Guangxi Wuzhou Zhongheng Group Co., Ltd. 2025 Annual Audit Report

Guangxi Wuzhou Zhongheng Group Co., Ltd.

2025

Audit report

Index Page Audit Report 1-4 Company Financial Statements

— Consolidated Balance Sheet 1-2 — Balance Sheet of Parent Company 3-4 — Consolidated Income Statement 5 — Income Statement of Parent Company 6 — Consolidated Cash Flow Statement 7 — Cash Flow Statement of Parent Company 8 — Consolidated Statement of Changes in Shareholders’ Equity 9-10 — Statement of Changes in Shareholders’ Equity of Parent Company 11-12 — Notes to Financial Statements 13-125

Audit report

XYZH/2026CDAA3B0062

Guangxi Wuzhou Zhongheng Group Co., Ltd.

All shareholders of Guangxi Wuzhou Zhongheng Group Co., Ltd.:

1. Audit opinions

We have audited the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd. (hereinafter referred to as "Zhongheng Group"), 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 changes in shareholders' equity statements for 2025, and the notes to the relevant financial statements.

We believe that the attached financial statements are prepared in accordance with the Accounting Standards for Business Enterprises in all material respects and fairly reflect the consolidated and parent company's financial status of Zhongheng Group 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 requirements applicable to the audit of financial statements of public interest entities in the Chinese Code of Independence for Certified Public Accountants and the Chinese Code of Professional Ethics for Certified Public Accountants, we are independent from Zhongheng Group and have performed other responsibilities in terms of independence and professional ethics. We believe that the audit evidence we obtained is sufficient and appropriate, providing a basis for issuing an audit opinion (cid: 6656).

3. Key audit matters

The key audit matters are matters that we believe are most important in the audit of the 2025 financial statements based on our professional judgment. 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.

1. Confirmation of income

Key audit matters Response during audit

For example, Note 3 to the financial statements, 26 Revenue recognition principles and the main audit procedures we performed on this matter include:

(1) Understand and evaluate the design methods and methods of internal controls related to revenue recognition and Notes 5 and 46 to the financial statements.

Take into account operational effectiveness;

As shown in revenue and operating costs, Zhongheng Group 2025

(2) Evaluate whether the revenue recognition policy and specific methods comply with the standards. The annual operating revenue was 1.749 billion yuan, which was

regulations and implement them consistently;

A decrease of 356 million yuan in 2024, a decrease of

(3) Combining business segments and business models, the revenue and gross profit margin are 16.92%. Since revenue is the key business of Zhongheng Group, we perform analytical procedures to determine one of the overall performance indicators for changes in revenue and gross profit margin this year, and there is a material misstatement in revenue recognition. It is rational;

Audit Report (continued)

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Guangxi Wuzhou Zhongheng Group Co., Ltd.

(4) For circulation business such as drug distribution, check the upstream and downstream relationships of the business, and evaluate the transaction based on contract terms and physical transfer conditions as key audit matters.

Whether it has commercial substance and the appropriateness of the revenue recognition method;

(5) Randomly check relevant contracts, invoices, outbound orders, shipping orders, acceptance orders and other supporting evidence for sales revenue recognition;

(6) Combined with the confirmation of accounts receivable, select a sample of the revenue amount to perform the confirmation procedure, and combine it with the post-period payment collection inspection to evaluate the accuracy and completeness of the revenue recognition;

(7) For the revenue recognized before and after the asset-liability date, randomly check supporting documents such as warehouse receipts, shipping documents, and acceptance documents, and evaluate whether the revenue is recorded in the appropriate accounting period based on the inventory count.

2. Goodwill impairment test

Key audit matters Response during audit

As shown in Note V. 20 of the financial statements, the main audit procedures we performed on this matter at Zhonghengji include:

(1) Understand and evaluate the goodwill formed by the company’s internal group merger and acquisition of Laimei Pharmaceutical related to the goodwill impairment test (Laimei Pharmaceutical

Effectiveness of design and implementation of control systems;

Asset Group Portfolio of the Head Office, Laimei Pharmaceutical Asset Group)

(2) Understand the formation process of goodwill and the accuracy of measurement, review the public balance of 518 million yuan, and the balance of goodwill impairment provision

The company and the goodwill-related asset group combination or asset group division are appropriately RMB 518 million. During the reporting period (cid: 6656), the goodwill impairment allowance was calculated

nature, and whether the current asset group portfolio is consistent with previous years;

Reserve RMB 70 million. Since the goodwill impairment provision calculation (3) takes into account the historical performance of the asset group and future development plans (cid: 6656), the amount is relatively significant, and the goodwill impairment test involves planning, evaluate the rationality of various parameters and indicators used in this year's cash flow forecast;

and a large number of management judgments and estimates, therefore we

(4) Evaluate whether the third-party evaluation agency hired by the company has the qualifications to determine the impairment test of Laimei Pharmaceutical's goodwill as

Qualitative conditions, professional competence and independence;

Key audit matters.

(5) Review the rationality of third-party experts’ evaluation methods, evaluation procedures, value models, relevant original data, and selection of key parameters for the goodwill asset group portfolio value estimate;

(6) Review whether the calculation of the net present value of expected future cash flows is accurate;

(7) Review whether the calculation of the goodwill impairment test results is accurate; (8) Pay attention to the impact of subsequent events on the goodwill impairment test conclusion; (9) Evaluate whether the management's disclosure of the goodwill impairment test results in the notes to the financial statements is appropriate.

4. Other information

The management of Zhongheng Group (hereinafter referred to as the "management") is responsible for other information. The other information includes the information covered in Zhongheng Group'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.

Audit Report (continued)

XYZH/2026CDAA3B0062 Guangxi Wuzhou Zhongheng Group Co., Ltd.

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 do not contain material misstatements due to fraud or errors.

When preparing financial statements, management is responsible for assessing Zhongheng Group's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless management plans to liquidate Zhongheng Group, terminate operations, or has no other realistic option.

Those charged with governance are responsible for overseeing Zhongheng Group’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 management and the reasonableness of accounting estimates and related disclosures.

4. Draw conclusions on the appropriateness of management’s use of the going concern assumption. At the same time, based on the audit evidence obtained, a conclusion is drawn as to whether there are significant uncertainties about events or conditions that may cause significant doubts about Zhongheng Group's ability to continue as a going concern. If we conclude that there are significant uncertainties, the auditing standards require us to ask users of the statements to pay attention to the relevant disclosures in the financial statements in the audit report (cid: 6656); 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 Zhongheng Group to cease to continue as a going concern.

Audit Report (continued)

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Guangxi Wuzhou Zhongheng Group Co., Ltd.

5. Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.

6. Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in the Zhongheng Group to express an audit opinion on the financial statements. We are responsible for directing, supervising and performing group audits and take full responsibility for our audit opinions.

We communicate with those charged with governance regarding, among other matters, the planned audit scope, timing and significant audit findings, including communication of significant internal control deficiencies identified during our audit.

We also provide statements to those charged with governance (cid:6656) 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 audit report (cid: 6655) unless laws and regulations prohibit public disclosure of these matters, or in rare circumstances, if the negative consequences of communicating a matter in the audit report are reasonably expected to outweigh the benefits in the public interest, we determine that the matter should not be communicated in the audit report.

ShineWing Certified Public Accountants LLP (Special General Partnership) Chinese Certified Public Accountants:

(Project Partner)

Chinese Certified Public Accountant:

Beijing, China March 29, 2026

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

1. Basic information of the company

Guangxi Wuzhou Zhongheng Group Co., Ltd. (hereinafter referred to as the "Company" or the "Company", and collectively referred to as the "Group" when including subsidiaries) was originally named Guangxi Wuzhou Zhongheng Co., Ltd. and is located in Building 1, No. 1 Industrial Avenue, Wuzhou Industrial Park, Guangxi. The company is a joint-stock pilot enterprise established on April 1, 1993 with the approval of Gui Ti Gai Gu Zi [1993] No. 63 document of the Guangxi Zhuang Autonomous Region Institutional Reform Commission, with Wuzhou Urban Construction Comprehensive Development Company, Wuzhou Real Estate Development Company, and Wuzhou Architectural Design Institute as the sponsors, using a targeted fundraising method. On July 28, 1993, the company was approved and registered by the Wuzhou Administration for Industry and Commerce; on December 14, 1993, the company was restructured from Gui Ti to share capital by the Guangxi Zhuang Autonomous Region Institutional Reform Commission [1993] 158 With the approval of document No. 49, the name was changed to Guangxi Wuzhou Zhongfang Co., Ltd.; on December 4, 1996, the company was renamed to its current name with the approval of Gui Ti Gai Gu Zi [1996] No. 49 of the Guangxi Zhuang Autonomous Region Institutional Reform Committee.

On October 23, 2000, as approved by the China Securities Regulatory Commission in the form of Zheng Jian Fa Zi [2000] No. 138, the Company issued 45 million RMB ordinary shares (A shares) to the public through online pricing issuance (RMB 1/share). On November 30, 2000, the company's shares were listed on the Shanghai Stock Exchange. After this issuance, the company's share capital will be 126.7176 million shares, and the registered capital will be changed to 126.7176 million yuan.

On May 26, 2010, the China Securities Regulatory Commission issued the "Reply on Approving the Non-public Issuance of Stocks by Guangxi Wuzhou Zhongheng Group Co., Ltd." (CSRC License [2010] No. 669), approving the company's non-public issuance of no more than 48 million new shares. On June 10, 2010, the company actually issued 12 million new shares.

On October 29, 2014, the China Securities Regulatory Commission issued the "Reply on Approving the Non-public Issuance of Stocks by Guangxi Wuzhou Zhongheng Group Co., Ltd." (CSRC License [2014] No. 1092), approving the company's non-public issuance of no more than 73,134,900 new shares. On November 13, 2014, the company actually issued 66,621,521 new shares.

As of the end of this reporting period, the company's registered capital and share capital were RMB 3,184,163,070.00.

The company's unified social credit code: 914504001982304689; legal representative: Yang Jinhai; registered address: Building 1, No. 1, Industrial Avenue, Wuzhou Industrial Park, Guangxi; company type: joint stock limited company (state-owned listed company).

The company's industry includes project investment and management, real estate development and operation. The group belongs to the pharmaceutical manufacturing industry, including pharmaceutical manufacturing, pharmaceutical distribution, health food, daily cosmetics and cosmetics, pharmaceutical distribution, real estate sales and other business sectors.

This financial statement was approved for issuance by the resolution of the company's board of directors on March 29, 2026.

2. Basis for preparation of financial statements

1. Basics of preparation

The Group's financial statements are based on actual transactions and events, in accordance with the Accounting Standards for Business Enterprises and their application guidelines, interpretations and other relevant regulations promulgated by the Ministry of Finance (hereinafter collectively referred to as the "Accounting Standards for Business Enterprises"), and the notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

The Supervisory Committee (hereinafter referred to as the "CSRC") has prepared the disclosure-related provisions of the "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial Reports" (revised in 2023).

2. Going concern

The Group has evaluated its ability to continue operating for the 12 months starting from December 31, 2025, and has found no events or circumstances that cast significant doubt on its ability to continue operating. These financial statements are presented on a going concern basis.

3. Important accounting policies and accounting estimates

The specific accounting policies and accounting estimates formulated by the Group based on the actual production and operation characteristics include provision for bad debts of receivables, provision for inventory decline, depreciation of fixed assets, amortization of intangible assets, capitalization conditions for research and development expenses, revenue recognition and measurement, etc.

1. Statement on compliance with Accounting Standards for Business Enterprises

This financial statement complies with the requirements of the Accounting Standards for Business Enterprises and truly and completely reflects the financial status of the Company and the Group as of December 31, 2025, as well as relevant information such as operating results and cash flow in 2025.

2. Accounting period

The Group's accounting period is from January 1 to December 31 in the Gregorian calendar.

3. Business cycle

The Group's operating cycle is 12 months, which is used as the liquidity classification standard for assets and liabilities.

4. Accounting standard currency

The Group uses RMB as its functional accounting currency.

5. Determination method and selection basis of materiality criteria

The Group prepares and discloses financial statements in compliance with the materiality principle. The matters disclosed in the notes to the financial statements involve the judgment of materiality standards and the determination methods and selection basis of the materiality standards are as follows:

Disclosure matters involving the judgment of materiality standards Determination method and selection basis of materiality standards

Important current accounts (including accounts receivable collected in the current period)

Reversal or reversal of important bad debt provisions and overage amounts account for ≥5% of the balance of current accounts at the end of the period, and ≥5 million yuan

1 year of important current accounts)

The investment budget amount is large, and the amount incurred in the current period accounts for the important construction projects in progress in the current period.

