/Baheal Pharmaceutical: 2025 Annual Report

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Baheal Pharmaceutical: 2025 Annual Report

Shenzhen Stock Exchange

2026/04/29

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 Annual Report Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 Annual Report

April 2026

Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report Full Text 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.

Fu Gang, the person in charge of the company, Li Zhen, the person in charge of accounting work, and Liu Feng, 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.

If there are forward-looking statements such as future plans in this report, they 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.

During its operations, the company faces concentration risks in brand operations, drug quality risks, policy risks, intensified market competition risks, R&D and commercialization risks, etc. For details, please see "11. Prospects for the Company's Future Development" in "Section 3 Management Discussion and Analysis" of this report. Investors are kindly requested to pay attention and be aware of investment risks.

The company's profit distribution plan reviewed and approved by the board of directors this time is: based on 525,624,077 shares, a cash dividend of 5.71 yuan (tax included) will be distributed to all shareholders for every 10 shares, 0 bonus shares (tax included) will be issued, and capital reserve funds will be transferred to all shareholders to increase 0 shares for every 10 shares.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Section 2 Company Profile and Main Financial Indicators

1. Company information

Stock abbreviation Baiyang Pharmaceutical Stock code 301015 Company’s Chinese name Qingdao Baiyang Pharmaceutical Co., Ltd.

The company’s Chinese abbreviation: Baiyang Pharmaceutical

The company’s foreign name (if any) Qingdao Baheal Medical INC.

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

The legal representative of the company Fu Gang

Registered address Building 1, No. 88, Tongbai Road, Shibei District, Qingdao City, Shandong Province

Postal code of registered address 266042

In September 2024, the company's registered address was changed from "No. 88, Kaifeng Road, Shibei District, Qingdao City, Shandong Province" to "Historical changes in the company's registered address in Shandong Province"

Building 1, No. 88, Tongbai Road, Shibei District, Qingdao City”

Office address Building 1, No. 88, Tongbai Road, Shibei District, Qingdao City, Shandong Province

Postal code for office address 266042

Company website http://www.baheal.cn

Email [email protected]

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Li Zhen Liu Nina

Contact address Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province Tel 0532-66756688 0532-66756688 Fax 0532-67773768 0532-67773768 Email [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 News", "Shanghai Securities News", "Securities Daily", "Securities Times" The name and website of the media where the company discloses its annual report

Juchao Information Network: www.cninfo.com.cn Company annual report preparation location: Company Securities Department

4. Other relevant information

Accounting firm hired by the company

Name of the accounting firm: Lixin Accounting Firm (Special General Partnership) Accounting firm Office address: Fourth floor, No. 61, Nanjing East Road, Huangpu District, Shanghai Name of the signing accountant: Wang Na, Wang Yi

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

Applicable □Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Name of the sponsoring institution Office address of the sponsoring institution Name of the sponsoring representative Period of continuous supervision

No. 5 Financial Street, Xicheng District, Beijing June 30, 2021-2025 Dongxing Securities Co., Ltd. Zhu Haizhou, Yao Wei

(Xinsheng Building) 12th and 15th floors December 31

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

□Applicable Not applicable

5. 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) 7,506,514,889.15 8,094,458,068.74 -7.26% 8,255,997,671.62 Attributable to shareholders of the listed company

474,685,025.56 691,593,321.92 -31.36% Net profit of 712,060,934.38 (yuan)

Attributable to shareholders of listed companies

Net profit after deducting non-recurring gains and losses 396,268,333.63 655,947,072.73 -39.59% 634,532,333.41 (yuan)

Cash generated from operating activities

934,453,604.86 813,850,404.89 14.82% 799,495,015.44 Net flow (yuan)

Basic earnings per share (yuan/

0.90 1.32 -31.82% 1.36 shares)

Diluted earnings per share (yuan/

0.89 1.28 -30.47% 1.33 shares)

weighted average net asset income

20.77% 26.94% -6.17% 27.25% rate

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) 8,112,249,985.54 7,112,584,251.13 14.05% 6,417,479,982.09 Attributable to shareholders of the listed company

2,463,146,954.84 2,374,910,404.59 3.72% Net assets of 2,891,048,719.82 (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

6. Main financial indicators by quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter operating income 1,840,874,860.51 1,910,416,928.73 1,875,813,384.00 1,879,409,715.91 Attributable to shareholders of listed companies

85,012,813.37 78,122,864.24 313,293,281.78 -Net profit of 1,743,933.83

Attributable to shareholders of listed companies

Net profit after deducting non-recurring gains and losses 99,966,953.05 77,407,349.51 232,348,560.88 -13,454,529.81

Cash generated from operating activities 299,990,684.09 91,773,973.31 229,652,907.81 313,036,039.65 Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

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. 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 loss on disposal of non-current assets

The reporting period was mainly for the disposal of Lianyi (including accrued assets

14,692,349.55 5,412,991.33 20,594,798.99 Offset department of impairment provisions incurred by operating enterprise Wuweikang

investment income

points)

Government included in current profits and losses

Subsidy (normally related to the company’s

During the reporting period, it was mainly closely related to the subsidiary’s business operations, in line with the

Investment promotion incentives, subsidiary companies and national policies and regulations, according to

26,716,202.14 13,960,625.41 18,500,994.64 Promote economic enjoyment,

The development of special funds and subsidiaries will have continuous impact on the company’s profits and losses.

Except for government subsidies affected by the company’s special R&D subsidies

outside)

In addition to the normal business operations of the same company

effective hedging

In addition to value-added business, non-financial enterprises during the reporting period were mainly financial assets and gold stocks held by Zhongkang Holdings, Huahao Zhongtian, Beihai 75,408,351.41 8,058,406.90 649,279.14

The fair value of financial liabilities, gains and losses from changes in fair value of Kangcheng stock, and disposal gains and losses

Financial assets and financial liabilities

Profit and loss incurred

Discount included in current profit and loss

Funds collected by financial enterprises 1,122,027.77

Occupancy fee

Business combination under common control

The subsidiaries generated from the beginning of the period to 67,286,673.80 130,844,553.76

Net profit and loss for the current period on the date of merger

In addition to the above items, the reporting period mainly consisted of donations -13,291,202.60 -10,797,640.98 -14,536,242.29

Other non-operating income and expenses

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other non-recurring losses

1,000,163.62 440,772.58 3,314,912.98 Profit and loss items defined by loss

Less: Impact on income tax 18,827,198.51 2,655,969.43 3,901,841.26 Impact on minority shareholders’ equity

8,404,001.45 46,059,610.42 77,937,854.99 (after tax)

Total 78,416,691.93 35,646,249.19 77,528,600.97 --Details of other profit and loss items that meet the definition of non-recurring profits and losses:

Applicable □Not applicable

It is mainly the amount attributed to the company for items of associated enterprises that meet the definition of non-recurring gains 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 Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Section 3 Management Discussion and Analysis

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

(1) The company’s main business

As an industrial platform with innovative brand building capabilities, the company's core business focuses on product development, manufacturing and commercial operations of medical innovation results. Under the guidance of the innovative development strategy, the company has made in-depth deployment of innovative drugs and innovative medical devices, focusing on cutting-edge areas such as bone health, anti-organ fibrosis, tumor brain metastasis, and cardiovascular disease. Through investment, R&D transformation, and industrialization platform operations, the company has built a full-chain industrial ecosystem from source innovation to clinical implementation, and firmly promoted the company's transformation and upgrading into an innovative pharmaceutical company.

2025 is the final year of the company’s second ten-year plan and the beginning of the third ten-year plan. The company's first ten years were brand-driven. Relying on a professional brand management system, the company successfully incubated leading brands in categories such as Diqiao, Fuzhenghuayu, and Mite through in-depth insights into patient needs and clinical scenarios, and accumulated professional and efficient brand operation capabilities and a nationwide marketing network. The second decade was platform-driven. The company built a commercialization platform and reached cooperation with many leading domestic and foreign pharmaceutical companies to create a "brand highway" to help make high-quality products accessible and release brand value. As we enter our third decade, the company has launched an ecological innovation strategy, focusing on First-in-Class and the transformation of source innovation results, and investing in innovative projects that can truly optimize clinical scenarios.

In order to better undertake the transformation and industrialization of scientific research results, the company strategically acquired Baheal Pharmaceutical in 2024, extending the industrial chain to the production end, and building a R&D and production platform for natural drugs, drug reconstruction, and high-end sustained and controlled-release preparations. It uses its industrialization capabilities to empower the innovative transformation of pharmaceutical sources and accelerate the application of medical innovation results in clinical practice. In December 2025, the company's high-end manufacturing industrialization base was officially put into operation. The base is a precision radiotherapy equipment manufacturing center integrating R&D, production, testing, maintenance and training. It is also the global production center of ZAP Surgical Systems, Inc. in China. The world's leading precision radiotherapy equipment for brain tumors - ZAP-X Mars Ark Radiosurgery Robot (hereinafter referred to as "ZAP-X") will be mass-produced here to achieve "Made in China, Global Delivery".

Brand operation business is the core business of the company. It is not only the foundation of the company, but also the moat that ensures the company's steady development. It is also a powerful engine that drives the company's future value growth. Since its establishment, the company has always implemented an omni-channel commercial operation strategy: in OTC On the retail side, we have set an industry model with benchmark market performance. The company's flagship brand Diqiao has continuously consolidated its leadership position through category innovation and marketing innovation, ranking first in imported calcium. In recent years, it has launched a number of new liquid calcium products such as small yellow bars, small vermicelli, and small gold bars, which have quickly captured the minds of consumers. At the same time, the company's emerging brand Newtsuma has won market recognition with the professional quality of medical-grade protein supplements, entered a period of growth, and became the number one brand of imported pure whey protein sales. In the hospital channel, the success of core products such as Ganxianle (strengthening and removing blood stasis) and Mitex has verified the company's professional academic promotion capabilities. Taking Ganxianle as an example, relying on complete evidence-based medical evidence and significant efficacy, and with the continuous promotion of the "dual-antibody" concept of hepatitis B anti-viral and anti-fibrosis, Fuzheng Huayu products have always maintained a leading market share. With the continuous deepening of the "dual-antibody" concept, it is expected to open up a broader market space. As a company that specializes in marketing, the company keenly seizes the opportunities of every era - in the face of Generation Z and the wave of digitalization, the company actively deploys emerging online channels, forming a comprehensive layout on traditional e-commerce platforms such as Taobao, JD.com, and Pinduoduo, as well as interest-based e-commerce platforms such as Xiaohongshu and Douyin, and even instant e-commerce platforms such as Meituan, to promote continued brand growth.

While consolidating its own brand operations, the company is continuously advancing the research and development process of innovative projects and accelerating the clinical introduction of innovative products with high added value to create a second growth curve. In the field of bone health, the company has obtained the commercialization rights in mainland China for RAB001, a world's first-in-class innovative drug for the treatment of osteonecrosis from Zhongshan Lebo Ruichen Biopharmaceutical Co., Ltd. This product is currently undergoing Phase II clinical research. In the field of anti-organ fibrosis, the company strategically invested in Tianjin Jikun Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Jikun Pharmaceutical"), a platform for the research and development of innovative anti-organ fibrosis drugs and a natural drug modification platform, and locked in all the rights and interests of its Class 1 innovative drugs for the treatment of pulmonary fibrosis. The product JK1033 is currently undergoing Phase I clinical research. In the field of small nucleic acids, in March 2026, the company strategically invested in Sihe Gene (Beijing) Biotechnology Co., Ltd., the ASO small nucleic acid drug research and development platform, and obtained priority rights to the core rights and interests of relevant innovation projects. In the field of tumor brain metastasis, the company's investment in Beijing Huahao Zhongtian Biopharmaceutical Co., Ltd. (hereinafter referred to as "Huahao Zhongtian") is a new generation of microtubule inhibitor chemotherapy drug - Utideron, which has established differentiated clinical advantages in the treatment of brain metastasis from HER2-negative breast cancer by virtue of its unique blood-brain barrier penetration ability; brain tumor precision radiotherapy equipment - ZAP-X The Mars Ark radiosurgery robot has made a breakthrough in solving the pain points of edema caused by brain tumor surgery and the inability of drugs to cross the blood-brain barrier, and has overcome the global problem of brain metastases treatment. It has been approved in 26 countries and regions around the world and has treated more than 6,500 patients. It has now established 2 third-party radiotherapy centers in China; at the same time, the ZAP-X global production base built by the company in China has been officially opened. In addition, in terms of cooperation on innovative oncology drugs, the company’s commercialized cooperation product Technetium [99mTc] Perciret Plus Peptide Injection (99mTc-3PRGD2) has been approved for marketing in April 2026. This product is not only China’s first independently innovative nuclear medicine innovative drug developed independently, but also the world’s first broad-spectrum tumor imaging drug for SPECT imaging. In the field of innovative drugs for rare diseases, the company has accelerated the promotion of Gorinin®,

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The commercialization of the three core products of Hairesi® and Myribe®. In the field of cardiovascular diseases, the Cifu® VAD product of Suzhou Tongxin Medical Technology Co., Ltd. operated by the company is not only China's first fully magnetic levitation artificial heart with independent intellectual property rights, but also China's first and only active implantable medical device approved for clinical trials by the U.S. FDA.

At the new starting point of the third decade of development, the company continues to adhere to the corporate mission of “optimizing medical scenarios through technological innovation” and firmly promotes the strategic goals of “brand, innovation, and internationalization”. Relying on its profound industrialization accumulation, the company is accelerating the construction of a development model driven by technological innovation: on the one hand, it continues to strengthen the market position of its core brands and build a solid foundation for development; on the other hand, through strategic innovation investment, it promotes the introduction of innovative products into clinical and efficient transformation of reserve pipelines. Although the introduction of new products and investment in innovation will put the company under pressure to invest resources in the short term, as innovative results gradually enter clinical application, the company will achieve dual breakthroughs in medical scenario optimization and commercial value creation, creating greater value for patients and society.

Progress of major cooperative R&D projects (January 1, 2025 to announcement date)

Approval Progress Drug Name/Code Number Target/Mechanism Preclinical Research IND Approval Phase I Phase II Phase III NDA Launched

Gillentai-99mTc-

Approved for marketing αvβ3 auxiliary examination for regional lymph node metastasis in patients with suspected lung cancer

3PRGD2

Lai Bo Rui Chen -

Phase II clinical trial of bone modulators for the treatment of osteonecrosis

RAB001

Lai Bo Rui Chen -

Phase I clinical study of bone modulators for the treatment of osteoarthritis

RAB001d

Qingdao Ruisen RS-PPAR and other multi-target

Phase I clinical treatment of mixed hyperlipidemia

C1001 points

Gillentai-99mTc-

Phase I clinical HER2 screening for HER2-positive tumor patients to guide treatment

HP-Ark2

Ji Kun Medicine -

Phase I clinical multi-target effect in the treatment of idiopathic pulmonary fibrosis and progressive pulmonary fibrosis

JK1033

Ji Kun Medicine -

Phase I clinical FGFR solid tumors

JK0564

Phase I clinical trial of Sihegene-SG12 HBVmRNA in the treatment of chronic hepatitis B

Baiyang Pharmaceutical-NTB-

Phase I clinical trial of DprE1 in the treatment of refractory tuberculosis

3119M

Treat high expression

Gironde-177Lu-

Preclinical studies αvβ3 αvβ3 entities

AB-3PRGD2

tumor

Marketing progress Product name/code name Target/mechanism Type testing Clinical research

Apply

Ji Luntai -

Submit registration—tumor imaging diagnosis

SPECT/CT

Note: Some of the drugs listed in this table are still in the early stages of research and development and the company has only obtained commercial priority and transfer/licensing priority. The progress of R&D projects and commercialization value are uncertain.

(2) The company’s main business model

The company has established a complete organizational structure and has systems for research and development, production, procurement, and sales. The company's main operating income comes from the commercialization of medical and health products. Our main business models are as follows:

Investment conversion model

Based on insights into clinical scenarios and judgments on scientific research trends, on the one hand, the company selects high-quality innovative projects through market-based mechanisms and locks in intellectual property rights or commercialization rights with strategic investments; on the other hand, the company promotes the industrialization of medical innovation results by joining forces with national-level scientific research institutions and innovative enterprises. Both parties give full play to their respective advantages in scientific research innovation, industrialization and market promotion, form a strong synergy, and produce medical innovation results with significant impact.

Production mode

The company has a production platform for natural medicines and high-end sustained and controlled-release preparations, and adheres to the core concept of "quality first". The company's chemical drug production base has passed FDA's cGMP certification with "zero defects" many times, and is fully aligned with FDA's full life cycle management regulations. It is also equipped with world-leading production equipment and standardized workshops to ensure that drugs meet global registration standards and terminal clinical needs. The company's natural medicine production base adheres to the R&D and production concept of "diagnosable diseases, controllable quality, and proven efficacy" and in accordance with FDA quality control standards to establish a digital production workshop for natural medicines oriented to the international market. The company has a professional quality control team and has established a GMP management system covering raw material procurement, production process, product release, warehousing and logistics.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Procurement model

The company has a dedicated procurement department, which is fully responsible for the procurement of goods and materials required for the company's R&D, production, and operations. Based on the company's business development strategy and sales operation plan, the procurement department formulates scientific and reasonable procurement portfolio strategies, prepares procurement plans, and implements procurement on time to improve procurement efficiency and quality while reducing procurement costs. At the same time, the company has established stable cooperative relationships with suppliers by improving the "Supplier Management System", "Supply Chain Risk Response Mechanism" and other systems, using the digital procurement and sales linkage system, and adopting diversified communication mechanisms and preventive measures to provide a strong guarantee for the company's sustainable development.

Sales model

The company adheres to the concept of "optimizing medical scenarios through technological innovation" and is committed to providing better medical and health products and services to the whole society; with efficient operational efficiency, compliant promotion system, and professional academic research, the company promotes products into clinical application scenarios.

The company has built an omni-channel marketing network covering hospital terminals, retail pharmacies, e-commerce platforms, etc., relying on professional and sound marketing teams such as the marketing department, sales department, and medical department to form a marketing closed loop of "academic drive + digital empowerment". The company achieves rapid product market penetration and brand building through professional academic promotion, precise patient education, rich marketing activities, and digital promotion tools. In terms of sales channels, the company attaches great importance to cooperation with mainstream business partners, chain pharmacies, and online platforms. By examining the partners' local and industry popularity, influence, terminal coverage capabilities, payment collection capabilities and other factors, the company uses a hierarchical management system and dynamic assessment mechanism to sign strategic supply agreements to ensure efficient channel operations and controllable risks.

2. Industry conditions of the company during the reporting period

As an important pillar industry of the national economy, the pharmaceutical industry has long shouldered the multiple tasks of ensuring people's livelihood, promoting technological innovation, and driving industrial upgrading. In 2025, my country's pharmaceutical industry will develop steadily driven by multiple factors such as policy deepening, technological innovation and capital empowerment. The initial construction of a multi-level payment system will also accelerate the reshaping of the industry structure.

The policy environment continues to improve, and innovation support and payment reform are coordinated. During the reporting period, the reform of the drug and medical device review and approval system further deepened, and the policy system supporting innovation throughout the chain continued to be optimized. In 2025, the National Medical Products Administration approved a total of 76 innovative drugs for marketing, setting a record high and fully unleashing the vitality of industrial innovation. On the basis of "guaranteing the basics", the medical insurance reform pays more attention to "promoting innovation". Through dynamic adjustment and optimization of the catalog structure, 114 new drugs will be added to the national medical insurance drug catalog in 2025, including 50 Category 1 innovative drugs. At the same time, the National Medical Insurance Administration announced the first version of my country’s commercial insurance innovative drug catalog and initially established a multi-level payment system of “basic medical insurance + commercial health insurance”, providing key support for market access and volume expansion of innovative drugs and devices.

From the research and development side, China's biomedical innovation has officially entered a new stage of development dominated by source innovation. Relying on engineer bonuses and continuous investment in R&D, domestic companies have sufficient technology reserves and complete pipeline layouts in cutting-edge biotechnology fields such as ADC, dual antibodies, small nucleic acids, and cell therapy. Their innovative drug research and development capabilities have the core capabilities to participate in global market competition. At the same time, the integration of artificial intelligence and the medical and health industry continues to deepen, fully penetrating key links in the industrial chain such as drug research and development, clinical diagnosis and treatment, and intelligent medical equipment, becoming an important driving force for the transformation, upgrading and model change of the pharmaceutical industry. 2025 has become a landmark year for the external licensing of China's innovative drugs. The total amount of BD overseas licensing transactions throughout the year reached 135.655 billion US dollars, and the number of transactions was 157, both hitting record highs. This fully proves that the global competitiveness and value of China's pharmaceutical innovation have been widely recognized by the international market.

From a market perspective, China's pharmaceutical and health industry has demonstrated strong development resilience and structural growth potential driven by the deepening of population aging, medical insurance policy reform, innovative technological breakthroughs, and the upgrading of residents' health needs. According to the latest data from authoritative organizations such as the China Pharmaceutical Enterprise Management Association, the Ministry of Industry and Information Technology, and Zhongkang CMH, the operating revenue of the national pharmaceutical industry will reach 2.96 trillion yuan in 2025. Although affected by factors such as the normalization of centralized procurement and price regression, there was a slight decrease of 0.6% year-on-year. However, the biological products field bucked the trend and grew by 7.5%, with profit growth as high as 37.9%, highlighting innovation-driven characteristics. From the perspective of the overall pharmaceutical and health market, the market size has reached 4.2 trillion yuan in 2025. With the accelerated commercialization of innovative drugs, deepening domestic substitution of medical devices, and upgrading of medical service consumption, coupled with the global increase brought by BD's overseas expansion, the Chinese pharmaceutical market is expected to maintain a medium-to-high-speed growth of 6%-8%. The market size is expected to exceed 4.5 trillion yuan in 2026 and is expected to exceed 7 trillion yuan in 2030. It will continue to rank as the world's second largest pharmaceutical market and become the core engine for the growth of the global pharmaceutical industry.

Currently, with the rapid iterative breakthroughs in frontier fields such as biotechnology, China's biopharmaceutical industry is accelerating its strategic transformation from "imitation and follower" to "parallel leader" and even "original innovation", and its professional level and international competitiveness have been significantly improved. The craze for innovative BD drugs to go overseas since 2025 has not only brought valuable R&D funds to local innovative pharmaceutical companies, but also promoted the reconstruction of the industry valuation system and raised global development expectations. As the bubble in the Biotech industry clears and asset prices return to rationality, the company is seizing the window of strategic opportunities, accelerating the layout of its innovation pipeline, and promoting the transformation and upgrading from an "industrialization platform" to an "innovative pharmaceutical company".

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

3. Core competitiveness analysis

(1) Clinical insight and innovation trend research and judgment capabilities

Relying on the founding team's profound medical background and rich clinical experience, the company has built a unique pharmaceutical industry insight system. The company has established a market research team since its establishment, and continues to conduct in-depth research on various sub-sectors of the pharmaceutical industry through cooperation with the clinical team. At the same time, the company has established cooperation with scientific research institutions and clinical institutions to build a three-in-one project evaluation mechanism of "scientific research-clinical-market". Based on three major systematic evaluation models (optimization of medical scenarios, height of technical barriers, and business synergy), the company has completed the screening of more than a thousand products and projects and established an efficient project value discovery system. This screening capability, which combines medical professional insights and rigorous verification processes, has become the company's core competitive advantage in continuing to obtain high-quality products and innovative pipelines.

(2) Professional brand commercialization capabilities

Based on many years of brand operation experience, the company has built a brand management system based on category research. Through a mature brand management model, clear category segmentation and precise brand positioning, it creates a brand that is rooted in the minds of consumers. At the same time, the company follows life cycle rules, allocates element resources according to the different life cycles of each product, and uses digital systems to achieve precise marketing navigation, optimize operational strategies, improve operational efficiency, achieve rapid introduction of products and release value, and ensure maximum resource input and output. Currently, the company has formed a multi-brand matrix in the three major categories of OTC and OTX, radiosurgery robots, and innovative drugs (devices), and its products in related fields are also increasing.

(3) Ability to industrialize innovative achievements

The company has laid out three major manufacturing platforms: natural drug research and development and drug reformulation, large-scale production of chemical drugs, and intelligent manufacturing of radiotherapy equipment. It has built a full-chain industrialization system covering "technology research and development - pilot transformation - large-scale production - commercial delivery" to efficiently promote the transformation and implementation of innovative scientific research results. In the field of natural medicines, the company has built a full-process industrial chain from medicinal material planting, preparation extraction to finished preparations, creating a modern natural medicine system with "diagnosable diseases, controllable quality, and proven efficacy"; in the field of small molecule chemical drugs, the company has a high-end sustained-release preparation production base that has passed the US FDA cGMP zero-defect certification; in the field of high-end medical devices, the company has built an intelligent manufacturing base for radiotherapy equipment that benchmarks international quality systems, which can support large-scale mass production of high-end radiotherapy equipment at the global supply level. Relying on a standardized, compliant, and internationalized production and manufacturing system, the company is accelerating the transformation of medical innovation results into high-quality products.

(4) Perfect ecological organization construction

Most of the company's management team come from large professional pharmaceutical companies, have many years of experience, and have unique insights into the current situation and future of the pharmaceutical industry. The company has established a professional commercial operation team: the first is the brand drug team, which focuses on the commercial operation of branded and innovative drugs such as organ fibrosis and severe tumors, and uses professional academic promotion to promote the introduction of products into clinical scenarios and provides disease treatment solutions; the second is the KA retail team, which focuses on the retail operation of chronic and common disease products such as comprehensive health products and metabolic diseases; the third is the innovative retail team, which focuses on online e-commerce, Douyin, Xiaohongshu and O2O. and other new channels for brand marketing; in addition, the company also has a radiotherapy center operations team that focuses on the collaborative management of the expansion, creation, and operation of third-party radiotherapy centers. Professional practitioners enable the company to leverage its strengths in various fields and lay a solid foundation for the company's innovative development.

4. Main business analysis

Overview

During the reporting period, the company continued to adhere to the innovation strategy and actively explored and implemented Baheal Pharmaceutical's high-quality innovative development path. The brand operation of the company's core business segment maintains steady growth. The main brands are in the growth stage and have formed a brand matrix, and the growth momentum continues to increase; the wholesale distribution business segment continues to be compressed. The company actively responds to the dual adjustments of weak market demand and policy regulation, optimizing and upgrading from the traditional wholesale distribution business to regional brand business, and the quality of operations has steadily improved; the retail business segment remains stable. At the same time, the company responds to industry changes, firmly promotes the innovation transformation strategy, develops and upgrades from an innovative brand industrialization platform to an innovative pharmaceutical company, and invests in multiple innovative companies and high-quality projects around cutting-edge fields.

In 2025, the company will achieve operating income of 7.507 billion yuan; if calculated after restoring the two-invoice business, the company will achieve operating income of 8.646 billion yuan. The company achieved a net profit of 475 million yuan attributable to shareholders of listed companies, and a net profit of 396 million yuan after deducting non-recurring gains and losses attributable to shareholders of listed companies. In 2025, the company will further focus on the development, transformation and commercialization of innovative drugs and innovative devices, and continue to increase resource investment in cutting-edge innovation projects.

(1) Brand operation business

During the reporting period, the company's core business, brand operation business, achieved operating income of 5.624 billion yuan, a year-on-year increase of 1.18%; if calculated after restoring the two-invoice business, the brand operation business achieved operating income of 6.763 billion yuan during the reporting period, a year-on-year increase of 12.04%, maintaining a good growth trend. The gross profit margin of the brand operation business was 47.40%, the gross profit reached 2.666 billion yuan, and the gross profit accounted for 94.79%, which is the company's main source of profit.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The company's core brand Diqiao series achieved operating income of 1.970 billion yuan. If the two-invoice business is restored, the operating income would be 2.055 billion yuan. Diqiao is the company's core brand. In 2025, the company will continue to delve into the calcium supplement track, continue to consolidate its industry-leading position as a "global calcium supplement expert", and continuously improve the product's full life cycle operation level and digital marketing core capabilities. Relying on strict quality control systems and precise insights into user needs, Diqiao continues to promote segmentation and category innovation. After launching a new product specification of small vermicelli liquid calcium in the first half of the year, Diqiao launched the "Little Gold Bar" Sujie Liquid Glucosamine Calcium in the second half of the year, which solved the pain points of difficult to swallow tablets and gastrointestinal discomfort for middle-aged and elderly people when taking glucosamine, and filled the market gap in the liquid dosage form of glucosamine. At present, Diqiao has completed a full matrix layout of chewable tablets, granules, swallowable tablets, liquid calcium bars, etc., covering diversified calcium supplement scenarios. In terms of brand building, Diqiao continues to output professional value, deepen users' minds, and further consolidate its leading position in the brand through celebrity cross-border linkages, launching the "China Children's Height Promotion Plan" in conjunction with the China Children and Teenagers' Foundation, and organizing diversified public welfare and academic activities such as obstetric critical and severe case exchange competitions. Relying on its long-term professional foundation and constant iteration of innovation strength, Diqiao has ranked first in the imported calcium market for nine consecutive years.

Ganxianle (Fuzheng Huayu) achieved operating income of 742 million yuan, a year-on-year increase of 17.53%. As the "No. 1 brand in the anti-fiber category", Ganxianle has always insisted on "using evidence to demonstrate the power of traditional Chinese medicine" and filling the clinical gap of Western medicine in the field of liver fibrosis treatment. The company adheres to the promotion of the dual-antibody concept of "anti-viral and anti-fibrosis" in the treatment of hepatitis B, continues to accumulate evidence through various clinical studies, establishes brand differentiation, and highlights product advantages. The company has effectively enhanced the influence and brand value of Ganxianle products through a series of actions. In 2025, relying on solid evidence-based medical evidence, Gan Xianle participated in a major national science and technology project led by Beijing Ditan Hospital Affiliated to Capital Medical University - "Research on the Comprehensive Evaluation System and Optimization Plan for the Whole Chain of Integrated Traditional Chinese and Western Medicine Treatment Program to Reverse Hepatitis B Cirrhosis" to systematically build the core cornerstone of efficacy and safety. Currently, anti-fibrosis treatment accounts for only 7% of anti-viral treatment in hepatitis B treatment. As the concept of “dual-antibody” continues to deepen in clinical application, strengthening the body and removing blood stasis will continue to increase the market space.

Miite brand achieved operating income of 318 million yuan, a year-on-year increase of 6.64%. If the two-invoice business is restored, the operating income was 438 million yuan, a year-on-year increase of 6.29%. In 2025, the Miite brand will maintain steady growth, continue to consolidate the brand positioning of "real treatment of chemical indigestion", and consolidate its position as the leader in the hospital indigestion category. MiTe is deeply involved in academic promotion and continues to organize the "Diagnostic Diagnosis and Special Case Study" case exchange event on digestive disease diagnosis and treatment thinking, with the original intention of building an academic exchange platform, building a diversified clinical thinking system, and sharing clinical experience. Through case collection and discussion, expert comments and other forms, it stimulates the enthusiasm of young and middle-aged doctors for knowledge, and helps gastroenterologists improve their skills and develop their disciplines. On the other hand, Mitech continues to promote professional academic promotion through various forms such as cross-regional exchange meetings and salons, helping front-line clinicians to accurately identify "acid-related dyspepsia" and carry out standardized treatment, effectively helping more patients with indigestion relieve clinical symptoms.

The NutSuma series of products achieved operating income of 169 million yuan, a year-on-year increase of 39.65%. In 2025, NewtSuma focuses on the protein nutritional supplement track, adhering to the core concept of "professionalism + concentration" and constantly consolidating its market position as a "protein nutrition expert". In the hospital channel, the company participates in large-scale national academic conferences to increase brand exposure, insists on carrying out professional academic promotion, and promotes the improvement of nutritional concepts of front-line clinicians and the popularization of nutritional diagnosis and treatment. It also conducts a number of clinical studies and has accumulated more than 30 scientific evidence articles so far. In online channels, through intensive cultivation and scenario-based content marketing, Nutsuma's sales scale continues to expand, brand membership assets continue to accumulate, and brand reputation grows steadily. At the same time, the company continues to enrich its product matrix, and will officially launch Nutsuma clear whey protein powder (clear whey) in November 2025 to better meet the needs of different groups of people in different scenarios for supplementing high-quality protein.

At the same time, in terms of product introduction, the company has reached a ten-year strategic cooperation agreement with the global blood products giant Jetbelin, locking in the exclusive promotion rights of the human albumin product Apromax®, further consolidating the company's comprehensive advantages in the field of liver disease treatment. The product currently covers more than 20,000 pharmacies; the new generation microtubule inhibitor Utideron officially launched promotion work in January 2025, and currently covers more than 800 hospitals across the country, and has been published in top academic journals (such as JAMA Oncology) and domestic and foreign academic conferences (ASCO, ESMO, CSCO, etc.) published a number of research results.

Judging from the overall operating results, Baheal Pharmaceutical has achieved remarkable results in optimizing its product structure. The proportion of revenue from exclusive patented products continues to increase. The rapid growth of high-margin products has led to an improvement in the overall gross profit margin.

(2) Innovative business situation

On the basis of consolidating its brand business advantages, the company actively explores innovative development paths, undertakes the industrialization of innovative results, and reshapes the value chain. During the reporting period, focusing on core treatment areas, we actively expanded the boundaries of the industrial ecology through strategic investment, product introduction, industrial cooperation and other means.

In August 2025, the company made a strategic investment in Beihai Kangcheng Pharmaceutical Co., Ltd. (hereinafter referred to as "Beihai Kangcheng", 1228.HK), a Hong Kong-listed company, to deepen its layout in the field of rare diseases, and obtained the exclusive promotion rights for Beihai Kangcheng's three products: Goruining®, Hairesi®, and Myribe® in mainland China, Hong Kong and Macau. In December 2025, the Category 1 innovative drug Gorinin® was successfully included in the first version of the Innovative Drug Dealer Insured Catalog.

In September 2025, the company strategically invested in Jikun Pharmaceutical, increased its focus on the anti-organ fibrosis track, and locked in all rights and interests of Jikun Pharmaceutical's Class 1 innovative drug JK1033 for the treatment of pulmonary fibrosis. At the same time, the company enjoys the right of first refusal under the same conditions for the global compound rights of all products held by Jikun Pharmaceutical. JK1033, the core product of Jikun Pharmaceutical, is a small molecule compound that treats idiopathic pulmonary fibrosis (IPF) through a new mechanism of action. It has currently launched Phase I clinical trials in China and has completed Pre-IND communication with the US FDA.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

From October to December 2025, third-party radiotherapy centers built by Baiyang Medicine with the ZAP-X Mars Boat radiosurgery robot as the core were successively launched at Peking University International Hospital and Beijing Tiantan Puhua Hospital; Hebei Baiyang Zap Medical Equipment Technology Co., Ltd., a joint venture established by the company and Zap Therapeutic Solutions Limited, a subsidiary of Zap Medical System, Ltd., officially opened the ZAP-X global production base in China to accelerate the localization of ZAP-X manufacturing. At the same time, the company, Beijing Xuanwu Hospital and Peking University International Hospital respectively launched IIT research and real-world research with ZAP-X as the core, using evidence-based medical evidence to help promote the clinical popularization of innovative technologies.

In December 2025, the company held a board meeting and reviewed and decided to participate in the establishment of Suzhou Baiyang Industrial Investment Fund. This fund mainly invests in early-stage entrepreneurial companies in the biomedicine and general health fields with breakthrough technological drugs, disruptive medical devices, independent intellectual property rights and forward-looking new technologies that fill domestic gaps. This participation in the establishment of an industrial fund is in line with the company's development strategy and investment direction. Through the fund's layout in areas that are relevant and synergistic with the company's main business, it can further improve the company's overall strategic layout and inject new momentum into the company's future development.

The company’s innovative transformation layout presents the following characteristics:

Focus on the field of cutting-edge innovative drugs and build a closed loop for the transformation of results: Through strategic investments in innovative pharmaceutical companies such as Beihai Kangcheng (rare diseases), Jikun Pharmaceutical (anti-organ fibrosis), Sihe Gene (ASO small nucleic acid) (March 2026), an investment portfolio in high-potential treatment areas has been formed. At the same time, by locking in the rights and interests of core products in advance, a complete transformation closed loop from innovative research and development to industrial transformation to market implementation will be formed, laying a solid foundation for the layout of innovative drugs.
Deepen the track of precision radiotherapy and create a full-chain industrial system: With the ZAP-X Mars Boat radiosurgery robot as the core, the company coordinates and promotes global R&D, production base construction, clinical research and radiotherapy center implementation, and builds a full-chain industrial system of "global technology introduction and cultivation, Chinese manufacturing and global supply, radiotherapy center service innovation, and continuous verification of clinical scientific research".
Linkage with professional investment institutions to expand the boundaries of industrial ecology: The company actively cooperates with professional investment institutions in depth, proactively deploys early-stage biomedicine projects, accurately captures cutting-edge technology trends, continues to expand the dimensions of industrial ecological layout, and injects new momentum into long-term innovative development.

The steady advancement of the above-mentioned innovation and transformation measures has strongly supported the company's strategic transformation from an industrialization platform to an innovative enterprise and further strengthened its core competitiveness.

(3) Wholesale distribution business

During the reporting period, the company's wholesale distribution business achieved operating income of 1.458 billion yuan, a year-on-year decrease of 31.75%. The main reason was that the company focused on core brand operations and continued to reduce the scale of wholesale distribution business.

(4) Retail business

During the reporting period, the company's retail business achieved operating income of 398 million yuan, a year-on-year increase of 6.53%.

Income and costs

(1) Composition of operating income

Overall operating income

Unit: Yuan 2025 2024

Year-on-year increase or decrease amount as a proportion of operating income Amount as a proportion of operating income

7,506,514,889.1 8,094,458,068.7

Total operating income 100% 100% -7.26%

5 4

By industry

Drugs and medical devices 6,933,153,045.6 7,487,180,695.3

92.36% 92.50% -7.40% and other sales 2 2

Brand services 546,694,581.66 7.28% 581,246,028.56 7.18% -5.94% Other services 26,667,261.87 0.36% 26,031,344.86 0.32% 2.44% Products

4,885,418,120.8 65.08% 5,529,903,945.7 -11.65% Pharmaceuticals 68.32%

2 0

Medical devices 514,729,992.49 6.86% 585,732,172.21 7.24% -12.12%

1,533,004,932.3 20.42% 1,371,544,577.4 11.77% Other products 16.94%

1 1

Brand services 546,694,581.66 7.28% 581,246,028.56 7.18% -5.94%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other services 26,667,261.87 0.36% 26,031,344.86 0.32% 2.44% by region

2,137,494,473.0 2,663,081,377.4

Shandong Province 28.47% 32.90% -19.74%

7 9

North China 745,240,321.57 9.93% 821,012,838.98 10.14% -9.23% East China (except Shan 1,425,071,614.3 1,359,999,334.8

18.98% 16.80% 4.78%Outside Eastern Province) 4 9

Central China 475,638,568.84 6.34% 647,545,909.97 8.00% -26.55% South China 758,835,397.66 10.11% 813,084,150.44 10.05% -6.67% Southwest China 520,707,566.21 6.94% 503,316,865.68 6.22% 3.46%Northwestern Region 330,823,480.38 4.41% 310,614,921.69 3.84% 6.51%Northeast Region 352,841,362.99 4.70% 434,302,355.40 5.37% -18.76% United States 41,813,248.08 0.56% 5,203,512.95 0.06% 703.56% Hong Kong 718,048,856.01 9.56% 532,011,232.98 6.57% 34.97% Other foreign regions 0.00 0.00% 4,285,568.27 0.05% -100.00% Sales model

5,624,329,870.0 5,558,936,649.6

Brand operation business 74.93% 68.68% 1.18% 9 2

1,457,861,126.4 2,136,193,384.3

Wholesale distribution business 19.42% 26.39% -31.75%

7 2

Retail business 397,656,630.72 5.30% 373,296,689.94 4.61% 6.53% Other business income 26,667,261.87 0.36% 26,031,344.86 0.32% 2.44%

(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 compared to the previous year Operating cost compared to the previous year Gross profit margin compared to the previous year’s 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 by industry

Drugs and medical devices 6,933,153,04 4,364,865,53

37.04% -7.40% -11.00% 2.54% Machinery and other sales 5.62 5.30

By product

4,885,418,12 3,438,757,78 29.61% -11.65% -13.62% 1.60%Drug

0.82 6.60

1,533,004,93 524,708,724. 65.77% 11.77% 6.17% 1.81%Other products

2.31 52

By region

2,137,494,47 1,611,661,70

Shandong Province 24.60% -19.74% -25.46% 5.79%

3.07 0.79

East China (except 1,425,071,61 855,051,951.

40.00% 4.78% 5.17% -0.22%Outside Shandong Province) 4.34 00

758,835,397. 455,872,063.

South China 39.92% -6.67% -1.99% -2.88%

66 57

Split sales model

5,624,329,87 2,958,207,43

Brand operation business 47.40% 1.18% 2.33% -0.60%

0.09 2.34

Among them: Diqiao series 1,969,543,04 651,491,896.

66.92% -6.24% -4.82% -0.49% Column 9.50 34

1,457,861,12 1,342,427,77

Wholesale distribution business 7.92% -31.75% -31.47% -0.38%

6.47 5.29

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 Qingdao Baiyang Pharmaceutical 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 6,933,153,045.6 7,487,180,695.3

Sales volume Yuan -7.40%

2 2

Pharmaceuticals and medical devices Production volume Yuan 458,945,059.78 385,838,638.97 18.95% and other sales Inventory volume Yuan 895,574,500.05 927,753,115.69 -3.47% 4,256,771,433.5 4,779,869,913.5

Purchase amount Yuan -10.94%

5 4

Explanation of reasons why relevant data changed by more than 30% year-on-year

□Applicable Not applicable

(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 classification Item Ratio of operating costs Ratio of operating costs Year-on-year increase or decrease Amount

heavy heavy

Drugs and medical devices 4,364,865,53 4,904,089,73

Product cost 92.99% 93.94% -11.00% Machinery and other sales 5.30 7.34

317,243,621. 303,023,751.

Brand service service cost 6.76% 5.80% 4.69% 45 07

11,619,834.2 13,546,155.1

Other services Service cost 0.25% 0.26% -14.22% 6 7

4,693,728,99 5,220,659,64

Total 100.00% 100.00% -10.09%

1.01 3.58

Description

None

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

Yes □No

Please refer to "9. Changes in the scope of consolidation" in "Section 8 Financial Report"

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

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical 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) 2,128,862,536.67 The total sales amount of the top five customers accounts for the proportion of the total annual sales 28.36% The sales volume of the top five customers accounts for the proportion of the sales of related parties in the total annual sales 0.00% Information of the company's top five customers

Serial number Customer name Sales volume (yuan) Proportion of total annual sales 1 Jiuzhoutong Pharmaceutical Group Co., Ltd. 780,947,530.20 10.40% 2 Sinopharm Holdings Co., Ltd. 525,389,682.99 7.00% 3 China Resources Pharmaceutical Commercial Group Co., Ltd. 352,782,164.55 4.70% 4 Yangzhou Yiyang Pharmaceutical Co., Ltd. 243,291,644.13 3.24% 5 Qingdao Municipal Hospital 226,451,514.80 3.02% Total -- 2,128,862,536.67 28.36% Other descriptions of major customers

Applicable □Not applicable

The top five customers have no related relationship with the company. The company's directors, senior managers, core technical personnel, shareholders holding more than 5% of the shares, actual controllers and other related parties do not have direct or indirect interests in major customers.

The company’s main suppliers

The total purchase amount of the top five suppliers (yuan) 1,604,946,974.21 The total purchase amount of the top five suppliers accounts for the proportion of the total annual purchases 37.70% The purchase amount of the top five suppliers accounts for the proportion of related party purchases in the total annual purchases 7.55% Information of the company's top five suppliers

Serial number Supplier name Purchase amount (yuan) Proportion of total annual purchase 1 Ningbo Ruilin Pharmaceutical Co., Ltd. 537,642,324.93 12.63% 2 A&Z Pharmaceutical INC. 336,690,555.77 7.91% 3 Guangzhou Junxin Pharmaceutical Co., Ltd. 263,858,469.06 6.20% 4 Sinopharm Holdings Co., Ltd. 263,610,842.94 6.19% 5 Astellas Pharma Inc. 203,144,781.51 4.77% Total -- 1,604,946,974.21 37.70% Other information on major suppliers

Applicable □Not applicable

The company has a related relationship with its supplier Anshi Pharmaceutical (Zhongshan) Co., Ltd. (controlled by the same entity as A&Z Pharmaceutical INC.). Fu Gang and Zhu Xiaowei serve as its directors, and the company directly and indirectly holds its equity. Some of the company's directors, senior managers, shareholders holding more than 5% of the shares, and the actual controller indirectly hold its equity through the company.

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 Jiuzhoutong Pharmaceutical Group Co., Ltd. 671,322,020.07 2 Qingdao Municipal Hospital 226,045,435.22

3 Sinopharm Holdings Co., Ltd. 212,840,986.38

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

4 Affiliated Hospital of Qingdao University 209,200,564.98 5 China Resources Pharmaceutical Commercial Group Co., Ltd. 188,766,517.06 Total -- 1,508,175,523.71 Information on the company's top 5 suppliers in trading business

Serial number Supplier name Purchase amount (yuan)

1 Ningbo Ruilin Pharmaceutical Co., Ltd. 537,642,324.93 2 A&Z Pharmaceutical INC. 336,690,555.77 3 Guangzhou Junxin Pharmaceutical Co., Ltd. 263,858,469.06 4 Sinopharm Holdings Co., Ltd. 263,465,510.30 5 Astellas Pharma Inc. 203,144,781.51 total -- 1,604,801,641.57

Cost

Unit: Yuan

2025 2024 Year-on-year increase or decrease Explanation of major changes Selling expenses 1,620,418,676.53 1,516,920,293.54 6.82%

Management expenses 326,162,412.46 280,553,399.49 16.26%

The main reason is that the company supplements financial expenses 107,631,119.38 71,108,610.98 51.36% to supplement cash flow from operating activities.

The corresponding short-term borrowings increased R&D expenses 42,165,204.43 36,139,782.22 16.67%

R&D investment

Applicable □Not applicable

Name of the major R&D projects expected to contribute to the company’s future development Project purpose Project progress Objectives to be achieved

influence

Anti-tuberculosis NTB-3119M raw material is a stage in the research and development of new drugs. The new process of raw materials is basically confirmed.

In the preparation section of raw materials and tablets, the final target new drug was recognized, and NTB-3119M of raw materials and preparations was approved. Process research batches in the new drug development stage. Process optimization continues.

Take the transformation of traditional Chinese medicine monomers and

Traditional Chinese medicine compound formula is parallel and independent

Research and develop drug candidates;

Through structural transformation, development

With independent intellectual property rights

new drug compounds, improving drugs

Bioavailability of substances, guaranteed (1) Complete SZ02 compound

The safety and tolerability of the drug can basically lock in the complete set of research data for WXN-7-drug screening.

SZ02 has innovative drug properties in renal fibrosis, and is a candidate drug for PCC in renal fibrosis 71 (2) Screening to obtain at least one drug

potential new drugs

Candidate drug exploration research has obtained seeds in animal model tests, and UUO is currently carrying out small projects that meet the requirements of patent novelty and

Validation of drug efficacy; through literature Validation of drug efficacy in mouse model Creative and effective

and in vitro and in vivo screening experiments for compounds

Screening of Traditional Chinese Medicine Prescription Framework

selection, and endowed with Chinese medicine theory

Discuss the core and form expert reform

advanced prescription, and in renal fibrosis

Obtained from animal model tests

Validation of drug efficacy.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(1) Complete Shakuba Quval

Disadvantages of generic Sartan sodium tablets

Optimize the recipe process to ensure product quality

Product quality meets national standards

and consistency evaluation requirements.

(2) Carry out cooperation with original research drugs

Comprehensive quality comparative study,

Including but not limited to content,

Related substances, dissolution rates, etc. Completion of sacubitril valsartan

(1) Complete the pre-BE test

Sacubitril Valsartan Sodium Tablets Critical Quality Attributes. Sodium tablets (100mg,

test, the results show equivalence; Obtain generic drug approval generic drug consistency evaluation (3) Implement bioequivalence 200mg) generic drug development and (2) Complete process verification

(BE) test to verify that the generic registered pharmaceutical and the original drug are in vivo

The speed and degree of absorption are not

significant difference.

(4) Organize and submit consistent

Sexual evaluation application materials, fight for

Passed by the National Drug Supervision

Authority (NMPA) review

batch.

(1) Complete CDE communication and submission

flow

(2) Complete oral administration of mice

Weiquanjian dry ointment powder single dose

Administration toxicity test report

(final draft)

(3) Complete the fried dry paste

Ancient classic recipe Yi Guanjian Submit ancient classic recipe 1 Submit ancient classic recipe 1

6 batches of powder and granule technology were tested. Obtained the pharmaceutical and non-clinical safety of one of the ancient classic prescriptions. The registration application for Guanjian, and the registration application for Guanjian, and

3 batches of certificates. Research on the approval of Guanjian. Obtained the approval number. Obtained the approval number (4) and completed the Guanjian.

Materials, pieces, reference samples

Products, dry paste powder, granular

Quantitative standards, analytical methodology

Verification report

(5) Science and Technology Commission acceptance report

sue

Direct mix tableting content uniformity

Automatic calibration technology and one-step drug production process development to determine key parameter design space

Completed topic: Improve production efficiency, research on moisture control technology in granulation, improve production efficiency, process optimization

By studying dapagliflozin tablets

Preparation process and evaluation method

Law, promoting pharmaceutical technology

Preparation and preparation of dapagliflozin tablets

Innovation and development. In Progress: Dapagliflozin Tablets Approved, Generic Drugs Launched, In Vivo and In vitro Absorption Studies

Reduce production costs: optimize the system

Preparation process to improve production efficiency

rate and reduce drug costs.

Iron protein succinate raw materials and

Preparation process of iron protein succinate oral liquid oral solution Raw materials and materials of iron protein succinate

Completed topic Approved, nifedipine controlled-release generic drug is on the market and nifedipine controlled-release tablets preparation method for oral solution

Study on Obtaining Optimized Prescriptions from Tablet Prescriptions

Diclofenac diethylamine raw materials

Raw materials of diclofenac diethylamine. Preparation process of diclofenac diethylamine latex and latex agent. The topic has been completed. Generic drugs are on the market.

And the preparation process of latex agent was approved

Research

Company R&D personnel

2025 2024 Change ratio

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Number of R&D personnel (people) 91 86 5.81% Number of R&D personnel Proportion 3.65% 2.81% 0.84% Educational qualifications of R&D personnel

Bachelor's degree 47 52 -9.62% Master's degree 15 13 15.38% College degree and below 29 21 38.10% Age composition of R&D personnel

Under 30 years old 26 28 -7.14% 30~40 years old 38 38 0.00% Over 40 years old 27 20 35.00% The company’s R&D investment amount in the past three years and the proportion of operating income

2025 2024 2023

Amount of R&D investment (yuan) 42,165,204.43 36,139,782.22 42,450,877.65 Proportion of R&D investment in operating income 0.56% 0.45% 0.51% Amount of capitalized R&D expenditures

0.00 0.00 0.00 (yuan)

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

0.00% 0.00% 0.00% ratio

Capitalized R&D expenditures account for current net profit

0.00% 0.00% 0.00% profit proportion

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

Applicable□Not applicable

The research and development of the traditional Chinese medicine industry relies more on experience accumulation and practical ability. Companies tend to retain senior personnel and supplement professional and technical talents, so the proportion of those over 40 years old and those with associate degrees has increased significantly.

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

Project 2025 2024 Year-on-year increase or decrease

Subtotal of cash inflows from operating activities 8,439,678,080.91 8,764,150,968.68 -3.70%Subtotal of cash outflows from operating activities 7,505,224,476.05 7,950,300,563.79 -5.60%Net cash flow from operating activities

934,453,604.86 813,850,404.89 14.82%

Subtotal of cash inflows from investing activities 348,104,559.70 398,660,782.45 -12.68%Subtotal of cash outflows from investing activities 936,910,315.11 1,130,979,506.36 -17.16%Net cash flow from investing activities

-588,805,755.41 -732,318,723.91 19.60%

Subtotal of cash inflows from financing activities 2,487,816,664.51 2,199,793,250.95 13.09% Subtotal of cash outflows from financing activities 2,122,337,858.70 2,195,127,583.98 -3.32% Net cash flow from financing activities

365,478,805.81 4,665,666.97 7,733.37%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Net increase in cash and cash equivalents 701,396,347.80 88,402,780.07 693.41% Explanation of the main factors affecting significant year-on-year changes in relevant data

Applicable □Not applicable

The net cash flow generated from financing activities increased by 7,733.37% year-on-year, mainly due to the decrease in the equity payment for the acquisition of Baheal Pharmaceuticals during the reporting period and the return of borrowings from subsidiaries under the same control to the original shareholders and minority shareholders due to corporate mergers/subsidiaries that lost control compared with the same period.

The net increase in cash and cash equivalents increased by 693.41% year-on-year, mainly because the company strengthened working capital management during the reporting period, improved capital turnover efficiency, and the net cash flow generated from operating activities increased year-on-year; the company's cash payment for external investments during the reporting period decreased compared with the same period; the equity payment paid for the acquisition of Baheal Pharmaceutical during the reporting period and the borrowings returned to the original shareholders and minority shareholders by subsidiaries under the same control/subsidiaries that lost control decreased compared with the same period.

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

The company's net cash flow generated from operating activities was 934 million, which was slightly different from the net profit of 572 million. This was mainly affected by non-cash expenses such as depreciation and amortization, financial expenses related to financing activities, a decrease in operating receivables, and an increase in operating payables.

5. Non-main business situation

□Applicable Not applicable

6. Analysis of assets and liabilities

Major changes in asset composition

Unit: Yuan End of 2025 Early 2025

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

Proportion Proportion

The main reason is that at the end of the reporting period, the company's monetary funds held by the company increased 2,137,445,834.12 26.35% 1,467,403,220.46 20.63% 5.72% in order to meet its daily operating, investment and financing needs. Accounts receivable 1,455,902,894.07 17.95% compared with the beginning of the period. 1,884,537,311.49 26.50% -8.55%

Inventory 895,574,500.05 11.04% 927,753,115.69 13.04% -2.00%

Investment real estate 1,229,196.82 0.02% 1,327,708.18 0.02% 0.00%

Long-term equity investment 887,039,463.33 10.93% 727,624,417.04 10.23% 0.70%

Fixed assets 685,215,804.55 8.45% 535,910,126.42 7.53% 0.92%

The main reason is that some of the company's new factories are under construction 67,687,971.12 0.83% 152,262,124.97 2.14% -1.31% and the housing projects are converted into fixed assets when they reach a usable state.

Right-of-use assets 132,564,750.89 1.63% 122,481,520.03 1.72% -0.09%

The main reason is that the company's borrowings from banks increased during the reporting period to supplement short-term borrowings 1,932,284,973.10 23.82% 1,098,574,415.39 15.45% 8.37% to replenish working capital.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Contract liabilities 146,649,374.06 1.81% 118,522,639.79 1.67% 0.14%

The main reason is that during the reporting period, the company used long-term borrowings to pay for the acquisition of Baiyang 472,031,491.84 5.82% 357,772,882.84 5.03% 0.79%

The equity transfer payment for the drug was obtained from a bank for merger and acquisition loans.

Lease liabilities 109,603,959.02 1.35% 102,562,856.59 1.44% -0.09%

The main reason is that the company increased its transactional financial financing to Beihai Kangcheng Pharmaceutical Co., Ltd. during the reporting period 264,459,992.60 3.26% 44,989,893.93 0.63% 2.63%

production and investment from Beijing Huahao Zhongtian Biopharmaceutical Co., Ltd.

The main reason is that the company's receivables held at the end of the reporting period were reclassified into fair value financing 404,172,992.32 4.98% 215,387,955.19 3.03% 1.95%

The increase in bank-acceptance notes measured and changes included in other comprehensive income compared with the beginning of the period was mainly due to the company's receipt of other receivables during the reporting period 76,441,016.74 0.94% 161,577,496.67 2.27% -1.33% The current accounts of Qingdao Baiyang Shenghui Medical Equipment Co., Ltd. were mainly due to the company's other current assets at the end of the reporting period 169,571,904.23 2.09% 81,932,896.21 1.15% 0.94% The input tax to be certified and deducted increased compared with the beginning of the period

The main reason is the company's long-term deferred expenses at the end of the reporting period 76,704,853.77 0.95% 40,728,872.05 0.57% 0.38%

The increase in decoration expenses to be amortized compared with the beginning of the period was mainly due to the deductible temporary deferred income tax assets of the company at the end of the reporting period.

86,781,496.79 1.07% 58,098,495.88 0.82% 0.25% The difference can be compensated for

An increase in losses corresponds to an increase in deferred income tax assets

The main reason is that the company's other non-current assets prepaid during the reporting period 102,568,367.93 1.26% 8,099,278.04 0.11% 1.15%

The increase in the purchase price of long-term assets compared with the beginning of the period was mainly due to the company’s other payables according to the progress agreed in the contract during the reporting period 351,199,191.59 4.33% 560,404,147.45 7.88% -3.55%

Paid the equity transfer fee for the acquisition of Baiyang Pharmaceutical

The main reason is corporate estimated liabilities 0.00% 5,000,000.00 0.07% -0.07%

The full text of the 2025 annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. during the reporting period of the company

Lan Yushu (Beijing) Technology Co., Ltd. has a relatively high proportion of litigation proceeds transferred to overseas assets

Applicable □Not applicable

overseas assets

Protect assets. Is there any asset that accounts for the company’s net worth?

Reasons for formation Asset size Location Operation model Safety income status Contents of significant impairments Ratio of assets

Control measures High risk

Baiyang Health

Designator

Industry International

117,894.4 members, strengthened 27,430.26

Trading Co., Ltd. Investment and establishment in Hong Kong Independent operation 43.00% No 40,000 RMB Management, etc. 10,000 RMB

company shares

formula

right

Baiyang Group Designator

Co., Ltd. 24,962.76 employees, strengthening 3,351.33

Investment and establishment in Hong Kong Independent operation 9.10% No (HK) shares RMB 10,000 Management and other parties RMB 10,000

right form

Newt Shuma Designated

International Health 10,479.7 employees, strengthened -2.3011 million

Equity acquisition Hong Kong Independent operation 3.82% No limited company RMB 10,000 Management and other parties RMB

equity formula

Designator

Nutrasumm

4,155.58 members, strengthened 1.2484 million

Equity acquisition of a, Inc. United States Independent operation 1.52% No. million RMB Management and other parties RMB

Equity

formula

Assets and liabilities measured at fair value

Applicable □Not applicable

Unit: Yuan

Included in equity

Fair in this period

Accumulated public accrual in the current period Purchases in the current period Sales in the current period

Item Opening amount Change in value Other changes Closing amount Impairment amount Amount due to change in fair value

Profit and loss

move

financial assets

Transactional

financial assets

44,989,89 73,619,62 145,850,4 264,459,9 (excluding derivatives

3.93 9.54 69.13 92.60Financing

production)

Derivatives

0.00 Financing Assets

Other debts

0.00 rights investment

Other rights

Yi Tool Investment 0.00 Investment

Other non-

15,000,00 14,736,79 Liquid Finance 263,205.1

0.00 4.88Assets 2

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Accounts receivable 215,387,9 188,785,0 404,172,9 financings 55.19 37.13 92.32 Financial assets 275,377,8 73,356,42 145,850,4 188,785,0 683,369,7

0.00 0.00 0.00

Subtotal 49.12 4.42 69.13 37.13 79.80Investment housing

0.00 real estate

productive life

0.00 physical assets

Others 0.00

275,377,8 73,356,42 145,850,4 188,785,0 683,369,7Total of the above 0.00 0.00 0.00

49.12 4.42 69.13 37.13 79.80Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Other changes

Other changes in receivables financing: changes in the receivables financing held by the company at the end of the reporting period compared with the beginning of the period due to collection, endorsement transfer, maturity, etc.

Whether there are any significant changes in the measurement attributes of the company's main assets during the reporting period

□Yes No

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

Item Book balance (yuan) Book value (yuan) Restricted type

Bank acceptance bill deposit, issuance of monetary funds 225,361,378.76 225,361,378.76

Guarantee deposit, frozen funds

Notes receivable 28,022,594.78 28,022,594.78 Endorsed and discounted undue accounts receivable 1,208,968.10 1,202,923.26 Loan pledge

Fixed assets 136,123,203.91 121,313,250.18 Loans and mortgages

Intangible assets 26,693,745.93 20,174,670.32 Mortgage of loans

Total 417,409,891.48 396,074,817.30

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

821,900,297.93 1,131,993,557.14 -27.39%

Major equity investments obtained during the reporting period

□Applicable Not applicable

Major non-equity investments ongoing during the reporting period

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Financial asset investment

(1) Securities investment situation

Applicable □Not applicable

Unit: Yuan

credited

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

Domestic transactions 25,39 Fair 27,45 - 27,02

Zhongkang 172.9 Xingjin Owned foreign shares 8,937 Value 8,382 428.6 9,716

HK Holdings 14.88 Financing Fund Notes .76 Measurement .46 65.90 .56

produce

- Domestic transactions Huahao 13,86 Fair 17,53 7,444 12,79

02563 12,17 12,17 Xingjin Owned foreign shares Zhongtian 5,923 Value 1,511,405. 7,079

.HK 8,837 8,837 Financing Fund Notes Pharmaceutical .04 Measurement .47 18 .27

.38 .38 produced

Domestic transactions 138,4 Fair 86,22 138,4 86,22 224,6

01228 Beihai Xingjin Owned foreign shares 06,06 Value 7,132 06,06 7,132 33,19

.HK Kangcheng Financing Fund Ticket 3.95 Measurement .82 3.95 .82 6.77

Aspen

Likang

CICC

(green

Island) Other entrepreneurship 15,00 Fair 15,00 - - 14,73 Non-current

Own funds None Investment 0,000 Value 0,000 263,2 263,2 6,794 Dynamic capital fund .00 Measurement .00 05.12 05.12 .88 Financing partnership

(Yes

Limited combination

Guy)

192.6 59.98 73.35 145.8 73.95 279.1

Total 70,92 -- 9,893 6,424 0.00 50,46 0.00 8,005 96,78 -- --

4.75 .93 .42 9.13 .20 7.48

(2) Derivatives investment situation

□Applicable Not applicable

The company had no derivative investments during the reporting period.

8. Sales of major assets and equity

Sale of major assets

□Applicable Not applicable

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Sale of major equity interests

□Applicable Not applicable

9. Analysis of major holding and participating companies

Applicable □Not applicable

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

Unit: Yuan

Company name Company type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit Baiyang Health

Industrial International Brand Services

118.45 million 1,334,232 997,940,1 1,181,682 375,599,2 309,449,1 Trading Co., Ltd. subsidiaries and cross-border e-commerce

Hong Kong dollar, 697.52 49.30, 653.83 12.49 59.86 Company (joint venture

and)

Beijing Baiyang

Zhihe Medical Brand Services

50,000,00 574,518,2 158,579,2 662,012,5 184,378,6 128,969,7 Results transformation subsidiaries and marketing strategies

0.00 67.96 28.94 94.51 14.22 33.51 Limited service plan

company

Shanghai Baiyang

Pharmaceutical shares Pharmaceutical production 114,025,8 1,265,422 817,917,2 1,083,081 264,719,6 224,454,9 Subsidiaries

Co., Ltd. and sales 00.00,002.57 88.63,008.20 95.60 59.72 (consolidated)

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 Adjust the company’s pharmaceutical retail business layout, cancel the company Qingdao Baiyang Wanglianda Pharmacy Co., Ltd.

No significant impact on performance

Adjusted the company's medical device business layout and established the company Hebei Baiyang Sapu Medical Equipment Technology Co., Ltd.

No significant impact on performance

Adjusted the company's medical device business layout and established Beijing Baixin Kangda Medical Device Co., Ltd.

No significant impact on performance

Adjusted the company's medical device business layout and established Baheal Pharmaceutical (Guangdong) Co., Ltd.

No significant impact on performance

Adjust the company's brand service and commercial service business and establish Beijing Baiyang Chunsheng Pharmaceutical Technology Co., Ltd.

Bureau, no significant impact on the company's performance

Adjusted the company's medical device business layout and established Hangzhou Baiyang Zhili Medical Research Service Co., Ltd.

No significant impact on performance

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

(1) The company’s future development strategy

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

2025 is the 20th anniversary of the establishment of Baheal Pharmaceuticals, and it is also a milestone and new starting point for the company's innovative development. After twenty years of hard work, the company's development trajectory is clear: in the first decade, it laid the market foundation with brand drive as the core; in the second decade, it built an industrial ecosystem with platform drive as the guide; in the third decade, the company officially entered a new stage of development driven by technology. At present, the company's essential resources are gradually abundant, and its core development goals are to achieve steady performance development, achieve substantial breakthroughs in innovative research and development, and comprehensively transform into a technological innovation-driven enterprise.

Currently, my country's pharmaceutical industry is accelerating into a new development stage of source innovation. In the next ten years, the company will build a vibrant innovation ecosystem, anchor the strategic core of "brand, innovation, and internationalization", and steadily move towards an innovative enterprise driven by technological innovation: first, adhere to brand leadership, ensure the healthy growth of its own core brands, and cultivate new brands with long-term competitiveness; second, adhere to innovation-driven , continue to work with national-level scientific research institutions to transform scientific research results, optimize medical scenarios with innovative products, and promote technological innovation to become the company's new growth point; third, build an international ecosystem, promote the expansion of overseas partners and the global layout of intellectual property rights, and build the company's risk resistance capabilities and broad space for sustainable development with an international ecosystem.

At the industrialization level, on the one hand, we will adhere to the development of independent brands and continue to develop with the core goal of "category leading brand". Through continuous product innovation, optimized market strategies, and enhanced brand influence, we will promote independent brands to occupy a leading position in subdivided categories and build irreplaceable category advantages. At the same time, the marketing team must maintain team innovation and combat effectiveness, reserve sufficient talent training echelons, maintain the organization's learning motivation, and further refine the incentive system to allow more employees to share the dividends of corporate development, allowing the marketing team to maintain professional promotion capabilities and strong enthusiasm, so as to continue to advance the company's goals. On the other hand, we will continue to strengthen the construction of the industrial system and systematically improve our ability to undertake the industrial transformation of cutting-edge scientific research results. Focusing on the three major directions of natural drug research and development and drug reformulation, large-scale production of chemical drugs and intelligent manufacturing of radiotherapy equipment, we will deepen our layout and build a full-chain capability system from technology development to mass production and delivery. Relying on a standardized and compliant production and manufacturing system, we will accelerate the efficiency of the implementation of cutting-edge achievements such as innovative drugs and high-end devices, and create an internationally competitive industrialization platform for innovative achievements.

