfer methods

Applicable □Not applicable

Unit: Yuan Transfer method Nature of transferred financial assets Amount of transferred financial assets Termination of recognition Determination of recognition based on endorsement/discount Notes receivable have not yet expired 114,893,569.41 Not terminated because the bank acceptance bill in the notes receivable is issued by Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Full Text

Bank acceptance bills with low credit rating, bank acceptance bills that have been endorsed or discounted do not affect the right of recourse. The credit risk and deferred payment risk related to the bill have not been transferred, so the recognition has not been terminated.

Since the bank acceptance bill credit risk and deferred payment risk in receivables financing are very small, and there are no

Endorsement/discount 322,183,725.00 Derecognition The interest rate risk related to the bill has been transferred to the bank, and the bank acceptance bill has expired

It can be judged that the main risks and rewards of ownership of the notes have been transferred, so the recognition is terminated.

Factoring accounts receivable 16,200,000.00 Derecognition without recourse

Total 453,277,294.41

(2) Financial assets derecognized due to transfer

Applicable □Not applicable

Unit: Yuan

Gains or losses related to derecognition Method of transferring financial assets Amount of financial assets derecognised

lose

Receivables financing that has not yet matured

Termination of confirmation 322,183,725.00 -78,000.54 bank acceptance bill

Accounts receivable Factoring 16,200,000.00

Total 338,383,725.00 -78,000.54

(3) Asset transfer financial assets that continue to be involved

Applicable □Not applicable

Unit: Yuan Item Asset transfer method Amount of assets formed by continued involvement Amount of liabilities formed by continued involvement Unexpired bank acceptance bills among notes receivable Endorsement/discount 114,893,569.41 114,893,569.41 Total 114,893,569.41 114,893,569.41

Other instructions

13. Disclosure of fair value

Closing fair value of assets and liabilities measured at fair value

Unit: Yuan Ending Fair Value

Project

Level 1 fair value measurement Second level fair value measurement Third level fair value measurement Total

1. Continuous fairness

value measurement

(1) Trading money

350,622.31 350,622.31 Financing assets

Based on fair value

amount and its changes are included in the current profit and loss 350,622.31 350,622.31

Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report Full Text Assets

(3) Derivative finance

350,622.31 350,622.31Assets

(6) Accounts receivable

244,430,667.26 244,430,667.26 Financing

fair value on an ongoing basis

350,622.31 244,430,667.26 244,781,289.57 Total assets measured

2. Non-continuous public

fair value measurement

Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

For financial instruments traded in an active market, the Company determines its fair value based on its quoted price in the active market.

Continuous and non-continuous second-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters

The financing of receivables in financial assets measured at fair value and whose changes are included in the current profit and loss is bank acceptance bills due within one year. Since its maturity is short and the risk is low, the par amount is close to the fair value, so the par amount is used as the fair value.

Continuous and non-continuous third-level fair value measurement projects, valuation techniques used and qualitative and quantitative information on important parameters

For investment in equity instruments that are not traded in an active market, since the company's equity holdings in the invested unit are low and have no significant impact, it is not feasible to use the income method or the market method to value the equity of the invested company, and the invested unit has not introduced external investors or transferred equity between shareholders in the near future. As a reference basis for determining fair value, in addition, the company analyzed the relevant information available and found that the internal and external environment of the investee has not changed significantly since the beginning of the year. Therefore, it is a "limited situation" where book cost can be used as the best estimate of fair value. Therefore, cost is used as fair value at the end of the year.

Continuous third-level fair value measurement items, reconciliation information between the opening and closing book values and sensitivity analysis of unobservable parameters
For ongoing fair value measurement items, if there is a conversion between various levels during the current period, the reasons for the conversion and the policy for determining the time of conversion
Valuation technology changes that occurred during the current period and reasons for the changes
Fair value of financial assets and financial liabilities not measured at fair value

The Company's financial assets and financial liabilities measured at amortized cost mainly include: monetary funds, notes receivable, accounts receivable, other receivables, short-term loans, notes payable, accounts payable, other payables, non-current liabilities due within one year, long-term borrowings, etc. The difference between the book value and fair value of the above-mentioned financial assets and financial liabilities not measured at fair value is very small.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Others

14. Related parties and related transactions

Information about the parent company of this enterprise

Parent company to this enterprise Parent company to this enterprise Parent company name Place of registration Nature of business Registered capital

Proportion of shareholding Proportion of voting rights Jiangxi Western Steel Group

Nanchang City Steel Manufacturing RMB 1,111,500,650 32.08% 32.08% Group Co., Ltd.

Description of the parent company of this enterprise

The ultimate controller of this enterprise is Liaoning Fangda Group Industrial Co., Ltd., and the actual controller is: Fang Wei.

Other notes:

Information about the company’s subsidiaries

Please refer to Note 10.1 for details of the company's subsidiaries.

Information on joint ventures and associated enterprises of the enterprise

Please refer to Note 10.3 for details of the company's important joint ventures or associates.

The situation of other joint ventures or associates that have related party transactions with the company in the current period, or related party transactions with the company in previous periods that resulted in balances is as follows:

Name of joint venture or associated enterprise Relationship with this enterprise

Other notes:

Other related parties

Names of other related parties Other related parties’ relationship with the enterprise Fangda Carbon New Materials Technology Co., Ltd. Fushun Carbon Co., Ltd. is controlled by the same ultimate controller. Chengdu Fangda Carbon Composite Materials Co., Ltd. is controlled by the same ultimate controller. Gansu Classical Shengdong Construction Poverty Alleviation and Development Co., Ltd. is controlled by the same ultimate controller. Gansu Benju Handicraft Development Co., Ltd. is controlled by the same ultimate controller. Dongxiang Autonomous County Fangda Tengda Clothing Co., Ltd. is controlled by the same ultimate controller. Qujing Fangda Chunying Leaf Spring Co., Ltd. is controlled by the same ultimate controlling party. Benxi Manchu Autonomous County Tongda Iron Selection Co., Ltd. is controlled by the same ultimate controlling party. Benxi Tongcheng Iron Selection Co., Ltd. is controlled by the same ultimate controlling party. Pingxiang Pinggang Anyuan Steel Co., Ltd. is controlled by the same ultimate controlling party. Jiujiang Pinggang Steel Co., Ltd. is controlled by the same ultimate controlling party. Jiangxi Pinggang Industrial Co., Ltd. is controlled by the same ultimate controlling party. Xinyu Zhongchuang Mining Co., Ltd. is controlled by the same ultimate controlling party. Dongxiang Autonomous County Dongxiang Collaboration Shengweitang Food Co., Ltd. is controlled by the same ultimate controller. Dongxiang Autonomous County Baisui Industrial Co., Ltd. is controlled by the same ultimate controller. Gansu Fangda Youerta Animal Husbandry Development Co., Ltd. is controlled by the same ultimate controller. Gansu Fangda Zhanyao New Material Packaging Co., Ltd. is controlled by the same ultimate controller. Gansu Yuerong Clothing Co., Ltd. is controlled by the same ultimate controller. Gansu Herpis Craft Products Co., Ltd. is controlled by the same ultimate controller. Gansu Fangda Baiquan Agricultural Technology Co., Ltd. is controlled by the same ultimate controller. Dongxiang Autonomous County Dongxiang Cooperation Meijia Rain Gear Co., Ltd. is controlled by the same ultimate controller. Dongxiang Autonomous County Xiyuhang Clothing Co., Ltd. is controlled by the same ultimate controller. Dongxiang Autonomous County Xiyuhang Clothing Co., Ltd. is controlled by the same ultimate controller.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Gansu Fangda Tongte New Materials Co., Ltd. is controlled by the same ultimate controller. Shengjing Fangda Real Estate Development Co., Ltd. is controlled by the same ultimate controller. Shenyang Fangda Property Management Co., Ltd. Heping Branch is controlled by the same ultimate controller. Shenyang Fangda Real Estate Co., Ltd. Hunnan Branch is controlled by the same ultimate controller. Liaoning Fangda Xincheng Real Estate Co., Ltd. is controlled by the same ultimate controller. Shenyang Fangda Property Management Co., Ltd. Shenfu Demonstration Branch Branch is controlled by the same ultimate controller. Dazhou Fangda Real Estate Development Co., Ltd. is controlled by the same ultimate controller. Nanchang Fangda Suncity Real Estate Development Co., Ltd. is controlled by the same ultimate controller. Yingkou Fangda Hospital Co., Ltd. is controlled by the same ultimate controller. Yingkou Maternity and Children’s Hospital is controlled by the same ultimate controller. Liaoning Fangda General Hospital Co., Ltd. is controlled by the same ultimate controller. ZTE-Shenyang Commercial Building (Group) Co., Ltd. is controlled by the same ultimate controller. Dongxiang Autonomous County Fangda Shengdong Packaging Manufacturing Co., Ltd. is controlled by the same ultimate controller. Gansu Linxia Dongxiang Autonomous County Shengdong Hailimai Food Manufacturing Co., Ltd. is controlled by the same ultimate controller. Tianjin Yishang Group Co., Ltd. is controlled by the ultimate controller. Tianjin Yishang Friendship Co., Ltd. Youyi Xintiandi Plaza is controlled by the ultimate controller. Tianjin Department Store Commerce and Trade Corporation is controlled by the ultimate controller. Tianjin Auction Head Office Co., Ltd. is controlled by the ultimate controller. Liaoning Fangda Group International Trade Co., Ltd. is controlled by the ultimate controller. Suifenhe Fangda International Trade Co., Ltd. is controlled by the ultimate controller. Beijing Fangda Carbon Technology Co., Ltd. is controlled by the same ultimate controlling party. Northern Heavy Industries Group Co., Ltd. is controlled by the same ultimate controlling party. Guangxi Beibu Gulf Aviation Co., Ltd. is controlled by the same ultimate controlling party. Deer (Beijing) Business Aviation Co., Ltd. is controlled by the same ultimate controlling party. Fuzhou Airlines Co., Ltd. is controlled by the same ultimate controlling party. Grand China Aircraft Maintenance Services Co., Ltd. is controlled by the same ultimate controlling party. HNA Aviation Technology (Tianjin) Co., Ltd. is controlled by the same ultimate controlling party. HNA Aviation Technology (Yunnan) Co., Ltd. is controlled by the same ultimate controlling party. HNA Aviation Technology Co., Ltd. is controlled by the same ultimate controlling party. Hainan Airlines Holdings Co., Ltd. is controlled by the same ultimate controlling party. Shanxi Airlines Co., Ltd. is controlled by the same ultimate controlling party. Beijing Capital Airlines Co., Ltd. is controlled by the same ultimate controlling party. Beijing Badaling Airport Management Co., Ltd. is controlled by the same ultimate controlling party. Tianjin Cargo Airlines Co., Ltd. is controlled by the same ultimate controlling party. West China Airlines Co., Ltd. is controlled by the same ultimate controlling party. Yunnan Xiangpeng Aviation Co., Ltd. is controlled by the same ultimate controller. China Xinhua Airlines Group Co., Ltd. is controlled by the ultimate controller. Hainan HNA Aviation Information Systems Co., Ltd. is controlled by the ultimate controller. Hainan Shangpin Yigou E-commerce Co., Ltd. is controlled by the ultimate controller. Yihang Technology Co., Ltd. is controlled by the ultimate controller. Changan Aviation Co., Ltd. is controlled by the ultimate controller. Shenyang Beixiang Aviation Technology Co., Ltd. is controlled by the ultimate controller. The Third Affiliated Hospital of Chongqing Medical University (Fangda Hospital) is controlled by the ultimate controller. Fangkang (Chongqing) Medical Supplies Co., Ltd. is controlled by the same ultimate controller. The property branch of Northern Heavy Industries Group Co., Ltd. is controlled by the same ultimate controller. Xi’an Branch of Hainan HNA Aviation Property Services Co., Ltd. is controlled by the same ultimate controller. Kunming Fangda Spring Eagle Leaf Spring Co., Ltd. is controlled by the same ultimate controller. Liaoning Baishahe Industrial Development Co., Ltd. is controlled by the same ultimate controller. Liaoning Damei Foundation Operation Management Co., Ltd. is controlled by the same ultimate controller. Tiexi Branch of Shenyang Fangda Real Estate Development Co., Ltd. is controlled by the same ultimate controller. Shenyang Fangda Property Management Co., Ltd. Shenfu Demonstration Zone Baisha Island Branch is controlled by the same ultimate controller. Shenyang Fangdi Real Estate Co., Ltd. is controlled by the same ultimate controller. Yingkou Traditional Chinese Medicine Hospital is controlled by the same ultimate controller. Supermarket chain headquarters of ZTE-Shenyang Commercial Building (Group) Co., Ltd. is controlled by the same ultimate controller. HNA Aviation Food (Sanya) Co., Ltd. is controlled by the same ultimate controller. Beijing Kehang Investment Co., Ltd. Beijing HNA Tower Marriott Hotel is controlled by the same ultimate controller.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Fangkang (Chongqing) Medical Supplies Co., Ltd. Shenfu Demonstration Zone Fangkang Pharmacy Branch Xi'an Branch of HNA Aviation Technology Co., Ltd. controlled by the same ultimate controller Controlled by the same ultimate controller Huludao Centennial Donghetang Pharmacy Chain Co., Ltd. Sun Company's minority shareholder holding company Huludao Centennial Donghetang Pharmacy Chain Co., Ltd. Lianshan District Traditional Chinese Medicine Outpatient Department Sun Company's minority shareholder holding company Huludao Centennial Donghetang Pharmacy Chain Co., Ltd. Suizhong County Integrated Traditional Chinese and Western Medicine Clinic Sun Company's minority shareholder holding company Huludao Centenary Donghetang Pharmacy Chain Co., Ltd. Minority shareholders of subsidiaries

Beijing Jundao Technology Development Co., Ltd. Subsidiary minority shareholder-controlled enterprise Guizhou Fangdahuang Fruits Food and Beverage Co., Ltd. Commonly controlled by the ultimate controlling party Huludao Hengda Medical Equipment Trading Co., Ltd. Sun Company’s minority shareholder-controlled company Huludao Zhuoda Medical Equipment Trading Co., Ltd. Sun Company’s minority shareholder-owned company Suizhong County Donghetang Integrated Traditional Chinese and Western Medicine Clinic Co., Ltd. Sun Company’s minority shareholder affiliated company Beijing Xinhua Shunhang Conference and Exhibition Service Co., Ltd. Commonly controlled by the ultimate controlling party Key management personnel Directors, supervisors, deputy general managers and other core technical personnel

Other notes:

Related transactions

(1) Related transactions related to the purchase and sale of goods, provision and receipt of services

Procurement of goods/service acceptance form

Unit: Yuan

Related parties Contents of related transactions Amount incurred in the current period Approved transaction limit Whether the transaction limit is exceeded Amount incurred in the previous period Northern Heavy Industry Group Co., Ltd. Purchase of goods 4,015,284.89

Gansu Classical Shengdong Construction Poverty Alleviation

Purchase of goods 2,428,748.00

Development Co., Ltd.

Gansu Fangda Baiquan Agricultural Science and Technology

Purchase of goods 1,800,000.00

Ltd.

Dongxiang Autonomous County Western Region Travel Service

Purchase of goods 1,787,840.00

Decoration Co., Ltd.

Gansu Fangda Youerta Animal Husbandry Development

Purchase of goods 638,000.00

exhibition co., ltd.

Gansu Yuerong Clothing Co., Ltd. Purchase goods 638,000.00

Linxia Dongxiang Autonomous County, Gansu

Shengdong Hailimai Food Manufacturing Company purchased goods 559,000.00

Ltd.

Dongxiang Autonomous County East-West Cooperation

Purchase of goods 494,000.00 49,800.00Shengweitang Food Co., Ltd.

Dongxiang Autonomous County Baisui Industrial

Purchase of goods 351,900.00

Ltd.

Gansu Fangda Zhanyao New Material Package

Purchase of goods 297,000.00

Decoration Co., Ltd.

Fushun Carbon Co., Ltd. Purchase of goods 248,922.30

Zhongxing-Shenyang Commercial Building (Collection

Purchase of goods 857,020.95 134,070.60 Tuan) Co., Ltd.

Fangda Shengdong, Dongxiang Autonomous County

Purchase of goods 243,319.80 201,755.40 Packaging Manufacturing Co., Ltd.