More than 5% of the total amount, and ≥5 million yuan

The R&D project budget is relatively large, and the current capitalization amount accounts for 10% of the capitalized R&D project.

(or the ending balance accounts for more than 10%)

The amount of important outsourced research and development projects accounts for more than 5% of the balance of capitalized R&D projects at the end of the period

Non-wholly-owned subsidiaries whose total assets, net assets, operating income and net profit are important in the consolidated statements

More than 10% of the project should be

The book value accounts for more than 30% of the long-term equity investment, or the investment income (losses are calculated in absolute amounts) from important joint ventures or associates or associates of the joint venture accounts for

And report more than 30% of net profit

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Disclosure matters involving the judgment of materiality standards Determination method and selection basis of materiality standards

Important cash receipts and payments related to investing activities The amount of cash received or paid related to investing activities is ≥ 50 million yuan

6. Accounting treatment methods for business combinations under the same control and those not under the same control

(1) Business merger under common control

If the enterprises participating in the merger are ultimately controlled by the same party or the same parties before and after the merger and the control is not temporary, it is a business merger under the same control.

As the merging party, the assets and liabilities acquired by the Group in a business combination under common control are measured at the book value of the merged party in the consolidated statements of the ultimate controlling party on the date of merger. The difference between the book value of the net assets acquired and the book value of the merger consideration paid (or the total face value of the shares issued) shall be adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings shall be adjusted.

(2) Business combination not under common control

If the parties involved in the merger are not ultimately controlled by the same party or the same parties before and after the merger, it is a business merger not under the same control.

As the purchaser, the Group's identifiable assets, liabilities and contingent liabilities of the acquiree acquired in a business combination not under common control are measured at fair value on the acquisition date. If the merger cost is greater than the fair value share of the acquiree's identifiable net assets acquired in the merger, the difference is recognized as goodwill; if the merger cost is less than the fair value share of the acquiree's identifiable net assets acquired in the merger, the fair value of each identifiable asset, liability and contingent liability acquired in the merger, and the merger cost will first be reviewed. After review, if the merger cost is still less than the fair value share of the acquiree's identifiable net assets acquired in the merger, the difference will be included in the non-operating income of the current period of the merger.

7. Judgment criteria for control and preparation method of consolidated financial statements

The scope of the Group's consolidated financial statements is determined on the basis of control, including the Company and all subsidiaries controlled by the Company. The Group's criteria for determining control are that the Group has power over the investee, enjoys variable returns by participating in the investee's relevant activities, and has the ability to use its power over the investee to affect its return amount.

When preparing consolidated financial statements, if the accounting policies or accounting periods adopted by a subsidiary and the Company are inconsistent, necessary adjustments will be made to the financial statements of the subsidiary in accordance with the Company's accounting policies or accounting periods.

The impact of internal transactions between the Company and its subsidiaries and between subsidiaries on the consolidated financial statements is eliminated upon consolidation. The share of the subsidiary's owner's equity that does not belong to the parent company and the share of the current period's net profit and loss, other comprehensive income and total comprehensive income that belong to minority shareholders are listed in the consolidated financial statements under the items "Minority shareholders' equity, minority shareholders' profit and loss, other comprehensive income attributable to minority shareholders and total comprehensive income attributable to minority shareholders" respectively.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

For subsidiaries acquired through business mergers under common control, their operating results and cash flows will be included in the consolidated financial statements from the beginning of the current period of merger. When preparing comparative consolidated financial statements, adjustments are made to relevant items in the previous year's financial statements, and the reporting entity formed after the merger is deemed to have existed since the time when the ultimate controlling party began to control.

For subsidiaries acquired through business combinations not under common control, operating results and cash flows will be included in the consolidated financial statements from the date the group obtains control. When preparing consolidated financial statements, the financial statements of subsidiaries are adjusted based on the fair value of each identifiable asset, liability and contingent liability determined on the acquisition date.

8. Cash and cash equivalents

Cash in the Group's cash flow statement refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents in the cash flow statement refer to investments that have a holding period of no more than 3 months, are highly liquid, are easily convertible into known amounts of cash, and have little risk of changes in value.

9. Foreign currency business and translation of foreign currency financial statements

(1) Foreign currency transactions

When the Group's foreign currency transactions are initially recognized, the foreign currency amount is converted into the recording currency amount using the spot exchange rate on the date of the transaction. On the balance sheet date, foreign currency monetary items are converted into the accounting functional currency using the spot exchange rate on the balance sheet date. The resulting translation differences, except for the exchange differences arising from special foreign currency borrowings for the acquisition, construction or production of assets that meet capitalization conditions, are treated in accordance with the capitalization principle and are directly included in the current profit and loss; foreign currency non-monetary items measured at historical cost are still translated using the spot exchange rate on the date of the transaction, and their accounting functional currency amounts are not changed; Foreign currency non-monetary items measured at fair value are converted at the spot exchange rate on the date when the fair value is determined. The difference between the converted accounting functional currency amount and the original accounting functional currency amount is treated as a change in fair value (including exchange rate changes) and included in the current profit and loss; capital invested in foreign currencies from investors is converted at the spot exchange rate on the date of the transaction. There is no foreign currency capital conversion difference between the foreign currency invested capital and the accounting functional currency amount of the corresponding monetary item.

(2) Conversion of foreign currency financial statements

The Group converts the financial statements of overseas operations into RMB when preparing consolidated financial statements. Among them: the assets and liabilities items in the foreign currency balance sheet are converted at the spot exchange rate on the balance sheet date; the owners' equity items, except "undistributed profits", are converted at the spot exchange rate when the business occurs; the income and expense items in the income statement are converted at the spot exchange rate on the date of the transaction (or an exchange rate determined in a systematic and reasonable manner that is similar to the spot exchange rate on the date of the transaction). The foreign currency statement translation differences arising from the above translation are listed in other comprehensive income items. Foreign currency cash flows are translated using the average exchange rate for the period in which the cash flows occur. The impact of exchange rate changes on cash is presented separately in the cash flow statement.

10. Financial instruments

(1) Recognition and derecognition of financial instruments

The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

When the following conditions are met, the recognition of a financial asset (or a part of a financial asset, or a part of a group of similar financial assets) is derecognised, that is, the previously recognized financial asset is transferred out of the balance sheet: 1) The right to receive cash flows from the financial asset expires; 2) The right to receive the cash flow from the financial asset is transferred, or the right to receive the cash flow from the financial asset is transferred. Under the "Hand-Hand Agreement", the Company assumes the obligation to pay the cash flows collected in full to a third party in a timely manner; and substantially transfers substantially all risks and rewards of ownership of the financial assets, or although substantially neither transfers nor retains substantially all risks and rewards of ownership of the financial assets, it gives up control of the financial assets.

Financial liabilities are derecognised if the obligation for the financial liability has been performed, canceled or expired. If an existing financial liability is replaced by another financial liability with substantially different terms from the same creditor, or almost all of the terms of the existing liability are substantially modified, such replacement or modification is treated as derecognition of the original liability and recognition of a new liability, and the difference is included in the current profit and loss.

Buying and selling financial assets in a regular manner is recognized and derecognized based on transaction date accounting.

(2) Classification and measurement methods of financial assets

When the Group's financial assets are initially recognized, based on the Group's business model for managing financial assets and the contractual cash flow characteristics of the financial assets, the financial assets are classified into financial assets measured at amortized cost, financial assets measured at fair value with changes included in other comprehensive income, and financial assets measured at fair value with changes included in current profits and losses. All affected related financial assets will be reclassified if and only when the Group changes its business model for managing financial assets.

When judging the business model, the Group considers the way in which the enterprise evaluates and reports the performance of financial assets to key management personnel, the risks that affect the performance of financial assets and their management methods, and the way in which relevant business managers are remunerated. When assessing whether to collect contractual cash flows as the goal, the Group analyzes and makes judgments on the reasons, time, frequency and value of sales of financial assets before their maturity date.

When judging the characteristics of contract cash flow, the Group judges whether the contract cash flow is only the payment of principal and interest based on the outstanding principal, and when evaluating the correction of the time value of money, it judges whether there is a significant difference compared with the benchmark cash flow; for financial assets that include early repayment characteristics, it judges whether the fair value of the early repayment characteristics is very small, etc.

Financial assets are measured at fair value upon initial recognition. However, if accounts receivable or notes receivable arising from the sale of goods or provision of services do not contain a significant financing component or do not consider the financing component that does not exceed one year, they will be initially measured based on the transaction price.

For financial assets measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other types of financial assets are included in their initial recognition amount.

The subsequent measurement of a financial asset depends on its classification:

1. Financial assets measured at amortized cost

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at amortized cost: ① The business model for managing the financial asset is to collect contractual cash flows as the goal; ② The contractual terms of the financial asset stipulate that in the notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Cash flows generated on a specific date are solely payments of principal and interest on the outstanding principal amount. The Group's financial assets in this category mainly include: monetary funds, accounts receivable, notes receivable, other receivables, etc.

2. Debt instrument investments measured at fair value and changes included in other comprehensive income

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at fair value with changes included in other comprehensive income: ① The business model for managing the financial asset aims at both collecting contractual cash flows and selling the financial asset; ② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. Interest income on such financial assets is recognized using the effective interest rate method. Except for interest income, impairment losses and exchange differences, which are recognized as current profits and losses, other changes in fair value are included in other comprehensive income. When a financial asset is derecognised, 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. The Group's financial assets in this category mainly include receivables financing.

3. Equity instrument investments measured at fair value and changes included in other comprehensive income

The Group irrevocably chooses to designate certain non-trading equity instrument investments as financial assets at fair value through other comprehensive income. Once this designation is made, it cannot be revoked. The Group only includes relevant dividend income (except dividend income that is clearly recovered as part of investment costs) into the current profit and loss. Subsequent changes in fair value are included in other comprehensive income, and no impairment provisions are required. When a financial asset is derecognised, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in retained earnings. The Group's financial assets in this category are other equity instrument investments.

4. Financial assets measured at fair value and changes included in current profits and losses

Except for the above-mentioned financial assets classified as measured at amortized cost and financial assets classified or designated as measured at fair value with changes included in other comprehensive income, the Group classifies them as financial assets measured at fair value with changes included in current profits and losses. Such financial assets are subsequently measured at fair value, and all changes in fair value are included in current profits and losses, except those related to hedging accounting. The Group's financial assets in this category mainly include: trading financial assets.

(3) Classification, recognition basis and measurement method of financial liabilities

In addition to financial guarantee contracts issued, loan commitments at lower than market interest rates and financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continued involvement in the transferred financial assets, the Group's 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. For financial liabilities measured at fair value with changes included in current profit and loss, relevant transaction costs are directly included in current profit and loss, and relevant transaction costs for financial liabilities measured at amortized cost are included in their initial recognition amount.

The subsequent measurement of financial liabilities depends on their classification:

1. Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost are subsequently measured based on the amortized cost using the actual interest rate method. Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

2. Financial liabilities measured at fair value and changes included in current profits and losses

Financial liabilities at fair value through profit and loss (including derivatives that are financial liabilities) include trading financial liabilities and financial liabilities designated as fair value through profit and loss upon initial recognition. Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently measured at fair value. Except for those related to hedging accounting, all changes in fair value are included in the current profit and loss. For financial liabilities designated as measured at fair value and whose changes are included in current profits and losses, subsequent measurement is carried out according to fair value. Except for changes in fair value caused by changes in the Group's own credit risk, which are included in other comprehensive income, other changes in fair value are included in current profits and losses; if changes in fair value caused by changes in the Group's own credit risk are included in other comprehensive income, it will cause or expand accounting mismatches in profit and loss. The Group will include all changes in fair value (including the amount affected by changes in its own credit risk) into current profits and losses.

(4) Impairment of financial instruments

Based on expected credit losses, the Group performs impairment treatment on financial assets measured at amortized cost and recognizes loss provisions.

1. Measurement of expected credit losses

Expected credit losses refer to the weighted average of the credit losses of financial instruments with the risk of default as the weight. Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected to be received by the Group discounted at the original effective interest rate, that is, the present value of all cash shortfalls.