In terms of innovation, we will continue to introduce high-quality innovative projects with underlying technical barriers, focus on cutting-edge tracks in the field of medicine and health, continuously expand R&D pipeline reserves, and lay the project foundation for long-term innovation and development; at the same time, we will deepen our industrialization advantages and strengthen the full-process empowerment of ongoing research projects. Through financial support, resource docking, industrial collaboration and other measures, we will help innovative projects to efficiently promote research and development, accelerate breakthroughs in technical bottlenecks, and promote results to quickly go to clinical practice; ultimately achieve core breakthroughs at the intellectual property level, form a batch of globally competitive intellectual property achievements, and build the company's unique core competitive barriers.

Since its establishment, Baheal Pharmaceutical has always adhered to its core corporate mission: to provide better medical and health products and services to the whole society, optimize the allocation of health industry resources with professional management, and continue to promote medical and technological innovation to enable employees to live a high-quality life. In the future, the company will continue to uphold its original intention of "optimizing medical scenarios through technological innovation", continuously consolidate the ecological layout driven by the twin engines of scientific research transformation and industrialization, accelerate the introduction of innovative products that can truly optimize medical scenarios and benefit patients into clinical practice, steadily promote the transformation and upgrading of a pharmaceutical company that leads in technological innovation, and embark on a new journey of innovation and development based on twenty years of accumulation.

(2) Risks faced by the company and countermeasures

Concentration risk of brand operation business

Diqiao series products are one of the important brand products operated by the company and have an important impact on the company's brand operation business and overall performance. Once there are major changes in the market competition pattern of the Diqiao series products, major changes in consumer preferences, fluctuations in the production of the Diqiao series products, or other adverse factors that may affect the business of the Diqiao series products, it may lead to major fluctuations in the company's brand operation business, which in turn will affect the company's overall performance.

Risk response measures: In recent years, the number of brands operated by the company has grown significantly. The company will continue to deeply explore consumer needs, give full play to the core competitiveness of brand operations, use the sales channels and customer resources accumulated over the years to expand strategic cooperation, continue to build a diversified brand matrix, and reduce the concentration risk of brand operation business.

Drug quality risks

Drug quality and safety involves all aspects of drug production, packaging, circulation, use, etc. Problems in any link may lead to drug safety problems. Although the company has established a strict quality management system in accordance with relevant requirements, it has full-process quality management measures from procurement, acceptance, storage, transportation to sales. However, the company cannot fully control the production quality of the products it operates. Although the company has stipulated in the relevant cooperation agreement that when product quality problems occur, the company can return all products with quality problems to the suppliers. However, once drug quality problems occur, it will still have a large negative impact on the company's business operations and market image, so the company faces drug quality risks.

Risk response measures: The company continues to thoroughly and strictly implement quality management measures to control drug quality throughout the entire process from procurement, acceptance, storage, transportation to sales, etc., making quality management the top priority; at the same time, it strictly assesses and screens cooperative suppliers, selects high-quality cooperative brands or products, and comprehensively prevents drug quality risks.

Policy risks

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The medical industry is significantly affected by regulatory policies. The implementation of relevant policies has an important impact on the development of the pharmaceutical industry and will lead to changes in the competition and interest patterns of the upstream and downstream industries. If national policies are unfavorable to the company's business operations, or the company cannot make timely business adjustments in accordance with relevant policies or adapt to new industry competition conditions, it will have an adverse impact on the company's operating performance.

Risk response measures: The company attaches great importance to policy changes, effectively captures policy dynamics, implements forward-looking layout and adjustments, and proactively responds to possible policy risks; at the same time, the company will continue to improve its operational management level, strengthen management team building, optimize internal business controls, management processes and operating mechanisms, continue to explore opportunities in areas related to its main business, and reduce operating risks caused by policy changes.

Risks of intensifying market competition

With the reform of the pharmaceutical system, the division of labor in the pharmaceutical industry continues to be refined, and the role of brand operation business in the industry chain has become increasingly obvious. Industry manufacturers are paying more and more attention to the layout of brand operation business. Existing brand operating companies are constantly increasing investment in operations, and market competition is intensifying. At the same time, the company will also face competition from enterprises whose main businesses are wholesale and retail. Traditional pharmaceutical wholesale and retail companies have certain advantages in channel control and have a certain understanding of the business operation rules of different regional markets. This determines that pharmaceutical wholesale and retail companies can participate in the promotion and sales of pharmaceutical products. Although the core operating mechanisms and organizational structures of traditional pharmaceutical wholesale and retail companies focus on their core businesses, and the brand operation business of pharmaceutical products accounts for a relatively small proportion, it will still have a certain impact on the brand operation industry.

Risk response measures: The company will continue to focus on the development of its main core business, deepen cooperation with existing customers, actively explore new customers and new markets, take effective measures to expand the brand matrix and sales network, increase the coverage of existing sales channels, improve the comprehensive service capabilities of brand operations, and continuously enhance its market competitiveness.

R&D and commercialization risks

Most of the innovative pharmaceutical companies invested by the company are in the early stages of R&D and have not yet achieved profitability. The relevant R&D products are subject to common industry risks such as long R&D cycles, heavy investment, and high clinical trial failure rates. At the same time, they are faced with uncertainties such as technology iterations, drug review and approval, and changes in industry policies. This may lead to R&D projects progressing less than expected, being terminated, or having commercialization values that are less than predicted, thereby affecting the valuation of the target enterprise and adversely affecting the company's investment income and overall operating performance.

Risk response measures: The company will continue to strengthen pre-investment due diligence and post-investment tracking management, pay close attention to research and development progress, clinical progress and industry policy changes. At the same time, the company will leverage its advantages as an industrial investor to strengthen industry empowerment of benchmark innovative pharmaceutical companies, reduce the risk of clinical trial and R&D failure, and effectively prevent investment risks.

12. Registration form for reception of 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

For details, see the company's participation in the company 2025

Chao Information Network Panorama Network "Investment Company in Qingdao District in 2024"

(www.cninfo.

Level of investor relationship interaction Level of investors in listed companies and 2025

May 2025 Network platform online (com.cn) disclosed

"Taiwan" Others Online collective reception First quarter results

On the 12th, we exchanged information on May 2025 (https://ir and 2024) and company operations.

Investment.p5w.net (Month 12th) Performance briefing meeting Product status

investor relations activities

Record form》

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

In order to strengthen the company's market value management work, further standardize market value management behaviors, and safeguard the legitimate rights and interests of the company, investors and other stakeholders, the company formulated the "Market Value Management System" in accordance with relevant regulations and combined with the actual situation. This system was reviewed and approved at the 31st meeting of the company's third board of directors on April 22, 2025.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

In order to implement the guiding ideology of “activating the capital market and boosting investor confidence” proposed by the Political Bureau of the Central Committee and “vigorously improve the quality and investment value of listed companies, and take more effective and effective measures to stabilize the market and stabilize confidence” proposed by the Executive Meeting of the State Council, promote the company’s long-term and healthy development, effectively protect the interests of all shareholders, and enhance investment Based on the confidence of investors and combined with the company's development strategy and operating conditions, the company has formulated an action plan of "double improvement of quality and returns". The specific measures are as follows: 1. Focus on the main pharmaceutical business and consolidate the layout of the pharmaceutical industry; 2. Adhere to standardized operations and improve corporate governance levels; 3. Improve the quality of information disclosure and enhance investor recognition; 4. Pay attention to investment returns and share development results. For details, please refer to the "Announcement on the "Dual Improvement of Quality and Return" Action Plan" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on August 28, 2024.

In 2025, the company will actively promote the orderly implementation and implementation of various tasks. The company held the sixth meeting of the fourth board of directors on April 27, 2026, and reviewed and approved the "Proposal on the Progress of the "Dual Improvement of Quality and Return" Action Plan. For the progress of the implementation of the action plan, please refer to the "Progress Announcement on the "Double Improvement of Quality and Return" Action Plan" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on the same day.

Full text of Qingdao Baiyang Pharmaceutical 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 Company Law, Securities Law, Code of Governance of Listed Companies, Shenzhen Stock Exchange GEM Stock Listing Rules, Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed Companies and other relevant laws and regulations and the requirements of the Articles of Association, constantly improving the company's corporate governance structure, improving the company's internal control system, and improving corporate governance levels. The company's shareholders' meeting, board of directors, independent directors and board secretary operate and perform their duties in accordance with the law, and the functions of the company's corporate governance structure are continuously improved.

(1) About shareholders and shareholders’ meetings

The company's shareholders' meeting is the company's authority. During the reporting period, the company's shareholders' meeting convened, convened, voted and made resolutions in accordance with the procedures stipulated in the Articles of Association and the Rules of Procedure for the Shareholders' Meeting. The meeting minutes were standardized, and the rights and obligations conferred by the Company Law and the Articles of Association were fulfilled in accordance with the law, ensuring the equal status of all shareholders, especially small and medium-sized shareholders, and protecting the shareholders' rights to know about the company's major events, participate in decision-making and supervision. At the same time, the company hired lawyers to witness the legality of the shareholders' meeting and issue legal opinions to ensure the standardized operation of the shareholders' meeting.

(2) About the company and controlling shareholders

The company's controlling shareholder has a code of conduct, exercises shareholder rights and performs shareholder obligations in accordance with the law through the shareholders' meeting, and does not directly or indirectly interfere with the company's decision-making and operating activities beyond the shareholders' meeting. The company and its controlling shareholder have achieved separation of personnel, assets and finance, independent institutions and businesses, independent accounting, independent responsibilities and risks, and the company has independent and complete business and independent operating capabilities. The company's board of directors and other internal bodies are able to operate independently. During the reporting period, the company did not provide guarantees for the controlling shareholder and its affiliates, and there was no non-operational occupation of company funds by the controlling shareholder.

(3) About directors and board of directors

The company currently has 9 directors, including 1 employee representative director and 3 independent directors. The number and composition of the board of directors meet the requirements of laws and regulations, and the professional structure is reasonable. The company's board of directors carries out its work in strict accordance with the provisions of the Company Law, Articles of Association and Rules of Procedure of the Board of Directors. All directors are able to fulfill their duties, be diligent and conscientious, make prudent decisions, actively and steadily carry out various tasks, and better implement the resolutions of the shareholders' meeting. The company's board of directors has four special committees: Audit Committee, Nomination Committee, Strategy Committee, and Remuneration and Appraisal Committee, which provide professional suggestions for the scientific decision-making of the board of directors and improve the quality of decision-making.

(4) About performance evaluation and incentive and restraint mechanisms

The company has gradually established and improved fair and transparent performance evaluation standards and incentive and restraint mechanisms for directors and senior managers. The appointment of the company's senior managers is open, transparent and in compliance with laws and regulations.

(5) About stakeholders

The company fully respects and safeguards the legitimate rights and interests of stakeholders, strengthens communication with all parties, achieves coordination and balance of the interests of society, shareholders, the company, employees and other parties, actively performs corporate social responsibilities, and jointly promotes the company's sustainable and healthy development.

(6) Information disclosure and transparency

The company strictly complies with relevant laws and regulations and the requirements of the Articles of Association, Information Disclosure Management System, and Investor Relations Management System, conscientiously fulfills its information disclosure obligations, discloses relevant information truthfully, accurately, completely, timely and fairly to ensure that all shareholders have fair access to company-related information. At the same time, the company attaches great importance to investor relations management and responds to investors' inquiries and questions through various forms such as investor telephone hotlines, interactive platforms, and online performance briefings, ensuring investors' rights to know and participate, and improving the transparency of the company's information disclosure.

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

There is no significant difference 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.

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

The company operates in strict accordance with the Company Law, Articles of Association and other laws, regulations and rules. It is independent from the controlling shareholders and actual controllers in terms of assets, personnel, finance, institutions, business, etc., and has an independent and complete business system and independent operating capabilities.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(1) Asset independence

The company has independent legal person assets, ownership or use rights of business premises, procurement and sales systems, real estate, equipment, intellectual property and other assets related to operations. It has full control over its assets and can organize and implement operations smoothly. The ownership of the company's assets is clear and complete, and there is no situation where they are occupied by the controlling shareholder and harm the company's interests.

(2) Personnel independence

The company has an independent workforce and has established and independently implemented labor, personnel and salary systems. The company's directors and senior managers are elected or appointed in accordance with the Company Law, the Articles of Association and other relevant regulations. The senior managers of the company all work in the company and receive remuneration. They do not hold any position other than directors and supervisors in the controlling shareholder, actual controller or other companies controlled by them, nor do they receive remuneration from the controlling shareholder, actual controller or other companies controlled by them. The company's financial personnel do not hold concurrent positions in the controlling shareholder, actual controller or other enterprises controlled by them.

(3) Financial independence

The company has established an independent financial department, equipped with independent financial personnel, established an independent financial accounting system and standardized financial management system, and can make financial decisions independently. The company has opened an independent bank account, independently reports taxes and performs tax obligations in accordance with the law. There is no situation of sharing bank accounts or mixed tax payments with the controlling shareholder.

(4) Institutional independence

The company has independent functional departments, which operate independently and well, and there is no subordination relationship with the functional departments of the controlling shareholder. The company, its controlling shareholder and other enterprises controlled by it have effectively separated their offices and business premises, and there is no mixed operation or shared office.

(5) Business aspects

The company's core business focuses on product development, manufacturing and commercialization of medical innovations. The company has the business premises, operational assets and qualifications to engage in business, and has an independent and complete management, procurement, logistics and distribution, sales and after-sales service system; the company has the ability to operate independently directly facing the market, has a complete business system, and is independent from the controlling shareholders, actual controllers and other companies controlled by them. There is no horizontal competition and no unfair related transactions.

3. Competition within the industry

□Applicable Not applicable

4. The company has arrangements for differential voting rights

□Applicable Not applicable

5. Corporate governance of red-chip structures

□Applicable Not applicable

6. Directors and senior managers

Basic situation

This issue This issue

Beginning of the period Others End of the period Increase in shareholdings Decrease in shareholdings

Term of office Term Shareholding Increase or decrease Shareholding Increase or decrease of tenure Shares Shares

Name Gender Age Position Start End Number Change Number Change Status Quantity Quantity

date date (share (share (share) original (share (share

) ) ) because) )

Director 2016 2028

Long, year 07 year 09

Fu Gang Male 55 Current 0 0 0 0 0 No menstrual period August 16

management day day

Song Qing Female 57 Director Current 2016 2028 0 0 0 0 0 None

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

August 16, 2016 Director 2016 2028 Zhu Xiao Director, Male in 2007 62 Current 0 0 0 0 0 Wu Wei Vice President August 16 Manager Date 2016 2028 Chen Hai Year 07 Male 63 Director Current 0 0 0 0 0 Wu Shen August 16, 2017 2028 Vice President 2009-09 Current position

Manager January 29th 16th Rizhang Yuan Female 50 Employees 0 0 0 0 0 None 2022 2028 Director

Year 08 Year 09 (formerly and currently

Appointed director on April 16th

daily affairs)

Vice President

reason,

2024 2028Finance

Year 12, Year 09, General, Incumbent

January 23, January 16,

Day Day 90,00 90,00Li Zhen Male 43 Director 0 0 0 None

0 0 secret

book

2025 2028-01-09 Director Current

August 16th, 2022 2028 Hao Xian Independent Year 08 Year 09 Male 60 Current 0 0 0 0 0 No experience Director Month 04/16 Day 2022 2028 Lu Yin Independent Year 08 Year 09 Female 63 Current 0 0 0 0 0 Wu Di Director April 16th Day HO

KWOK

2025 2028 WAI

Independent year 09 year 09 ANDY male 64 current 0 0 0 0 0 no director month 17 month 16 (he

Japan Japan

Wei)

2021 2028 Wang Bi Vice President Year 08 Year 09 Female 63 Current 0 0 0 0 0 Wu Quan Manager January 26, 16, 2021 2028 Wang Ting Vice President Year 12 Year 09 Male 47 Current 0 0 0 0 0 Wu Wei Manager January 13, 16 Day Fu Ming Female 75 Independent Resigned 2022 2025 0 0 0 0 0 None

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Zhong Director Year 08 Year 09

April 17

day day

90,00 90,00

Total -- -- -- -- -- -- 0 0 0 --

0 0

Is there any resignation of directors and senior managers during the reporting period?

Yes □No

In September 2025, Ms. Fu Mingzhong will no longer serve as an independent director of the company when her term expires.

Changes in directors and senior managers of the company

Applicable □Not applicable

Name Position held Type Date Reason

Fu Mingzhong Independent Director Resigned upon expiration of term of office September 17, 2025 Reelection

Employment status

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

(1) Mr. Fu Gang

Chairman, General Manager. Chinese nationality, no permanent residence abroad, born in May 1970, graduated from the Department of Clinical Medicine, Beijing Medical University. He once served as Qingdao office manager of Livzon Pharmaceutical Group Co., Ltd., deputy general manager and general manager of the marketing company, medical marketing director and vice president of marketing of the group company, and chairman and general manager of Qingdao Baiyang Pharmaceutical Technology Co., Ltd. Since the completion of the company's shareholding reform in July 2016, he has served as the company's chairman and general manager.

(2) Ms. Song Qing

Director. Chinese nationality, no permanent residence abroad, born in November 1968, graduated from Capital Medical University with a bachelor's degree in clinical medicine. He once served as the office manager and deputy general manager of the marketing company of Livzon Pharmaceutical Group Co., Ltd., a supervisor and director of Qingdao Baheal Pharmaceutical Technology Co., Ltd., and the deputy general manager of Baheal Pharmaceutical Group Co., Ltd. He is currently the director and general manager of Baheal Pharmaceutical Group Co., Ltd., the controlling shareholder of the company. Since the completion of the company's shareholding reform in July 2016, he has served as a director of the company.

(3) Mr. Zhu Xiaowei

Director and deputy general manager. Chinese nationality, no permanent residence abroad, born in February 1963, graduated from Lanzhou Medical College with a master's degree in pharmacology. He once served as the planning department manager of Livzon Pharmaceutical Group Co., Ltd., the deputy general manager of sales and marketing director of Hainan Qingqi Haiyao Pharmaceutical Co., Ltd., the general manager and chairman of Beijing Runanda Pharmaceutical Co., Ltd., and the deputy general manager and director of Qingdao Baiyang Pharmaceutical Technology Co., Ltd. Since the completion of the company's shareholding reform in July 2016, he has served as the company's director and deputy general manager.

(4) Mr. Chen Haishen

Director. Chinese nationality, no permanent residence abroad, born in August 1962, graduated from Hebei Medical University majoring in pharmacy. He once served as assistant to the general manager of the marketing company of Livzon Pharmaceutical Group Co., Ltd., and supervisor, general manager and director of Qingdao Baiyang Pharmaceutical Technology Co., Ltd. After the company's shareholding reform was completed in July 2016, he served as the company's deputy general manager from August 2022; after the company's shareholding reform was completed in July 2016, he serves as the company's director.

(5) Ms. Zhang Yuan

Employee Director and Deputy General Manager. Chinese nationality, no permanent residence abroad. Born in February 1975. He holds a bachelor's degree in pharmacy from Xi'an Medical University and a master's degree in business administration from China Europe International Business School. He once served as product specialist, product manager, and OTC marketing manager of the marketing department of Livzon Pharmaceutical Group Co., Ltd., OTC marketing manager and OTC marketing director of Qingdao Baiyang Pharmaceutical Technology Co., Ltd., and director of the public relations management department of Baiyang Pharmaceutical Group Co., Ltd. He has been the deputy general manager of the company since September 2017, a director of the company from August 2022 to September 2025, and an employee director of the company from September 2025 to the present.

(6) Mr. Li Zhen

Director, deputy general manager, financial director, secretary of the board of directors. Chinese nationality, no permanent residence abroad. Born in June 1982, he received a bachelor's degree in finance from Qingdao University, a master's degree in practical finance from the University of Wollongong, Australia, and a master's degree in professional accounting from the University of Sydney. He once served as auditor of KPMG Corporate Consulting (China) Co., Ltd. Qingdao Branch, manager of the audit department of Baheal Pharmaceutical Group Co., Ltd., financial director and board secretary and general manager of Qingdao Baheal Pharmaceutical Co., Ltd.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Assistant manager and investment director, vice president of capital operations of Baheal Pharmaceutical Group Co., Ltd., etc. From December 2024 to the present, he has served as the company’s deputy general manager, financial director, and board secretary. From January 2025 to the present, he has served as the company’s director.

(7) Mr. Hao Xianjing

Independent Director. Chinese nationality, no permanent residence abroad, born in October 1965, graduated from Liaoning University with a master's degree in economics, and is a certified public accountant. He once served as deputy director of Shandong Zhongheng Accounting Firm, director of Shandong Zhongxin Accounting Firm, director of Tianyi (Shandong) Accounting Firm, director and director of Zhonghe Zhengxin Accounting Firm, director of Shandong Zhonghe Zhengxin Risk Management Consulting Co., Ltd., independent director of Inspur Electronic Information Industry Co., Ltd., independent director of Warburg Pincus Information Technology Co., Ltd., and independent director of Tianguang Zhongmao Co., Ltd. Currently, he is the vice president and partner of ShineWing Accounting Firm (Special General Partnership), independent director of Rongchang Biopharmaceutical (Yantai) Co., Ltd., and independent director of Zaozhuang Bank Co., Ltd. From August 2022 to present, he serves as an independent director of the company.

(8) Ms. Lu Yindi

Independent Director. Chinese nationality, no permanent residence abroad, born in January 1962, EMBA from INSEAD Business School in France. He once served as executive deputy general manager and general manager of Suzhou Food and Drug Administration, national senior commercial director of Eli Lilly and Company Asia, general manager of Eli Lilly Suzhou Trading Co., Ltd., vice president of Beijing Wanhu Liangfang Technology Co., Ltd., and independent director of Hunan Dajia Weikang Pharmaceutical Industry Co., Ltd. Currently, he is the senior vice president of China Pharmaceutical Business Association, independent director of Nanjing Pharmaceutical Co., Ltd., and independent director of Jiuzhoutong Pharmaceutical Group Co., Ltd. From August 2022 to present, he serves as an independent director of the company.

(9) Mr. HO KWOK WAI ANDY

Independent Director. Canadian nationality, with permanent residence in mainland China and Hong Kong. Born in September 1961, graduated from the Chinese University of Hong Kong. He once served as President of Philips (China) Investment Co., Ltd. Now retired. From September 2025 to present, he serves as an independent director of the company.

(10) Ms. Wang Biquan

Deputy General Manager. Chinese nationality, no permanent residence abroad. Born in November 1962. Graduated from Shanghai Second Military Medical University with a bachelor's degree in medicine and an EMBA from China Europe International Business School. He once served as the general manager of the business department of Sino-US Shanghai Bristol-Myers Squibb Pharmaceutical Co., Ltd., the general manager of the business department of Qingdao Baiyang Pharmaceutical Technology Co., Ltd., and the general manager of Beijing Baiyang Dacheng Pharmaceutical Technology Co., Ltd. From August 2021 to present, he serves as the deputy general manager of the company.

(11) Mr. Wang Tingwei

Deputy General Manager. Chinese nationality, no permanent residence abroad, born in February 1978, graduated from Peking University with a master's degree in business administration. He has worked for Haihong Enterprise (Holdings) Co., Ltd. (now renamed Guoxin Health Security Services Group Co., Ltd.), Thomson Reuters Group, Shanghai Jibo Investment Management Consulting Co., Ltd. (GBI) and other companies. He joined Baheal in April 2016 and served as Director of Business Development Department and Vice President of Baheal Pharmaceutical Group Co., Ltd. From December 2021 to present, he serves as the deputy general manager of the company.

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

Applicable □Not applicable

The chairman and general manager of the company are served by Mr. Fu Gang, the actual controller. Except for serving in the company, Mr. Fu Gang has not held any other positions other than directors in other companies controlled by controlling shareholders or actual controllers, which complies with the requirements for personnel independence in the "Code of Governance of Listed Companies". The company ensures the scientificity and independence of decision-making by establishing and improving internal control systems and giving full play to the role of independent directors and audit committees.

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

Baheal Pharmaceutical Group has May 10, 2011

Fu Gang Chairman No

Co., Ltd. Day

Beijing Baiyang Chengchuang Medical Director (former director March 06, 2002

Fu Gang No

Drug Research and Development Co., Ltd. long) day

Tianjin Huitong Asset Management

December 07, 2015

Fu Gang manages the partnership (with executive partner No

day

limited partnership)

Tianjin Haohui Asset Management

December 07, 2015

Fu Gang manages the partnership (with executive partner No

day

limited partnership)

Fu Gang Tianjin Huizhong Asset Management Executive Partner December 07, 2015 No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Management partnership (with date

limited partnership)

Tianjin Huitong Asset Management

December 07, 2015

Fu Gang manages a partnership (with executive partner, no date)

limited partnership)

Baheal Pharmaceutical Group has November 14, 2014

Song Qing Director, General Manager No Co., Ltd. Day

Beijing Baiyang Chengchuang Medical March 06, 2002 May 23, 2025

Song Qing Director and General Manager Shiyao R&D Co., Ltd. Day Day

Beijing Baiyang Chengchuang Medical May 23, 2025

Song Qing Chairman Shiyao R&D Co., Ltd. Japan

Baheal Pharmaceutical Group has November 14, 2014

Zhu Xiaowei Director No Limited Company Date

Beijing Baiyang Chengchuang Medical March 06, 2002

Zhu Xiaowei Director Fuyao R&D Co., Ltd. Japan

Baheal Pharmaceutical Group has May 10, 2011

Chen Haishen Director Is Co., Ltd. Day

Beijing Baiyang Chengchuang Medical May 13, 2005

Chen Haishen Director Fuyao R&D Co., Ltd. Japan

Baheal Pharmaceutical Group has December 20, 2024

Zhang Yuan Director No limited company Date

Beijing Baiyang Chengchuang Medical May 23, 2025

Zhang Yuan Director Fuyao R&D Co., Ltd.

Baheal Pharmaceutical Group has December 20, 2024

Li Zhen Director No Limited Company Date

Beijing Baiyang Chengchuang Medical May 23, 2025

Li Zhen Director No

Pharmaceutical Research and Development Co., Ltd.

Working in a shareholder unit

None

Description of the situation

Employment status in other units

Applicable □Not applicable

Served in other units Name of person who holds office in other units Name of other unit Term start date Term end date

Position Receive remuneration and allowance Beijing Baiyanghui Kangke

May 07, 2025

Fu Gang Technology Innovation Development Co., Ltd. Chairman Fu Ri

company

Beijing Baiyang Tongxing Management April 3, 2025

Fu Gang, Director, Fuli Consulting Co., Ltd., Japan

Beijing Baiyang Zhixinyi September 9, 2025

Fu Gang Director Fuxue Research Co., Ltd. Japan

Qingdao Bodhi Medical

January 26, 2014

Fu Gang Chairman of the Academy Management Group Co., Ltd. No Day

company

Anshi Pharmaceutical (China October 25, 2007

Fu Gang Director and Vice Chairman Fushan Co., Ltd.

Hongshi Sunshine Health Department

August 14, 2015

Fu Gang Technology (Beijing) Co., Ltd. Director No Day

company

Beijing Baiyang Zhongxinkang

August 4, 2016

Fu Gangjian Investment Management Co., Ltd. Director No Day

company

Zhongshan Anshi Investment Holdings May 22, 2016

Fu Gang, Director, No-share Co., Ltd., Date

Qingdao Baiyang Health Products May 15, 2020 September 11, 2025

Fu Gang Chairman No

Industrial Park Co., Ltd. Day Day

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

company

Qingdao Baiyang Bodhisattva December 31, 2020

Fu Gang Director Fuwu Diagnostic Co., Ltd. Japan

Director of Beijing Baiyang Sumai Medical (former executive November 10, 2022

Fu Gang Director of Fure Technology Co., Ltd.) Day

Baiyang Zhihe Holdings has November 25, 2022

Fu Gang Director No Limited Company (BVI) Date

Beijing Enreni Biotechnology

March 03, 2022

Fu Gang Technology Co., Ltd. Director No Day

Division

Baiyang Investment Group has July 26, 2012

Fu Gang Director No Co., Ltd. (HK) Day

Hong Kong Feng International Industrial Group

November 08, 2005

Fu Gang Tuan Co., Ltd. Director No Day

(HK)

Hong Kong Scienjoy Advertising Control

August 30, 2013

Fu Gang Co., Ltd. Director No Day

(BVI)

Baiyang New Media Investment July 16, 2013

Fu Gang Director No Limited Company (BVI) Date

Hong Kong Jianxin International Investment

June 06, 2014

Fu Steel Co., Ltd. Director No Day

(BVI)

Baheal International Pharmaceutical Control

July 27, 2016

Fu Gang Co., Ltd. Director No Day

(BVI)

Weitain Health USA

October 22, 2013

Fu Gang Industrial Group Co., Ltd. Director No Day

Division (BVI)

Baiyang Health Industry Investment

October 22, 2013

Fu Steel Co., Ltd. Director No Day

(BVI)

Baheal America Investment Co., Ltd.

Co., Ltd. June 06, 2016

Fu Gang Director No (BahealInvestm

ent USA, INC.)

Baiyang Ruisheng Investment March 13, 2023

Fu Gang Director No Co., Ltd. (HK) Day

Baiyang Health Investment January 9, 2023

Fu Gang Director No Limited Company (BVI) Date

Baiyang Investment Group has November 29, 2022

Fu Gang Director No Co., Ltd. (Cayman) Day

Baiyang Zhixin Co., Ltd. March 07, 2024

Fu Gang Director No company (BVI) date

Beijing Baiyanghui Kangke

May 07, 2025

Song Qing Technology Innovation Development Co., Ltd. Director and Manager No Day

company

Beijing Baiyang Tongxing Management April 3, 2025

Song Qing Manager Fuli Consulting Co., Ltd. Japan

Beijing Baiyang Gongxing Management April 3, 2025

Song Qing Director, Manager Fouli Consulting Co., Ltd.

Beijing Baiyang Sumai Medical February 28, 2025

Song Qing Manager Fure Technology Co., Ltd. Japan

Beijing Baiyangjia Health September 28, 2025

Song Qing Chairman Fou Management Co., Ltd. Day

Qingdao Huisheng Hospital Management June 8, 2015

Song Qing Executive Director, Manager No

Management Consulting Co., Ltd.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Beijing Yuanrong Health Medical Hospital January 15, 2018 April 14, 2025

Song Qing Executive Director, Manager Fuyuan Management Co., Ltd. Day Day

Qingdao Baiyang Zhuo Zhengzhi

September 20, 2018 June 19, 2025

Song Qing Hui Health Industry Management Executive Director Nori

Ltd.

Qingdao Yijiayuan Health

August 08, 2019 September 30, 2025

Song Qing Management Services Group has Executive Director No Day Day

Ltd.

Qingdao Baiyang Bodhisattva Director (formerly executive June 20, 2019

Song Qing Director and Chairman of Fuwu Diagnostics Co., Ltd.) Day

Qingdao Bodhi Medical

January 26, 2014

Song Qing Director and General Manager of Yuan Management Group Co., Ltd. No day

company

Beijing Baiyang Zhongxinkang

April 03, 2014

Song Qingjian Investment Management Co., Ltd. Director No day

company

Qingdao Baiyang Health Products

September 4, 2014 September 11, 2025

Song Qing Industrial Park Co., Ltd. Director No Day Day

company

Qingdao Yichuang Wenhejian

June 03, 2020 June 09, 2025

Song Qing Kang Industrial Development Co., Ltd. Executive Director No Day Day

company

Beijing Boyu Weikangxin April 28, 2020

Song Qing Director Fuxi Technology Co., Ltd. Japan

Qingdao Baiyang Chenxinqi

February 25, 2020

Song Qing, Executive Partner, Business Management Service Center, No Day

(limited partnership)

Qingdao Baiyang Juren Enterprise

February 25, 2020

Song Qing, Executive Partner, Business Management Service Center, No Day

(limited partnership)

Baiyang Investment Group has July 26, 2012

Song Qing Director No Limited Company (HK) Day

Qingdao Baiaoxin Enterprise

October 28, 2020

Song Qing Management Services (Limited) Executive Partner No Day

partnership)

Beijing Pengyi Times People

May 19, 2021

Song Qing Human Resources Development Co., Ltd. Director No Day

company

Qingdao Baiyang Oasis Home May 06, 2021 April 11, 2025

Song Qing Executive Director Fuyuan Hotel Co., Ltd. Day Day

Baiyang Zhirong Holdings has November 25, 2022

Song Qing Director No Limited Company (BVI) Date

Director of Sanya Baiyang Zhihe Investment (formerly executive January 15, 2024

Song Qing (Director of Fuzi Holdings Co., Ltd.)

Beijing Baiyang Guoxin Medical Center November 22, 2023 September 9, 2025

Song Qing Director Fuyong Technology Co., Ltd. Day Day

Hebei Baiyang Chengchuang Medical March 22, 2024

Song Qing Executive Director Fuyao Development Co., Ltd.

Baiyang Zhiji Co., Ltd. March 07, 2024

Song Qing Director No Company (BVI) Day

Baiyang Zhongxin Health Products

February 4, 2025

Song Qingye Investment Co., Ltd. Director No Day

(HK)

Beijing Baiyanghui Kangke

May 07, 2025

Zhu Xiaowei Technology Innovation Development Co., Ltd. Director No Day

company

Zhu Xiaowei Director of Beijing Baiyang Yongjian Management April 3, 2025 No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Management Consulting Co., Ltd.

Anshi Pharmaceutical (China March 10, 2004

Zhu Xiaowei Director Fushan Co., Ltd. Day

Zhongshan Anshi Investment Holdings May 22, 2016

Zhu Xiaowei Director, No Shares Co., Ltd., Day

Baheal America Investment Co., Ltd.

Ltd. (Baheal June 06, 2016

Zhu Xiaowei Director No Investment USA, Japan

INC.)

Baiyang Investment Group has July 26, 2012

Zhu Xiaowei Director No Limited (HK) Day

Hong Kong Huida Holdings Group

October 15, 2005

Zhu Xiaowei Tuan Co., Ltd. Director No day

(HK)

Baheal International Pharmaceutical Control

July 27, 2016

Zhu Xiaowei Co., Ltd. Director No Day

(BVI)

Zhongshan Anshi Biological Manufacturing September 29, 2015

Zhu Xiaowei Supervisor Fuyao Co., Ltd. Day

Baiyang Zhiyang Holdings has November 25, 2022

Zhu Xiaowei Director No Limited Company (BVI) Date

Beijing Jiluntai Medicine July 11, 2023

Zhu Xiaowei Director No Limited Company Date

Baiyang Zhitong Co., Ltd. March 07, 2024

Zhu Xiaowei Director Fose Company (BVI) Day

Beijing Baiyanghui Kangke

May 07, 2025

Chen Haishen Technology Innovation Development Co., Ltd. Director No day

company

Beijing Baiyang Yongkang Management April 08, 2025

Chen Haishen Director, Manager Fouli Consulting Co., Ltd.

Hong Kong Huida Holdings Group

October 15, 2005

Chen Haishen Director of Tuan Co., Ltd. No day

(HK)

Baiyang Investment Group has July 26, 2012

Chen Haishen Director No Limited (HK) Day

Baiyang Zhixin Holdings has November 25, 2022

Chen Haishen Director No Limited Company (BVI) Date

Baiyang Zhiguang Co., Ltd. March 07, 2024

Chen Haishen Director Fose Company (BVI) Day

Baheal America Investment Co., Ltd.

Ltd. (Baheal June 06, 2016

Zhang Yuan Director No Investment USA, Japan

INC.)

Beijing Wuweikang Technology May 22, 2023

Zhang Yuan Director No Limited Company Date

Beijing Baiyangjia Health January 10, 2025 September 28, 2025

Zhang Yuan Director Fou Management Co., Ltd. Day Day

Aiyuan Holdings Co., Ltd. July 30, 2024 April 08, 2025

Zhang Yuan Director Fose Company (BVI) Day Day

Baiyang Investment Group has March 18, 2025

Zhang Yuan Director No Limited Company (HK) Date

Qingdao Baiyang Health Products

March 23, 2023 September 11, 2025

Li Zhen Industrial Park Co., Ltd. Director No Day Day

company

Anshi Pharmaceutical (China December 17, 2024

Li Zhen Supervisor No

Mountain) Co., Ltd. Japan

Li Zhen Qingdao Bodhikang Medical Executive Director September 15, 2022 March 19, 2025 No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Healthcare Industry Investment Day Day

Ltd.

Zhongshan Anshi Investment Holdings December 19, 2024

Li Zhen Supervisor Fugu Co., Ltd. Day

Hongshi Sunshine Health Department

August 14, 2015

Li Zhen Technology (Beijing) Co., Ltd. Supervisor No day

company

Qingdao Baiyang Insurance Company

December 30, 2024

Li Zhen Industrial Services Co., Ltd. Director No day

company

Beijing Baiyang Zhongxinkang

April 11, 2024

Li Zhenjian Investment Management Co., Ltd. Chairman No day

company

Beijing Boyu Weikangxin April 13, 2015

Li Zhen Supervisor Fuxi Technology Co., Ltd. Day

Tianjin Zhihe Yongshengke

May 29, 2023

Li Zhen Technology Development Partnership Executive Partner No Day

(limited partnership)

Beijing Houdaoying Cardiology Department

November 21, 2024

Li Zhen Technology Development Partnership Executive Partner No Day

(limited partnership)

Baiyang Investment Group has March 18, 2025

Li Zhen Director No Co., Ltd. (HK) Day

Baiyang Zhongxin Health Products

February 4, 2025

Li Zhenye Investment Co., Ltd. Director No day

(HK)

ShineWing Accountants

October 01, 2009

Hao Xianjing, vice president of the law firm (Special General Counsel), today

through partnership)

Jinan Shine Wing Zhonghe Tax

December 28, 2017

Hao Xianjing, Supervisor of Law Firm Co., Ltd. No date

company

Rongchang Biopharmaceutical

May 12, 2020

Hao Xianjing (Yantai) Co., Ltd. has independent directors on this day

Ltd.

ShineWing Accountants

Firm (Special General July 24, 2012

Hao Xianjing, person in charge of Futong Partnership) Jinan Branch

place

Zaozhuang Bank Co., Ltd. March 30, 2023

Hao Xianjing Independent Director Is Co., Ltd.

China Pharmaceutical Business Association August 1, 2017

Lu Yindi Senior Vice President Will you meet?

Jiuzhoutong Pharmaceutical Group November 05, 2020

Lu Yindi Independent Director Is a joint-stock company?

Nanjing Pharmaceutical Co., Ltd. April 28, 2022

Lu Yindi Independent Director Yes

Co., Ltd. Day

HO KWOK WAI China Medical Technology Stocks January 17, 2020 January 23, 2025

Director No ANDY (He Guowei) Co., Ltd. Day Day

Qingdao Baiyang Bodhisattva July 9, 2021

Wang Biquan Director Fuwu Diagnostics Co., Ltd.

Beijing Huanan Shulinwen June 18, 2008

Wang Biquan Supervisor Fuhua Development Co., Ltd. Day

Beihai Kangcheng Pharmaceutical Co., Ltd. August 27, 2025

Wang Tingwei Non-executive Director No Limited (Cayman) Japan

Tianjin Jikun Pharmaceutical Department October 10, 2025

Wang Tingwei Director No

Technology Co., Ltd. Japan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Japan Beauty Health Pharmaceuticals (China January 12, 2024

Wang Tingwei Director Fuguo) Co., Ltd. Japan

Zap Medical November 30, 2024

Wang Tingwei Director No System, Ltd.

Tianjin Baiyang Hospital has March 13, 2026

Wang Tingwei Chairman No

Co., Ltd. Day

Working in other units

None

Description of the 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

Decision-making procedure: The remuneration of the company's directors is reviewed and determined by the company's shareholders' meeting, and the remuneration of senior managers is reviewed and determined by the company's board of directors.

Determination basis: The company's shareholders meeting approved that directors who hold concurrent administrative positions in the company will receive remuneration in accordance with the remuneration standards determined by the company, and will not receive additional director remuneration; directors who do not hold concurrent administrative positions in the company will not receive additional director remuneration; the annual remuneration for each independent director is 250,000 yuan (before tax); the remuneration of the company's senior managers is determined based on market conditions, job scope of responsibility and company operating performance.

Actual payment status: The remuneration of the company's independent directors and senior managers has been paid in full.

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 Joint parties receive remuneration

Chairman, General Manager

Fu Gang Male 55 Current 397.291 No

reason

Song Qing Female 57 Director Current 0 Yes

Director, Deputy General Manager

Zhu Xiaowei Male 62 Current 356.47 No

reason

Chen Haishen Male 63 Director Current 0 Yes

Employee Director, Deputy

Zhang Yuan Female 50 Current 289.29 No General Manager

Director, Deputy General Manager

Manager, Chief Financial Officer

Li Zhen Male 43 Incumbent 302.63 Supervisor, Secretary of the Board of Directors

book

Hao Xianjing Male 60 Independent Director Current 25 No Lu Yindi Female 63 Independent Director Current 25 No HO KWOK WAI

ANDY (He Guo Male 64 Independent Director Current 7.16 Fu Wei)

Wang Biquan Female 63 Deputy General Manager Current 273.07 No Wang Tingwei Male 47 Deputy General Manager Current 316.49 No Fu Mingzhong Female 75 Independent Director Resigned 17.84 Yes 2 Total -- -- -- -- 2,010.24 --Note: 1 The total pre-tax remuneration received from the company in 2025 includes: basic salary, bonuses, subsidies, welfare fees, social security and provident fund borne by individuals and the company; for those who leave during the reporting period, the remuneration amount shall be the total remuneration received during the period of employment during the reporting period.

2 Ms. Fu Mingzhong received remuneration while serving as an independent director of Suzhou Tongxin Medical Technology Co., Ltd., a related party of the company.

According to the "Measures for the Administration of Subsidies for Independent Directors" and the "Assessment Basis for the Actual Remuneration of All Directors and Senior Management at the End of the 2025 Senior Management Reporting Period"

Compensation Plan" and other company specific rules and regulations, company compensation system and performance evaluation

Nuclear system determined

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

Other information

□Applicable Not applicable

7. 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

Fu Gang 9 7 2 0 0 No 4 Song Qing 9 4 5 0 0 No 4 Zhu Xiaowei 9 1 8 0 0 No 4 Chen Haishen 9 0 9 0 0 No 4 Zhang Yuan 9 5 4 0 0 No 4 Li Zhen 9 3 6 0 0 No 4 Hao Xianjing 9 0 9 0 0 No 4Lu Yindi 9 2 7 0 0 No 4 HO KWOK

WAI ANDY 5 1 4 0 0 No 1 (He Guowei)

Fu Mingzhong 5 2 3 0 0 No 4Explanation for not attending the board of directors in person for two consecutive times

Not applicable

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

During the reporting period, all directors of the company performed their duties diligently and diligently, actively paid attention to the company's standardized operations and business conditions, and were able to discuss in depth various proposals submitted to the board of directors for review, express their opinions, provide suggestions for the company's business development, and effectively safeguard the legitimate rights and interests of the company and all shareholders.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

8. 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)

About the whole

Subsidiary signature

Custom manufacturing services

Agreement and daily routine

Related party transactions

motion; 2.

About 2024

Review the company’s annual related communications

2024 daily confirmation and

Regular related party transactions in 2025

Actual Amount of Regular Related Transactions

and the expected negotiations in 2025

Degree of daily related cases; 3. Close

01, 2025 The transaction is expected to be in the wholly-owned subsidiary. No. 23rd. Reasonable and fair company subscription investment.

nature, planned fund shares and

Related party transactions Related party transactions

Fairness and proposals; 4. Audit Committee

Relevant systems are formulated and strictly followed

Reasonable "Internal Control" Company Law

sex.

Management System" "Company Chapter"

Proposal; Process" "Directors

Regarding the establishment of special committee members

Determine the details of the "internal control meeting"

"System Evaluation Management Rules" and other rules

The Audit Committee carried out its work in accordance with the resolutions of Hao Xianjing and the Payment Measures.

Ming Zhong and Song Qing cases. Be diligent and conscientious,

Accounting firm according to the company’s

Regarding the actual situation in 2024, listen to the audit into 2025 04

The annual audit work presented relevant progress reports and submitted them on May 11th

Comment on the progress of the work and make suggestions after the review. report, fully communicate and discuss

Regarding the discussion, unanimous agreement

2024 financial year passes all proposals

Final accounts report.

motion; review company

Proposal on the quarterly operation and use of the first set of funds raised in 2024 and 2024, and the special report in 2024 on the deposit and use of funds raised in 2024. Storage and use

February 22nd 3. Regarding the effectiveness of the audit of the department's control and evaluation of the performance of the organization's duties in 2024, and the internal auditor's report; 4. The fairness of the Annual Report on Related Transactions to Be Occurred in 2024. and its abstract

motion; 5.

About 2024

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

annual internal audit

Planning work summary

cum 2025

Degree Internal Audit

work planned

motion; 6.

About the Board of Directors

audit committee

Accountants

Firm 2024

annual performance supervision

Supervision responsibilities

report’s proposal

case; 7. close

In "2025

first quarter report

"Announcement"

case; 8. close

in 2025

within one quarter

Ministry audit work

Summary and Season 2

Degree Internal Audit

work planned

motion; 9.

About the wholly-owned subsidiary

company signatory

industrial cooperation association

discussion and relations

Yi's motion.

About

"2025 half

Annual Report

and its abstract

motion; 2.

About 2025

Semi-annual fundraising

2025 half-year proposal to review the deposit, management and use of raised funds in the first half of 2025 and special reports; 3. The deposit and use of raised funds in 2025 08 Accounting firm situation and renewal meeting

Proposal on March 26th; Information about audit institutions

Regarding the internal audit work report and status of the internal audit work in the first half of 2025 and the revision of the relevant system in the second half of 2025. work planned

motion; 5.

About revision

"Internal Control

Evaluation Management Office

discussion on the Law

case.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

About hiring

Served as financial director

Proposal; Review the proposed appointment in 2025 09

Regarding the employment of personnel No. 17

Qualifications for appointment as internal audit department.

The person in charge’s opinion

case.

About

"2025 No.

third quarter report

"Announcement"

case; 2. close

Review the company's participation in the sale of shares

Company equity in the third quarter of 2025 and

Business conditions of Hao Xianjing and HO related transactions

On October 28, 2025, the proposal to sell KWOK WAI shares; 3. The public ANDY of the rights price on October 28, 2025 (He Guo's statement on "2025

Yun Xing and Nei Wei), Song Qingnian in the third quarter

Ministry audit work Internal auditor

situation.

Summary and Chapter

Internal fourth quarter

Audit work plan

"Planning" proposal

case.

About Guan

The joint review will be completed in November 2025 as a wholly-owned subsidiary of the United Nations.

Subsidiary capital increase Yi's fairness No month 19

and related party transactions.

motion.

The company will listen to the audit plan in December 2025

2025 Annual Plan Review and Proposal Proposal No. 29

planning plan. discussion.

Regarding remuneration and assessment, the senior management committee will strictly review the remuneration of senior management personnel in 2025. 04

Level management personnel in accordance with the "Basic Principles of the Company" No. 22

"Remuneration Plan Act" "Company and Remuneration Standards Proposal." "Articles of Association" "Dong Zhun."

special committee of the board of directors

Committee work details

Rules such as

Salary and Appraisal Lu Yindi and Hao started work,

Committee Xianjing, Song Qing 1. About the Article: Diligent and conscientious,

Review the non-independent fourth session of the Board of Directors based on the company’s

2025-08 Actual situation of director remuneration for non-independent directors, No. 26. Basic principles and remuneration proposals raised relevant

Pay scale. case. opinion, passing

Fully communicate and discuss

discuss, unanimously

Passed all proposals

case.

About the Nomination Committee

The name of the fourth term of directors shall be strictly followed

The board of directors is not independent Company Law

Review and Nomination Committee of Directors Fu Mingzhong, Lu 2025-08 Director Candidates "Corporate Articles"

Qualifications of directors No. Yindi and Fu Gang's motion on 26th March; "Process" "Director"

Grid.

Regarding the special committee meeting

Details of the work of the fourth session of the Board of Directors

"Independent Directors of the Board of Directors" and other rules

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

to carry out work on candidates,

motion. Be diligent and conscientious,

According to the company's

actual situation,

HO KWOK

Regarding employment, relevant

WAI ANDY reviews proposed appointments

Appointed senior management in September 2025. Opinions, passed

(He Guo’s personnel’s position: None

Staff meeting on 17th, full communication and discussion

Wei), Lu Yin qualifications.

case. discuss, unanimously

Di, Fu Gang

Passed all proposals

case.

9. 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.

10. 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) 964 Number of active employees of major subsidiaries at the end of the reporting period (person) 1,529 Total number of active employees at the end of the reporting period (person) 2,493 Total number of employees receiving salaries during the current period (person) 3,498 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 243 sales staff 1,780 technical staff 54 financial staff 126 administrative staff 124 purchasing and warehousing staff 166 total 2,493 education level

Education level category Number (person)

Master's degree and above 168 Undergraduate degree 989 College degree 949 Technical secondary school degree and below 387 Total 2,493

Remuneration policy

In order to standardize the company's salary management and establish value distribution and internal incentive mechanisms, the company has formulated a competitive salary management system. In the salary design, the company fully considers the basic principles of matching salary with job value and being oriented towards increasing incentives, while taking into account competitiveness and fairness. The company's salary design is closely related to the performance status of the company, team and individuals. The results of performance appraisal are used as the direct basis for determining salary and remuneration, and employees are encouraged to realize their personal self-worth.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

And ultimately ensure the realization of corporate strategic goals. The company implements a salary budget management mechanism. The salary structure mainly includes three aspects: wages, bonuses, and benefits. Employees' salaries are regularly adjusted based on the company's overall efficiency and business development, salary levels in the same industry, and employee personal performance to effectively protect the interests of employees.

Training plan

The company attaches great importance to employee training and development, continuously improves the construction of the talent system, has established a series of effective employee training plans and training programs, and established a people-oriented career development and management training system to help each employee realize their self-worth. During the reporting period, the company developed a clear learning path map for employees in accordance with the employee career development path in line with the company's strategy and organizational goals, integrating employees' personal improvement with the company's development plan, and implemented the training work into regular work through the "online + offline" dual mode and a combination of internal and external training. Through new employee induction training, we encourage new employees to integrate into the group as soon as possible and perform their job responsibilities; through job professional skills training, we can achieve a win-win situation between improving our professional abilities and the sustainable development of the company; through management and leadership training, we can gather an excellent management backbone team; and finally, through a series of training courses and continuous review and improvement, we can promote the continuous progress of the organization and individuals, and achieve the dual development of the company and individuals.

Labor outsourcing situation

□Applicable Not applicable

11. Company profit distribution and conversion of capital reserve into share capital

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

Applicable □Not applicable

The "Articles of Association" state the company's profit distribution policy, and the relevant provisions are in compliance with the China Securities Regulatory Commission's "Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends by Listed Companies" and other relevant documents. During the reporting period, the company strictly implemented this policy.

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?

Yes

Transparent:

The company's profit distribution plan for the reporting period and capital reserve conversion plan are consistent with the relevant provisions of the company's articles of association and dividend management measures.

Yes □No □Not applicable

The company's profit distribution plan for the reporting period and capital reserve conversion plan are in compliance with the relevant provisions of the company's articles of association and other provisions.

Profit distribution and capitalization of capital reserve this year

Number of bonus shares for every 10 shares (shares) 0 Number of dividends for every 10 shares (yuan) (tax included) 5.71 Number of conversions for every 10 shares (shares) 0 Base number of share capital of the distribution plan (shares) 525,624,077 Cash dividend amount (yuan) (tax included) 300,131,347.97

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Amount of cash dividends distributed in other ways (such as repurchasing shares) (yuan) 0.00 Total cash dividends (including other ways) (yuan) 300,131,347.97

Distributable profit (yuan) 393,580,867.01 Ratio of total cash dividends (including other methods) to total profit distribution 100.00%

Cash dividend distribution this time

Others

Detailed explanation of profit distribution or capital reserve conversion plan

The company held the sixth meeting of the fourth session of the Board of Directors on April 27, 2026, and unanimously reviewed and approved the "Proposal on the Profit Distribution Plan for 2025". The specific contents are as follows: After auditing by BDO Accounting Firm (Special General Partnership), as of December 31, 2025, the distributable profits in the company's consolidated statements were 1,588,859,913.17 yuan, and the distributable profits in the parent company's statements were 1,588,859,913.17 yuan. 393,580,867.01 yuan. According to the principle of the lower of the distributable profit in the consolidated statement and the parent company's statement, the company's distributable profit in 2025 is 393,580,867.01 yuan. In order to actively reward shareholders and based on the company's actual operating conditions, the company has formulated a profit distribution plan for 2025 as follows: As of March 31, 2026, the company's total share capital is 525,624,077 shares. Based on this, a cash of 5.71 yuan (tax included) will be distributed to all shareholders for every 10 shares, and a total cash distribution of 300,131,347.97 yuan (tax included) is planned. This year, the company will not issue bonus shares or convert them into share capital. If between April 1, 2026 and the equity registration date for the implementation of equity distribution, the company's total share capital changes due to conversion of convertible corporate bonds and other reasons, the company will adjust the distribution ratio accordingly based on the principle that the total amount of cash dividends will remain unchanged. If there are subsequent changes in share capital, specific adjustments will be announced separately.

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

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

□Applicable Not applicable

The company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and their implementation during the reporting period.

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

Construction and implementation of internal control

(1) During the reporting period, the company continued to improve the internal control system. In accordance with the provisions of the "Basic Standards for Enterprise Internal Control" and its supporting guidelines, the company comprehensively sorted out and revised the work business processes and internal control systems of each department and business segment of the company. Through the operation, analysis and evaluation of the internal control system, the company effectively prevented risks in operation and management and promoted the realization of internal control objectives.

(2) Sort out and improve the functions and responsibilities of the audit committee of the board of directors and the internal audit department, strengthen the exercise of supervisory power under the leadership of the board of directors, strengthen the internal audit department's supervision of the implementation of the company's internal control system, ensure the effective implementation of the internal control system, effectively improve the company's standard and effective operation level, and promote the company's healthy development.

(3) According to the identification standards for major defects in the company’s internal control over financial reporting, on the base date of the internal control evaluation report, there were no major defects in the internal control over financial reporting; according to the identification criteria for the company’s identification of major defects in internal control over non-financial reporting, on the base date of the internal control evaluation report, the company found no major defects in internal control over non-financial reporting.

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

□Yes No

14. 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

Hebei Baiyang Sapu Company or controlled subsidiary

Medical Equipment Technology Company Holdings Merger Completed None - - -

Ltd. The company

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Beijing Baixin Kangda Company or controlled subsidiary

Medical Device Co., Ltd. Holdings merger completed None - - -

company the company

Company or holding subsidiary

Baiyang Pharmaceutical (Guangdong)

Company holding merger completed None - - -

East) Co., Ltd.

the company

Beijing Baiyang Chunsheng Company or controlled subsidiary

Medical Technology Co., Ltd. holding merger completed None - - -

company the company

Hangzhou Baiyang Zhili Company or controlled subsidiary

Medical research services company holding merger completed None - - -

Ltd. The Company

Abnormalities in management control of subsidiaries

□Yes No

15. Internal control evaluation report and internal control audit report

Internal control evaluation report

Date of disclosure of the full text of the internal control evaluation report: April 29, 2026

"Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Internal Control Evaluation Report" Full Text Disclosure Index of Internal Control Evaluation Report on April 29, 2026

It was disclosed on the 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

93.00% 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

99.00% and the proportion of operating income in financial statements

Defect identification standards

Category Financial Reporting Non-Financial Reporting

Major defects: (1) serious violation of national laws and regulations and causing heavy losses; (2) public
Major defects: (1) Directors and senior managers

The company's decision-making violated procedures and resulted in major mistakes; employees committed fraud; (2) The company's audit committee

(3) There are institutional deficiencies or systematic misunderstandings in important business and the audit department’s supervision of internal controls is ineffective;

(4) Middle and senior management personnel and senior technology (3) External audit found that there are

Staff turnover is serious.

material misstatement, and the company’s internal controls have

Important deficiencies: (1) There is a missing standard in the decision-making process. The misstatement was not discovered during the decision-making process.

Failure may lead to general mistakes; (2) Violation of corporate

Important defects: (1) Failure to comply with generally accepted accounting standards

internal regulations of the industry, resulting in losses; (3) selection and application of accounting policies for key positions; (2) failure to establish

There was a serious loss of business personnel; (4) Internal control anti-fraud procedures and control measures.

Major or general defects have not been rectified.

General defects: do not constitute major defects and are important
General defects: (1) Internal control defects that violate the company’s internal regulations.

chapter, no loss has been caused; (2) There are defects in general business systems or processes.

Major defects: (1) The amount of misstatement ≥ total assets

1% of the amount; (2) The misstatement amount ≥ the total profit

5%.

Important defects: (1) Total assets

0.5% ≤ misstatement amount < 1% of total assets; refer to the quantitative standards for the evaluation of internal control deficiencies in financial reporting

(2) 3% of total profit ≤ misstatement amount < profit and volume standards shall be implemented.

5% of total profit.

General defects: (1) Misstatement amount < total assets

0.5% of the amount; (2) Amount of misstatement < total profit

3%.

Number of major defects in financial reports (number) 0

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

Lixin Accounting Firm (Special General Partnership) believes that Baheal Pharmaceutical has 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 29, 2026

"Qingdao Baiyang Pharmaceutical Co., Ltd. Internal Control Audit Report" 2026 Internal Control Audit Report Full Text Disclosure Index

On April 29, 2019, the opinion type of the internal control audit report was disclosed on the cninfo.com (www.cninfo.com.cn): 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

16. Rectification of self-examination issues under special action on governance of listed companies

Not applicable

17. Environmental information disclosure

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 1 Serial number Company name Query index of environmental information disclosure reports in accordance with the law Enterprise environmental information disclosure system in accordance with the law (Shandong) 1 Qingdao Baiyang Pharmaceutical Co., Ltd. http://221.214.62.226:8090/Enviro

nmentDisclosure/

18. Social Responsibility

As a public listed company, while operating steadily and creating profits, the company attaches great importance to fulfilling social responsibilities, adheres to standardized operations and scientific management, and achieves the common development of the company, shareholders, employees, customers and suppliers through continuous development.

The company has established a complete corporate governance structure and internal control system, strictly fulfills its information disclosure obligations in accordance with relevant regulations, and at the same time fully guarantees the investors’ right to know and safeguards the legitimate rights and interests of all shareholders through diversified investor communication channels; the company fully implements the provisions of the Labor Contract Law and other relevant laws and regulations. It provides a good working environment for employees, establishes a relatively complete performance appraisal system, attaches great importance to talent cultivation, respects and safeguards the personal interests of employees, and achieves the common growth of employees and the company; as an industrialized platform with innovative brand building capabilities, the company focuses on complementary advantages with upstream suppliers and downstream customers.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Through collaborative aggregation, the company has performed well in its contracts with suppliers and customers, and the rights and interests of all parties have been properly protected. It has established a long-term and sustained good cooperative relationship, and has effectively fulfilled its social responsibilities to suppliers, customers and consumers.

At the same time, the company actively fulfills its corporate social responsibilities, actively participates in various public welfare activities, and uses actions to give back to the society. During the reporting period, the company donated 1 million yuan to the Henan Sunshine Medical and Health Development Foundation for the "Heart Source Project-Surgical Rescue Project for Patients with Advanced Heart Failure"; the company and its subsidiaries Shanghai Baiyang Pharmaceutical Technology Co., Ltd. and Qingdao Newt Shuma Health Technology Co., Ltd. donated 102 to the Shanghai Charity Foundation. The company donated 512,000 yuan and 10,000 boxes of Diqiao children's calcium to the China Children and Teenagers' Foundation for the "China Children's Height Promotion Plan" public welfare project; the company donated 900,000 yuan to the China Organ Transplantation Development Foundation for Support the foundation to carry out relevant public welfare activities; the subsidiary Beijing Baiyang Zhihe Medical Achievements Transformation Service Co., Ltd. donated 800,000 yuan to the China Medical Foundation, mainly for its public welfare projects to improve the comprehensive capacity of key specialties in county medical institutions; the subsidiary Shanghai Baiyang Pharmaceutical Technology Co., Ltd. donated to the Beijing Hepatobiliary Care Charity Foundation 1.5 million yuan will be used to carry out scientific research, academic exchanges, education and training in liver fibrosis and other fields.

The company issued the "2025 Environmental, Social and Corporate Governance Report" in accordance with the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainability Report (Trial)" and other relevant laws, regulations and normative documents. For other relevant content, please refer to the "2025 Environmental, Social and Corporate Governance Report" published by the company on cninfo.com on the same day.

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

During the reporting period, the company actively responded to and implemented the call for poverty alleviation, carried out medical assistance, and played the role of listed companies in the national poverty alleviation strategy. During the reporting period, the company donated 230,000 yuan and 190,000 boxes of Diqiao Children's Calcium to the Beijing Chengying Charity Foundation to jointly carry out rural revitalization projects; the company donated 1.45 million yuan to the Hubei Charity Federation to support the rescue of difficult heart disease patients; the company donated 100 yuan to the Jiangsu Renyi Foundation. RMB 10,000 was used to support major disease medical assistance projects for people in need; the company donated materials to the Health Bureau of Xihe County, Gansu Province to support counterpart assistance and poverty alleviation cooperation work in Qingdao; its subsidiary Qingdao Baiyang Pharmaceutical Co., Ltd. donated RMB 20,000 to the Jinmen Village Joint Stock Economic Cooperative, Guiqingshan Town, Zhang County, Dingxi City, Gansu Province for counterpart assistance work. The company strives to fulfill its corporate social responsibilities. In the future, the company will continue to fulfill its social responsibilities, respond to and implement relevant policy calls, and effectively coordinate economic and social benefits, its own development and social development, and achieve healthy and harmonious development of the enterprise and society.

Full text of Qingdao Baiyang Pharmaceutical 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

Within 36 months from the date of the initial public offering and listing of Baheal Pharmaceuticals, I will not transfer or entrust others to manage the shares of Baheal Pharmaceuticals that I directly or indirectly held before the initial public offering, nor will Baheal Pharmaceuticals repurchase these shares. Regarding the bonus shares and converted shares that I hold directly or indirectly based on the shares issued by Baheal Pharmaceutical before this issuance,

During the normal performance, the shares are also initially publicly issued. Regarding the lock-in period and compliance with the above-mentioned lock-in June 2021 or refinancing, the Steel Shares Restricted Sale Commitment Long-term Commitment Period Extension Period Agreement. The promise made on the 30th has been fulfilled

In Baiyang Medical

Within 6 months after the completion of the listing of the drug, if the closing price of Baheal Pharmaceutical's stock is lower than the issue price for 20 consecutive trading days, or the closing price at the end of 6 months after the listing is lower than the issue price, the lock-up period of the Baheal Pharmaceutical stock held directly or indirectly by me will be automatically extended for 6 months. 3. If the Baheang Pharmaceutical stocks held by me are reduced within two years after the expiration of the lock-up period, the reduction price shall not be lower than the issue price. During this period,

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If there are any ex-rights or ex-dividend events in the pharmaceutical industry such as dividend payment, bonus shares, transfer of capital reserves to share capital, allotment of shares, etc., the minimum holding price will be adjusted accordingly. 4. After the lock-up period of the Baheal shares I directly or indirectly hold expires, during my tenure as a director, supervisor, or senior manager of the company, the shares I transfer each year shall not exceed 25% of the total number of Baheal shares I directly or indirectly hold; within six months after my resignation, I will not transfer the Baheal shares I directly or indirectly hold. If you declare your resignation within 6 months from the date of the company's initial public offering and listing, you will not transfer the company shares you directly hold within 18 months from the date you declare your resignation; if you declare your resignation between the 7th and 12th month from the company's initial public offering listing date, you will not transfer the company shares you directly hold within 12 months from the date you declare your resignation. If the aforementioned commitment to reduce holdings is inconsistent or in conflict with the relevant laws, administrative regulations, departmental rules, normative documents, and stock exchange business rules at that time, I promise to abide by the relevant regulations.

I will not change due to my position.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Abandon the performance of this commitment due to reasons such as change of service, resignation, etc.

Within 12 months from the date of Baheal Pharmaceutical’s stock listing, you will not transfer or entrust others to manage the shares that you directly or indirectly hold before the public issuance of Baheal Pharmaceutical’s shares, nor will Baheal Pharmaceutical repurchase these shares. The above-mentioned lock-in period shall also be followed for the bonus shares, capitalization and other shares that I hold directly or indirectly based on the shares issued before the issuance of Baheal Pharmaceuticals.
Within 6 months after the listing of Baiyang Pharmaceutical, Chen Haishen and Zhu Xiao, such as Baiyang Wei, Song Qing, and Wang Pharmaceutical stocks continued to

During his tenure, he promised Guoqiang, Zhang Yuan, 20 trading days

In June 2021, the closing prices of Wang Yang and the share sales restriction commitment were lower than the long-term

On the 30th, the rest are fulfilled Sun Dongdong, Tian Wen issue price, or

Bi Zhi, Wang Yaping, Wang Yan 6 months after listing. The closing price at the end of the period is lower than the issue price. The lock-in period for the shares of Baheal Pharmaceuticals that I directly or indirectly hold will be automatically extended for 6 months. 3. If I reduce my holdings of Baheal Pharmaceutical shares within two years after the expiration of the lock-up period, the reduction price shall not be lower than the issue price. During the period, if Baheal Pharmaceutical has any ex-rights or ex-dividend matters such as dividend payment, bonus shares, transfer of capital reserve to share capital, allotment of shares, etc., the floor price of the reduction shall be adjusted accordingly. 4. After the lock-up period of the Baheal shares held directly or indirectly by me has expired, I am responsible for

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

While serving as a director, supervisor, or senior manager of the company, the shares I transfer each year shall not exceed 25% of the total number of Baheal shares I hold directly or indirectly. Within six months after I leave my job, I will not transfer the Baheal shares I directly or indirectly hold. If you declare your resignation within 6 months from the date of the company's initial public offering and listing, you will not transfer the company shares you directly hold within 18 months from the date you declare your resignation; if you declare your resignation between the 7th and 12th month from the company's initial public offering listing date, you will not transfer the company shares you directly hold within 12 months from the date you declare your resignation. If the aforementioned commitment to reduce holdings is inconsistent or in conflict with the relevant laws, administrative regulations, departmental rules, normative documents, and stock exchange business rules at that time, I promise to abide by the relevant regulations.