Dongxiang Autonomous County East-West Cooperation

Purchase of goods 234,000.00

Meijia Rain Gear Co., Ltd.

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Gansu Fangdatong Special New Materials Co., Ltd.

Purchase of goods 170,000.00

Ltd.

Liaoning Fangda General Hospital Co., Ltd.

Purchase of goods 302,973.69 4,618.88 Division

Yihang Technology Co., Ltd. Purchase goods 90,314.00

Northern Heavy Industries Group Co., Ltd.

Purchase of goods 5,876.56 6,257.92 Property Branch

Grand China Aircraft Maintenance Service has

Purchase goods 240.00

Ltd.

Jiujiang Pinggang Iron and Steel Co., Ltd. Purchase goods 200.00

Deer Jet (Beijing) Business Aviation 4,235,688.6

Purchase of goods 701,203.09

Co., Ltd. 3 Suizhong Kaida Department Store Co., Ltd. Purchase of goods 290,394.60 155,407.32 China Xinhua Airlines Group Co., Ltd.

Purchase of goods 63,959.95 105,309.00 Company

Shenyang Fangdi Real Estate Co., Ltd.

Purchase of goods 80,749.00 79,633.20 Hunnan Branch

Tianjin Auction Head Office Co., Ltd.

Purchase of goods 59,773.58 Ren Company

Suizhong County Zhuoda Hotel Management Co., Ltd.

Purchase of goods 1,252.00 1,577.00 Co., Ltd.

Beijing Fangda Carbon Technology Co., Ltd.

Purchase of goods 42,300.00

company

Tianjin Yishang Group Co., Ltd. Procurement of goods 11,603.77

Guizhou Fangdahuang Fruit Tree Food and Beverage

Purchase of goods 16,800.00

Materials Co., Ltd.

Beijing Xinhua Shunhang Conference and Exhibition

Accommodation services 35,257.54

Services Ltd.

List of goods sold/services provided

Unit: Yuan

Related parties Contents of related transactions Amount for the current period Amount for the previous period Yingkou Fangda Hospital Co., Ltd. Sales of goods 145,686,132.38 153,576,224.69 Liaoning Fangda Xincheng Real Estate Co., Ltd. Sales of goods 46,649,946.72 35,946,717.68 Liaoning Fangda General Hospital Co., Ltd. Sales of goods 33,597,482.71 22,061,777.45 Shenyang Beixiang Aviation Technology Co., Ltd. Sales of goods 9,252,892.49 8,725,924.40 Yingkou Hospital of Traditional Chinese Medicine Sales of goods 5,989,604.86 7,050,835.40 Huludao Centennial Donghetang Pharmacy Chain Co., Ltd. Sales of goods 3,465,407.06 10,525,205.22 Huludao Centenary Donghetang Pharmacy Chain Co., Ltd. Lianshan District Traditional Chinese Medicine Clinic Sales of goods 1,575,954.30 1,898,041.72 The Third Affiliated Hospital of Chongqing Medical University (Fangda Hospital) Sales of goods 1,113,573.90

Fangda Carbon New Material Technology Co., Ltd. Sales of goods 776,728.85

Fangkang (Chongqing) Medical Products Co., Ltd. Sales of goods 707,248.17

Jiangxi Pinggang Industrial Co., Ltd. Sales of goods 512,212.39

Jiujiang Pinggang Steel Co., Ltd. Sales of goods 511,924.78 486,725.67 Huludao Centennial Donghetang Pharmacy Chain Co., Ltd. Suizhong County Integrated Traditional Chinese and Western Medicine Clinic Sales of goods 455,237.44 598,456.92 Hainan HNA Aviation Information System Co., Ltd. Sales of goods 441,083.22 475,580.55 Gansu Classical Shengdong Construction Poverty Alleviation and Development Co., Ltd. Sales of goods 255,461.92 220,552.22 Huludao Centennial Donghetang Pharmacy Chain Co., Ltd. Xingcheng Traditional Chinese Medicine Clinic Sales of goods 173,536.19 162,891.30 Beijing Fangda Carbon Technology Co., Ltd. Sales of goods 112,069.87 82,300.87 Hainan Airlines Holdings Co., Ltd. Sales of goods 99,228.32 226,753.95 Jinzhou Liaoxi Sinopharm Chain Co., Ltd. Sales of goods 83,052.42 96,592.65 Northern Heavy Industries Group Co., Ltd. Sales of goods 118,130.63 263,902.57 Gansu Fangda Tongte New Materials Co., Ltd. Sales of goods 63,716.81 18,584.07 Benxi Manchu Autonomous County Tongda Iron Selection Co., Ltd. Sales of goods 33,990.24

Zhongxing-Shenyang Commercial Building (Group) Co., Ltd. Supermarket chain headquarters Sales of goods 7,692.80 Fushun Carbon Co., Ltd. Sales of goods 10,070.75

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Tianjin Department Store Commerce and Trading Corporation Sales of goods 8,359.29

Guangxi Beibu Gulf Airlines Co., Ltd. Sales of goods 8,053.10 4,867.24 West Air Co., Ltd. Sales of goods 7,343.36 21,845.14 Gansu Helpis Craft Products Co., Ltd. Sales of goods 7,300.86 6,548.67 Yunnan Xiangpeng Aviation Co., Ltd. Sales of goods 6,493.81 14,200.88 Benxi Tongcheng Iron Selection Co., Ltd. Sales of goods 6,004.45

HNA Aviation Technology Co., Ltd. Sales of goods 6,000.00

Nanchang Fangda Sun City Real Estate Development Co., Ltd. Sales of goods 5,309.73

Shengjing Fangda Real Estate Development Co., Ltd. Sales of goods 5,309.72 26,548.65 Dazhou Fangda Real Estate Development Co., Ltd. Sales of goods 3,864.09

HNA Aviation Catering (Sanya) Co., Ltd. Sales of goods 2,734.52

Fuzhou Airlines Co., Ltd. Sales of goods 2,539.81 13,451.32 Xinyu Zhongchuang Mining Co., Ltd. Sales of goods 2,230.09

Liaoning Baishahe Industrial Development Co., Ltd. Sales of goods 1,858.41 4,693.80 HNA Aviation Technology (Tianjin) Co., Ltd. Sales of goods 1,735.86

Hainan Shangpin Yigou E-commerce Co., Ltd. Sales of goods 1,634.02 14,127.39 Shenyang Fangda Property Management Co., Ltd. Heping Branch Sales of goods 1,380.54 1,327.43 Shenyang Fangda Property Management Co., Ltd. Shenfu Demonstration Zone Baisha Island Branch Sales of goods 1,238.94 1,150.44 Grand China Aircraft Maintenance Service Co., Ltd. Sales of goods 1,066.04

Shenyang Fangdi Real Estate Co., Ltd. Sales of goods 1,061.94 79,646.00 Dongxiang Autonomous County Fangda Tengda Clothing Co., Ltd. Sales of goods 662.83 55,640.72 HNA Aviation Technology (Yunnan) Co., Ltd. Sales of goods 594.34

Tianjin Cargo Airlines Co., Ltd. Sales of goods 486.72

Gansu Benju Handicraft Development Co., Ltd. Sales of goods 382.30

Tianjin Yishang Youyi Co., Ltd. Youyi Xintiandi Plaza sells goods 222.21 285.93 Pingxiang Pinggang Anyuan Steel Co., Ltd. sells goods 361,971.93 Zhongxing-Shenyang Commercial Building (Group) Co., Ltd. sells goods 303,102.22 59,055.53 Shenyang Fangda Real Estate Development Co., Ltd. Tiexi Branch sells goods 41,857.25 Gansu Fangda Zhanyao New Material Packaging Co., Ltd. Sales of goods 24,336.27 Beijing Capital Airlines Co., Ltd. Sales of goods 12,994.69 Liaoning Dadetang Traditional Chinese Medicine Co., Ltd. Sales of goods 8,112.80 8,647.87 Kunming Fangda Chunying Leaf Spring Co., Ltd. Sales of goods 7,389.38 Hainan HNA Aviation Property Services Co., Ltd. Xi'an Branch Sales of goods 3,816.78 Qujing Fangda Spring Eagle Leaf Spring Co., Ltd. Sales of goods 3,274.34 Shanxi Airlines Co., Ltd. Sales of goods 1,911.50 Liaoning Fangda Group International Trade Co., Ltd. Sales of goods 1,539.82 Suifenhe Fangda International Trade Co., Ltd. Sales of goods 1,274.34 Shenyang Fangda Property Management Co., Ltd. Shenfu Demonstration District Branch Sales of goods 1,061.95 Gansu Fangda Baiquan Agricultural Technology Co., Ltd. sells goods 1,001.77 Changan Airlines Co., Ltd. sells goods 900.00 Liaoning Damei Foundation Operation Management Co., Ltd. sells goods 442.48 Beijing Badaling Airport Management Co., Ltd. sells goods 243.35 Huludao Donghetang Pharmaceutical Chain Co., Ltd. sells goods -282,795.40 Fangkang (Chongqing) Medical Products Co., Ltd. Fangkang Pharmacy Branch in Shenfu Demonstration Zone Sales of goods 201,234.53