Lifetime expected credit losses refer to the expected credit losses caused by all possible default events that may occur during the entire expected life of a financial instrument. Expected credit losses within the next 12 months refer to the expected credit losses caused by default events on financial instruments that may occur within 12 months after the balance sheet date (if the expected duration of the financial instrument is less than 12 months, the expected duration), and are part of the expected credit losses throughout the duration.

For receivables such as accounts receivable and notes receivable that do not contain significant financing components due to daily operating activities such as selling goods and providing services, the Group uses simplified measurement methods to measure loss provisions based on an amount equivalent to the expected credit losses during the entire duration.

Except for the above-mentioned financial assets that adopt simplified measurement methods, the Group adopts the general method (three-stage method) to calculate expected credit losses. At each balance sheet date, the Group assesses whether its credit risk has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, it is in the first stage, and the Group assesses whether its credit risk has increased significantly since initial recognition. Loss reserves are measured based on the amount of expected credit losses within a month; if credit risk has increased significantly since initial recognition but no credit impairment has occurred, it is in the second stage, and the Group measures loss reserves at an amount equivalent to expected credit losses throughout the entire duration; if credit impairment occurs after initial recognition, it is in the third stage, and the Group measures loss reserves based on an amount equivalent to expected credit losses throughout the entire duration.

For financial instruments with only low credit risk on the balance sheet date, the Group assumes that their credit risk has not increased significantly since initial recognition.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

When the Group uses the expected credit loss model to assess the impairment of financial instruments and contract assets, it infers the expected changes in the debtor's credit risk based on historical repayment data and combined with economic policies, macroeconomic indicators, industry risks and other factors. Different estimates may affect the provision of impairment provisions, and the impairment provisions that have been provided may not be equal to the actual amount of future impairment losses.

2. Combination categories and determination basis for accruing impairment provisions based on combinations of credit risk characteristics

The Group assesses the expected credit losses of financial instruments on an individual and collective basis. When assessing on a collective basis, the Group divides financial instruments into different groups based on common credit risk characteristics. The common credit risk characteristics adopted by the Group include: type of financial instrument, credit risk rating, debtor's identity background and industry, overdue information, aging of receivables, etc.

① Combination categories and determination basis of accounts receivable

The Group groups accounts receivable based on the similarity and correlation of credit risk characteristics based on information such as age of accounts receivable, nature of payment, credit risk exposure, historical payment collection, etc. For accounts receivable, the Group determines that aging is the main factor affecting credit risk. Therefore, the Group refers to historical credit loss experience and prepares a comparison table between the aging of accounts receivable and the default loss rate, and uses this as a basis to evaluate its expected credit losses. The Group determines the aging of accounts based on the invoicing date.

② Combination categories and determination basis of notes receivable

Based on the credit risk of the acceptor of notes receivable as a common risk characteristic, the Group divides them into different combinations and determines the accounting estimation policy for expected credit losses: a. For bank acceptance bills where the acceptor is a commercial bank, the Group evaluates such accounts to have low credit risk and does not recognize expected credit losses; b. For commercial acceptance bills where the acceptor is a commercial entity, the expected loss rate is confirmed and accrued loss provisions with reference to the Group's accounts receivable policy, which is the same as the group classification of accounts receivable.

③ Combination categories and determination basis of other receivables

The Group's other receivables mainly include deposits and guarantees receivable, employee reserves and advances receivable, agency business accounts receivable, asset disposal accounts receivable and other accounts receivable. Based on the nature of receivables and the credit risk characteristics of different counterparties, the Group divides other receivables into extremely low credit risk portfolios such as security deposits receivable, advances on behalf of customers, employee reserves, agency business transactions, asset disposal receivables portfolios, and other receivables portfolios.

3. Based on the individual provision judgment standards for individual provision for bad debts

If the credit risk characteristics of a certain customer are significantly different from other customers in the portfolio, or the credit risk characteristics of the customer change significantly, for example, if the customer encounters serious financial difficulties and the expected credit loss rate of the amount receivable from the customer is significantly higher than the expected credit loss rate of the account receivable and overdue range, the Group will make a separate loss provision for the amount receivable from the customer.

4. Write-off of impairment provisions

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

When the Group no longer reasonably expects to recover all or part of the contractual cash flows of a financial asset, the Group directly writes down the book balance of the financial asset. If a financial asset that has been written down is later recovered, the reversal of the impairment loss will be included in the profit and loss of the current period of recovery.

(5) Recognition basis and measurement method of financial asset transfer

For financial asset transfer transactions, if the Group has transferred almost all risks and rewards of the ownership of the financial assets to the transferee, the financial assets will be derecognised; if the Group has retained almost all the risks and rewards of the ownership of the financial assets, the financial assets will not be derecognized; if the Group has neither transferred nor retained the financial assets If the financial asset owner has substantially all the risks and rewards of property ownership and has given up control of the financial asset, the recognition of the financial asset shall be terminated and the resulting assets and liabilities shall be recognized. If the control of the financial asset has not been given up, the relevant financial assets shall be recognized to the extent of its continued involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.

If the overall transfer of financial assets meets the conditions for derecognition, the book value of the transferred financial assets on the date of derecognition will be combined with the amount corresponding to the derecognition portion of the consideration received for the transfer and the cumulative amount of changes in fair value originally directly included in other comprehensive income (the financial assets involved in the transfer also meet the following conditions: ① Set The group's business model for managing the financial assets aims at both collecting contractual cash flows and selling the financial assets; ② The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the difference between the sum of the principal and the interest based on the outstanding principal amount and is included in the current profit and loss.

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 unrecognized part according to their respective relative fair values, and the consideration received due to the transfer and the cumulative amount of changes in fair value originally included in other comprehensive income that should be apportioned to the derecognized part shall be the amount corresponding to the derecognized part (financial funds involved in the transfer The asset meets the following conditions at the same time: ① The group's business model for managing the financial asset aims at both collecting contractual cash flows and selling the financial asset; ② The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the sum of the principal and interest based on the outstanding principal amount.), and the difference between the overall book value of the aforementioned financial assets is included in the current profit and loss.

If the company continues to be involved by providing financial guarantees for the transferred financial assets, the assets formed by the continued involvement will be recognized based on the lower of the book value of the financial assets and the amount of financial guarantees. The amount of financial guarantee refers to the maximum amount that will be required to be repaid out of the consideration received.

(6) Distinguishing between financial liabilities and equity instruments and related treatment methods

The Group distinguishes financial liabilities and equity instruments according to the following principles: ① If the Group cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation, then the contractual obligation meets the definition of financial liabilities. Although some financial instruments do not explicitly include terms and conditions for the obligation to deliver cash or other financial assets, they may indirectly form contractual obligations through other terms and conditions; ② If a financial instrument must be or can be settled with the Group's own equity instruments, it is necessary to consider whether the Group's own equity instruments used to settle the instrument are used as a substitute for cash or other financial assets, or to enable the holder of the instrument to enjoy the remaining equity in the issuer's assets after deducting all liabilities. If it is the former, the instrument is a financial liability of the issuer; if it is the latter, the notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Instruments are equity instruments of the issuer. In some cases, a financial instrument contract stipulates that the Group must or can use its own equity instruments to settle the financial instrument, and the amount of the contractual rights or contractual obligations is equal to the number of its own equity instruments that can be obtained or required to be delivered multiplied by its fair value at the time of settlement. Whether the amount of the contractual rights or obligations is fixed or changes in whole or in part based on changes in variables other than the market price of the Group's own equity instruments (such as interest rates, the price of a certain commodity or the price of a certain financial instrument), the contract is classified as a financial liability.

The Group takes into account all terms and conditions agreed between group members and holders of financial instruments when classifying financial instruments (or their components) in the consolidated statements. An instrument is classified as a financial liability if the Group as a whole has an obligation as a result of the instrument to deliver cash, other financial assets, or to settle in another manner that causes the instrument to become a financial liability.

If a financial instrument or its component is a financial liability, the Group shall include the relevant interest, dividends (or dividends), gains or losses, and gains or losses arising from redemption or refinancing into the current profits and losses.

If a financial instrument or its component is an equity instrument, when it is issued (including refinancing), repurchased, sold or canceled, the Group will treat it as a change in equity and will not recognize changes in the fair value of the equity instrument.

(7) Offset of financial assets and financial liabilities

The Group's financial assets and financial liabilities are presented separately in the balance sheet and do not offset each other. However, when the following conditions are met at the same time, the net amount after offsetting each other will be presented in the balance sheet: ① The Group has the legal right to offset the recognized amount, and the legal right is currently enforceable; ② The Group plans to settle on a net basis, or realize the financial assets and pay off the financial liabilities at the same time.

11. Inventory

The Group's inventories mainly include raw materials, work in progress, inventory goods, consumable biological assets, packaging, low-value consumables, development products, development costs, etc.

Inventories are initially measured at cost. Inventory costs include purchasing costs, processing costs and other costs. Inventories are subject to a perpetual inventory system. When receiving or issuing inventory, the weighted average method is used to determine its actual cost. Low-value consumables and packaging materials are amortized using the one-time write-off method. The cost accounting of development products adopts the variety method. Direct costs are collected according to cost accounting objects, and development indirect costs are allocated according to a certain proportion of distribution standards and included in the relevant development product costs.

On the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, a provision for inventory depreciation is made and included in the current profit and loss. 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.

The Group's inventory depreciation provisions are generally accrued on a single inventory item; for inventories with a large quantity and a low unit price, they are accrued on the basis of inventory categories.

For inventories that are directly for sale, such as inventory goods 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 inventories held for the execution of sales contracts or labor contracts, the contract price is used as the basis for measurement of its net realizable value; Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

If the quantity of inventory held is greater than the quantity ordered in the sales contract, the excess net realizable value of the inventory will be measured based on the general sales price. For materials used for sale, the market price is used as the measurement basis of their net realizable value.

For materials inventories that need to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes. If the net realizable value of the finished product produced by it is higher than the cost, the material is measured at cost; if the drop in material price indicates that the net realizable value of the finished product is lower than the cost, the material is measured at net realizable value, and inventory depreciation provisions are made based on the difference.

On the balance sheet date, if the factors that previously caused the inventory value to be written down have disappeared, the amount of the write-down will be restored and reversed within the amount of the inventory devaluation provision that was originally accrued, and the reversed amount will be included in the current profit and loss.

12. Contract assets and contract liabilities

(1) Contract assets

Contract assets refer to the right to receive consideration for which the Group has transferred goods to customers, and this right depends on factors other than the passage of time.

(2) Contract liabilities

Contract liabilities reflect the Group's obligation to transfer goods to customers for consideration received or receivable from customers.

Contract assets and contract liabilities under the same contract are presented on a net basis.

13. Assets related to contract costs

(1) Method for determining the amount of assets related to contract costs

The Group's assets related to contract costs include contract performance costs and contract acquisition costs. Based on their liquidity, contract performance costs are presented in inventories and other non-current assets respectively, and contract acquisition costs are presented in other current assets and other non-current assets respectively.

Contract performance costs, that is, the costs incurred by the Group to fulfill the contract, are recognized as an asset as contract performance costs if they do not fall within the scope of relevant accounting standards such as inventories, fixed assets or intangible assets and meet the following conditions: the costs are directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred solely because of the contract; the costs increase the Group's future resources for fulfilling performance obligations; the costs are expected to be recovered.

Contract acquisition costs, that is, the incremental costs incurred by the Group to acquire the contract that are expected to be recovered, are recognized as contract acquisition costs and are recognized as an asset. If the amortization period of the asset does not exceed one year, the Group chooses the simplified treatment of recording it into the current profit and loss when incurred. Incremental costs refer to costs that would not be incurred without obtaining the contract (such as sales commissions, etc.). Other expenses incurred by the Group to obtain the contract, other than the incremental costs expected to be recovered (such as travel expenses that will be incurred regardless of whether the contract is obtained, etc.), are included in the current profit and loss when incurred, except for those that are clearly borne by the customer.

(2) Amortization of assets related to contract costs

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

The Group's assets related to contract costs are amortized on the same basis as the commodity revenue recognition related to the assets and included in the current profit and loss.

(3) Impairment of assets related to contract costs

If the book value of the assets related to the contract cost of the Group is higher than the difference between the following two items, the Group will make an impairment provision for the excess and recognize it as an asset impairment loss: ① The remaining consideration that the enterprise expects to obtain for transferring the goods related to the asset; ② The estimated cost to be incurred in transferring the related goods.