I will not give up the performance of this commitment due to job changes, resignation, etc.
12 months from the date of listing of Baheal Pharmaceutical shares

During their term of office, Huang Zhiyong and Li Li promised not to transfer or

In June 2021, Zhonghua, Li Xuebiao and others will be entrusted with the long-term management of their share restriction commitments.

On the 30th, the rest of Xiao Li's duties have been completed, and Qi Fei will manage him directly or

The Baheal Pharmaceutical shares indirectly held by Bi have been issued before the public issuance.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The company's shares will not be repurchased by Baheal Pharmaceutical. The above-mentioned lock-in period shall also be followed for the bonus shares, capitalization and other shares that I hold directly or indirectly based on the shares issued before the issuance of Baheal Pharmaceuticals.

After the lock-up period of the Baheal shares I hold directly or indirectly expires, during my tenure as a director, supervisor, or senior manager of the company, the shares I transfer each year shall not exceed 25% of the total number of Baheal shares I directly or indirectly hold; within six months after my resignation, I will not transfer the Baheal shares I directly or indirectly hold. If you declare your resignation within 6 months from the date of the company's initial public offering and listing, you will not transfer the company shares you directly hold within 18 months from the date you declare your resignation; if you declare your resignation between the 7th and 12th month from the company's initial public offering listing date, you will not transfer the company shares you directly hold within 12 months from the date you declare your resignation. For example, the aforementioned commitment to reduce holdings is in accordance with the relevant laws, administrative regulations, departmental rules, normative documents and stock exchange business rules at that time.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If there is any inconsistency or conflict, I promise to abide by the relevant regulations.

I will not give up the performance of this commitment due to job changes, resignation, etc.

Based on the judgment of the macro-economy, related industries and the good future development trends of Baheal Pharmaceuticals, in principle, the holdings of Baheal Pharmaceuticals stocks will not be reduced within two years after the initial public offering of shares by Baheal Pharmaceuticals and the expiration of the listing lock-up period. If it is true that due to financial needs, the company's holdings of Baiyang Pharmaceutical stocks are reduced within two years after the expiration of the lock-up period, the reduction price shall not be lower than the issue price of the issuer's initial issuance of shares (hereinafter referred to as the "issue price"). During this period, Baiyang Pharmaceutical Group Co., Ltd. Baiyang Pharmaceutical Co., Ltd. will pay dividends, bonus shares, and

In June 2021, Jingbaiyang Chengchuang Medical's shareholding reduction commitment was transferred from capital reserve to long-term and is being implemented normally.

On the 30th, Japan Pharmaceutical Research and Development Co., Ltd. will increase its share capital, allocate shares and other ex-rights and ex-dividend events, and the minimum holding price will be adjusted accordingly. The method of reducing holdings is through bidding transactions on the stock exchange, block transactions or agreement transfers and other methods permitted by transactions. The company will notify Baheal Pharmaceuticals and make an announcement at least 3 trading days before the shareholding reduction. The reduction price will not be lower than the issue price, and will be based on the "Several Regulations on Shareholding Reductions by Shareholders, Directors, Supervisors and Senior Management of Listed Companies", "Shareholders and Directors of Listed Companies on the Shenzhen Stock Exchange,

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Implementation of the Detailed Implementation Rules for the Reduction of Shareholdings by Supervisors and Senior Management and other laws, regulations, other normative documents and relevant business rules of the stock exchange. If the aforementioned commitments are inconsistent or conflict with the relevant laws, administrative regulations, departmental rules, normative documents and stock exchange business rules at that time, the company promises to comply with the relevant regulations.

The company will strictly abide by my country's laws and regulations regarding shareholder shareholdings and share changes, and perform its obligations to shareholders in good faith. If the company fails to comply with the above commitments, all proceeds from the sale of stocks in violation of the company's commitments will belong to the issuer, and the company will bear corresponding legal liabilities.

Beijing Sequoia Mingde The company will be listed on the stock exchange (limited shareholders, directors, supervisors and senior managers of Beijing Jun Maolin) according to the Equity Investment Center's "Listed Company Shares (Limited Partners, Directors, Supervisors and Senior Managers Reduction of Partners), Beijing Jun Maolin Equity Investment Regulations" and "Shenzhen-funded Partnerships" on the Stock Exchange (Limited Co., Ltd. shareholders and partners), Beijing New Directors, Supervisors, Generation Digital Media Senior Management Technology Co., Ltd. The implementation of the reduction of shareholdings is being implemented normally.

In June 2021, the company, GF Qianhe's shareholding reduction commitment "Details" and other long-term shareholders have fulfilled

30th Investment Co., Ltd. Laws, regulations, implementation of the company, Shanghai Haoxin and other normative Wentong Investment Development Documents and Securities Trading Center (Co., Ltd. related business regulations), Tianjin Haohui Asset Management Co., Ltd. This enterprise will be a partnership (limited company) and strictly abide by the laws and regulations of Tianjin regarding Huitong Asset Management shareholder shareholdings and shareholding partnerships (with changes in shareholdings).

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(limited partnership), it is God's destiny to standardize and integrity Jinhuizhong Asset Management to fulfill the obligations of the partnership of shareholders. If the company (limited partnership) fails to comply with the above commitments, Tianjin Hui Tong Asset Management Co., Ltd. will bear the corresponding legal liability of the partnership (limited partnership), Tianjin Hui.

Qingzheng Asset Management

Partnership (with

limited partnership), West

Zang Qunying is investing

Heart (finite combination)

Guy)

The company will not engage in any form of business or operating activities that constitute or may constitute horizontal competition for the production and operation of Baheal Pharmaceutical and its holding subsidiaries, nor will it provide any financial, business, technical and management assistance to enterprises, institutions or other economic organizations that compete with Baheal Pharmaceutical and its holding subsidiaries in any way. 2. Whenever our company has any business opportunities, we can engage in, participate in or become a shareholder of Baheal Pharmaceutical Group regarding horizontal competition. June 2021

For long-term and normal performance of the company's commitments, if there are any businesses that may compete with the production and operation of Baiyang Pharmaceuticals and its holding subsidiaries on the 30th, the company will transfer these business opportunities to Baiyang Pharmaceuticals or its holding subsidiaries in accordance with the requirements of Baheal Pharmaceuticals or its holding subsidiaries, so as to avoid horizontal competition with Baiyang Pharmaceuticals and its holding subsidiaries. 3. If our company violates the above statements and commitments and causes economic losses to Baheal Pharmaceutical or its controlled subsidiaries, our company will compensate Baheal Pharmaceutical or its holding subsidiaries.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

All losses suffered by its holding subsidiaries as a result. 4. This commitment letter shall take effect from the date of signature.

I do not directly or indirectly hold equity or interests in any other enterprises, institutions or other economic organizations that are the same, similar or compete in any aspect with the business of Baheal Pharmaceuticals and its controlled subsidiaries. I do not serve as a director or senior manager in other enterprises, institutions or other economic organizations that compete with Baheal Pharmaceuticals and its controlled subsidiaries. I do not directly or indirectly engage in business that competes with Baheal Pharmaceuticals and its controlled subsidiaries in any other way. 2. Regarding horizontal competition, I will not engage in any form of business and operating activities that constitute or may constitute horizontal competition in the production and operation of Baheal Pharmaceuticals and its holding subsidiaries, nor will I provide any financial, business, technical and management assistance in any way to enterprises, institutions or other economic organizations that compete with Baheal Pharmaceuticals and its holding subsidiaries.
If I and other enterprises, institutions or economic organizations controlled by me have any business opportunities, we can engage in, participate in or invest in any business that may be related to Baheal Pharmaceuticals and its holdings.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If the production and operation of the subsidiary constitutes a competitive business, I will transfer these business opportunities to Baheal Pharmaceutical or its holding subsidiaries in accordance with the requirements of Baheal Medicine. Baheal Medicine or its holding subsidiaries will have priority in acquiring the assets or equity involved in the relevant business under the same conditions to avoid horizontal competition with Baheal Medicine and its holding subsidiaries.

If I violate the above statements and commitments and cause economic losses to Baheal Pharmaceutical or its holding subsidiaries, I will compensate Baheal Pharmaceuticals or its holding subsidiaries for all losses suffered thereby. 5. This commitment letter will take effect from the date of signing, and will continue to be effective and irrevocable while I am the actual controller of Baheal Pharmaceutical.

(1) The company has truly, accurately and completely disclosed shareholder information in the prospectus. The company's shareholders are all qualified to hold the company's shares, and there are no laws and regulations Qingdao Baiyang Pharmaceutical prohibiting shareholding June 2021 Other commitments Long-term Normally performing joint-stock company The company's shares are held directly or indirectly for 30 days; (2) The company has terminated the historical share holdings before submitting the application for this issuance and listing, and the company currently does not have any equity holdings or commissions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

There are no equity disputes or potential disputes, etc.; (3) The company's intermediaries for this issuance and listing, or their responsible persons, senior managers, and handling personnel do not directly or indirectly hold the company's shares or other interests; (4) The company's shareholders do not use the company's equity to transfer improper interests; (5) The company and the company's shareholders have promptly It has provided true, accurate and complete information to the intermediaries for the issuance and listing of the company, actively and comprehensively cooperated with the intermediaries for the issuance and listing to conduct due diligence, disclosed shareholder information truly, accurately and completely in the application documents for the issuance and listing in accordance with the law, and fulfilled its information disclosure obligations; (6) If the company violates the above commitments, it will bear all legal consequences arising therefrom.

If the Wen Dongxing Securities Co., Ltd. Intermediary Agency Commitment June 2021 issued and produced by this sponsor for the issuer's application for the initial public offering of stocks and listing on the GEM contains false records, misleading statements or major omissions, causing losses to investors, the investors will be compensated for the losses in accordance with the law. Beijing Tianyuan Law Intermediary Agency Commitment If it is issued by our firm June 2021 Long-term Normal implementation

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If the documents produced and issued by the law firms for the first time on the 30th have false records, misleading statements or major omissions, causing losses to investors, they will be compensated for the losses in accordance with the law. The Exchange will assume civil liability for compensation in accordance with relevant laws and regulations and compensate investors for their losses. The amount of compensation for such losses is limited to the actual losses incurred by investors and can be proven by evidence. The specific compensation standards, scope of compensation subjects, compensation amounts and other details will be subject to the final compensation plan when the above circumstances actually occur. Because the documents produced and issued by our firm for the issuer's initial public offering contained false records, misleading statements or major omissions, which caused losses to investors, BDO Lixin Accounting Firm

Yes, the firm will be based on the June 2021 law firm (special general intermediary agency commitment to long-term normal performance in accordance with the China Securities Regulatory Commission's 30-day partnership)

Or the final decision or effective judgment of the competent authorities such as the People's Court shall compensate investors for their losses in accordance with the law, unless it can be proven that there was no fault.

If the documents produced and issued by the company for the issuer's public offering contain false records, misrepresent Yinxin Asset Assessment Intermediary Agency Commitment June 2021 introductory statements or major omissions, long-term Normal Performance Co., Ltd. 30 days, causing losses to investors, they will be compensated for their losses in accordance with the law.

Qingdao Baiyang Pharmaceutical About Initial Disclosure (1) Not Free June 2021 Long-term Under normal implementation

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

A joint-stock company shall not issue shares to dilute the company, or take 30-day spot returns on non-disclosure terms, undertake to make up for the measures to other units, or personally transfer promised benefits, nor use other methods to harm the interests of the company.

(2) Restrict the duty consumption behavior of directors and senior managers, and act in accordance with the principle of economy during duty consumption, and avoid luxury, extravagance and waste.

(3) Do not use company assets to engage in investment or consumption activities that have nothing to do with the performance of duties by directors and senior managers. (4) The remuneration system formulated by the board of directors or the remuneration committee is linked to the implementation of the company's supplementary return measures.

(5) If the company implements an equity incentive plan (such as

Yes), the exercise conditions of equity incentives are linked to the implementation of the company's supplementary return measures.

(6) After the issuance of this commitment, if the China Securities Regulatory Commission and the stock exchanges issue new regulatory regulations on supplementary return measures and commitments, and the above commitments cannot meet such regulations of the China Securities Regulatory Commission and the stock exchanges, the Company promises to issue supplementary commitments in accordance with the latest regulations of the China Securities Regulatory Commission and the stock exchanges.

(7) If the company fails to fulfill the above commitments, the company will

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The Company shall publicly explain the specific reasons for non-fulfillment and apologize in newspapers designated by the China Eastern Conference and the China Securities Regulatory Commission; at the same time, if the violation of these commitments causes losses to the company or investors, the Company is willing to bear the liability for compensation to the company or investors in accordance with the law.

(1) Do not interfere with the company’s operation and management activities beyond its authority and do not encroach on the company’s interests. (2) If the company fails to fulfill the above commitments, regarding the initial public offering, the company will issue dilutive shares to the public. The company's general meeting of shareholders and Baheal Pharmaceutical Group's spot returns in June 2021 will be adopted. The China Securities Regulatory Commission refers to the long-term commitment of the company to make up for the 30 days of normal implementation. The company will publish the commitment in newspapers and periodicals. Explain the specific reasons for the failure to perform and apologize; at the same time, if the company or shareholders suffer losses due to breach of commitment, they will bear the liability for compensation in accordance with the law.

(1) I promise not to transfer benefits to other units or individuals for free or under non-disclosure conditions under any circumstances, nor to harm the interests of the company in other ways.

(2) This article restricts the dilutive behavior of the initial public offering of shares for consumption by employees.

Pay steel in June 2021. The immediate return is based on the cost during the consumption process. The long-term is under normal implementation.

The 30-day replenishment measures adhere to the principle of economy and do things without extravagance or waste.

(3) I promise not to use company assets to engage in investment or consumption activities unrelated to the performance of my duties. (4) I commit to the salary set by the board of directors or the remuneration committee.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The remuneration system is linked to the implementation of the company's remuneration measures. (5) I promise that if the company implements an equity incentive plan (if any), the exercise conditions of the equity incentive will be linked to the implementation of the company's top-up return measures.

(6) Do not interfere with the company’s business management activities beyond its authority and do not encroach on the company’s interests. (7) If I fail to fulfill the above commitments, I will publicly explain the specific reasons for the failure and apologize at the company's shareholders' meeting and in newspapers designated by the China Securities Regulatory Commission; at the same time, if the breach of commitments causes losses to the company or shareholders, I will bear the liability for compensation in accordance with the law.

(1) I promise not to transfer benefits to other units or individuals for free or under non-disclosure conditions under any circumstances, nor to harm the interests of the company in other ways.

(2) Binding Chen Haishen and Zhu Xiao

People's job consumption Wei, Song Qing, Wang

Regarding the first public behavior, in his post Guoqiang, Lu Xiao

The issuance of shares is dilutive. In the process of consumption, the capital is being performed normally. Bo Wang's spot return in June 2021 adopts the principle of frugality. Long-term The resigned director has performed the filling measures on the 30th. Dong Sun Dong is not extravagant and has completed the transaction.

No extravagance or waste. Wen Zhi, Wang Ya

(3) I am Taiping, Zhang Yuan

Novo shall not use company assets to engage in investment or consumption activities unrelated to the performance of its duties. (4) I commit to the remuneration system and the company’s compensation return measures formulated by the board of directors or the remuneration committee.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

linked to its implementation. (5) I promise that if the company implements an equity incentive plan (if any), the exercise conditions of the equity incentive will be linked to the implementation of the company's top-up return measures.

(6) If I fail to fulfill the above commitments, I will publicly explain the specific reasons for the failure and apologize at the company's shareholders' meeting and in newspapers designated by the China Securities Regulatory Commission; at the same time, if the breach of commitments causes losses to the company or shareholders, I will bear the liability for compensation in accordance with the law. The company promises that there are no false records, misleading statements or major omissions in the Prospectus, and the company assumes corresponding legal responsibility for its authenticity, accuracy and completeness. Prospectus prepared by our company for the public issuance of stocks and listing on the GEM. About the prospectus

If the instruction manual is stored as a book, it is not false.

In false records, records, misleading

Qingdao Baiyang Pharmaceutical Misleading statements or June 2021 statements or major Long-term Normal Performance Co., Ltd. Major omissions, 30-day omissions and fraud

Causing investors to repurchase at the time of issuance

Commitment letter encountered in securities transactions

In case of losses, the company will compensate investors for their losses in accordance with the law. The qualifications of investors who are entitled to compensation, the determination of the scope of investor losses, and the division of responsibilities among compensation subjects shall be implemented in accordance with the provisions of laws, regulations and judicial interpretations in effect at that time. In the securities authorities

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If there are any of the above-mentioned violations of laws or regulations by judicial authorities, the company promises to strictly implement the compensation methods and compensation amounts determined by effective judicial documents, and accept social supervision to ensure that the legitimate rights and interests of investors are effectively protected. If there are false records, misleading statements or major omissions in the company's prospectus, which have a significant and substantial impact on whether the company meets the issuance conditions stipulated by law, within 10 trading days after the illegal facts are recognized by the China Securities Regulatory Commission, Shenzhen Stock Exchange or the People's Court and other competent authorities, the company's board of directors shall formulate and announce a repurchase plan in accordance with relevant laws, regulations and the company's articles of association, and submit it to the interim After deliberation at the general meeting of shareholders and subject to approval or filing by the relevant competent authorities, share repurchase measures will be initiated for all new shares issued by the initial public offering; the repurchase price will be determined based on the issuance price (if the company's stocks are ex-rights and ex-dividends such as dividend distribution, bonus shares, capital reserve conversion to share capital, etc. during this period, the issuance price should be adjusted accordingly) plus bank deposit interest for the same period, and will be determined in accordance with the procedures stipulated in relevant laws, regulations, and the company's articles of association.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

implementation. When implementing the above-mentioned share repurchase, if laws, regulations, company articles of association, etc. provide otherwise, such provisions shall prevail. The company guarantees that there will be no fraudulent issuance in this public issuance and listing on the GEM. If the company does not meet the conditions for issuance and listing and uses deceptive means to obtain issuance registration and has already issued and listed the company, the company will initiate the share repurchase procedure within 5 working days after confirmation by the China Securities Regulatory Commission, Shenzhen Stock Exchange and other competent authorities to repurchase all the new shares of the company's public offering.

As the controlling shareholder of Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Issuer" or "Company"), the Company commits to the "Prospectus" prepared by the Issuer for the public issuance of stocks and listing on the GEM. About the Prospectus

There is no false book. There is no false book.

false record, misleading record, misleading

Baheal Pharmaceutical Group's June 2021 statement or major long-term, normal performance of the company's major omissions, the company's 30-day omissions and fraud

The industry repurchased it when it was actually issued

Safety, accuracy, commitment letter

Integrity bears corresponding legal responsibilities. If the "Prospectus" produced by the issuer for the public issuance of stocks and listing on the GEM contains false records, misleading statements or major omissions, causing investors to lose money on the securities exchange

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If Yizhong suffers losses, the company will compensate investors for their losses in accordance with the law. The qualifications of investors who are entitled to compensation, the determination of the scope of investor losses, and the division of responsibilities among compensation subjects shall be implemented in accordance with the provisions of laws, regulations and judicial interpretations in effect at that time. After the securities authorities or judicial authorities determine that the issuer has violated the aforementioned laws and regulations, the company promises to strictly implement the compensation methods and compensation amounts determined by effective judicial documents, and accept social supervision to ensure that the legitimate rights and interests of investors are effectively protected. If the issuer's prospectus contains false records, misleading statements or major omissions, which have a significant and substantial impact on whether it meets the issuance conditions stipulated by law, after such illegal facts are recognized by the China Securities Regulatory Commission, Shenzhen Stock Exchange or the People's Court and other competent authorities, the company will repurchase the transferred shares held before this public offering in accordance with the law. The company will initiate the repurchase matter within 10 trading days after the above-mentioned matters are identified, and use methods such as centralized bidding transactions and block transactions in the secondary market to repurchase the transferred original restricted shares; the repurchase price will be based on the issue price.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(If the company's stocks are ex-rights and ex-dividends during this period, such as dividend distribution, bonus shares, capital reserve conversion to share capital, etc., the issuance price should be adjusted accordingly) The addition of bank deposit interest for the same period will be determined and implemented in accordance with the procedures stipulated in relevant laws, regulations, and the company's articles of association. When implementing the above-mentioned share repurchase, if laws, regulations, company articles of association, etc. provide otherwise, such provisions shall prevail. The company guarantees that there will be no fraudulent issuance in this public issuance and listing on the GEM. If the company does not meet the conditions for issuance and listing and uses deceptive means to obtain issuance registration and has already issued and listed the company, the company will initiate the share repurchase procedure within 5 working days after confirmation by the China Securities Regulatory Commission, Shenzhen Stock Exchange and other competent authorities to repurchase all the new shares of the company's public offering. As the actual controller of Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Issuer" or "Company"), I have recorded and misleadingly promised that the issuer is

Fu Gang in June 2021 Statement or major initial public offering Long-term Normal implementation

30-day omissions and fraud. The stock is repurchased in the issuance of the company. The "Prospectus" does not contain false records, misleading statements or major omissions. I am confident of its authenticity and authenticity.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Bear corresponding legal responsibility for accuracy and completeness. If the "Prospectus" prepared by the issuer for the initial public offering of stocks and listing on the GEM contains false records, misleading statements or major omissions, causing investors to suffer losses in securities transactions, I will compensate investors for their losses in accordance with the law. The qualifications of investors who are entitled to compensation, the determination of the scope of investor losses, and the division of responsibilities among compensation subjects shall be implemented in accordance with the provisions of laws, regulations and judicial interpretations in effect at that time. After the securities authorities or judicial authorities determine that the issuer has committed the aforementioned violations, I promise to strictly implement the compensation methods and compensation amounts determined by effective judicial documents, and accept social supervision to ensure that the legitimate rights and interests of investors are effectively protected. I guarantee that there will be no fraudulent issuance in this public offering and listing on the GEM. If the company does not meet the conditions for issuance and listing, and uses deceptive means to obtain issuance registration and has already issued and listed, I will initiate the share repurchase procedure within 5 working days after confirmation by the China Securities Regulatory Commission, Shenzhen Stock Exchange and other competent authorities, and repurchase the shares of the company.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

All new shares issued by the company in this public offering.

As a director/supervisor/senior manager of Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Issuer" or "Company"), I promise that the "Prospectus" prepared by the Issuer for the initial public offering of stocks and listing on the GEM does not contain false records, misleading statements or major omissions, and I bear corresponding legal responsibility for its authenticity, accuracy and completeness. If the issuer is Chen Haishen, Zhu Xiao, Wei, Song Qing, Wang, and Guoqiang, Lu Xiao, the issuer is the first to publicly issue stocks on the GEM, and the prospectus produced by the market is not false, Sun Dong has false records and misleading records.

June 2021 Dong, Wang Yu, Tian Statement or major misleading statement or long-term normal performance

On the 30th, if Wen Zhi, Wang Ya's omissions and major fraudsters' omissions, Ping, Li Lihua, repurchased during the issuance, Li Xuebiao, Xiao, Qi Fei, Huang, Li Xuebiao, Xiao Commitment Letter, Qi Fei, Huang's losses in securities transactions, Ben Zhiyong, Zhang Yuan will compensate investors for their losses in accordance with the law. The qualifications of investors who are entitled to compensation, the determination of the scope of investor losses, and the division of responsibilities among compensation subjects shall be implemented in accordance with the provisions of laws, regulations and judicial interpretations in effect at that time. After the securities authorities or judicial authorities determine that Baheal Pharmaceuticals has the above-mentioned violations of laws and regulations, I promise to strictly implement the compensation methods and compensation amounts determined by effective judicial documents, and accept social supervision to ensure that

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Ensure that the legitimate rights and interests of investors are effectively protected.

(1) If the company fails to fulfill its public commitments due to reasons other than force majeure, it must make new commitments (relevant commitments must undergo relevant approval procedures in accordance with laws, regulations, and the company's articles of association) and accept the following binding measures until the new commitments are fulfilled or the corresponding remedial measures are implemented: 1. Publicly explain the specific reasons for the failure to perform and apologize to shareholders and public investors in the disclosure media designated by the China Securities Regulatory Commission; 2. No securities shall be issued;

The directors, supervisors, and senior managers who have long-term responsibilities for Qingdao Baiyang Pharmaceutical Co., Ltd. who have not fulfilled their commitments in June 2021 and have a long-term 30-day responsibilities will be reduced or stopped. 4. The voluntary resignation applications of directors, supervisors, and senior managers who have not fulfilled their commitments shall not be approved, but their positions can be changed;
If losses are caused to investors, the company will be liable for compensation to investors in accordance with the law.

(2) If the company fails to fulfill its public commitments due to force majeure, it will need to make new commitments (relevant commitments must be performed in accordance with laws, regulations, and the company's articles of association).

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

relevant approval procedures) and accept the following binding measures until the new commitments are fulfilled or the corresponding remedial measures are implemented: 1. Publicly explain the specific reasons for non-fulfillment and apologize to shareholders and public investors on the disclosure media designated by the China Securities Regulatory Commission; 2. Study a solution to minimize the loss of investors' interests as soon as possible and submit it to the shareholders' meeting for review, so as to protect the interests of the company's investors as much as possible.

(1) If the company fails to perform its public commitments due to reasons other than force majeure, it must make new commitments and accept the following binding measures until the new commitments are fulfilled or the corresponding remedial measures are implemented: 1. Publicly explain the specific reasons for the failure to perform and report to shareholders and public investors on the disclosure media designated by the China Securities Regulatory Commission June 2021

Long-term limited company under normal performance Constraint measures Apology; 2. The issuer's shares may not be transferred within 30 days. Exceptions are made for situations where shares must be transferred due to compulsory execution, reorganization of listed companies, fulfillment of commitments to protect the interests of investors, etc.; 3. The part of the issuer’s distributed profits that belongs to the company will not be received for the time being; 4. If there is any income due to failure to perform relevant commitments, the income will belong to the issuer.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Yes, and the proceeds will be paid to the issuer's designated account within five working days of receipt; 5. If the company fails to fulfill the public commitments in the prospectus and causes losses to investors, it shall compensate investors for their losses in accordance with the law. (2) If the company fails to fulfill its public commitments due to force majeure, it must make new commitments and accept the following binding measures until the new commitments are fulfilled or the corresponding remedial measures are implemented: 1. Publicly explain the specific reasons for the failure and apologize to shareholders and public investors in the disclosure media designated by the China Securities Regulatory Commission; 2. Study as soon as possible a solution to minimize the loss of investors' interests and protect the interests of the company's investors as much as possible.

(1) If I fail to perform public commitments due to reasons other than force majeure, I need to make new commitments and accept the following binding measures until the new commitments are fulfilled or the unfulfilled commitments are completed or the corresponding remedies are completed. June 2021 Fu Gang Long-term Constraint measures during normal performance Measures are implemented within 30 days: 1. Publicly explain the specific reasons for non-performance and apologize to shareholders and public investors on the disclosure media designated by the China Securities Regulatory Commission; 2. The issuer shall not be transferred.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

shares. Exceptions are made when shares must be transferred due to compulsory execution, reorganization of listed companies, fulfillment of commitments to protect the interests of investors, etc.; 3. I will not receive my portion of the profits distributed by the issuer for the time being; 4. If I receive income due to failure to fulfill relevant commitments, the income will belong to the issuer, and the income will be paid to the issuer's designated account within five working days of receiving the income; 5. If I fail to fulfill the public commitments in the prospectus and cause losses to investors, I will compensate investors for their losses in accordance with the law. (2) If I fail to fulfill my public commitments due to force majeure, I need to make new commitments and accept the following restrictive measures until the new commitments are fulfilled or the corresponding remedial measures are implemented: 1. Publicly explain the specific reasons for the failure to perform and apologize to shareholders and public investors in the disclosure media designated by the China Securities Regulatory Commission; 2. Study as soon as possible a solution to minimize the loss of investors' interests and protect the interests of the company's investors as much as possible. Chen Haishen, Zhu Xiao (1) Ru Benwei, Song Qing, Wang Fei failed to fulfill their commitments due to force majeure, Guoqiang, and Lu Xiao June 2021

Long-term normal implementation of China Wave, Wang's restraint measures to fulfill public commitments Yang, Sun Dong on the 30th, Dong, Tian Wenzhi, need to mention Dong, Tian Wenzhi, and make new commitments

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Wang Xun, Wang Ya accept the following binding measures, Ping, Li Lihua, until the completion of the commitments of Huang Zhiyong, Li Xue, Biao, Qi Fei, Xiao Bi or corresponding remedies, Zhang Yuan The measures have been implemented: 1. Publicly explain the specific reasons for failure to perform and apologize to shareholders and public investors in the disclosure media designated by the China Securities Regulatory Commission; 2. Position changes can be made but no voluntary request to resign; 3. Active application for reduction or suspension of salary or allowances; 4. If I fail to fulfill the public commitments in the prospectus, I will bear responsibility in accordance with the law.

(2) If I fail to fulfill my public commitments due to force majeure, I need to make new commitments and accept the following binding measures until the new commitments are fulfilled or the corresponding remedial measures are implemented:

Publicly explain the specific reasons for failure to perform and apologize to shareholders and public investors in the disclosure media designated by the China Securities Regulatory Commission; 2. Study as soon as possible a solution to minimize the loss of investors' interests and protect the interests of the issuer's investors as much as possible.
Commitment not to interfere in the operation and management activities of listed companies beyond their authority, to make compensation for the company, and not to encroach upon Shangbaiyang Pharmaceutical Group

The reported measures can obtain the interests of the municipal company; in March 2022, the company will pay long-term normal performance to actual performance 2. Commitment is effective 08th Steel

Commitment to fulfill the relevant supplementary return measures formulated by the company and myself (the company)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If I (the company) violate any commitments regarding compensation measures and cause losses to the company or investors, I (the company) are willing to bear the liability for compensation to the company or investors in accordance with the law.

Commitment not to transfer benefits to other units or individuals for free or on unfair terms, nor to damage the interests of the company in other ways; 2. Commitment to restrict my job consumption behavior; 3. Commitment not to use company assets to engage in investment and consumption activities unrelated to the performance of my duties; 4. Commitment to make every effort to urge Fu Gang, Chen Hai, the company's board of directors or Shen, Zhu Xiaowei, and the remuneration assessment committee to return to the company's filling positions within the scope of their own responsibilities and authority.

Song Qing, Wang Guo The remuneration set by the Council is being implemented normally; the reporting measures can be obtained. March 2022 Qiang, Zhang Yuan, Li The system and the company will fill in the long-term. Some resigned personnel will be effectively implemented on March 8, Lihua, Li Xue. Compensation measures have been fulfilled and the commitment has been fulfilled.

Biao, Wang Biquan, Wang Tingwei linked to the implementation; 5. Commitment that if the company implements equity incentives in the future, within the scope of its own responsibilities and authority, make every effort to link the exercise conditions of equity incentives with the implementation of the company's top-up return measures; 6. Commit to earnestly implement the relevant top-up return measures formulated by the company and any commitments I have made regarding top-up return measures. If I violate these commitments and give the company or

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If an investor causes losses, I am willing to bear the liability for compensation to the company or investors in accordance with the law.

Commitment not to transfer benefits to other units or individuals for free or on unfair terms, nor to damage the interests of the company in other ways; 2. Commitment to restrict my job consumption behavior; 3. Commitment not to use company assets to engage in investment and consumption activities unrelated to the performance of my duties; 4. Commitment to make every effort to promote the remuneration system formulated by the company's board of directors or the remuneration assessment committee and the company's compensation return measures within the scope of my responsibilities and authority, and the company's compensation return measures.

Fu Mingzhong, Hao Xian The implementation status is related to the normal implementation; the reported measures can be obtained in January 2023, Lu Yindi, hook; 5. Commitment long-term Some resigned personnel will be effectively implemented on the 13th Mou Jun, Du Nan If the company implements the future, the commitment has been fulfilled

Implement equity incentives, and within the scope of their own responsibilities and authority, make every effort to link the exercise conditions of equity incentives with the implementation of the company's supplementary return measures; 6. Commit to earnestly implement the relevant supplementary return measures formulated by the company and any commitments I make regarding supplementary return measures. If I violate such commitments and cause losses to the company or investors, I am willing to bear the liability for compensation to the company or investors in accordance with the law.

Qingdao Baiyang Pharmaceutical Regarding the previous fundraising, the company will follow the long-term normal implementation of March 2022

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Co., Ltd. The funds will be put into use on 08th according to the planned market conditions and the actual needs of the project, and the raised funds will be invested in accordance with the investment plan related to the raised investment project.

As of the date of issuance of the "Letter of Commitment on Not Engaging in Real Estate Business", the Company, its subsidiaries and joint-stock companies are not engaged in real estate-related business, and do not hold any qualifications related to real estate business. The Company and its subsidiaries will not carry out real estate development and operation-related business in the future; 2. After the Company obtains the land for the investment project, it will be strictly used for the construction and implementation of the investment project. Regarding the company not engaged in real estate business,

Qingdao Baiyang Pharmaceutical related project sites The commitment period of the real estate business in May 2022 is being implemented normally. After completion, it will be completed on the 31st.

To a large extent, it meets the needs of self-use and will not be used for real estate development or business purposes in any form; 3. The company will strictly follow the relevant laws, regulations and the relevant requirements of the raised funds management measures, standardize the use of raised funds, and will not use it for real estate development and business operations in any form, nor will it invest in real estate development projects. 4. If the company violates the above commitment, it will bear all legal liabilities arising therefrom. Is the promise on time?

Yes

fulfill

Not applicable if the commitment is overdue

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The performance is completed,

should be explained in detail

unfinished performance

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

Commitment amount (10,000) Actual completion amount Commitment background Commitment party Commitment period Commitment indicator Completion rate (%)

Yuan) (Ten thousand Yuan) Acquisition in 2024

Haibaiyang Pharmaceutical Stocks

Co., Ltd.,

Qingdao Baiyang Investment

Shanghai Baiyang Pharmaceutical Net of non-recurring expenses Group Co., Ltd.

Co., Ltd. After profit and loss, it belongs to the parent company, Qingdao Baiyang 2024 14,429 17,721.36 122.82% net income of the company, Baiyang Pharmaceutical Company shareholders Yiren Investment Management

Group Co., Ltd. Profit

Ltd. and North

Jingbaiyang Kangheke

Technology Co., Ltd. shares

right

Acquisition in 2024

Haibaiyang Pharmaceutical Stocks

Co., Ltd.,

Qingdao Baiyang Investment

Shanghai Baiyang Pharmaceutical Net of non-recurring expenses Group Co., Ltd.

Co., Ltd. After profit and loss, it belongs to the parent company and Qingdao Baiyang 2025 17,226 20,174.32 117.12% net income of the company and Baiyang Pharmaceutical Company’s shareholders Yiren Investment Management

Group Co., Ltd. Profit

Ltd. and North

Jingbaiyang Kangheke

Technology Co., Ltd. shares

right

Changes in performance commitments

□Applicable Not applicable

Commitments made by the company’s shareholders and counterparties to the annual operating performance of the company or related assets

Applicable □Not applicable

In order to comply with the national traditional Chinese medicine revitalization and development strategy, further enrich the company's product structure and extend the industrial chain layout, the company acquired 60.199% of Baheal Pharmaceutical in cash.

equity, according to the performance compensation clauses in the "Acquisition Agreement" signed by the company and the counterparty, Baheal Pharmaceutical and Baheal Group promise that Baheal Pharmaceutical will

The audited net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses realized in 2025 and 2026 respectively is no less than 144.29 million yuan and 172.26 million yuan.

yuan, 215.48 million yuan.

According to the special audit report, if Baheal Pharmaceutical’s cumulative actual net profit at the end of the fiscal year during the performance commitment period is lower than the cumulative promised net profit in the corresponding year,

The difference will be compensated by Baheal Pharmaceutical Group in accordance with this agreement.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The specific compensation amount is: the amount of compensation payable by Baheal Pharmaceutical Group = (the cumulative committed net profit of Baheal Pharmaceutical during the performance commitment period as of the end of the current period - the cumulative realized net profit of Baheal Pharmaceutical during the performance commitment period as of the end of the current period) ÷ the sum of the cumulative committed net profit of Baheal Pharmaceutical during the performance commitment period × the total amount of this acquisition price - the cumulative cash compensation of Baheal Pharmaceutical Group.

In the case of year-by-year compensation, if the annual calculated compensation cash amount is less than 0, the value will be 0 (that is, the compensated amount will not be returned). Completion of performance commitments and its impact on goodwill impairment testing

In 2025, Baheal Pharmaceutical achieved a net profit attributable to shareholders of the parent company of RMB 201.7432 million after deducting non-recurring gains and losses, which exceeded the performance commitment of RMB 172.26 million by RMB 29.4832 million. The performance commitment for 2025 was achieved.

The goodwill formed by this transaction has not been impaired after the impairment test.

2. 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.

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

□Applicable Not applicable

Explanation of the "non-standard audit report" of the accounting firm for this reporting period by the board of directors, audit committee and independent directors (if any)

□Applicable Not applicable

Explanation of the board of directors on changes in accounting policies, accounting estimates or correction of major accounting errors during the reporting period □Applicable Not applicable

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

Applicable □Not applicable

For details, please refer to "9. Changes in the scope of consolidation" of "Section 8 Financial Report".

8. Appointment and dismissal of accounting firms

Currently employed accounting firm

Name of the domestic accounting firm: Shu Lun Pan Certified Public Accountants (Special General Partnership) Remuneration of the domestic accounting firm (10,000 yuan) 200 Continuous years of audit service by the domestic accounting firm 6 years

Name of CPA of domestic accounting firm Wang Na, Wang Yi

The number of consecutive years of CPA audit services provided by domestic accounting firms: Wang Na 2 years, Wang Yi 2 years

Full text of the 2025 annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. Whether to hire an accounting firm?

□Yes No

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

Applicable □Not applicable

In 2023, the company will issue convertible corporate bonds to unspecified objects and list them on the Shenzhen Stock Exchange. It will hire Dongxing Securities Co., Ltd. as the sponsor. The continuous supervision period will be the remainder of the year when the convertible corporate bonds are listed and the following two full fiscal years.

In 2025, the company appointed Shu Lun Certified Public Accountants (Special General Partnership) as the internal control audit agency, with an audit fee of 400,000 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 (Arbitration) Litigation (Arbitration) Litigation (Arbitration) Amount involved Whether a pre-litigation (arbitration) is formed

Trial results and execution of judgment Disclosure date Basic information on disclosure index (10,000 yuan) Liability calculation progress

Influence situation

Not significant

litigation (litigation)

Litigation (arbitrary) has been accepted/tried, has been judged, and is still pending

(disclosure) matters

Disclosure target 4,607.05 No In process/Judgment Not implemented/Enforced Not applicable Not applicable

Nothing to do with the company

Accurate matters are resolved/mediated and are in progress

significant impact

total

12. Punishment and rectification

□Applicable Not applicable

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

14. Major related transactions

Related transactions related to daily operations

Applicable □Not applicable

Associated shareholding is approved and available

Related whether related related related related related transaction similar transaction

Related Transactions Exceed Transaction Disclosure Disclosure Transaction Transaction Transaction Amount Yijin Transaction Amount Similar

Relationship Pricing Approved Settlement Date Index Party Type Content Price (in tens of thousands of dollars) Transaction Principles Quota Method

Yuan) Ratio (10,000 Market price

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Yuan)

Anshi Company Company Pharmaceutical Director Xiang Guan 2025 Served as a joint party in Ju(China) Procurement Market Market 32,14 50,80 Market Year 01 Chaozi

7.55% No Transfer

Mountain) Director Procurement Commodity Price Price 4.86 0 Price On 24 March, Xunwang Co., Ltd.'s Enterprise Commodity Day (www company industry.cnin Anshi Company fo.co Pharmaceutical Director Xiangguan 2025 m.cn (China served as joint party brand market market 15,49 28.35 19,58 market year 01) disclosure

No transfer

Shan) Director provides service price price 7.94% 4 price The limited corporate services disclosed on March 24, "Qing Company" Dao Baiyang Pharmaceutical Co., Ltd. has sales

Sales limited to public sale,

Holding sales, corporate purchasing

Shareholders Procurement 2024 Commodity/

Controlled Product/Annual Brand

System, mention and other related services 2025

Director Supply and transaction are not important, market Market 10,67 27,27 Market Year 01

Responsible Accept No Transfer Confirmation Check Inquiry Price Price 8.24 6 Price Month 24

Director labor/and associate services/day

Wait for it to be released in 2025

Other related sales, annual rent,

Related Lease Daily Lease

Department House Related House

etc. Transaction etc.

Expected Announcement》

58,32 97,66

Total -- -- -- -- -- -- -- --

1.04 0

Details of large sales returns None

Daily correlations that will occur in this period by category

If the total amount of transactions is estimated, the actual daily related transactions of the reporting company during the reporting period do not exceed the total estimated amount.

Actual performance during the period (if any)

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Whether there are non-operating related creditor's rights and debt transactions

Yes □No

Claims receivable from related parties

Does it exist? New in this period. Recovered in this period.

Balance at the beginning of the period Interest for the period Ending balance Related parties Related relationship Reason for formation Non-operating Amount (10,000) Interest rate (10,000 yuan) (10,000 yuan) (10,000 yuan)

Fund occupation Yuan) Yuan)

Qingdao Baiyang

Atomic Public

Shenghui Medical 12,717.2 12,836.1

The company has issued current accounts of 3.29% 118.93 0 Equipment Limited 1 4

for sale

company

controlling shareholder

Beijing Baiyang

Baiyang Pharmaceutical

Home Health Management Equity Disposal

Group Co., Ltd. Yes 0 5,746.16 3,000 0.00% 0 2,746.16 Limited public funds

controlled by the company

Division

enterprise

As of April 17, 2025, the company has recovered its claims against Qingdao Baiyang Shenghui Medical Equipment Co., Ltd., and the related claims are against the public and the related claims against the company's operations.

There is no significant impact on the company's operations and financial status.

results and financial performance

As of March 31, 2026, the company has recovered its claims against Beijing Baiyangjia Health Management Co., Ltd. This related claim has an impact on the company.

There is no significant impact on the operating and financial conditions.

Debts payable to related parties

New in this issue Return in this issue

Balance at the beginning of the period Interest for the period Ending balance Related parties Related relationship Reason for formation Amount (10,000) Amount (10,000) Interest rate (10,000 yuan) (10,000 yuan) (10,000 yuan)

Yuan) Yuan)

BAHEAL PHARMACEUTICALS BAHEAL PHARMACEUTICALS

Group Co., Ltd. Controlling shareholder Equity transfer 32,106.52 19,948.89 12,157.63 Company funds

Qingdao Huizhu

Baheal Health Controlling shareholder Baheal Pharmaceuticals

Industrial investment Significant impact Equity transfer 9,519.56 5,711.74 3,807.83 Funds (enterprises with

limited partnership)

Qingdao Bodhi

Yonghe Investment Controlling Shareholder Baheal Pharmaceutical

Equity transfer of enterprises controlled by the management center 1,234.08 740.45 493.63 (limited partnership)

Guy)

The related debts have no significant impact on the company's operating results. During the reporting period, the company paid the equity transfer payment of Baheal Pharmaceutical according to the progress agreed in the contract. The related debts have no significant impact on the company's operations and financial status.

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

In order to realize the industrial strategic layout and seize strategic cooperation opportunities, the company's wholly-owned subsidiary Hebei Baiyang Chengda Pharmaceutical Co., Ltd. subscribed for shares of Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership) with its own funds. After the completion of the transaction, the total subscribed capital contribution of the investment fund was RMB 200 million. Hebei Baiyang Chengda Pharmaceutical Co., Ltd., as a limited partner, subscribed RMB 58 million, accounting for 29% of the total capital contribution. In February 2025, the investment fund completed the registration procedures with the Asset Management Association of China and completed the first phase of fund raising.
In order to establish a long-term friendly strategic cooperative relationship and give full play to the resource advantages of both parties, the company's wholly-owned subsidiary Baiyang Zhihe signed a "Commercial Cooperation Agreement" with Beijing Giluntai Pharmaceutical Co., Ltd., stipulating that Baiyang Zhihe will obtain exclusive marketing rights for related products and pay a total of no more than RMB 50 million in stages in accordance with the agreement as consideration for obtaining exclusive marketing rights.
In order to optimize the asset structure and improve asset operation efficiency, the company signed an "Equity Transfer Agreement" with Beijing Baiyangjia Health Management Co., Ltd. and transferred the 40.0465% equity of Beijing Wuweikang Technology Co., Ltd. held by the company to Beijing Baiyangjia Health Management Co., Ltd. at a price of 57.4616 million yuan. In December 2025, the transaction was completed.
In order to meet the business development needs of the company's wholly-owned subsidiary Hebei Baiyang Zap Medical Equipment Technology Co., Ltd. and enhance its capital strength, Hebei Baiyang Zap Medical Equipment Technology Co., Ltd. introduced Zap Therapeutic Solutions Limited to increase its capital by US$4.9 million.
In order to realize the strategic layout of the industry and seize the opportunities for strategic cooperation, the company plans to jointly invest with Suzhou Baiyang Feifan Enterprise Management Co., Ltd. and others to establish the Suzhou Baiyang Equity Investment Fund Partnership (Limited Partnership). The subscribed capital of the fund is RMB 100 million. The company plans to serve as a limited partner and subscribe to invest RMB 43 million with its own funds, accounting for 43% of the total capital contribution.

Inquiries related to the temporary report disclosure website of major related party transactions

Temporary announcement name Temporary announcement disclosure date Temporary announcement disclosure website name "Announcement on the Subscription of Investment Fund Shares by Wholly-Owned Subsidiaries and Related Transactions" January 24, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the Progress of Subscription of Investment Fund Shares by Wholly-Owned Subsidiaries" February 19, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the Progress of Subscription of Investment Fund Shares by Wholly-Owned Subsidiaries" February 20, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the Signing of Commercial Cooperation Agreements and Related Transactions by Wholly-Owned Subsidiaries" April 24, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the sale of equity interests in participating companies and related transactions" October 30, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the capital increase in wholly-owned subsidiaries by related parties and related transactions" November 19, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on the progress of the sale of equity interests in participating companies and related transactions" December 31, 2025 Juchao Information Network (www.cninfo.com.cn) "Announcement on joint investments and related transactions with professional investment institutions" December 31, 2025 Juchao Information Network (www.cninfo.com.cn)

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

Rental situation description

The company and its subsidiaries Qingdao Baiyang Health Pharmacy Chain Co., Ltd., Beijing Baiyang Zhihe Medical Achievements Transformation Service Co., Ltd., and Hebei Baiyang Chengda Pharmaceutical Co., Ltd. respectively signed house leasing contracts with the lessors, and rented the houses for daily operations.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The company has signed house leasing contracts with Baiyang Pharmaceutical Group Co., Ltd., Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd., etc., and rents out the houses for daily operations.

Projects that bring profits and losses to the company exceeding 10% of the company's total profit during the reporting period

□Applicable Not applicable

During the company's reporting period, there were no leasing projects that brought profits or losses to the company that accounted for more than 10% of the company's total profits during the reporting period.

Major guarantee

Applicable □Not applicable

Unit: 10,000 yuan

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 (such as completion of the transaction)

Yes) Warranty Disclosure Date Yes)

None

The company’s guarantees for 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)

2024

jointly and severally liable

July 10 1,270.4 None None 3 years Yes No

Any guarantee

day

Qingdao 100 Years 2024

1,130.1 Joint and several liability

Yang Health August 9, 2023 None None 3 years Yes No

5 guarantees

Pharmacy Company April 25 19,000

Lock Limited Date 2024

jointly and severally liable

Company September 10 952.69 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

October 10 830.57 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

February 07 60 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

June 24 380 None None 3 years Yes No

Any guarantee

day

2024

Qingdao Bai jointly and severally liable

February 21, 2023 61.26 None None 3 years Yes No Yangyimei Any guarantee

April 25 4,800

Technology has

Day 2024

Co., Ltd. jointly and severally liable

February 21 23.3 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

April 29 196.51 None None 3 years Yes No

Any guarantee

day

2024

jointly and severally liable

April 29 41.32 None None 3 years Yes No

Any guarantee

day

Qingdao 100 2024 2024

21,000 jointly and severally liable

Yang Health April 23 November 08 471.92 None None 3 years Yes No

Any guarantee

Pharmacy every day

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Lock Limited 2024

Joint and several liability company December 10 601.05 None None 3 years Yes No Guarantee date

2025

Joint and several liability01month07 436.22 None None 3 years Yes No Guarantee date

2025

Joint and several liability March 10 728.2 None None 3 years Yes No Guarantee date

2025

Joint and several liability April 10 906.46 None None 3 years Yes No Guarantee date

2025

Joint and several liability 05.09 900 None None 3 years Yes No Guarantee date

2025

Joint liability June 10 776.67 None None 3 years Yes No Guarantee date

2025

Joint and several liability July 10 845.77 None None 3 years No No guarantee date

2025

Joint and several liability April 30 500 None None 3 years No No guarantee Qingdao Dongri

2024

Source Bio 2025

April 23 10,000 Jointly Liable Technology Yes May 30 300 None None 3 years No No Day Ren Guarantee Co., Ltd. Day

2025

Joint and several liability August 25 200 None None 3 years No No guarantee date

2024

Joint liability September 10 177.86 None None 3 years Yes No Guarantee date

2024

Joint and several liability September 23 162.43 None None 3 years Yes No Guarantee date

2024

Tianjin Bai Jointly and severally liable October 31, 2024 148.43 None None 3 years Yes No foreign medicine Responsibility guarantee April 23 4,000 days

limited company

Day 2024

Company Jointly and severally liable November 08 194.1 None None 3 years Yes No Guarantee date

2024

Joint and several liability November 22 317.19 None None 3 years Yes No Guarantee date

2024

Joint liability December 02 1,000 None None 3 years Yes No Guarantee date

2025

Joint and several liability March 27 250 None None 3 years No No liability guarantee Qingdao for 100 days

2024

Yangyimei 2025

April 23 4,800 Jointly Liable Technology Yes May 14 370 None None 3 years No No Day Ren Guarantee Co., Ltd. Day

2025

Joint and several liability November 26 380 None None 3 years No No guarantee date

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

2024

Joint and several liability September 24 700 None None 3 years Yes No Guarantee date

Qingdao 100 Years 2024

Jointly and Severally Responsible for Foreign Picky 2024 December 27 1,000 None None 3 years Yes No Ren Guarantee Meow Trading April 23 3,600

Limited public date 2025

Joint and several liability department March 31 1,000 None None 3 years No No guarantee date

2025

Joint liability August 25 700 None None 3 years No No guarantee date

2024

Joint and several liability October 30 100 None None 3 years Yes No Guarantee Qingdao Dian Day

2024

Public Culture 2025

April 23 1,200 Joint and several liability communication Yes February 26 100 None None 3 years No No Day Ren Guarantee Co., Ltd. Day

2025

Joint and several liability March 20 200 None None 3 years No No guarantee date

2025

Joint and several liability08August 08 980.71 None None 3 years No No guarantee date

2025

1,036.6 Joint and several liability September 10 None None 3 years No No Qingdao 3 Guarantee date

Foreign Health 2025

2025

Pharmacy Co., Ltd. April 24 21,000 1,102.2 Joint liability October 10 None None 3 years No No Lock limited days 8 Guarantee days

company

2025

1,006.3 Joint and several liability November 10 None None 3 years No No 4 Guarantee date

2025

Joint and several liability December 10 829.53 None None 3 years No No guarantee date

Qingdao East

2025

source organism

April 24 7,200

Technology has

day

Ltd.

2025

Joint and several liability September 23 311.5 None None 3 years No No guarantee for 100 days in Tianjin

2025

Foreign Medicine 2025

April 24 2,400 Joint and Several Liability Co., Ltd. November 19 349.27 None None 3 years No No Day Appointment of Guarantee Department Day

2025

Joint and several liability December 17 339.23 None None 3 years No No guarantee date

2025

Shandong Baiyuan Jointly and severally liable May 28, 2025 2,000 None None 3 years No Feyang Medicine Responsibility Guarantee April 24 4,800

Technology has

Day 2025

Co., Ltd. Joint and several liability June 10 2,000 None None 3 years No No guarantee date

Qingdao 100 2025

2,400

Yang Yimei April 24

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Technology has

Ltd.

Qingdao Hundred

Foreign Picky 2025

Meow Trading April 24 4,440

Limited Public Day

Division

Qingdao Code

2025 2025

Public culture jointly and severally liable

April 24 1,200 December 04 100 None None 3 years No No guarantee for dissemination

day day

Ltd.

2025

Joint and several liability July 18 5,000 None None 3 years No No guarantee date

2025

Beijing 100 jointly and severally liable

September 10 1,010 None None 3 years No No foreign investment guarantee

day

Medicine 2025

2025

Fruit transformation April 24 20,000 Joint and several liability

September 12 600 None None 3 years No No service is guaranteed.

day

Ltd.

2025

Joint and several liability October 10 900 None None 3 years No No guarantee date

2025

Joint and several liability October 24 490 None None 3 years No No guarantee date

2025

2,277.6 Joint and several liability November 18 None None 3 years No No 6 Guarantee date

2025

Hebei Bai jointly and severally liable

November 28, 2025 101.32 None None 3 years No No Yang Chengda Ren Guaranty

April 24 20,000

Medicine has

Day 2025

Co., Ltd. 2,203.2 Joint and several liability December 18 None None 3 years No No 6 Guarantee date

2025

Joint and several liability December 26 319.83 None None 3 years No No guarantee

day

Beijing hundred

Yang Guosheng 2025

Medical equipment April 24 2,000

Machinery Co., Ltd.

company

Qingdao Hundred

Yang Yongjian 2025

Investment Development April 24 3,500

Exhibition limited days

company

The total amount of guarantees approved for subsidiaries during the reporting period was 88,940, and the actual amount of guarantees incurred was 41,370.061 (B1) (B2).

Approved guarantee limit for subsidiaries at the end of the reporting period 129,540 Total actual guarantee balance 27,803.32 Total (B3) (B4)

Guarantees provided by subsidiaries to subsidiaries

Guarantee pair Guarantee amount Guarantee amount Actual issuance Actual guarantee Guarantee type Collateral Counter guarantee Guarantee period Whether to perform Whether it is

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Object name, degree of relevance, date of birth, insured amount type (if the situation is completed, related party announcement is disclosed) (if the guarantee is disclosed on the date) Shanghai Baidu

2024 2024

Foreign Pharmaceutical Joint and Several Liability July 12 6,000 August 14 500 None None 3 years Yes No Technology Liability Guarantee Day Day

Ltd.

2024

Joint liability January 30 1,000 None None 3 years Yes No Guarantee for Shanghai for 100 days

2024

Foreign Pharmaceutical 2024

July 12 4,000 Jointly Liable Technology Yes June 27 500 None None 3 years Yes No Day Ren Guarantee Co., Ltd. Day

2024

Joint and several liability08.14 462 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 18 32.47 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 18 44 None None 3 years Yes No Any guarantee date

2024

Joint and several liability July 18 19.6 None None 3 years Yes No Guarantee Shanghai for 100 days

2024

Foreign Pharmaceutical 2024

July 12 5,000 Jointly Liable Technology Yes July 18 693 None None 3 years Yes No Day Ren Guarantee Co., Ltd. Day

2024

Joint and several liability July 18 27.3 None None 3 years Yes No Guarantee date

2024

Joint and several liability08.16 231 None None 3 years Yes No Guarantee date

2024

Joint and several liability October 12 693 None None 3 years Yes No Any guarantee date

2024

Shanghai Baidu Jointly and severally liable July 09, 2024 500 None None 3 years Yes Feyang Pharmaceutical Ren Guaranty July 12 3,200

Technology has

Day 2024

Co., Ltd. Joint and several liability August 06 1,000 None None 3 years Yes No Guarantee date

2024

Shanghai Baidu Jointly and severally liable June 20, 2024 500 None None 3 years Yes Feyang Pharmaceutical Ren Guaranty July 12 1,000

Technology has

Day 2024

Co., Ltd. Joint and several liability July 15 500 None None 3 years Yes No Any guarantee date

2024

Joint liability December 12 646.8 None None 3 years Yes No Shanghai Bairen Guarantee 2024

foreign pharmaceutical

September 04 5,000 2025

Technology has Joint and several liability date January 13 693 No No 3 years Yes No Limited company Liability guarantee date

2025 Joint and several liability 693 None None 3 years Yes No February 20 Liability guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

day

2025

Joint and several liability March 17 500 None None 3 years No No guarantee date

2025

Joint and several liability March 18 693 None None 3 years Yes No Any guarantee date

2025

Joint and several liability April 23 924 None None 3 years Yes No Guarantee date

2025

Joint and several liability June 13 231 None None 3 years Yes No Guarantee date

2025

Joint and several liability08August 04 924 None None 3 years No No guarantee date

2025

Joint and several liability May 06 1,000 None None 3 years No No liability guarantee Shanghai for 100 days

2025

Foreign Pharmaceutical 2025

April 17 4,000 Jointly Liable Technology Yes June 13 924 None None 3 years Yes No Day Ren Guarantee Co., Ltd. Day

2025

Joint liability August 12 500 None None 3 years No No guarantee date

2024

Joint and several liability May 17 118.02 None None 3 years No No guarantee date

2024

Joint and several liability May 17 100 None None 3 years No No guarantee date

2024

Joint and several liability May 17 176 None None 3 years No No guarantee date

2024

Joint and several liability May 17 100 None None 3 years No No guarantee date

2024

Joint and several liability May 17 121 None None 3 years No No Qingdao Bai Ren Guarantee 2024

foreign pharmaceutical

July 12 15,000 2024

Co., Ltd. Joint and several liability date May 17 100 None None 3 years No No Company liability guarantee date

2024

Joint and several liability May 17 121 None None 3 years No No guarantee date

2024

Joint and several liability May 17 100 None None 3 years Yes No Guarantee date

2024

Joint and several liability May 17 100 None None 3 years Yes No Guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024 Joint and several liability 30 None None 3 years No No June 17 Liability guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

day

2024

Joint and several liability June 17 45 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years No No guarantee date

2024

Joint and several liability June 17 30 None None 3 years Yes No Any guarantee date

2024

Joint and several liability June 17 30 None None 3 years Yes No Any guarantee date

2024

Joint and several liability July 04 100 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 04 100 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 04 136 None None 3 years No No guarantee date

2024

Joint and several liability July 04 100 None None 3 years No No guarantee date

2024

Joint and several liability July 04 136 None None 3 years No No guarantee date

2024

Joint and several liability July 04 145 None None 3 years No No guarantee date

2024

Joint and several liability July 04 150 None None 3 years No No guarantee date

2024

Joint and several liability July 04 100 None None 3 years No No guarantee date

2024

Joint and several liability July 04 134.74 None None 3 years No No guarantee date

2024

Joint and several liability July 23 122 None None 3 years Yes No Guarantee date

2024

Joint and several liability July 23 100 None None 3 years Yes No Any guarantee date

2024 Joint and several liability169 None None 3 years No No July 23 Liability guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

day

2024

Joint and several liability July 23 100 None None 3 years No No guarantee date

2024

Joint and several liability July 23 169 None None 3 years No No guarantee date

2024

Joint and several liability July 23 137 None None 3 years No No guarantee date

2024

Joint and several liability July 23 200 None None 3 years No No guarantee date

2024

Joint and several liability July 23 100 None None 3 years No No guarantee date

2024

Joint and several liability July 23 167.54 None None 3 years No No guarantee date

2024

Joint and several liability08.20 286.31 None None 3 years Yes No Guarantee date

2024

Joint and several liability August 20 95.54 None None 3 years Yes No Guarantee date

2024

Joint liability August 20 182.31 None None 3 years No No guarantee date

2024

Joint and several liability August 20 95.54 None None 3 years No No guarantee date

2024

Joint liability August 20 182.31 None None 3 years No No guarantee date

2024

Joint and several liability August 20 119.93 None None 3 years No No guarantee date

2024

Joint and several liability August 20 226.89 None None 3 years No No guarantee date

2024

Joint and several liability August 20 95.54 None None 3 years No No guarantee date

2024

Joint and several liability08.20 108.59 None None 3 years No No guarantee date

2024

Joint and several liability September 14 85.03 None None 3 years Yes No Guarantee date

2024

Joint and several liability September 14 56.69 None None 3 years Yes No Guarantee date

2024

Joint and several liability September 14 85.03 None None 3 years No No guarantee date

2024 Joint and several liability 56.69 None None 3 years No No September 14 Any guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

day

2024

Joint and several liability September 14 85.03 None None 3 years No No guarantee date

2024

Joint liability September 14 70.86 None None 3 years No No guarantee date

2024

Joint and several liability September 14 106.29 None None 3 years No No guarantee date

2024

Joint and several liability September 14 56.69 None None 3 years No No guarantee date

2024

Joint liability September 14 105.29 None None 3 years No No guarantee date

2024

Joint liability November 05 227.9 None None 3 years Yes No Guarantee date

2024

Joint and several liability November 05 151.93 None None 3 years Yes No Guarantee date

2024

Joint liability November 05 227.9 None None 3 years No No guarantee date

2024

Joint liability November 05 151.93 None None 3 years No No guarantee date

2024

Joint liability November 05 227.9 None None 3 years No No guarantee date

2024

Joint liability November 05 189.92 None None 3 years No No guarantee date

2024

Joint liability November 05 284.87 None None 3 years No No guarantee date

2024

Joint liability November 05 151.93 None None 3 years No No guarantee date

2024

Joint liability November 05 283.87 None None 3 years No No guarantee date

2024

Joint and several liability November 26 70.52 None None 3 years Yes No Guarantee date

2024

Joint and several liability November 26 47.01 None None 3 years Yes No Guarantee date

2024

Joint and several liability November 26 70.52 None None 3 years No No guarantee date

2024

Joint and several liability November 26 47.01 None None 3 years No No guarantee date

2024 Joint and several liability 70.52 None None 3 years No No November 26 Any guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

day

2024

Joint liability November 26 58.76 None None 3 years No No guarantee date

2024

Joint and several liability November 26 88.14 None None 3 years No No guarantee date

2024

Joint and several liability November 26 47.01 None None 3 years No No guarantee date

2024

Joint and several liability November 26 70.52 None None 3 years No No guarantee date

2024

Joint and several liability December 27 86.95 None None 3 years Yes No Guarantee date

2024

Joint and several liability December 27 57.96 None None 3 years Yes No Guarantee date

2024

Joint and several liability December 27 86.95 None None 3 years No No guarantee date

2024

Joint and several liability December 27 57.96 None None 3 years No No guarantee date

2024

Joint and several liability December 27 86.95 None None 3 years No No guarantee date

2024

Joint and several liability December 27 72.46 None None 3 years No No guarantee date

2024

Joint and several liability December 27 108.68 None None 3 years No No guarantee date

2024

Joint and several liability December 27 57.96 None None 3 years No No guarantee date

2024

Joint and several liability December 27 86.95 None None 3 years No No guarantee date

2025

Joint and several liability June 16 1,000 None None 3 years No No guarantee date

2025

Joint and several liability August 21 1,000 None None 3 years No No guarantee date

Shanghai Hundred 2025

2025 Jointly Responsible Foreign Pharmaceutical September 03 231 None None 3 years No No April 24 40,200 Ren Guaranty Technology Yes Day

day

Ltd. 2025

Joint and several liability October 09 693 None None 3 years No No guarantee date

2025

Joint liability November 10 600.6 None None 3 years No No guarantee date

2025 Joint and several liability 462 None None 3 years No No December 17 Liability guarantee

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

day

Qingdao Hundred

2025

foreign pharmaceutical

April 24 15,000

limited company

day

Division

Approval of subsidiaries during the reporting period

The company's total guarantee amount is 59,200. The actual guarantee amount is 27,376.592 (C1). (C2)

Approved at the end of the reporting period

Guarantee limit for subsidiaries 79,200 Total actual guarantee balance 14,021.59 Total (C3) (C4)

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 148,140 Total amount incurred 68,746.65 (A1+B1+C1) (A2+B2+C2)

Actual guarantees approved at the end of the reporting period

Total guarantee limit 208,740 Total balance 41,824.91 (A3+B3+C3) (A4+B4+C4)

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

16.98% production ratio

Among them:

Provide guarantees for shareholders, actual controllers and their related parties

The balance (D)

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

20,501.25 Debt guarantee balance provided by the insured party (E)

The amount of the total guarantee exceeding 50% of the net assets (F) 0 The total amount of the above three guarantees (D+E+F) 20,501.25 For unexpired guarantee contracts, guarantee liabilities occurred during the reporting period

There may be any evidence indicating the possibility of being jointly and severally liable for repayment. None

Description of the situation (if any)

Explanation of providing external guarantees in violation of prescribed procedures (such as

None

Yes)

Note: 1 Including the guarantee amount incurred in this year and in previous years that continues to this year;

2 Including the guarantee amount incurred in this year and in previous years continuing to this year.

Specific instructions for using composite guarantees

Entrusting others to manage cash assets

(1) Entrusted financial management situation

Applicable □Not applicable

Overview of entrusted financial management during the reporting period

Unit: 10,000 yuan

Product Category Risk Characteristics Balance of entrusted financial management during the reporting period Overdue amount not recovered Bank financial management products Low risk 0 0 Brokerage financial management products Low risk 0 0 The company entrusts a financial institution to carry out asset management as a single client, or invests in high-risk entrusted financial management with low security and poor liquidity. Specific circumstances □ Applicable  Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(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

Overall use of raised funds

Applicable □Not applicable

Unit: 10,000 yuan

report

End of term

Report Cumulative

Accumulated Raised Cumulative Not yet Changed during the current period Idle calculation Funds Changed Not yet used Raised Already used Changed Purpose Two-year securities Raising Used Raising Purpose Used Raising Raising Raised Funds Used Raising Purpose Raised Funds Raised Ratio of Raised Funds Year Method Net Amount Raised Funds Raised Date Total Total Funds (3) Purpose of Funds Raised Funds Purpose (1) Total Funds The total amount of funds raised = the total amount of funds and the ratio of the total amount of funds to be deducted (2) (2) amount to amount Example

(1)

138.7 10,000 yuan deposited in the company to raise funds in 2021

First time special account 2021 06 40,18 34,26 29,28 85.47 14.59 5,138

Public 0 0 Within 5,000, 5,000 Month 30 6.4 2.05 2.37 % % .71

Issue 5,000 days

Ten thousand yuan will be used to temporarily supplement working capital. 2,937 specific .09 2023

Object Ten thousand yuan 2023 05 86,00 85,22 1,173 32,34 37.95 52,92 50,00Issue 0 0 0.00% Storage year Month 05 0 1.15 .75 0.79 % 9.38 0 Transferable on public day

Exchange company bonds to raise funds

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Coupon Gold Special

household

inside,

49,99

2.29

Ten thousand yuan

used for

temporary

supplement

flow

capital

gold.