Beijing Kehang Investment Co., Ltd. Beijing HNA Tower Marriott Hotel Sales of goods 1,946.88

HNA Aviation Technology Co., Ltd. Xi’an Branch Sales of goods 226.42

Description of related transactions for purchasing and selling goods, providing and receiving services

(2) Related entrusted management/contracting and entrusted management/outsourcing situation

The company's entrusted management/contracting status table:

Unit: Yuan

Client/outsourcing Trustee/contracting Trustee/contracting capital Trustee/contracting start Trusteeship/contracting end Trusteeship income/commitment Trust recognized in this period

Party name Party name Product type Starting date Ending date Inclusive revenue pricing based on managed revenue/contracting Full text of the 2025 annual report of Northeast Pharmaceutical Group Co., Ltd.

according to income

Description of associated hosting/contracting situations

The company’s entrusted management/outsourcing status table:

Unit: Yuan Client/outsourcing Trustee/contracting Entrustment/outsourcing capital Starting from entrustment/outsourcing End of entrustment/outsourcing Escrow fee/outsourcing Name of the entrusting party confirmed in this period Name of the party Type of product Start date End date Fee pricing basis Management fee/outsourcing fee related management/outsourcing situation description

(3) Related leasing situation

As a lessor, our company:

Unit: Yuan Name of the lessee Type of leased assets Lease income recognized in the current period Lease income recognized in the previous period The company, as the lessee:

Unit: Yuan Short-term simplified treatment not included in lease liabilities

Leases and low-value assets Variable leases measured Lease liabilities assumed Increased rent paid for right-of-use assets

Lessor Lease asset Rental payment (if appropriate) Interest expense Asset

Name Product Category Use (if applicable)

Issued in this issue Issued in last issue Issued in this issue Issued in last issue Issued in this issue Issued in last issue Issued in this issue Issued in last issue Issued in this issue Issued in last issue Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Jinzhou Liao

Western Chinese medicine 546,69 643,33

house

Chain has 7.25 3.33

Ltd.

Description of related leasing situation

(4) Related guarantees

The company acts as a guarantor

Unit: Yuan guarantee has been fulfilled by the guaranteed party. Guarantee amount. Guarantee start date. Guarantee expiry date.

Complete

The company as the guaranteed party

Unit: Yuan guarantee has been fulfilled by the guarantor. Guarantee amount. Guarantee starting date. Guarantee expiry date.

Complete

Liaoning Fangda Group Industrial Co., Ltd. 150,000,000.00 September 27, 2024 March 25, 2025 Yes

Liaoning Fangda Group Industrial Co., Ltd. 200,000,000.00 September 27, 2024 April 2, 2025 Yes

Liaoning Fangda Group Industrial Co., Ltd. 150,000,000.00 March 26, 2025 March 25, 2026 No

Liaoning Fangda Group Industrial Co., Ltd. 190,000,000.00 April 2, 2025 April 1, 2026 No

Description of related guarantees

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

(5) Fund lending from related parties

Unit: Yuan

Related parties Borrowing amount Start date Maturity date Description

dismantle

take out

(6) Asset transfer and debt restructuring of related parties

Unit: Yuan

Related parties Related party transaction content Amount incurred in the current period Amount incurred in the previous period

(7) Remuneration of key management personnel

Unit: Yuan

Item Amount for the current period Amount for the previous period

Remuneration of key management personnel 8,815,696.79 10,228,390.97

(8) Other related transactions

Accounts receivable and payable from related parties

(1) Items receivable

Unit: Yuan Ending balance Beginning balance

Project name Related parties

Book balance Provision for bad debts Book balance Provision for bad debts

The Third Affiliated School of Chongqing Medical University

Accounts receivable 419,681.00 1,972.50

Hospital (Fangda Hospital)

Zhongxing-Shenyang Commercial Building

Accounts receivable 3,537.98 348.29 2,400.00 39.53 (Group) Co., Ltd.

Yunnan Xiangpeng Airlines Co., Ltd.

Accounts receivable 10,302.00 128.78

company

Accounts receivable Yingkou Hospital of Traditional Chinese Medicine 6,942,055.55 949,774.20 9,981,781.73 1,169,152.48 Accounts receivable Yingkou Maternity and Children’s Hospital 1,710,331.33 1,710,331.33 1,710,331.33 1,710,331.33 Accounts receivable Yingkou Fangda Hospital Co., Ltd. 47,790,321.34 230,463.08 149,529,192.23 1,230,584.15

Xinyu Zhongchuang Mining Co., Ltd.

Accounts receivable 2,520.00 6.80

Division

Accounts receivable West Air Co., Ltd. 1,650.00 4.46 138.00 1.73

Shenyang Fangda Real Estate Development Co., Ltd.

Accounts receivable 41,800.00 4,380.64 44,000.00 1,249.83 Co., Ltd. Tiexi Branch

Shenyang Beixiang Aviation Technology Co., Ltd.

Accounts receivable 1,958,093.02 16,056.36 3,155,628.80 89,636.36Company

Liaoning Fangda General Hospital Co., Ltd.

Accounts receivable 25,313,131.86 678,237.31 19,711,893.06 105,537.48 Division

Liaoning Fangda New City Real Estate Co., Ltd.

Accounts receivable 18,339,463.83 150,383.61 8,413,056.46 238,974.81Company

Liaoning Dadetang Traditional Chinese Medicine Co., Ltd.

Accounts receivable 100.00 1.65 Company

Jinzhou Liaoxi Sinopharm Chain Co., Ltd.

Accounts receivable 824.80 11.71 14,159.00 233.19

company

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Huludao Centennial Donghetang Medicine

Accounts receivable Xingcheng City Housing Chain Co., Ltd. 22,024.20 103.51 41,215.50 211.42 Traditional Chinese Medicine Clinic

Huludao Centennial Donghetang Medicine

Accounts receivable Suizhong County of Fang Chain Co., Ltd. 12,324.20 63.22 Integrated Traditional Chinese and Western Medicine Clinic

Huludao Centennial Donghetang Medicine

Accounts receivable Fangshan Chain Co., Ltd. Lianshan District 198,830.80 934.50 270,754.60 1,388.88 Traditional Chinese Medicine Clinic

Huludao Centennial Donghetang Medicine

Accounts receivable 427,953.20 6,076.94 0.01

Housing Chain Co., Ltd.

Hainan Shangpinyigou e-commerce

Accounts receivable 10,209.54 127.62 Co., Ltd.

Hainan HNA Aviation Information System

Accounts receivable 306,261.00 826.90 118,624.00 1,482.80

Ltd.

Accounts receivable HNA Aviation Technology Co., Ltd. 4,360.00 35.75

HNA Aviation Technology (Yunnan)

Accounts receivable 630.00 5.17

limited liability company

HNA Aviation Technology (Tianjin)

Accounts receivable 360.00 2.95

limited liability company

Accounts receivable Fuzhou Airlines Co., Ltd. 2,090.00 5.64 1,641.00 20.51

Fangkang (Chongqing) Medical Supplies

Accounts receivable

Ltd.

Grand China Aircraft Maintenance Service has

Accounts receivable 800.00 6.56

Ltd.