14. Long-term equity investment

The Group's long-term equity investments include investments in subsidiaries, investments in associates and equity investments in joint ventures.

(1) Judgment of significant influence and joint control

The Group's equity investments that have a significant impact on the investee are investments in associates. Significant influence means that the Group has the power to participate in decision-making on the financial and operating policies of the investee, but it is not able to control or jointly control the formulation of these policies with other parties. When the company directly or indirectly through subsidiaries owns more than 20% but less than 50% of the voting rights of the invested unit, it is generally considered to have significant influence on the invested unit, unless there is clear evidence that the group cannot participate in the invested unit's production and operation decisions or form control over the invested unit. If the Group holds less than 20% of the voting rights of the invested unit, the Group considers that it has a significant influence on the invested unit if it has representatives on the board of directors or similar authority of the invested unit, participates in the formulation process of the financial and operating policies of the invested unit, has important transactions with the invested unit, dispatches management personnel to the invested unit, provides key technical information to the invested unit, etc.

Equity investments in which the Group and other joint venture parties jointly control the investee and have rights to the net assets of the investee are investments in joint ventures. 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 participants sharing control rights. The Group's basis for judging joint control is that all participants or combinations of participants collectively control the arrangement, and decisions on activities related to the arrangement must be unanimously agreed upon by the participants who collectively control the arrangement.

(2) Accounting treatment method

The Group initially measures long-term equity investments acquired based on the initial investment cost.

For long-term equity investments obtained through business combinations under common control, the initial investment cost shall be the share of the book value of the combined party's net assets in the final controlling party's consolidated statements on the date of merger; if the book value of the net assets of the combined party on the date of merger is negative, the initial investment cost shall be determined as zero.

For long-term equity investments obtained through business mergers not under common control, the merger cost shall be regarded as the initial investment cost.

Except for long-term equity investments formed by business combinations, long-term equity investments obtained by payment of cash shall be recorded as the initial notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd. based on the actual purchase price paid and the expenses, taxes and other necessary expenses directly related to the acquisition of long-term equity investments.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

The initial investment cost; for long-term equity investments obtained by issuing equity securities, the investment cost is based on the fair value of the equity securities issued.

The Company's investments in subsidiaries are accounted for using the cost method in individual financial statements. When using the cost method, long-term equity investments are valued at the initial investment cost. When additional investment is made, the book value of the long-term equity investment cost is increased based on the fair value of the cost paid for the additional investment and the related transaction costs incurred. Cash dividends or profits declared by the investee to be distributed shall be recognized as investment income for the current period according to the amount to which the investee shall be entitled.

The Group's investments in joint ventures and associates are accounted for using the equity method. When using the equity method, if the initial investment cost of a long-term equity investment is greater than the share of the fair value of the investee's identifiable net assets at the time of investment, the book value of the long-term equity investment will not be adjusted; if the initial investment cost of the long-term equity investment is less than the share of the fair value of the investee's identifiable net assets at the time of investment, the difference will be adjusted to the book value of the long-term equity investment and included in the current profit and loss of the investment.

For long-term equity investments accounted for using the equity method for subsequent measurement, during the period when the investment is held, the book value of the long-term equity investment will be increased or decreased accordingly with changes in the owner's equity of the investee. When confirming the share of the investee's net profits and losses, based on the fair value of the investee's identifiable assets when the investment is obtained, in accordance with the Group's accounting policies and accounting periods, and offsetting the unrealized internal transaction profits and losses arising from transactions with associates and joint ventures that do not constitute business, the proportion attributable to the Group is calculated according to the share (internal transaction losses are asset impairment losses, the full amount is recognized), and the net profit of the investee is recognized after adjustment. The Group recognizes the net loss incurred by the investee until the book value of the long-term equity investment and other long-term interests that essentially constitute the net investment in the investee are reduced to zero, unless the Group has the obligation to bear additional losses.

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 investment income.

When all long-term equity investments accounted for by the equity method are disposed of, the relevant other comprehensive income previously accounted for by the equity method will be accounted for on the same basis as the investee's direct disposal of relevant assets or liabilities when accounting by the equity method is terminated. The owner's equity recognized due to changes in the investee's other owner's equity other than net profit and loss, other comprehensive income and profit distribution will all be transferred to the investment income of the current period when the accounting by the equity method is terminated.

If the remaining equity after the disposal of part of the equity is still accounted for using the equity method, the relevant other comprehensive income originally accounted for by the equity method will be treated on the same basis as the investee's direct disposal of relevant assets or liabilities and will be carried forward proportionally. The owner's equity recognized due to changes in other owners' equity of the investee other than net profit and loss, other comprehensive income and profit distribution will be carried forward to the investment income of the current period on a proportional basis.

If the joint control or significant influence on the invested unit is lost due to the disposal of part of the equity, the remaining equity after the disposal is recognized as a financial asset, and the difference between the fair value and the book value of the remaining equity on the date of loss of joint control or significant influence is included in the current profit and loss.

If control over the invested unit is lost due to the disposal of part of the long-term equity investment, and the remaining equity after disposal can jointly control or exert significant influence on the invested unit, it shall be accounted for according to the equity method. The difference between the book value of the equity disposed and the consideration for disposal shall be included in investment income, and the remaining equity shall be deemed to have been accounted for using the equity method since the time of acquisition. Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Adjustment; if the remaining equity after disposal cannot jointly control or exert significant influence on the invested unit, the financial assets shall be recognized, and the difference between the book value of the equity disposed and the disposal consideration shall be included in investment income, and the difference between the fair value and book value of the remaining equity on the date of loss of control shall be included in the current profit and loss.

If the Group's transactions from the step-by-step disposal of equity to the loss of controlling rights are not a package deal, each transaction will be accounted for separately. If it is a "package transaction", each transaction will be accounted for as a transaction that disposes of a subsidiary and loses control. However, before the loss of control, the difference between the disposal price of each transaction and the book value of the long-term equity investment corresponding to the equity disposed is recognized as other comprehensive income, and will be transferred to the current profit and loss for the loss of control when control is lost.

15. Investment real estate

The Group's investment real estate refers to real estate held for the purpose of earning rentals or capital appreciation, or both, including: (1) land use rights that have been leased; (2) land use rights that are held and prepared to be transferred after appreciation; (3) buildings that have been leased. Measured using cost model.

The Group's investment real estate uses the straight-line method to calculate depreciation or amortization. The estimated service life, net residual value rate and annual depreciation (amortization) rate of various types of investment real estate are as follows:

Category Depreciation life (years) Estimated residual value rate (%) Annual depreciation rate (%) Land use rights 15-50 3-5 6.47-1.90 Houses and buildings 15-40 3-5 6.47-2.38

Please refer to “Note 3. 21. Impairment of Long-term Assets” for details on the impairment testing methods and accounting treatment methods of the Group’s investment real estate.

16. Fixed assets

The Group's fixed assets are tangible assets held for the production of goods, provision of labor services, leasing or operation and management, and with a useful life of more than one year.

Fixed assets are recognized when the economic benefits related to them are likely to flow to the Group and their costs can be measured reliably. The Group's fixed assets include houses and buildings, machinery and equipment, transportation vehicles and other equipment.

The Group accrues depreciation on all fixed assets except those that have been fully depreciated and are still in use. The average life method is used when calculating depreciation. The classified depreciation life, estimated net residual value rate and depreciation rate of the Group’s fixed assets are as follows:

Serial number Category Depreciation life (years) Estimated residual value rate (%) Annual depreciation rate (%) 1 Houses and buildings 15-40 3-5 6.47-2.38 2 Machinery and equipment 5-14 3-5 19.40-6.79 3 Transportation 6-12 3-5 16.17-7.92

4 Other equipment 3-15 3-5 32.33-6.33 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

At the end of each year, the Group reviews the estimated useful life, estimated net residual value and depreciation method of fixed assets. If any changes occur, they will be treated as changes in accounting estimates.

17. Construction in progress

The Group's construction in progress refers to plants, equipment and other fixed assets under construction, which are calculated in detail based on the project and determined based on actual project expenditures, including various necessary project expenditures incurred during the construction period, borrowing costs that should be capitalized before the project reaches its intended usable state, and other related expenses.

From the date when a project under construction reaches its intended usable state, the estimated value will be transferred to fixed assets based on the project budget, cost or actual project cost, etc., and depreciation will be accrued from the next month. The difference in the original value of the fixed assets will be adjusted after the completion settlement procedures are completed.

Projects under construction will be transferred to fixed assets when they reach the intended usable state. The standards are as follows:

Item Standards and timing for carrying forward fixed assets

(1) The main construction project and supporting projects have been substantially completed; (2) The construction project has reached

Predetermined design requirements are subject to acceptance by survey, design, construction, supervision and other units;

Houses and buildings (3) After acceptance by external departments such as fire protection, land and resources, planning, etc.; (4) If the construction project reaches the intended usable state but has not yet processed the final settlement of completion, the estimated value will be transferred to fixed assets 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) The equipment has been debugged and can maintain normal and stable operation for a period of time within the machine equipment that needs to be installed and debugged; (3) The production equipment can stably produce qualified products for a period of time; (4) The equipment has been accepted by asset managers and users.

18. Borrowing costs

The Group capitalizes the borrowing costs directly attributable to the construction or production of assets that meet the capitalization conditions and includes them in the cost of relevant assets. Other borrowing costs are included in the current profits and losses. The assets determined by the Group to qualify for capitalization include those that require 1 Borrowing costs for fixed assets, investment real estate, inventories, etc. that require more than 20 years of acquisition, construction or production activities to reach the intended usable or salable state, shall be capitalized when asset expenditures have been incurred, borrowing costs have been incurred, and the acquisition, construction or production activities necessary to bring the assets to the 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, capitalization will stop, and the borrowing costs incurred thereafter shall be included in the current profit and loss. 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 until the acquisition, construction or production activities of the asset are restarted.

In each accounting period during the capitalization period, the Group recognizes the capitalized amount of borrowing costs in accordance with the following method: if it borrows special borrowings, it shall be determined based on the interest expenses actually incurred in the current period, minus the interest income obtained from unused borrowed funds deposited in banks or investment income obtained from temporary investments; if it occupies general borrowings, it shall be determined based on the weighted average of asset disbursements exceeding the part of special borrowings multiplied by the capitalization rate of the occupied general borrowings, in which the capitalization rate shall be calculated and determined based on the weighted average interest rate of general borrowings.

19. Biological assets

Biological assets refer to assets composed of living animals and plants.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(1) Determination standards for biological assets

1. The enterprise owns or controls the biological assets due to past transactions or events;

2. The economic benefits or service potential related to the biological assets are likely to flow into the enterprise;

3. The cost of the biological asset can be measured reliably.

(2) Classification of biological assets

The Group's biological assets include consumable biological assets (seedlings, medicinal materials, etc.) and productive biological assets (Menghai large-leaf species, star anise, etc.).

1. Consumable biological assets

Consumable biological assets refer to biological assets held for sale or harvested as agricultural products in the future. The cost of consumable biological assets held by the company includes necessary expenses such as seeds, fertilizers, pesticides and other material costs that are directly attributable to the asset before harvest, labor costs and apportioned indirect costs. Subsequent expenditures incurred after harvesting of consumable biological assets shall be included in the current profits and losses.

When consumable biological assets are harvested or sold, the cost is carried forward based on the book value using the weighted average method.

2. Productive biological assets

Productive biological assets refer to biological assets held for the purpose of producing agricultural products, providing labor services, or leasing. The cost of a productive biological asset is the necessary expenditure directly attributable to the asset before it reaches its intended production and operation purpose. The management and protection expenses incurred after the productive biological assets achieve the intended production and operation purposes are included in the current profit and loss. The depreciation of productive biological assets is calculated using the straight-line method. The depreciation rate is determined after deducting the residual value based on the estimated useful life of each type of biological assets.

The Group will review the useful life, estimated net residual value and depreciation method of productive biological assets at least at the end of the year. If any changes occur, they will be treated as changes in accounting estimates.

The difference between the proceeds from the sale, loss, death or damage of productive biological assets after deducting their book value and related taxes is included in the current profit and loss.

(3) Impairment of biological assets

The Group inspects consumable biological assets and productive biological assets at the end of each year. If there is conclusive evidence that the net realizable value of consumable biological assets or the recoverable amount of productive biological assets is lower than its book value due to natural disasters, pests, animal diseases, or changes in market demand, a provision for depreciation or impairment of biological assets will be made based on the difference between the net realizable value or the recoverable amount and the book value, and shall be included in the current profit and loss. If the influencing factors of the impairment of consumable biological assets have disappeared, the amount of the write-down shall be restored and reversed within the amount of the provision for decline in price originally accrued, and the reversed amount shall be included in the current profit and loss. Once the provision for impairment of productive biological assets is made, it cannot be reversed.