126,1 119,4 1,173 61,62 51.57 58,06 55,00Total -- -- 0 5,000 4.18% --

86.4 83.2 .75 3.16 % 8.09 0 Description of the overall use of raised funds:

Fund raising through initial public offering of shares

From 2021 to 2024, the company has used a total of 292.8237 million yuan of raised funds, of which 27,262.05 yuan was used to supplement working capital. Ten thousand yuan, the raised funds used for the "E-commerce Operation Center Construction Project" were 20.1989 million yuan (including interest). After the completion of the "E-commerce Operation Center Construction Project", the net remaining interest income from the special account of raised funds was 4,315.62 yuan, which was used to permanently replenish working capital; the company's cumulative net amount of bank deposit interest, deducting bank fees, etc., was 1.5614 million yuan.

In 2025, the company did not use the funds raised from the initial public offering of stocks; the net amount of bank deposit interest received by the company, minus bank fees, etc., was 28,900 yuan; as of December 31, 2025, the balance of the company's raised funds was 51,387,100 yuan.

Raise funds by issuing convertible bonds to unspecified objects

In 2023-2024, the company has used a total of 311.6704 million yuan of raised funds, of which 64.4311 million yuan was used for the "Baiyang Cloud System Upgrade Project" and 24,721.15 yuan was used to supplement working capital. Ten thousand yuan, the net remaining interest income from the special account for replenishing working capital is 27,737.60 yuan, which is used to permanently replenish working capital; the cumulative net amount of bank deposit interest received by the company after deducting bank fees is 414,200 yuan.

In 2025, the company used raised funds of 11.7375 million yuan, all of which were used for the "Baiyang Cloud System Upgrade Project"; the net amount of bank deposit interest received by the company, minus bank fees, etc., was 76,000 yuan; as of December 31, 2025, the balance of the company's raised funds was 529.2938 million yuan.

Project status of fund-raising commitments

Applicable □Not applicable

Unit: 10,000 Yuan Is it up to

Commitment Project Ending Project has changed As of the end of the period

Investment, Raising, Adjustment, Reach, This Newspaper Report, Feasible

Updated items of this newspaper at the end of the period Investment whether

Financing, securities, project, capital, post-investment, scheduled reporting period, end of period, nature

Project target deadline cumulative progress reached

The project is listed and the super commitment capital can be realized and accumulated whether it can be released.

Nature (including input input (3) expected

Name Date Fund Raising Investment Amount Amount = Benefit

The total amount of financial investment (1) is becoming more and more effective (2) (2)/

Towards future benefits

more) (1)

Commitment to investment projects

2021 Hyundai

First Year 2021 Logistics

30,3

Second public year 06 distribution production discomfort

Yes 20.4 0 Yes Development Month 30 Center Construction Use

Issuance Day Construction

ticket item

2021 2021 Electronics Operations 4,89 2,00 2,01 100. 2023 2,35 4,64

No 0 Yes No First of the Year Year 06 Business Management 6.35 0 9.89 99% Year 05 1.49 9.21

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Second public month 30th operation month 31st

development day center day

stock construction

ticket item

2021

First of the Year 2021

Supplementary 27,2 27,2

Cigong Year 06 35,0 100. Unwell

Flow Supplementary flow No 62.0 0 62.4 No Development Month 30 00 00% used

Funding 5 8

Issuance day

ticket

2023

year direction

Baiyang

Not special

2023 Brand

Definitely right

Year 05 Operation Production 50,0 55,0 0.00 Unwell No 0 0 No

Month 05 Center Construction 00 001 % Available

day construction

Convert

Project

company

bond

2023

year direction

Bu Te Baiyang

2023 2027

Determined cloudification

Year 05 Operation 10,5 10,5 1,17 7,61 72.5 Year 02 Discomfort System No No

Month 05 Management 00 00 3.75 6.87 4% Month 28 User can upgrade

day day

Convert items

company

bond

2023

year direction

Not special

2023

Definite pairing Supplementary 24,7 24,7

Year 05 25,5 100. Uncomfortable flow Flow replacement No 21.1 0 23.9 No

Monthly 05 00 01% available funds 5 2

day

Convert

company

bond

156, 119, 61,6

1,17 2,35 4,64 Subtotal of committed investment projects -- 216. 483. 23.1 -- -- -- -- 3.75 1.49 9.21

82 2 6

Investment direction of super-raised funds

2021

Year 06 Discomfort Discomfort None None No No Month 30 Use Use day 2

156, 119, 61,6

1,17 2,35 4,64Total -- 216. 483. 23.1 -- -- -- -- 3.75 1.49 9.21

82 2 6

Sub-project description "Baiyang Brand Operation Center Construction Project" does not directly add new production equipment, and the project construction does not produce direct economic benefits. Did not meet the plan. The company held the 25th meeting of the third board of directors and the 21st meeting of the third board of supervisors on October 25, 2024. The company reviewed the progress and expected to pass the "Proposal on the Suspension of Implementation of Some Fund-raising Projects" and decided to suspend the implementation of the "Baheang Brand Operation Center Construction Project". Income situation The company held the sixth meeting of the fourth session of the board of directors on April 27, 2026, and reviewed and approved the "Proposal on the Re-evaluation and Temporary Reasons for Partial Fundraising Projects (Including Delayed Implementation)" and decided to postpone the implementation of the "Baheang Brand Operation Center Construction Project". Based on market changes, the company's development strategy and "whether the implementation of the "Baheang Pharmaceutical Brand Commercialization Northern Logistics Base" has been achieved, the company has adjusted the urban layout of the existing logistics system. In recent years, the company expects benefits." We have successively built business branches in Beijing, Langfang and other places, and continued to promote the company's multi-center development strategy. On this basis, the construction progress of the Qingdao regional brand operation center has slowed down. In view of the changes in the urban layout of the company's existing logistics system, in order to avoid waste of resources and duplication of investment, reduce the production and operation costs of the original enterprise, improve the efficiency of the use of raised funds, and safeguard the long-term interests of the company and shareholders, after careful review, the company decided to suspend

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(Result) Implementation of the “Bayang Brand Operation Center Construction Project”. For details, please refer to the "Announcement on the Re-evaluation and Suspension of Implementation of Some Fundraising Projects" disclosed by the company on the cninfo.com (www.cninfo.com.cn).

"Baiyang Cloud System Upgrade Project" is an information project and does not directly generate project income; however, this project will effectively improve the company's overall operational capabilities and work efficiency, reduce operating costs, and thereby indirectly increase the company's profitability.

The company held the fourth meeting of the fourth board of directors on December 30, 2025, and reviewed and approved the "Proposal on the Extension of Some Fund-raising Projects" and decided to extend the time for the "Baiyang Cloud System Upgrade Project" to reach the scheduled usable state until February 28, 2027. For details, please refer to the "Announcement on the Delay of Some Fund-raising Projects" disclosed by the company on the cninfo.com (www.cninfo.com.cn).

Project feasibility The company's core business is brand operation business, and brand operation business revenue is the company's main source of profit. Wholesale distribution business is not the company's key development direction for major changes in the future. The brand operation industry has broad development prospects, and the company has competitive advantages such as leading brand operation capabilities. According to the situation of publicization, the company's change of "modern logistics distribution center construction project" is a prudent decision based on changes in factors such as the market environment and the company's business development needs. It is closely related to the company's development strategy and existing main business, and is conducive to the company's further improvement of profitability.

over-funded

Amount, purpose

Not applicable

and usage progress

situation

There is unauthorized change

Raise more funds

Purpose, violation Not applicable

Taking up the raised funds

gold situation

Raise funds to invest

capital project implementation

Not applicable

Change of location

situation

Raise funds to invest

capital project implementation

Not applicable

way to adjust

situation

Applicable

As of April 20, 2023, the company has pre-invested a total of RMB of RMB raised funds in the investment project "Baiyang Cloud System Upgrade Project" with self-raised funds.

22,197,667.70 yuan. On June 20, 2023, the company held the eighth meeting of the third board of directors and the seventh meeting of the third board of supervisors.

The meeting reviewed and approved the "Proposal on Using Raised Funds to Replace Self-raised Funds for Preliminary Investment Projects", and agreed to the company's use of convertible bonds to raise investment and replace

The raised capital of RMB 22,197,667.70 was used to replace the self-raised funds invested in the investment project in advance. Lixin Certified Public Accountants LLP (Special general merger situations

(Partner) issued the "Special Assurance Report on the Replacement of Funds Raised by Qingdao Baiyang Pharmaceutical Co., Ltd." (Xinhuishi Baozi [2023] No. ZG11752).

Applicable

On July 5, 2024, the company held the 21st meeting of the third board of directors and the 18th meeting of the third board of supervisors, and reviewed and approved the "Proposal on Using Part of Idle Raised Funds to Temporarily Supplement Working Capital" and agreed to use no more than 570 million yuan of idle raised funds to temporarily supplement working capital, including 50 million yuan of funds raised from the company's initial public offering of stocks and idle raised funds issued to unspecified objects.

The convertible bonds raised 520 million yuan, and the period of use shall not exceed 12 months from the date of approval at the 21st meeting of the third board of directors of the company.

month. As of July 2, 2025, the company has returned all 570 million yuan of idle raised funds used to temporarily supplement working capital to the company to replenish working capital.

The special account for raised funds shall be used for less than 12 months.

situation

On August 14, 2025, the company held the 32nd meeting of the third board of directors and the 26th meeting of the third board of supervisors. The "Proposal on Using Part of Temporarily Idle Raised Funds to Temporarily Supplement Liquidity Capital" agreed that the company would use temporarily idle raised funds of no more than 550 million yuan to temporarily supplement working capital, including 5,000 yuan of funds raised from the company's initial public offering. Ten thousand yuan and 500 million yuan of funds raised from the issuance of convertible bonds to unspecified objects, the use period shall not exceed 12 months from the date of review and approval at the 32nd meeting of the third session of the board of directors of the company. Applicable

Project implementation

In May 2023, after the "E-commerce Operation Center Construction Project" was completed, the special account for raised funds generated interest income of 4,315.62 yuan and used the current raised funds.

To permanently replenish working capital; in July 2023, after the completion of the "Supplementary working capital (convertible bond investment project)", the amount of the balance of the special account for raised funds

Interest income of RMB 27,737.60 was generated to permanently replenish working capital; according to relevant rules, the above-mentioned use of surplus raised funds to permanently replenish the flow and reasons

Liquidity matters do not need to be reviewed by the board of directors or shareholders' meeting.

As of December 31, 2025, the company's unused funds raised from the initial public offering of stocks were RMB 51.3871 million, of which RMB 50 million unused was used to temporarily supplement working capital and was implemented through a special account for raised funds, and the remaining RMB 1.3871 million was deposited in the company's special account for raised funds for the purpose of raising funds. within; the company’s unused funds raised from convertible bonds amounted to RMB 529.2938 million, of which RMB 499.9229 million was used to temporarily replenish working capital, and its destination was implemented through a special account for raised funds, while the remaining RMB 29.3709 million was deposited in the company’s special account for raised funds. The unused raised funds will continue to be used for investment project expenses in the future.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Raise funds to make

In use and disclosed

None

Problems

or other situations

Note: 1 RMB 50 million of which was changed from the company's initial public offering of stock investment project "Modern Logistics Distribution Center Construction Project" to "Bayang Brand Operation"

heart building project”

2 not applicable

Changes in projects with raised funds

Applicable □Not applicable

Unit: 10,000 yuan

After change Deadline after change Deadline Project reaches

Project Proposal The project in this report corresponds to the actual final investment and whether the planned investment in this report is achieved.

Financing item Raiser After change, the actual feasibility of the investment during the fundraising period, the original commitment, the cumulative investment progress, the usable period, and the expected realization

The project name of the project is raised. Input money. Whether to issue the project? Input amount (3)=(2) Benefits on status day

Total Amount Student Major

(2) )/(1) period

(1) Changes in 2021 Baiyangpin Modern Things

First public announcement First public brand operation Logistics distribution

5,000 0 0 0.00% 0 Not applicable No Development Bank Development Bank Central Construction Central Construction

Stock Setup Project Setup Project

Total -- -- -- 5,000 0 0 -- -- 0 -- -- On January 7, 2022, the company held the 24th meeting of the second board of directors and the 16th meeting of the second board of supervisors, and held the first extraordinary shareholders meeting of 2022 on January 24, 2022. They reviewed and approved the "Proposal on Changing the Use of Funds Raised by Some Initial Public Offerings of Stocks" respectively, and agreed that the company would change the use of some funds raised by the initial public offering of stocks. According to market changes and the company's operating needs, in order to improve the efficiency of the use of raised funds, the company terminated the first change of reasons, decision-making procedures and information. The public issuance of stock investment project "Modern Logistics Distribution Center Construction Project" will no longer be implemented, and the balance of 50 million yuan of funds raised for the purpose of disclosure of the above items (divided into specific projects) (including the accumulated bank interest income received and deducting handling fees, etc., the specific amount shall be based on the actual remaining amount of raised funds at the time of implementation) will be used for the new project "Baiyang Brand Operation Center Construction Project". The company's independent directors and board of supervisors all expressed agreement on the above-mentioned changes to the investment project, and the sponsor Dongxing Securities Co., Ltd. issued a special verification opinion. For details, please see the company’s website on cnchao.com

(www.cninfo.com.cn) relevant announcements disclosed.

The "Baiyang Brand Operation Center Construction Project" does not directly add new production equipment, and the project construction does not produce direct economic benefits. The company held the 25th meeting of the third board of directors and the 21st meeting of the third board of supervisors on October 25, 2024, and reviewed and approved the "Proposal on Suspending the Implementation of Some Fund-raising Projects" and decided to suspend the implementation of the "Baheang Brand Operation Center Construction Project." The company held the sixth meeting of the fourth board of directors on April 27, 2026, and reviewed and approved the "Proposal on Re-evaluation and Suspension of Implementation of Some Fund-raising Projects" and decided to suspend the implementation of the "Baheang Brand Operation Center Construction Project". Based on market changes, the company's development strategy and the "Baheang Pharmaceutical Brand Commercialization Northern Logistics Base" did not meet the planned progress or expected revenue

Based on the implementation situation, the company adjusted the urban layout of the existing logistics system. In recent years, the company has successively built projects in Beijing, Langfang and other places and the reasons (divided into specific projects)

Set up business divisions to continue to promote the company's multi-center development strategy. On this basis, the construction progress of Qingdao regional brand operation center has slowed down. In view of the changes in the urban layout of the company's existing logistics system, in order to avoid resource waste and duplication of investment, reduce corporate production and operation costs, improve the efficiency of the use of raised funds, and safeguard the long-term interests of the company and shareholders, after careful review, the company decided to postpone the implementation of the "Baheang Brand Operation Center Construction Project." For details, please refer to the "Announcement on the Re-evaluation and Suspension of Implementation of Some Fundraising Projects" disclosed by the company on the cninfo.com (www.cninfo.com.cn).

The feasibility of the project after the change has changed significantly

Not applicable

Description of big changes

Verification opinions of intermediaries on the storage and use of raised funds

Applicable □Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Dongxing Securities Co., Ltd. has verified the deposit, management and use of the company's 2025 raised funds and issued the "Verification Opinions of Dongxing Securities Co., Ltd. on the deposit, management and use of Qingdao Baiyang Pharmaceutical Co., Ltd.'s 2025 raised funds". The sponsor believes that the deposit, management and use of funds raised by Baheal Pharmaceutical in 2025 are in compliance with the "Administrative Measures for the Sponsorship Business of Securities Issuance and Listing", "Shenzhen Stock Exchange GEM Stock Listing Rules", "Supervisory Rules for Funds Raised by Listed Companies" and "Self-Discipline Supervision Guidelines for Listed Companies of Shenzhen Stock Exchange No. 2" No. - Standardized Operation of GEM Listed Companies" and other laws and regulations, normative documents and the company's raised funds management system, the raised funds were stored in special accounts and used specifically, and relevant information disclosure obligations were performed in a timely manner. There was no harm to the interests of shareholders, and there was no illegal use of raised funds. The sponsor has no objection to the deposit, management and use of funds raised by the company in 2025.

Lixin Accounting Firm (Special General Partnership) performed a reasonable assurance assurance business on the "Special Report on the Deposit, Management and Use of Raised Funds of Qingdao Baiyang Pharmaceutical Co., Ltd. in 2025" and issued the "Assurance Report on the Special Report of Qingdao Baiyang Pharmaceutical Co., Ltd. on the Deposit, Management and Use of Raised Funds in 2025" by Lixin Accounting Firm (Special General Partnership). Lixin Accounting Firm (Special General Partnership) believes that the special report on the storage, management and use of funds raised by Baheal Pharmaceuticals in 2025 is in accordance with the China Securities Regulatory Commission's "Regulations on the Supervision of Funds Raised by Listed Companies" (CSRC Announcement [2025] No. 10), the "Shenzhen Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies" and the "Shenzhen Stock Exchange GEM Listed Companies Self-Regulatory Guidelines No. 2" in all major aspects. No. - Announcement Format" has been prepared to truthfully reflect the storage, management and use of funds raised by Baheal Pharmaceutical in 2025.

17. Description of other major matters

Applicable □Not applicable

In September 2025, the company signed a "Strategic Cooperation Agreement" with Tianjin Jikun Pharmaceutical Technology Co., Ltd., stipulating that the company will participate in its capital increase and share expansion, and that after the innovative drug JK1033 project makes certain progress, the company will have the right to receive priority at a reasonable price agreed upon by both parties. For details, please refer to the "Voluntary Information Disclosure Announcement on the Signing of a Strategic Cooperation Agreement" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on September 12, 2025.

In October 2025, the company and Peking University International Hospital signed a "Radiosurgery Treatment Center Cooperation Agreement", agreeing that both parties will cooperate through complementary resources and synergy of advantages to jointly build and operate a radiosurgery treatment center. For details, please refer to the "Voluntary Information Disclosure Announcement on the Signing of the Cooperation Agreement" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on October 23, 2025.

In November 2025, in order to deepen the cooperation between the two parties in the field of human albumin, the company signed a "Distribution Agreement" with Guangzhou Junxin Pharmaceutical Co., Ltd., stipulating that the company has the right to exclusively promote, sell and distribute the product Apromax® in specific markets in mainland China during the term of the agreement. For details, please refer to the "Voluntary Information Disclosure Announcement on the Signing of a Distribution Agreement" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on November 4, 2025.

18. Major events of the company’s subsidiaries

Applicable □Not applicable

In February 2025, the company's wholly-owned subsidiary Baiyang Zhihe signed a "Promotion Agreement" with Shanghai Roche Pharmaceutical Co., Ltd., stipulating that Shanghai Roche Pharmaceutical Co., Ltd. hired Baiyang Zhihe to exclusively promote the product (rituximab injection, trade name: Rituximab®) in the region (the People's Republic of China, excluding Taiwan, Hong Kong and Macau). For details, please refer to the "Announcement on Voluntary Disclosure of the Signing of Promotion Agreement" disclosed by the company on the cninfo.com (www.cninfo.com.cn) on February 13, 2025.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Section 6 Changes in Shares and Shareholders

1. Changes in shares

Changes in shares

Unit: Before the change in share capital Increase or decrease in this change (+, -) After this change, transfer of reserve fund

Quantity Proportion Issuance of new shares Bonus shares Others Subtotal Quantity Proportion

1. Limited

Conditional shares 67,500 0.01% 1,500 1,500 69,000 0.01%

Country

Home holdings

Country

A legal person holds

Other domestic investors hold 67,500 0.01% 1,500 1,500 69,000 0.01% shares

its

Middle: within the territory

Legal person holdings

within the territory

Natural persons hold 67,500 0.01% 1,500 1,500 69,000 0.01% shares

outside

Capital holdings

its

Chinese: overseas

Legal person holdings

overseas

natural person

2. Unlimited

525,551, 525,555, conditional shares 99.99% 3,267 3,267 99.99%

810 077 copies

People

525,551, 525,555, RMB ordinary 99.99% 3,267 3,267 99.99%

810 077 shares

Environment

listed within

foreign stocks

Environment

Off the market

foreign stocks

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

him

3. Shares 525,619, 525,624,

100.00% 4,767 4,767 100.00%Total 310 077

Reasons for share changes

Applicable □Not applicable

Starting from October 20, 2023, "Bayang Convertible Bonds" will enter the equity conversion period; in 2025, a total of 1,211 "Bayang Convertible Bonds" will be converted into shares, and a total of 4,767 shares of "Bayang Pharmaceuticals" will be converted. For details, please refer to the relevant share transfer announcement disclosed by the company on the Juchao Information Network (www.cninfo.com.cn).

On September 17, 2025, Mr. Li Xuebiao will no longer serve as a supervisor of the company. Mr. Li Xuebiao held 1,500 shares of the company after his resignation. According to relevant regulations, the company's supervisors are not allowed to transfer the shares he holds and add to the company within six months from the date of actual resignation. Therefore, the number of shares subject to sales restrictions increased by 1,500 shares.

Approval status of share changes

Applicable □Not applicable

With the approval of the China Securities Regulatory Commission's "Reply on the Registration of Qingdao Baiyang Pharmaceutical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Targets" (CSRC License [2023] No. 613), the company issued convertible corporate bonds to unspecified targets on April 14, 2023 860 Ten thousand pieces, each with a face value of RMB 100, and a total issuance of RMB 860 million. The company's convertible bonds have been listed for trading on the Shenzhen Stock Exchange on May 5, 2023. The bond is referred to as "Baiyang Convertible Bonds" and the bond code is "123194". According to the "Shenzhen Stock Exchange GEM Stock Listing Rules" and the "Qingdao Baiyang Pharmaceutical Co., Ltd. GEM Issuance of Convertible Corporate Bonds to Unspecified Targets Prospectus", the conversion period of the convertible bonds issued this time will be from the first trading day six months after the completion of the issuance to the maturity date of the convertible bonds, that is, from October 20, 2023 to April 13, 2029. During the reporting period, a total of 4,767 shares of "Baiyang Convertible Bonds" were converted into shares.

Transfer status of changes in shares

□Applicable Not applicable

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

Changes in shares have an impact on financial indicators such as basic earnings per share and diluted earnings per share, net assets per share attributable to the company's common shareholders in the most recent year. For details, please refer to "V. Main Accounting Data and Financial Indicators" in "Section 2 Company Profile and Main Financial Indicators" of this report.

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

The share holder is based on the director, senior

Li Zhen, director and senior management of the company 67,500 0 0 67,500

For senior management personnel, the share lock-up regulations are lifted according to the rules and the holders of restricted shares are exempted.

Supervisor of the company resigned. According to the resignation of supervisor Li Xuebiao 0 1,500 0 1,500, due to the failure to leave the company after six months of the share lock-up requirement, the lock-up was released according to

Sales restrictions

Total 67,500 1,500 0 69,000 -- --

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

During the reporting period, the total number of shares and shareholder structure of the company changed. For details of the changes, please refer to "I. Changes in Shares" of "Section 6. Changes in Shares and Shareholders" of this report for details. For details of changes in the company's assets and liability structure, please refer to the relevant parts of "Section 8. Financial Report".

Existing internal employee shares

□Applicable Not applicable

3. Shareholders and actual controllers

Number of shareholders and shareholding status of the company

Unit: Share

annual report

disclosure

Voting rights at the end of the reporting period. The annual report is disclosed before the end of the reporting period. Holds special voting rights.

Restored preference shares Common shares with restored voting rights at the end of January 13,738 End of January 14,963 0 Shareholders with 0 shares 0

Total number of shareholders (if any) Total number of preference shareholders (Total number of shareholders of Rudong Total number of ordinary shares (if any) (see Note 9) Yes) (See Note 9) Total number of shareholders

number

Shareholdings of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through refinancing) Limited holdings Unlimited holdings Pledge, marking or freezing

Shareholding ratio at the end of the reporting period Increase during the reporting period

Name of shareholder Nature of shareholder Examples of sale conditions Number of shares minus changes Share status Number

Number of shares Number of shares Baiyang Pharmaceutical

Domestic non-state 353,309, Group Co., Ltd. 67.22% 353,309,710 -15,767,690 0 Pledge 173,774,652

There is a legal person 710 company

Beijing Baiyang

Chengchuang Pharmaceutical Domestic and non-national 20,000,0

3.81% 20,000,000 0 0 Pledge 9,980,000 R&D Co., Ltd. Legal person 00 Company

Taizhou Woyuan

private

fund management

12,492,8

Others 2.38% 12,492,864 12,492,864 0 Not applicable Division 0 - Woyuan 64 Linsheng No. 1

private placement securities

investment fund

Taizhou Woyuan

Private equity funds 5,866,30

Others 1.12% 5,866,309 5,866,309 0 Not applicable 0 Management Co., Ltd. 9 Company - Wo

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Yuan Ruize 1

No. Private Placement Certificate

Securities investment fund

gold

Tianjin Huitong

Asset management

Domestic non-state 5,730,75 Partnership 1.09% 5,730,750 0 0 Pledge 2,800,000 Legal person 0 (limited partnership

Guy)

Tianjin Haohui

Asset management

Domestic non-state 4,342,50 Partnership 0.83% 4,342,500 0 0 Pledge 2,100,000 Legal person 0 (limited partnership

Guy)

Tianjin Huizhong

Asset management

Domestic non-state 4,304,25 Partnership 0.82% 4,304,250 0 0 Pledge 2,100,000 Legal person 0 (limited partnership

Guy)

Tianjin Qingzheng

Asset management

Domestic non-state 3,735,00 Partnership 0.71% 3,735,000 -200,000 0 Not applicable 0 Legal person 0 (Limited partnership

Guy)

Tianjin Huitong

Asset management

Domestic non-state 3,270,10 Partnership 0.62% 3,270,100 0 0 Pledge 1,600,000 Legal person 0 (limited partnership

Guy)

Domestic nature 1,926,00 Zhou Qiongfeng 0.37% 1,926,000 1,926,000 0 Not applicable 0 people 0 strategic investors or general

The legal person's profit due to the placement of new shares

For the top 10 shareholders None

condition (if any) (see note

Baheal Pharmaceutical Group Co., Ltd., Beijing Baheang Chengchuang Pharmaceutical Research and Development Co., Ltd., Tianjin Huitong Asset Management Partnership (Limited Partnership)

Relationship among the above shareholders

Explanation that the ultimate actual controllers of Tong Asset Management Partnership (Limited Partnership) are the company’s actual controller, chairman, general manager or acting in concert

Steel; Wang Guoqiang, executive partner of Tianjin Qingzheng Asset Management Partnership (Limited Partnership), is the controlling shareholder of the company, Baiyang Pharmaceutical Group

Director of Tuan Limited.

The above shareholders are involved in entrustment/

Trusted voting rights, waiver None

Explanation of voting rights

Among the top 10 shareholders

Special remarks about the repurchase account

None

Clear (if any) (see note

10)

Shareholdings of the top 10 shareholders without sales restrictions (excluding shares lent through refinancing and shares locked by executives)

Type of shares Name of shareholder Number of shares without selling restrictions held at the end of the reporting period

Type of shares Quantity Baiyang Pharmaceutical Group Co., Ltd. 353,309,710 RMB ordinary shares 353,309,710 Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd. 20,000,000 RMB ordinary shares 20,000,000 Taizhou Woyuan Private Equity Fund Management Co., Ltd.-Woyuan Linsheng

12,492,864 RMB ordinary shares 12,492,864 Private Securities Investment Fund No. 1

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Taizhou Woyuan Private Equity Fund Management Co., Ltd.-Woyuan Ruize

5,866,309 RMB ordinary shares 5,866,309 Private Securities Investment Fund No. 1

Tianjin Huitong Asset Management Partnership (Limited Partnership) 5,730,750 RMB ordinary shares 5,730,750 Tianjin Haohui Asset Management Partnership (Limited Partnership) 4,342,500 RMB ordinary shares 4,342,500 Tianjin Huizhong Asset Management Partnership (Limited Partnership) 4,304,250 RMB ordinary shares 4,304,250 Tianjin Qingzheng Asset Management Partnership (Limited Partnership) 3,735,000 RMB ordinary shares 3,735,000 Tianjin Huitong Asset Management Partnership (Limited Partnership) 3,270,100 RMB ordinary shares 3,270,100 Zhou Qiongfeng 1,926,000 RMB ordinary shares 1,926,000

The ultimate actual controllers of Baiyang Pharmaceutical Group Co., Ltd., Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd., Tianjin Huitong Asset Management Partnership (limited top 10 unrestricted circulation partnerships), Tianjin Haohui Asset Management Partnership (limited partnership), Tianjin Huizhong Asset Management Partnership (limited partnership), Tianjin shareholders, and Huitong Asset Management Partnership (limited partnership) are the actual controller, chairman, and general manager of the company and the top 10 unrestricted circulation steel;
Wang Guoqiang, executive partner of Tianjin Qingzheng Asset Management Partnership (Limited Partnership), is an affiliated relationship between the shareholders of the company and the top 10 shareholders of the company, or is a director of the company;

Explanation on concerted actions 3. The company does not know whether there is an associated relationship or a concerted action relationship between the other top 10 shareholders of tradable shares without sales moratorium, and between the top 10 shareholders of tradable shares without sales moratorium and the top 10 shareholders.

Taizhou Woyuan Private Equity Fund Management Co., Ltd. - Woyuan Linsheng No. 1 Private Securities Investment Fund not only holds 210,200 shares through ordinary securities accounts, but also holds 12,282,664 shares through Guoyuan Securities Co., Ltd.’s customer credit transaction guaranteed securities account.

A total of 12,492,864 shares are held internationally;

Participate in margin trading and securities lending business

Taizhou Woyuan Private Equity Fund Management Co., Ltd. - Woyuan Ruize No. 1 Private Securities Investment Fund In addition to shareholders held through ordinary securities accounts (such as

In addition to 263,100 shares, 5,603,209 shares are also held through the customer credit transaction guaranteed securities account of Guoyuan Securities Co., Ltd. (actual) (see Note 5)

A total of 5,866,309 shares are held internationally;

In addition to holding 1,000 shares through an ordinary securities account, Zhou Qiongfeng also secured customer credit transactions through China Merchants Securities Co., Ltd.

The securities account holds 1,925,000 shares, and the actual total holdings are 1,926,000 shares.

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

□Applicable Not applicable

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

□Applicable Not applicable

Whether the company has differential voting rights arrangements

□Applicable Not applicable

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

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

Legal representative/

Name of controlling shareholder Date of establishment Organization code Main business

Unit person in charge

General projects: health consulting services (excluding diagnosis and treatment services); engaging in investment activities with own funds; asset management services for own fund investment; corporate management consulting;

Non-residential real estate leasing; housing leasing Baheal Pharmaceutical Group Co., Ltd. public leasing; leasing services (excluding licensed leasing)

Fu Gang May 10, 2011 91370200572086217X

leasing services); sales of artificial intelligence hardware; retail sales of computer software, hardware and auxiliary equipment; sales of information security equipment; sales of intelligent instruments; sales of digital video surveillance systems; sales of knitted textiles; electronics

Sales of sub-products; sales of calculator equipment

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

sales; sales of pharmaceutical special equipment; sales of drug testing equipment. (Except for projects that require approval according to law, a business license must be obtained in accordance with the law.

Independently carry out business activities) Controlling shareholder’s internal control during the reporting period

shares and other domestic holdings

None

Equity information of externally listed companies

situation

Changes in controlling shareholders during the reporting period

□Applicable Not applicable

The company's controlling shareholder did not change during the reporting period.

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

Family or regional residence Fu Gang Personal China No Baiyang Pharmaceutical Group Co., Ltd. Acting in concert (including agreement, relatives, and common control) China No Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd. Acting in concert (including agreement, relatives, and common control) China No Tianjin Huitong Asset Management Partnership (Limited Partnership) Acting in concert (including agreement, relatives, and common control) China No Tianjin Haohui Asset Management Partnership (limited partnership) Acting in concert (including agreement, relatives, and common control) China No No Tianjin Huizhong Asset Management Partnership (limited partnership) Acting in concert (including agreement, relatives, common control) China No Tianjin Huitong Asset Management Partnership (limited partnership) Acting in concert (including agreement, relatives, common control) China No Main occupation and position Mr. Fu Gang serves as the chairman and general manager of the company.

Information on domestic and overseas listed companies that have been controlled in the past 10 years. Except for the company, the actual controller does not control other listed companies at home and abroad.

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

Full text of the 2025 Annual Report of Qingdao Baiyang Pharmaceutical Co., Ltd. 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

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 Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Section 7 Bond-related situations

Applicable □Not applicable

1. Corporate bonds

□Applicable Not applicable

The company did not have corporate bonds during the reporting period.

2. Corporate bonds

□Applicable Not applicable

The company did not have corporate bonds during the reporting period.

3. Non-financial corporate debt financing tools

□Applicable Not applicable

During the reporting period, the company had no non-financial corporate debt financing instruments.

4. Convertible corporate bonds

Applicable □Not applicable

Issuance of convertible bonds

Convertible bond guarantors and top ten holders during the reporting period

Name of convertible corporate bonds Qingdao Baiyang Pharmaceutical Co., Ltd. convertible corporate bonds

Number of convertible bond holders at the end of the period 3,423 Guarantors of the company’s convertible bonds None

Guarantor’s profitability, asset status and credit standing

Not applicable

major changes in circumstances

The top ten convertible bond holders are as follows:

Convertible bonds held Convertible held at the end of the reporting period Convertible held at the end of the reporting period Reporting period holding serial number Name of the convertible bond holder

Nature of person Number of convertible bonds (pieces) Debt amount (yuan) Proportion of convertible bonds

China Merchants Bank Co., Ltd.-Boshizhong

1 Convertible bonds and exchangeable bonds trading type opening Others 573,595 57,359,500.00 6.78% Open-ended index securities investment fund

Industrial and Commercial Bank of China Co., Ltd.-China

2 Others 492,338 49,233,800.00 5.82%

European Convertible Bond Securities Investment Fund

3 Agricultural Bank of China Co., Ltd. - China Others 464,705 46,470,500.00 5.49%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Postal Bond Hengli Bond Securities Investment Fund

Ping An Bank Co., Ltd.-Xili

4 Others 353,020 35,302,000.00 4.17% Huixiang Bond Securities Investment Fund

China Life Pension Anxiang Xinqi Hybrid Pension

5 Products - Industrial and Commercial Bank of China Co., Ltd. Others 290,799 29,079,900.00 3.44%

China Merchants Bank Co., Ltd.-Huabaoke

6 Others 267,200 26,720,000.00 3.16% Convertible Bond Securities Investment Fund

Northwest Investment Management (Hong Kong) Co., Ltd.

7 Overseas legal person 228,931 22,893,100.00 2.71% - Northwest Feilong Fund Co., Ltd.

Agricultural Bank of China Co., Ltd.-China

8 Others 220,000 22,000,000.00 2.60% Post Ruixin Enhanced Bond Securities Investment Fund

Industrial and Commercial Bank of China Limited - Rich

9 Guoxingli enhances bond-type sponsored securities investment Others 203,084 20,308,400.00 2.40%

capital fund

10 China Galaxy Securities Co., Ltd. State-owned legal person 199,110 19,911,000.00 2.35%

Changes in convertible bonds during the reporting period

Applicable □Not applicable

Unit: Yuan

This change increases or decreases

Name of convertible corporate bonds Before this change After this change

Share conversion, redemption, sale back

Qingdao Baiyang Pharmaceutical Co., Ltd.

846,044,200.00 121,100.00 0.00 0.00 845,923,100.00 Convertible corporate bonds

Accumulated share transfers

Applicable □Not applicable

Number of shares transferred

Accounting for shares converted into shares Unconverted shares can be converted into public shares Cumulative shares converted Cumulative shares converted

Starting and Ending of Conversion Total issuance amount Total issuance amount Number of shares that have not yet been converted to shares of the issuing company’s bonds before the start date

Date (pieces) Amount (yuan) The company has issued Amount (yuan) Total amount (yuan) (shares)

Total shares ratio

proportion of

Qingdao Baiyang

10, 2023

Pharmaceutical shares

March 20th - 860,000,0 14,076,90 845,923,1

Ltd. 8,600,000 524,077 0.10% 98.36%

2029 4 00.00 0.00 00.00

convertible

March 13

corporate bonds

Previous adjustments and revisions to the stock conversion price

Adjusted conversion price of convertible corporate bonds as of the end of this reporting period Conversion price adjustment statement

Conversion price adjustment date Disclosure time Latest conversion price name (yuan) Ming

(Yuan) Adjusted based on the conversion price

the relevant terms and

Qingdao Baiyang Pharmaceutical Stock May 25, 2023 May 18, 2023 regulations, combined with 2022

26.88

Co., Ltd. can be converted into shares on 25.36, the annual equity distribution is converted into corporate bonds.

price

May 29, 2024 26.12 May 21, 2024 Adjusted based on the conversion price

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Day Day day related terms and conditions

Regulations, Binding 2023

Annual equity distribution actual

Implementation situation adjustment for share transfer

price

Adjusted based on conversion price

the relevant terms and

May 27, 2025 May 19, 2025 regulations, combined with 2024

25.36

Day Day Annual equity distribution actual

Implementation situation adjustment for share transfer

price

The company’s liabilities, credit changes at the end of the reporting period, and cash arrangements for debt repayment in the coming years.

(1) The company's liabilities: For details, please see "8. The company's main accounting data and financial indicators in the past two years as of the end of the reporting period" in this section.

(2) The company's credit status: On June 24, 2025, CSI Pengyuan Credit Rating Co., Ltd. issued the "2025 Tracking Rating Report on Related Bonds of Qingdao Baiyang Pharmaceutical Co., Ltd.". The tracking rating results are: the company's main credit rating is maintained at AA-, the rating outlook is maintained at stable, and the credit rating of "Bayang Convertible Bonds" is maintained at AA-.

(3) The company's operating conditions are stable, its cash flow is good, and it has made reasonable cash arrangements for debt repayment in the coming years.

5. The loss in the consolidated statement scope during the reporting period exceeds 10% of the net assets at the end of the previous year

□Applicable Not applicable

6. Overdue interest-bearing debts other than bonds at the end of the reporting period

□Applicable Not applicable

7. Whether there were any violations of rules and regulations during the reporting period

□Yes No

8. The company’s main accounting data and financial indicators in the past two years as of the end of the reporting period

Unit: 10,000 yuan

Items End of the reporting period End of the previous year Increase or decrease in current ratio at the end of the reporting period compared with the end of the previous year 1.440 1.570 -8.28% Asset-liability ratio 66.20% 63.38% 2.82% Quick ratio 1.12 1.19 -5.88%

This reporting period Same period last year This reporting period increased or decreased net profit after deducting non-recurring gains and losses compared with the same period last year 39,626.83 65,594.71 -39.59% EBITDA total debt ratio 17.81% 25.27% -7.46% Interest coverage ratio 7.97 13.07 -39.02% Cash interest coverage ratio 9.02 10.16 -11.22% EBITDA interest coverage ratio 9.23 14.22 -35.09%Loan repayment rate 100.00% 100.00% 0.00%Interest repayment rate 100.00% 100.00% 0.00%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Section 8 Financial Report

1. Audit report

Type of audit opinion Standard unqualified opinion

Audit report signing date April 27, 2026

Name of the auditing institution: Lixin Accounting Firm (Special General Partnership)

Audit report number: Xinheshibaozi [2026] No. ZG11496

Name of CPA Wang Na, Wang Yi

Audit report text

All shareholders of Qingdao Baiyang Pharmaceutical Co., Ltd.:

1. Audit opinions

We have audited the financial statements of Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as Baiyang Pharmaceutical), including the consolidated and parent company balance sheets on December 31, 2025, the consolidated and parent company income statements, the consolidated and parent company cash flow statements, the consolidated and parent company owner's equity changes statements, and relevant financial statement notes for 2025.

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 Baheal Pharmaceuticals 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 "Independence Standards for Chinese Certified Public Accountants No. 1 - Requirements for Independence in Financial Statement Auditing and Review Engagements" and the Chinese Code of Professional Ethics for Certified Public Accountants, we are independent from Baheal Pharmaceuticals and have fulfilled other responsibilities in terms of professional ethics. In our audit, we followed the independence requirements for audits of public interest entities. 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.

A summary of the key audit matters identified in our audit are as follows:

Key audit matter How the matter was addressed in the audit

(1) Bad debt provision for accounts receivable

During the audit process, we performed the following work on the provision for bad debts of accounts receivable: ① Understand and comparatively analyze the accounting policies, major accounting judgments and estimates of accounts receivable, and related financial statements of the company and listed companies in the same industry.

Whether policies and bad debt provision rates are comparable;

For financial statement disclosures, please refer to the notes to the consolidated statements “III. Important Accounting Policies and

② Understand and test the design and operation of internal controls related to bad debt provisions for accounts receivable and the accounting policies described in "Accounting Estimates (10)" and "V. Consolidated Financial Statements"

effectiveness;

Table item notes (4)”.

③ Evaluate the management’s method of dividing accounts receivable into several combinations for impairment assessment. On December 31, 2025, the book balance of Baheal Pharmaceutical’s accounts receivable was

and appropriateness of calculations;

1,514.3549 million yuan, and the bad debt provision amount was 58.452 million yuan.

④ Obtain the bad debt provision accrual table for accounts receivable prepared by the management and check that the nominal value of the accrual method is higher.

Whether it is implemented in accordance with the bad debt policy and whether the amount of bad debt provision is recalculated is accurate. Is the company's account receivable equivalent to the expected credit loss during the entire duration?

correct;

The amount of the loss reserve is measured.

⑤ By checking the customer’s repayment situation after the period and referring to the customer’s historical credit losses, the management of Kebaiyang Pharmaceutical based on the previous years’ similar credit risk characteristics.

Based on the operating conditions and performance of the accounts, combined with industry trends and market development considerations, and based on the actual loss rate and aging analysis of the collected accounts receivable portfolio, the results are

Evaluate the reasonableness of management’s expected credit losses;

reasonable and well-founded predictions of current conditions and future economic conditions.

⑥ Discuss with the management and evaluate information on receivables and contracts with signs of default or impairment to determine the bad debt provisions that should be accrued. The above involves management’s application of important

assets. Examine relevant supporting evidence, including but not limited to accounting estimates and judgments when evaluating the customer's creditworthiness. Therefore, we treat bad debt provisions for accounts receivable as

History, operating conditions and repayment ability, etc., to determine the key audit matters for impairment provisions set by the group management.

rationality;

⑦ Review the adequacy of management’s disclosure of bad debt provisions for receivables.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(2) Recognition of income

We performed the following procedures on operating income during the audit:

① Understand changes in industry policies and environment, and evaluate whether the changes in Baheal Pharmaceutical’s income are reasonable;

② Understand and test the design and operating effectiveness of key internal controls related to revenue recognition;

③ Obtain the agreement signed between the company and the customer, select some contracts and communicate with the management about the accounting policies for revenue recognition and revenue analysis. Please refer to the consolidated financials.

Conduct interviews with executives to obtain information on delivery and acceptance, payment and settlement, exchange and return policies, notes to the service statements "III. Important Accounting Policies and Accounting Estimates (27)"

service provision, etc.; conduct a "five-step" analysis of the contract to determine the accounting policies for performance obligations" and "V. Notes to Consolidated Financial Statement Items (40

The timing of the transfer of Chenghe control rights, and then assess whether the company's revenue recognition policy complies with 2)."

Requirements of business accounting standards;

The operating income in 2025 will be 7,506,514,900 yuan.

④ Sampling sales contracts, delivery records, receipt documents, and sales contracts signed with customers. Baiyang Pharmaceutical’s revenue mainly comes from the sales and promotion of brand products.

Invoices, payment receipts and other information to check the authenticity of the confirmed income;

Pharmaceutical wholesale and distribution business and pharmaceutical and health product retail business. Business

⑤ Conduct interviews with customers who meet the sampling criteria; understand, including but not limited to, revenue as one of the key performance indicators of Baheal Pharmaceuticals, which involves factors related to revenue

The following information: customer operations, execution of contracts between both parties, and terminal sales are included in the wrong accounting period, resulting in inherent risks. Therefore, we include

etc., in order to confirm whether there are goods stored with customers but the products are still controlled by Baheal Pharmaceuticals, whether the revenue is included in the appropriate accounting period and whether there are any material misstatements as relevant factors.

control situation;

Pay attention to key audit matters.

⑥ Obtain the records of returns and exchanges in the company's supply chain system and check to confirm whether there are any major abnormal returns and exchanges that affect revenue recognition;

⑦In response to possible inter-temporal risks, we have implemented targeted audit procedures, including but not limited to: for the revenue recognized before and after the balance sheet date, we select major samples to check the relevant time points from the issuance of the goods to the customer's receipt of the documents to evaluate whether the revenue is recognized in the appropriate period and whether there are inter-temporal problems.

4. Other information

The management of Baheal Pharmaceutical (hereinafter referred to as the management) is responsible for other information. Other information includes information covered in Baheal Pharmaceutical's 2025 annual report, but does not include 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 materially inconsistent with the financial statements or our knowledge obtained during the audit or otherwise appears to be materially misstated.

If we determine, based on the work we have performed, that other information is materially misstated, we should report that fact. We have nothing to report in this regard.

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, implement and maintain necessary internal controls so that the financial statements are free of material misstatements due to fraud or errors.

When preparing financial statements, management is responsible for assessing Baheal Pharmaceutical's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption unless it plans to liquidate, terminate operations, or has no other realistic option.

Those charged with governance are responsible for overseeing Baheal Pharmaceutical's 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 the management and the reasonableness of the accounting estimates and related disclosures made.

(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 are significant uncertainties in matters or conditions that may cause significant doubts about Baheal Pharmaceutical's ability to continue operating. If we conclude that a material uncertainty exists, the audit

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

We are required to draw the attention of statement users to the relevant disclosures in the financial statements in the 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 Baheal Pharmaceutical to cease to continue as a going concern.

(5) Evaluate the overall presentation (including disclosure), 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 on the financial information of entities or business activities of Baiyang Pharmaceutical to express an audit opinion on the consolidated 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 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.

Lixin Accounting Firm (Special General Partnership) Chinese Certified Public Accountant (Project Partner): Wang Na

Chinese Certified Public Accountant: Wang Yi

2. Financial statements

The unit of statements in the financial notes is: Yuan

Consolidated balance sheet

Prepared by: Qingdao Baiyang Pharmaceutical Co., Ltd.

December 31, 2025

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 2,137,445,834.12 1,467,403,220.46 Settlement reserves

Loan funds

Trading financial assets 264,459,992.60 44,989,893.93 Derivative financial assets

Notes receivable 99,770,775.98 115,977,020.31 Accounts receivable 1,455,902,894.07 1,884,537,311.49 Accounts receivable financing 404,172,992.32 215,387,955.19 Prepayments 214,373,061.20 211,416,570.55 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 76,441,016.74 161,577,496.67 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 895,574,500.05 927,753,115.69

Among them: data resources

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 169,571,904.23 81,932,896.21 Total current assets 5,717,712,971.31 5,110,975,480.50 Non-current assets:

Grant loans and advances

debt investment

Other debt investments

long-term receivables

Long-term equity investment 887,039,463.33 727,624,417.04 Other equity instrument investments

Other non-current financial assets 14,736,794.88 15,000,000.00 Investment real estate 1,229,196.82 1,327,708.18 Fixed assets 685,215,804.55 535,910,126.42 Construction in progress 67,687,971.12 152,262,124.97 Productive biological assets

oil and gas assets

Right-of-use assets 132,564,750.89 122,481,520.03 Intangible assets 227,522,027.63 227,589,941.50

Among them: data resources

development expenditure

Among them: data resources

Goodwill 112,486,286.52 112,486,286.52 Long-term deferred expenses 76,704,853.77 40,728,872.05 Deferred income tax assets 86,781,496.79 58,098,495.88 Other non-current assets 102,568,367.93 8,099,278.04 Total non-current assets 2,394,537,014.23 2,001,608,770.63 Total assets 8,112,249,985.54 7,112,584,251.13 Current liabilities:

Short-term borrowings 1,932,284,973.10 1,098,574,415.39 Borrowings from the central bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable 457,358,356.87 397,938,509.16 Accounts payable 761,244,213.43 764,569,585.29 Advance payments

Contract liabilities 146,649,374.06 118,522,639.79 Financial assets sold and repurchased

Taking deposits and placing deposits with other banks

Agent for buying and selling securities

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Agent underwriting securities funds

Employee benefits payable 116,168,328.61 108,749,922.84 Taxes payable 95,510,546.82 108,476,627.99 Other payables 351,199,191.59 560,404,147.45 Including: interest payable

Dividends payable

Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 84,947,524.20 71,279,847.56 Other current liabilities 32,065,599.28 29,447,918.17 Total current liabilities 3,977,428,107.96 3,257,963,613.64 Non-current liabilities:

insurance contract reserves

Long-term borrowings 472,031,491.84 357,772,882.84 Bonds payable 781,087,353.29 754,790,886.78 Including: preference shares

perpetual bond

Lease liabilities 109,603,959.02 102,562,856.59 Long-term payables

Long-term employee benefits payable

Estimated liabilities 5,000,000.00 Deferred income 12,905,917.24 11,434,936.36 Deferred income tax liabilities 17,344,785.23 18,387,469.29 Other non-current liabilities

Total non-current liabilities 1,392,973,506.62 1,249,949,031.86 Total liabilities 5,370,401,614.58 4,507,912,645.50 Owners’ equity:

Share capital 525,624,077.00 525,619,310.00 Other equity instruments 99,738,278.07 99,752,556.35 Including: preference shares

perpetual bond

Capital reserve 16,309,428.28 -2,523,778.82 minus: treasury shares

Other comprehensive income -3,072,142.96 1,678,152.03Special reserves

Surplus reserve 235,687,401.28 202,078,158.26 General risk reserve

Undistributed profits 1,588,859,913.17 1,548,306,006.77 Total owners’ equity attributable to the parent company 2,463,146,954.84 2,374,910,404.59 Minority shareholders’ equity 278,701,416.12 229,761,201.04 Total owners’ equity 2,741,848,370.96 2,604,671,605.63 Total liabilities and owners’ equity 8,112,249,985.54 7,112,584,251.13 Legal representative: Fu Gang Person in charge of accounting work: Li Zhen Person in charge of accounting department: Liu Feng

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Balance sheet of the parent company

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 980,610,189.62 608,850,560.58 Trading financial assets

Derivative financial assets

Notes receivable 77,248,981.73 95,018,630.81 Accounts receivable 787,444,857.10 1,048,214,140.38 Receivables financing 291,211,739.05 129,210,721.64 Advance payments 81,285,684.43 109,820,051.41 Other receivables 680,456,407.20 625,961,300.70 Including: interest receivable

Dividends receivable 150,000,000.00

Inventory 329,130,185.42 453,000,265.35

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 133,101,064.67 63,934,862.33 Total current assets 3,360,489,109.22 3,134,010,533.20 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 1,701,909,199.31 1,611,454,320.98 Other equity instrument investments

Other non-current financial assets 14,736,794.88 15,000,000.00 Investment real estate 1,229,196.82 1,327,708.18 Fixed assets 176,063,898.58 175,665,867.71 Construction in progress 10,346,415.50 Productive biological assets

oil and gas assets

Right-of-use assets 15,435,463.06 12,420,859.08 Intangible assets 149,490,436.64 142,194,754.77

Among them: data resources

development expenditure

Among them: data resources

goodwill

Long-term deferred expenses 21,788,990.81

Deferred income tax assets 27,162,118.90

Other non-current assets

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Total non-current assets 2,107,816,099.00 1,968,409,926.22 Total assets 5,468,305,208.22 5,102,420,459.42 Current liabilities:

Short-term borrowings 1,617,350,100.72 888,952,469.35 Trading financial liabilities

Derivative financial liabilities

Notes payable 313,712,722.00 335,116,328.64 Accounts payable 363,764,724.78 431,443,073.74 Advance payments

Contract liabilities 109,968,797.91 97,887,814.08 Employee benefits payable 46,137,843.55 46,510,304.47 Taxes payable 16,597,629.59 20,433,283.95 Other payables 229,910,266.91 610,529,104.63 including: interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due within one year 34,963,983.31 17,979,643.56 Other current liabilities 17,302,156.90 22,641,773.70 Total current liabilities 2,749,708,225.67 2,471,493,796.12 Non-current liabilities:

Long-term borrowings 392,400,000.00 254,000,000.00 Bonds payable 781,087,353.29 754,790,886.78 Including: preference shares

perpetual bond

Lease liabilities 8,666,521.94 9,561,971.84 Long-term payables

Long-term employee benefits payable

Estimated liabilities

deferred income

Deferred income tax liabilities 12,353,321.77 Other non-current liabilities

Total non-current liabilities 1,182,153,875.23 1,030,706,180.39 Total liabilities 3,931,862,100.90 3,502,199,976.51 Owners’ equity:

Share capital 525,624,077.00 525,619,310.00 Other equity instruments 99,738,278.07 99,752,556.35 Including: preference shares

perpetual bond

Capital reserve 271,748,142.97 271,851,675.05 Less: treasury shares

Other comprehensive income -765,113.72 special reserves

Surplus reserve 245,751,742.27 212,142,499.25 Undistributed profits 393,580,867.01 491,619,555.98 Total owners’ equity 1,536,443,107.32 1,600,220,482.91

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Total liabilities and owners’ equity 5,468,305,208.22 5,102,420,459.42

Consolidated income statement

Unit: Yuan

Project 2025 2024

Total operating income 7,506,514,889.15 8,094,458,068.74 Including: operating income 7,506,514,889.15 8,094,458,068.74 Interest income

Premiums earned

Fee and commission income

Total operating costs 6,840,247,859.66 7,169,337,235.28 Including: operating costs 4,693,728,991.01 5,220,659,643.58 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 50,141,455.85 43,955,505.47 Sales expenses 1,620,418,676.53 1,516,920,293.54 Management expenses 326,162,412.46 280,553,399.49 Research and development expenses 42,165,204.43 36,139,782.22Financial expenses 107,631,119.38 71,108,610.98 Including: interest expenses 103,652,681.68 80,092,315.85

Interest income 11,083,732.26 13,635,219.99 plus: other income 31,252,852.64 18,617,808.51 Investment income (losses are filled in with "-"

19,597,404.65 59,209,403.06 columns)

Of which: for associates and joint ventures

7,192,925.95 51,120,996.54 Enterprise 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

73,356,424.42 1,715,871.08 (Fill in “-”)

Credit impairment losses (losses are marked with "-"

-7,620,777.00 -11,827,892.28 fill in the column)

Asset impairment losses (losses are marked with "-"

-47,107,035.82 -16,023,077.40 fill in the column)

Asset disposal income (losses are marked with "-" 520,328.84 925,017.58

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Fill in the column)

3. Operating profit (loss is filled in with "-"

736,266,227.22 977,737,964.01 columns)

Add: non-operating income 4,825,766.09 2,432,118.77

Less: Non-operating expenses 18,116,968.69 13,542,466.00

4. Total profit (total loss is marked with "-"

722,975,024.62 966,627,616.78 fill in the column)

Less: Income tax expenses 151,045,751.75 199,596,972.39

5. Net profit (net loss is filled in with "-"

571,929,272.87 767,030,644.39 columns)

(1) Classification by business continuity

Net profit from continuing operations (net loss divided by

571,929,272.87 767,030,644.39 (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 474,685,025.56 691,593,321.92
Profit and loss of minority shareholders 97,244,247.31 75,437,322.47
Net after-tax other comprehensive income -5,215,824.27 -104,993.07 Other comprehensive income attributable to owners of the parent company

-4,750,294.99 -178,040.99 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

-4,750,294.99 -178,040.99 combined income

Other comprehensive items that can be transferred to profits and losses under the equity method

-4,895,230.11 13,901.82 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 -684,422.63 122,528.85
Others 829,357.75 -314,471.66 Other comprehensive income attributable to minority shareholders

-465,529.28 73,047.92 Net after tax

Total comprehensive income 566,713,448.60 766,925,651.32 Total comprehensive income attributable to owners of the parent company

469,934,730.57 691,415,280.93 amount

Total comprehensive income attributable to minority shareholders 96,778,718.03 75,510,370.39

8. Earnings per share:

(1) Basic earnings per share 0.9 1.32

(2) Diluted earnings per share 0.89 1.28 If a business merger under the same control occurs in this period, the net profit realized by the merged party before the merger is: 0.00 yuan, and the net profit realized by the merged party in the previous period is: 0.00 yuan. Legal representative: Fu Gang Person in charge of accounting work: Li Zhen Person in charge of accounting department: Liu Feng

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Income statement of the parent company

Unit: yuan project 2025 2024

Operating income 3,736,797,838.26 4,721,990,636.94 Less: Operating costs 3,026,780,802.35 3,550,184,499.33 Taxes and surcharges 27,992,131.05 21,987,180.92 Sales expenses 592,954,144.52 973,290,683.38 Management expenses 144,529,627.98 94,423,270.03 Research and development expenses

Financial expenses 72,167,540.99 45,889,118.82 Including: interest expenses 88,817,569.80 64,832,137.37 Interest income 17,234,799.28 20,457,968.95 Plus: other income 455,701.66 334,612.94 investment income (losses are filled in with "-"

473,243,817.00 398,246,706.97 columns)

Of which: for associates and joint ventures

990,833.11 7,182,644.18 Investment income from the industry

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

-263,205.12

Fill in the column with "-" sign)

Credit impairment losses (losses are marked with "-"

265,470.46 1,455,005.26 (please fill in the column)

Asset impairment losses (losses are marked with "-"

-40,281,039.69 -9,501,694.94 fill in the column)

Asset disposal income (losses are marked with "-"

24,284.85 -2,151.18 fill in the column)

2. Operating profit (loss is filled in with "-"

305,818,620.53 426,748,363.51 columns)

Add: Non-operating income 1,571,752.94 1,150,596.42 Less: Non-operating expenses 8,100,475.73 4,571,478.47

3. Total profit (total loss is marked with “-”

299,289,897.74 423,327,481.46 fill in the column)

Less: Income tax expense -36,802,532.45 7,535,364.95

4. Net profit (net loss is filled in with "-"

336,092,430.19 415,792,116.51 columns)

(1) Net profit from continuing operations (net loss divided by

336,092,430.19 415,792,116.51 (Fill in “-”)

(2) Net profit from discontinued operations (net loss equal to

Fill in the column with "-" sign)

Net after-tax amount of other comprehensive income 765,113.72 -318,862.32

(1) Others that cannot be reclassified into profit or loss

Comprehensive income

Remeasure changes in defined benefit plans

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other comprehensive income that cannot be transferred to profit or loss under the equity method
Changes in fair value of other equity instrument investments
Changes in the fair value of the company’s own credit risk

5.Others

(2) Other comprehensive items that will be reclassified into profit or loss

765,113.72 -318,862.32 combined income

Other comprehensive income that can be converted to profit or loss under the equity method
Changes in fair value of other debt investments
The amount of financial assets reclassified and included in other comprehensive income
Credit impairment provisions for other debt investments 5. Cash flow hedging reserves
Translation differences of foreign currency financial statements
Others 765,113.72 -318,862.32
Total comprehensive income 336,857,543.91 415,473,254.19

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 providing services 8,301,581,715.21 8,697,122,792.15 Net increase in customer deposits and deposits from banks Net increase in borrowings from the central bank

Net increase in funds borrowed from other financial institutions Net cash received from premiums received from original insurance contracts Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Net increase in cash borrowing funds collected from interest, handling fees and commissions

Net increase in repurchase business funds

Net cash received from buying and selling securities on behalf of agents

Tax refunds received 15,199.93 Other cash received related to operating activities 138,096,365.70 67,012,976.60 Subtotal of cash inflows from operating activities 8,439,678,080.91 8,764,150,968.68 Cash paid for purchasing goods and receiving services 4,745,735,338.44 5,406,665,968.67 Net increase in customer loans and advances

Net increase in deposits with the central bank and inter-bank funds Net increase in cash placement funds to pay compensation for original insurance contracts

Cash payments for interest, fees and commissions Cash payments for policy dividends

Cash paid to and for employees 707,241,369.10 669,705,715.34 Various taxes and fees paid 641,347,842.61 632,988,222.72

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other cash payments related to operating activities 1,410,899,925.90 1,240,940,657.06 Subtotal cash outflow from operating activities 7,505,224,476.05 7,950,300,563.79 Net cash flow generated from operating activities 934,453,604.86 813,850,404.89

2. Cash flow generated from investing activities:

Cash received from recovery of investment 340,000,000.00 385,763,665.81 Cash received from investment income 7,701,860.30 7,676,310.04 Disposal of fixed assets, intangible assets and other long-term assets

402,699.40 789,550.00 Net cash amount recovered from assets in period 789,550.00

Received from disposal of subsidiaries and other business units

4,431,256.60 net cash

Other cash received related to investing activities

Subtotal of cash inflows from investing activities 348,104,559.70 398,660,782.45 Purchase and construction of fixed assets, intangible assets and other long-term assets

288,930,824.87 303,988,622.66 Cash paid for assets

Cash paid for investment 647,979,490.24 823,596,361.32 Net increase in pledged loans

Obtain payment from subsidiaries and other business units

3,394,522.38 net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 936,910,315.11 1,130,979,506.36 Net cash flow generated from investing activities -588,805,755.41 -732,318,723.91

3. Cash flow generated from financing activities:

Cash received from investment 980,000.00 980,000.00 Including: subsidiaries receive investment from minority shareholders

980,000.00 980,000.00 cash received

Cash received from borrowings 2,287,551,589.53 1,971,450,088.93 Cash received from other financing activities 199,285,074.98 227,363,162.02 Subtotal of cash inflows from financing activities 2,487,816,664.51 2,199,793,250.95 Cash paid to repay debts 1,260,341,663.76 918,161,858.87

Distribution of dividends, profits or repayment of interest payments

502,768,596.16 465,579,088.96 cash

Including: shares paid by subsidiaries to minority shareholders

35,197,963.65 15,716,833.52 Profit and profit

Cash payments related to other financing activities 359,227,598.78 811,386,636.15 Subtotal cash outflows from financing activities 2,122,337,858.70 2,195,127,583.98 Net cash flow generated from financing activities 365,478,805.81 4,665,666.97

4. The impact of exchange rate changes on cash and cash equivalents

-9,730,307.46 2,205,432.12 impact

Net increase in cash and cash equivalents 701,396,347.80 88,402,780.07 Plus: opening balance of cash and cash equivalents 1,222,546,194.05 1,134,143,413.98
Balance of cash and cash equivalents at the end of the period 1,923,942,541.85 1,222,546,194.05
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 3,969,902,886.82 5,056,105,271.46 Tax refunds received

Other cash received related to operating activities 77,629,994.83 31,936,489.08 Subtotal of cash inflows from operating activities 4,047,532,881.65 5,088,041,760.54 Cash paid for purchasing goods and receiving services 3,069,520,922.86 3,853,818,505.39 Cash paid to and for employees 302,781,244.18 299,843,746.58 Various taxes paid 242,241,486.37 276,858,701.21 Other cash paid related to operating activities 660,843,042.41 791,630,376.11

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Subtotal of cash outflows from operating activities 4,275,386,695.82 5,222,151,329.29 Net cash flow from operating activities -227,853,814.17 -134,109,568.75

2. Cash flow generated from investing activities:

Cash received from recovery of investment 100,000,000.00 4,805,442.44 Cash received from investment income 305,895,838.29 401,160,408.30 Disposal of fixed assets, intangible assets and other long-term assets

10,474.40 9,349.38 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 405,906,312.69 405,975,200.12 Purchase and construction of fixed assets, intangible assets and other long-term assets

44,043,400.23 24,599,833.74 Cash paid for assets

Cash paid for investment 466,560,455.37 835,691,337.00

Obtain payment from subsidiaries and other business units

net cash

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 510,603,855.60 860,291,170.74 Net cash flow generated from investing activities -104,697,542.91 -454,315,970.62

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowing 2,064,787,382.05 1,749,565,434.47

Other cash received related to financing activities 474,234,232.82 352,767,910.13 Subtotal of cash inflows from financing activities 2,539,021,614.87 2,102,333,344.60 Cash paid to repay debts 933,292,289.27 487,043,946.78 Distribution of dividends, profits or payment of interest

458,144,579.17 434,050,336.21 Cash

Cash payments related to other financing activities 388,549,447.27 616,295,239.93 Subtotal cash outflows from financing activities 1,779,986,315.71 1,537,389,522.92 Net cash flow generated from financing activities 759,035,299.16 564,943,821.68

4. The impact of exchange rate changes on cash and cash equivalents

-1,040.70

influence

Net increase in cash and cash equivalents 426,482,901.38 -23,481,717.69

Add: Balance of cash and cash equivalents at the beginning of the period 441,292,396.26 464,774,113.95

Balance of cash and cash equivalents at the end of the period 867,775,297.64 441,292,396.26
Consolidated statement of changes in owners’ equity

Amount of current period

Unit: Yuan

2025

Owner's equity attributable to parent company

all

minority

Item Other equity instruments Less: Other general undivided shareholder capital special surplus shareholders

Equity, preferred shares, permanent debts, other reserves, stock deposits, comprehensive collection

benefit

Reserves, public reserves, risk quasi-risks

Prepare

Distribution Profit Other Subtotal Equity Profit Total

525, 99,7 - 202, 1,54 2,37 229, 2,60

1,67

Previous year 619, 52,5 2,52 078, 8,30 4,91 761, 4,67

0.00 0.00 0.00 8,15 0.00 0.00 0.00

End of period 310. 56.3 3,77 158. 6,00 0,40 201. 1,60

2.03

Balance 00 5 8.82 26 6.77 4.59 04 5.63

add

: Yes

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Planning and Administration

policy change

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Update

before

period difference

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Wrong update

Right

its

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

525, 99,7 - 202, 1,54 2,37 229, 2,60

1,67

Current year 619, 52,5 2,52 078, 8,30 4,91 761, 4,67

0.00 0.00 0.00 8,15 0.00 0.00 0.00

Beginning of the period 310. 56.3 3,77 158. 6,00 0,40 201. 1,60

2.03

Balance 00 5 8.82 26 6.77 4.59 04 5.63

3.