Accounts receivable Beijing Capital Airlines Co., Ltd. 14,684.00 183.55 Accounts receivable Northern Heavy Industries Group Co., Ltd. 1,440.00 3.89 78,667.18 2,255.11 Contract assets Yingkou Fangda Hospital Co., Ltd. 568,089.11 5,121.73 4,797.02 24.61

Shenyang Fangda Real Estate Development Co., Ltd.

Contract assets 2,200.00 18.04

Co., Ltd. Tiexi Branch

Shenyang Beixiang Aviation Technology Co., Ltd.

Contract assets 1,179,901.86 9,675.20

company

Fangkang (Chongqing) Medical Supplies

Contract assets 11,681.23 95.79

Ltd.

Contract assets Northern Heavy Industries Group Co., Ltd. 12,293.87 100.81

Chengdu Fangda Carbon Composite Materials

Other receivables 200,500.00 4,010.00

Co., Ltd.

Other receivables Fushun Carbon Co., Ltd. 8,000.00 160.00

Shenyang Beixiang Aviation Technology Co., Ltd.

Other receivables 6,000.00 600.00 6,000.00 120.00Company

Shenyang Fangdi Real Estate Co., Ltd.

Other receivables 141,193.95 6,119.40 121,942.95 2,438.86 Hunnan Branch

Jinzhou Liaoxi Sinopharm Chain Co., Ltd.

Other receivables 455,581.05 9,111.62 493,119.26 9,862.39Company

Liaoning Fangda General Hospital Co., Ltd.

Other receivables 1,911,437.10 170,843.03 1,679,382.60 33,587.65 Division

Beijing Xinhua Shunhang Conference and Exhibition

Other receivables 20,000.00 400.00

Services Ltd.

(2) Items payable

Unit: Yuan

Project name Related party Book balance at the end of the period Book balance at the beginning of the period Accounts payable Beijing Dingcheng Peptide Source Bioinformation Technology Co., Ltd. 88,019.00 Accounts payable Beijing Jundao Technology Development Co., Ltd. 15,000.00 Accounts payable Northern Heavy Industries Group Co., Ltd. 2,249,784.89

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Accounts payable Liaoning Fangda General Hospital Co., Ltd. 98.00

Accounts payable Liaoning Fangda Group International Trade Co., Ltd. 11.84 11.84 Accounts payable Huludao Hengda Medical Equipment Trading Co., Ltd. 6,031,527.55 4,933,255.26 Accounts payable Huludao Zhuoda Medical Equipment Trading Co., Ltd. 6,950,998.48 2,127,368.68 Other payables Yingkou Fangda Hospital Co., Ltd. 7,633,345.99 4,617,097.11 Other payables ZTE-Shenyang Commercial Building (Group) Co., Ltd. 35,000.00 38,187.00 Other payables Dongxiang Autonomous County Xiyuhang Clothing Co., Ltd. 25,992.00 25,992.00 Other payables Liaoning Fangda General Hospital Co., Ltd. 136,402.00 Contract liabilities Beijing Fangda Carbon Technology Co., Ltd. 10,012.60

Contract liabilities Liaoning Fangda General Hospital Co., Ltd. 12,725.66

Contract liabilities Northern Heavy Industries Group Co., Ltd. 56,217.70

Contract liabilities Fangkang (Chongqing) Medical Supplies Co., Ltd. 670.25

Contract liabilities Jinzhou Liaoxi Sinopharm Chain Co., Ltd. 40.97 96.30 Contract liabilities Suizhong County Donghetang Integrated Traditional Chinese and Western Medicine Clinic Co., Ltd. 112.62 127.26 Other non-current liabilities Beijing Jundao Technology Development Co., Ltd. 112,807,406.83 185,229,670.57

Related party commitments

As of December 31, 2025, the Company has no related party commitments that should be disclosed.

Others

15. Share-based payment

Overall situation of share-based payment

Applicable □Not applicable

Unit: Yuan Granted in this period Exercised in this period Unlocked in this period Expired in this period

Category of Awarded Objects Number of Gold Number of Gold

Quantity Amount Quantity Amount

amount amount amount amount

core managers, core

4,560,000.00 12,384,960.00 2,925,000.00 7,944,300.00Technical (business) backbone

Total 4,560,000.00 12,384,960.00 2,925,000.00 7,944,300.00 Stock options or other equity instruments outstanding at the end of the period

□Applicable Not applicable

Other notes:

Equity-settled share-based payment

Applicable □Not applicable

Unit: Yuan Method for determining the fair value of equity instruments on the grant date Closing price of the stock on the grant date

Important parameters of fair value of equity instruments on grant date Not applicable

Basis for determining the number of exercisable equity instruments Number of new shares confirmed by the board of directors

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Reasons for significant differences between the current period’s estimate and the previous period’s estimate No major difference

The cumulative amount of equity-settled share-based payment included in capital reserves 202,027,220.00 Total expenses recognized for equity-settled share-based payment in the current period -2,231,000.00 Other notes:

Share-based payment settled in cash

□Applicable Not applicable

Share-based payment expenses for this period

Applicable □Not applicable

Unit: Yuan

Category of Granted Object Equity-settled share-based payment expenses Cash-settled share-based payment expenses Core management personnel and core technology (business) backbones -2,231,000.00

Total -2,231,000.00

Other notes:

Modification and termination of share-based payment
Others

16. Commitments and contingencies

Important commitments

Important commitments existing at the balance sheet date

As of December 31, 2025, the Company has no important commitments that should be disclosed.

Contingent matters

(1) Important contingencies existing on the balance sheet date

As of December 31, 2025, the Company has important pending litigations as follows:

Target amount

Plaintiff Defendant Cause of action Court accepting the case Progress of the case (10,000 yuan)

Inner Mongolia Autonomy

Shuangqingnong, Hainan District, Wuhai City, the first instance verdict was that the defendant should pay the plaintiff

Northeast Pharmaceutical Group Wuhai City, Hai District

Animal Husbandry Development Co., Ltd. Contract dispute 32.7000 16.350 million yuan, the company has

Limited Company Southern District People's Law

Division appealed.

hospital

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

After the final hearing of the second instance, both parties submitted claims transfer disputes to Liaoning Yihua Industrial Co., Ltd. Northeast Pharmaceutical Group, Liaoning Province Senior

33,007.72 The Supreme People's Court applied for re-judgment Co., Ltd. People's Court

Tried, but were dismissed.

The first-instance verdict rejected the plaintiff's request for autonomy in Inner Mongolia; the second-instance verdict was changed to the verdict that the defendant should pay the plaintiff 27.925 million yuan in Wuhai City, Beijing Huade Parking Lot Management Northeast Pharmaceutical Group District. Contract disputes 8,756.73

Co., Ltd. Southern District People's Law Both parties applied to the Inner Mongolia Higher People's Court for a retrial application, which has been rejected.

The first instance verdict was that the defendant lost the case; Shenyang, Liaoning Province

Hebei Construction Group Co., Ltd. Northeast Pharmaceutical Group Construction Engineering Company filed a lawsuit against the judgment and has filed for listing Intermediate People's 2,261.87

Co., Ltd., a joint-stock company, a labor contract dispute, and the second instance has not yet been heard by the court.

reason.

The first instance verdict found that the defendant repurchased nine people from Shenyang, Liaoning Province at a price of 2.6 million yuan per share.

Equity repurchase guarantees the equity held by each party. Shenyang Dongrui Precision Economic and Technological Development

Tan Minjuan and other nine natural persons disputed (nine cases 7,261.41 The second instance judgment dismissed the appeal, Chemical Co., Ltd. issued the District People’s Law

case) the original judgment is upheld.

hospital

The company has applied to the Liaoning Provincial Higher People's Court for retrial.

(2) If the company has no important contingencies that need to be disclosed, this should also be explained.

The company has no important contingencies that need to be disclosed.

Others

17. Events after the balance sheet date

Important non-adjustment matters

Unit: Yuan Impact on financial condition and results of operations

Item Contents Number of causes whose impact cannot be estimated

Profit distribution

The number of dividends to be distributed per 10 shares (yuan) 0.55 The number of dividends to be distributed per 10 shares (shares) 0 The number of dividends to be distributed per 10 shares (shares) 0 The number of dividends to be distributed per 10 shares (yuan) after review and approval 0.55 The number of dividends to be distributed per 10 shares (shares) 0

The full text of Northeast Pharmaceutical Group Co., Ltd.'s 2025 annual report has been reviewed and approved. The number of shares issued per 10 shares (shares) 0 The profit distribution plan for 2025, which was reviewed and approved at the 10th meeting of the company's 10th board of directors, is: based on the company's total share capital of 1,427,088,265 shares at the end of the reporting period, the profit distribution plan

A cash dividend of 0.55 yuan (tax included) will be distributed to all shareholders for every 10 shares. No bonus shares will be given, and public reserves will not be converted into share capital.