20. Intangible assets

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

The Group's intangible assets include land use rights, software use rights, patent rights, non-patented technologies, trademarks, franchises, etc., which are measured at the actual cost when acquired. Among them, purchased intangible assets are based on the actual price paid and other related expenses as the actual cost; for intangible assets invested by investors, the actual cost is determined based on the value stipulated in the investment contract or agreement. However, if the value stipulated in the contract or agreement is unfair, the actual cost is determined based on the fair value. However, intangible assets owned by the acquiree that are acquired in a merger not under common control but have not been recognized in its financial statements shall be recognized and measured at fair value when initially recognized.

(1) Useful life and its basis for determination, estimation, amortization method or review procedure

Land use rights are amortized evenly over the transfer period from the date of transfer; software use rights, non-patented technologies, and franchises are amortized evenly over the shorter of the estimated useful life and the beneficial years specified in the contract; patent rights are amortized evenly over the shorter of the expected useful life, the beneficial years stipulated in the contract, and the effective years stipulated by law. The amortization amount is included in the relevant asset cost and current profit and loss according to its beneficiary objects. The estimated useful life and amortization method of intangible assets with limited service life are reviewed at the end of each year. If there are changes, they will be treated as changes in accounting estimates.

The Group's trademarks and other intangible assets cannot foresee the period during which they will bring economic benefits to the Group, so their useful lives are uncertain. During each accounting period, the Group reviews the estimated useful lives of intangible assets with uncertain useful lives.

(2) Scope of aggregation of R&D expenditures and related accounting treatment methods

The scope of the Group's R&D expenditures includes employee salaries of R&D personnel, direct investment expenses, depreciation and amortization expenses, entrusted external research and development expenses, other expenses, etc.

The Group divides the expenditures on internal research and development projects into expenditures in the research phase and expenditures in the development phase based on the nature of the expenditures on internal research and development projects and whether there is great uncertainty in whether the intangible assets will eventually be formed from the R&D activities. Before drug research and development enters the clinical trial stage, it is the research stage of drug research and development, and the period from the beginning of clinical trials to obtaining drug registration approval is the development stage. Expenditures in the research phase are included in the current profit and loss when incurred. Expenditures in the development phase are capitalized when the following conditions are met at the same time: the Group assesses that it is technically feasible to complete the intangible asset so that it can be used or sold; the Group has the ability to complete the intangible asset and use or sell it. Intention; the intangible asset is expected to bring economic benefits to the Group; the Group has sufficient technical, financial and other resource support to complete the development of the intangible asset and has the ability to use or sell the intangible asset; the expenditures attributable to the development stage of the intangible asset can be measured reliably. Expenditures in the development phase that do not meet the capitalization conditions are included in the current profits and losses when incurred. The Group stipulates specific standards for classifying research phase expenditures and development phase expenditures for chemicals and biological products based on their different registration requirements, and sets them as the point at which the capitalization of R&D projects begins. The specific conditions are as follows:

1. Category 1 chemical drugs and Category 2 chemical drugs: the start of capitalization is the start of phase III clinical trials.

2. Chemical drugs Category 3, Category 4, Category 5

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

① R&D projects that require clinical trials (including BE): The capitalization begins when entering the formal clinical trial stage (including formal BE), and the basis for capitalization is to obtain the chemical drug clinical trial approval document from the National Medical Products Administration or the official BE trial registration number and the "R&D Expenditure Capitalization Approval Form".

② R&D projects that do not require clinical trials: The capitalization begins when the registration batch production stage that is representative of the proposed commercial production process and used for registration application is applied for registration with the National Medical Products Administration, and the acceptance report of the current stage of research results submitted by the R&D department and the "R&D Expenditure Capitalization Approval Form" are used as the basis for capitalization.

③Expenditures incurred on research and development projects that do not require clinical trials among the 5 categories of chemical drugs are handled according to the relevant standards for intangible assets.

3. When a chemical raw material drug R&D project enters the registration batch production stage that is required to apply for raw material drug registration to the National Medical Products Administration and is representative of the proposed commercial production process and used for registration declaration, it is the starting point for the capitalization of the chemical raw material drug development project. The acceptance report of the current stage of research results submitted by the R&D department and the "R&D Expenditure Capitalization Approval Form" are used as the basis for the capitalization of the project.

4. The capitalization of biological products begins with the launch of phase III clinical trials, and the capitalization basis is based on the acceptance report of the current stage of research results submitted by the R&D department and the "Approval Form for Capitalization of R&D Expenditures".

21. Impairment of long-term assets

The Group examines long-term equity investments, investment real estate, fixed assets, construction in progress measured using the cost model, productive biological assets measured using the cost model, right-of-use assets, intangible assets with limited useful lives and other items on each balance sheet date. When there are signs of impairment, the Group conducts an impairment test. Goodwill, intangible assets with indefinite useful lives, and development expenditures that have not yet reached their intended usable state are subject to impairment testing at the end of each year regardless of whether there are signs of impairment.

(1) Impairment of non-current assets other than financial assets (except goodwill)

When the Group conducts impairment testing, it determines its recoverable amount based on the higher of the net amount of the asset's fair value minus disposal costs and the present value of the asset's expected future cash flows. After impairment testing, if the book value of the asset exceeds its recoverable amount, the difference is recognized as impairment loss.

The Group estimates the recoverable amount on the basis of a single asset. If it is difficult to estimate the recoverable amount of an individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs. The identification of an asset group is based on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assets or asset groups.

The net amount of fair value less disposal expenses is determined by referring to the sales agreement price or observable market price of similar assets in orderly transactions that occurred on the measurement date, less the incremental costs directly attributable to the disposal of the asset. When estimating the present value of future cash flows, management determines the present value of future cash flows based on the estimated future cash flows generated during the continued use of the asset and upon final disposal, and selects an appropriate discount rate.

(2) Impairment of goodwill

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

For goodwill formed by business combinations, the Group will allocate its book value 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 group, it will allocate it to the relevant asset group 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 combination of asset groups that does not contain goodwill. Conduct an impairment test on the group combination and compare the book value with the recoverable amount. If the recoverable amount is lower than the book value, the impairment loss will first be deducted from the book value of the goodwill allocated to the asset group or asset group combination, and then the book value of other assets will be deducted in proportion to the proportion of the book value of other assets in the asset group or asset group combination except goodwill.

Once the impairment loss of the above assets is recognized, it will not be reversed in subsequent accounting periods.

22. Long-term deferred expenses

The Group's long-term deferred expenses include decoration expenses, engineering renovation expenses and other expenses that have been paid by the Group but should be amortized in this period and subsequent periods for more than one year. These expenses are amortized evenly during the benefit period. If the long-term deferred expense item cannot benefit future accounting periods, all the amortized value of the item that has not been amortized will be transferred to the current profit and loss.

23. Employee compensation

The Group's employee remuneration includes short-term remuneration, post-employment benefits, termination benefits and other long-term benefits.

Short-term compensation mainly includes employee wages, employee benefits, social security provident funds, etc. During the accounting period when employees provide services, the actual short-term compensation is recognized as a liability and included in the current profit and loss or related asset costs according to the beneficiary object.

Post-employment benefits mainly include basic pension insurance premiums, unemployment insurance premiums, enterprise annuities, etc., which are classified into defined contribution plans based on the risks and obligations borne by the company. For defined contribution plans, the deposits paid to a separate entity on the balance sheet date in exchange for services provided by employees during the accounting period are recognized as liabilities, and included in the current profit and loss or related asset costs according to the beneficiary object.

Dismissal benefits refer to the company terminating the labor relationship with employees before the employee's labor contract expires, or making suggestions for compensation in order to encourage employees to voluntarily accept redundancy. If the company provides dismissal benefits to employees, when the company cannot unilaterally withdraw the dismissal benefits provided due to the labor relationship termination plan or layoff proposal, or when the company recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits, whichever is earlier, the employee compensation liabilities arising from the dismissal benefits will be recognized and included in the current profit and loss.

24. Estimated liabilities

When the business related to pending litigation or arbitration, guarantee-type quality assurance and other contingencies meets the following conditions at the same time, the Group will recognize it as a liability: the obligation is a current obligation borne by the Group; the performance of the obligation is likely to cause the outflow of economic benefits from the enterprise; the amount of the obligation can be measured reliably.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the relevant current obligations, and factors such as risks, uncertainties, and time value of money related to contingencies are comprehensively considered. The Group reviews the current best estimates on the balance sheet date and adjusts the book value of estimated liabilities.

25. Share-based payment

Equity-settled share-based payments in exchange for services provided by employees are measured at the fair value of the equity instruments granted to employees on the date of grant. If the rights become exercisable immediately after grant, the fair value of the equity instrument on the grant date will be included in the relevant costs or expenses, and the capital reserve will be increased accordingly. If it is necessary to complete the services within the waiting period or meet the specified performance conditions before vesting, on each balance sheet date during the waiting period, based on the best estimate of the number of vested equity instruments and the fair value of the equity instrument grant date, the services obtained in the current period will be included in the relevant costs or expenses and capital reserves. 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, modifications that increase the fair value of equity instruments granted, or changes that are beneficial to employees on the modification date, are recognized as increases in services obtained.

If equity-settled share-based payment is cancelled, it will be treated as accelerated exercise on the cancellation date and the unconfirmed amount will be recognized immediately. If employees or other parties can choose to meet the non-vesting conditions but fail to do so within the waiting period, the equity-settled share-based payment will be cancelled. 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.

Cash-settled share-based payments are measured based on the fair value of the liabilities assumed by the Group based on shares or other equity instruments. If the rights are vested immediately after grant, the fair value of the liabilities assumed on the grant date will be included in the relevant costs or expenses, and the liabilities will be increased accordingly; if the rights need to be vested after completing the services during the waiting period or meeting the specified performance conditions, at each balance sheet date of the waiting period, based on the best estimate of the vesting situation and the fair value of the liabilities borne by the group, the services obtained in the current period will be included in the costs or expenses, and the liabilities will be adjusted 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.

26. Revenue recognition principles and measurement methods

(1) General principles

The Group recognizes revenue when it fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods or services. Obtaining control over relevant goods or services means being able to direct the use of the goods or the provision of the services and obtain almost all economic benefits from them.

Performance obligations refer to the Group's commitment in the contract to transfer clearly distinguishable goods to customers. If the Group's performance obligations meet one of the following conditions, they are performance obligations within a certain period; otherwise, they are performance obligations at a certain point in time: ① The customer obtains and consumes the economic benefits brought by the Group's performance at the same time as the Group performs the contract; ② The customer can control the goods under construction during the Group's performance; ③ The goods produced during the Group's performance have irreplaceable uses, and the Group has the right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

For performance obligations performed within a certain period of time, the Group recognizes revenue based on the performance progress within that period of time. When the progress of contract performance cannot be reasonably determined, if the costs incurred by the Group are expected to be compensated, revenue will be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined.

For performance obligations fulfilled at a certain point in time, the Group recognizes revenue at the point when the customer obtains control of the relevant goods. When the Group determines whether a customer has obtained control of a commodity, it comprehensively considers the following signs: ① The Group has a current right to receive payment for the commodity, which means that the customer has a current payment obligation for the commodity; ② The Group has transferred the legal ownership of the commodity to the customer, that is, the customer already has legal ownership of the commodity; ③ The Group The commodity has been physically transferred to the customer, which means that the customer has physically taken possession of the commodity; ④ The Group has transferred the major risks and rewards of ownership of the commodity to the customer, that is, the customer has obtained the major risks and rewards of ownership of the commodity; ⑤ The customer has accepted the commodity; ⑥ Other signs indicating that the customer has obtained control of the commodity.

The Group determines whether the Group is the principal responsible person or agent when engaging in transactions based on whether it has control over the goods before transferring them to the customer. If the Group is able to control the goods before transferring them to customers, then the Group is the principal responsible person and recognizes revenue based on the total consideration received or receivable; otherwise, the Group is an agent and recognizes revenue based on the amount of commissions or fees that it is expected to be entitled to receive. This amount should be determined based on the net amount of the total consideration received or receivable after deducting the price payable to other related parties, or based on the established commission amount or ratio.