This issue

increase or decrease

change

18,8 - 33,6 40,5 88,2 48,9 137,Amount

4,76 14,2 33,2 4,75 09,2 53,9 36,5 40,2 176, (minus 0.00 0.00 0.00 0.00 0.00 0.00

7.00 78.2 07.1 0,29 43.0 06.4 50.2 15.0 765. less than

8 0 4.99 2 0 5 8 33 “－

"No.

fill in

column)

474, 469, 96,7 566,) comprehensive

4,75 685, 934, 78,7 713, combined 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0,29 025. 730. 18.0 448. Yi Zong

4.99 56 57 3 60 amount

(two

) -

18,8 18,8

Those with 12,1 6,62

4,76 14,2 33,2 23,6

Input 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 99,1 4,58

7.00 78.2 07.1 95.8

Sum minus 08.5 7.28

8 0 2

Less capital 4

Ben

1．

all

980, 980, Zhevo

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000. 000. In

00 00Normal

Others

Equity -

122, 113, 113,Tools 4,76 14,2

0.00 0.00 754. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 243. 0.00 243. Hold 7.00 78.2

55 27 27 voted 8

Investment

Ben

3．

pay

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Credited

all

rights

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

beneficial

Amount

18,7 18,7

13,1 5,53 4. 10,4 10,4

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 79,1 1,34Others 52.5 52.5

08.5 4.01 5 5

- - - (Three 33,6

434, 400, 35,6 436,) 09,2

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 131, 0.00 521, 39,3 161, profit margin 43.0

1. 94.4 270. Match 2

16 14 1 55

1． 33,6

33,6

Extract 09,2

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 09,2 0.00 0.00 0.00 0.00 Surplus 43.0

43.0

Public area 2

Extract

General 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Risk

Prepare

3．

Right

- - -Those who have

400, 400, 35,6 436, (or

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 521, 0.00 521, 39,3 161,shares

1. 94.4 270. East)

14 14 1 55 points

Match

4．

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Others

(four

) place

Those who have

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Equity

internal

carry forward

1．

capital

public area

Transfer to increase

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital

(or

this)

surplus

public area

Transfer to increase

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital

(or

this)

3． 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

surplus

public area

make up for

Loss

4．

Settings

benefit

plan

Change 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Balance

transfer

Deposit and receive

benefit

Others

Comprehensive

Proceeds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Carry forward

retain

income

6．

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Others

(five

)Specialized

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 item storage

Prepare

1．

Current issue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Withdrawal

This issue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Use

(six

) its 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00he

525, 99,7 16,3 - 235, 1,58 2,46 278, 2,74This period 624, 38,2 09,4 3,07 687, 8,85 3,14 701, 1,84

0.00 0.00 0.00 0.00 0.00 0.00

End of the period 077. 78.0 28.2 2,14 401. 9,91 6,95 416. 8,37 Balance 00 7 8 2.96 28 3.17 4.84 12 0.96 Amount of the previous period

Unit: Yuan

2024

Owner's equity attributable to parent company

all

minority

Item Other equity instruments Less: Other general undivided shareholder capital special surplus shareholders

Equity, preferred shares, permanent debts, other reserves, stock deposits, comprehensive collection

benefit

Reserves, public reserves, risk quasi-risks

Prepare

Distribution Profit Other Subtotal Equity Profit Total

525, 99,7 421, 170, 1,44 2,66 2,64

1,85 26,1

Previous year 611, 76,3 691, 563, 8,97 8,47 2,28

0.00 0.00 0.00 6,19 0.00 0.00 0.00 83,5

End of period 637. 61.2 542. 287. 2,04 1,06 7,56

3.02 01.4

Balance 00 9 81 60 5.40 7.12 5.65

Add 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

: Yes

Planning and administration

policy change

Update

before

period difference

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Wrong update

Right

231, 222, 254, 477, 1,56 10,7

its 780, 577, 587, 165,

0.00 0.00 0.00 0.00 0.00 0.00 2,90 0.00 0.00 65,8 0.00

He 567. 652. 401. 054. 8.48 22.8

10 70 41 11

525, 99,7 653, 170, 1,43 2,89 228, 3,11

1,85 1,56

This year 611, 76,3 472, 563, 8,20 1,04 403, 9,45

0.00 0.00 0.00 6,19 2,90 0.00 0.00

Beginning of the period 637. 61.2 109. 287. 6,22 8,71 899. 2,61

3.02 8.48

Balance 00 9 91 60 2.52 9.82 94 9.76

3.

This issue

increase or decrease

Changes - - -

- - 31,5 110,

Amount 655, 516, 1,35 514,

7,67 23,8 178, 1,56 14,8 099,

(minus 0.00 0.00 995, 0.00 0.00 0.00 138, 7,30 781,

3.00 04.9 040. 2,90 70.6 784.

Less to 888. 315. 1.10 014.

4 99 8.48 6 25

"-73 23 13" number

fill in

column)

691, 691, 75,5 766,) comprehensive

178, 593, 415, 10,3 925, combined 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1. 1. 70.3 651. Yi Zong

99 92 93 9 32 amount

(two

) - - - - - -

There are 655, 10,0 139, 805, 51,7 857,

7,67 23,8

Investment 0.00 0.00 995, 0.00 0.00 0.00 64,3 0.00 396, 0.00 473, 94,9 268,

3.00 04.9

Sum minus 888. 40.9 845. 207. 71.8 179. Less capital 73 9 88 54 1 35

1．

all

980, 980, Zhevo

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000. 000. In

00 00Normal

Others

Equity -

200, 184, 184, tools 7,67 23,8

0.00 0.00 380. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 248. 0.00 248. Hold 3.00 04.9

37 43 43 vote 4

Investment

Ben

3． 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

pay

credited

all

rights

beneficial

Amount

656, 10,0 139, 805, 52,7 858, 4．

0.00 0.00 0.00 0.00 196, 0.00 0.00 0.00 64,3 0.00 396, 0.00 657, 74,9 432, others

40.9 845. 455. 71.8 427. 10 9 88 97 1 78

- - - (Three 41,5

442, 400, 20,4 420,) 79,2

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 096, 0.00 517, 23,2 940, profit margin 11.6

1. 17.9 698. Match 5

79 14 4 08

1． 41,5

41,5

Extract 79,2

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 79,2 0.00 0.00 0.00 0.00 Surplus 11.6

11.6

Public area 5

Extract

General 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Risk

Prepare

3．

Right

- - -Those who have

400, 400, 20,4 420, (or

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 517, 0.00 517, 23,2 940,shares

1. 17.9 698. East)

14 14 4 08 points

Match

4．

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Others

(four

) place

Those who have

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Equity

internal

carry forward

1．

capital

public area

Transfer to increase

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital

(or

this)

surplus

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 common area

Transfer to increase

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

capital

(or

this)

3．

surplus

Reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Make up

Loss

4．

Settings

benefit

plan

Change 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Balance

transfer

Deposit and receive

benefit

Others

Comprehensive

Proceeds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Carry forward

retain

income

6．

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Others

(V - - - -) Specialized 1,56 1,56 1,93 3,49

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Xiang Chu 2,90 2,90 4,87 7,78 8.48 8.48 9.54 8.02

1． 773, 773, 828, 1,60This period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 659. 0.00 0.00 0.00 0.00 659. 750. 2,40Withdrawal 35 35 19 9.54

2,33 2,33 2,76 5,10This period 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,56 0.00 0.00 0.00 0.00 6,56 3,62 0,19Use 7.83 7.83 9.73 7.56

(six

) its 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00he

525, 99,7 - 202, 1,54 2,37 229, 2,60

1,67

Current period 619, 52,5 2,52 078, 8,30 4,91 761, 4,67

0.00 0.00 0.00 8,15 0.00 0.00 0.00

End of period 310. 56.3 3,77 158. 6,00 0,40 201. 1,60

2.03

Balance 00 5 8.82 26 6.77 4.59 04 5.63

Statement of changes in owner’s equity of the parent company

Amount of current period

Unit: Yuan

2025

Item Other equity instruments Capital Less: Others Special surplus Undivided All equity Others

Priority, sustainability, other reserves, inventory, comprehensive reserves, right to allocate dividends

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Stocks Debt Stocks Income Profit Yihe

plan

1,600

525.6 99.75 271.8 - 212.1 491.6

Last year ,220,

19,31 0.00 0.00 2,556 51,67 0.00 765,1 0.00 42,49 19,55 0.00

End of period 482.9

0.00 .35 5.05 13.72 9.25 5.98

Balance 1

add

: Yes

Planning and policy 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Policy change

Update

before

period difference

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Wrong update

Right

its

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

1,600

525.6 99.75 271.8 - 212.1 491.6

This year ,220,

19,31 0.00 0.00 2,556 51,67 0.00 765,1 0.00 42,49 19,55 0.00

Beginning of the period 482.9

0.00 .35 5.05 13.72 9.25 5.98

Balance 1

3.

This issue

increase or decrease

change

-Amount - - 33,60

4,767 765,1 98,03 63,77 (minus 0.00 0.00 14,27 103,5 0.00 0.00 9,243 0.00

.00 13.72 8,688 7,375 less than 8.28 32.08 .02

.97 .59 “-

"No.

fill in

column)

) Comprehensive 336,0 336,8

765,1

Combined 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 92,43 0.00 57,54

13.72

Yi total 0.19 3.91 amount

(two

) place

Those who have - - -

4,767

Investment 0.00 0.00 14,27 103,5 0.00 0.00 0.00 0.00 0.00 0.00 113,0

.00

Sum minus 8.28 32.08 43.36 Less capital

Ben

place

Those who have

Input 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

common stock

Other rights -

4,767 122,7 113,2Yigong 0.00 0.00 14,27 0.00 0.00 0.00 0.00 0.00 0.00

.00 71.52 60.24 Hold 8.28

Those who have

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

invest

capital

branches

pay plan

Enter the place

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Those who have

Equity

of gold

- 1. its

0.00 0.00 0.00 0.00 226,3 0.00 0.00 0.00 0.00 0.00 0.00 226,3 other

03.60 03.60 (Wed - -

33,60

) profit 434,1 400,5

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,243 0.00

Profit points 31,11 21,87

.02

With 9.16 6.14

mention -

33,60

Take profit 33,60

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,243 0.00 0.00 Yu Gong 9,243

.02

Accumulation .02

all

or - - (or 400,5 400,5

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Shares 21,87 21,87 East) 6.14 6.14 points

Match

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

(four

) place

Those who have

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Equity

internal

carry forward

capital

My Lord

Accumulated transfer

Increase capital

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Ben

(or

this)

surplus

Yu Gong

Accumulated transfer

Increase capital

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Ben

(or

this)

Profit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Yu Gong

Jimi

make up for losses

loss

Determined to accept

benefit plan

Wipe

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Moving amount

carry forward

retain

income

He comprehensive

combine

Benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 transfer

Deposit and receive

benefit

6． its

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

(five

)Specialized

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 item storage

Prepare

1． Ben

Periodic Withdrawal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Withdrawal

Periodic use 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(six

) its 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00he

1,536

525.6 99.73 271.7 245.7 393.5

This issue ,443,

24,07 0.00 0.00 8,278 48,14 0.00 0.00 0.00 51,74 80,86 0.00

End of term 107.3

7.00 .07 2.97 2.27 7.01

Balance 2

Amount of last period

Unit: Yuan

2024

Other equity instruments All

Less: Others not divided

Project Capital Special Surplus Owner's Equity Priority Perpetual Inventory Comprehensive Distribution Others

Other public reserves, reserves, equity joint ventures, bonds, shares, profits

plan

1,816

525.6 99.77 502.6 - 170.5 517.9

Last year, 071,

11,63 0.00 0.00 6,361 42,35 0.00 446,2 0.00 63,28 24,13 0.00

End of period 521.3

7.00 .29 5.59 51.40 7.60 1.26

Balance 4

add

：Will 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Planning and Administration

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

policy change

Update

before

period difference

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Wrong update

Right

its

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

1,816

525.6 99.77 502.6 - 170.5 517.9

This year ,071,

11,63 0.00 0.00 6,361 42,35 0.00 446,2 0.00 63,28 24,13 0.00

Beginning of the period 521.3

7.00 .29 5.59 51.40 7.60 1.26

Balance 4

3.

This issue

increase or decrease

change

- -Amount - - 41,57

7,673 230,7 26,30 215,8 (minus 0.00 0.00 23,80 0.00 318,8 0.00 9,211 0.00

.00 90,68 4,575 51,03 Less than 4.94 62.32 .65

0.54 .28 8.43 “-

"No.

fill in

column)

) Comprehensive - 415.7 415.4 Total income 0.00 0.00 0.00 0.00 0.00 0.00 318.8 0.00 0.00 92.11 0.00 73.25 Yi total 62.32 6.51 4.19 amount

(two

) place

-Those who have -

7,673 230,7 230,8Input 0.00 0.00 23,80 0.00 0.00 0.00 0.00 0.00 0.00

.00 90,68 06,81 and minus 4.94

0.54 2.48 Less capital

Ben

1． place

Those who have

Input 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

common stock

other rights

YiGong -

7,673 202,8 186,7 Holding 0.00 0.00 23,80 0.00 0.00 0.00 0.00 0.00 0.00

.00 61.54 29.60Those who have 4.94

invest

capital

3． shares

branches

pay plan

Entrance 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Those who have

Equity

of gold

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

- 4． Its 230,9 230,9

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Him 93,54 93,54

2.08 2.08 (Wed - -

41,57

) profit 442,0 400,5

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,211 0.00

Profit points 96,69 17,48

.65

With 1.79 0.14

1． mention -

41,57

Take profit 41,57

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,211 0.00 0.00 Yu Gong 9,211

.65

Accumulation .65

all

or - - (or 400,5 400,5

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Shares 17,48 17,48 East) 0.14 0.14 points

Match

3． its

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

(four

) place

Those who have

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Equity

internal

carry forward

1． capital

My Lord

Accumulated transfer

Increase capital

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(or

this)

surplus

Yu Gong

Accumulated transfer

Increase capital

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(or

this)

3． surplus

Yu Gong

Accumulation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Make up for the loss

loss

4． Set

Determined to accept

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Earnings

Wipe

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

moving amount

carry forward

retain

income

He comprehensive

combine

Benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 transfer

Deposit and receive

benefit

6． its

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00He

(five

)Specialized

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 item storage

Prepare

1． Ben

Periodic Withdrawal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Withdrawal

Periodic use 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(six

) its 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00he

1,600

525.6 99.75 271.8 - 212.1 491.6

This issue ,220,

19,31 0.00 0.00 2,556 51,67 0.00 765,1 0.00 42,49 19,55 0.00

End of period 482.9

0.00 .35 5.05 13.72 9.25 5.98

Balance 1

3. Basic situation of the company

Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company" or "the Company") is a joint-stock company established by 13 shareholders including Baiyang Pharmaceutical Group Co., Ltd. and approved by the shareholders' meeting in July 2016.

The company's corporate legal person business license registration number: 91370200770281005N. It will be listed on the Shenzhen Stock Exchange in June 2021. The industry it belongs to is wholesale industry. As of December 31, 2025, the company had issued a total of 525,624,077 shares. Registration address: Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province. Headquarters address: Building 1, No. 88 Tongbai Road, Shibei District, Qingdao City, Shandong Province. The company's main business activities are: drug retail; drug wholesale; third-class medical device operation; third-class medical device leasing; urban distribution and transportation services (excluding dangerous goods); second-class value-added telecommunications business; Internet information services; road cargo transportation (excluding dangerous goods). (Projects that require approval according to law can only be carried out with the approval of relevant departments. Specific business projects are subject to the approval documents or licenses of relevant departments) General projects: import and export of goods; food sales (only sales of pre-packaged food); food Internet sales (only sales of pre-packaged food) products); sales of infant formula milk powder and other infant formula foods; sales of health food (prepackaged); sales of formula foods for special medical purposes; sales of Class I medical devices; sales of Class II medical devices; retail of sporting goods and equipment; retail of cosmetics; sales of daily necessities; kitchenware Wholesale of sanitary ware and daily necessities; sales of disinfectants (excluding hazardous chemicals); sales of household appliances; repair of special equipment; leasing of second-class medical equipment; low-temperature warehousing (excluding hazardous chemicals and other items that require license approval); general cargo warehousing services (excluding hazardous chemicals and other items that require license approval) approved projects); technical services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; health consulting services (excluding diagnosis and treatment services); marketing planning; information consulting services (excluding licensing information consulting services); non-residential real estate leasing; technology import and export. (Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law). The parent company of the company is Baiyang Pharmaceutical Group Co., Ltd., and the actual controller of the company is Fu Gang.

This financial statement has been approved by the company's board of directors on April 27, 2026.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

4. Basis for preparation of financial statements

Basics of preparation

These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and various specific accounting standards, application guidelines for Accounting Standards for Business Enterprises, interpretations of Accounting Standards for Business Enterprises and other relevant regulations promulgated by the Ministry of Finance (hereinafter collectively referred to as "Accounting Standards for Business Enterprises"), as well as the relevant provisions of the China Securities Regulatory Commission's "Information Disclosure Preparation Rules No. 15 for Companies that Offer Securities to the Public - General Provisions on Financial Reports".

Continued operations

These financial statements are prepared on a going concern basis.

5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

The following disclosures cover the specific accounting policies and accounting estimates formulated by the Company based on actual production and operation characteristics. For details, please refer to "V. 11. Financial Instruments", "V. 37. Income" and "V. 41. Leasing" of this note.

Statement on compliance with corporate accounting standards

This financial statement complies with the requirements of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance, and truly and completely reflects the company's consolidated and parent company's financial status as of December 31, 2025, as well as the consolidated and parent company's operating results and cash flows in 2025.

Accounting period

A fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

Business cycle

The company's operating cycle is 12 months.

Accounting standard currency

The Company adopts RMB as the standard accounting currency. These financial statements are presented in RMB.

Determination method and selection basis of importance standards

Applicable □Not applicable

Project Materiality Criteria

The recovery or reversal of bad debt provisions for important accounts receivable. The individual recovery or reversal amount accounts for more than 10% of the total amount of various types of receivables. The actual write-off of important accounts receivable. The single write-off amount accounts for more than 10% of the total bad debt provisions for various types of receivables.

The net assets of the subsidiary account for more than 5% of the group's net assets, or the net profit of the subsidiary accounts for an important amount of the group's non-wholly-owned subsidiary.

More than 5% of the group’s net profit

Important accounts payable and other accounts payable that are aged more than one year or are overdue, with an ending balance of more than 1 million yuan

The company will invest in projects under construction that have a large budget and the current amount or balance accounts for a significant amount of fixed assets.

Projects under construction with a scale ratio exceeding 10% are deemed important

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Important Cash Flows from Investing Activities The company considers individual cash flows exceeding 5% of total assets to be important.

Accounting treatment methods for business combinations under the same control and those not under the same control

Business merger under common control: The assets and liabilities acquired by the merging party in the business merger (including the goodwill formed by the ultimate controlling party's acquisition of the merged party) are measured based on the book value of the merged party's assets and liabilities in the ultimate controlling party's consolidated financial statements on the merger date. The difference between the book value of the net assets acquired in the merger and the book value of the merger consideration paid (or the total face value of the shares issued) is adjusted to the equity premium in the capital reserve. If the equity premium in the capital reserve is insufficient to offset it, the retained earnings are adjusted.

Merger of businesses not under common control: The merger cost is the fair value of the assets paid, liabilities incurred or assumed, and equity securities issued by the acquirer on the acquisition date to obtain control of the acquiree. The difference between the merger cost and the fair value of the acquiree's identifiable net assets acquired in the merger is recognized as goodwill; the difference between the merger cost and the fair value of the acquiree's identifiable net assets acquired in the merger is included in the current profit and loss. All identifiable assets, liabilities and contingent liabilities of the acquiree acquired in the merger that meet the recognition conditions are measured at fair value on the acquisition date.

Directly related expenses incurred for a business merger are included in the current profits and losses when incurred; transaction costs for the issuance of equity securities or debt securities for a business merger are included in the initial recognition amount of equity securities or debt securities.

Judgment standards for control and preparation methods of consolidated financial statements

(1) Judgment criteria for control

The scope of consolidation of the consolidated financial statements is determined based on control, and the scope of consolidation includes the company and all subsidiaries. Control means that the company has power over the investee, enjoys variable returns by participating in the investee's related activities, and has the ability to use its power over the investee to affect the amount of its returns.

(2) Merger procedure

The company regards the entire enterprise group as an accounting entity and prepares consolidated financial statements in accordance with unified accounting policies to reflect the overall financial status, operating results and cash flow of the enterprise group. The effects of internal transactions between the Company and its subsidiaries and between subsidiaries are eliminated. If internal transactions indicate that impairment losses have occurred on related assets, the full amount of such losses shall be recognized. If the accounting policies and accounting periods adopted by subsidiaries are inconsistent with those of the Company, necessary adjustments shall be made in accordance with the Company's accounting policies and accounting periods when preparing consolidated financial statements.

The owner's equity of subsidiaries, current net profit and loss and current comprehensive income belonging to minority shareholders are presented separately under the owner's equity item in the consolidated balance sheet, the net profit item and the total comprehensive income item in the consolidated income statement. If the current losses shared by the minority shareholders of a subsidiary exceed the minority shareholders' share of the subsidiary's opening owner's equity, the balance is offset against the minority shareholders' equity.

Add subsidiaries or businesses

During the reporting period, if a subsidiary or business is added due to a business merger under the same control, the operating results and cash flows of the subsidiary or business combination from the beginning of the current period to the end of the reporting period will be included in the consolidated financial statements. At the same time, the opening numbers of the consolidated financial statements and relevant items in the comparative statements will be adjusted. The post-merger reporting entity will be deemed to have existed from the time when the ultimate controlling party began to control.

If it is possible to control an investee under the same control due to additional investment or other reasons, the equity investment held before obtaining control of the merged party has recognized relevant profits and losses, other comprehensive income and other changes in net assets between the date of acquisition of the original equity and the date when the merging party and the merged party are under the same control, whichever is later, to the date of merger, and shall offset the opening retained earnings or current profits and losses of the comparative statement period respectively.

During the reporting period, if a subsidiary or business is added due to a business combination not under common control, the fair value of each identifiable asset, liability and contingent liability determined on the date of purchase will be included in the consolidated financial statements from the date of purchase.

If it is possible to exercise control over an investee not under the same control due to additional investment or other reasons, the equity of the purchased party held before the purchase date shall be remeasured according to the fair value of the equity on the purchase date, and the difference between the fair value and its book value shall be included in the investment income of the current period. Other comprehensive income related to the equity of the purchased party held before the purchase date that can be reclassified into profit and loss later, and other changes in owner's equity under equity method accounting are converted into investment income for the current period on the purchase date. 2) Disposal of subsidiaries

①General treatment methods

When control over the investee is lost due to the disposal of part of the equity investment or other reasons, the remaining equity investment after disposal shall be remeasured according to its fair value on the date of loss of control. The difference between the sum of the consideration obtained for disposing of the equity and the fair value of the remaining equity, minus the sum of the share of the original subsidiary's net assets calculated continuously from the date of purchase or merger based on the original shareholding ratio and the sum of goodwill, shall be included in the investment income in the period when control is lost. Equity investment with original subsidiaries

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Relevant other comprehensive income that can be reclassified into profit and loss in the future and other changes in owner's equity under equity method accounting will be converted into investment income for the current period when control is lost. ② Disposal of subsidiaries step by step

If the equity investment in a subsidiary is disposed of step by step through multiple transactions until control is lost, if the terms, conditions and economic impact of each transaction to dispose of the equity investment in the subsidiary meet one or more of the following circumstances, it usually indicates that the multiple transactions are a package deal:

ⅰ. the transactions were entered into simultaneously or with consideration of their effects on each other;

ⅱ. Only these transactions as a whole can achieve a complete business result;

ⅲ. The occurrence of one transaction depends on the occurrence of at least one other transaction;

ⅳ. A transaction that is uneconomical on its own is economical when considered together with other transactions.

If each transaction is a package deal, each transaction will be accounted for as a transaction in which the subsidiary is disposed of and control is lost; before the loss of control, the difference between each disposal price and the share of the subsidiary's net assets corresponding to the disposal investment is recognized as other comprehensive income in the consolidated financial statements, and is transferred to the profit and loss of the current period when control is lost.

If each transaction does not belong to a package deal, before the loss of control, the equity investment in the subsidiary will be accounted for as a partial disposal without losing control; when the control is lost, the accounting treatment will be based on the general treatment method for disposing of a subsidiary.

Purchase minority shares in subsidiaries

The difference between the newly acquired long-term equity investment due to the purchase of minority shares and the share of the subsidiary's net assets calculated continuously from the date of purchase or merger based on the newly added shareholding ratio shall be adjusted to the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve is insufficient to offset, the retained earnings shall be adjusted. 4) Partially dispose of equity investments in subsidiaries without losing control

The difference between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the long-term equity investment, calculated continuously from the date of purchase or merger, is adjusted to the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve is insufficient to offset, the retained earnings are adjusted.

Classification of joint arrangements and accounting treatment of joint operations

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.

The company confirms the following items related to the interest share in joint operations:

Confirm the assets held individually by the company, and confirm the assets held jointly according to the company’s share;
Confirm the liabilities borne by the company alone, and confirm the liabilities borne jointly by the company's share;
Recognize the income generated from the sale of the company’s share of joint operating output;
Recognize the income generated by the joint operation from the sale of output according to the company’s share;
Recognize the expenses incurred individually, and recognize the expenses incurred by joint operations based on the company’s share.

The Company's investment in joint ventures is accounted for using the equity method. For details, see "V. 22. Long-term Equity Investment" in this note.

Determination standards for cash and cash equivalents

Cash refers to the company's cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to investments held by the Company that are short-term, highly liquid, easily convertible into known amounts of cash, and have little risk of value changes.

Foreign currency business and foreign currency statement conversion

(1) Foreign currency business

For foreign currency business, the spot exchange rate on the date of transaction is used as the conversion exchange rate to convert the foreign currency amount into RMB for accounting.

The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate on the balance sheet date. The resulting exchange differences, except for the exchange differences arising from special foreign currency borrowings related to the acquisition and construction of assets that meet capitalization conditions, are treated in accordance with the principle of capitalization of borrowing costs, and are included in the current profit and loss.

(2) Conversion of foreign currency financial statements

The assets and liabilities items in the balance sheet are translated using the spot exchange rate on the balance sheet date; except for the "undistributed profits" item, the owner's equity items are

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The project is translated using the spot exchange rate at the time of occurrence. Income and expense items in the income statement are translated using the spot exchange rate on the date of transaction.

When disposing of an overseas operation, the translation difference of the foreign currency financial statements related to the overseas operation will be transferred from the owner's equity items to the current profit and loss of the disposal.

Financial instruments

The Company recognizes a financial asset, financial liability or equity instrument when it becomes a party to a financial instrument contract.

(1) Classification of financial instruments

Based on the company's business model for managing financial assets and the contractual cash flow characteristics of financial assets, financial assets are classified upon initial recognition as: 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 Company will classify financial assets that meet the following conditions and are not designated as measured at fair value through profit or loss for the current period as financial assets measured at amortized cost:

The business model is aimed at collecting contractual cash flows;
Contractual cash flows are solely payments of principal and interest based on the outstanding principal amount.

The business model aims at both collecting contractual cash flows and selling the financial assets;
Contractual cash flows are solely payments of principal and interest based on the outstanding principal amount.

For non-trading equity instrument investments, the Company can irrevocably designate them as financial assets measured at fair value with changes included in other comprehensive income (equity instruments) upon initial recognition. This designation is made on an individual investment basis and the underlying investment meets the definition of an equity instrument from the issuer's perspective. Except for the above-mentioned financial assets measured at amortized cost and at fair value with changes included in other comprehensive income, the Company classifies all remaining financial assets as financial assets measured at fair value with changes included in current profits and losses. At the time of initial recognition, if the accounting mismatch can be eliminated or significantly reduced, the Company may irrevocably designate financial assets that would have been classified as measured at amortized cost or at fair value through other comprehensive income as financial assets at fair value through profit or loss.

Financial liabilities are classified upon initial recognition into: financial liabilities measured at fair value through profit or loss for the current period and financial liabilities measured at amortized cost. Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at fair value with changes included in current profits and losses at the time of initial measurement:

This designation can eliminate or significantly reduce accounting mismatches.
According to the enterprise risk management or investment strategies stated in formal written documents, manage and perform performance evaluation of financial liability portfolios or financial assets and financial liability portfolios based on fair value, and report to key management personnel on this basis within the enterprise.
The financial liability contains embedded derivatives that need to be separated separately.

(2) Recognition basis and measurement method of financial instruments

Financial assets measured at amortized cost

Financial assets measured at amortized cost include notes receivable, accounts receivable, other receivables, long-term receivables, debt investments, etc., which are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount; accounts receivable that do not contain significant financing components and accounts receivable that the company decides not to consider financing components that do not exceed one year are initially measured at the contract transaction price.

Interest calculated using the actual interest rate method during the holding period is included in the current profit and loss.

When recovered or disposed of, the difference between the price obtained and the book value of the financial asset will be included in the current profit and loss.

Financial assets (debt instruments) measured at fair value with changes included in other comprehensive income

Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income include receivables financing, other debt investments, etc., which are initially measured at fair value, and related transaction costs are included in the initial recognition amount. The financial assets are subsequently measured at fair value, and changes in fair value are included in other comprehensive income, except for interest calculated using the effective interest rate method, impairment losses or gains and exchange gains and losses.

When derecognition is terminated, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in the current profit and loss.

Financial assets (equity instruments) measured at fair value and changes included in other comprehensive income

Financial assets (equity instruments) measured at fair value through other comprehensive income, including other equity instrument investments, are initially measured at fair value, and relevant transaction costs are included in the initial recognition amount. The financial assets are subsequently measured at fair value, and changes in fair value are included in other comprehensive income. obtained

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Dividends are included in current profits and losses.

Upon derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings.

Financial assets measured at fair value and changes included in current profits and losses

Financial assets measured at fair value and whose changes are included in the current profit and loss include trading financial assets, derivative financial assets, other non-current financial assets, etc., which are initially measured at fair value, and related transaction costs are included in the current profit and loss. The financial assets are subsequently measured at fair value, and changes in fair value are included in current profits and losses. 5) Financial liabilities measured at fair value and changes included in current profits and losses

Financial liabilities measured at fair value and whose changes are included in the current profit and loss include trading financial liabilities, derivative financial liabilities, etc., which are initially measured at fair value, and related transaction costs are included in the current profit and loss. The financial liability is subsequently measured at fair value, and changes in fair value are included in current profits and losses.

When derecognition is terminated, the difference between its book value and the consideration paid is included in the current profit and loss.

Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables. They are initially measured at fair value, and related transaction costs are included in the initial recognition amount.

Interest calculated using the actual interest rate method during the holding period is included in the current profit and loss.

When the recognition is terminated, the difference between the consideration paid and the book value of the financial liability will be included in the current profit and loss.

(3) Recognition basis and measurement method for derecognition of financial assets and transfer of financial assets

When one of the following conditions is met, the company terminates the recognition of financial assets:

Termination of the contractual right to receive cash flows from the financial asset;
The financial asset has been transferred, and substantially all the risks and rewards of ownership of the financial asset have been transferred to the transferee;
The financial asset has been transferred. Although the Company neither transfers nor retains substantially all risks and rewards of ownership of the financial asset, it does not retain control over the financial asset.

If the company and the counterparty modify or renegotiate the contract and it constitutes a substantial modification, the original financial asset will be terminated and a new financial asset will be recognized in accordance with the modified terms.

When a financial asset is transferred, if substantially all the risks and rewards of ownership of the financial asset are retained, the financial asset will not be derecognised.

When judging whether the transfer of financial assets meets the above conditions for derecognition of financial assets, the principle of substance over form is adopted.

The company distinguishes the transfer of financial assets into overall transfer and partial transfer of financial assets. If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts will be included in the current profit and loss:

The book value of the transferred financial assets;
The sum of the consideration received for the transfer and the cumulative amount of changes in fair value that were originally directly included in the owner's equity (if the financial assets involved in the transfer are financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income).

If a partial transfer of a financial asset meets the conditions for derecognition, the overall book value of the transferred financial asset will be apportioned between the derecognized part and the non-derecognized part according to their respective relative fair values, and the difference between the following two amounts shall be included in the current profit and loss:

The book value of the part whose recognition is terminated;
The sum of the consideration for the derecognition part and the amount corresponding to the derecognition part of the cumulative amount of changes in fair value that was originally directly included in the owner's equity (if the financial assets involved in the transfer are financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income).

If the transfer of financial assets does not meet the conditions for derecognition, the financial assets will continue to be recognized, and the consideration received will be recognized as a financial liability.

(4) Termination of recognition of financial liabilities

If the current obligations of a financial liability have been discharged in whole or in part, the recognition of the financial liability or part of it will be terminated; if the company signs an agreement with the creditor to replace the existing financial liability by assuming a new financial liability, and the contract terms of the new financial liability and the existing financial liability are substantially different, the recognition of the existing financial liability will be terminated and the new financial liability will be recognized at the same time.

If all or part of the contract terms of an existing financial liability are substantially modified, the recognition of the existing financial liability or part of it will be terminated, and the financial liability after the modified terms will be recognized as a new financial liability.

When all or part of a financial liability is derecognised, the difference between the book value of the derecognized financial liability and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) shall be included in the current profit and loss.

If the company repurchases part of a financial liability, on the repurchase date, the overall book value of the financial liability will be based on the relative fair value of the part that continues to be recognized and the part that has been terminated.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

value is assigned. The difference between the book value allocated to the derecognized part and the consideration paid (including non-cash assets transferred out or new financial liabilities assumed) is included in the current profit and loss.

(5) Method for determining the fair value of financial assets and financial liabilities

For financial instruments with an active market, their fair value is determined based on the quoted price in the active market. For financial instruments for which there is no active market, valuation techniques are used to determine their fair value. When valuing, the Company adopts valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information, selects input values that are consistent with the characteristics of the assets or liabilities considered by market participants in transactions of related assets or liabilities, and gives priority to the use of relevant observable input values. Unobservable inputs are used only when the relevant observable inputs are unobservable or impracticable to obtain.

(6) Testing methods and accounting treatment methods for impairment of financial instruments

The Company performs impairment accounting treatment on the basis of expected credit losses for financial assets measured at amortized cost, financial assets (debt instruments) measured at fair value with changes included in other comprehensive income, and financial guarantee contracts.

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.

For receivables and contract assets formed by transactions regulated by "Accounting Standards for Business Enterprises No. 14 - Revenue", regardless of whether they contain significant financing components, the Company always measures its loss provisions at an amount equivalent to the expected credit losses during the entire duration.

For lease receivables formed by transactions regulated by "Accounting Standards for Business Enterprises No. 21 - Leasing", the Company chooses to always measure its loss provisions at an amount equivalent to the expected credit losses during the entire duration.

For other financial instruments, the Company evaluates the changes in the credit risk of the relevant financial instruments since initial recognition on each balance sheet date.

The Company compares the risk of default of a financial instrument on the balance sheet date with the risk of default on the initial recognition date to determine the relative change in the default risk of the financial instrument during its expected duration to assess whether the credit risk of the financial instrument has increased significantly since initial recognition. Generally, if the financial instrument 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 the initial recognition. If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the credit risk of the financial instrument has not increased significantly since initial recognition. If the credit risk of the financial instrument has 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 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 financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income, the loss provision is recognized in other comprehensive income, and the impairment loss or gain is included in the current profit and loss, without reducing the book value of the financial asset listed in the balance sheet.

If the company no longer reasonably expects that the contractual cash flows of a financial asset can be fully or partially recovered, it will directly write down the book balance of the financial asset.

The Company divides financial assets that are not individually assessed to be credit-impaired into different portfolios based on their credit risk characteristics:

Basis for determining the combination of credit risk characteristics

Project Basis for determining combination

Credit mix:

In addition to accounts receivable and other receivables for which loss provisions have been separately measured, the Company calculates accounts receivable and commercial acceptance receivables with similar credit risk characteristics based on the same combination A (aging combination) as in previous years or similar ones divided by aging periods.

Loss provisions are determined based on the expected credit losses of the bill portfolio and taking into account forward-looking information.

Portfolio B (Deposit and Margin Portfolio) Various types of deposits, margins and other receivables that should be collected in daily operating activities.

Portfolio C (financial assets with extremely low credit risk, measured based on expected credit losses, notes receivable, accounts receivable, interest receivable, and stock receivables with extremely low credit risk), profits, etc.

When implementing credit risk assessment on a portfolio basis, based on the financial asset portfolio structure and similar credit risk characteristics (the debtor's ability to repay the debt according to the terms of the contract), combined with historical default loss experience and current economic conditions, and considering forward-looking information, the expected credit losses are measured on the basis of the expected duration, and the loss provision for financial assets is recognized.

Methods for accruing loss provisions for different combinations of measurements:

Item accrual method

Portfolio A (aging portfolio) Estimated duration

Portfolio B (Deposit and Margin Portfolio) Estimated Duration

Portfolio C (financial products with extremely low credit risk

expected duration

portfolio)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The expected credit loss rate of each portfolio is as follows:

Portfolio A (aging portfolio): expected credit loss rate

Expected credit loss rate of accounts receivable, expected credit of commercial acceptance bills receivable, expected credit loss rate of other receivables, aging

(%) Loss rate (%) (%) Within 1 year (including 1 year) 0.5 0.5 0.5 1-2 years 10 10 10 2-3 years 50 50 50 More than 3 years 100 100 100 Portfolio B (Deposit Margin Portfolio): Combining historical default loss experience and current economic conditions, taking into account forward-looking information, the expected credit loss rate is 0; Portfolio C (financial asset portfolio with extremely low credit risk): Combining historical default loss experience and current economic conditions, taking into account forward-looking information, the expected credit loss rate is 0.

Notes receivable

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Accounts receivable

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Accounts receivable financing

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

Other receivables

The Company conducts accounting treatment in accordance with "V. 11. Financial Instruments" in Section 8 of the Financial Report of this report.

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 right to receive consideration for which the Company has transferred goods or provided services to a customer (and that right is dependent on factors other than the passage of time) is shown as a contract asset. Contract assets and contract liabilities under the same contract are presented on a net basis. The Company's unconditional (subject only to the passage of time) right to receive consideration from customers is presented separately as receivables. (2) Determination method and accounting treatment method of expected credit loss of contract assets

For details on the determination method and accounting treatment method of expected credit losses of contract assets, please refer to "11. (6) Testing method and accounting treatment method for impairment of financial instruments" in this note.

Inventory

(1) Classification and cost of inventory

Inventories are classified into: raw materials, work-in-progress and semi-finished products, goods in stock, goods on consignment, etc.

Inventories are initially measured at cost, which includes purchase costs, processing costs and other expenses incurred to bring the inventory to its current location and status. (2) Valuation method for issued inventory

Inventories are valued based on the weighted average method when shipped.

(3) Inventory inventory system

Adopt a perpetual inventory system.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(4) Amortization method for low-value consumables and packaging materials

Low-value consumables adopt the one-time resale method
The packaging adopts the one-time resale method

(5) Recognition standards and accrual methods for inventory depreciation provisions

On the balance sheet date, inventories should be measured at the lower of cost and net realizable value. When the inventory cost is higher than its net realizable value, inventory depreciation provisions should be made. Net realizable value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.

For inventory of goods that are directly for sale, such as finished goods, inventory, and materials for sale, during the normal production and operation process, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes; for material inventories that need to be processed, during the normal production and operation process, the estimated selling price of the finished goods produced is deducted to the time of completion. The net realizable value is determined based on the estimated costs, estimated sales expenses and relevant taxes. For inventories held for the execution of sales contracts or labor contracts, the net realizable value is calculated based on the contract price. If the quantity of inventory held is greater than the quantity ordered in the sales contract, the net realizable value of the excess inventory is calculated based on the general sales price.

If the company accrues inventory depreciation provisions on a combination basis, the combination categories and determination basis as well as the basis for determination of the net realizable value of different types of inventory are as follows:

Inventory portfolio category Specific basis for accruing inventory depreciation provisions

① For Chinese herbal medicines, during the reporting period, the company judged whether there were signs of price declines in the corresponding Chinese herbal medicines based on the price decline of relevant finished products, conducted price decline impairment tests and made corresponding provision for inventory declines. In addition, out of prudent consideration of raw materials, the company will use public market information to determine whether there are signs of price decline for Chinese herbal medicines that have been in storage for more than one year and have not been used, conduct a price decline impairment test and make corresponding provision for inventory decline.

② For raw materials other than Chinese herbal medicines that are approaching the expiration date and are not expected to be used in the future, the full price reduction

During the reporting period, the company judged whether there were signs of price decline in the corresponding products in progress based on the price decline of relevant finished products, conducted a price decline impairment test and made corresponding provision for inventory decline. In addition, due to the inventory age of more than 2 years of products in process, its products and semi-finished products

The possibility of realization is low. For prudent reasons, the company has made full provision for inventory depreciation for products in progress and finished products with a storage age of more than 2 years.

The net realizable value of inventory held for the execution of a sales contract is calculated based on the contract price. If the quantity of inventory held by the enterprise is greater than the quantity ordered in the sales contract, the net realizable value of the excess inventory is based on the general sales price. Inventory goods and consigned goods are sold on a consignment basis.

Calculate. In addition, the company makes full provision for inventory depreciation for drugs with a validity period of less than or equal to 180 days.

Full provision for inventory depreciation is made for reagents with a period of less than or equal to 90 days.

After the provision for inventory depreciation is accrued, if the factors that previously caused the inventory value to be written down have disappeared, causing the net realizable value of the inventory to be higher than its book value, the amount of the inventory depreciation provision that was originally accrued will be reversed, and the amount reversed will be included in the current profit and loss.

Assets held for sale

(1) Held for sale

If the book value of a non-current asset or disposal group is recovered mainly through sale (including non-monetary asset exchange with commercial substance) rather than continued use, it is classified as held for sale.

The company classifies non-current assets or disposal groups that meet both the following conditions into the held-for-sale category:

According to the practice of selling such assets or disposal groups in similar transactions, they can be sold immediately under the current conditions;
The sale is very likely to occur, that is, the company has made a resolution on a sale plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year. Relevant regulations require the company's relevant authorities or regulatory authorities to obtain approval before sale, and the approval has been obtained.

Classified as non-current assets held for sale (excluding financial assets, deferred income tax assets, assets formed by employee compensation) or disposal groups, if their book value is higher than the net amount of fair value minus selling expenses, the book value is reduced to the net amount of fair value minus selling expenses. The amount of the write-down is recognized as asset impairment loss and included in the current profit and loss, and an impairment provision for assets held for sale is made at the same time.

(2) Termination of operations

Discontinued operations are an individually distinguishable component that meets one of the following conditions, and the component has been disposed of by the Company or classified as held for sale by the Company:

This component represents an independent major business or a separate major operating area;
The component is part of an associated plan to dispose of an independent main business or an independent main operating area;

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The component is a subsidiary acquired exclusively for resale.

Profit and loss from continuing operations and profits and losses from discontinued operations are presented separately in the income statement. Impairment losses and reversal amounts from discontinued operations and other operating profits and losses as well as disposal gains and losses are presented as profits and losses from discontinued operations. For discontinued operations reported in the current period, the company will re-present the information originally presented as profits and losses from continuing operations as profits and losses from discontinued operations in the comparable accounting period in the current financial statements.

Debt investment
Other debt investments
Long-term receivables
Long-term equity investment

(1) Judgment criteria for joint control and significant influence

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. If the company and other joint venture parties jointly control the invested unit and have rights to the net assets of the invested unit, the invested unit is a joint venture of the company.

Significant influence refers to the power to participate in the financial and operating decisions of the invested unit, but it is not able to control or jointly control the formulation of these policies with other parties. If the company can exert significant influence on the invested unit, the invested unit shall be an associate of the company.

(2) Determination of initial investment cost

Long-term equity investment formed by business merger

For long-term equity investments in subsidiaries resulting from a business combination under common control, the initial investment cost of the long-term equity investment shall be the share of the book value of the combined party's owner's equity in the ultimate controlling party's consolidated financial statements on the date of merger. The difference between the initial investment cost of a long-term equity investment and the book value of the payment consideration is adjusted to the equity premium in the capital reserve; when the equity premium in the capital reserve is insufficient for offset, the retained earnings are adjusted. If it is possible to control an investee under the same control due to additional investment or other reasons, the difference between the initial investment cost of the long-term equity investment confirmed in accordance with the above principles and the book value of the long-term equity investment before the merger plus the book value of the new consideration for further acquisition of shares on the merger date will be adjusted. If the equity premium is insufficient to offset it, the retained earnings will be offset.

For long-term equity investments in subsidiaries resulting from a business combination not under common control, the merger cost determined on the purchase date shall be regarded as the initial investment cost of the long-term equity investment. If it is possible to exercise control over an investee that is not under common control due to additional investment or other reasons, the initial investment cost shall be the sum of the book value of the original equity investment plus the cost of the new investment.

Long-term equity investment obtained through other methods other than business mergers

For long-term equity investments obtained by paying cash, the actual purchase price paid shall be regarded as the initial investment cost.

For long-term equity investments obtained by issuing equity securities, the initial investment cost shall be based on the fair value of the equity securities issued.

(3) Subsequent measurement and profit and loss recognition methods

Long-term equity investment calculated using cost method

The company's long-term equity investments in subsidiaries are accounted for using the cost method, unless the investment meets the conditions of being held for sale. 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 company recognizes the current investment income based on the cash dividends or profits declared and distributed by the investee.

Long-term equity investment accounted for by equity method

Long-term equity investments in associates and joint ventures are accounted for using the equity method. If the initial investment cost is greater than the fair value share of the investee's identifiable net assets that should be enjoyed at the time of investment, the initial investment cost of long-term equity investment will not be adjusted; if the initial investment cost is less than the fair value share of the investee's identifiable net assets that should be enjoyed at the time of investment, the difference will be included in the current profit and loss, and the cost of long-term equity investment will be adjusted at the same time.

The company recognizes investment income and other comprehensive income respectively according to its share of the net profit or loss and other comprehensive income realized by the invested unit, and adjusts the book value of the long-term equity investment at the same time; calculates the share of the invested unit's profits or cash dividends declared to be distributed, and reduces the book value of the long-term equity investment accordingly; for other changes in the owner's equity of the invested unit other than net profits and losses, other comprehensive income and profit distribution (referred to as "other owners' equity")

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Changes"), adjust the book value of long-term equity investments and include them in owners' equity.

When confirming the share of the investee's net profit and loss, other comprehensive income and other changes in owner's equity, the fair value of the investee's identifiable net assets when the investment is obtained is used as the basis, and in accordance with the company's accounting policies and accounting period, the net profit and other comprehensive income of the investee are adjusted and recognized. The unrealized profits and losses from internal transactions between the company and its associates and joint ventures shall be offset according to the proportion attributable to the company, and investment income shall be recognized on this basis, except where the assets invested or sold constitute a business. Unrealized internal transaction losses with invested entities, which are asset impairment losses, are recognized in full.

The company's net losses from joint ventures or associates, in addition to its obligation to bear additional losses, are limited to the reduction to zero of the book value of long-term equity investments and other long-term equities that essentially constitute the net investment in joint ventures or associates. If the joint venture or associated enterprise realizes net profits in the future, the company will resume recognizing the income sharing amount after the income sharing amount makes up for the unrecognized loss sharing amount.

Disposal of long-term equity investments

When a long-term equity investment is disposed of, the difference between its book value and the actual price obtained shall be included in the current profit and loss.

If a long-term equity investment accounted for by the equity method is partially disposed of, and the remaining equity is still accounted for by the equity method, other comprehensive income recognized by the original equity method will be carried forward in proportion to the same basis as the investee's direct disposal of relevant assets or liabilities, and changes in other owners' equity will be carried forward to the current profit and loss in proportion.

If the joint control or significant influence on the invested unit is lost due to the disposal of equity investment or other reasons, other comprehensive income recognized by the original equity investment due to the use of equity method accounting shall be accounted for on the same basis as the investee's direct disposal of relevant assets or liabilities when the use of equity method accounting is terminated. All other changes in owner's equity will be transferred to the current profit and loss when the use of equity method accounting is terminated.

If control over the invested unit is lost due to disposal of part of the equity investment or other reasons, when preparing individual financial statements, if the remaining equity can exercise joint control or significant influence on the invested unit, it shall be accounted for according to the equity method instead, and the remaining equity shall be deemed to have been accounted for using the equity method from the time of acquisition for adjustment. For other comprehensive income recognized before obtaining control of the invested unit, the same method as for the direct disposal of relevant assets or liabilities by the invested unit shall be used. The basis is carried forward on a proportional basis, and changes in other owners' equity recognized by the equity method are carried forward proportionally to the current profit and loss; if the remaining equity cannot jointly control or exert significant influence on the invested unit, it is recognized as a financial asset, and the difference between its fair value and book value on the date of loss of control is included in the current profit and loss. Other comprehensive income and other changes in other owners' equity recognized before obtaining control of the invested unit are all carried forward.

If the equity investment in a subsidiary is disposed of in multiple transactions step by step until the control is lost, and it is a package transaction, each transaction is accounted for as a transaction in which the equity investment in the subsidiary is disposed of and control is lost; before the loss of control, the difference between the price of each disposal and the book value of the long-term equity investment corresponding to the equity disposed is first recognized as other comprehensive income in individual financial statements, and when control is lost, it is transferred to the current profit and loss for the loss of control. If the transaction does not belong to a package, each transaction shall be accounted for separately.

Investment real estate

Investment real estate measurement model

Cost method measurement

Depreciation or amortization method

Investment real estate refers to real estate held for the purpose of earning rentals or capital appreciation, or both, including leased land use rights, land use rights held and prepared to be transferred after appreciation, and leased buildings (including buildings for rent after self-construction or development activities are completed, and buildings for rent in the future during construction or development).

Subsequent expenditures related to investment real estate are included in the cost of investment real estate when the relevant economic benefits are likely to flow in and the cost can be reliably measured; otherwise, they are included in the current profit and loss when incurred.

The Company adopts the cost model to measure existing investment real estate. For investment real estate measured according to the cost model - buildings for rental, the same depreciation policy is adopted as the company's fixed assets, and land use rights for rental are subject to the same amortization policy as intangible assets.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Fixed assets

(1) Confirmation conditions

Fixed assets refer to tangible assets held for the purpose of producing goods, providing labor services, leasing or operating management, and whose useful life exceeds one accounting year. Fixed assets are recognized when the following conditions are met at the same time:

The economic benefits related to the fixed asset are likely to flow into the enterprise;
The cost of the fixed asset can be measured reliably.

Fixed assets are initially measured at cost (taking into account the impact of expected disposal costs).

Subsequent expenditures related to a fixed asset are included in the cost of the fixed asset when the economic benefits related to it are likely to flow in and its cost can be reliably measured; for the replaced part, its book value is derecognised; all other subsequent expenditures are included in the current profit and loss when incurred.

(2) Depreciation method

Category Depreciation method Depreciation period Residual value rate Annual depreciation rate Houses and buildings Year-averaged method 30 2%-10% 3%-3.27%

house building (attached

Average method of years 10 2%-10% 9%-9.8%

things)

Houses and buildings (decoration)

Year average method 3-5 2%-10% 18%-32.67%

fee)

Machinery and equipment Average age method 3-10 2%-10% 9%-32.67%

Transportation equipment Average age method 4 2%-10% 22.5%-24.5% Electronic equipment Average age method 3-5 2%-10% 18%-32.67%

Office equipment average age method 3-5 2%-10% 18%-32.67%

Depreciation of fixed assets is calculated using the straight-line method, and the depreciation rate is determined based on the category of fixed assets, estimated service life and estimated net residual value rate. For fixed assets for which impairment provisions have been made, the depreciation amount will be determined based on the book value after deducting impairment provisions and the remaining useful life in the future period. If each component of a fixed asset has a different service life or provides economic benefits to the enterprise in different ways, different depreciation rates or depreciation methods should be selected to accrue depreciation separately.

(3) Fixed asset disposal

When a fixed asset is disposed of or no economic benefits are expected to be generated through use or disposal, the fixed asset is derecognised. The amount of disposal income from the sale, transfer, scrapping or damage of fixed assets after deducting their book value and related taxes is included in the current profit and loss.

Projects under construction

Construction in progress is measured based on actual costs incurred. Actual costs include construction costs, installation costs, borrowing costs eligible for capitalization and other necessary expenditures incurred before the project under construction reaches the intended usable condition. When the construction in progress reaches the intended usable state, it will be transferred to fixed assets and depreciation will be accrued from the next month. The standards and timing for transferring the company's construction-in-progress to fixed assets are as follows:

Category Criteria and time point for conversion to fixed assets

(1) The main construction project and supporting projects have been substantially completed; (2) The construction project has been completed after meeting the predetermined design requirements.

The inspection, design, construction, supervision and other units have completed the acceptance; (3) After the inspection and acceptance by external departments such as fire protection, land and planning, etc.; the house and its ancillary projects

(4) If the construction project reaches the intended usable state but has not yet completed the final accounts and other procedures, it will be transferred to fixed assets at the estimated value based on the actual cost of the project from the date it reaches the intended usable state.

(1) Relevant equipment and other supporting facilities have been installed; (2) After debugging, the equipment can maintain the required installation equipment (including software, machine equipment, etc.) for a period of time.

Normal and stable operation; (3) The production equipment can stably produce qualified products for a period of time; (4) The equipment has been qualified, transportation equipment, electronic equipment, etc.)

Acceptance by product managers and users

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Borrowing costs

(1) Recognition principles for capitalization of borrowing costs

If the borrowing costs incurred by the company can be directly attributed to the purchase, 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 based on the amount incurred when they are incurred and included in the current profits and losses.

Assets that meet the conditions for capitalization refer to fixed assets, investment real estate, inventories and other assets that require a considerable period of acquisition, construction or production activities to reach the intended usable or salable state.

(2) Capitalization period of borrowing costs

The capitalization period refers to the period from the time when borrowing costs start to be capitalized to the time when capitalization stops. The period during which the capitalization of borrowing costs is suspended is not included. Capitalization of borrowing costs begins when the following conditions are met at the same time:

Asset expenditures have occurred, including expenditures in the form of cash payments, transfers of non-cash assets or interest-bearing debts for the acquisition, construction or production of assets that meet capitalization conditions;
Borrowing costs have been incurred;
The necessary purchase, construction or production activities to bring the asset to its intended usable or salable state have begun.

When the acquisition, construction or production of assets that meet the capitalization conditions reaches the intended usable or salable state, the capitalization of borrowing costs ceases.

(3) Capitalization suspension period

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 will be suspended; if the interruption is a necessary procedure for the assets that meet the capitalization conditions to be acquired, constructed or produced to reach the intended usable or salable state, the borrowing costs will continue to be capitalized. Borrowing costs incurred during the interruption period are recognized as current profits and losses, and the borrowing costs continue to be capitalized until the acquisition, construction or production activities of the assets restart. (4) Calculation method of capitalization rate and capitalization amount of borrowing costs

For special borrowings borrowed for the purpose of purchasing, constructing or producing assets that qualify for capitalization, the capitalized amount of borrowing costs is determined based on the amount of borrowing costs actually incurred for the special borrowing in the current period, minus the interest income from unused borrowed funds deposited in the bank or the investment income from temporary investments. For general borrowings used for the purchase, construction or production of assets that qualify for capitalization, the amount of borrowing costs that should be capitalized on the general borrowings is calculated and determined based on the weighted average of the asset disbursements that exceed the portion of the special borrowings multiplied by the capitalization rate of the general borrowings occupied. The capitalization rate is calculated and determined based on the weighted average actual interest rate of general borrowings.

During the capitalization period, the exchange differences on the principal and interest of special foreign currency borrowings are capitalized and included in the cost of assets that meet the capitalization conditions. Exchange differences arising from the principal and interest of foreign currency borrowings other than special 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

Valuation method of intangible assets

When the company obtains intangible assets, it is initially measured at cost;

The cost of outsourced intangible assets includes the purchase price, relevant taxes and other expenses directly attributable to achieving the intended use of the asset.

Subsequent measurement

Analyze and determine the useful life of intangible assets when acquiring them.

For intangible assets with a limited service life, they will be amortized within the period that they bring economic benefits to the enterprise; if the period in which the intangible assets can bring economic benefits to the enterprise cannot be foreseen, they will be regarded as intangible assets with an indefinite service life and will not be amortized.

Estimated service life of intangible assets with limited service life

Item Estimated useful life Amortization method

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Land use rights, property rights certificate period, average period method

Patent rights 7-20 years average term method

Software 2-10 years average method

Non-patented technology 10 years Averaging method

Trademark/Copyright 10 years Averaging method

Business license rights, license period, average period method

Basis for judgment of intangible assets with indefinite useful lives and procedures for reviewing their useful lives

As of the balance sheet date, the Company has no intangible assets with indefinite useful lives.

(2) Scope of aggregation of R&D expenditures and related accounting treatment methods

Scope of collection of R&D expenditures

Expenditures incurred by the company during the research and development process include relevant employee salaries, consumed materials, related depreciation and amortization expenses and other related expenses for personnel engaged in R&D activities.

Specific criteria for dividing research and development phases

The company's internal research and development project expenditures are divided into research stage expenditures and development stage expenditures.

Research stage: The stage of original planned investigation and research activities to obtain and understand new scientific or technical knowledge.

Development stage: A stage in which research results or other knowledge are applied to a plan or design to produce new or substantially improved materials, devices, products, etc. before commercial production or use.

Specific conditions for capitalization of development phase expenditures

Expenditures in the research stage are included in the current profits and losses when incurred. Expenditures in the development stage that meet the following conditions at the same time are recognized as intangible assets. Expenditures in the development stage that do not meet the following conditions are included in the current profit and loss:

It is technically feasible to complete the intangible asset so that it can be used or sold;
Have the intention to complete the intangible asset and use or sell it;
The way intangible assets generate economic benefits, including being able to prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market. If the intangible assets will be used internally, their usefulness can be proven;
Have sufficient technical, financial and other resource support to complete the development of the intangible assets, and have the ability to use or sell the intangible assets;
Expenditures attributable to the development stage of the intangible asset can be measured reliably.

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

Long-term equity investments, investment real estate measured using the cost model, fixed assets, projects under construction, right-of-use assets, intangible assets with limited useful lives, oil and gas assets and other long-term assets will be tested for impairment if there are signs of impairment on the balance sheet date. If the impairment test results show that the recoverable amount of the asset is lower than its book value, impairment provisions will be made based on the difference and included in the impairment loss. The recoverable amount is the higher of the asset's fair value less disposal costs and the present value of the asset's expected future cash flows. Asset impairment provisions are calculated and recognized on the basis of individual assets. 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. An asset group is the smallest combination of assets that can independently generate cash inflows. For goodwill formed due to business mergers, intangible assets with indefinite useful lives, and intangible assets that have not yet reached a usable state, regardless of whether there are signs of impairment, an impairment test shall be conducted at least at the end of each year.

The company conducts a goodwill impairment test. The book value of goodwill formed due to business mergers will 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 will be allocated to the relevant asset group combinations. The relevant asset group or combination of asset groups is an asset group or combination of asset groups that can benefit from the synergistic effects of the business combination.

When conducting an impairment test on a relevant asset group or combination of asset groups that contains goodwill, if there are signs of impairment in the asset group or combination of asset groups that are 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 compare it with the relevant book value to confirm the corresponding impairment loss. Then conduct an impairment test on the asset group or asset group combination containing goodwill, and compare its book value with the recoverable amount. If the recoverable amount is lower than the book value,

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

If the value is significant, the amount of impairment loss is first deducted from the book value of goodwill allocated to the asset group or asset group combination, and then deducted from the book value of other assets in proportion to the proportion of the book value of other assets in the asset group or asset group combination except goodwill.

Once the above-mentioned asset impairment losses are recognized, they will not be reversed in subsequent accounting periods.

Long-term deferred expenses

Long-term deferred expenses are expenses that have been incurred but should be borne by the current and subsequent periods with an amortization period of more than one year.

Long-term deferred expenses are valued at the actual costs incurred when they are formed, and are amortized evenly over the beneficial years using the straight-line method, and are presented as the net amount of actual expenses minus accumulated amortization.

If a long-term deferred expense item cannot benefit future accounting periods, all the amortized value of the item that has not yet 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. Contract assets and contract liabilities under the same contract are presented on a net basis.

Employee compensation

(1) Accounting treatment method for short-term compensation

During the accounting period when employees provide services to the company, the company recognizes the actual short-term compensation as a liability and includes it in the current profit and loss or related asset costs. The company pays social insurance premiums and housing provident funds for its employees, as well as union funds and employee education funds withdrawn in accordance with regulations. During the accounting period when employees provide services to the company, the corresponding amount of employee remuneration is calculated and determined based on the prescribed accrual basis and accrual ratio.

The employee welfare expenses incurred by the company are included in the current profit and loss or related asset costs based on the actual amount when they are actually incurred. Among them, non-monetary benefits are measured at fair value.

(2) Accounting treatment of post-employment benefits

Set up a withdrawal plan

The company pays basic pension insurance and unemployment insurance for its employees in accordance with relevant regulations of the local government. During the accounting period when employees provide services to the company, the amount payable is calculated based on the payment base and proportion specified by the local government, is recognized as a liability, and is included in the current profit and loss or related asset costs. In addition, the Company also participates in the enterprise annuity plan/supplementary pension insurance fund approved by relevant national departments. The company pays contributions to the annuity plan/local social insurance agency based on a certain proportion of the total employee wages, and the corresponding expenditures are included in the current profit and loss or related asset costs.

Defined benefit plan

The company attributes the welfare obligations arising from the defined benefit plan to the period in which employees provide services based on the formula determined by the expected cumulative welfare unit method, and includes them in the current profit and loss or related asset costs.

The deficit or surplus formed by deducting the present value of the defined benefit plan obligations from the fair value of the defined benefit plan assets is recognized as the net liability or net assets of a defined benefit plan. If there is a surplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan at the lower of the surplus of the defined benefit plan and the asset upper limit.

All defined benefit plan obligations, including obligations expected to be paid within twelve months after the end of the annual reporting period in which employees provide services, are discounted based on the market rate of return on Treasury bonds or high-quality corporate bonds in active markets on the balance sheet date that match the term and currency of the defined benefit plan obligation.

The service costs incurred by the defined benefit plan and the net interest on the net liabilities or net assets of the defined benefit plan are included in the current profit and loss or related asset costs; the changes caused by the remeasurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income and will not be transferred back to profit or 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.

When the defined benefit plan is settled, the settlement gain or loss is recognized based on the difference between the present value of the defined benefit plan obligations determined on the settlement date and the settlement price.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(3) Accounting treatment method for dismissal benefits

If the company provides dismissal benefits to employees, the employee compensation liabilities arising from the dismissal benefits will be recognized and included in the current profit and loss at the earliest of the following two situations: when the company cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relations plan or layoff proposal; when the company recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits.

(4) Accounting treatment methods for other long-term employee benefits

Estimated liabilities

When the obligations related to contingencies meet the following conditions at the same time, the company will recognize them as estimated liabilities:

(1) The obligation is the current obligation of the company;

(2) Fulfilling this obligation is likely to cause economic benefits to flow out of the company;

(3) The amount of the obligation can be measured reliably.

Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the relevant current obligations.

When determining the best estimate, factors such as risks, uncertainties and time value of money related to contingencies are comprehensively considered. For those that have a significant impact on the time value of money, the best estimate is determined by discounting the relevant future cash outflows.

If there is a continuous range of required expenditures, and various outcomes within the range are equally likely to occur, the best estimate shall be determined based on the middle value within the range; in other cases, the best estimate shall be treated in the following situations:

(1) If the contingency involves a single project, it shall be determined based on the most likely amount.

(2) If the contingencies involve multiple projects, they shall be calculated and determined based on various possible outcomes and related probabilities.

If all or part of the expenses required to settle estimated liabilities are expected to be compensated by a third party, the compensation amount will be recognized separately as an asset when it is basically certain that it can be received, and the recognized compensation amount will not exceed the book value of the estimated liabilities.

The Company reviews the book value of estimated liabilities on the balance sheet date. If there is conclusive evidence that the book value does not reflect the current best estimate, the book value will be adjusted based on the current best estimate.

Share-based payment

The company's share-based payment is a transaction in which equity instruments are granted or liabilities determined based on equity instruments are granted in order to obtain services from employees or other parties. The Company's share-based payment is divided into equity-settled share-based payment and cash-settled share-based payment.

(1) Equity-settled share-based payment and equity instruments

If equity-settled share-based payment is exchanged for services provided by employees, it shall be measured at the fair value of the equity instruments granted to employees. For share-based payment transactions that become exercisable immediately after grant, the relevant costs or expenses will be included in the fair value of the equity instrument on the date of grant, and the capital reserve will be increased accordingly. For share-based payment transactions that are vested only after the completion of services within the waiting period or meeting specified performance conditions after grant, on each balance sheet date during the waiting period, the company will include the services obtained in the current period into relevant costs or expenses based on the best estimate of the number of exercisable equity instruments and the fair value on the date of grant, and increase the capital reserve accordingly.

If the terms of equity-settled share-based payment are modified, at least the services obtained will be recognized as if the terms had not been modified. In addition, any modification that increases the fair value of the equity instruments granted, or changes that are beneficial to employees on the modification date, is recognized as an increase in services obtained.

During the waiting period, if the granted equity instruments are canceled, the company will treat the cancellation of the granted equity instruments as accelerated exercise, and the amount that should be recognized during the remaining waiting period will be immediately included in the current profit and loss, and the capital reserve will be recognized at the same time. However, if new equity instruments are granted and it is determined on the grant date of the new equity instruments that the new equity instruments granted are used to replace the canceled equity instruments, the replacement equity instruments granted will be treated in the same manner as modifications to the terms and conditions of the original equity instruments.

(2) Cash-settled share-based payment and equity instruments

Cash-settled share-based payments are measured based on the fair value of the liability calculated and determined based on shares or other equity instruments assumed by the company. For share-based payment transactions that become exercisable immediately after grant, the company will include the relevant costs or expenses based on the fair value of the liability on the date of grant, and increase the liability accordingly. For completion after grant

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

For services within the waiting period or share-based payment transactions that are exercisable only when specified performance conditions are met, 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 are included in the liabilities accordingly. 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.