Sales return
Description of other post-balance sheet events

18. Other important matters

Correction of accounting errors in the previous period

(1) Retrospective restatement method

Unit: Yuan

Affected comparison period reports

Contents of accounting error correction Processing procedures Cumulative impact number

Project name

(2) Prospective applicable law

Contents of correction of accounting errors Approval process Reasons for adopting prospective application

Debt restructuring
Asset replacement

(1) Non-monetary asset exchange

(2) Other asset swaps

Annuity plan
Termination of operations

Unit: Yuan

Items Attributable to Parent Revenue Expenses Total Profit Income Tax Expense Net Profit Termination of Owner

Other explanations of operating profit:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Branch information

(1) Determination basis and accounting policies of reporting segments

(2) Financial information of reporting segments

Unit: Yuan

Item Inter-segment elimination Total

(3) If the company has no reportable segments, or cannot disclose the total assets and total liabilities of each reportable segment, the reasons should be explained

(4) Other instructions

Other important transactions and matters that have an impact on investors’ decision-making
Others

As of the date when the financial report is approved for issuance, the Company has no other important matters that should be disclosed.

19. Notes on main items of the parent company’s financial statements

Accounts receivable

(1) Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 40,989,935.55 46,469,174.47 1 to 2 years 18,035,474.52 8,014,915.27 2 to 3 years 6,113,013.76 20,667,617.42 More than 3 years 158,475,329.38 145,561,705.15 3 to 4 years 20,361,488.68 7,603,958.74 4 to 5 years 7,501,507.28 11,680,665.05 More than 5 years 130,612,333.42 126,277,081.36

Total 223,613,753.21 220,713,412.31 (2) Classified disclosure based on bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

31,462, 31,462, 31,849, 31,849,

Bad provision 14.07% 100.00% 14.43% 100.00%

177.09 177.09 163.83 163.83

Account preparation

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

receivables

Accounts

its

Medium:

by combination

bad provision

192,151 81,194, 110,957 188,864 80,265, 108,598 Account provisions 85.93% 42.26% 85.57% 42.50%

,576.12 191.40 ,384.72 ,248.48 609.74 ,638.74 receivables

Accounts

its

Medium:

sea of receivables

37,987, 12,929, 25,058, 39,384, 12,358, 27,025, foreign enterprises 16.99% 34.03% 17.84% 31.38%

696.22 043.98 652.24 522.22 606.20 916.02Customers

Receivable country

6,176,1 6,174,2 1,928.3 6,176,1 6,110,8 65,309. Internal medicine 2.76% 99.97% 2.80% 98.94%

32.65 04.27 8 32.65 22.86 79 Organization

Receivables

Drug circulation 72,743, 62,090, 10,652, 66,414, 61,796, 4,617,9

32.53% 85.36% 30.09% 93.05%

and others 248.34 943.15 305.19 125.40 180.68 44.72Customers

Accounts receivable

75,244, 75,244, 76,889, 76,889, and the range is 33.65% 34.84%

498.91 498.91 468.21 468.21Related parties

223,613 112,656 110,957 220,713 112,114 108,598Total 100.00% 100.00%

,753.21 ,368.49 ,384.72 ,412.31 ,773.57 ,638.74 Provision for bad debts is made individually:

Unit: Yuan

Beginning balance Closing balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Shanghai Hanfei Biochemical Involves litigation, pre-payment

24,504,443.83 24,504,443.83 24,117,457.09 24,117,457.09 100.00%

Technology Co., Ltd. cannot recover Shanghai Zhiduo Xingshi and is involved in litigation.

7,344,720.00 7,344,720.00 7,344,720.00 7,344,720.00 100.00%

Industrial Co., Ltd. The plan cannot be recovered

Total 31,849,163.83 31,849,163.83 31,462,177.09 31,462,177.09

Provision for bad debts by portfolio: receivable from overseas corporate customers

Unit: Yuan

Ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 23,952,449.40 280,243.64 1.17% 1-2 years (including 2 years) 1,292,475.63 572,308.21 44.28% 2-3 years (including 3 years) 2,093,594.73 1,582,757.62 75.60% 3-4 years (including 4 years) 1,635,748.20 1,498,181.78 91.59% 4-5 years (including 5 years) 726,647.73 708,772.20 97.54% More than 5 years 8,286,780.53 8,286,780.53 100.00%

Total 37,987,696.22 12,929,043.98

Description of what this combination is based on:

Provision for bad debts by combination: _receivable from domestic medical institutions

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Ending balance

Name

Book balance Bad debt provision Provision ratio

4-5 years (including 5 years) 22,089.20 20,160.82 91.27% More than 5 years 6,154,043.45 6,154,043.45 100.00%

Total 6,176,132.65 6,174,204.27

Description of what this combination is based on:

Provision for bad debts by portfolio: receivables from pharmaceutical circulation and other customers

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 11,136,857.91 498,931.23 4.48% 1-2 years (including 2 years) 19,843.40 15,676.29 79.00% 2-3 years (including 3 years) 128,783.20 119,884.28 93.09% 3-4 years (including 4 years) 452,579.00 451,266.52 99.71% 4-5 years (including 5 years) 154,230.30 154,230.30 100.00% More than 5 years 60,850,954.53 60,850,954.53 100.00%

Total 72,743,248.34 62,090,943.15

Description of what this combination is based on:

Provision for bad debts on a group basis: receivables from related parties within the scope of consolidation

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 5,900,628.24

1-2 years (including 2 years) 16,723,155.49

2-3 years (including 3 years) 3,890,635.83

3-4 years (including 4 years) 18,273,161.48

4-5 years (including 5 years) 6,598,540.05

More than 5 years 23,858,377.82

Total 75,244,498.91

Description of what this combination is based on:

If bad debt provisions for accounts receivable are made according to the general expected credit loss model:

□Applicable Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off Others

Provision for bad debts 112,114,773.57 928,581.66 386,986.74 112,656,368.49

Total 112,114,773.57 928,581.66 386,986.74 112,656,368.49 Full text of the 2025 Annual Report of Northeast Pharmaceutical Group Co., Ltd.

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Unit: Yuan Name of the unit that determines the original bad debt provision accrual ratio Amount recovered or reversed Reason for reversed Method of recovery

The basis and rationality of the company's reporting period did not include any accounts receivable with significant amounts recovered or reversed.

(4) Accounts receivable actually written off in the current period

Unit: yuan item write-off amount

Important write-offs of accounts receivable:

Unit: Yuan Whether the amount is paid by the name of the related unit Nature of accounts receivable Amount of write-off Reason for write-off The write-off procedures performed

transaction generated

Instructions for writing off accounts receivable:

There are no accounts receivable actually written off in this period.

(5) Accounts receivable and contract assets with the top five closing balances collected by debtors

Unit: Yuan accounts receivable and combined accounts receivable, bad debts, quasi-accounts receivable, ending balance, contract assets, accounts receivable and contracts

Unit name Closing balance of same assets Provision and contract asset reduction Closing balance Closing balance of assets

Proportion of total value Preparation ending balance Shenyang Northeast Pharmaceutical Import and Export Trade

32,034,234.21 32,034,234.21 14.33%

Ltd.

Shenyang Northeast Pharmaceutical Equipment Manufacturing Company

29,732,657.79 29,732,657.79 13.30%

Decoration Co., Ltd.

Shanghai Hanfei Biochemical Technology Co., Ltd.