For sales with a sales return clause, when the customer obtains control of the relevant goods, the Group recognizes revenue based on the amount of consideration that it is expected to be entitled to receive for transferring the goods to the customer, and recognizes it as an estimated liability based on the amount expected to be refunded due to sales return; at the same time, the Group recognizes revenue based on the amount expected to be returned due to the return of the goods; The book value of the goods at the time of transfer, after deducting the expected costs of recovering the goods (including the value impairment of the returned goods), is recognized as an asset, that is, the return cost receivable. The book value of the transferred goods at the time of transfer is the net carry-over cost after deducting the cost of the above assets. On each balance sheet date, the Group re-estimates future sales returns and re-measures the above assets and liabilities.

(2) Specific methods

The Group is mainly engaged in the production and sales of daily chemical products such as medicines, health foods, and personal care products, the development and sales of real estate, and the pharmaceutical trading business. The operating income mainly includes income from sales of goods and trading income, which is the fulfillment of performance obligations at a certain point in time.

①Income from sales of goods

For pharmaceuticals, food, and daily chemical products, the following conditions must be met for revenue recognition: the product has been delivered to the buyer in accordance with the contract and the buyer has received and accepted the goods, the amount of product sales revenue has been determined, the payment has been recovered or the receipt of payment rights has been obtained and the relevant economic benefits are likely to flow in, and the costs related to the product can be measured reliably.

For real estate sales, revenue recognition must meet the following conditions: the control of the goods has been transferred to the customer, the relevant revenue has been received or evidence of collection has been obtained, and the costs related to the sale of the property can be measured reliably, the operating revenue is recognized. That is, the Group will recognize the realization of revenue when the house is completed and accepted, the sales contract is signed, the buyer's payment certificate is obtained, and the physical handover procedures of the commercial house are completed.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

②Trade income

The Group's trading business involves the participation of third parties. If the Group obtains control of the goods from a third party and then transfers it to the customer, assumes the main responsibility for transferring the goods to the customer during the transaction, assumes the inventory risk, and has the right to independently determine the price of the goods traded, then the Group acts as the main responsible party in the transaction and recognizes trade revenue based on the total consideration that the Group is expected to be entitled to receive as stipulated in the contract. If the Group has no control over the goods before providing them to customers, the Group acts as an agent in the transaction and recognizes trade income on a net basis.

27. Government subsidies

Government subsidies are recognized when the conditions attached to them can be met and received. If the government subsidy is a monetary asset, it shall be measured according to the actual amount received. For a subsidy allocated according to a fixed quota standard, or when there is conclusive evidence at the end of the year that it can meet the relevant conditions stipulated in the fiscal support policy and it is expected to receive fiscal support funds, it shall be measured according to the amount receivable; if the government subsidy is a non-monetary asset, it shall be measured according to the fair value. If the fair value cannot be obtained reliably, it shall be measured according to the nominal amount (1 yuan).

The Group's government subsidies include asset-related government subsidies and income-related government subsidies. Among them, asset-related government subsidies refer to government subsidies obtained by the Group for the purchase, construction or other formation of long-term assets; income-related government subsidies refer to government subsidies other than asset-related government subsidies. If the subsidy objects are not clearly specified in government documents, the Group will make judgments based on the above-mentioned distinction principles. If it is difficult to distinguish, the whole group will be classified as income-related government subsidies.

Government subsidies related to assets are offset against the book value of the relevant assets or recognized as deferred income. Government subsidies related to assets that are recognized as deferred income are included in the current profit and loss in installments using the straight-line method over the useful life of the relevant assets. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the undistributed balance of relevant deferred income will be transferred to the profit and loss of the current period of asset disposal.

Government subsidies related to income that are used to compensate for relevant costs, expenses or losses in subsequent periods are recognized as deferred income, and are included in the current profit and loss or offset related costs during the period in which the relevant costs, expenses or losses are recognized. Government subsidies related to daily activities shall be included in other income or offset related costs and expenses according to the economic business essence; government subsidies unrelated to daily activities shall be included in non-operating income and expenses.

If the Group obtains policy-based preferential loan interest discounts, it will distinguish between two cases where the finance department allocates interest discount funds to the lending bank and the finance department directly allocates interest discount funds to the group. The accounting treatment shall be in accordance with the following principles: (1) The finance department will allocate interest discount funds to the lending bank, and the lending bank will use policy-based preferential loan interest subsidies. If a loan is provided to the Group at a preferential interest rate, the Group will use the actual loan amount received as the entry value of the loan, and calculate the relevant borrowing costs based on the loan principal and the policy preferential interest rate; (2) The finance department will directly allocate interest discount funds to the Group, and the Group will offset the corresponding interest discount against the relevant borrowing costs.

28. Deferred tax assets and deferred tax liabilities

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

The Group's deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the difference between the tax basis of assets and liabilities and their book value, as well as the difference between the tax basis and their book value of items that are not recognized as assets and liabilities but whose tax basis can be determined in accordance with tax laws (temporary differences).

The Group recognizes deferred income tax liabilities for all taxable temporary differences except in the following situations: (1) Temporary differences arise from the initial recognition of goodwill or the initial recognition of assets or liabilities arising from non-business merger transactions that affect neither accounting profits nor taxable income; (2) Taxable temporary differences related to investments in subsidiaries and associates, the Group is able to control the time when the temporary differences are reversed and the temporary differences are likely not to be reversed in the foreseeable future.

To the extent that the Group is likely to obtain future taxable income that can be used to offset the deductible temporary differences, deductible losses and tax credits, it recognizes deferred income tax assets for deductible temporary differences, deductible losses and tax credits that arise except in the following situations: (1) Temporary differences arise from situations that affect neither accounting profits nor taxable income ( Initial recognition of assets or liabilities arising from transactions other than business combinations (or deductible losses); (2) deductible temporary differences related to investments in subsidiaries and associates that do not meet the following conditions at the same time: 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.

The Group recognizes deferred income tax assets for all unused deductible losses to the extent that it is probable that sufficient taxable income will be available against which the deductible losses can be utilized.

On the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured according to the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled.

29. Leasing

(1) Identification of lease

On the contract inception date, the Group evaluates whether the contract is a lease or contains a lease. A contract is or contains a lease if one party to the contract transfers the right to control the use of one or more identified assets for a certain period in exchange for consideration. If the contract contains both lease and non-lease parts, the Group, as the lessor, will separate the lease and non-lease parts and conduct accounting treatment separately. Each lease part shall be accounted for in accordance with the leasing standards, and the non-lease part shall be accounted for in accordance with other applicable accounting standards for enterprises. As a lessee, the Group chooses not to separate the lease and non-lease parts, and merges each lease part and its related non-lease parts into leases respectively, and conducts accounting treatment in accordance with the lease standards; however, if the contract includes embedded derivatives that should be separated, the Group does not combine them with the lease part for accounting treatment.

(2) The Group as lessee

1. Lease confirmation

Except for short-term leases and leases of low-value assets, the Group recognizes right-of-use assets and lease liabilities for leases on the start date of the lease period.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Right-of-use assets refer to the Group's right as a lessee to use the leased assets during the lease term, and are initially measured at cost. The cost includes: ① the initial measurement amount of the lease liability; ② the lease payment amount paid on or before the start date of the lease term minus the amount related to the lease incentive that has been enjoyed; ③ the initial direct costs incurred; ④ the costs expected to be incurred to dismantle and remove the leased asset, restore the site where the leased asset is located, or restore the leased asset to the state agreed upon in the lease terms (except for those incurred for the production of inventory). If the Group remeasures lease liabilities in accordance with the relevant provisions of the lease standards, the book value of the right-of-use assets will be adjusted accordingly.

The Group depreciates right-of-use assets on a straight-line basis based on the expected consumption pattern of the economic benefits related to the 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, depreciation will be accrued over the remaining useful life of the leased asset; if it is not reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, depreciation will be accrued during the shorter of the lease term and the remaining useful life of the leased asset. The depreciation amount accrued shall be included in the cost of the relevant assets or the current profits and losses according to the purpose of the right-of-use assets.

The Group initially measures lease liabilities based on the present value of the unpaid lease payments at the beginning of the lease term. Lease payments include: ① fixed payments and substantive fixed payments, net of amounts related to lease incentives; ② variable lease payments that depend on an index or ratio; ③ the exercise price of the purchase option when the Group reasonably determines that it will exercise the purchase option; ④ the lease term reflects the payment required to exercise the lease termination option when the Group will exercise the lease termination option; ⑤ the amount expected to be paid based on the guaranteed residual value provided by the Group.

When calculating the present value of lease payments, the Group uses the incremental borrowing rate as the discount rate because it is unable to determine the interest rate implicit in the lease. The Group 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, except for those that should be capitalized.

After the start date of the lease period, when the Group recognizes the interest on the lease liability, it increases the carrying amount of the lease liability; when it pays the lease payment, it reduces the carrying amount of the lease liability. When the actual fixed payment amount changes, the expected amount payable of the guaranteed residual value changes, the index or ratio used to determine the lease payment changes, the evaluation results or actual exercise of the purchase option, lease renewal option or termination option change, the Group remeasures the lease liability based on the present value of the changed lease payment.

2. Short-term leasing and leasing of low-value assets

The Group chooses not to recognize right-of-use assets and lease liabilities for short-term leases with a lease term not exceeding 12 months and leases of low-value assets that would have a lower value when a single leased asset is a new asset. The Group will include the lease payments for short-term leases and low-value asset leases into the relevant asset costs or current profits and losses in each period during the lease term using the straight-line method or other systematic and reasonable methods.

(3) The Group is the lessor

As a lessor, if a lease transfers substantially all the risks and rewards related to the ownership of the leased asset, the Group classifies the lease as a finance lease, otherwise it is classified as an operating lease.

1. Financial lease

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

On the start date of the lease period, the Group recognizes finance lease receivables for finance leases and derecognizes finance lease assets. When the Group initially measures finance lease receivables, it uses the net lease investment as the entry value of finance 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 Group calculates and recognizes interest income in each period during the lease term based on fixed periodic interest rates. Variable lease payments obtained by the Group that are not included in the measurement of net lease investment are included in the current profit and loss when actually incurred.

2. Operating lease

During each period of the lease term, the Group uses the straight-line method to recognize the lease receipts from operating leases as rental income.

The initial direct expenses incurred by the Group in connection with operating leases are capitalized into the cost of the underlying assets of the lease, and are included in the current profits and losses in installments during the lease term on the same recognition basis as rental income. Variable lease payments obtained by the Group related to operating leases that are not included in the lease receipts are included in the current profit and loss when they actually occur.

If an operating lease changes, the Group will account for it as a new lease starting from the effective date of the change, and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the amount of receipts from the new lease.

30. Fair value measurement

The Group measures equity instrument investments at fair value on each balance sheet date. Fair value refers to the price that can be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.

For assets and liabilities measured or disclosed at fair value in financial statements, the fair value level to which they belong is determined based on the lowest level input value that is significant to the overall fair value measurement: the first level input value is the unadjusted quoted price in the active market for the same asset or liability that can be obtained on the measurement date; 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; the third level input value is the unobservable input value of the relevant asset or liability.

At each balance sheet date, the Group reassesses the assets and liabilities recognized in the financial statements that continue to be measured at fair value to determine whether there is a transition between fair value measurement levels.

For financial instruments traded in active markets, the Group determines their fair value based on active market quotations; for financial instruments not traded in active markets, the Group uses valuation techniques to determine its fair value, and the valuation model used is mainly a discounted cash flow model. The input values ​​of valuation technology mainly include: risk-free interest rate, credit premium and liquidity premium for debt type; valuation multiplier and liquidity discount for equity type.

The fair value of the third level is determined based on the Group's valuation model, such as a discounted cash flow model. The Group also considers the initial transaction price, recent transactions of the same or similar financial instruments, or entirely third-party transactions of comparable financial instruments.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

For unlisted equity investments held, if the fair value estimate is uncertain, the Group adopts the market method to determine the fair value of the unlisted equity investment. This requires the Group to determine comparable listed companies, select market multipliers, estimate liquidity discounts, etc., so it is uncertain.

31. Changes in important accounting policies and accounting estimates

(1) Important changes in accounting policies: None.

(2) Important changes in accounting estimates: None.

4. Taxes

1. Main tax types and tax rates

Type of tax Tax calculation basis Tax rate

Deductions allowed for the current period are based on taxable sales multiplied by the applicable tax rate.