If the company modifies the terms and conditions in the cash-settled share-based payment agreement to make it an equity-settled share-based payment, on the modification date (whether it occurs during the waiting period or after the end of the waiting period), the company will measure the equity-settled share-based payment based on the fair value of the equity instrument granted on that day, and include the services received in the capital reserve. At the same time, it will terminate the recognition of the liabilities recognized by the cash-settled share-based payment on the modification date, and the difference between the two will be included in the current profit and loss. If the waiting period is extended or shortened due to modification, the company will perform accounting treatment according to the modified waiting period.

Preferred shares, perpetual bonds and other financial instruments

The company classifies the financial instrument or its components as financial assets, financial liabilities or equity instruments upon initial recognition based on the contractual terms of the preferred shares/perpetual bonds issued and the economic substance reflected therein rather than just the legal form.

Financial instruments such as perpetual bonds/preference shares issued by the company meet one of the following conditions, and the entire financial instrument or its components will be classified as financial liabilities upon initial recognition:

(1) There are contractual obligations that the company cannot unconditionally avoid performing by delivering cash or other financial assets;

(2) Contains the contractual obligation to deliver a variable number of its own equity instruments for settlement;

(3) Contains derivatives that are settled in its own equity (such as equity conversion, etc.), and the derivatives are not settled by exchanging a fixed number of its own equity instruments for a fixed amount of cash or other financial assets;

(4) There are contract terms that indirectly form contractual obligations;

(5) When the issuer liquidates, the perpetual bonds are in the same order of repayment as the ordinary bonds and other debts issued by the issuer.

For financial instruments such as perpetual bonds/preferred stocks that do not meet any of the above conditions, the entire financial instrument or its components will be classified as equity instruments upon initial recognition.

Income

Disclose accounting policies adopted for revenue recognition and measurement by business type

(1) Accounting policies adopted for revenue recognition and measurement

The company fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods or services, revenue is recognized. Obtaining control over relevant goods or services means being able to direct the use of the goods or services and obtain almost all economic benefits from them.

If the contract contains two or more performance obligations, the Company will allocate the transaction price to each individual performance obligation based on the relative proportion of the standalone selling price of the goods or services promised by each individual performance obligation on the contract commencement date. The Company measures revenue based on the transaction price allocated to each individual performance obligation.

Transaction price refers to the amount of consideration that the Company expects to be entitled to receive for transferring goods or services to customers, excluding amounts collected on behalf of third parties and amounts expected to be returned to customers. The company determines the transaction price based on the terms of the contract and its past practices, and when determining the transaction price, it takes into account the impact of variable consideration, significant financing components in the contract, non-cash consideration, consideration payable to customers and other factors. The Company determines transaction prices that include variable consideration at an amount that does not exceed the amount at which a significant reversal of accumulated recognized revenue is unlikely to occur when the relevant uncertainty is eliminated. If there is a significant financing component in the contract, the company determines the transaction price based on the amount payable in cash when the customer obtains control of the goods or services, and uses the effective interest method to amortize the difference between the transaction price and the contract consideration during the contract period.

If one of the following conditions is met, the performance obligation is performed within a certain period of time; otherwise, the performance obligation is performed at a certain point in 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.

②Customers can control the products under construction during the company's performance of the contract.

③The goods 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 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 or services and uses the output method or the input method to determine the progress of the contract. When the progress of contract performance cannot be reasonably determined and the costs incurred are expected to be compensated, the Company will recognize revenue based on the amount of costs incurred until the progress of contract performance can be reasonably determined.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

For performance obligations fulfilled at a certain point in time, the Company recognizes revenue at the point when the customer obtains control of the relevant goods or services. When judging whether the customer has obtained control of the goods or services, the company considers the following signs:

① The company has the current right to receive payment for the goods or services, that is, the customer has the current payment obligation for the goods or services.

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 goods or services, etc.

The Company determines whether the Company is the principal or agent when engaging in transactions based on whether it has control over the goods or services before transferring them to the customer. If the company is able to control the goods or services before transferring them to the customer, the company is the principal responsible person and recognizes revenue based on the total consideration received or receivable; otherwise, the company acts as an agent and recognizes revenue based on the amount of commissions or handling fees that it is expected to be entitled to receive.

(2) Disclose specific revenue recognition methods and measurement methods according to business type

The company sells or distributes drugs, medical devices and other products to local dealers, hospitals and pharmacies, as well as individual consumers. The company recognizes revenue when it transfers control of the goods in accordance with agreements, contracts and other provisions.

Under the consignment sales model, revenue is recognized when the consignment list is received to confirm the transfer of drug control.

The entrusted processing business will be delivered in the form of products after quality inspection and the signature and release by both quality assurance departments. After reconciliation, the processing service fee will be charged and the revenue will be recognized.

Similar business adopts different business models and involves different revenue recognition methods and measurement methods.

Contract costs

Contract costs include contract performance costs and contract acquisition costs.

If the costs incurred by the company to perform the contract do not fall within the scope of relevant standards such as inventory, fixed assets or intangible assets, they will be recognized as an asset as contract performance costs when the following conditions are met:

(1) The cost is directly related to a current or expected 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.

The incremental costs incurred by the Company to obtain the contract are expected to be recovered and are recognized as an asset as the contract acquisition cost.

Assets related to contract costs are amortized on the same basis as the revenue recognition of goods or services related to the assets; however, if the amortization period of the contract acquisition costs does not exceed one year, the company will include them in the current profits and losses when incurred.

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 factors causing impairment in the previous period subsequently change, causing the aforementioned difference to be higher than the book value of the asset, the company will reverse the impairment provision that was originally made and include it in the current profit and loss, but the book value of the asset after the reversal will not exceed the book value of the asset on the date of reversal if no impairment provision was made.

Government subsidies

(1) Type

Government subsidies are monetary assets or non-monetary assets that the company obtains from the government for free, and are divided into asset-related government subsidies and income-related government subsidies.

Asset-related government subsidies refer to government subsidies obtained by the company and used to purchase, construct or otherwise form long-term assets. Government subsidies related to income refer to government subsidies other than government subsidies related to assets.

(2) Confirmation time

Government subsidies are recognized when the company can meet the conditions attached to it and receive it.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(3) Accounting treatment

Government subsidies related to assets are offset by the book value of the relevant assets or recognized as deferred income. If it is recognized as deferred income, it will be included in the current profit and loss in installments in a reasonable and systematic manner within the useful life of the relevant assets (if it is related to the company's daily activities, it will be included in other income; if it is not related to the company's daily activities, it will be included in non-operating income);

Income-related government subsidies that are used to compensate the company for relevant costs or losses in subsequent periods are recognized as deferred income and included in the current profit and loss during the period in which the relevant costs or losses are recognized (if they are related to the company's daily activities, they are included in other income; if they are not related to the company's daily activities, they are included in operating income) Non-operating income) or offset related costs or losses; if used to compensate for the company's related costs or losses incurred, it will be directly included in the current profit and loss (if it is related to the company's daily activities, it will be included in other income; if it is not related to the company's daily activities, it will be included in non-operating income) or offset the relevant costs or losses.

The policy-based preferential loan interest discounts obtained by the company are divided into the following two situations and are accounted for separately:

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 uses the actual loan amount received as the entry value of the loan, and calculates related borrowing costs based on the loan principal and the policy preferential interest rate.
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.

Deferred income tax assets/deferred income tax liabilities

Income tax includes current income tax and deferred income tax. Except for income taxes arising from business mergers and transactions or events that are directly included in owners' equity (including other comprehensive income), the company includes current income taxes and deferred income taxes into current profits and losses.

Deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference (temporary difference) between the tax basis of assets and liabilities and their book value.

The recognition of deferred income tax assets for deductible temporary differences shall be limited to the amount of taxable income that is likely to be obtained in the future period to offset the deductible temporary differences. For deductible losses and tax credits that can be carried forward to future years, the corresponding deferred income tax assets are recognized to the extent that it is probable that the future taxable income will be used to offset the deductible losses and tax credits.

For taxable temporary differences, deferred income tax liabilities are recognized except in special circumstances.

Special circumstances in which deferred tax assets or deferred tax liabilities are not recognized include:

①Initial recognition of goodwill;

② It is neither a business merger nor a transaction or event that affects accounting profits and taxable income (or deductible losses) when it occurs, and the initially recognized assets and liabilities do not result in equal amounts of taxable temporary differences and deductible temporary differences.

Deferred income tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries, associates and joint ventures, unless the company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. For deductible temporary differences related to investments in subsidiaries, associates and joint ventures, deferred income tax assets are recognized when 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.

On the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the relevant assets are expected to be recovered or the relevant liabilities are settled in accordance with the provisions of tax laws.

On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is probable that sufficient taxable income will not be available in future periods to offset the benefits of the deferred tax assets, the carrying amount 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.

When there is a legal right to settle on a net basis and the intention is to settle on a net basis or to obtain assets and pay off liabilities at the same time, the current income tax assets and current income tax liabilities are presented at the net amount after offsetting.

On the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented as the net amount after offsetting when the following conditions are met at the same time:

① The tax payer has the legal right to settle current income tax assets and current income tax liabilities on a net basis;

② Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection and administration department on the same taxable entity or to different taxable entities. However, in each future period when important deferred income tax assets and liabilities are reversed, the taxable entity involved intends to settle the current income tax assets and liabilities on a net basis or to obtain assets and pay off liabilities at the same time.

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Leasing

(1) Accounting treatment method for leasing as lessee

Right-of-use assets

On the start date of the lease period, the Company recognizes right-of-use assets for leases other than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost. This cost includes:

①The initial measurement amount of the lease liability;

② From the lease payment amount paid on or before the start date of the lease period, if there is a lease incentive, the amount related to the lease incentive that has been enjoyed will be deducted;

③The initial direct costs incurred by the company;

④ The costs that the company expects 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 stipulated in the lease terms, but does not include costs incurred for the production of inventories.

The Company subsequently uses the straight-line method to accrue depreciation for right-of-use assets. If it is reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, the Company will accrue depreciation over the remaining useful life of the leased asset; otherwise, the company will accrue depreciation over the shorter of the lease term and the remaining useful life of the leased asset.

The company determines whether the right-of-use assets have been impaired in accordance with the principles described in "V. 30. Impairment of long-term assets" in this note, and performs accounting treatment on the identified impairment losses.

Lease liabilities

On the commencement date of the lease period, the Company recognizes lease liabilities for leases other than short-term leases and low-value asset leases. Lease liabilities are initially measured based on the present value of the lease payments that have not yet been paid. Lease payments include:

① From the fixed payment amount (including the actual fixed payment amount), if there is a leasing incentive, the amount related to the leasing incentive will be deducted;

②Variable lease payments that depend on an index or ratio;

③The amount expected to be paid based on the residual value of the guarantee provided by the company;

④The exercise price of the purchase option, provided that the company is reasonably certain that it will exercise the option;

⑤ The amount required to be paid to exercise the lease termination option, provided that the lease term reflects that the company will exercise the lease termination option.

The company uses the interest rate implicit in the lease as the discount rate, but if the interest rate implicit in the lease cannot be reasonably determined, the company's incremental borrowing rate is used as the discount rate. The company calculates the interest expense of the lease liability in each period during the lease term based on a fixed periodic interest rate, and includes it in the current profit and loss or related asset costs.

Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss or related asset costs when actually incurred.

After the start date of the lease period, if the following circumstances occur, the company will remeasure the lease liabilities and adjust the corresponding right-of-use assets. If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities still need to be further reduced, the difference will be included in the current profit and loss:

① When the evaluation results of the purchase option, lease renewal option or termination option change, or the actual exercise of the aforementioned options is inconsistent with the original evaluation results, the company will remeasure the lease liability based on the present value calculated by the changed lease payment and the revised discount rate;

② When the actual fixed payment changes, the estimated payable amount of the guaranteed residual value changes, or the index or ratio used to determine the lease payment changes, the company remeasures the lease liability based on the changed lease payment and the present value calculated at the original discount rate. However, where changes in lease payments result from changes in floating interest rates, the present value is calculated using a revised discount rate.

Short-term leasing and leasing of low-value assets

If the company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases, the relevant lease payments will be included in the current profit and loss or related asset costs on a straight-line basis in each period during the lease term. Short-term lease refers to a lease with a lease period of no more than 12 months on the start date of the lease period and does not include a purchase option. Low-value asset lease refers to a lease with a low value when the single leased asset is a new asset. If a company subleases or anticipates subletting a leased asset, the original lease does not constitute a low-value asset lease.

Lease changes

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 separate 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 changed lease payment and the revised discount rate.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

On the lease commencement date, the Company divides leases into finance leases and operating leases. Finance lease refers to a lease that substantially transfers almost all risks and rewards related to the ownership of the leased asset, regardless of whether the ownership is ultimately transferred. Operating leases refer to leases other than finance leases. When the Company acts as a sublease lessor, it classifies the sublease based on the right-of-use assets generated by the original lease.

Accounting treatment of operating leases

Lease receipts from operating leases are recognized as rental income on a straight-line basis throughout the lease term. The company capitalizes the initial direct expenses related to the operating lease and amortizes them into the current profit and loss during the lease period on the same basis as the rental income recognition. Variable lease payments that are not included in lease receipts are included in the current profit and loss when actually incurred. 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 payments received in advance or receivable related to the lease before the change will be regarded as the payment amount of the new lease.

Accounting treatment of financial lease

On the lease commencement date, the Company recognizes finance lease receivables for finance leases and terminates the recognition of finance lease assets. When the Company initially measures the financial lease receivables, it takes the net lease investment as the entry value of the financial lease receivables. The net investment in a lease is the sum of the unguaranteed residual value and the present value of the lease payments that have not yet been received at the start of the lease term, discounted at the interest rate implicit in the lease.

The Company calculates and recognizes interest income in each period during the lease term based on fixed periodic interest rates. The derecognition and impairment of finance lease receivables shall be accounted for in accordance with "V. 11. Financial Instruments" of this note.

Variable lease payments that are not included in the measurement of net lease investment are included in the current profit and loss when actually incurred.

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 adding the right to use one or more leased assets;

② The increased consideration is equivalent to the amount of the separate price of the expanded part of the lease scope adjusted according to the conditions of the contract.

If the change in the financial lease is not accounted for as a separate lease, the company will handle the changed lease under the following circumstances:

① If the change takes effect on the lease commencement date, and 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;

② If the change takes effect on the lease commencement date, the lease will be classified as a finance lease, and the company will conduct accounting treatment in accordance with the policy on modifying or renegotiating contracts in "V. 11. Financial Instruments" of this note.

Other important accounting policies and accounting estimates

(1) Sale and leaseback transactions

The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance with the principles described in "V. 37. Income" of this note.

As a lessee

If the asset transfer in a sale and leaseback transaction is a sale, the company, as the lessee, measures the right-of-use assets formed by the sale and leaseback based on the portion of the original asset's book value related to the right of use obtained through the leaseback, and only recognizes relevant gains or losses for the rights transferred to the lessor.

After the start date of the lease period, the subsequent measurement of right-of-use assets and lease liabilities and lease changes are detailed in "V. 41. Lease (1) Accounting treatment method for lessee leases" in this note. In the subsequent measurement of the lease liability formed by the sale and leaseback, the company's method of determining the lease payment or the lease payment after the change will not result in the recognition of gains or losses related to the right of use obtained from the leaseback.

If the asset transfer in a sale and leaseback transaction is not a sale, the company continues to recognize the transferred assets as the lessee, and at the same time recognizes a financial liability equal to the transfer income. For details on the accounting treatment of financial liabilities, please refer to "V. 11. Financial Instruments" of this note.

As a lessor

If the asset transfer in the sale and leaseback transaction is a sale, the company will account for the asset purchase as the lessor, and perform accounting treatment on the asset leasing in accordance with the aforementioned "V. 41 Lease (2) Accounting treatment method for the lessor's lease"; if the asset transfer in the sale and leaseback transaction is not a sale, the company will account for the asset purchase as the lessor.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The lessor does not recognize the transferred assets, but recognizes a financial asset equal to the transfer income. For details on the accounting treatment of financial assets, please refer to "V. 11. Financial Instruments" of this note.

Changes in important accounting policies and accounting estimates

(1) Changes in important accounting policies

Applicable □Not applicable

Unit: Yuan

Contents and reasons for changes in accounting policies Names of report items that are significantly affected Amount affected

Implement the provisions of the "Financial Instrument Standards Implementation Questions and Answers" on the accounting treatment related to standard warehouse receipt transactions

The Ministry of Finance issued a Q&A on the implementation of accounting treatments related to standard warehouse receipt transactions on July 8, 2025, which clearly stipulates that according to the financial instrument recognition and measurement standards, companies can earn price differences by frequently signing contracts for the purchase and sale of standard warehouse receipts in futures trading venues without withdrawing the commodities corresponding to the standard warehouse receipts. In kind, it usually indicates that the enterprise has the practice of selling the contract object again in the short term after receiving it to obtain profits from short-term fluctuations. The enterprise should regard the contract signed by it to buy and sell standard warehouse receipts as a financial instrument and conduct accounting treatment in accordance with the provisions of the recognition and measurement standards for financial instruments. If an enterprise obtains standard warehouse receipts and then sells them within a short period of time in accordance with the aforementioned contract, the sales revenue should not be recognized, but the difference between the consideration received and the book value of the standard warehouse receipts sold should be included in investment income; if the enterprise holds unsold standard warehouse receipts at the end of the period, it should be reported as other current assets.

According to the requirements of the "Notice on Strictly Implementing Accounting Standards for Business Enterprises and Effectively Providing Enterprises' 2025 Annual Reports" (Financial Accounting [2025] No. 33), if an enterprise adjusts its accounting treatment method due to the implementation of the relevant provisions of the above standard warehouse receipts, it shall make adjustments to the comparable period information in the financial statements. The implementation of this provision has not had a significant impact on the Company's financial status and operating results.

(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

Sales of goods and taxable labor calculated in accordance with tax laws

Calculate output tax based on business income, after deducting

Value-added tax 3%, 6%, 13%, 9%

After the input tax allowed to be deducted in the current period, the balance shall be

VAT payable

Urban maintenance and construction tax is calculated and paid based on the actual value-added tax paid, 7%, 5%

Corporate income tax is calculated based on taxable income 15%, 16.5%, 25%, 29.84%

Education fee surcharge is calculated and paid based on the actual value-added tax paid at 3%

Local education surcharge is calculated and paid based on the actual value-added tax paid at 2%

If there are taxpayers with different corporate income tax rates, a description of the disclosure

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Name of tax payer Income tax rate Qingdao Baiyang Pharmaceutical Co., Ltd. 25.00% Baiyang Health Industry International Trading Co., Ltd. 16.50% Baiyang Group Co., Ltd. 16.50% Nutrasumma International Health Co., Ltd. 16.50% Qingdao Nutrasumma Health Technology Co., Ltd. 25.00% Nutrasumma, Inc. 29.84% Nutrasumma (Hong Kong) Co., Ltd. 16.50% Qingdao Baiyang Zhicheng Pharmaceutical Technology Development Co., Ltd. 25% 25.00% Baiyang Technology Overseas Trading Co., Ltd. 16.50% Qingdao Dongyuan Biotechnology Co., Ltd. 25.00% Beijing Baiyang Dongyuan Biotechnology Co., Ltd. 25.00% Qingdao Zhiliao Health Technology Co., Ltd. 25.00% Qingdao Baiyang Pharmaceutical Logistics Co., Ltd. 25.00% Jiangxi Baiyang Pharmaceutical Co., Ltd. 25.00% Tianjin Baiyang Pharmaceutical Co., Ltd. 25.00% Shandong Baiyang Pharmaceutical Technology Co., Ltd. 25% 25% 25% With each partner as a taxpayer, it is not involved in the collection of corporate income tax. Tianjin Juntai Technology Development Partnership (Limited Partnership) With each partner as a taxpayer, it is not involved in the collection of corporate income tax. Qingdao Baiyang Yiren Investment Management Co., Ltd. 25.00% Baiyang Pharmaceutical (Hunan) Co., Ltd. 25.00% Baiyang Pharmaceutical Medical Technology (Hunan) Co., Ltd. 25.00% Baiyang Pharmaceutical Biotechnology (Hunan) Co., Ltd. 25%

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Tax incentives

(1) Preferential corporate income tax policies

① According to the "Announcement on Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" (Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation, 2023), small and low-profit enterprises will be subject to a 25% reduction in taxable income calculation and a corporate income tax policy of 20%, which will continue to be implemented until December 31, 2027. According to the above policies, the 27 companies mentioned in the remarks in VI. Taxes, 1. Main tax categories and tax rates will enjoy preferential corporate income tax policies for small and micro enterprises in 2025. ② Shanghai Baiyang Pharmaceutical Technology Co., Ltd. obtained a high-tech enterprise certificate (valid for three years) jointly recognized by the Shanghai Municipal Science and Technology Commission, Shanghai Municipal Finance Bureau, and Shanghai Taxation Bureau of the State Administration of Taxation on November 15, 2023. The high-tech enterprise approval certificate number is GR202331000323, valid for three years, and enjoys the 15% preferential corporate income tax rate for high-tech enterprises. According to the relevant provisions of the national high-tech enterprise income tax preferential policies, the company's corporate income tax in 2025 will be calculated and paid at 15% of the taxable income.

③ Qingdao Baiyang Pharmaceutical Co., Ltd. obtained a high-tech enterprise certificate (valid for three years) jointly recognized by the Qingdao Municipal Science and Technology Bureau, Qingdao Municipal Finance Bureau, and Qingdao Municipal Taxation Bureau of the State Administration of Taxation on November 29, 2023. The high-tech enterprise approval certificate number is GR202337102129, valid for three years, and enjoys the 15% preferential corporate income tax rate for high-tech enterprises. According to the relevant provisions of the national high-tech enterprise income tax preferential policies, the company's corporate income tax in 2025 will be calculated and paid at 15% of the taxable income.

④ According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China, the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China, and the Announcement on the Implementation of Enterprise Income Tax Preferential Issues for Agricultural, Forestry, Animal Husbandry, and Fishery Projects (State Administration of Taxation Announcement No. 48 of 2011), Anhui Zhihetang Pharmaceutical Co., Ltd.'s main business is the primary processing of agricultural products, and it is exempt from income tax for agricultural, forestry, animal husbandry, and fishery projects.

⑤ According to the "Announcement on Further Improving the Pre-tax Super Deduction Policy for R&D Expenses" (Announcement No. 7 of the Ministry of Finance and the State Administration of Taxation in 2023), starting from January 1, 2023, if the actual R&D expenses incurred by the enterprise in carrying out R&D activities do not form intangible assets and be included in the current profits and losses, on the basis of actual deductions in accordance with regulations, 100% of the actual amount will be super-deducted before tax; if they form intangible assets, they will be amortized before tax at 200% of the cost of the intangible assets. According to the above policy, Shanghai Baiyang Pharmaceutical Technology Co., Ltd. and Qingdao Baiyang Pharmaceutical Co., Ltd. enjoyed this preferential policy during the reporting period.

(2) Value-added tax preferential policies

According to Article 15(2) of the "Interim Regulations of the People's Republic of China on Value-Added Tax", the sales of contraceptives and appliances are exempt from VAT.

According to Article 1 of the "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementing the "Six Taxes and Two Fees" Reduction and Reduction Policy for Small and Micro Enterprises" (Announcement No. 10 of the Ministry of Finance and the State Administration of Taxation in 2022): Small-scale value-added tax taxpayers, small low-profit enterprises and individual industrial and commercial households can be exempted from resource tax, urban maintenance and construction tax, real estate tax, urban land use tax, stamp tax (excluding securities transaction stamp tax), cultivated land occupation tax and education surcharge, and local education surcharge within a 50% tax range.

According to Articles 2 and 3 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Tax Policy Issues Regarding Value-Added Tax" (Caishuizi [1994] No. 60): Articles specially designed for persons with disabilities are exempt from VAT. The exemption period is from April 1, 2018 to March 31, 2028.

Others

7. Notes on Consolidated Financial Statement Items

Monetary funds

Unit: Yuan

Item Ending balance Beginning balance

Cash on hand 96,907.87 38,841.16 Bank deposits 1,887,530,859.55 1,143,596,949.21 Other monetary funds 249,818,066.70 323,767,430.09 Total 2,137,445,834.12 1,467,403,220.46

Including: Total amount deposited abroad 171,987,272.87 169,583,487.73 Other instructions:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Trading financial assets

Unit: Yuan

Item Ending balance Beginning balance

Measured at fair value with changes included in current profit and loss

264,459,992.60 44,989,893.93 beneficial financial assets

Among them:

Including: Equity instrument investment 264,459,992.60 44,989,893.93 Including:

Total 264,459,992.60 44,989,893.93Other instructions:

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 67,825,860.27 82,845,817.83 Commercial acceptance notes 31,965,440.49 33,151,013.43 Bad debt provisions -20,524.78 -19,810.95 Total 99,770,775.98 115,977,020.31

(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

99,791, 20,524. 99,770, 115,996 19,810. 115,977Account provision 100.00% 0.02% 100.00% 0.02%

300.76 78 775.98, 831.26 95, 020.31 receivables

bill

its

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Medium:

67,825, 67,825, 82,845, 82,845, combination C 67.97% 71.42%

860.27 860.27 817.83 817.83 31,965, 20,524. 31,944, 33,151, 19,810. 33,131, Combination A 32.03% 0.06% 28.58% 0.06%

440.49 78 915.71 013.43 95 202.48 99,791, 20,524. 99,770, 115,996 19,810. 115,977Total 100.00% 100.00%

300.76 78 775.98 ,831.26 95 ,020.31 Provision for bad debts based on combination:

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Combination C 67,825,860.27

Portfolio A 31,965,440.49 20,524.78 0.06% Total 99,791,300.76 20,524.78

Description of what this combination is based on:

Provision for bad debts by group:

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

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

Portfolio A 19,810.95 20,524.78 19,810.95 20,524.78Total 19,810.95 20,524.78 19,810.95 20,524.78 Among them, the amount of bad debt provision recovery or reversal in 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

(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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Bank acceptance notes 28,022,594.78 Total 28,022,594.78

(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

Instructions for writing off notes receivable resulting from transactions:

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) 1,344,226,622.20 1,764,619,014.49 1 to 2 years 110,633,272.18 121,799,791.04 2 to 3 years 37,348,223.33 38,104,827.66 More than 3 years 22,146,789.13 10,784,068.01 3 to 4 years 13,596,564.52 1,748,661.00 4 to 5 years 1,132,510.58 6,801,281.24

More than 5 years 7,417,714.03 2,234,125.77 Total 1,514,354,906.84 1,935,307,701.20

(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

Among them:

by combination

Bad provision 1,514,3 1,455,9 1,935,3 1,884,5

58,452, 50,770,

Account provision 54,906. 100.00% 3.86% 02,894. 07,701. 100.00% 2.62% 37,311.

012.77 389.71

Accounts receivable 84 07 20 49

Among them:

1,501,3 58,452, 1,442,9 1,922,1 50,770, 1,871,4 Combination A 99.14% 3.89% 99.32% 2.64%

97,254. 012.77 45,241. 79,308. 389.71 08,918. Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

31 54 40 69 12,957, 12,957, 13,128, 13,128, combination C 0.86% 0.68%

652.53 652.53 392.80 392.80 1,514,3 1,455,9 1,935,3 1,884,5 58,452, 50,770,

Total 54,906. 100.00% 3.86% 02,894. 07,701. 100.00% 2.62% 37,311. 012.77 389.71

84 07 20 49 Provision for bad debts by group: 58,452,012.77

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 1,501,397,254.31 58,452,012.77 3.89% Portfolio C 12,957,652.53

Total 1,514,354,906.84 58,452,012.77

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 Opening balance Ending balance Provision Recovery or transfer Write-off Others

50,770,389.7 25,292,113.3 17,370,347.1 58,452,012.7 Combination A 240,143.18

1 7 3 7 50,770,389.7 25,292,113.3 17,370,347.1 58,452,012.7Total 240,143.18

1 7 3 7 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 240,143.18 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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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 amount Value provision closing balance Qingdao Municipal Hospital 128,551,204.15 128,551,204.15 8.49% 642,756.03 Yangzhou Yiyang Pharmaceutical Co., Ltd.

96,747,396.41 96,747,396.41 6.39% 483,736.98 Co., Ltd.

Affiliated Hospital of Qingdao University

83,826,356.26 83,826,356.26 5.54% 419,131.78 Hospital

Sinopharm Holdings Co., Ltd. has

82,207,195.09 82,207,195.09 5.43% 481,384.30 Co., Ltd.

Jiuzhoutong Pharmaceutical Group

37,520,534.18 37,520,534.18 2.48% 205,231.34 Co., Ltd.

Total 428,852,686.09 428,852,686.09 28.33% 2,232,240.43

Contract assets

(1) Contract assets

Unit: Yuan

Ending balance Beginning balance

Project

Book balance Provision for bad debts Book value Book balance Provision for bad debts Book value

(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 Example

Among them:

Provision for bad debts based on the general expected credit loss model

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(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

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

transaction generated

Instructions for write-off of contract assets:

Other notes:

Accounts receivable financing

(1) Classified presentation of financing receivables

Unit: Yuan Item Ending balance Beginning balance

Notes receivable 404,172,992.32 215,387,955.19 Total 404,172,992.32 215,387,955.19

(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

Among them:

Provision for bad debts based on the general expected credit loss model

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

Explanation of significant changes in the book balance of accounts receivable financing that have experienced changes in loss provisions in the current period:

(3) 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:

(4) Financing of the company’s pledged receivables at the end of the period

Unit: Yuan Project Amount pledged at the end of the period

(5) Financing of receivables 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

Notes receivable 306,432,845.21

Total 306,432,845.21

(6) Financing of receivables actually written off in the current period

Unit: yuan item write-off amount

Important financing write-offs of receivables

Unit: Yuan Unit name Nature of the payment Amount written off Reason for write-off Written-off procedures performed Whether the payment is from a related party Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Instructions for writing off transactions:

(7) Increases and decreases in receivables financing during the current period and changes in fair value

The accumulated balance in other comprehensive income at the end of the previous year is derecognized in the current period. Other changes

Item New addition in this period (yuan) Ending balance (yuan) Yizhong (yuan) (yuan) (yuan)

Recognized loss provision receivable

215,387,955.19 1,477,925,933.53 1,289,970,254.15 829,357.75 404,172,992.32

bill

Total 215,387,955.19 1,477,925,933.53 1,289,970,254.15 829,357.75 404,172,992.32

(8) Other instructions

Other receivables

Unit: Yuan Item Ending balance Beginning balance

Other receivables 76,441,016.74 161,577,496.67 Total 76,441,016.74 161,577,496.67

(1) Interest receivable

Classification of interest receivable

Unit: Yuan Item Ending balance Beginning balance

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:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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) Ending balance Beginning balance

Important dividends receivable aged more than 1 year

Unit: Yuan Whether impairment occurs and the judgment item (or invested unit) Closing balance Aging Reason for non-recovery

Judgment basis

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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:

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

transaction generated

Write-off instructions:

Other notes:

(3) Other receivables

Classification of other receivables according to nature of payment

Unit: yuan Nature of payment Ending book balance Beginning book balance

Current accounts 127,172,139.14 Payment for disposal of equity 27,461,562.80

Security deposits and deposits 39,435,575.18 25,201,431.11 Reserve funds 2,224,853.52 503,156.53 Others 11,156,871.72 12,840,319.44 Total 80,278,863.22 165,717,046.22

Disclosure based on aging

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical 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) 53,121,840.13 139,778,638.33 1 to 2 years 5,010,559.86 5,569,069.71 2 to 3 years 4,120,741.35 3,466,962.65 More than 3 years 18,025,721.88 16,902,375.53 3 to 4 years 2,812,508.00 2,702,972.59 4 to 5 years 1,699,193.84 6,110,637.45

More than 5 years 13,514,020.04 8,088,765.49 Total 80,278,863.22 165,717,046.22

Classified disclosure according to bad debt accrual method

Applicable □Not applicable

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

Among them:

by combination

80,278, 3,837,8 76,441, 165,717 4,139,5 161,577 Bad provision 100.00% 4.78% 100.00% 2.50%

863.22 46.48 016.74, 046.22 49.55, 496.67 Account preparation

Among them:

10,724, 3,837,8 6,886,4 139,526 4,139,5 135,386 Combination A 13.36% 35.79% 84.20% 2.97%

246.80 46.48 00.32 ,377.90 49.55 ,828.35

39,435, 39,435, 25,201, 25,201, Portfolio B 49.12% 15.21%

661.69 661.69 431.11 431.11

30,118, 30,118, 989,237 989,237 Combination C 37.52% 0.59%

954.73 954.73 .21 .21

80,278, 3,837,8 76,441, 165,717 4,139,5 161,577Total 100.00% 4.78% 100.00% 2.50%

863.22 46.48 016.74, 046.22 49.55, 496.67 Provision for bad debts on a group basis: 3,837,846.48

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 10,724,246.80 3,837,846.48 35.79% Portfolio B 39,435,661.69

Combination C 30,118,954.73

Total 80,278,863.22 3,837,846.48

Description of what this combination is based on:

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Balance on January 1, 2025 1,093,876.25 3,045,673.30 4,139,549.55 Balance on January 1, 2025

In this issue

——Transfer to the third stage -185,310.64 185,310.64

Provision in this period 331,740.56 185,310.64 517,051.20 Transfer in this period 761,819.97 56,934.30 818,754.27 Remainder as of December 31, 2025

663,796.84 3,174,049.64 3,837,846.48 amount

Basis for division of 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 Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Portfolio A 4,139,549.55 517,051.20 818,754.27 3,837,846.48 Total 4,139,549.55 517,051.20 818,754.27 3,837,846.48

Among them, the amount of bad debt provision for the current period that is reversed or recovered 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

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:

Other receivables with the top five closing balances based on debtors

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Account for other receivable periods

Name of the unit with the ending balance of bad debt provision Nature of the payment Ending balance Aging Total ending balance

Proportion

Beijing Baiyang Family Health

Payment for disposal of equity 27,461,562.80 Within 1 year 34.21%

Management Co., Ltd.

Beijing Huake Pioneer Hospital

Security deposit and deposit 12,979,893.95 Within 1 year 16.17%

Medical Equipment Co., Ltd.

Shanghai Anbisheng Pharmaceutical

Security deposit and deposit 4,000,000.00 More than 3 years 4.98%

Technology Co., Ltd.

Bei'an Street, Jimo District

Security deposit and deposit 3,000,000.00 More than 3 years 3.74%

Office

Qingdao Bodhisattva Medical Clinic

Others 2,657,391.93 Within 1 year, 1-2 years 3.31%

Scientific Inspection Co., Ltd.

Total 50,098,848.68 62.41%

Presented in other receivables due to centralized management of funds

Unit: Yuan Other instructions:

Advance payment

(1) Prepayments are listed based on aging

Unit: Yuan Closing balance Opening balance Aging

Amount Proportion Amount Proportion Within 1 year 176,631,410.88 82.39% 182,514,921.69 86.33% 1 to 2 years 20,577,181.70 9.60% 16,987,260.14 8.03% 2 to 3 years 9,040,223.21 4.22% 4,516,843.69 2.14% More than 3 years 8,124,245.41 3.79% 7,397,545.03 3.50% Total 214,373,061.20 211,416,570.55

Explanation of the reasons why prepayments with an aging of more than 1 year and important amounts are not settled in a timely manner:

(2) Prepayments with the top five closing balances by prepayment objects

Accounting for the total closing balance of prepayments Prepayment objects Closing balance (yuan)

Proportion (%)

Jiangxi Sinopharm Co., Ltd. 13,661,416.00 6.37 Alipay Financial Services (HK) Limited 12,257,439.63 5.72 Zhengda Qingchunbao Pharmaceutical Co., Ltd. 10,906,850.00 5.09 COSMAXNBT, INC. 10,342,825.10 4.82 Hong Kong Micro Circle Media Co., Ltd. 8,451,500.01 3.94

Total 55,620,030.74 25.94

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other notes:

Inventory

Whether the company needs to comply with the real estate industry’s disclosure requirements

(1) Inventory classification

Unit: Yuan Ending balance Beginning balance

Provision for inventory decline Provision for inventory decline

Project

Book balance or contract performance costs Book value Book balance or contract performance costs Book value

This impairment provision This impairment provision

158,354,040. 156,727,019. 124,892,039. 123,079,335. Raw materials 1,627,020.80 1,812,703.92

41 61 56 64 66,418,860.1 66,418,860.1 23,533,365.2 23,177,803.0Product in progress 355,562.19

4 4 1 2 693,444,008. 22,403,725.8 671,040,282. 791,705,721. 11,981,629.1 779,724,092. Inventory goods

14 9 25 79 8 61 Consigned goods 1,659,940.57 271,602.52 1,388,338.05 1,966,075.48 194,191.06 1,771,884.42 919,876,849. 24,302,349.2 895,574,500. 942,097,202. 14,344,086.3 927,753,115.Total

26 1 05 04 5 69

(2) Data resources confirmed as inventory

Unit: Yuan

Self-processed data resources Data obtained through other means

Item Outsourced data resource inventory Total

Inventory Resource Inventory

(3) Provision for inventory depreciation and provision for impairment of contract performance costs

Unit: Yuan

Increase amount in this period Decrease amount in this period

Item Beginning balance Closing balance

Provision Others Reversal or write-off Others

Raw materials 1,812,703.92 81,477.91 267,161.03 1,627,020.80 Products in progress 355,562.19 355,562.19

11,981,629.1 43,705,367.4 33,283,270.7 22,403,725.8 Inventory products

8 9 8 9 Consigned goods 194,191.06 77,411.46 271,602.52 14,344,086.3 43,864,256.8 33,905,994.0 24,302,349.2Total

5 6 0 1

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Provision for inventory decline in value on a group basis

Unit: End of the period Beginning of the period

Portfolio name Provision for decline in price Provision for decline in price Provision for decline in price Closing balance Provision for decline in price Opening balance Provision for decline in price

Proportion Proportion The standard for accruing inventory depreciation provisions based on the combination

(4) Explanation that the closing balance of inventory includes the capitalized amount of borrowing costs

(5) Explanation of the amortization amount of contract performance costs for the current period

Assets held for sale

Unit: Yuan

Item Book balance at the end of the period Impairment provision Book value at the end of the period Fair value Estimated disposal costs Estimated disposal time Other instructions:

Non-current assets due within one year

Unit: Yuan

Item Ending balance Beginning balance

(1) Debt investments due within one year

□Applicable Not applicable

(2) Other debt investments due within one year

□Applicable Not applicable

Other current assets

Unit: Yuan

Item Ending balance Beginning balance

Prepaid corporate income tax 204,278.52 51,271,884.62 Input tax to be certified and deducted 168,111,716.93 28,450,758.95 Prepaid expenses 1,254,879.07 1,267,002.99 Input tax to be transferred 940,671.68 Others 1,029.71 2,577.97Total 169,571,904.23 81,932,896.21Other instructions:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Debt investment

(1) Situation of debt investment

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value Debt investment impairment provision Changes in the current period

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance

(2) Important debt investments at the end of the period

Unit: Yuan Ending balance Beginning balance

claims

Coupon interest Actual interest Overdue principal Coupon interest Actual interest Overdue principal Face value Maturity date Face value Maturity date

rate rate gold rate rate gold

(3) Provision of impairment provisions

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Bad debt provision Expected total credit losses in the next 12 months (no credit deductions have occurred Losses (credit deductions have occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

(4) Debt investment actually written off in this period

Unit: yuan item write-off amount

Among them, the important write-off of debt investment

Debt investment write-off instructions:

Changes in book balances with significant changes in loss provision during the current period

□Applicable Not applicable

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other debt investments

(1) Situation of other debt investments

Unit: yuan accumulated in its

He comprehensively collects

Fair for the current period Fair for the cumulative period

Item Opening balance Accrued interest Interest adjustment Closing balance Cost Recognition in profit Remarks Value changes Value changes

impairment standard

Prepare

Changes in impairment provisions for other debt investments during the current period

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance

(2) Other important debt investments at the end of the period

Unit: Yuan Ending balance Beginning balance

Other debts

Coupon interest Actual interest Overdue capital Coupon interest Actual interest Overdue capital items Face value Maturity date Face value Maturity date

rate rate gold rate rate gold

(3) Provision of impairment provisions

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Bad debt provision Expected total credit losses in the next 12 months (no credit deductions have occurred Losses (credit deductions have occurred)

loss

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

(4) Other debt investments actually written off in the current period

Unit: yuan item write-off amount

Among them, the write-off of other important debt investments

Changes in book balances with significant changes in loss provision during the current period

□Applicable Not applicable

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Investment in other equity instruments

Unit: Yuan Designated as fair value included in the current period Included in the current period Accumulated at the end of the period Accumulated at the end of the period

Recognized and measured in the current period and its other comprehensive Other comprehensive accounting is included in its Other comprehensive accounting is included in its

Item name Ending balance Beginning balance Dividend income Changes included in income Loss of income Other comprehensive income Other comprehensive income

Income Other comprehensive gains and losses Gains and losses

original income

Because

There is termination confirmation in this period

Unit: yuan Project name Accumulated gains transferred to retained earnings Accumulated losses transferred to retained earnings Reasons for derecognition

Disclosure of non-trading equity instrument investments in the current period by items

Unit: Yuan designated as fair

Other comprehensive income Dividend income measured in value and recognized in other comprehensive income

Project name Accumulated profits Accumulated losses Transfer to retained earnings Changes are included in other Transfer to retained earnings

The amount of comprehensive income is due to

Other notes:

Long-term receivables

(1) Long-term receivables

Unit: Yuan Ending balance Beginning balance

Item Discount rate range Book balance Bad debt provision Book value Book balance Bad debt provision Book value

(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

Among them:

Provision for bad debts based on the general expected credit loss model

Unit: Yuan Phase 1 Phase 2 Phase 3

Bad debt provision Expected credit for the next 12 months Expected credit for the entire duration Expected credit for the entire duration Total

Loss Loss (no credit deduction has occurred Loss (credit deduction has occurred)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

value) value)

Balance as of January 1, 2025

In this issue

Basis for division of each stage and provision ratio for bad debts

(3) 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 Others

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

Other notes:

(4) Long-term receivables actually written off in the current period

Unit: yuan item write-off amount

Among them, the important write-off situation of long-term receivables:

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

Instructions for writing off long-term receivables:

Long-term equity investment

Unit: Yuan Increase or decrease in the current period

Beginning of period Equity declaration End of period

Impairment Impairment investment balance Other disbursement balance under the law

Preparation Other Provisions Provision Notes (Account Addition Decrease Confirmation Comprehensive Cash (Account

Equity Impairment at the Beginning of the Period Others Ending of the Period Face Price Investment Investment Income from Investment Dividends Face Price

Balance Change Provision Balance Value) Capital Loss Adjustment or Profit Value)

profit

1. Joint ventures

2. Joint ventures

Oz 255,1 42,33 - 4,967 - 288,1

Pharmaceutical 23,07 1,157 1,582 ,865. 2,792 10,83

(1.45.07,686.00,843.3.32

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Mountain) 81 39 Limited

company

Japan and the United States

health medicine

Products 9,374 9,277

126,7 223,9(中,215.,034.

75.08 56.00 country) 24 32 limited

company

Beijing

Five Dimensions -

46,45 8,308 43,88

Conke 2,571

3,360,125. 1,838

Skills, 521.

.00 91 .41

Limited company 59 companies

Shanghai

Traditional Chinese Medicine

Dayuan 1,031 -

990,9 Innovation and Technology ,200. 40,26

31.35 Tech 90 9.55 Public only

Division

Beijing

city gate

Tougou

District Bai

Western medicine -

24,14 50,00 73,01Pharmaceuticals 1,131

4,150 0,000 3,019 Industrial Investment ,130.

.07 .00 .35 capital 72 gold

(Yes

Limited combination

Guy)

Langfang

Rinku

Baiyang

Equity

Investment 28,98 30,00 - 58,58Fund 5,993 0,000 397,2 8,775Partnership .86 .00 18.35 .51Enterprise

(Yes

Limited combination

Guy)

Langfang

Rinku

Baiyang

Huixin

Equity

46,00 - 45,20 investment

0,000 798,4 1,546Fund

.00 53.73 .27Partnership

enterprise

(Yes

Limited combination

Guy)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Tianjin

Jikun

66,00 - 65,04Pharmaceutical

0,000 958,9 1,012Technology

.00 87.52 .48 Limited

company

Zap

Medic - -

362,5 18,56 346,8 al 29,36 4,895

12,42 6,540 16,31 System 7,424 ,230.

5.52 .07 0.73 m, .74 12

Ltd

727,6 8,308 192,0 43,88 7,192 16,98 5,191 887,0

4,895 2,792

Subtotal 24,41 ,125. 00,00 1,838 ,925. 3,853 ,821. 39,46

,230. ,843.

7.04 91 0.00 .41 95 .26 00 3.33 12 39

727,6 8,308 192,0 43,88 7,192 16,98 5,191 887,0

4,895 2,792

Total 24,41 ,125. 00,00 1,838 ,925. 3,853 ,821. 39,46

,230. ,843.

7.04 91 0.00 .41 95 .26 00 3.33

12 39

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

Unit: Yuan stable period

Years of the forecast period Off of the forecast period Off of the stable period

Item Carrying value Recoverable amount Impairment amount Limit of key parameter Key parameter Key parameter

Reasons for the obvious inconsistency between the aforementioned information and the information used for 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 Closing balance Opening balance is measured at fair value and its changes are included in the current profit and loss

14,736,794.88 15,000,000.00 financial assets

Total 14,736,794.88 15,000,000.00Other instructions:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Investment real estate

(1) Investment real estate using cost measurement model

Applicable □Not applicable

Unit: Yuan

Projects Houses and buildings Land use rights Construction in progress Total

1. Original book value

Balance at the beginning of the period 3,110,886.00 3,110,886.00 2. Increase in the current period

(1) Outsourcing

(2) Inventory\

Fixed assets\construction in progress transfer

enter

(3) Enterprise cooperation

and increase

Reduction amount in this period

(1) Disposal

(2) Other transfers

out

Closing balance 3,110,886.00 3,110,886.00

2. Accumulated depreciation and accumulation

Amortization

Balance at the beginning of the period 1,783,177.82 1,783,177.82 2. Increased amount in the current period 98,511.36 98,511.36 (1) Provision or

98,511.36 98,511.36 Amortization

Reduction amount in this period

(1) Disposal

(2) Other transfers

out

Ending balance 1,881,689.18 1,881,689.18

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

(2) Other transfers

out

Ending balance

4. Book value

Book value at the end of the period 1,229,196.82 1,229,196.82 2. Book value at the beginning of the period 1,327,708.18 1,327,708.18 The recoverable amount is determined based on the net amount of fair value minus disposal costs.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

□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:

(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 685,215,804.55 535,910,126.42 Total 685,215,804.55 535,910,126.42

(1) Fixed assets

Unit: Yuan

Items Houses and buildings Machinery and equipment Transportation equipment Electronic equipment Office equipment Total

1. Original books

Value:

Balance at the beginning of the period 504,281,331. 366,034,233. 17,744,737.4 35,882,797.3 31,304,987.9 955,248,088. Amount 93 77 1 1 9 41 2. Increase in this period 104,124,747. 100,673,971. 213,739,027.

492,022.95 5,461,872.21 2,986,413.33

Add amount 77 37 63

(1 14,402,137.9 492,022.95 5,461,872.21 1,206,034.44 21,562,067.5

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

) Purchase 6 6 (2

104,124,747. 86,271,833.4 192,176,960.) Construction in progress 1,780,378.89

77 1 07 in

) Business merger increases

add

Less for the current period 11,662,331.7 16,365,617.2

954,430.08 2,307,819.19 1,441,036.23

Small amount 9 9 (1 11,662,331.7 16,365,617.2

954,430.08 2,307,819.19 1,441,036.23

) Disposal or scrap 9 9

Ending balance 608,406,079. 455,045,873. 17,282,330.2 39,036,850.3 32,850,365.0 1,152,621,49 70 35 8 3 9 8.75

2. Accumulated depreciation

Balance at the beginning of the period 175,360,850. 192,468,053. 13,290,624.4 14,008,706.2 24,209,727.6 419,337,961. Amount 02 64 4 9 0 99 2. Increase in this period 17,929,512.6 34,482,933.5 62,929,049.0

1,787,420.29 6,758,241.47 1,970,941.13

Added amount 4 1 4 (1 17,929,512.6 34,482,933.5 62,929,049.0

1,787,420.29 6,758,241.47 1,970,941.13

) Provision 4 1 4 3. Less for the current period 10,385,608.1 14,861,316.8

916,388.65 2,185,807.61 1,373,512.39

Small amount 8 3 (1 10,385,608.1 14,861,316.8

916,388.65 2,185,807.61 1,373,512.39

) Disposal or scrap 8 3

Ending balance 193,290,362. 216,565,378. 14,161,656.0 18,581,140.1 24,807,156.3 467,405,694. Amount 66 97 8 5 4 20

3. Impairment provision

Balance at the beginning of the period

2.Increase in this period

Add amount

) accrual

Less for this period

small amount

) disposal or scrapping

End of period balance

4. Book value

Closing accounts 415,115,717. 238,480,494. 20,455,710.1 685,215,804.

3,120,674.20 8,043,208.75

Face value 04 38 8 55 2. Opening account 328,920,481. 173,566,180. 21,874,091.0 535,910,126.

4,454,112.97 7,095,260.39

Face value 91 13 2 42

(2) Temporarily idle fixed assets

Unit: Yuan Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report Full Text 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 Reasons for not completing the property rights certificate

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

Construction in progress 67,687,971.12 152,262,124.97 Total 67,687,971.12 152,262,124.97 (1) Construction in progress

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value 67,687,971.1 67,687,971.1 152,262,124. 152,262,124. Construction in progress

2 2 97 97 67,687,971.1 67,687,971.1 152,262,124. 152,262,124.Total

2 2 97 97 (2) Changes in important construction projects during the current period

Unit: Yuan Project Budget Beginning of Period This Period This Period This Period End of Period Project Project Interest Other Current Period Funding Source

Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report Full Text Name Number Balance Increase Transfer to Other Balance Accumulated Progress Capital Among: Interest Amount Fixed Decrease Investment Accumulated Current Period Capital Asset Amount Accounted for Estimated Funds Interest Conversion Rate Amount Calculated Ratio Amount Capital

Example of gold

Baiyang

20,0 15,4

Business 8,21 7,28

00,0 96,2 77.4

Capacity 5,21 0,99 100% raised funds, self-raised funds

00.0 10.2 8%

Platform 0.66 9.61

0 7

Six issues

190, 118, 63,8 178,

New 3,91 1,44 280,

000, 713, 38,9 642, 96.6 96.6 0.31Factory 0,33 9,05 657. Self-raised funds

1. 91.7 035. 9% 9% % project 2.52 6.00 33

00 66 9 93

210, 126, 71,1 194,

3,91 1,44 280,

000, 928, 19,9 138,

Total 0,33 9,05 657.

1. 91.4 246.

2.52 6.00 33

00 32 0 20

(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 Closing balance Other explanations for the reasons for provision:

(4) Impairment testing of projects under construction

□Applicable Not applicable

(5) Engineering materials

Unit: Yuan Closing balance Beginning balance item

Book balance Impairment provision Book value Book balance Impairment provision Other instructions for book value:

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(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 170,992,679.51 170,992,679.51 2. Increase in the current period 43,540,441.02 43,540,441.02 — New leases 43,540,441.02 43,540,441.02 3. Decrease in the current period 9,478,263.84 9,478,263.84 —Disposal 9,478,263.84 9,478,263.84 4. Closing balance 205,054,856.69 205,054,856.69

2. Accumulated depreciation

Balance at the beginning of the period 48,511,159.48 48,511,159.48 2. Increase in the current period 33,005,103.87 33,005,103.87

(1) Provision 33,005,103.87 33,005,103.87 3. Decrease amount in the current period 9,026,157.55 9,026,157.55

(1) Disposal 9,026,157.55 9,026,157.55 4. Closing balance 72,490,105.80 72,490,105.80

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 132,564,750.89 132,564,750.89 2. Book value at the beginning of the period 122,481,520.03 122,481,520.03

(2) Impairment testing of right-of-use assets

□Applicable Not applicable

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Intangible assets

(1) Intangible assets

Unit: Yuan trademark/author

Project Land use rights Patent rights Non-patented technology Software Business license rights Total

right

1. Original books

value

Beginning of the period 71,585,462 2,926,047. 23,987,368 148,407,24 47,169,811 294,259,28

183,355.50

Balance .29 16 .40 2.91 .32 7.58 2. Current period 23,157,254 23,175,175

17,920.79

Increase amount .50 .29 (23,157,254 23,175,175

17,920.79

Purchase .50 .29

(

Internal research

send

(

Enterprise cooperation

and increase

This period 20,323,168 20,871,650

13,425.76 535,056.44

Reduction amount .40 .60 (20,323,168 20,871,650

13,425.76 535,056.44

Disposal .40 .60 4. End of period 71,585,462 2,912,621. 3,664,200. 171,029,44 47,169,811 296,562,81

201,276.29

Balance .29 40 00 0.97 .32 2.27

2. Accumulated amortization

Beginning of the period 17,036,802 2,921,423. 23,975,188 22,660,888 66,669,346

75,042.88

Balance .47 20 .73 .80 .08 2. Current period 1,519,396. 16,853,469 4,716,981. 23,126,318

-389.56 1,196.45 35,664.60

Increase amount 56.30 12.47 (1,519,396. 16,853,469 4,716,981. 23,126,318

-389.56 1,196.45 35,664.60

Provision 56.30 12.47 3. Current period 20,312,197 20,754,879

8,412.24 434,269.89

Reduction amount .78 .91 (20,312,197 20,754,879

8,412.24 434,269.89

Disposal .78 .91 4. End of period 18,556,199 2,912,621. 3,664,187. 39,080,088 4,716,981. 69,040,784

110,707.48

Balance .03 40 40 .21 12 .64

3. Impairment standard

Prepare

Beginning of the period

balance

2.This issue

increase amount

(

Provision

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

3.This issue

reduce amount

(

Disposal

4.End of term

balance

4. Book price

value

End of period 53,029,263 131,949,35 42,452,830 227,522,02

12.60 90,568.81

Book value .26 2.76 .20 7.63 2. Beginning of the period 54,548,659 125,746,35 47,169,811 227,589,94

4,623.96 12,179.67 108,312.62

Book value .82 4.11 .32 1.50

The proportion of intangible assets formed through the company's internal research and development at the end of the current period to 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 Reason for not completing the property rights certificate

Other notes:

(4) Impairment testing of intangible assets

□Applicable Not applicable

Goodwill

(1) Original book value of goodwill

Unit: yuan Name of invested unit Increase in this period Decrease in this period

Goodwill is called or formed. Opening balance Formed by business combination Disposal of closing balance

matters of

Shanghai Baiyang Pharmaceutical 106,900,523. 106,900,523. Co., Ltd. 05 05 Qingdao Newtsuma

Health Technology Co., Ltd. 661,309.27 661,309.27 Company

Tianjin Baiyang Pharmaceutical

33,449.89 33,449.89 Co., Ltd.

Anhui Zekang Medical

4,891,004.31 4,891,004.31 Technology Co., Ltd.

112,486,286. 112,486,286.Total

52 52Full text of Qingdao Baiyang Pharmaceutical Co., Ltd.’s 2025 annual report

(2) Goodwill impairment provision

Unit: yuan Name of invested unit Increase in this period Decrease in this period

Goodwill is called or formed. Balance at the beginning of the period. Balance at the end of the period. Provision for disposal.

matters

total

(3) Relevant information about the asset group or asset group combination where the goodwill is located

The composition of the asset group or portfolio to which it belongs and

Name, operating segment and basis. Is the basis consistent with previous years?

Main business operating assets formed

Shanghai Baiyang Pharmaceutical Co., Ltd. Asset group, including fixed assets, none Mainly responsible for the production and sales of drugs Yes

tangible assets and other long-term assets

Because it mainly sells NutraSuma whey

Qingdao Nutsuma Health Technology Co., Ltd. mainly sells Nutsuma whey protein

Protein powder series products, so they are integrated into

Company powder series products

entity as asset group

Because it is mainly responsible for hospitals in Tianjin area

Mainly responsible for the approval of hospitals in Tianjin area

The wholesale and distribution business of Tianjin Baiyang Pharmaceutical Co., Ltd. is therefore integrated into

Delivery business

entity as asset group

Main business operating assets formed

Mainly responsible for the equipment in Anhui area

Anhui Zekang Medical Technology Co., Ltd. Asset group, including fixed assets, None Yes

Material sales

tangible assets and other long-term assets

Changes in asset group or asset group combination

Name Composition before the change Composition after the change Objective facts and basis for the change Other explanations

(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

The recoverable amount is determined based on the present value of expected future cash flows.

Applicable □Not applicable

Unit: Yuan in the stable period Years in the forecast period Off in the forecast period Off in the stable period

Item Carrying value Recoverable amount Impairment amount Limit of key parameter Key parameter Key parameter

The discount rate is determined based on

Stable period income is 10.18%; discount rate

The growth rate is Shanghai Baiyang's revenue compound growth of 10.18%;

472,681,26 1,276,000, 0%, Yili Pharmaceutical Co., Ltd. 5 Growth rate Revenue growth rate

4.21 000.00 rate, discount rate company 24.80%, flat 0%, profit margin

The average profit rate during the forecast period is 13.56%;

Consistent 15.49% the year after;

Discount rate Discount rate Stable period income Qingdao Newtech

57,703,787 233,000,00 10.75%; revenue 10.75%; revenue growth rate is Ma Health Technology 5

.57 0.00 Revenue compound growth Revenue growth rate 0%, profit limited

Rate 22.30%, 0%, profit rate, discount rate Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The average profit rate is 9.21%; the maximum rate during the forecast period is 8.66%; the discount rate for the next year is consistent with the income in the stable period

discount rate

8.11%; revenue growth rate is

8.11%; close

Tianjin Baiyang Medical 24,959,831 25,000,000 Revenue compound growth rate 0%, profit growth rate 5%

Pharmaceutical Co., Ltd. .77 .00 rate 14.92%, rate, discount rate

0%, profit margin

The average profit margin is the largest during the forecast period

3.28%;

3.07%; The consistent discount rate for the next year is stable period income.

discount rate

10.60%, the revenue growth rate is 10.60% for Anhui Zhekang Medical;

11,305,556 13,000,000 Revenue compound growth rate 0%, Profit Therapy Technology Co., Ltd. 5 revenue growth rate

.09 .00 rate 23.44%, rate, discount rate company 0%, profit margin

The average profit margin is the largest during the forecast period

11.82%;

9.76%; consistent with the following year 566,650,43 1,547,000,

total

9.64 000.00

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

Unit: Yuan Performance Commitment Completion Amount of Goodwill Impairment

Projects in this issue Previous issue

Commitment performance for this period Previous period Actual performance Completion rate Commitment performance Actual performance Completion rate

Shanghai Baiyang

172,260,0 201,743,1 144,290,0 177,213,6

Pharmaceutical shares 117.12% 122.82%

00.00 72.11 00.00 18.99

Ltd.

Other notes:

Long-term deferred expenses

Unit: Yuan Item Beginning balance Increase in the current period Amortization amount in the current period Other decreases Ending balance

Decoration fee 30,148,840.64 46,898,497.42 6,390,415.00 70,656,923.06 Software technology service fee 108,333.27 49,999.93 58,333.34 Product production qualification fee 10,471,698.14 4,482,100.77 5,989,597.37Total 40,728,872.05 46,898,497.42 10,922,515.70 76,704,853.77Other instructions:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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 72,932,826.63 17,684,964.95 57,066,217.79 13,546,607.11 Unrealized profits from internal transactions 56,365,702.09 10,249,756.52 41,575,162.87 8,737,022.56 Deductible losses 271,111,465.32 70,681,046.31 173,120,207.82 42,072,765.44 Lease liabilities 141,292,166.67 35,418,052.49 129,807,247.01 32,246,203.32 Amortization difference of intangible assets 23,966,667.03 3,595,000.07 25,666,666.84 3,850,000.03 Deferred income 5,560,377.77 834,056.67 6,659,273.74 1,568,891.06Total 571,229,205.51 138,462,877.01 433,894,776.07 102,021,489.52

(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 Amortization of right-of-use assets 130,295,954.56 32,589,844.02 122,075,010.05 30,265,370.27 Convertible corporate bonds temporary

57,174,770.28 14,293,692.57 83,591,239.64 20,897,809.91 Sexual differences

Difference in depreciation of fixed assets 34,255,231.67 5,138,284.76 29,018,989.34 4,352,848.40 Non-monetary asset investment

15,498,633.04 3,874,658.26 23,247,949.53 5,811,987.38 Deferred tax

Valuation of trading financial instruments

79,573,853.57 13,129,685.84 5,954,224.06 982,446.97 value

Total 316,798,443.12 69,026,165.45 263,887,412.62 62,310,462.93

(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 51,681,380.22 86,781,496.79 43,922,993.64 58,098,495.88 Deferred income tax liabilities 51,681,380.22 17,344,785.23 43,922,993.64 18,387,469.29

(4) Details of deferred income tax assets not recognized

Unit: Yuan

Item Ending balance Beginning balance

Deductible temporary differences 19,309,283.69 12,447,338.41 Deductible losses 298,939,751.06 269,247,491.09 Total 318,249,034.75 281,694,829.50

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(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 Note 2025 14,952,714.20

2026 29,014,514.97 29,163,766.33

2027 44,242,789.86 45,058,404.30

2028 77,506,521.89 80,094,350.96

2029 40,557,748.69 36,180,025.49

2030 40,879,509.69

Indefinitely 66,738,665.96 63,798,229.81

Total 298,939,751.06 269,247,491.09

Other notes:

Other non-current assets

Unit: Yuan

Closing balance Beginning balance items

Book balance Impairment provision Book value Book balance Impairment provision Book value Prepaid long-term assets 101,441,288. 101,441,288.

6,297,151.34 6,297,151.34 Purchase money 13 13

Others 1,127,079.80 1,127,079.80 1,802,126.70 1,802,126.70

102,568,367. 102,568,367.

Total 8,099,278.04 8,099,278.04

93 93

Other notes:

Assets whose ownership or use rights are restricted

Unit: Yuan

End of period Beginning of period

Project

Book balance Book value Restriction type Restriction situation Book balance Book value Restriction type Restriction situation Bank acceptance Bank acceptance Bill of exchange guarantee Bill of exchange margin, issuance

225,361,3 225,361,3 Fund, issuance 254,957,5 254,957,5 Letter of guarantee to guarantee monetary funds

78.76 78.76 Letter of guarantee guarantee 46.37 46.37 Fund, credit fund, frozen certificate guarantee funds Fund, frozen funds have been endorsed, endorsed,

28,022,59 28,022,59 43,109,64 43,109,64

Notes receivable Discount not yet received Discount not yet 4.78 4.78 5.24 5.24

period period

136,123,2 121,313,2 65,248,17 46,652,44

Fixed assets Loans and mortgages Loans and mortgages 03.91 50.18 5.45 2.05

26,693,74 20,174,67 26,693,74 20,708,54

Intangible assets Loans and mortgages Loans and mortgages 5.93 0.32 5.93 5.16

1,208,968 1,202,923 5,883,748 5,538,844

Accounts receivable Loan pledge Loan pledge

.10 .26 .18 .39

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

417,409,8 396,074,8 395,892,8 370,967,0

total

91.48 17.30 61.17 23.21

Other notes:

Short-term borrowing

(1) Classification of short-term loans

Unit: Yuan

Item Ending balance Beginning balance

Pledged loans 109,558,593.12 116,147,019.88 Guaranteed loans 215,211,496.81 190,930,007.79 Credit loans 1,605,960,035.54 790,550,076.05 Interest accrued 1,554,847.63 947,311.67 Total 1,932,284,973.10 1,098,574,415.39 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 the period was RMB, 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 instructions:

Trading financial liabilities

Unit: Yuan Item Ending balance Beginning balance

Among them:

Other notes:

Derivative financial liabilities

Unit: Yuan

Item Ending balance Beginning balance

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Notes payable

Unit: Yuan

Category Ending balance Beginning balance

Bank acceptance bill 457,358,356.87 393,187,421.15 Letter of credit 4,751,088.01 Total 457,358,356.87 397,938,509.16 The total amount of bills payable that has expired and not been paid at the end of this period is yuan, and the reason for unpaid due is.

Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

Item Ending balance Beginning balance

Within 1 year 691,271,118.88 725,000,158.50 1-2 years 42,078,602.98 19,180,369.71 2-3 years 7,948,537.93 6,553,357.65 More than 3 years 19,945,953.64 13,835,699.43 Total 761,244,213.43 764,569,585.29

(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

Qingdao Yingshang Construction Group Co., Ltd. 7,703,222.13 Not yet met settlement conditions

Qingdao Baiyang Shenghui Medical Equipment Co., Ltd. 5,550,739.21 Settlement conditions not met

Shandong Yidi Biotechnology Co., Ltd. 4,217,078.80 Not yet met settlement conditions

Shanghai Muhesen Medical Technology Co., Ltd. 2,977,057.99 Settlement conditions not met

Jinan Chongyang Trading Co., Ltd. 2,232,213.21 Settlement conditions not met

Shanghai Anbisheng Pharmaceutical Technology Co., Ltd. 1,680,653.94 Settlement conditions not met

Shandong Hailijian Pharmaceutical Co., Ltd. 1,567,842.89 Settlement conditions not met

Shandong Honglin Pharmaceutical Co., Ltd. 1,377,615.25 Not yet met settlement conditions

Qingdao Tiannanxing Medical Equipment Co., Ltd. 1,330,511.42 Not yet met settlement conditions

Qingdao Liaolu Trading Co., Ltd. 1,317,451.76 Not yet met settlement conditions

Rizhao St. Annuo Medical Equipment Co., Ltd. 1,124,751.44 Not yet met the settlement conditions

Beijing Kluo Trading Co., Ltd. 1,010,626.39 Settlement conditions not met

Total 32,089,764.43

Other notes:

(3) Is there any overdue payment to small and medium-sized enterprises?

Is it a large enterprise?