24,117,457.09 24,117,457.09 10.79% 24,117,457.09 Division

Shenyang Zhongnuo Pharmaceutical Co., Ltd. 8,166,987.20 8,166,987.20 3.65%

Shanghai Zhiduoxing Industrial Co., Ltd. 7,344,720.00 7,344,720.00 3.28% 7,344,720.00Total 101,396,056.29 101,396,056.29 45.35% 31,462,177.09

Other receivables

Unit: Yuan Item Ending balance Beginning balance

Dividends receivable 571,116.42 571,116.42 Other receivables 1,018,023,208.32 856,818,820.54 Total 1,018,594,324.74 857,389,936.96

(1) Interest receivable

Classification of interest receivable

Unit: Yuan Item Ending balance Beginning balance

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Important overdue interest

Unit: Yuan Whether impairment occurs and the borrowing unit is judged. Ending balance Overdue time Reason for overdue

Judgment basis

Other notes:

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Other notes:

Interest receivable actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off of interest receivable

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

transaction generated

Write-off instructions:

Other notes:

(2) Dividends receivable

Classification of dividends receivable

Unit: yuan project (or invested unit) Closing balance Opening balance

Shanghai Dongyao Hanfei Enterprise Development Co., Ltd. 571,116.42 571,116.42 Total 571,116.42 571,116.42

Important dividends receivable aged more than 1 year

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Project (or investee) Closing balance Aging Reason for non-recovery Whether impairment occurs and the basis for judgment

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Unit: Yuan Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or reversal Write-off or write-off Other changes

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Unit: Yuan Name of the unit that determines the original bad debt provision accrual ratio Amount recovered or reversed Reason for reversed Method of recovery

Other explanations of the basis and rationality:

Dividends receivable actually written off in the current period

Unit: Yuan

Item Write-off Amount

Among them, the important write-off of dividends receivable

Unit: Whether the yuan amount is paid by the name of the related unit, nature of the amount, write-off amount, write-off reason, write-off procedures performed

Instructions for writing off transactions:

Other notes:

(3) Other receivables

Classification of other receivables according to nature of payment

Unit: Yuan

Nature of payment Book balance at the end of the period Book balance at the beginning of the period

Accounts receivable from government agencies 155,699,853.27 154,867,653.27 Deposits and guarantees receivable 3,955,304.40 4,317,256.57 Receivables from related parties in the consolidated scope 871,338,609.89 700,706,690.86 Reserve funds receivable and others 133,733,617.52 139,891,617.83

Total 1,164,727,385.08 999,783,218.53

Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 198,908,492.62 463,308,363.58 1 to 2 years 447,168,729.52 154,806,242.45

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

2 to 3 years 154,765,548.79 143,384,724.54 More than 3 years 363,884,614.15 238,283,887.96 3 to 4 years 135,473,813.85 13,115,218.38 4 to 5 years 3,661,745.41 663,363.46 More than 5 years 224,749,054.89 224,505,306.12

Total 1,164,727,385.08 999,783,218.53

Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

62,607, 62,607, 62,997, 62,997,

Bad provision 5.38% 100.00% 6.30% 100.00%

604.10 604.10 604.10 604.10

Account preparation

its

Medium:

By combination 1,102,1 1,018,0

84,096, 936,785 79,966, 856,818 Bad provision 19,780. 94.62% 7.63% 23,208. 93.70% 8.54%

572.66,614.43 793.89,820.54Account preparation 98 32

its

Medium:

Accounts Receivable

155,699 11,677, 144,022 154,867 7,525,1 147,342 Government agencies 13.36% 7.50% 15.49% 4.86%

,853.27 489.00 ,364.27 ,653.27 23.22 ,530.05 amount

Deposit receivable

3,955,3 3,878,6 76,681. 4,317,2 4,231,4 85,850. Jinhebao 0.34% 98.06% 0.43% 98.01%

04.40 22.49 91 56.57 06.49 08Certificate Fund

Accounts receivable

871,338 871,338 700,706 700,706 and range 74.81% 70.09%

,609.89 ,609.89 ,690.86 ,690.86 Related parties

Accounts receivable

71,126, 68,540, 2,585,5 76,894, 68,210, 8,683,7 gold and 6.11% 96.36% 7.69% 88.71%

013.42 461.17 52.25 013.73 264.18 49.55Others

1,164,7 1,018,0

146,704 999,783 142,964 856,818Total 27,385. 100.00% 23,208. 100.00%

,176.76 ,218.53 ,397.99 ,820.54

08 32

Provision for bad debts is made individually:

Unit: Yuan

Beginning balance Closing balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Shenyang Dongyao Keda 58,709,304.1 58,709,304.1 58,709,304.1 58,709,304.1

100.00% Expected to be unrecoverable Pharmaceutical Co., Ltd. 0 0 0 0

Hunan Tiancheng Biochemical

2,088,300.00 2,088,300.00 1,698,300.00 1,698,300.00 100.00% Expected to be unrecoverable Technology Co., Ltd.

Beijing China Police Huishang

Digital Technology Co., Ltd. 2,200,000.00 2,200,000.00 2,200,000.00 2,200,000.00 100.00% It is expected that the company cannot be recovered

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

62,997,604.1 62,997,604.1 62,607,604.1 62,607,604.1

total

0 0 0 0

Provision for bad debts by group: Amounts receivable from government agencies

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 832,200.00 62,415.00 7.50% 3-4 years (including 4 years) 129,816,653.27 9,736,249.00 7.50% More than 5 years 25,051,000.00 1,878,825.00 7.50%

Total 155,699,853.27 11,677,489.00

Description of what this combination is based on:

Provision for bad debts by combination: deposits receivable and margins

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

1-2 years (including 2 years) 85,202.12 8,520.21 10.00% More than 5 years 3,870,102.28 3,870,102.28 100.00%

Total 3,955,304.40 3,878,622.49

Description of what this combination is based on:

Provision for bad debts on a group basis: receivables from related parties within the scope of consolidation

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 196,537,681.10

1-2 years (including 2 years) 445,916,528.51

2-3 years (including 3 years) 154,745,548.79

3-4 years (including 4 years) 3,431,791.06

4-5 years (including 5 years) 3,658,099.41

More than 5 years 67,048,961.02

Total 871,338,609.89

Description of what this combination is based on:

Provision for bad debts by portfolio: reserves receivable and others

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year (including 1 year) 1,538,611.52 30,772.23 2.00% 1-2 years (including 2 years) 1,166,998.89 116,699.89 10.00% 2-3 years (including 3 years) 20,000.00 6,000.00 30.00% 3-4 years (including 4 years) 25,369.52 12,684.76 50.00% 4-5 years (including 5 years) 3,646.00 2,916.80 80.00% More than 5 years 68,371,387.49 68,371,387.49 100.00%

Total 71,126,013.42 68,540,461.17

Description of what this combination is based on:

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

The first stage The second stage The third stage

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

loss (credit impairment has not occurred)

loss

with impairment) value)

Balance on January 1, 2025 79,966,793.89 62,997,604.10 142,964,397.99 Balance on January 1, 2025

This issue

Provision for the current period 4,129,778.77 4,129,778.77 Reversal for the current period 390,000.00 390,000.00 Balance on December 31, 2025 84,096,572.66 62,607,604.10 146,704,176.76 Basis for dividing each stage and provision ratio for bad debts

Changes in book balances with significant changes in loss provision during the current period

□Applicable Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Opening balance Write-off or Ending balance accrual Recovery or transfer Others

Write off

Provision for bad debts 142,964,397.99 4,129,778.77 390,000.00 146,704,176.76

Total 142,964,397.99 4,129,778.77 390,000.00 146,704,176.76 Among them, the amount of bad debt provision reversed or recovered in the current period is important:

Unit: Yuan Determine the name of the original bad debt provision accrual unit, the amount recovered or reversed, the reason for the reverse, the method of recovery, the basis for the ratio and its reasonableness

sex

The company has no other receivables with significant amounts recovered or reversed during the reporting period.

Other receivables actually written off in the current period

Unit: Yuan

Item Write-off Amount

Important write-offs of other receivables:

Unit: Whether the Yuan amount is paid by the related unit. Nature of other receivables. Write-off amount. Reason for write-off. Write-off procedures performed.

Instructions for writing off other receivables arising from transactions:

There are no other receivables actually written off in this period.

Other receivables with the top five closing balances based on debtors

Unit: Yuan

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Accounting for other receivables

Unit name Nature of payment Closing balance Aging of accounts Total closing balances Closing balance of bad debt provision

proportion of numbers

Beijing Dingcheng Peptide Source

Current accounts 420,394,419.01 Within 1 year, 1-2 years 36.09%

Material Technology Co., Ltd.