Value-added tax 1%, 3%, 5%, 6%, 9%, 13%

Calculation and payment of the difference after deducting input tax

Urban maintenance and construction tax Based on the actual turnover tax payable 7%, 5% education surcharge Based on the actual turnover tax payable 3% local education surcharge Based on the actual turnover tax payable 2% Land value-added tax Value-added amount obtained from the transfer of real estate 30%-60%

For self-occupied properties, 30% of the original value of the property will be deducted from the residual value. For self-occupied properties, 1.2% and real estate tax will be calculated.

Calculated; rental properties are calculated based on rental income, 12% for rental properties

25%, 15%, 5% (tax rate 20%, corporate income tax taxable income

25% reduction on taxable income) Profits tax Taxable income 16.50%

Explanation of taxpayers with different corporate income tax rates:

Name of taxpayer Income tax rate (%) Guangxi Wuzhou Zhongheng Group Co., Ltd. (referred to as "Zhongheng Group") 25% Guangxi Wuzhou Pharmaceutical (Group) Co., Ltd. (referred to as "Wuzhou Pharmaceutical") 15% Nanning Zhongheng Investment Co., Ltd. (referred to as "Nanning Zhongheng Investment") 25% Zhaoqing Zhongheng Pharmaceutical Co., Ltd. (referred to as "Zhaoqing Pharmaceutical") 25% Guangxi Zhongheng Medical Technology Co., Ltd. (referred to as "Zhongheng Medical Technology") 25% Guangxi Shuangqian Health Industry Co., Ltd. (referred to as "Double Money Health Shares") 15% Wuzhou Shuangqian Health Food Canned Co., Ltd. (referred to as "Double Money Health") 20% (5% paid) Zhaoqing Zhongheng Shuangqian Industrial Co., Ltd. (referred to as "Zhaoqing Shuangqian") 25% Nanning Zhongheng Shuangqian Industrial Co., Ltd. (referred to as "Nanning Shuangqian") 20% (5% paid) Guangxi Shuangqian Health Industry Development Co., Ltd. (referred to as "Double Money Health Development") 25% Guangxi Wuzhou Zhongheng Pharmaceutical Co., Ltd. (referred to as "Zhongheng Pharmaceutical") 25% Guangxi Guangtou Pharmaceutical Co., Ltd. (referred to as "Guangtou Pharmaceutical") 25% Guangxi Wuzhou Zhongheng Group Co., Ltd. Notes to the Financial Statements

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Name of taxpayer Income tax rate (%) Guangxi Zhongheng Traditional Chinese Medicine Industry Development Co., Ltd. (referred to as "Chinese medicinal materials") 25% Guangxi Zhongheng Innovative Pharmaceutical Research Co., Ltd. (referred to as "Zhongheng Innovative Medicine") 25% Nanning Zhongheng Tongde Pharmaceutical Industry Investment Fund Partnership (Limited Partnership) Not applicable Guangxi Tianqijiahua Industrial Co., Ltd. (referred to as "Tianqijiahua") 25% Guangxi Hengxin Pharmaceutical Chain Co., Ltd. (referred to as "Hengxin Chain") 20% (5% paid) Guangxi Lihe Zhongheng Pharmaceutical Investment Partnership (limited partnership) Not applicable Zhongheng Yixinke Venture Capital Co., Ltd. (referred to as "Zhongheng Yixin") 25% Guangxi Defu Investment Partnership (limited partnership) Not applicable Guangxi Lisui Investment Partnership (limited partnership) Not applicable Chongqing Laimei Pharmaceutical Co., Ltd. (referred to as "Laimei Pharmaceutical") 15% Chongqing Laimei Pharmaceutical Co., Ltd. (referred to as "Laimei Pharmaceutical") 15% Hunan Kangyuan Pharmaceutical Co., Ltd. (referred to as "Kangyuan Pharmaceutical") 15% Chongqing Laimei Longyu Pharmaceutical Co., Ltd. (referred to as "Laimei Longyu") 15% Tibet Laimeiji Pharmaceutical Co., Ltd. (referred to as "Laimeiji") 15% Chengdu Jinxing Health Pharmaceutical Co., Ltd. (referred to as "Chengdu Jinxing") 25% Sichuan Yingrui Pharmaceutical Technology Co., Ltd. (referred to as "Sichuan Yingrui") 15% Hainan Laimei Medical Devices Co., Ltd. (referred to as "Hainan Medical Devices") 20% Chongqing Laimei Jude Pharmaceutical Chain Co., Ltd. (referred to as "Laimei Jude") 20% Chongqing Laimei Zhenyu Pharmaceutical Co., Ltd. (referred to as "Laimei Zhenyu") 20% Aijia Special Line Health Management Co., Ltd. (referred to as "Aijia Special Line") 20% Beijing Yaohua Piaoxiang Pharmaceutical Technology Co., Ltd. (referred to as "Yaohua Piaoxiang") 20% Beijing Blue Sky Sharing Health Management Co., Ltd. (referred to as "Blue Sky Sharing") 20% Lai Mei (Hong Kong) Co., Ltd. (referred to as "Lai Mei Hong Kong") 16.50% (profits tax) Guangzhou Saifu Health Industry Investment Partnership (limited partnership) Not applicable Changzhou Lai Mei Qingfeng Pharmaceutical Industry Investment Center (limited partnership) Not applicable Chongqing Medico Medical Technology Co., Ltd. (referred to as "Medic") 20%

2. Tax incentives

(1) Income tax

1. Corporate income tax incentives for the Western Development Initiative

According to the "Announcement of the Ministry of Finance, the State Administration of Taxation, and the National Development and Reform Commission on the Continuation of the Corporate Income Tax Policy for the Development of the Western Region" (Ministry of Finance Announcement No. 23, 2020), from January 1, 2021 to December 31, 2030, the notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Enterprises in encouraged industries in the western region are levied a corporate income tax at a reduced rate of 15%. The Company's subsidiaries Wuzhou Pharmaceutical, Shuangqian Health, Laimei Pharmaceutical, Laimei Longyu and Laimei Economics are enterprises that meet the regulations and will be charged a corporate income tax at a reduced rate of 15% in 2025.

2. Income tax incentives for high-tech enterprises

Laimei Pharmaceutical, Kangyuan Pharmaceutical and Sichuan Yingrui are high-tech enterprises, and the applicable income tax rate is 15%. In addition, Wuzhou Pharmaceutical and Shuangqian Health Co., Ltd. are also high-tech enterprises.

3. Income tax preferential treatment for small and low-profit enterprises

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Relevant Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" (Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation of 2023), the policy of calculating taxable income at a reduced rate of 25% for small and low-profit enterprises and paying corporate income tax at a rate of 20% will continue until December 31, 2027. The company's subsidiaries Shuangqian Health Care, Nanning Shuangqian, Hengxin Pharmaceutical Chain, Hainan Medical Equipment, Laimei Jude, Laimei Zhenyu, Aijia Special Line, Yaohua Piaoxiang, Blue Sky Sharing, and Medico are eligible small and low-profit enterprises and enjoy this preferential tax policy.

(2) Value-added tax and other taxes

1. According to the "Notice of the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation, and the State Food and Drug Administration on the Value-Added Tax Policy for Anti-Cancer Drugs" (Finance and Taxation [2018] No. 47): Starting from May 1, 2018, general VAT taxpayers who produce, sell, wholesale, and retail anti-cancer drugs can choose to calculate and pay VAT according to the simplified method at a 3% levy rate. The subsidiary Guangtou Pharmaceutical enjoys this policy.

2. According to Article 15 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" (Decree No. 538 of the State Council of the People's Republic of China in 2008): sales of contraceptives and appliances by general taxpayers are exempt from VAT. The subsidiary Guangtou Pharmaceutical enjoys this policy.

3. According to the "Interim Regulations of the People's Republic of China on Value-Added Tax", taxpayers who export goods are subject to the tax refund (exemption) provisions, should go through export procedures with the customs, and with the export declaration form and other relevant documents, declare to the competent tax authorities on a monthly basis to handle the tax refund (exemption) for the export goods within the prescribed export tax refund (exemption) declaration period. The subsidiary Shuangqian Health Co., Ltd. enjoys this policy.

4. According to the "Notice of the General Office of the Ministry of Industry and Information Technology on matters related to the formulation of the list of advanced manufacturing enterprises that enjoy the additional value-added tax credit policy in 2023" (Industry and Information Technology Department Caihan ﹝2023﹞267), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period to offset the value-added tax payable. Subsidiaries Wuzhou Pharmaceutical and Shuangqian Health enjoy this policy.

5. According to Article 7 of the "Announcement of the Finance Bureau and the State Administration of Taxation on Preferential Tax Policies for Public Rental Housing" No. 33 of 2023, public rental housing is exempt from property tax. Rental income derived from operating public rental housing is exempt from value-added tax. Public rental housing operation and management units should separately calculate the rental income of public rental housing. If they fail to do separate calculations, they shall not enjoy the preferential policies of exemption from value-added tax and property tax. The preferential policy implementation period is extended to December 31, 2025. The company's real estate development branch enjoys this policy.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

6. According to 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 2022 of the Ministry of Finance and the State Administration of Taxation), 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, education surcharge, and local education surcharge can be reduced within 50% of the tax range for small-scale value-added tax taxpayers, small low-profit enterprises, and individual industrial and commercial households. The company's subsidiaries Hengxin Pharmaceutical Chain and Shuangqian Health Development enjoy this policy.

7. According to the "Notice of the Department of Finance of the Guangxi Zhuang Autonomous Region on clarifying preferential policies for local water conservancy construction funds", from April 1, 2022 to December 31, 2026 (the period), all collection objects in our region will be exempted from local water conservancy construction funds. The company's real estate development branch and subsidiaries Guangtou Pharmaceutical, Chinese Herbal Medicine, and Tianqijia Chemical enjoy this policy.

5. Notes on main items of consolidated financial statements

For the financial statement data disclosed below, unless otherwise specified, the "beginning of the year" refers to January 1, 2025, the "end of the year" refers to December 31, 2025, the "current year" refers to the period from January 1 to December 31, 2025, and the "previous year" refers to the period from January 1 to December 31, 2024. The currency unit is RMB.

1. Monetary funds

Item Ending balance Beginning balance

cash on hand

Bank deposits 3,404,572,590.84 4,054,356,824.64 Other monetary funds 1,766,462.25 392,001.82 Deposits with finance companies

Total 3,406,339,053.09 4,054,748,826.46 Including: Total amount deposited abroad 42,817,848.46 42,529,859.44

Note 1: RMB 3,434,884.25 in bank deposits is the accrued deposit interest income;

Note 2: The amounts deposited abroad include the amounts deposited in Hong Kong by Sun Company Laimil Hong Kong and the balance of offshore accounts opened in mainland China.

2. Trading financial assets

Item Ending balance Beginning balance

Funds measured at fair value and changes included in current profit and loss

77,018,399.01 90,258,694.86 Financing assets

Of which: debt instrument investment

Equity Instrument Investment

Others 77,018,399.01 90,258,694.86 designated as measured at fair value with changes included in current profits and losses

beneficial financial assets

Total 77,018,399.01 90,258,694.86 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Note: The other financial assets listed in the above table are mainly asset management plan products issued by Guohai Securities, a related party, using no more than 800 million of its own funds approved by the resolution of the shareholders' meeting in 2019. The product will be launched in December 2024. The investment has expired on the 16th and has been liquidated and recovered. Some of the remaining investment projects cannot be exited temporarily, involving a remaining investment principal of 101,324,141.48 yuan and a gain from changes in fair value of -24,305,742.47 yuan.

3. Notes receivable

(1) Classified presentation of notes receivable

Item Ending balance Beginning balance

Bank acceptance bill 18,728,667.56 7,228,355.26 Commercial acceptance bill 1,858,428.88 Total 18,728,667.56 9,086,784.14

(2) Classified presentation based on bad debt accrual method

Year-end balance

Book balance Bad debt provision

Category

Provision ratio Book value amount Ratio (%) Amount

(%)

Provision for bad debts on an individual basis

notes receivable

Provision for bad debts on a portfolio basis

18,728,667.56 100.00 18,728,667.56 notes receivable

Among them: commercial acceptance bill

Bank acceptance bill 18,728,667.56 100.00 18,728,667.56 Total 18,728,667.56 100.00 18,728,667.56

(continued table)

Beginning balance

Book balance Bad debt provision

Category

Provision ratio Book value amount Ratio (%) Amount

(%)

Provision for bad debts on an individual basis

notes receivable

Provision for bad debts on a portfolio basis

9,124,711.26 100.00 37,927.12 0.42 Notes receivable 9,086,784.14

Including: commercial acceptance bill 1,896,356.00 20.78 37,927.12 2.00 1,858,428.88

Bank acceptance bill 7,228,355.26 79.22 7,228,355.26 Total 9,124,711.26 100.00 37,927.12 0.42 9,086,784.14

(3) Bad debt provisions accrued, recovered or reversed for notes receivable this year

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Amount of changes during the year

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Commercial acceptance bill 37,927.12 37,927.12

Total 37,927.12 37,927.12

(4) Pledged notes receivable at the end of the year: None.