□Yes No

Other payables

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Item Ending balance Beginning balance

Other payables 351,199,191.59 560,404,147.45 Total 351,199,191.59 560,404,147.45

(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

Other explanations, including important dividends payable that have not been paid for more than 1 year, should disclose the reasons for non-payment:

(3) Other payables

List other payables according to the nature of the payment

Unit: Yuan

Item Ending balance Beginning balance

Current funds 179,903,069.66 470,984,682.07 Expense reimbursements 153,521,536.60 79,891,225.66 Security deposits and deposits 11,342,099.80 7,369,926.60 Taxes payable in advance 6,390,540.69 2,132,421.23 Others 41,944.84 25,891.89 Total 351,199,191.59 560,404,147.45

Important other payables aged more than 1 year or overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Baiyang Pharmaceutical Group Co., Ltd. 111,223,713.45 Settlement conditions not met

Qingdao Huizhu Baiyang Health Industry Investment Fund (Limited

38,078,255.00 has not met the settlement conditions

partnership)

Qingdao Bodhi Yonghe Investment Management Center (Limited Partnership)

4,936,329.00 has not met the settlement conditions

Guy)

Qingdao Huashan Guangtai Construction Engineering Co., Ltd. 1,008,351.64 Not yet met settlement conditions

Total 155,246,649.09

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Advance payments

(1) Presentation of advance receipts

Unit: Yuan

Item Ending balance Beginning balance

(2) Important advances from customers aged more than 1 year or overdue

Unit: Yuan Item Closing balance Reason for outstanding or carry-forward

Unit: Yuan

Item Amount of change Reason for change

Contract liabilities

Unit: Yuan

Item Ending balance Beginning balance

Within 1 year 140,942,264.17 113,543,726.43 1-2 years 1,831,810.76 2,072,552.07 2-3 years 1,540,653.60 1,272,310.43 More than 3 years 2,334,645.53 1,634,050.86 Total 146,649,374.06 118,522,639.79 Important contract liabilities aged more than 1 year

Unit: Yuan

Item Closing balance Reason for outstanding or carried 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 Opening balance Increase in the current period Decrease in the current period Ending balance

Short-term salary 106,898,515.54 619,491,314.85 619,174,161.93 107,215,668.46

2. Post-employment benefits-settings

1,851,407.30 56,471,993.32 56,538,611.67 1,784,788.95 Withdrawal plan

Dismissal benefits 37,948,615.51 30,780,744.31 7,167,871.20 Total 108,749,922.84 713,911,923.68 706,493,517.91 116,168,328.61

(2) Presentation of short-term remuneration

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Salary, bonus, allowance

100,351,541.67 536,711,275.06 535,334,998.91 101,727,817.82 and subsidies

Employee welfare fees 791,158.11 13,632,604.37 14,186,386.50 237,375.98
Social insurance premiums 1,005,606.71 29,135,933.13 29,150,595.80 990,944.04 Including: medical insurance

913,913.64 27,861,778.03 27,878,273.65 897,418.02 fee

Work injury insurance

22,212.37 1,179,335.40 1,181,963.16 19,584.61 fee

maternity insurance

24,346.21 24,346.21

fee

Others 69,480.70 70,473.49 66,012.78 73,941.41

Housing provident fund 326,294.86 33,734,021.05 33,775,935.79 284,380.12
Trade union funds and employee education

4,423,914.19 6,277,481.24 6,726,244.93 3,975,150.50 education funds

Total 106,898,515.54 619,491,314.85 619,174,161.93 107,215,668.46

(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 1,786,018.21 54,408,748.32 54,471,989.19 1,722,777.34
Unemployment insurance premium 65,389.09 2,063,245.00 2,066,622.48 62,011.61Total 1,851,407.30 56,471,993.32 56,538,611.67 1,784,788.95Other instructions:
Taxes payable

Unit: Yuan

Item Ending balance Beginning balance

Value-added tax 33,524,625.49 34,330,692.82 Corporate income tax 54,644,300.51 64,783,981.56 Personal income tax 2,286,308.67 2,364,004.98 Urban maintenance and construction tax 1,538,070.39 2,322,789.38 Real estate tax 1,086,196.06 1,281,767.83 Education fee surcharge 765,195.18 1,112,758.20 Local education fee surcharge 510,130.11 741,838.76 Land use tax 221,127.15 221,073.39 Employment security fund for persons with disabilities 14,478.03 Stamp duty 899,716.19 1,295,472.41 Others 34,877.07 7,770.63 Total 95,510,546.82 108,476,627.99 Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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 44,615,302.25 40,377,300.44 Bonds payable due within one year 6,072,105.33 3,036,487.64 Lease liabilities due within one year 34,260,116.62 27,866,059.48 Total 84,947,524.20 71,279,847.56Other instructions:

Other current liabilities

Unit: Yuan

Item Ending balance Beginning balance

Endorsed or discounted bills that have not been derecognized 18,022,594.78 15,532,928.08 Output tax to be transferred 14,043,004.50 13,914,990.09 Total 32,065,599.28 29,447,918.17 Increase or decrease in short-term bonds payable:

Unit: yuan per face

Overflow discount

Bond Par Issue Bond Issuance Beginning of Period Value of Current Period End of Period Whether

face value price spread

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

Pledged loans 392,400,000.00 254,000,000.00 Pledged loans 79,631,491.84 103,772,882.84 Total 472,031,491.84 357,772,882.84

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Description of long-term loan classification:

The company pledged the long-term equity investments of its subsidiaries Qingdao Baiyang Investment Group Co., Ltd., Qingdao Baiyang Yiren Investment Management Co., Ltd. and Beijing Baiyang Kanghe Technology Co., Ltd. (the balance as of December 31, 2025 was 346,641,906.75 yuan), and obtained a pledged loan of 392,400,000.00 yuan.

Other instructions, including interest rate ranges:

Bonds payable

(1) Bonds payable

Unit: Yuan

Item Ending balance Beginning balance

"Baiyang Convertible Bonds" - "123194" 781,087,353.29 754,790,886.78 Total 781,087,353.29 754,790,886.78

(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 Conversion into shares

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Cancellation

information

2023.

"hundred

2023 4.14-

Foreign transfer 860,0 754,7 7,266 23,37 4,230 781,0

100.0 0.3% - Year 4 2029. 110,5

Debt” - 00,00 90,88 ,290. 0,959 ,221. 87,35 No

0 2.5% Month 14 4.13 62.08

"123 0.00 6.78 33 .26 00 3.29

Day (6

194”

years)

860,0 754,7 7,266 23,37 4,230 781,0

110,5

Total —— 00,00 90,88 ,290. 0,959 ,221. 87,35 —— 62.08

0.00 6.78 33.26 00 3.29

(3) Description of convertible corporate bonds

(1) During the conversion period of the convertible bonds issued this time, when any of the following situations occurs, the company has the right to decide to redeem all or part of the unconverted convertible bonds at the price of the bond's face value plus current accrued interest: ① During the conversion period, if the closing price of the company's stock on at least fifteen trading days out of any thirty consecutive trading days is not less than 130% of the current conversion price (inclusive) 130%); ② When the unconverted balance of the convertible bonds issued this time is less than RMB 30 million. (2) The initial conversion price of "Baiyang Convertible Bonds" is 27.64 yuan/share. On May 25, 2023, the company implemented the 2022 equity distribution implementation plan, and the conversion price of "Baiyang Convertible Bonds" was adjusted from 27.64 yuan/share to 26.88 yuan/share; on May 29, 2024, the company implemented the 2023 Equity Distribution Implementation Plan. In the annual equity distribution implementation plan, the conversion price of "Baiyang Convertible Bonds" was adjusted from 26.88 yuan/share to 26.12 yuan/share; on May 27, 2025, the company implemented the 2024 equity distribution implementation plan, and the conversion price of "Baiyang Convertible Bonds" was adjusted from 26.12 yuan/share to 25.36 yuan/share.

(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 Qingdao Baiyang Pharmaceutical Co., Ltd. Full text of 2025 annual report

Outstanding at the beginning of the period Increase during the period Decrease during the 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 163,874,855.10 150,654,571.37 Unrecognized financing expenses -20,010,779.46 -20,225,655.30 Lease liabilities due within one year -34,260,116.62 -27,866,059.48 Total 109,603,959.02 102,562,856.59Other instructions:

Long-term payables

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 benefits payable

(1) Long-term employee salary payable table

Unit: Yuan Item Ending balance Beginning balance

Full text of Qingdao Baiyang Pharmaceutical 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 Cause of formation Pending litigation 5,000,000.00

Total 5,000,000.00

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 Closing balance Reason for formation Government subsidy 11,434,936.36 3,162,000.00 1,691,019.12 12,905,917.24

Total 11,434,936.36 3,162,000.00 1,691,019.12 12,905,917.24

Other notes:

Other non-current liabilities

Unit: Yuan Item Ending balance Beginning balance

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Share capital

Unit: Yuan Increase or decrease in this change (+, -)

Balance at the beginning of the period Balance at the end of the period Issuance of new shares Bonus shares Conversion of public reserve funds Others Subtotal

525,619,31 525,624,07 Total shares 4,767.00 4,767.00

0.00 7.00Other instructions:

Other equity instruments

(1) Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

Published in

Accounting points Dividend rate or interest Issue price Maturity date or

Additional funds Issuance time Quantity Amount Conversion conditions Conversion status

Category Rate Rate Renewal Status

financial tools

The convertible bond conversion period is from

As of 2025, the coupon rate is: The issuance of secondary convertible bonds ends

The date of the first year in December (April 2023)

On the 31st, already

Debt payable 0.30%, month 20 of the second year, T+4

Convertible with accumulation

4 coupons in 2023, its 0.50%, 100 yuan in the third year / 4 days in 2029) after 6 months

Corporate bonds 8,600,000.00 860,000,000.00 140,769

On the 14th of the month, his equity is 1.00%, in the fourth year, on the 13th of the month, the first trading day

Bond bond transfer instrument 1.50%, fifth year (October 20, 2023

is 2.00%, starting from the sixth year) until the convertible bonds reach

524,077 2.50% maturity (April 2029

share capital

(until March 13)

Total 8, 600,000.00 860,000,000.00

(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

Convertible 8,460,442 99,752,55 8,459,231 99,738,27

1,211.00 14,278.28

Corporate bonds .00 6.35 .00 8.07

8,460,442 99,752,55 8,459,231 99,738,27Total 1,211.00 14,278.28

.00 6.35 .00 8.07 Changes in other equity instruments during the current period, explanations of reasons for changes, and the basis for relevant accounting treatments:

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Capital reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Capital premium (equity premium

151,609.14 1,849,353.84 2,000,962.98 price)

Other capital reserves -2,675,387.96 16,983,853.26 14,308,465.30 Total -2,523,778.82 18,833,207.10 16,309,428.28 Other explanations, including changes in increases and decreases in the current period and reasons for changes:

Explanation: The equity method accounting for associated companies in this period has increased the capital reserve by RMB 16,983,853.26 in total; the acquisition of minority shareholders' equity in subsidiaries in this period has reduced the capital reserve in total by RMB 1,389,920.73; the minority shareholders' capital increase in subsidiaries in this period has increased the capital reserve in total by RMB 3,116,520.02; the conversion of convertible bonds in this period has increased the capital reserve in total by RMB 122,754.55.

Treasury stocks

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Other explanations of the closing balance, including changes in increases and decreases in the current period and explanation of reasons for changes:

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

2. Will be heavy

- - -Classification loss 1,678,152

5,215,824 4,750,294 465,529.2 3,072,142 Others .03

.27 .99 8 .96 Comprehensive income

Among them: right

13,901.82 4,895,230 4,895,230 4,881,328 Other comprehensive income that can be transferred to profit or loss under the income method - - - .11 .11 .29

Foreign Currency - - -

2,493,607 1,809,185 Financial statements 1,149,951 684,422.6 465,529.2

.97 .33 Conversion difference .92 4 8

Should

Bill collector 829,357.7 829,357.7

829,357.7 0.00 fair value change 6 6

move

- - -Other comprehensive 1,678,152

5,215,824 4,750,294 465,529.2 3,072,142Total income .03

.27 .99 8 .96

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other explanations include adjustments to the initial recognition amount of the effective portion of cash flow hedging gains and losses converted into hedged items:

Special reserves

Unit: Yuan

Surplus reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 202,078,158.26 33,609,243.02 235,687,401.28 Total 202,078,158.26 33,609,243.02 235,687,401.28 Description of surplus reserve, 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 profits at the end of the previous period before adjustment 1,548,306,006.77 1,448,972,045.40 Total undistributed profits at the beginning of the period before adjustment (adjustment +,

-10,765,822.88 reduction—)

Adjusted opening undistributed profits 1,548,306,006.77 1,438,206,222.52 plus: net profit attributable to owners of the parent company for the period

474,685,025.56 691,593,321.92 profit

Less: Appropriation of statutory surplus reserve 33,609,243.02 41,579,211.65

Dividends payable on ordinary shares 400,521,876.14 400,517,480.14 Add: business combination under common control -139,396,845.88 Undistributed profits at the end of the period 1,588,859,913.17 1,548,306,006.77 Adjustment of undistributed profits at the beginning of the period Details:

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.
Due to changes in accounting policies, the undistributed profit at the beginning of the period was affected.
Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected.
Changes in the scope of consolidation due to the same control will affect the undistributed profit at the beginning of the period.
The total impact of other adjustments on the undistributed profit at the beginning of the period is RMB.

Detailed explanation of the use of capital reserves to cover losses:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

revenue cost revenue cost

Main business 7,479,847,627.28 4,682,109,156.75 8,068,426,723.88 5,207,113,488.41 Other businesses 26,667,261.87 11,619,834.26 26,031,344.86 13,546,155.17 Total 7,506,514,889.15 4,693,728,991.01 8,094,458,068.74 5,220,659,643.58 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

Breakdown information of operating income and operating costs:

Unit: Yuan

Segment 1 Segment 2 Amount for the current period Total

Contract classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

Brand products

5,624,329 2,958,207 5,624,329 2,958,207Sales Promotion

,870.09 ,432.34 ,870.09 ,432.34Business

Pharmaceutical wholesale 1,457,861 1,342,427 1,457,861 1,342,427 Distribution business ,126.47 ,775.29 ,126.47 ,775.29 Medicine and health

397,656,6 381,473,9 397,656,6 381,473,9 Kang Product Zero

30.72 49.12 30.72 49.12 Sales business

Other business 26,667,26 11,619,83 26,667,26 11,619,83Income 1.87 4.26 1.87 4.26

7,506,514 4,693,728 7,506,514 4,693,728Total

,889.15,991.01,889.15,991.01 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 income corresponding to the performance obligations that have been signed but have not been performed or have not been completed is 146,649,374.06 yuan, of which,

Revenue of 146,649,374.06 yuan is expected to be recognized in 2026, and revenue is expected to be recognized in 2026.

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 notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Taxes and surcharges

Unit: Yuan

Item Amount for the current period Amount for the previous period

Urban maintenance and construction tax 22,946,328.08 18,484,583.18 Education fee surcharge 10,789,409.63 8,852,468.99 Property tax 4,026,694.17 4,398,123.38 Land use tax 885,189.96 1,280,119.15 Vehicle and vessel use tax 24,681.95 19,454.19 Stamp tax 4,109,519.07 4,931,886.19 Local education surcharge 7,192,940.85 5,900,502.22 Environmental protection tax 82,266.53 87,602.27 Others 84,425.61 765.90 Total 50,141,455.85 43,955,505.47

Other notes:

Management expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 160,390,743.86 141,188,081.35 Depreciation and amortization expenses 49,504,992.39 37,744,007.73 Professional service fees 27,769,367.16 23,904,176.78 Rent and property utility fees 39,714,653.20 23,968,185.63 Business entertainment expenses 16,707,390.96 12,002,201.29 Office expenses 8,571,179.47 9,677,698.25 Travel expenses 8,326,094.41 7,824,830.95 Conference and training fees 1,472,887.13 1,587,445.56 Other expenses 13,705,103.88 22,656,771.95 Total 326,162,412.46 280,553,399.49

Other notes:

Sales expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Marketing and promotion expenses 1,176,510,494.82 1,058,719,822.58 Employee compensation 371,386,800.50 376,282,056.76 Travel expenses 28,807,125.00 31,525,148.56 Business entertainment expenses 19,870,980.60 23,748,790.06 Depreciation and amortization expenses 8,681,609.25 9,630,148.02 Rent and property utility bills 7,792,527.05 7,771,642.68 Warehousing and transportation expenses 26,117.20 34,027.26 Other expenses 7,343,022.11 9,208,657.62 Total 1,620,418,676.53 1,516,920,293.54

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Research and development expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 11,761,386.64 12,159,898.41 Entrusted research and development expenses 3,447,886.80 7,637,596.41 Material expenses 6,753,834.23 4,882,552.13 Technical service expenses 3,695,114.39 4,318,826.52 Depreciation and amortization expenses 3,057,449.49 2,461,651.95 Testing and laboratory processing fees 10,370,911.64 2,331,706.77 Intellectual property fees 1,189,528.20 990,404.44 Fuel and power fees 840,145.49 432,069.60 Other expenses 1,048,947.55 925,075.99 Total 42,165,204.43 36,139,782.22

Other notes:

Financial expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Interest expense 103,652,681.68 80,092,315.85 Including: Interest expense on lease liabilities 6,870,836.29 5,597,651.70 Less: Interest income 11,083,732.26 13,635,219.99 Exchange gains and losses 12,866,149.54 2,880,504.02 Handling fee expenses 2,196,020.42 1,771,011.10 Total 107,631,119.38 71,108,610.98

Other notes:

Other income

Unit: Yuan

Sources of other income Amount incurred in the current period Amount incurred in the previous period

Government subsidies 26,716,202.14 15,303,033.69 Input tax additional deduction 3,675,493.68 2,391,602.62 Tax reduction and exemption return 861,156.82 922,987.75 Others 184.45 Total 31,252,852.64 18,617,808.51

Net exposure hedging income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Other notes:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Gains 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 73,619,629.54 1,715,871.08 Other non-current financial assets -263,205.12

Total 73,356,424.42 1,715,871.08Other instructions:

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Income from long-term equity investments accounted for by the equity method 7,192,925.95 51,120,996.54 Investment income from disposal of long-term equity investments 14,172,020.71 4,489,050.24 Investment income from trading financial assets during the holding period

472,559.67 6,403,039.47 profit

Investment income from disposal of trading financial assets 1,316,162.20 1,425,000.77 Measured at fair value and changes in other comprehensive

-3,556,263.88 -4,228,683.96 Investment income from financial assets with combined income

Total 19,597,404.65 59,209,403.06Other instructions:

Credit impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bad debt losses on notes receivable -713.83 -19,810.95 Bad debt losses on accounts receivable -7,921,766.24 -11,257,224.04 Bad debt losses on other receivables 301,703.07 -550,857.29 Total -7,620,777.00 -11,827,892.28Other 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

-47,107,035.82 -7,714,951.49 value loss

Impairment losses on long-term equity investments -8,308,125.91 Total -47,107,035.82 -16,023,077.40

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other notes:

Income from asset disposal

Unit: Yuan

Source of asset disposal income Amount incurred in the current period Amount incurred in the previous period

Profit and loss from disposal of fixed assets 488,064.29 242,344.39 Profit and loss from disposal of right-of-use assets 32,264.55 682,673.19 Total 520,328.84 925,017.58

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

Government subsidy 20,000.00

Gains from damage and scrapping of non-current assets 2,761.31

Others 4,825,766.09 2,409,357.46 4,825,766.09Total 4,825,766.09 2,432,118.77 4,825,766.09Other instructions:

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

Loss on exchange of non-monetary assets 601,655.43 459,320.47 601,655.43 External donations 12,756,072.15 6,330,098.65 12,756,072.15 Compensation for early cancellation of lease 66,666.67

Others 4,759,241.11 6,686,380.21 4,759,241.11Total 18,116,968.69 13,542,466.00 18,116,968.69Other 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 180,769,076.54 201,497,942.80 Deferred income tax expense -29,723,324.79 -1,900,970.41 Total 151,045,751.75 199,596,972.39

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(2) Adjustment process of accounting profits and income tax expenses

Unit: Yuan

Item Amount incurred in this period

Total profit 722,975,024.62 Income tax expenses calculated according to statutory/applicable tax rates 180,743,756.16 The impact of different tax rates applicable to subsidiaries -62,604,807.19 The impact of adjusting income taxes in previous periods -1,822,923.71 The impact of non-deductible costs, expenses and losses 32,336,404.25 Effect of using deductible losses that have not been recognized as deferred income tax assets in the previous period -5,888,768.57 Deductible temporary differences or deductible losses that have not been recognized as deferred income tax assets in the current period

27,369,864.14 Impact of loss

Additional deductible expenses stipulated in the tax law -5,708,732.48 Impact on investment income and losses of associated companies -13,898,352.05 Others 519,311.20 Income tax expenses 151,045,751.75 Other notes:

Other comprehensive income

For details, please see Note VII. 57 Other Comprehensive Income.

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

Bank deposit interest received 11,083,732.26 13,635,219.99 Government subsidies received 28,187,183.02 14,036,409.13 Others (reserve funds, security deposits, current accounts, etc.) 98,825,450.42 39,341,347.48 Total 138,096,365.70 67,012,976.60 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

Payment of operating expenses and administrative expenses, etc. 1,383,376,464.81 1,196,957,100.39 Payment of donations and fines 9,737,004.96 5,808,131.42 Payment of bank fees 2,196,020.42 1,771,011.10 Others (reserve funds, security deposits, deposits, etc.) 15,590,435.71 36,404,414.15 Total 1,410,899,925.90 1,240,940,657.06 Description of other cash paid related to operating activities:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

(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

Bank financial management 310,000,000.00 381,000,000.00Total 310,000,000.00 381,000,000.00Explanation of other cash received related to investment 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

Bank financing 310,000,000.00 381,000,000.00 Equity investment in associated companies 192,000,000.00 361,009,000.46 Total 502,000,000.00 742,009,000.46 Description of other cash paid related to investment activities:

(3) Cash related to financing activities

Other cash received related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Temporary loans 128,361,488.58 225,296,295.46 Recovery of deposits from financial institutions or bank guarantees 70,923,586.40

Refund of lease liabilities 1,166,866.56 Capital contribution from original shareholders of subsidiaries under common control 900,000.00 Total 199,285,074.98 227,363,162.02 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

Payment of consideration for merger of companies under common control and purchase of minority shares

279,540,455.37 440,018,037.00 rights

Subsidiary returns to original shareholders/minority shareholders to provide loans 304,963,900.00

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Deposit paid by financial institutions 45,418,990.43 45,937,757.45 Rent paid for right-of-use assets 34,268,152.98 20,466,941.70 Total 359,227,598.78 811,386,636.15 Description of other cash paid 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

1,098,574,41 2,129,151,58 45,528,779.6 1,219,964,36 121,005,448. 1,932,284,97 Short-term borrowings

5.39 9.53 9 3.32 19 3.10 Long-term borrowings (including

398,150,183. 158,400,000. 16,207,065.1 40,377,300.4 15,733,153.8 516,646,794. Part due within one year

28 00 2 4 7 09 minutes)

Bonds payable (including

757,827,374. 33,672,867.2 787,159,458. Due within one year 4,230,221.00 110,562.08

42 8 62 points)

Lease liabilities (including

130,428,916. 50,411,277.3 34,268,152.9 143,864,075. Due within one year 2,707,964.76

07 1 8 64 minutes)

Other receivables - 127,172,139. 128,361,488.

1,189,349.44

Current account 14 58

Other payables - 428,601,664. 11,892,444.0 275,903,266. 164,590,842. Current accounts 66 0 00 66

435,719,839. 435,719,839.

Dividends payable

79 79

2,940,754,69 2,287,551,58 594,621,622. 2,138,824,63 139,557,128. 3,544,546,14Total

2.96 9.53 63 2.11 90 4.11

(4) Explanation on presenting cash flow in net amount

Item Relevant facts and circumstances Basis for net presentation Financial impact

(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 571,929,272.87 767,030,644.39

Add: Asset impairment provision 54,727,812.82 27,850,969.68

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Depreciation of fixed assets, depreciation of oil and gas assets

62,929,049.04 46,292,654.26 Depreciation of consumption and productive biological assets

Depreciation of right-of-use assets 33,005,103.87 23,123,713.53 Amortization of intangible assets 23,126,318.47 16,601,383.91 Amortization of long-term prepaid expenses 10,922,515.70 6,196,597.82 Disposal of fixed assets, intangible assets and other

Loss of his long-term assets (income is listed with "-" sign -520,328.84 -925,017.58)

Loss on scrapping of fixed assets (income based on

601,655.43 456,559.16 (Fill in “-”)

Loss from change in fair value (gain based on

-73,356,424.42 -1,715,871.08 (Fill in “-”)

Financial expenses (revenues are filled in with "-"

103,652,681.68 79,926,105.99 columns)

Investment losses (income is filled in with "-"

-23,153,668.53 -63,438,087.02 columns)

Deferred tax assets decreased (increased by

-28,683,000.91 18,475,828.37 (Fill in “-”)

Deferred tax liabilities increased (decreased by

-1,042,684.06 -15,155,788.32 (Fill in “-”)

Decrease in inventory (increase marked with "-"

-11,685,641.22 -70,231,498.94 fill in the column)

Decrease in operating receivables (increase in

150,190,559.20 -85,140,766.88 (please fill in with "-")

Increase (decrease) in operating payables

61,810,383.76 64,502,977.60 (please fill in with "-")

Others

Net cash flow generated from operating activities 934,453,604.86 813,850,404.89 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:

Closing balance of cash 1,912,084,455.36 1,212,445,674.09 Less: Opening balance of cash 1,212,445,674.09 1,128,096,282.67 Add: Closing balance of cash equivalents 11,858,086.49 10,100,519.96 Less: Opening balance of cash equivalents 10,100,519.96 6,047,131.31 Net increase in cash and cash equivalents 701,396,347.80 88,402,780.07

(2) Net cash paid in the current period to acquire subsidiaries

Unit: Yuan

Amount

Among them:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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 1,912,084,455.36 1,212,445,674.09 Including: Cash on hand 96,907.87 38,841.16 Bank deposits that can be used for payment at any time 1,887,530,859.55 1,143,596,949.21 Other monetary resources that can be used for payment at any time

24,456,687.94 68,809,883.72 gold

Cash equivalents 11,858,086.49 10,100,519.96 Including: Third-party platform funds 11,858,086.49 10,100,519.96
Balance of cash and cash equivalents at the end of the period 1,923,942,541.85 1,222,546,194.05

(5) Situations where the scope of use is limited but still represents cash and cash equivalents

Unit: Yuan Items that are still cash and cash equivalents Amount for the current period Amount for the previous period

Reason

(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

Other notes:

(7) Description of other major activities

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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 254,182,187.55 Including: US dollars 30,739,330.77 7.0288 216,060,608.10 Euros 562.63 8.2355 4,633.54 Hong Kong dollars 41,449,809.65 0.9032 37,438,296.90 yen 6,734,256.00 0.0448 301,674.47

British pounds 39,956.60 9.4346 376,974.54 Accounts receivable 9,231,573.77 Including: US dollars 1,313,392.58 7.0288 9,231,573.77 Euros

Hong Kong dollar

long term borrowing

Of which: US dollars

Euro

Hong Kong dollar

Other receivables 1,005,365.78 including: USD 107,167.32 7.0288 753,257.66

Hong Kong dollars 279,121.50 0.9032 252,108.12 Accounts payable 8,933,384.59 Including: US dollars 1,264,789.76 7.0288 8,889,954.27 Euros 378.00 8.2355 3,113.02

Japanese yen 900,000.00 0.0448 40,317.30 Other payables 171,706.36 Including: Hong Kong dollars 118,810.00 0.9032 107,311.57

Japanese yen 1,437,480.00 0.0448 64,394.79 Taxes and fees payable 10,768,407.96 Including: US dollars 2,659.91 7.0288 18,695.98

HKD 11,901,806.89 0.9032 10,749,711.98 Employee benefits payable 16,257.96 Including: HKD 18,000.00 0.9032 16,257.96 Other notes:

(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 Qingdao Baiyang Pharmaceutical 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

The short-term lease expenses included in the simplified treatment of related asset costs or current profits and losses were RMB 33,886,430.43. Situations involving sale and leaseback transactions

(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

Income related to payment amount Operating lease income 5,495,489.17 Total 5,495,489.17 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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Item Amount for the current period Amount for the previous period

R&D projects that meet capitalization conditions

Unit: Yuan Increase amount in this period Decrease amount in this period

Item Opening balance Internal development Confirmed as N/A Transferred to current period Closing balance Others

Expenditure tangible assets Profit and loss

total

Significant Capitalized R&D Projects

Estimated economic benefits when capitalization begins Specific projects to begin capitalization R&D progress Estimated completion time

Production method Point entity based on development expenditure impairment provision

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Impairment test situation

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:

9. Changes in consolidation scope

Business merger not under common control

Not applicable

Merger of enterprises under common control

Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Reverse purchase

Not applicable

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

Qingdao Baiyang Wanglian Pharmacy Co., Ltd.

Qingdao Baiyang Wanglian Pharmacy Co., Ltd. was deregistered on March 20, 2025, with a registered capital of 1 million yuan; the company currently holds 100% of the shares.

Hebei Baiyang Sapu Medical Equipment Technology Co., Ltd.

Hebei Baiyang Sapu Medical Equipment Technology Co., Ltd. was established on July 8, 2025, with a registered capital of US$5.1 million. The company currently holds 100% of its shares indirectly through Baiyang Health Industry International Trading Co., Ltd.

Beijing Baixin Kangda Medical Equipment Co., Ltd.

Beijing Baixin Kangda Medical Equipment Co., Ltd. was established on January 26, 2025, with a registered capital of 2 million yuan, and the company directly held 51% of its shares during the current period. 4) Baiyang Pharmaceutical (Guangdong) Co., Ltd.

Baheal Pharmaceutical (Guangdong) Co., Ltd. was established on October 31, 2025, with a registered capital of RMB 50 million. The company directly holds 100% of its shares during the current period. 5) Beijing Baiyang Chunsheng Pharmaceutical Technology Co., Ltd.

Beijing Baiyang Chunsheng Pharmaceutical Technology Co., Ltd. was established on November 27, 2025, with a registered capital of RMB 10 million. The company directly holds 55% of its shares during the current period. 6) Hangzhou Baiyang Zhili Medical Research Service Co., Ltd.

Hangzhou Baiyang Zhili Medical Research Services Co., Ltd. was established on December 31, 2025, with a registered capital of 5 million yuan, and the company directly holds 60% of its shares during the current period.

Others

10. Interests in other entities

Interests in subsidiaries

(1) Composition of enterprise groups

Unit: Yuan

Shareholding ratio

Name of subsidiary company Registered capital Main place of business Place of registration Nature of business How to obtain

direct indirect

Baiyang Health Products is established through

118,450,00 Brand services and

Industry International Business Hong Kong Hong Kong 100.00%

0.001 Cross-border e-commerce

Co., Ltd. Company Baheal Group has 1,000,000. Investment and business under common control

Hong Kong Hong Kong 100.00%

Co., Ltd. 002 Expansion Business merger Hebei Baiyangsa

Through the establishment of Fangpu Medical Equipment 5,100,000. Medical device sales

Langfang City Langfang City 100.00% formally acquired Zi Technology Co., Ltd. 003 for sale

Corporate Division

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Newtshuma

10,526,300 Investment and Business International Health Limited under common control Hong Kong Hong Kong 66.50%

.004 Expansion Business Combination Company

Qingdao Newtech

20,000,000 Health nutrition products Non-identical control Ma Health Technology Qingdao City Qingdao City 66.50%

.005 Sales under Business Incorporation, Inc.

Newt Shuma

1,000,000. Health supplements Under the same control (Hong Kong) Hong Kong Hong Kong 66.50%

006 Sales Business Mergers Ltd.

American Nutrisol Health Nutritional Products Not under the same Control

19.567 United States United States 59.52%

Ma Co., Ltd. R&D and sales merged with Qingdao Baiyangzhi

Through the establishment of Fangcheng Medical Technology 20,000,000 medical device sales

Qingdao City Qingdao City 100.00% formally acquired Sub-Development Co., Ltd. .008 sold

Corporate Division

Qingdao Baiyangyi

100,000,00 Health and nutrition products Under the same control, Mei Technology Co., Ltd. Qingdao City Qingdao City 60.00%

0.00 Sales Business Combination Company

Medical device sales

Qingdao Baiyangtiao passed the establishment party

10,000,000 Sales, daily use

TickMiao Technology has Qingdao City Qingdao City 60.00% of the shares obtained

.00 products, cosmetics

Ltd. Company

sales

Qingdao Dianzhongwen

10,000,000 Non-unified Controlled Communication Co., Ltd. Qingdao City Qingdao City Business Services 60.00%

.00 Under Business Combination Corporation

Medical device sales

Qingdao Baiyangtiao passed the establishment party

10,000,000 Sales, daily use

TiMiao Trading has Qingdao City Qingdao City 60.00% of the shares obtained by the formula

.00 products, cosmetics

Ltd. Company

sales

Baiyang Technology Sea passed the establishment party

1,000,000.

Foreign Trading Co., Ltd. Hong Kong Hong Kong Cross-border e-commerce 100.00% acquired subsidiary Company Qingdao Baiyangjian

80,000,000 Xiakang Pharmacy Chain under common control Qingdao City Qingdao City Drug sales 100.00%

.00 BUSINESS COMBINED LIMITED.

Beijing Chengshan Hall

10,000,000 Health nutrition products Health technology under the same control Beijing City Beijing City 58.00%

.00 Sales BUSINESS COMBINED LIMITED.

Qingdao Dong Yuansheng

20,000,000 Sales of medical devices Wu Technology Co., Ltd. under common control Qingdao City Qingdao City 80.00%

.00 Sold Business Combination Company

Beijing Baiyangdong passed the establishment party

10,000,000 Medical device sales

Source Biotechnology Beijing Beijing 73.60%

.00 sold

Co., Ltd. Bai Yuan Medical Department was established by

10,000,000 Medical device sales

Technology (Shandong) Jinan City Jinan City 52.24%

.00 sold

Co., Ltd. The company Qingdao Zhilijian was established through

36,363,600 Healthy Nutritional Products

Kang Technology Co., Ltd. Qingdao City Qingdao City 100.00%

.00 sales

Company Company Qingdao Baiyang Medical Through the establishment method

5,000,000.

Drug Logistics Co., Ltd. Qingdao City Qingdao City Warehousing and Logistics 100.00% subsidiary company Jiangxi Baiyang Medical 20,410,000 Not under common control

Ji'an City Ji'an City Pharmaceutical Sales 51.00%

Pharmaceutical Co., Ltd. .00 Business merger with Tianjin Baiyang Medical 43,500,000 Not under common control

Tianjin City Tianjin City Pharmaceutical Sales 51.00%

Pharmaceutical Co., Ltd. .00 under business combination

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Shandong Baiyang Pharmaceuticals and Medical Care passed the establishment

100,000,00

Pharmaceutical Technology Co., Ltd. Jinan City Jinan City Equipment, health 51.00%

0.00

Company Nutritious Products Sales Company Shanghai Baiyanghui Medical Devices Company Passed the Establishment Party

10,000,000

Intelligent Medical Department Shanghai Municipal Government, Food Business 51.00%

.00

Technology Co., Ltd. Qingdao Baiyangxi Co., Ltd. was established through

20,000,000 Pharmaceuticals, medical

Shore Medical Technology Qingdao City Qingdao City 100.00%

.00 Device Sales

Co., Ltd. Company Beijing Baiyangzhi

Through the establishment of Fanghe Medical Achievements 50,000,000

Beijing City Beijing City Brand Service 100.00% The sub-conversion services obtained by formula are .00

Ltd.

Beijing Baiyangcheng passed the establishment party

100,000,00

Da Pharmaceutical Technology Beijing Beijing Pharmaceutical Sales 100.00%

0.00

Co., Ltd. Beijing Baiyangguo was established through

10,000,000 Medical device business

Sheng Medical Devices Beijing City Beijing City 90.00%

.00 battalion

Co., Ltd. The company Qingdao Baiyangguo was established through

10,000,000 Medical device production

Scientific and medical equipment Qingdao City Qingdao City 90.00%

.00 Production and operation

Co., Ltd. The company Hebei Baiyangguo was established through

10,000,000 Equipment sales

Sheng Medical Equipment Langfang City Langfang City 90.00%

.00 sold

Co., Ltd. Hebei Baiyangcheng Equipment Sales Co., Ltd. is established through

400,000,00

Da Pharmaceutical Co., Ltd. Langfang City Langfang City Sales and sales of medicines 100.00%

0.00

Company Sales Company Shanghai Baiyang Manufacturing Co., Ltd.

114,025,80 Pharmaceutical production and pharmaceutical production under the same control Shanghai Municipality Shanghai Municipality 18.21% 41.98%

0.00 Sales Business Combination Company

Shanghai Baiyang System

105,050,00 Pharmaceutical production and pharmaceutical technology Co., Ltd. under the same control Shanghai City Shanghai City 60.20%

0.00 Sales Business Combination Company

Anhui Zhihetang

8,265,120. Pharmaceutical production and Pharmaceutical Co., Ltd. under common control Bozhou City Bozhou City 60.20%

00 Sales Business Mergers Division

Shanghai Baiyang now

4,500,000. Pharmaceutical production and next-generation traditional Chinese medicine technology under common control Shanghai City Shanghai City 60.20%

00 Sales Corporate Mergers Ltd.

Qingdao Baiyang Manufacturing 98,304,300 Pharmaceutical production and under common control

Qingdao City Qingdao City 56.19%

Pharmaceutical Co., Ltd. .00 Sales Business Merger Qingdao Baiyang Investment

500,000,00 Group Co., Ltd. under common control Qingdao City Qingdao City Investment business 100.00%

0.00 Business Combination Company

Beijing Baiyangda

66,000,000 Chengdu Pharmaceutical Technology under common control Beijing City Beijing City Investment business 92.87%

.00 BUSINESS COMBINED LIMITED.

Beijing Baiyangkang

50,000,000 He Technology Co., Ltd. under common control Beijing Beijing Investment business 40.00% 60.00%

.00 Business Combination Company

Qingdao Baiyangyong

10,000,000 Jian Investment and Development under common control Qingdao City Qingdao City Investment business 100.00%

.00 BUSINESS COMBINED LIMITED.

Qingdao Baiyangji

10,000,000 Ya Pharmaceutical Investment under common control Qingdao City Qingdao City Investment business 83.20%

.00 BUSINESS COMBINED LIMITED.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Qingdao Bodhi Wing

Ze Investment Management 1,000,000. Under common control

Qingdao City Qingdao City Investment Business 100.00%

Center (Limited 00 Business Incorporation Partnership)

Tianjin Huitai Enterprise

business management partnership under common control

500,000.00 Tianjin City Tianjin City Investment Business 100.00%

Business (Limited Business Incorporation Partnership)

Tianjin Juntech

Technology Development Partnership Under common control

500,000.00 Tianjin City Tianjin City Investment Business 100.00%

Business (Limited Business Incorporation Partnership)

Qingdao Baiyangyi

12,000,000 Ren Investment Management under common control Qingdao City Qingdao City Investment business 100.00%

.00 BUSINESS COMBINED LIMITED.

Baheal Pharmaceutical passed the establishment

10,000,000 Equipment sales

(Hunan) Changsha City Changsha City 51.00%

.00 sold

Co., Ltd. Beijing Baixinkang was established through

2,000,000. Equipment sales

Da Medical Devices Beijing City Beijing City 51.00%

00 sale

Co., Ltd. Company Baiyang Pharmaceutical is established through

50,000,000 Equipment sales

(Guangdong) has Guangzhou City Guangzhou City 100.00% obtained by the formula

.00 sold

Co., Ltd. Company Anhui Zhekang Medical

10,204,100 Sales of equipment and equipment Non-identical Control Therapy Technology Co., Ltd. Hefei City Hefei City 51.00%

.00 Sold under Business Combination Corporation

Beijing Baiyangchun passed the establishment

10,000,000 brand services,

Biomedical Science and Technology Beijing Beijing 55.00%

.00 Business Services

Co., Ltd. Company Baiyang Pharmaceuticals

Through the establishment of Fangzhi Technology (Lake 2,000,000. Equipment sales

Changsha City Changsha City 26.01% (formally acquired Zinan) Co., Ltd. 00 sales

Corporate Division

Baiyang medical student

Through the establishment of Fangwu Technology (Lake 5,000,000. Equipment sales

Changsha City Changsha City 26.01% (formally acquired Zinan) Co., Ltd. 00 sales

Corporate Division

Hangzhou Baiyangzhi

Through the establishment of Fangli Medical Research 5,000,000. Medical device transportation

Hangzhou City Hangzhou City 60.00% Sub-Service Co., Ltd. 00

Corporate Division

Note: 1 Hong Kong dollar

2 Hong Kong dollars

4 Hong Kong dollars

5 Hong Kong dollars

6 Hong Kong dollars

9 Hong Kong dollars

Explanation on the difference between the proportion of shareholding in subsidiaries and the proportion of voting rights:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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:

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:

(2) Important non-wholly owned subsidiaries

Unit: Yuan

Attributable to minority shareholders in this period. Announcement to minority shareholders in this period. Name of remaining company with minority shareholders’ equity at the end of the period. Shareholding ratio of minority shareholders.

Profit and loss Amount of dividends distributed

Qingdao Dongyuan Biotechnology Co., Ltd.

20.00% 2,982,889.12 8,000,000.00 40,771,337.02 Co., Ltd.

Shanghai Baiyang Pharmaceutical Co., Ltd.

39.80% 93,077,824.88 10,979,394.41 336,643,726.46 Co., Ltd.

Explanation on the difference between the shareholding ratio of minority shareholders of subsidiaries and the voting rights 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

dynamic capital dynamic negative dynamic capital dynamic negative

Said Assets Total Liabilities Total Assets Total Liabilities Total

property debt property debt

Qingdao

dongyuan

236,2 11,91 248,1 65,40 1,636 67,04 299,6 17,01 316,6 110,7 2,583 113,2Biology

63,75 4,543 78,29 7,465 ,254. 3,720 06,18 3,214 19,39 12,23 ,977. 96,20Technology

4.22 .76 7.98 .84 81 .65 1.33 .87 6.20 2.08 44 9.52Limited

company

Shanghai

Baiyang 1,265 1,063

766,7 498,6 380,8 66,64 447,5 589,3 474,5 356,7 86,10 442,8 Pharmaceutical ,422, ,904,

61,66 60,33 58,49 6,218 04,71 94,44 10,12 56,09 0,429 56,51 shares 002.5 573.7

3.77 8.80 5.52 .42 3.94 7.37 6.36 0.00 .81 9.81Limited 7 3

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 Qingdao Dongyuan 274,810,3 17,811,39 17,811,39 81,473,54 340,927,5 36,752,26 36,752,26 45,364,48

Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report Full Text Biotechnology 29.38 0.65 0.65 8.22 32.07 9.57 9.57 5.21 Co., Ltd.

Shanghai Baiyang

1,083,081 224,454,9 224,454,9 222,740,5 952,897,6 188,501,6 188,501,6 199,388,7 Pharmaceutical shares

,008.20 59.72 59.72 50.27 07.18 99.73 99.73 57.71 Co., Ltd.

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 owner’s equity share in the subsidiary changes and the subsidiary is still controlled (1) Description of the change in the owner’s equity share in the subsidiary

(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

--cash

--Fair value of non-cash assets

Total purchase cost/disposal consideration

Less: Share of net assets of subsidiaries calculated based on the proportion of equity acquired/disposed of

difference

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

Main place of business of the joint venture or joint venture Place of registration Nature of business Shareholding ratio Concern for the joint venture or joint venture

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Name of joint ventures Accounting treatment method for direct and indirect investments in joint ventures

Fashi Pharmaceuticals (Chinese pharmaceutical production and sales

Zhongshan City Zhongshan City 4.74% 28.38% Equity method

Shan) Co., Ltd. for sale

Japanese beauty and health drugs

(China) Co., Ltd. Huizhou City Huizhou City Pharmaceutical Sales 10.04% Equity method

company

Beijing Wuwei Kangke

Beijing Beijing Device Sales Equity Method

Technology Co., Ltd.

ZAP MEDICAL Equipment production and sales in California, USA

Cayman 17.69% Equity method

SYSTEM, LTD Asia for sale

Explanation on the difference between the proportion of shareholdings in joint ventures or associates and the proportion of voting rights:

The company has disposed of its equity in Beijing Wuweikang Technology Co., Ltd. in this period.

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:

The company has a director in both ZAP MEDICAL SYSTEM, LTD and ZAP MEDICAL SYSTEM, LTD, which can have a significant impact.

(2) Main financial information of important joint ventures

Not applicable

(3) Main financial information of important associates

Unit: Yuan Closing balance/amount of the current period Opening balance/amount of the previous period

ZAP Japanese health medicine ZAP Anshi Pharmaceutical Beijing Wuwei Anshi Pharmaceutical Beijing Wuwei

Products (中 MEDICAL Products (中 MEDICAL (Zhongshan) Kang Technology has (Zhongshan) Kang Technology has

国) Co., Ltd. SYSTEM, 国) Co., Ltd. SYSTEM, Co., Ltd. Co., Ltd.

Company LTD Company LTD

816,623,7 90,844,60 347,221,1 756,238,1 104,142,2 12,547,37 411,895,9 Current assets

30.15 0.37 29.81 62.09 32.35 2.13 38.20 Non-current capital 257,698,3 39,826,59 181,354,2 951,171.4 1,284,336 34,497,96

93,091.35

Production 23.82 2.13 45.87 5.10 3.44

1,074,322 90,937,69 387,047,7 937,592,4 105,093,4 13,831,70 446,393,9Total assets

,053.97 1.72 21.94 07.96 03.80 8.23 01.64

206,392,6 31,734,96 208,457,9 165,129,5 44,109,32 4,096,707 195,575,1 Current liabilities

97.47 3.63 97.42 28.88 8.94 .79 58.80Non-current negative 3,471,580 32,628,10 4,343,160 804,486.7 33,927,78Debt .00 7.18 .00 6 1.99

209,864,2 31,734,96 241,086,1 169,472,6 44,913,81 4,096,707 229,502,9 Total liabilities

77.47 3.63 04.60 88.88 5.70 .79 40.79

Minority shareholders 4,707,502 7,972,881

Equity .49 .99

belong to mother

859,750,2 59,202,72 145,961,6 760,146,8 60,179,58 9,735,000 216,890,9 Company shareholders

74.01 8.09 17.34 37.09 8.10 .44 60.85 Equity

Calculated based on shareholding ratio 284,749,2 5,943,953 25,816,81 251,753,7 6,042,030 3,898,526 41,512,92 cases 90.75 .90 5.12 91.12 .65 .95 9.91

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Net worth

3,361,542 3,333,080 320,999,4 3,369,280 3,332,184 42,554,83 320,999,4 Adjustments

.57 .42 95.61 .33 .59 3.05 95.61

4,180,366 3,330,264 320,999,4 4,180,366 3,330,264 50,863,02 320,999,4 --Goodwill

.23 .92 95.61 .23 .92 3.49 95.61 --Internal communication -

1,974,019

Yi Wei realized 2,815.50 9,611,599 -7,912.28

.73

Profit .49

8,800,513

--Others 2,792,843 9,831.95 8,308,190

.59

.39 .44

to joint ventures

Equity investment 288,110,8 9,277,034 346,816,3 255,123,0 9,374,215 46,453,36 362,512,4 Book value of equity investment 33.32 .32 10.73 71.45 .24 0.00 25.52

existence public

quotation link

business rights

beneficial investment

fair value

891,952,1 82,323,91 4,472,289 162,177,4 1,062,570 91,384,90 3,758,252 108,536,2 Operating income

08.32 4.43 .13 41.27 ,513.98 5.77 .64 73.42 - - - -

114,693,3 1,406,244 181,298,7 3,018,741

Net profit 5,855,967 232,314,4 6,419,719 166,999,2 57.42 .50 50.22 .77

.59 80.73 .74 96.66 Termination of operation

net profit

Other comprehensive

3,472,023 72,632.27 income

.89

- - -Comprehensive income 114,693,3 1,406,244 181,298,7 3,018,741

5,855,967 235,786,5 6,419,719 166,926,6Total 57.42 .50 50.22 .77

.59 04.62 .74 64.39 Revenue this year

Arrivals from 4,967,865 223,956.0 4,967,865 450,068.3

Associates .00 0 .00 0

of dividends

Other notes:

(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

Associates:

Total investment book value 242,835,284.96 54,161,344.83 Total of the following items calculated based on shareholding ratio

--Net profit -12,016,968.41 -1,357,283.18

The full text of the 2025 annual report of Qingdao Baiyang Pharmaceutical Co., Ltd. Other 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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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

Unit: Yuan Included in the current period

New additions in the current period are transferred to other changes and assets/receipts in the current period. Opening balance. Non-professional income. Ending balance.

Amount of subsidy Amount of other income Motivation Amount of beneficiary

related to assets

11,434,936 3,162,000. 1,691,019. 12,905,917

Deferred income/relative to income.36 00 12 .24

11,434,936 3,162,000. 1,691,019. 12,905,917

total

.36 00 12 .24

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

Modern Compound Traditional Chinese Medicine Quality Control Standards for the International Market

711,007.99 737,392.15 Quasi R&D and process improvement (special project)

Fuzheng Huayu Capsule National High-tech Industrialization Demonstration

300,000.00 300,000.00 Engineering Project

13th Five-Year Plan: International Common Research Supplement on Sustained and Controlled Release of Solids

222,333.32 243,000.00 stickers

Eomeprazole magnesium enteric-coated pellet capsule technology

77,482.80 168,655.55 Application research and development

Technical transformation project for advanced treatment of traditional Chinese medicine extraction wastewater 64,000.00 64,000.00 Technical transformation subsidy 172,548.84 26,160.02 Yuepu Town’s special fund to promote social and economic development

9,360,000.00 5,600,000.00 items

Industrial support funds 5,691,980.03 5,560,700.00 Job stabilization/job expansion/employment subsidies 331,853.01 1,113,764.57 Special funds to promote high-quality economic development 5,000,000.00

High-quality development policy funds for the biomedical industry 3,955,000.00

Others 829,996.15 1,509,361.40Total 26,716,202.14 15,323,033.69Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

12. Risks related to financial instruments

Various risks arising from financial instruments

The company faces various financial risks in the course of its operations: credit risk, liquidity risk and market risk (including exchange rate risk, interest rate risk and other price risks). The above financial risks and the risk management policies adopted by the Company to reduce these risks are as follows:

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. The Company's risk management is carried out by the Risk Management Committee in accordance with policies approved by the Board of Directors. The Risk Management Committee identifies, evaluates and avoids relevant risks through close cooperation with other business departments of the Company. The Company's internal audit department conducts regular audits on risk management controls and procedures and reports the audit results to the Company's Audit Committee.

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) Credit risk

Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, causing the company to suffer financial losses.

The Company mainly faces customer credit risks caused by credit sales. Before entering into new contracts, the Company conducts an assessment of the credit risk of new customers, including external credit ratings and, in some cases, bank references when this information is available. The company sets a credit sales limit for each customer, which is the maximum amount that does not require additional approval.

The company ensures that the company's overall credit risk is within a controllable range through quarterly monitoring of existing customer credit ratings and monthly review of aging analysis of accounts receivable. When monitoring customer credit risk, group customers according to their credit characteristics. Customers rated as "high risk" will be placed on the restricted customer list, and only with additional approval, the company can sell to them on credit in the future period, otherwise they must be required to pay the corresponding amount in advance.

(2) Liquidity risk

Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations settled by delivering cash or other financial assets.

The Company's policy is to ensure that sufficient cash is available to meet its debt obligations as they fall due. Liquidity risk is centrally controlled by the Company's financial department. The Finance Department ensures that the company has sufficient funds to repay its debt under all reasonable forecasts by monitoring cash balances, marketable securities that are readily liquidable, and rolling forecasts of cash flows over the next 12 months. At the same time, we continue to monitor whether the company complies with the provisions of the borrowing agreement and obtain commitments from major financial institutions to provide sufficient standby funds to meet short-term and long-term funding needs.

The Company's various financial liabilities are listed as follows based on undiscounted contractual cash flows by maturity date:

Ending balance (yuan)

That is

Total undiscounted contract amount for project

Within 1 year 1-2 years 2-5 years More than 5 years Book value compensation

Also

Short-term borrowings 1, 932,284,973.10 1, 932,284,973.10 1,932,284,973.10 Notes payable 457,358,356.87 457,358,356.87 457,358,356.87 Accounts payable 761,244,213.43 761,244,213.43 761,244,213.43 Other payables

351,199,191.59 351,199,191.59 351,199,191.59 models

Other flows

18,022,594.78 18,022,594.78 18,022,594.78 Liabilities

bonds payable

(including one year

6,072,105.33 11,495,283.76 887,570,327.70 905,137,716.79 787,159,458.62 Due within

part)

Lease liability

(including one year

39,795,867.85 33,304,743.29 58,246,062.24 32,528,181.72 163,874,855.10 143,864,075.64 due within

part)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

long term borrowing

(including one year

44,615,302.25 48,026,228.00 242,245,263.84 181,760,000.00 516,646,794.09 516,646,794.09 Due within

part)

Total 3, 610,592,605.20 92,826,255.05 1,188,061,653.78 214,288,181.72 5,105,768,695.75 4,967,779,658.12

Balance at the end of the previous year (yuan)

That is

Total undiscounted contract amount for project

Within 1 year 1-2 years 2-5 years More than 5 years Book value compensation

Also

Short-term borrowings 1, 098,574,415.39 1, 098,574,415.39 1,098,574,415.39 Notes payable 397,938,509.16 397,938,509.16 397,938,509.16 Accounts payable 764,569,585.29 764,569,585.29 764,569,585.29 Other payables

560,404,147.45 560,404,147.45 560,404,147.45

Other flows

15,532,928.08 15,532,928.08 15,532,928.08Liabilities

bonds payable

(including one year

3,036,487.64 7,266,708.39 899,194,319.21 909,497,515.24 757,827,374.42 due within

part)

Lease liability

(including one year

27,866,059.48 22,596,886.72 47,985,308.77 31,980,661.10 130,428,916.07 130,428,916.07 Due within

part)

long term borrowing

(including one year

40,377,300.44 34,141,391.00 165,031,491.84 158,600,000.00 398,150,183.28 398,150,183.28 Due within

part)

Total 2, 908,299,432.93 64,004,986.11 1,112,211,119.82 190,580,661.10 4,275,096,199.96 4,123,426,059.14 (3) Market risk

Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to market price changes, including exchange rate risk, interest rate risk and other price risks.

Interest 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-bearing financial instruments with fixed interest rates and floating interest rates expose the Company to fair value interest rate risk and cash flow interest rate risk respectively. The Company determines the ratio of fixed-rate and floating-rate instruments based on market conditions, and maintains an appropriate mix of fixed-rate and floating-rate instruments through regular review and monitoring. When necessary, the Company will use interest rate swap instruments to hedge interest rate risks.

On December 31, 2025, with other variables held constant, if the borrowing rate calculated on a floating rate basis increases or decreases by 100 basis points, the company's net profit will decrease or increase by RMB 15,493,666.40 (December 31, 2024: RMB 13,807,595.04). Management believes that 100 basis points reasonably reflects the reasonable range of possible changes in interest rates over the next year.

Exchange 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.

The Company continuously monitors the scale of foreign currency transactions and foreign currency assets and liabilities to minimize the foreign exchange risks it faces. In addition, the company may also sign forward foreign exchange contracts or currency swap contracts to avoid exchange rate risks. During this period and the previous period, the Company did not sign any forward foreign exchange contract or currency swap contract. The exchange rate risk faced by the Company mainly comes from financial assets and financial liabilities denominated in US dollars. The amounts of foreign currency financial assets and foreign currency financial liabilities converted into RMB are listed as follows:

Item Ending Balance Previous Year Ending Balance

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

U.S. dollar Other foreign currencies Total U.S. dollars Other foreign currencies Total monetary funds 216,060,608.10 38,121,579.45 254,182,187.55 175,464,124.43 3,163,856.27 178,627,980.69 Accounts receivable 9,231,573.77 9,231,573.77 24,349,176.10 2 4,349,176.10 Other receivables 753,257.66 252,108.12 1,005,365.78 1,056,649.95 30,946.40 1,087,596.35

Total assets 226,045,439.53 38,373,687.57 264,419,127.10 200,869,950.48 3,194,802.67 204,064,753.14 Accounts payable 8,889,954.27 43,430.32 8,933,384.59 20,802,124.89 44,454.41 20,846,579.30 Other payables 171,706.36 171,706.36 114,977.13 114,977.13 Taxes payable 18,695.98 10,749,711.98 10,768,407.96 29,632.31 29,632.31 Employee benefits payable 16,257.96 16,257.96 5,556.24 5,556.24 Total liabilities 8,908,650.25 10,981,106.62 19,889,756.87 20,831,757.20 164,987.78 20,996,744.98

Net amount 217,136,789.28 27,392,580.95 244,529,370.23 180,038,193.28 3,029,814.89 183,068,008.16 On December 31, 2025, with all other variables held constant, if the RMB appreciates or depreciates by 5% against the US dollar, the company will increase or decrease its net profit by RMB 10,856,839.46 (December 31, 2024: RMB 9,001,909.66). Management believes that 5% reasonably reflects the reasonable range of possible changes in the RMB against the US dollar in the next year.

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 Determining transfer method of derecognition. Nature of financial assets transferred. Amount of financial assets transferred. Derecognition status.

Basis

Financial assets in receivables financing have not been transferred, and bills have been discounted and endorsed 306,432,845.21 Derecognized

The bank acceptance bill has expired and the ownership of the financial assets has been transferred. Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Substantially all risks and rewards are transferred to the transferee. The financial assets have been transferred, but the notes receivable have not yet matured.

Bank acceptance bills and commercial bills that have not discounted or endorsed financial asset ownership bills 28,022,594.78 Not derecognized

on nearly all risks and industry acceptance bills

The total remuneration transferred to the transferee is 334,455,439.99

(2) Financial assets derecognized due to transfer

Applicable □Not applicable

Unit: yuan Gain or loss items related to derecognition Method of transferring financial assets Amount of financial assets derecognized

lose

Accounts receivable financing Bill endorsement and discount 306,432,845.21 -88,236.95 Total 306,432,845.21 -88,236.95

(3) Asset transfer financial assets that continue to be involved

□Applicable Not applicable

Other instructions

13. Disclosure of fair value

Closing fair value of assets and liabilities measured at fair value

Unit: Yuan Ending Fair Value

Item Level 1 fair value measurement Second level fair value measurement Third level fair value measurement

total

quantity quantity quantity

1. Sustained fair value

Measurement

(1) Trading finance

264,459,992.60 264,459,992.60 production

Measured at fair value and

The changes are included in the current profit and loss 264,459,992.60 264,459,992.60 financial assets

(2) Investment in equity instruments 264,459,992.60 264,459,992.60 Accounts receivable financing 404,172,992.32 404,172,992.32 Other non-current financial assets 14,736,794.88 14,736,794.88 Continuously measured at fair value

Total assets of 264,459,992.60 404,172,992.32 14,736,794.88 683,369,779.80

2. Non-sustainable fair price

value measurement

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

The input values used in fair value measurement are divided into three levels:

The first level input value is the unadjusted quoted price in an active market for the same asset or liability that can be obtained on the measurement date.

For ongoing and non-continuous second-level fair value measurement items, the valuation technology used and the qualitative and quantitative information of important parameters. The second-level input value is the directly or indirectly observable input value of the relevant assets or liabilities in addition to the first-level input value.
For continuous and non-continuous third-level fair value measurement items, the valuation techniques used and the qualitative and quantitative information of important parameters. The third-level input value is the unobservable input value of the relevant assets or liabilities.

The level to which the fair value measurement result belongs is determined by the lowest level to which the input value that is significant to the overall fair value measurement belongs.

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
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

The proportion of shareholding and the proportion of voting rights of Baheal Pharmaceutical Group

Qingdao City External Investment 500 million yuan 67.22% 67.22% Co., Ltd.

Description of the parent company of this enterprise

The parent company and controlling shareholder of the company is Baiyang Pharmaceutical Group Co., Ltd.. During the reporting period, the registered capital of Baiyang Pharmaceutical Group Co., Ltd. was 500 million yuan. The shareholders of Baiyang Pharmaceutical Group are Beijing Baiyang Huikang Technology Innovation Development Co., Ltd., Mr. Fu Gang, Ms. Song Qing, Mr. Chen Haishen, and Mr. Zhu Xiaowei. The shareholding ratios are 80%, 10.4%, 3.2%, 3.2% and 3.2% respectively.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

The ultimate controller of this enterprise is Fu Gang.

Other notes:

Information about the company’s subsidiaries

For details of the company's subsidiaries, please refer to Note "10. Equity in Other Entities".

Information on joint ventures and associated enterprises of the enterprise

For details of the company's important joint ventures or associates, please refer to Note "10. Interests in Other Entities".

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 Relationship between other related parties and the company Fu Gang Actual controller

Song Qing Director of the company, director and general manager of the controlling shareholder Zhu Xiaowei Director and deputy general manager of the company, director of the controlling shareholder Chen Haishen Director of the company and director of the controlling shareholder

Wang Guoqiang served as the company’s director, deputy general manager, board secretary, and financial director during the reporting period. He resigned from the above positions on December 17, 2024, and currently holds the position of holding

shareholder director

Li Zhen is the company’s director, deputy general manager, board secretary and financial director, holding

shareholder director

Zhang Yuan Director and Deputy General Manager of the Company

Ho Kwok Wai, Independent Director of the Company

Lu Yindi Independent Director of the Company

Hao Xianjing Independent Director of the Company

Wang Biquan, Deputy General Manager of the Company

Wang Tingwei Deputy General Manager of the Company

Close family members of the above-mentioned natural persons and their associated enterprises

Tianjin Huitong Asset Management Partnership (Limited Partnership) Tianjin Huizhong Asset Management Partnership (Limited Partnership), a company in which the actual controller Fu Gang serves as the executive partner Tianjin Haohui Asset Management Partnership (limited partnership), a company in which the actual controller Fu Gang serves as the executive partner Tianjin Huitong Asset Management Partnership (Limited Partnership), a company in which the actual controller Fu Gang serves as the executive partner Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd., a company in which the actual controller Fu Gang serves as executive partner (formerly known as: Beijing Baiyang Chengchuang Enterprise Pharmaceutical Investment Co., Ltd. controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd.)

Qingdao Bodhi Kanghe Medical and Health Industry Investment Co., Ltd. An enterprise controlled by the controlling shareholder Baheal Group

Qingdao Putike Biomedical Technology Co., Ltd. Qingdao Baiyang Health Medical Technology Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Qingdao Baiyang Dacheng Medical Equipment Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Qingdao Zhichengxin Advertising Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Zhude Zhiming Investment Management Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Qingdao Baiande Intelligent Medical Technology Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Beijing Baiyang Zhixin Medical Research Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Qingdao Baiyang Zhixin Technology Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Shenzhen Baiyang Zhixin Medical Research Co., Ltd., an enterprise controlled by Beijing Baiyang Zhixin Medical Research Co., Ltd. Enterprises controlled by Beijing Baiyang Zhixin Medical Research Co., Ltd.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Beijing Baiyangjia Health Management Co., Ltd. Beijing Baiyang Guoxin Medical Technology Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Sanya Baiyang Zhihe Investment Holding Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Beijing Baiyang Medical Equipment Manufacturing Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Hebei Baiyang Chengchuang Pharmaceutical Development Co., Ltd., an enterprise controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Nancaoping Landscaping Design Co., Ltd., an enterprise controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Baiyang Zhongxin Health Industry Management Development Co., Ltd., an enterprise controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Shuangrui Mantech Biotechnology Co., Ltd., a company controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Qingdao Baiyang Huibao Commercial Services Co., Ltd., a company controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Baiyang Zhongxin Health Investment Management Co., Ltd., a company controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Baiyang Houdao Pharmaceutical Co., Ltd., a company controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Baiyang Ruixin Equity Investment Fund Partnership (Limited Partnership), a company controlled by Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 42.86% and served as the

Executive Partner's Enterprise

Beijing Mentougou District Baiyang Zhuxin Equity Investment Fund Partnership (a limited partnership in which Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invests 6.38% and serves as a partner) is the executive partner

Qingdao Huizhu Baiyang Medical and Health Industry Investment Fund Partnership (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 0.1% and served as executive

business partners

Qingdao Huizhu Baiyang Health Industry Investment Fund (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. holds 0.2% of the shares and serves as the executive

business partners

Beijing Mentougou District Baiyang Pharmaceutical Industry Investment Fund (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 0.4% and served as executive

business partners

Qingdao Baiyang Pharmaceutical Big Health Investment Management Center (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 1.5% and served as executive

business partners

Langfang Linkong Baiyang Equity Investment Fund Partnership (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 0.5% and served as executive

business partners

Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 1.0% and served as executive

business partners

Qingdao Bodhi Yonghe Investment Management Center (Limited Partnership) Beijing Baiyang Zhongxin Health Investment Management Co., Ltd. invested 0.70% and served as

Executive Partner's Enterprise

Qingdao Zhiyuan Huikang Investment Management Center (Limited Partnership) Beijing Baiyang Chengchuang Pharmaceutical R&D Co., Ltd. invests 90% and serves as executive affairs

Partner, controlling shareholder Baiyang Group invests 10% of the company

Qingdao Bodhi Medical Hospital Management Group Co., Ltd. Qingdao Huisheng Hospital Management Consulting Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Qingdao Huisheng Hele Hospital Management Co., Ltd., an enterprise controlled by Qingdao Bodhi Medical Hospital Management Group Co., Ltd. Qingdao Huisheng Yixin Nursing Co., Ltd., an enterprise controlled by Qingdao Bodhi Medical Hospital Management Group Co., Ltd. Beijing Pengyi Times Human Resources Development Co., Ltd., an enterprise controlled by Qingdao Huisheng Hele Hospital Management Co., Ltd. Qingdao Bodhi Medical Hospital Management Group Co., Ltd. holds 70% of the shares of Beijing Yuanrong Health Hospital Management Co., Ltd. Qingdao Yijiayuan Health Management Service Group Co., Ltd., an enterprise controlled by Qingdao Bodhi Medical Hospital Management Group Co., Ltd. Qingdao Yishanyuan Traditional Chinese Medicine Clinic Co., Ltd., an enterprise controlled by Qingdao Bodhi Medical Hospital Management Group Co., Ltd. Qingdao Yishan Human Resources Management Co., Ltd., an enterprise controlled by Qingdao Yijiayuan Health Management Service Group Co., Ltd. Qingdao Baiyang Lianxin Housekeeping Service Co., Ltd., an enterprise controlled by Qingdao Yijiayuan Health Management Service Group Co., Ltd. Qingdao Baiyang Health Industrial Park Co., Ltd., an enterprise controlled by Qingdao Yijiayuan Health Management Service Group Co., Ltd. Qingdao Baiyang Yunjian Hotel Management Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Qingdao Baiyang Oasis Home Hotel Co., Ltd., an enterprise controlled by Qingdao Baiyang Health Industrial Park Co., Ltd. An enterprise controlled by Qingdao Baiyang Oasis Home Hotel Co., Ltd. Beijing Baiyang Oasis Home Hotel Management Co., Ltd. An enterprise controlled by Qingdao Baiyang Oasis Home Hotel Co., Ltd. Langfang Baiyang Oasis Home Catering Management Co., Ltd. An enterprise controlled by Qingdao Baiyang Oasis Home Hotel Co., Ltd. Qingdao Zhikang Hotel Management Co., Ltd. (formerly known as: Qingdao Juzhitang Hotel Management Enterprise Management Co., Ltd. controlled by Qingdao Baiyang Health Industrial Park Co., Ltd.)