Northeast Pharmaceutical Group provides within 1 year, 1-2 years, 2-

Current accounts 309,097,467.08 26.54%

Sales Co., Ltd. 3 years

Northeast Pharmaceutical Group Liaoning

1-2 years, 2-3 years, 3-4

Ning Biopharmaceutical Co., Ltd. Current account 70,956,246.53 6.09%

Years, 4-5 years, more than 5 years

company

Shenyang Northeast Pharmaceutical Equipment Within 1 year, 1-2 years, 2-

Current accounts 63,194,796.68 5.43%

Planning Co., Ltd. 3 years, 3-4 years

Tiexi District, Shenyang City

Within 1 year, 3-4 years, 5

Municipal renewal affairs service demolition compensation 155,648,853.27 13.36% 11,673,664.00

years and above

Center

Total 1,019,291,782.57 87.51% 11,673,664.00

Presented in other receivables due to centralized management of funds

Unit: Yuan Other instructions:

Long-term equity investment

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

1,176,938,59 1,176,938,59 1,133,989,10 1,133,989,10 Investment in subsidiaries

5.20 5.20 4.53 4.53 For joint ventures and joint ventures

1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00Corporate investment

1,178,438,59 1,176,938,59 1,135,489,10 1,133,989,10Total 1,500,000.00 1,500,000.00

5.20 5.20 4.53 4.53

(1) Investment in subsidiaries

Unit: Yuan

Balance at the beginning of the period Changes in increases and decreases during the period Ending balance of invested orders Impairment provision Impairment provision (book price Impairment provision (book price) Opening balance Additional investment Decrease in investment Others Closing balance

Value) Preparation Value) Shenyang Dongrui

767,236.9 767,236.9Fine chemicals

0 0 Ltd.

Northeast Pharmaceutical

Group Shenyang 80,000,00 80,000,00First Pharmaceutical 0.00 0.00Co., Ltd.

Northeast Pharmaceutical

49,770,03 49,770,03Group sales

7.94 7.94 Ltd.

Northeast Pharmaceutical 200,000,0 20,000.00 199,980,0

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Group Supply and Marketing 00.00 00.00 Co., Ltd.

Northeast Shenyang

Pharmacy Company 68,457,92 68,457,92 Lock Co., Ltd. 6.26 6.26 Company

Northeast Shenyang

Pharmaceutical import and export 50,000,00 49,995,00

5,000.00

Export trade has 0.00 0.00 Co., Ltd.

Shanghai Oriental Medicine

Hanfei Enterprise 4,800,000 4,800,000 Development Co., Ltd. .00 .00 Company

Northeast Pharmaceutical

Group Liaoning 56,345,62 56,345,62 Biomedicine 5.00 5.00 Co., Ltd.

Northeast Shenyang

Pharmaceutical equipment 125,000,0 124,987,5

12,500.00

Manufacturing and Installation 00.00 00.00 Ltd.

Northeast Shenyang

3,000,000 2,999,700Pharmaceutical design 300.00

.00 .00 LIMITED.

Shenyang million

6,539,256 6,538,602 Transportation Limited 653.93

.21 .28Company

Northeast Pharmaceutical

Group Shenyang 20,000,00 20,000,00Yunchuang Technology 0.00 0.00Co., Ltd.

Shanghai Yidong

Investment partnership 190,000,0 190,000,0 Enterprise (with 00.00 00.00 limited partnership)

Northeast Pharmaceutical

(Shanghai) 92,554,00 43,000,00 135,541,9

12,055.40

Biotechnology 0.00 0.00 44.60 Ltd.

Beijing Dingcheng

Peptide Source Biotechnology 186,755,0 186,755,0 Technology Co., Ltd. 22.22 22.22 Company

1,133,989 43,000,00 1,176,938 Total 50,509.33

,104.53 0.00 ,595.20

(2) Investment in associates and joint ventures

Unit: Yuan

Increases and decreases in the current period

Beginning of period End of period

Impairment Impairment Investment Balance Equity Other Declaration Balance Capital Statement (Account Provision Addition Decrease Comprehensive Other Disbursement Provision (Account Provision Position Face Price Beginning Investment Investment Recognition Income Equity Cash Impairment Others Face Price Closing Value) Balance Investment Adjustment Change Dividend Provision Value) Balance

capital loss or profit

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

profit

1. Joint ventures

2. Joint ventures

1,500 1,500 gross

,000. ,000.Qius

00 00 1,500 1,500 Subtotal ,000. ,000.

00 00 1,500 1,500Total ,000. ,000.

00 00The recoverable amount is determined based on the net amount of fair value minus disposal costs.

□Applicable Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

(3) Other instructions

Operating income and operating costs

Unit: Yuan

Amount for the current period Amount for the previous period

Project

revenue cost revenue cost

Main business 1,579,921,967.10 946,336,291.17 1,825,021,036.01 1,083,938,549.54 Other businesses 216,024,764.77 80,157,308.15 256,359,762.48 98,106,631.57 Total 1,795,946,731.87 1,026,493,599.32 2,081,380,798.49 1,182,045,181.11 Decomposition information of operating income and operating costs:

Unit: Yuan

Division 1 Division 2 Total

Contract classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

According to place of business

Distinguish classification

Among them:

market or customer

Household type

Among them:

Contract type

Among them:

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Transfer by product

give time

Classification

Among them:

According to contract period

Limited classification

Among them:

According to sales channel

Road classification

Among them:

total

Information related to performance obligations:

The company's pre-payments, the company's performance obligations, and the important payment terms. The company's commitment to transfer is the main responsibility.

The item will be refunded to the customer during the period. The type and time of the quantity guarantee. The nature of the goods. Anyone.

Account’s money and other explanations of related obligations

Information related to the transaction price allocated to the remaining performance obligations:

Major contract changes or major transaction price adjustments

Unit: Yuan Item Accounting treatment method Amount of impact on income

Other notes:

Investment income

Unit: Yuan Item Amount of the current period Amount of the previous period

Investment income from trading financial assets during the holding period 2,678,471.91

Income from debt restructuring 3,213,850.15 2,717,565.51 Others -6,260.99

Total 5,886,061.07 2,717,565.51

Others

20. Supplementary information

Detailed statement of non-recurring profits and losses for the current period

Applicable □Not applicable

Unit: Yuan Item Amount Description Profit and loss from disposal of non-current assets 1,053,748.63

Full text of Northeast Pharmaceutical Group Co., Ltd. 2025 Annual Report

Government subsidies included in current profits and losses (closely related to the company's normal business operations and in compliance with national policies and regulations,

70,848,186.39 (Except for government subsidies that are enjoyed according to determined standards and have a lasting impact on the company’s profits and losses)

In addition to effective hedging business related to the company's normal business operations, non-financial enterprises hold financial assets and

350,622.31 Gains and losses from changes in fair value of financial liabilities and gains and losses from the disposal of financial assets and financial liabilities

Reversal of impairment provision for accounts receivable that were separately tested for impairment 776,986.74 Profit and loss from debt restructuring 6,606,190.88 Other non-operating income and expenses other than the above items -9,646,726.38 Less: Amount of income tax impact 13,404,339.27 Amount of impact on minority shareholders’ equity (after tax) 562,915.27

Total 56,021,754.03 --Details of other profit and loss items that meet the definition of non-recurring profits and losses:

□Applicable Not applicable

The company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.

□Applicable Not applicable

Return on net assets and earnings per share

earnings per share

Profit for the reporting period Weighted average return on equity

Basic earnings per share (yuan/share) Diluted earnings per share (yuan/share) Net profit attributable to the company's ordinary shareholders 4.77% 0.18 0.18 After deducting non-recurring gains and losses, net profit attributable to the company's ordinary shareholders

3.74% 0.14 0.14 Net profit of common shareholders

Differences in accounting data under domestic and foreign accounting standards

(1) Differences in net profit and net assets in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards

□Applicable Not applicable

(2) Differences in net profit and net assets in financial reports disclosed in accordance with both foreign accounting standards and Chinese accounting standards

□Applicable Not applicable

(3) Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standards. If differences are adjusted for data that have been audited by an overseas audit institution, the name of the overseas institution should be indicated.

Others

Northeast Pharmaceutical Group Co., Ltd. Board of Directors

April 3, 2026