Qingdao Jinyi Hotel Co., Ltd. Enterprises controlled by Qingdao Baiyang Health Industrial Park Co., Ltd. Qingdao Baiyang Zhuozheng Smart Health Industry Management Co., Ltd. Enterprises controlled by Qingdao Baiyang Health Industrial Park Co., Ltd. Qingdao Yichuang Wenhe Health Industry Development Co., Ltd. Enterprises controlled by Qingdao Baiyang Health Industrial Park Co., Ltd. Qingdao Haihui Property Management Co., Ltd. Enterprises controlled by Qingdao Baiyang Health Industrial Park Co., Ltd. Qingdao Chengtian Shangshi Catering Management Co., Ltd. Enterprises controlled by Qingdao Haihui Property Management Co., Ltd.

Qingdao Baiyang Bodhi Biodiagnostics Co., Ltd. Suzhou Fangke Biotechnology Co., Ltd., an enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Suzhou Fangke Medical Testing Laboratory Co., Ltd., an enterprise controlled by Qingdao Baiyang Bodhi Biodiagnostics Co., Ltd. Enterprises controlled by Suzhou Fangke Biotechnology Co., Ltd.

Qingdao Bodhi Huisheng Medical Testing Co., Ltd. Enterprises controlled by Qingdao Baiyang Bodhi Biological Diagnostics Co., Ltd.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Tongxin Biotechnology (Beijing) Co., Ltd. An enterprise controlled by Qingdao Baiyang Bodhi Biodiagnostic Co., Ltd. Qingdao Yifuxian Network Technology Co., Ltd. An enterprise controlled by the controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. Gansu Yifuxian Network Technology Co., Ltd. An enterprise controlled by Qingdao Yifuxian Network Technology Co., Ltd. Baiyang Investment Group Co., Ltd. (HK) Enterprises controlled by the actual controller Fu Gang

BAHEAL US Investment Co., Ltd. Dinghe Capital Co., Ltd. (HK), a company controlled by BAHEAL Investment Group Co., Ltd. (HK). Hong Kong Wisdom Medical Investment Co., Ltd. (HK), a company controlled by BAHEAL Investment Group Co., Ltd. (HK). Hong Kong Jianxin International Investment Co., Ltd. (BVI), a company controlled by BAHEAL Investment Group Co., Ltd. (HK). BaHEAL New Media Investment Co., Ltd. (BVI), a company controlled by BAHEAL Investment Group Co., Ltd. (HK). BaHEAL International Pharmaceutical Holdings Co., Ltd. (BVI), a company controlled by BAHEAL Investment Group Co., Ltd. (HK) Baiyang Zhongxin Health Industry Investment Co., Ltd. (HK), an enterprise controlled by Baiyang Investment Group Co., Ltd. (HK). Beijing Baiyang Tongxing Management Consulting Co., Ltd., an enterprise controlled by Baiyang Investment Group Co., Ltd. (HK). Enterprises controlled by Fu Gang, the actual controller.

Beijing Baiyang Huikang Technology Innovation Development Co., Ltd. An enterprise controlled by Beijing Baiyang Tongxing Management Consulting Co., Ltd. Baiyang Investment Holding Group Co., Ltd. (BVI) An enterprise controlled by the actual controller Fu Gang

Baiyang Health Industry Investment Co., Ltd. (BVI) An enterprise controlled by Baiyang Investment Holding Group Co., Ltd. (BVI) American Weitan Health Industry Group Co., Ltd. (BVI) An enterprise controlled by Baiyang Investment Holding Group Co., Ltd. (BVI) Beijing Baiyang Sumai Medical Technology Co., Ltd. Enterprises controlled by the actual controller Fu Gang

Qingdao Bodhi Yongjian Investment Management Center (Limited Partnership) An enterprise controlled by the actual controller Fu Gang

Qingdao Gangfengtai Real Estate Co., Ltd. An enterprise controlled by the actual controller Fu Gang

Hong Kong Feng International Industrial Group Co., Ltd. (HK) An enterprise controlled by the actual controller Fu Gang

Hong Kong Haina Business Services Co., Ltd. (HK) An enterprise controlled by the actual controller Fu Gang

Baiyang Zhihe Holdings Co., Ltd. (BVI) A company controlled by the actual controller Fu Gang

Ba Yang Investment Group Co., Ltd. (Cayman) Ba Yang Health Investment Co., Ltd. (BVI), an enterprise controlled by Ba Yang Zhihe Holdings Co., Ltd. (BVI) Ba Yang Ruisheng Investment Co., Ltd. (HK), a company controlled by Ba Yang Investment Group Co., Ltd. (Cayman) Ba Yang Zhixin Co., Ltd. (BVI), an enterprise controlled by Ba Yang Health Investment Co., Ltd. (BVI) Enterprises controlled by the actual controller Fu Gang

Beijing Enreni Biotechnology Co., Ltd. Chairman Fu Gang serves as director, Qingdao Baiyang Pharmaceutical Health Investment Management Center

(Limited partnership) A company holding 11.67% of the shares

Anshi Pharmaceutical (Zhongshan) Co., Ltd. Chairman Fu Gang and Director Zhu Xiaowei serve as directors. Baheal Pharmaceutical directly holds 4.74% of the shares and indirectly holds 28.38% of the shares through Baheal Group Co., Ltd. (HK).

enterprise

Anshi Biotechnology (Zhongshan) Co., Ltd. Ganda Pharmaceutical (Zhongshan) Co., Ltd., a company controlled by Anshi Pharmaceutical (Zhongshan) Co., Ltd. Zhongshan Huilai Bone Regenerative Biopharmaceutical Investment Partnership (Limited Partnership), a company controlled by Anshi Pharmaceutical (Zhongshan) Co., Ltd. Zhongshan Anshi Biopharmaceutical Co., Ltd., an enterprise controlled by Anshi Pharmaceutical (Zhongshan) Co., Ltd. Anshi Pharma Research (Zhongshan) Co., Ltd., a company controlled by Anshi Pharmaceutical (Zhongshan) Co., Ltd. Ruibo Pharmaceutical Technology (Zhongshan) Co., Ltd., a company controlled by Zhongshan Anshi Investment Holding Co., Ltd. Hongshi Sunshine Health Technology (Beijing) Co., Ltd., a company controlled by Anshi Pharmaceutical Research (Zhongshan) Co., Ltd. Enterprises in which Chairman Fu Gang serves as a director

Suzhou Keboruijun Biomedical Technology Co., Ltd. Qingdao Baiyang Juren Enterprise Management Service Center (Limited Partnership), a company controlled by Beijing Enrui Ni Biotechnology Co., Ltd. Qingdao Baiyang Chenxin Enterprise Management Service Center (Limited Partnership), a company where director Song Qing invested 67.93% and serves as an executive partner Qingdao Baiyang Chenxin Enterprise Management Service Center (limited partnership), a company where director Song Qing invests 10% and serves as an executive partner Baiyang Zhirong Holdings Co., Ltd. (BVI), a company in which director Song Qing invested 31.19% of the capital and serves as executive partner. A company controlled by director Song Qing

Companies controlled by Song Qing, director of Baiyang Zhiji Co., Ltd. (BVI)

Beijing Baiyang Yongjian Management Consulting Co., Ltd. A company controlled by director Zhu Xiaowei and serving as a director

Beijing Baiyang Yongkang Management Consulting Co., Ltd. A company controlled by director Chen Haishen and serving as a director

Boyu Weikang (Ningxia) Internet Hospital Co., Ltd. Boyu Weikang Zhuozhou Advertising Co., Ltd., a company controlled by Beijing Boyu Weikang Information Technology Co., Ltd. Beijing Renze Yikang Medical Health Technology Co., Ltd., a company controlled by Beijing Boyu Weikang Information Technology Co., Ltd. Beijing Jiluntai Pharmaceutical Co., Ltd., a company controlled by Beijing Boyu Weikang Information Technology Co., Ltd. Director Zhu Xiaowei serves as a director. Qingdao Huizhu Baiyang Health Industry Investment Fund (Limited Partnership) holds 25.48% of the shares. Qingdao Baiyang Health Industrial Park shares

Co., Ltd. holds 6.86% of the shares

Beijing Jiluntai Technology Co., Ltd. Enterprises controlled by Beijing Jiluntai Pharmaceutical Co., Ltd.

Beijing Yuanzole Medical Technology Co., Ltd. An enterprise controlled by Beijing Giluntai Pharmaceutical Co., Ltd.

Companies controlled by Zhu Xiaowei, director of Baiyang Zhiyang Holdings Co., Ltd. (BVI)

Companies controlled by Zhu Xiaowei, director of Baiyang Zhitong Co., Ltd. (BVI)

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Hong Kong Huida Holdings Group Co., Ltd. (HK) director Zhu Xiaowei holds 50% of the shares and serves as director, and director Chen Haishen holds 50% of the shares and serves as

director's business

Baiyang Zhixin Holdings Limited (BVI) A company controlled by director Chen Haishen

Companies controlled by Chen Haishen, director of Baiyang Zhiguang Co., Ltd. (BVI)

Zhuhai Puhuicheng Mining Co., Ltd. A company controlled by controlling shareholder and director Wang Guoqiang

Tianjin Qingzheng Asset Management Partnership (Limited Partnership) The controlling shareholder and director Wang Guoqiang invested 14.66% and served as the executive partner

of enterprises

Beijing Wuweikang Technology Co., Ltd. was an associated company during the reporting period

Qingdao Wuweikang Technology Co., Ltd. An enterprise controlled by Beijing Wuweikang Technology Co., Ltd.

Qingdao Wuweixinghua Medical Equipment Co., Ltd. An enterprise controlled by Beijing Wuweikang Technology Co., Ltd.

Qingdao Wuwei Yin'an Technology Co., Ltd. An enterprise controlled by Beijing Wuweikang Technology Co., Ltd.

Qingdao Wuweijia Technology Co., Ltd. An enterprise controlled by Beijing Wuweikang Technology Co., Ltd.

Aiyuan Holdings Co., Ltd. (BVI) was a company in which Zhang Yuan once held 100% of the shares and served as a director. At the end of 2025, Zhang Yuan will no longer

Shareholdings and tenure

ShineWing Certified Public Accountants (Special General Partnership) Jinan Branch An enterprise headed by independent director Hao Xianjing

Beijing Baiyang Gongxing Management Consulting Co., Ltd. A company controlled by director Song Qing and serving as director and manager

Wang Tingwei, deputy general manager of Rimeigen Pharmaceuticals (China) Co., Ltd., serves as a director, an associate of Baheal Pharmaceuticals

Wang Tingwei, deputy general manager of Zap Medical System, Ltd., an associate of Baheal Pharmaceuticals, serves as a director.

Zap Surgical System, Inc. (Incorporated in Delaware, a wholly-owned subsidiary of Zap Medical System

USA)

Zap Surgical Japan Godo Kaisha(GK)(Japan) A wholly owned subsidiary of Zap Surgical System

Zap Surgical India Pvt.Ltd(India) A wholly-owned subsidiary of Zap Surgical System

Zap Therapeutic Solution Limited (Hong Kong) (Chinese Zap Medical System wholly-owned subsidiary

Name: Ruipu Co., Ltd.)

Zhuhai Hengqin Reipu Medical Equipment Co., a wholly-owned subsidiary of Zap Therapeutic

Ltd. (PRC) (Chinese name: Zhuhai Hengqin Ruipu Medical Equipment Co., Ltd.)

Tianjin Zhihe Yongsheng Technology Development Partnership (Limited Partnership) Director, deputy general manager, secretary of the board of directors, financial director, holding company

Li Zhen, the director of the shareholder, invested 50% of the capital and serves as the executive partner of Beijing Huantide Jiarun Technology Development Partnership (Limited Partnership). The company's director, deputy general manager, board secretary, financial director, and controlling shareholder

Beijing Houdao Yingxin Technology Development Partnership (Limited Partnership), a company in which shareholder Li Zhen contributes 90% of the capital and serves as executive partner, is the company’s director, deputy general manager, board secretary, financial director, and holding

Suzhou Tongxin Medical Technology Co., Ltd., a shareholder whose director Li Zhen invested 90% of the capital and serves as executive partner, has been unanimously recognized as a related party since its listing and has continued transactions (Qingdao Huizhu Baiyang Medical Healthcare Industry Investment Fund Partnership (Limited Partnership) holds 7.59%, Beijing Mentougou District Baiyang Zhuxin Equity Investment Fund Partnership (Limited Partnership) holds 5.48%, Baiyang Pharmaceutical Group Co., Ltd. holds 3.16%, Qingdao Bodhi Medical

An enterprise in which Medical Hospital Management Group Co., Ltd. holds 0.50% shares)

Xinlian Medical Technology (Shanghai) Co., Ltd. An enterprise controlled by Suzhou Tongxin Medical Technology Co., Ltd.

Tongxin Medical Technology (Wuhan) Co., Ltd. An enterprise controlled by Suzhou Tongxin Medical Technology Co., Ltd.

Tongxin Medical Technology (Beijing) Co., Ltd. An enterprise controlled by Suzhou Tongxin Medical Technology Co., Ltd.

Beijing Medis Medical Technology Co., Ltd. Original related party: Baheal Pharmaceutical Group Co., Ltd. holds 5.91% of the shares and served as vice president

A company whose manager Li Lihua serves as a director

Beijing Medis Medical Technology Co., Ltd. An enterprise controlled by Beijing Medis Medical Technology Co., Ltd.

Guangdong Medis Medical Technology Co., Ltd. An enterprise controlled by Beijing Medis Medical Technology Co., Ltd.

Zhongshan Lebo Ruichen Biopharmaceutical Co., Ltd. Director Zhu Xiaowei once served as a director and resigned in February 2024; Li Lihua served as a director, Baiyang Chengchuang holds 2.10% of the shares, and Qingdao Baiyang Pharmaceutical Health Investment

A company in which the management center (limited partnership) holds 9.84% of the shares

Qingdao Juzhitang Business Hotel Co., Ltd. A company once controlled by Qingdao Juzhitang Hotel Management Co., Ltd. will be closed in 2024

No longer holds shares in August

Baiyang Intelligent Technology Group Co., Ltd. Fu Gang, Song Qing, and Wang Biquan will no longer serve as directors in November 2024, and the controlling shares

Dongbaiyang Group will no longer hold shares in April 2024

Beijing Huishengxin International Education Consulting Co., Ltd. An enterprise controlled by Baiyang Intelligence

Beijing Baiyang Guoxin Intelligent Technology Co., Ltd. Enterprises controlled by Beijing Medis Medical Technology Co., Ltd.

Qingdao Palm Medical Information Technology Co., Ltd. An enterprise controlled by Baiyang Intelligence

Hunan Baiyang Intelligent Technology Co., Ltd. An enterprise controlled by Baiyang Intelligent

Beijing Yigezaim Information Technology Co., Ltd. An enterprise that Baheal Intelligence has a significant impact on

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Beijing Yihuikang Intelligent Technology Co., Ltd. An enterprise that Baiyang Intelligent has a significant impact on

Qingdao Bodhi Information Technology Co., Ltd. Qingdao Baiyang Ruiying Medical Technology Co., Ltd., a company once controlled by Baheal Intelligent, but no longer holds shares in November 2024. Shanghai Traditional Chinese Medicine Dayuanchuang Technology Co., Ltd., a company once controlled by Baheal Intelligent, but no longer holds shares in November 2024. Jinan Shine Wing Zhonghe Tax Agent Co., Ltd., a company on which Shanghai Baheal Pharmaceutical Co., Ltd. has a significant impact. A company in which independent director Hao Xianjing holds 29% of the shares.

Qingdao Baiyang Shenghui Medical Equipment Co., Ltd. was a subsidiary during the reporting period

Beihai Kangcheng (Shanghai) Biotechnology Co., Ltd. Enterprises controlled by Beihai Kangcheng Pharmaceutical Co., Ltd.

CANbridge Care Pharma Hongkong Limited (Chinese name: Beihai Kangcheng Pharmaceutical Co., Ltd. controlled enterprises

Haikangcheng Zhenai Pharmaceutical Hong Kong Co., Ltd.)

CANBRIDGE PHARMACEUTICALS INC. (USA) An enterprise controlled by Beihai Kangcheng Pharmaceutical Co., Ltd.

Beihai Kangcheng (Suzhou) Biopharmaceutical Co., Ltd. CANbridge Care Pharma Hongkong Limited (Chinese name: Beihai

Enterprises controlled by Hai Kangcheng Zhenai Pharmaceutical Hong Kong Co., Ltd. Beihai Kangcheng (Beijing) Pharmaceutical Technology Co., Ltd. Enterprises controlled by Hai Kangcheng (Suzhou) Biopharmaceutical Co., Ltd. Beihai Kangcheng Co., Ltd. (Taiwan, China) Enterprises controlled by Beihai Kangcheng Pharmaceutical Co., Ltd.

Beihai Kangcheng Pharmaceutical Co., Ltd. (Cayman) subsidiary Baiyang Health Industry International Trading Co., Ltd. holds its shares and has appointed

appoint a non-executive director

Tianjin Jikun Pharmaceutical Technology Co., Ltd. An associated company over which the Company has significant influence

Qingdao Baiyangjia Health Technology Co., Ltd. (former name: Qingdao Shihuahui Hospital, an enterprise controlled by Beijing Baiyangjia Health Management Co., Ltd.

Ltd.)

Qingdao Baiyangjia Health Technology Co., Ltd. Shibei Hospital (formerly known as Qingdao Shibei Hospital) is an enterprise controlled by Beijing Baiyangjia Health Management Co., Ltd.

Hua Hui Hospital Co., Ltd. (Shibei Hua Hui Hospital)

Other notes: Beijing Medis Medical Technology Co., Ltd., Beijing Medi Zhongkang Technology Co., Ltd., Beijing Medi Jianeng Technology Co., Ltd., and Guangdong Medi Jiantong Technology Co., Ltd. are no longer related parties at this time.

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

Whether the transaction amount is exceeded

Related parties Related party transaction content Amount incurred in the current period Approved transaction quota Amount incurred in the previous period

Degree

Anshi Pharmaceutical (China

Purchase of goods 321,448,605.38 508,000,000.00 No 468,689,671.52 Shan) Co., Ltd.

Beijing Maidi Zhongconke

Purchase goods 0.00 No 34,369,991.15 Technology Co., Ltd.

Japanese beauty and health drugs (Chinese

Purchase of goods 24,836,459.48 39,600,000.00 No 22,382,009.32 Guo) Co., Ltd.

Suzhou Tongxin Medical Department

Purchase of goods 10,065,994.74 25,490,000.00 No 13,562,840.67 Technology Co., Ltd.

Beihai Kangcheng (Part 1)

Hai) Biotechnology has purchased goods 7,154,098.41 0.00 Yes

Ltd.

Baheal Pharmaceutical Group has

Accepting services 946,210.45 0.00 Yes

Ltd.

Beijing Baiyang Oasis Home

Park Hotel Management Co., Ltd. Receives services 5,286,982.77 4,660,546.77 Company controlled by controlling shareholder

Qingdao Baiyang Health Products Company accepts service general

Yes

Industrial Park Co., Ltd. Receives services 9,130,485.35 The quota is 5,442,705.46 Company 26,160,000.00

Qingdao Chengtian Shangshi Restaurant receiving services 4,735,890.14 1,177,944.90 Beverage Management Co., Ltd.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Qingdao Baiyang Oasis Hotel receiving services 3,573,159.16 1,063,239.34 Park Hotel Co., Ltd.

Qingdao Haihui Property Management receiving services 3,633,573.38 992,812.69 Management Co., Ltd.

Qingdao Bodhi Medical Hospital receiving services 820,522.00 848,584.00 Hospital Management Group Co., Ltd.

company

Langfang Baiyang Oasis Home receives services 599,241.60

Garden Catering Management Co., Ltd.

company

Hebei Baiyang Chengchuang Medical Service received 1,122,882.23

Pharmaceutical Development Co., Ltd.

Qingdao Baiyang Hui Insurance Company receives services 3,040.26 28,609.14 Industrial Service Co., Ltd.

company

Qingdao mobile medical information

Receiving services 2,739,852.85 3,400,000.00 No 1,287,142.09 Information Technology Co., Ltd.

Qingdao Wuweikang Technology

Purchase of goods 244,955.77 13,060,000.00 No 995,167.12 Co., Ltd.

Baiyang Intelligent Technology Collection Procurement of goods, acceptance

0.00 292,534.90 Tuan Co., Ltd. Service

Qingdao Zhikang Hotel Management

Management Co., Ltd. (formerly

Name: Qingdao Juzhi Purchased goods 9,215.94 Controlled by the controlling shareholder No 121,203.00 Tang Hotel Management Co., Ltd. Total purchased goods

company) The amount is

Tongxin Biotechnology 290,000.00

(Beijing) Co., Ltd. Purchase of goods 70,003.57 No 74,469.87 Company

Qingdao Centennial Health Medicine

Purchase of goods 13,274.34 13,200,000.00 No

Therapy Technology Co., Ltd.

Qingdao Baiyang Shenghui Medical Center

Purchase of goods 714,513.27 0.00 Yes

Medical Equipment Co., Ltd.

Beijing Yige Zaimuxin

Receive services 160,377.36 0.00 Yes

Information Technology Co., Ltd.

Lover Medical Technology

(Shanghai) Co., Ltd. Procurement of goods 9,294.75 0.00 Yes

Division

Tianjin Jikun Pharmaceutical Department

Receive services 283,018.87 0.00 Yes

Technology Co., Ltd.

List of goods sold/services provided

Unit: Yuan

Related parties Contents of related transactions Amount incurred in the current period Amount incurred in the previous period Anshi Pharmaceutical (Zhongshan) Co., Ltd. Brand services 154,979,448.75 180,057,297.57 Tongxin Biotechnology (Beijing) Co., Ltd.

Selling goods and providing services 3,864,991.08 2,676,743.71 Company

Baiyang Pharmaceutical Group Co., Ltd. Sales of goods and provision of services 2,797,291.20 3,352,026.10 Qingdao Bodhi Medical Hospital Management Group

Selling goods and providing services 597,677.68 885,235.23 Co., Ltd.

Suzhou Tongxin Medical Technology Co., Ltd.

Provision of services 179,115.04 44,778.76 Company

Qingdao Baiyang Oasis Home Hotel Co., Ltd.

Sales of goods 70,979.50 312.83 Company

Qingdao Wuweikang Technology Co., Ltd. provides services 18,396.23

Qingdao Chengtian Shangshi Catering Management Co., Ltd.

Goods sold 7,514.69

company

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Qingdao Baiyang Zhuozheng Smart Health Industry

Goods sold 3,034.52

Management Co., Ltd.

Qingdao Baiyang Huibao Commercial Services Co., Ltd.

Sales of goods 1,778.76 499,627.12 Responsible company

Nippon Pharmaceuticals (China) Co., Ltd.

Provision of services 4,129,178.37 2,407,827.20 Division

Qingdao Baiyang Bodhi Biodiagnostic Co., Ltd.

Services provided 10,713.59 Company

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

Trusteeship income/commitment Trustee/contractor confirmed in the current period Trustee/contractor Trustee/contracting capital Trusteeship/contracting start Trustee/contracting end

Package revenue pricing is based on managed revenue/contractor name party name product type start date end date

According to the income-related custody/contracting situation

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 Lessee Name Type of leased assets Lease income recognized in the current period Lease income recognized in the previous period Beijing Baiyang Chengchuang Pharmaceutical Research and Development Co., Ltd.

Company (former name: Beijing Baiyangcheng House Leasing 1,634,244.66 1,314,109.47 Chuang Pharmaceutical Investment Co., Ltd.)

Qingdao Bodhisattva Medical Laboratory Co., Ltd.

House rental 1,621,543.71 816,430.54 Company

Baiyang Pharmaceutical Group Co., Ltd. House rental 1,300,529.64 5,843,428.54 Qingdao Putike Biomedical Technology Co., Ltd.

House rental 202,548.72 202,548.72 Co., Ltd.

Beijing Baiyang Zhongxin Health Investment Management

House rental 148,868.77 74,638.31 Co., Ltd.

Beijing Baiyang Guoxin Medical Technology Co., Ltd.

House rental 60,205.24 45,425.42 Company

Beijing Wuweikang Technology Co., Ltd. House rental 58,017.93 89,128.75 Beijing Baiyang Medical Equipment Manufacturing Co., Ltd.

House rental 25,177.30

company

Beijing Baiyang Oasis Home Hotel Management House Rental 20,794.95 10,425.97

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Ltd.

Beijing Baiyangjia Health Management Co., Ltd.

House rental 18,607.64 17,015.31 Division

Beijing Yigezaimu Information Technology Co., Ltd.

House rental 18,607.64 9,329.31 Company

Beijing Zhongxin Chenghai Health Industry Management

House rental 18,607.64 9,329.31 Development Co., Ltd.

Beijing Yihuikang Intelligent Technology Co., Ltd.

House rental 13,955.73 9,329.31 Division

Qingdao Baiyangjia Health Technology Co., Ltd.

Company (former name: Qingdao Shihua Hui Medical House Leasing 28,216.20 Hospital Co., Ltd.)

Qingdao Wuweikang Technology Co., Ltd. House rental 6,434.22

As a lessee, our company:

Unit: Yuan

Simplified short-term treatment not included in lease liabilities

Variable leases measured by leases and low-value assets Lease liabilities assumed Increased right-of-use assets

rent paid

Lessor Lease asset Rental payment (if appropriate) Interest expense Asset

Name Product Category Use (if applicable)

Issued in this issue Issued in the previous issue Issued in this issue Issued in the previous issue Issued in this issue Issued in the previous issue Issued in this issue Issued in the previous issue Issued in this issue

11,443 11,888 22,897 Pharmaceutical Group Housing and 967,31 273,52

,432.8 ,130.9 ,058.4 Limited public building 1.30 9.05

9 1 9 Division

Hebei Bai

Yangchengchuang 23,265

Houses and 895,67

Medical development,518.5

Buildings 8.49

Exhibition Limited 9

company

Description of related leasing situation

(4) Related guarantees

The company acts as a guarantor

Unit: Yuan

Whether the guarantee has been fulfilled by the guaranteed party, the guarantee amount, the guarantee starting date, the guarantee expiry date

Complete

The company as the guaranteed party

Unit: Yuan

Whether the guarantee has been fulfilled by the guarantor, the guarantee amount, the guarantee starting date, the guarantee expiry date

Complete

Qingdao Baiyang Yunjian Hotel Management

750,681.92 January 19, 2023 January 17, 2026 No

management co., ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 January 19, 2023 June 20, 2025 Yes

management co., ltd.

Qingdao Baiyang Yunjian Hotel Management

2,000,000.00 February 6, 2023 June 20, 2025 Yes

management co., ltd.

Qingdao Baiyang Yunjian Hotel Management 504,200.00 February 6, 2023 January 17, 2026 No

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

management co., ltd.

Qingdao Baiyang Yunjian Hotel Management

1,000,000.00 March 1, 2023 December 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

113,000.00 March 1, 2023 January 17, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 April 14, 2023 December 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

795,118.08 April 14, 2023 January 17, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

7,000,000.00 June 2, 2023 May 29, 2030 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

1,000,000.00 June 2, 2023 June 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

1,500,000.00 June 2, 2023 December 20, 2025 Shili Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

1,500,000.00 June 2, 2023 June 20, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,000,000.00 June 2, 2023 December 20, 2026 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,000,000.00 June 2, 2023 June 20, 2027 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,500,000.00 June 2, 2023 December 20, 2027 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

2,500,000.00 June 2, 2023 June 20, 2028 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 June 2, 2023 December 20, 2028 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

3,000,000.00 June 2, 2023 June 20, 2029 Fuli Co., Ltd.

Qingdao Baiyang Yunjian Hotel Management

7,000,000.00 June 2, 2023 December 20, 2029 Fuli Co., Ltd.

Pay Steel 100,000,000.00 March 29, 2024 March 29, 2025 Yes Pay Steel 88,800,000.00 August 5, 2024 August 1, 2034 No Pay Steel 3,000,000.00 August 5, 2024 March 20, 2025 Yes to pay steel 7,000,000.00 August 5, 2024 July 20, 2025 Yes to pay steel 3,000,000.00 August 5, 2024 March 20, 2029 No to pay steel 7,000,000.00 August 5, 2024 July 20, 2029 No steel to be paid 3,200,000.00 August 5, 2024 March 20, 2030 No steel to be paid 10,000,000.00 August 5, 2024 July 20, 2030 No steel to be paid 10,000,000.00 August 5, 2024 March 20, 2031 No payment of steel 16,400,000.00 August 5, 2024 July 20, 2031 No payment of steel 10,000,000.00 August 5, 2024 March 20, 2032 No steel payment 42,800,000.00 August 5, 2024 July 20, 2032 No steel payment 10,000,000.00 August 5, 2024 March 20, 2033 No steel payment 42,800,000.00 August 5, 2024 July 20, 2033 No steel to be paid 10,000,000.00 August 5, 2024 March 20, 2034 No steel to be paid 72,960,000.00 April 10, 2025 August 1, 2034 No steel to be paid 3,000,000.00 April 10, 2025 March 20, 2029 No payment of steel 7,000,000.00 April 10, 2025 July 20, 2029 No payment of steel 3,000,000.00 April 10, 2025 March 20, 2030 No steel payment 7,000,000.00 April 10, 2025 July 20, 2030 No steel payment 3,000,000.00 April 10, 2025 March 20, 2031 No steel payment 4,920,000.00 April 10, 2025 July 20, 2031 No steel to be paid 5,840,000.00 April 10, 2025 March 20, 2032 No steel to be paid 10,000,000.00 April 10, 2025 July 20, 2032 No steel to be paid 10,000,000.00 April 10, 2025 March 20, 2033 No Fu Gang 21,680,000.00 April 10, 2025 July 20, 2033 No Full text of the 2025 annual report of Qingdao Baiyang Pharmaceutical Co., Ltd.

Fu Gang 10,000,000.00 April 10, 2025 March 20, 2034 No

Description of related guarantees

The guarantor, Qingdao Baiyang Yunjian Hotel Management Co., Ltd., uses the property on floors 1-4 of No. 16 Huayang Road held by it as collateral.

(5) Fund lending from related parties

Unit: Yuan Related Party Lending Amount Start Date Maturity Date Description of Lending

take out

(6) Asset transfer and debt restructuring of related parties

Unit: Yuan Related party Contents of related transactions 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 Salaries of key management personnel 20,102,501.92 21,599,370.75

(8) Other related transactions

Accounts receivable and payable from related parties

(1) Items receivable

Unit: Yuan Closing balance Opening balance Item name Related parties

Book balance Bad debt provision Book balance Bad debt provision Accounts receivable

Tongxin Biotechnology

(Beijing) Co., Ltd. 1,042,143.80 2,795,395.34

Division

Japanese beauty and health drugs (Chinese

4,376,929.08 21,884.65 1,552,296.83 7,761.48 Guo) Co., Ltd.

Baheal Pharmaceutical Group has

16,694.80 223,424.00

Ltd.

Qingdao Bodhi Medical

Hospital Management Group Co., Ltd. 40,637.73 128,046.48

company

Qingdao Baiyang Insurance Company

Industrial Services LLC 89.70

company

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

advance payment

Suzhou Tongxin Medical Department

1,818,017.51 Technology Co., Ltd.

Zap Medical

15,526,944.00 System, Ltd.

Beijing Maidi Zhongconke

868,050.00 Technology Co., Ltd.

Qingdao Wuweikang Technology

545,200.00 732,389.40 Co., Ltd.

Anshi Pharmaceutical (China

127,692.83 127,692.83 Shan) Co., Ltd.

Qingdao mobile medical information

47,135.00 Information Technology Co., Ltd.

Beijing Baiyang Oasis Home

Park Hotel Management Co., Ltd. 10,000.00 41,800.00 Company

Qingdao Baiyang Oasis Home

50,000.00 Park Hotel Co., Ltd.

Qingdao Centennial Health Medicine

1,700,000.00 Therapeutic Technology Co., Ltd.

Qingdao Haihui Property Management

900.00 Management Co., Ltd.

Qingdao Baiyang Health Products

Industrial Park Co., Ltd. 150,000.00 company

Other receivables

Qingdao Haihui Property Management

275,400.00 368,580.00 333.15 Management Co., Ltd.

Beijing Baiyang Oasis Home

Park Hotel Management Co., Ltd. 226,652.00 238,100.00 Company

Qingdao Chengtian Restaurant

254,170.00 Drink Management Co., Ltd.

Qingdao Bodhisattva Medical Clinic

2,657,391.93 889,909.28 Xue Inspection Co., Ltd.

Beijing Baiyang Family Health

27,461,562.80 8,377.74 Management Co., Ltd.

Qingdao Baiyang Shenghui Medical Center

127,172,139.14 635,860.70 Medical Equipment Co., Ltd.

Qingdao Putike Biotechnology

Pharmaceutical Technology Co., Ltd. 55,194.53 Division

Qingdao Baiyangjia Health

Technology Co., Ltd. City

North Hospital (formerly

30,755.66: Qingdao Shihuahui

Hospital Co., Ltd. City

Beishi Huahui Hospital)

(2) Items payable

Unit: Yuan

Project name Related parties Closing book balance Opening book balance Accounts payable

Anshi Pharmaceutical (Zhongshan) Co., Ltd. 143,372,840.81 116,198,356.61

Rimeijian Pharmaceutical (China) Co., Ltd. 14,526,448.00 6,470,336.10 Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Division

Tongxin Biotechnology (Beijing) Co., Ltd.

25,152.00 32,640.00Company

Qingdao Baiyang Huibao Commercial Services Co., Ltd.

28,873.78 Responsible company

Qingdao Palm Medical Information Technology Co., Ltd.

88,912.80Company

Qingdao Baiyang Health Industrial Park Co., Ltd.

1,415,094.34 Co., Ltd.

Beihai Kangcheng (Shanghai) Biotechnology

8,084,131.20 Co., Ltd.

Qingdao Baiyang Shenghui Medical Equipment Co., Ltd.

5,550,739.21Company

Notes payable

Anshi Pharmaceutical (Zhongshan) Co., Ltd. 181,612,580.33 301,778,968.64 Other payables

Baiyang Pharmaceutical Group Co., Ltd. 122,389,058.64 321,065,204.66 Qingdao Huizhu Baiyang Health Industry Investment

38,078,255.00 95,195,638.00 Fund (limited partnership)

Qingdao Bodhi Yonghe Investment Management Center

4,936,329.00 12,340,822.00 (limited partnership)

Qingdao Baiyang Health Industrial Park Co., Ltd.

1,467,147.60 5,830,526.61 Co., Ltd.

Hebei Baiyang Chengchuang Pharmaceutical Development Co., Ltd.

813,778.42Company

Qingdao Baiyang Shenghui Medical Equipment Co., Ltd.

807,400.00 Company

Qingdao Chengtian Shangshi Catering Management Co., Ltd.

221,460.00 1,034,389.00Company

Qingdao Baiyang Oasis Home Hotel Co., Ltd.

110,915.98 245,790.36Company

Qingdao Haihui Property Management Co., Ltd. 54,030.00 Qingdao Palm Medical Information Technology Co., Ltd.

9,170.00 78,042.00Company

Qingdao Centenary Health Medical Technology Co., Ltd.

4,424.78 companies

Beijing Baiyang Oasis Home Hotel Management

1,006.00 157,410.96 Co., Ltd.

Qingdao Yifu Diagnosis Network Technology Co., Ltd.

693.65 693.65 Division

Baiyang Intelligent Technology Group Co., Ltd.

62,897.00 company

Lease liability

Baiyang Pharmaceutical Group Co., Ltd. 21,518,925.43 19,197,618.60 Hebei Baiyang Chengchuang Pharmaceutical Development Co., Ltd.

24,161,197.08Company

Lease liabilities due within one year

Baiyang Pharmaceutical Group Co., Ltd. 10,263,494.31 6,190,741.43 Hebei Baiyang Chengchuang Pharmaceutical Development Co., Ltd.

8,179,212.50Company

Related party commitments

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Others

(1) Sales of the equity interests of Beijing Wuweikang Technology Co., Ltd. held by the company to related parties

On October 29, 2025, the company held the second meeting of the fourth board of directors, reviewed and approved the "Proposal on the Sale of Equity Interests in Participating Companies and Related Transactions", and agreed to transfer the 40.0465% equity of Beijing Wuweikang Technology Co., Ltd. held by the company to Beijing Baiyangjia Health Management Co., Ltd. controlled by Baiyang Pharmaceutical Group Co., Ltd. at a price of 57.4616 million yuan.

(2) Joint investment with related parties in Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership)

On January 23, 2025, the company held the 29th meeting of the third board of directors and the 24th meeting of the third board of supervisors, and reviewed and approved the "Proposal on Subscription of Investment Fund Shares and Related Transactions by Wholly-Owned Subsidiaries" respectively. The company's wholly-owned subsidiary Hebei Baiyang Chengda Pharmaceutical Co., Ltd. plans to use its own There are funds to subscribe for shares of the Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership). After the transaction is completed, the total capital contribution of the investment fund is RMB 200 million. Hebei Baiyang Chengda Pharmaceutical Co., Ltd., as a limited partner, subscribed for RMB 58 million, accounting for 29% of the total capital contribution. As of the end of this period, Hebei Baiyang Chengda Pharmaceutical Co., Ltd. has paid in capital of RMB 46 million.

As of the end of this period, Langfang Linkong Baiyang Huixin Equity Investment Fund Partnership (Limited Partnership) has invested US$20 million in the company's associate company Zap Medical System, Ltd, holding a shareholding ratio of 5.81%, and has not appointed directors.

(3) Joint investment with related parties in Suzhou Baiyang Equity Investment Fund Partnership (Limited Partnership)

On December 30, 2025, the company held the fourth meeting of the fourth board of directors and reviewed and approved the "Proposal on Joint Investment and Related Transactions with Professional Investment Institutions". The company plans to cooperate with Suzhou Baiyang Feifan Enterprise Management Co., Ltd., Suzhou Guofa Asset Management Co., Ltd., Suzhou Feifan Asset Management Co., Ltd., Suzhou Guofa New Venture Industry No. 3 Investment Enterprise (Limited Partnership), and Suzhou Industrial Park Venture Capital Guidance Fund Partnership (Limited Partnership) jointly invested in the establishment of Suzhou Baiyang Equity Investment Fund Partnership (Limited Partnership) (referred to as "Suzhou Baiyang Fund"). The subscribed capital contribution of Suzhou Baiyang Fund is RMB 100 million, and the company plans to subscribe as a limited partner with its own funds to contribute RMB 43 million, accounting for 43% of the total capital contribution.

15. Share-based payment

Overall situation of share-based payment

□Applicable Not applicable

Equity-settled share-based payment

□Applicable Not applicable

Share-based payment settled in cash

□Applicable Not applicable

Share-based payment expenses for this period

□Applicable Not applicable

Modification and termination of share-based payment
Others

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

16. Commitments and contingencies

Important commitments

Important commitments existing at the balance sheet date

Contingent matters

(1) Important contingencies existing on the balance sheet date

(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

Items that have an impact on financial status and operating results. Contents. Reasons why the impact cannot be estimated.

On March 19, 2026, the company held the fifth meeting of the fourth board of directors and reviewed and approved the "Proposal on External Investment and Related Transactions". The company plans to sign an "Investment Agreement" with Sihe Gene (Beijing) Biotechnology Co., Ltd., Beijing Mentougou District Baiyang Pharmaceutical Industry Investment Fund (Limited Partnership) and other relevant parties, agreeing that the company will invest 27 million yuan in cash in Sihe Gene. After the investment, the company's important new external investment will be to hold 10% of the equity of Sihe Gene. 70,000,000.00 On April 27, 2026, the company held the sixth meeting of the fourth board of directors and reviewed and approved the "Proposal on Additional External Investment and Related Transactions". The company plans to sign an "Additional Investment Agreement" with Sihe Gene (Beijing) Biotechnology Co., Ltd., Beijing Mentougou District Baiyang Pharmaceutical Industry Investment Foundation (Limited Partnership) and other relevant parties, agreeing that the company will invest an additional 43 million yuan in cash in Sihe Gene.

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

After the additional investment, the company holds Siheji

Due to 19.7698% equity.

Profit distribution

The number of dividend shares proposed to be distributed per 10 shares (yuan) 5.71 The number of dividend shares proposed to be distributed per 10 shares (shares) 0 The number of dividend shares proposed to be distributed per 10 shares (shares) 0

The company's profit distribution plan for 2025 is as follows: based on the company's total share capital of 525,624,077 shares as of March 31, 2026, a cash distribution of 5.71 yuan (tax included) will be distributed to all shareholders for every 10 shares, and a total cash distribution of 300,131,347.97 yuan (tax included) is planned. The company will not issue bonus shares this year and will not change the profit distribution plan to increase share capital. If between April 1, 2026 and the equity registration date for the implementation of equity distribution, the company's total share capital changes due to conversion of convertible corporate bonds and other reasons, the company will adjust the distribution ratio accordingly based on the principle that the total amount of cash dividends will remain unchanged. If there are subsequent changes in share capital, the company will separately announce the specific adjustments.

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 Report for each affected comparison period

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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:

Branch information

(1) Determination basis and accounting policies of reporting segments

(2) Financial information of reporting segments

Unit: Yuan Brand Product Sales Promotion Pharmaceutical Wholesale and Distribution Industry Pharmaceutical and Health Products

Item Inter-segment elimination Total

General Business Segment Retail Business Segment

5,624,329,870.0 1,457,861,126.4 7,479,847,627.2 Main business income 397,656,630.72

9 7 8 2,958,207,432.3 1,342,427,775.2 4,682,109,156.7 Main business costs 381,473,949.12

4 9 5 (3) If the company has no reporting segments, or cannot disclose the total assets and total liabilities of each reporting segment, the reasons should be explained

(4) Other instructions

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Other important transactions and matters that have an impact on investors’ decision-making

(1) Shareholder equity pledge matters

As of December 31, 2025, the company's controlling shareholder Baiyang Pharmaceutical Group Co., Ltd. and its persons acting in concert have pledged a total of 192,354,652 shares of the company, accounting for

Its shareholding ratio is 49.20%, accounting for 36.60% of the company's total share capital.

(2) As of December 31, 2025, the company’s internal mutual guarantees that have not been completed are as follows:

Guaranteed party Guarantee amount Guarantee starting date Guarantee expiry date Tianjin Baiyang Pharmaceutical Co., Ltd. 3,115,016.22 September 23, 2025 Tianjin Baiyang Pharmaceutical Co., Ltd. September 23, 2029 3,492,668.94 November 19, 2025 November 19, 2029 Tianjin Baiyang Pharmaceutical Co., Ltd. 3,392,314.84 December 17, 2025 December 17, 2029 Qingdao Baiyang Yimei Technology Co., Ltd. 2,500,000.00 March 27, 2025 March 26, 2029 Qingdao Baiyang Yimei Technology Co., Ltd. 3,700,000.00 May 14, 2025 May 13, 2029 Qingdao Baiyang Yimei Technology Co., Ltd. 3,800,000.00 November 26, 2025 November 25, 2029 Beijing Baiyang Zhihe Medical Achievement Transformation Service Co., Ltd. 50,000,000.00 July 18, 2025 July 17, 2029 Beijing Baiyang Zhihe Medical Achievements Transformation Service Co., Ltd. 10,100,000.00 September 10, 2025 September 9, 2029 Beijing Baiyang Zhihe Medical Achievements Transformation Services Co., Ltd. 6,000,000.00 September 12, 2025 September 11, 2029 Beijing Baiyang Zhihe Medical Achievements Transformation Services Co., Ltd. 9,000,000.00 October 10, 2025 October 9, 2029 Beijing Baiyang Zhihe Medical Achievements Transformation Service Co., Ltd. 4,900,000.00 October 24, 2025 October 23, 2029 Qingdao Dongyuan Biotechnology Co., Ltd. 5,000,000.00 April 30, 2025 April 29, 2029 Qingdao Dongyuan Biotechnology Co., Ltd. 3,000,000.00 May 30, 2025 May 29, 2029 Qingdao Dongyuan Biotechnology Co., Ltd. 2,000,000.00 August 25, 2025 August 24, 2029 Qingdao Baiyang Picky Meow Trading Co., Ltd. 7,000,000.00 August 25, 2025 August 24, 2029 Qingdao Baiyang Picky Cat Trading Co., Ltd. 10,000,000.00 March 31, 2025 March 31, 2029 Qingdao Dianzhong Culture Communication Co., Ltd. 1,000,000.00 February 26, 2025 February 25, 2029 Qingdao Dianzhong Culture Communication Co., Ltd. 2,000,000.00 March 20, 2025 March 19, 2029 Qingdao Dianzhong Culture Communication Co., Ltd. 1,000,000.00 December 4, 2025 December 3, 2029 Shandong Baiyang Pharmaceutical Technology Co., Ltd. 20,000,000.00 June 10, 2025 June 9, 2029 Shandong Baiyang Pharmaceutical Technology Co., Ltd. 20,000,000.00 May 28, 2025 May 27, 2029 Hebei Baiyang Chengda Pharmaceutical Co., Ltd. 1,013,200.00 November 28, 2025 November 28, 2029 Hebei Baiyang Chengda Pharmaceutical Co., Ltd. 3,198,296.81 December 26, 2025 December 26, 2029 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,210,000.00 May 17, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,000,000.00 May 17, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,210,000.00 May 17, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,000,000.00 May 17, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,760,000.00 May 17, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,000,000.00 May 17, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,180,200.00 May 17, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 300,000.00 June 17, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 300,000.00 June 17, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 300,000.00 June 17, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 300,000.00 June 17, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 450,000.00 June 17, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 300,000.00 June 17, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 300,000.00 June 17, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,360,000.00 July 4, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,000,000.00 July 4, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,360,000.00 July 4, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,450,000.00 July 4, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,500,000.00 July 4, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1

,000,000.00 July 4, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,347,400.00 July 4, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,690,000.00 July 23, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,000,000.00 July 23, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,690,000.00 July 23, 2024 May 15, 2033

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Qingdao Baiyang Pharmaceutical Co., Ltd. 1,370,000.00 July 23, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 2,000,000.00 July 23, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,000,000.00 July 23, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,675,400.00 July 23, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,823,108.00 August 20, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 955,406.00 August 20, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,823,108.00 August 20, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,199,257.00 August 20, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 2,268,885.00 August 20, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 955,406.00 August 20, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,085,880.32 August 20, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 850,322.00 September 14, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 566,881.00 September 14, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 850,322.00 September 14, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 708,601.00 September 14, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,062,902.00 September 14, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 566,881.00 September 14, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,052,897.52 September 14, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 2,278,980.00 November 5, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,519,320.00 November 5, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 2,278,980.00 November 5, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,899,150.00 November 5, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 2,848,725.00 November 5, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,519,320.00 November 5, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 2,838,725.00 November 5, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 705,155.00 November 26, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 470,104.00 November 26, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 705,155.00 November 26, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 587,629.00 November 26, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 881,444.00 November 26, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 470,104.00 November 26, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 705,150.00 November 26, 2024 April 15, 2035 Qingdao Baiyang Pharmaceutical Co., Ltd. 869,469.00 December 27, 2024 May 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 579,646.00 December 27, 2024 November 15, 2032 Qingdao Baiyang Pharmaceutical Co., Ltd. 869,469.00 December 27, 2024 May 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 724,557.00 December 27, 2024 November 15, 2033 Qingdao Baiyang Pharmaceutical Co., Ltd. 1,086,836.00 December 27, 2024 May 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 579,646.00 December 27, 2024 November 15, 2034 Qingdao Baiyang Pharmaceutical Co., Ltd. 869,462.00 December 27, 2024 April 15, 2035 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 5,000,000.00 March 17, 2025 March 3, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 10,000,000.00 June 16, 2025 June 15, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 5,000,000.00 August 12, 2025 August 7, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 10,000,000.00 May 6, 2025 April 28, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 10,000,000.00 August 21, 2025 August 21, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 9,240,

000.00 August 4, 2025 February 4, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 2,310,000.00 September 3, 2025 March 3, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 6,930,000.00 October 9, 2025 April 9, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 6,006,000.00 November 10, 2025 May 7, 2029 Shanghai Baiyang Pharmaceutical Technology Co., Ltd. 4,620,000.00 December 17, 2025 June 17, 2029 Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 8,457,699.53 July 10, 2025 January 12, 2029 Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 9,807,072.54 August 8, 2025 February 9, 2029 Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 10,366,319.88 September 10, 2025 March 10, 2029 Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 11,022,751.73 October 10, 2025 April 10, 2029 Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 10,063,392.90 November 10, 2025 May 11, 2029 Qingdao Baiyang Health Pharmacy Chain Co., Ltd. 8,295,259.41 December 10, 2025 June 10, 2029

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Hebei Baiyang Chengda Pharmaceutical Co., Ltd. 22,776,613.11 November 18, 2025 May 18, 2029 Hebei Baiyang Chengda Pharmaceutical Co., Ltd. 22,032,567.77 December 18, 2025 June 18, 2029

Others

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) 750,224,910.76 1,001,457,916.04 1 to 2 years 35,649,961.51 48,204,386.74 2 to 3 years 16,317,920.97 16,338,277.38 More than 3 years 10,198,950.53 7,640,784.85 3 to 4 years 4,421,587.48 1,152,702.98 4 to 5 years 853,180.28 4,903,291.90

More than 5 years 4,924,182.77 1,584,789.97 Total 812,391,743.77 1,073,641,365.01

(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 1,073,6 1,048,2

812,391 24,946, 787,444 25,427,

Account provision 100.00% 3.07% 41,365. 100.00% 2.37% 14,140.

,743.77 886.67 ,857.10 224.63

Accounts receivable 01 38

its

Medium:

1,031,5 1,006,1

666,962 24,946, 642,015 25,427,

Portfolio A 82.10% 3.74% 55,837. 96.08% 2.46% 28,613. ,686.97 886.67 ,800.30 224.63

88 25

145,429 145,429 42,085, 42,085, Combination C 17.90% 3.92%

,056.80 ,056.80 527.13 527.13Total 812,391 100.00% 24,946, 3.07% 787,444 1,073,6 100.00% 25,427, 2.37% 1,048,2 Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

,743.77 886.67 ,857.10 41,365. 224.63 14,140. 01 38 Provision for bad debts on a group basis: 24,946,886.67

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 666,962,686.97 24,946,886.67 3.74% Portfolio C 145,429,056.80

Total 812,391,743.77 24,946,886.67

Description of what this combination is based on:

Provision for bad debts by group:

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

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 Opening balance Ending balance Provision Recovery or transfer Write-off Others

25,427,224.6 24,946,886.6 Combination A 9,008,876.92 9,489,214.88

3 7 25,427,224.6 24,946,886.6Total 9,008,876.92 9,489,214.88

3 7 Among them, the amount of bad debt provision recovery or reversal in the current period is important:

(4) Accounts receivable actually written off in the current period

Unit: yuan item write-off amount

Actual write-off of accounts receivable 0.00 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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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 amount Value preparation closing balance Baheal Pharmaceutical Group has

144,346,275.27 144,346,275.27 17.77%

Ltd.

Affiliated Hospital of Qingdao University 83,525,325.32 83,525,325.32 10.28% 417,626.62 Hospital

Qingdao Municipal Hospital 69,837,752.86 69,837,752.86 8.60% 349,188.76 Qingdao Women and Children

34,007,383.37 34,007,383.37 4.19% 170,036.92 Hospital

Jiuzhoutong Pharmaceutical Group

29,693,342.14 29,693,342.14 3.66% 148,466.69 Co., Ltd.

Total 361,410,078.96 361,410,078.96 44.50% 1,085,318.99

Other receivables

Unit: Yuan Item Ending balance Beginning balance

Dividends receivable 150,000,000.00

Other receivables 530,456,407.20 625,961,300.70 Total 680,456,407.20 625,961,300.70

(1) Interest receivable

Classification of interest receivable

Unit: Yuan Item Ending balance Beginning balance

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

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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) Ending balance Beginning balance

Beijing Baiyang Zhihe Medical Achievement Transformation Service Co., Ltd.

150,000,000.00

company

Total 150,000,000.00

Important dividends receivable aged more than 1 year

Unit: Yuan Whether impairment occurs and the judgment item (or invested unit) Closing balance Aging Reason for non-recovery

Judgment basis

Classified disclosure according to bad debt accrual method

□Applicable Not applicable

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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:

sex

Other notes:

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

transaction generated

Write-off instructions:

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

Consolidated accounts with related parties 490,559,198.44 617,295,491.00 Payment for disposal of equity 27,461,562.80

Current accounts of other companies 9,517,361.63 5,345,026.67 Security deposit and reserve fund 6,353,082.66 6,540,713.86 Total 533,891,205.53 629,181,231.53

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) 253,154,683.11 286,388,988.18 1 to 2 years 107,031,792.10 173,278,430.02 2 to 3 years 88,668,877.83 48,653,376.28

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

More than 3 years 85,035,852.49 120,860,437.05 3 to 4 years 19,421,123.69 61,246,681.92 4 to 5 years 38,547,581.92 28,083,598.68 More than 5 years 27,067,146.88 31,530,156.45 Total 533,891,205.53 629,181,231.53

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

Among them:

by combination

533,891 3,434,7 530,456 629,181 3,219,9 625,961 Bad provision 100.00% 0.64% 100.00% 0.51%

,205.53 98.33 ,407.20 ,231.53 30.83 ,300.70 Account preparation

Among them:

6,919,9 3,434,7 3,485,1 4,360,7 3,219,9 1,140,8 Combination A 1.30% 49.64% 0.69% 73.84%

69.70 98.33 71.37 89.46 30.83 58.63 36,412, 36,412, 6,540,7 6,540,7 Combination B 6.82% 1.04%

037.39 037.39 13.86 13.86 490,559 490,559 618,279 618,279 Combination C 91.88% 98.27%

,198.44 ,198.44 ,728.21 ,728.21 533,891 3,434,7 530,456 629,181 3,219,9 625,961Total 100.00% 100.00%

,205.53 98.33 ,407.20 ,231.53 30.83 ,300.70 Provision for bad debts on a group basis: 3,434,798.33

Unit: Yuan

Ending balance

Name

Book balance Bad debt provision Provision ratio

Portfolio A 6,919,969.70 3,434,798.33 49.64% Portfolio B 36,412,037.39

Combination C 490,559,198.44

Total 533,891,205.53 3,434,798.33

Description of what this combination is based on:

Provision for bad debts by group:

Unit: Yuan

Ending balance

Name

Book balance Bad debt provision Provision ratio

Description of what this combination is based on:

Provision for bad debts by group:

Unit: Yuan

Ending balance

Name

Book balance Bad debt provision Provision ratio

Description of what this combination is based on:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance on January 1, 2025 211,989.33 3,007,941.50 3,219,930.83 Balance on January 1, 2025

In this issue

--Transfer to the third stage -358,326.91 358,326.91

Provision for the current period -78,225.45 358,326.91 280,101.46 Transfer for the current period 22,249.96 42,984.00 65,233.96 Remainder as of December 31, 2025

111,513.92 3,323,284.41 3,434,798.33 amount

Basis for division of 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 Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Portfolio A 3,219,930.83 280,101.46 65,233.96 3,434,798.33Total 3,219,930.83 280,101.46 65,233.96 3,434,798.33

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

sex

Other receivables actually written off in the current period

Unit: Yuan

Item Write-off Amount

Important write-offs of other receivables:

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

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.

transaction generated

Instructions for writing off other receivables:

Other receivables with the top five closing balances based on debtors

Unit: Yuan accounted for other receivable period

Name of the unit with the ending balance of bad debt provision Nature of the payment Ending balance Aging Total ending balance

Proportion

Qingdao Baiyang Yimeike Within 1 year; 1-2

Consolidate transactions with related parties

Technology Co., Ltd. 132,175,193.64 years; 2-3 years; 3 years 24.76%

money

above

Beijing Baiyang Guosheng Medical merged transactions with related parties

131,061,237.17 Within 1 year 24.55%

Medical Equipment Co., Ltd.

Qingdao Baiyang Investment Group consolidates transactions with related parties

58,891,700.00 Within 1 year; 1-2 years 11.03%

Tuan Co., Ltd.

Qingdao Baiyang West Coast Hospital Within 1 year; 1-2

Consolidate transactions with related parties

Pharmaceutical Technology Co., Ltd. 50,326,082.38 years; 2-3 years; 3 years 9.43%

money

above

Baheal Pharmaceutical (Hunan) consolidates transactions with related parties

32,283,661.86 Within 1 year 6.05%

Limited company

Total 404,737,875.05 75.82%

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 1,456,486,10 1,456,486,10 1,471,645,71 1,471,645,71 Investment in subsidiaries

9.58 9.58 2.95 2.95 Associates and joint ventures 245,423,089. 245,423,089. 148,116,733. 139,808,608. 8,308,125.91

Enterprise investment 73 73 94 03 1,701,909,19 1,701,909,19 1,619,762,44 1,611,454,32Total 8,308,125.91

9.31 9.31 6.89 0.98

(1) Investment in subsidiaries

Unit: Yuan Invested unit Beginning balance Impairment provision Increase or decrease in the current period Ending balance Impairment provision

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Position (book price, opening balance, impairment provision (book price, closing balance), additional investment, reduction in investment, others

value) preparation value) Qingdao Dongyuan

111,731,8 111,731,8Biotechnology

13.68 13.68 Ltd.

Qingdao Baiyang

58,072,06 58,072,06

Yimei Technology

4.34 4.34

Ltd.

Tianjin Baiyang

22,185,00 22,185,00 Pharmaceutical Co., Ltd.

0.00 0.00Company

Shandong Baiyang

51,000,00 51,000,00Medical Technology

0.00 0.00 Co., Ltd.

Jiangxi Baiyang

10,410,00 10,410,00 Pharmaceutical Co., Ltd.

0.00 0.00Company

Beijing Baixin

Kangda Medical 1,020,016 1,020,016 Equipment Co., Ltd. .97 .97 Company

Shanghai Baiyang

Smart Medical 1,700,000 1,700,000 Medical Technology Co., Ltd. .00 .00

Qingdao Baiyang

West Coast Pharmaceutical 10,200,00 11,892,44 22,092,44 Technology Co., Ltd. 0.00 4.00 4.00 Company

Beijing Chengshan

Tang Health Department 3,412,292 3,412,292 Technology Co., Ltd. .18 .18 Company

Qingdao cicada

14,500,00 14,500,00Health Technology

2.00 2.00 Co., Ltd.

Qingdao Baiyang

2,930,000 2,930,000Pharmaceutical logistics

.00 .00 LIMITED.

Beijing Baiyang

Intelligent Medicine

28,100,00 28,100,00 Results conversion

0.00 0.00Limited service

company

Beijing Baiyang

Chengda Pharmaceutical 59,000,00 59,000,00 Technology Co., Ltd. 0.00 0.00Company

Beijing Baiyang

Guosheng Medical 9,000,000 9,000,000 Equipment Co., Ltd. .00 .00 Company

Baiyang Health

Industrial International 102,982,0 102,982,0 Trading Co., Ltd. 00.00 00.00 Company

Hebei Baiyang 326,000,0 30,000,00 356,000,0

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Chengda Pharmaceutical 00.00 0.00 00.00 Co., Ltd.

Qingdao Baiyang

302,383,4 302,383,4 Investment Group

32.87 32.87 Ltd.

Qingdao Baiyang

Yiren Investment 44,096,84 44,096,84 Management Co., Ltd. 7.08 7.08 Company

Beijing Baiyang

161,626.8 161,626.8 Kanghe Technology

0 0 Ltd.

Baiyang Pharmaceutical

5,100,000 5,100,000 (Hunan)

.00 .00 LIMITED.

Anhui Zekang

17,693,90 17,693,90Medical Technology

0.00 0.00 Co., Ltd.

Shanghai Baiyang

290,986,7 290,986,7 Pharmaceutical shares

34.00 34.00 Ltd.

1,471,645 42,912,46 58,072,06 1,456,486 total

,712.95 0.97 4.34 ,109.58

(2) Investment in associates and joint ventures

Unit: Yuan

Increases and decreases in the current period

Beginning of period Equity declaration End of period

Impairment Impairment investment balance Other disbursement balance under the law

Preparation Other Provision Provision Note (Account Addition Decrease Confirmation Comprehensive Cash (Accounting Period Equity Impairment Others Ending Position Face Price Investment Investment Income Dividends Face Price Balance Change Reserve Balance Value) Capital Loss Adjustment or Profit Value)

profit

1. Joint ventures

2. Joint ventures

ounce

pharmaceutical

34,51 5,922 - 39,50 (mid 710,3

6,975,916. 226,3 3,248 mountains) 40.00

.46 21 03.60 .07 Limited

company

Japan and the United States

health medicine

Products 9,374 9,277

126,7 223,9

(Chinese,215.,034.

75.08 56.00

country) 24 32 limited

company

Beijing

Five Dimensions -

42,78 8,308 40,21

Conke 2,571

7,273,125. 5,751

Skills, 521.

.40 91 .81

Public limited 59

Division

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Beijing

city gate

Tougou

District Bai

Western medicine -

24,14 50,00 73,01Pharmaceuticals 1,131

4,150 0,000 3,019 Industrial Investment ,130.

.07 .00 .35 Capital 72

gold

(Yes

Limited combination

Guy)

Langfang

Rinku

Baiyang

Equity

Investment 28,98 30,00 - 58,58Fund 5,993 0,000 397,2 8,775Partnership .86 .00 18.35 .51Enterprise

(Yes

Limited combination

Guy)

Tianjin

Jikun

66,00 - 65,04Pharmaceutical

0,000 958,9 1,012Technology

.00 87.52 .48 Limited

company

139,8 8,308 146,0 40,21 - 245,4

990,8 934,2

Subtotal 08,60 ,125. 00,00 5,751 226,3 23,08 33.11 96.00

8.03 91 0.00 .81 03.60 9.73 139,8 8,308 146,0 40,21 - 245,4

990,8 934,2

Total 08,60 ,125. 00,00 5,751 226,3 23,08 33.11 96.00

8.03 91 0.00 .81 03.60 9.73

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.

(3) Other instructions

Operating income and operating costs

Unit: Yuan

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Amount for the current period Amount for the previous period

Project

revenue cost revenue cost

Main business 3,728,908,511.69 3,023,988,379.77 4,707,906,817.89 3,542,353,182.06 Other businesses 7,889,326.57 2,792,422.58 14,083,819.05 7,831,317.27 Total 3,736,797,838.26 3,026,780,802.35 4,721,990,636.94 3,550,184,499.33 Decomposition information of operating income and operating costs:

Unit: Yuan

Segment 1 Segment 2 Amount incurred in the current period Total

Contract classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

Pharmaceutical wholesale 1,254,614 1,206,008 1,254,614 1,206,008 Distribution business ,561.76 ,103.57 ,561.76 ,103.57 Brand products 2,474,293 1,817,980

2,474,293 1,817,980

Sales promotion ,949.93 ,276.20

,949.93 ,276.20

Business

Other business 7,889,326 2,792,422 7,889,326 2,792,422Income .57 .58 .57 .58

3,736,797 3,026,780 3,736,797 3,026,780Total

,838.26,802.35,838.26,802.35 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:

Revenue of 109,968,797.91 yuan is expected to be recognized in 2026, and revenue is expected to be recognized in 2026. Revenue is expected to be recognized in 2026.

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 for the current period Amount for the previous period

Long-term equity investment income calculated by the cost method 454,364,725.42 394,461,776.63 Long-term equity investment income calculated by the equity method 990,833.11 7,182,644.18 Investment income generated from the disposal of long-term equity investment 19,766,042.97

Investment income from disposal of trading financial assets 4,520.55

Full text of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 Annual Report

Measured at fair value through other comprehensive

-1,882,305.05 -3,397,713.84 Investment income from financial assets with combined income

Total 473,243,817.00 398,246,706.97

Others

20. Supplementary information

Detailed statement of non-recurring profits and losses for the current period

Applicable □Not applicable

Unit: Yuan Item Amount Description Mainly the gains and losses from the disposal of non-current assets arising from the disposal of the associated enterprise Wuweikang 14,692,349.55

capital income

Government subsidies included in current profits and losses (related to the company’s regular

Mainly for investment promotion incentives for subsidiaries, which are closely related to the regular business operations of subsidiaries, and are in line with national policies.

26,716,202.14 Special funds to promote economic development in the region, regulations, and enjoyment according to determined standards, for the company

Except for government subsidies that have a lasting impact on the profits and losses of subsidiaries’ R&D special subsidies)

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

In addition to futures hedging business, non-financial enterprises hold financial

Mainly due to changes in fair value of assets and financial liabilities of Zhongkang Holdings, Huahao Zhongtian and Beihaikang 75,408,351.41

Gains and losses from changes in fair value of stocks and disposal of financial assets and financial liabilities

profit and loss

Charges levied on non-financial enterprises included in current profits and losses

1,122,027.77

Fund occupation fee

Other non-operating income other than the above items and

-13,291,202.60 Mainly donations

expenditure

Other profit and loss items that meet the definition of non-recurring profits and losses

1,000,163.62

Head

Less: Income tax impact 18,827,198.51

Amount of impact on minority shareholders’ equity (after tax) 8,404,001.45

Total 78,416,691.93 --Details of other profit and loss items that meet the definition of non-recurring profits and losses:

Applicable□Not applicable

It is mainly the amount attributed to the company for items of associated enterprises that meet the definition of non-recurring gains 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 attributable to the company’s ordinary shareholders 20.77% 0.9 0.89

Full text profit of Qingdao Baiyang Pharmaceutical Co., Ltd. 2025 annual report

After deducting non-recurring gains and losses, attributable to

17.34% 0.75 0.75 Net profit of the company’s ordinary 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.

□Applicable Not applicable

Others