(5) Notes receivable that have been endorsed or discounted at the end of the year and have not yet matured on the balance sheet date

Item Amount derecognized at the end of the year Amount not derecognized at the end of the year Bank acceptance bill 17,810,387.56 Commercial acceptance bill

Total 17,810,387.56

4. Accounts receivable

(1) Accounts receivable are presented based on aging

Aging Book balance at the end of the year Book balance at the beginning of the year

Within 1 year 354,658,718.14 473,464,582.06 1-2 years 56,345,568.26 52,366,404.88 2-3 years 15,962,141.76 7,195,824.89 More than 3 years 36,906,151.24 34,360,957.39 Of which: 3-4 years 4,175,059.84 7,904,534.88 4-5 years 7,689,639.33 1,498,573.26

More than 5 years 25,041,452.07 24,957,849.25 Subtotal 463,872,579.40 567,387,769.22 Less: bad debt provision 52,868,655.89 43,719,928.37 Total 411,003,923.51 523,667,840.85

(2) Accounts receivable are classified and presented according to the bad debt accrual method

Year-end balance

Book balance Bad debt provision

Kind

Provision ratio Book value amount Ratio (%) Amount

(%)

The individual provision for bad debts should be

12,514,428.11 2.70 6,727,181.58 53.76 5,787,246.53Account collection

Total by combination of credit risk characteristics

451,358,151.29 97.30 46,141,474.31 10.22 405,216,676.98 Accounts receivable with provision for bad debts

Including: Aging combination 451,358,151.29 97.30 46,141,474.31 10.22 405,216,676.98 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Year-end balance

Category Book balance Bad debt provision

Provision ratio Book value amount Ratio (%) Amount

(%)

Total 463,872,579.40 100.00 52,868,655.89 11.40 411,003,923.51

(continued table)

Beginning balance

Book balance Bad debt provision

Kind

Provision ratio Book value amount Ratio (%) Amount

(%)

The individual provision for bad debts should be

7,302,632.82 1.29 3,563,900.82 48.80 3,738,732.00 Account collection

Total by combination of credit risk characteristics

560,085,136.40 98.71 40,156,027.55 7.17 519,929,108.85 Accounts receivable with provision for bad debts

Including: Aging combination 560,085,136.40 98.71 40,156,027.55 7.17 519,929,108.85 Total 567,387,769.22 100.00 43,719,928.37 7.71 523,667,840.85

1. Accounts receivable are provided with bad debt provisions individually.

Ending balance Beginning balance

Name Provision

Provision for book balance and provision for bad debts Proportion of book balance and provision for bad debts

Reason (%)

It is expected that recycling will exist in customer one 6,411,604.12 2,697,710.02 42.08

Certain difficult customers 2 3,001,474.00 3,001,474.00 100.00 3,001,474.00 3,001,474.00 Expected to be unrecoverable

The contractor is responsible for customer three 2,073,352.43 3,738,732.00

Recovered, risk-free customer four 227,401.22 227,401.22 100.00 It is expected that customer five cannot be recovered 184,670.20 184,670.20 100.00 184,670.20 184,670.20 It is expected that other sporadic customers cannot be recovered 615,926.14 615,926.14 100.00 377,756.62 377,756.62 Total expected to be unrecoverable 12,514,428.11 6,727,181.58 — 7,302,632.82 3,563,900.82 —

2. Bad debt provisions are made for accounts receivable on a group basis.

Accounts receivable with provision for bad debts based on aging combination

Year-end balance

Aging

Book balance Bad debt provision Proportion of provision (%) Within 1 year 353,683,519.41 4,487,780.15 1.27 1-2 years 50,573,178.09 4,593,999.79 9.08 2-3 years 14,591,885.13 5,350,521.44 36.67 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Year-end balance

Aging

Book balance Bad debt provision Provision ratio (%) 3-4 years 3,182,147.69 2,421,219.29 76.09

4-5 years 7,515,491.53 7,476,024.20 99.47

More than 5 years 21,811,929.44 21,811,929.44 100.00

Total 451,358,151.29 46,141,474.31 —

(3) Bad debt provisions accrued, recovered or reversed for accounts receivable this year

Amount of changes during the year

Category Beginning Balance Ending Balance Write-Off or

Provision Recovery or transfer Others

Write off

Single item

3,563,900.82 3,163,280.76 6,727,181.58 Provision

combination

40,156,027.55 8,971,493.27 2,986,046.51 46,141,474.31 Provision

Total 43,719,928.37 12,134,774.03 2,986,046.51 52,868,655.89

(4) Accounts receivable and contract assets with the top five year-end balances collected by debtors

This year, the aggregate amount of the top five accounts receivable at the end of the year by debtors was 106,659,321.83 yuan, accounting for 22.99% of the total year-end balance of accounts receivable. The corresponding aggregate amount of the year-end balance of bad debt provisions was 6,241,195.84 yuan.

5. Receivables Financing

(1) Classified presentation of financing receivables

Item Ending balance Beginning balance

Bank acceptance bill 8,903,268.06 26,315,469.17 Supply chain finance (Yunxintong) 120,000.00 2,999,882.88 Total 9,023,268.06 29,315,352.05

(2) Accounts receivable financing is classified and presented according to the bad debt accrual method

The Group's receivable financing mainly consists of bank acceptance bills and Yunxintong supply chain financial bills issued by banks with higher credit ratings. The Group believes that the bank acceptance bills held by it have no credit risk and will not cause losses due to defaults by banks or other issuers. The expected credit losses are zero and no credit loss provisions are required; the Yunxintong received The above-mentioned vouchers can also be transferred on the corresponding platform. According to the agreement of the relevant platform, the endorsement transfer and factoring discount of Yunxin bills in the company's supply chain finance are not attached with the right of recourse. The Group believes that the expected credit loss of such supply chain finance platform claims held by it is zero, and there is no need to accrue credit loss provisions.

(3) Financing of pledged receivables at the end of the year: None.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(4) Financing of receivables that have been endorsed or discounted at the end of the year and have not yet matured on the balance sheet date

Item Amount derecognized at the end of the year Amount not derecognized at the end of the year Bank acceptance bill 98,386,843.39

Total 98,386,843.39

6. Advance payments

(1) Aging of prepayments

Ending balance Beginning balance

Project

Amount Proportion (%) Amount Proportion (%) Within 1 year 33,200,781.23 71.63 50,282,168.01 93.49 1-2 years 10,404,988.21 22.45 1,637,456.60 3.04 2-3 years 962,043.82 2.08 1,447,294.87 2.69 More than 3 years 1,780,073.30 3.84 419,041.62 0.78Total 46,347,886.56 100.00 53,785,961.10 100.00

(2) Prepayments with the top five year-end balances by prepayment objects

The total amount of prepayments with the top five year-end balances collected by prepayment objects this year was 19,164,834.98 yuan, accounting for 41.35% of the total year-end balance of prepayments.

7. Other receivables

Item Ending balance Beginning balance

interest receivable

Dividends receivable

Other receivables 609,564,994.64 757,138,287.61 Total 609,564,994.64 757,138,287.61

7.1 Other receivables

(1) Other receivables are classified according to the nature of the payment

Nature of payment Book balance at the end of the year Book balance at the beginning of the year

Asset disposal funds 373,888,219.79 526,878,680.00 Security deposit 60,372,140.31 64,954,738.65 Collection and payment 2,851,486.38 3,458,970.73 Reserve loan 246,154.79 320,586.29 Other receivables 487,199,007.11 410,818,146.48 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Nature of payment Book balance at the end of the year Book balance at the beginning of the year

Total 924,557,008.38 1,006,431,122.15

(2) Other receivables are listed based on aging

Aging Book balance at the end of the year Book balance at the beginning of the year

Within 1 year 237,487,208.04 315,151,182.57 1-2 years 22,468,833.40 49,891,600.09 2-3 years 46,618,313.70 45,192,143.00 More than 3 years 617,982,653.24 596,196,196.49 Of which: 3-4 years 41,081,709.31 478,084,720.41 4-5 years 458,849,385.71 11,241,107.17

More than 5 years 118,051,558.22 106,870,368.91 Subtotal 924,557,008.38 1,006,431,122.15 Less: bad debt provision 314,992,013.74 249,292,834.54 Total 609,564,994.64 757,138,287.61

(3) Other receivables are classified and presented according to the bad debt accrual method

Year-end balance

Category Book balance Bad debt provision

Book value ratio Provision ratio

Amount Amount

(%) (%)

Other receivables with single provision for bad debts 280,957,680.78 30.39 203,577,856.45 72.46 77,379,824.33 Provision for bad debts based on combination of credit risk characteristics

643,599,327.60 69.61 111,414,157.29 17.31 532,185,170.31 Other receivables

Including: Asset disposal portfolio 373,888,219.79 40.44 17,957,299.70 4.80 355,930,920.09 Aging portfolio 146,482,096.98 15.84 93,456,857.59 63.80 53,025,239.39 Agency business receivables 117,585,141.31 12.72 117,585,141.31

Combination of margin, reserve funds, etc. 5,643,869.52 0.61 5,643,869.52 Total 924,557,008.38 100.00 314,992,013.74 34.07 609,564,994.64

(continued table)

Beginning balance

Category Book balance Bad debt provision

Book value ratio Provision ratio

Amount Amount

(%) (%)

Other receivables with single provision for bad debts 209,037,507.62 20.77 164,305,157.27 78.60 44,732,350.35 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Beginning balance

Category Book balance Bad debt provision

Book value ratio Provision ratio

Amount Amount

(%) (%)

Provision for bad debts based on combination of credit risk characteristics

797,393,614.53 79.23 84,987,677.27 10.66 712,405,937.26 Other receivables

Including: Asset disposal portfolio 526,878,680.00 52.35 10,895,147.33 2.07 515,983,532.67 Aging portfolio 147,026,912.42 14.61 74,092,529.94 50.39 72,934,382.48 Agency business receivables 114,909,562.72 11.42 114,909,562.72 Combination of deposits, reserve funds, etc. 8,578,459.39 0.85 8,578,459.39 Total 1,006,431,122.15 100.00 249,292,834.54 24.77 757,138,287.61 Note in the attached statement Finance Company Co., Ltd. Hengzhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Prepare bad debt provision items according to amounts receivable and other items

)1

The first year of Eyu

The last year of Eyu

Reasonable provision

name

Prepare for bad debts

balance account

)% (proportional provision

Prepare for bad debts

balance account

Caida Zhengzheng issued guarantees and personal debts, and the contract violated the personal debts and was in difficulty

60.109,198,63

60.109,198,63

00.001

60.109,198,63

60.109,198,63

Co., Ltd. invests in pharmaceutical medicine in western Tibet

Payment of principal or interest for overdue or breach of contract

Note

00.03

18.231,322,7

73.901,770,42

Co., Ltd. Logistics Medical Hall Caoqu Xiguang

Co., Ltd. Pharmaceutical Medicine Xinghai Xiguang

Note

00.03

49.599,796,5

28.913,399,81

) Co., Ltd. Heyinwang Haixi Guangmingyuan (

Note

00.03

44.818,575,5

64.160,685,81

Co., Ltd. Pharmacy Construction Andu Xiguang

Note

00.03

43.814,125,3

31.160,837,11

Co., Ltd. Pharmaceutical Renhua Difu Xiguang

Note

00.03

89.497,654,3

29.946,225,11

Co., Ltd. Co., Ltd. develops technological pharmaceuticals province Nanyun

Difficult recovery plan

39.140,752,12

49.149,827,12

00.001

39.394,140,12

39.394,140,12

Co., Ltd.

Difficult recovery plan

60.754,007,6

26.824,790,81

16.08

23.180,885,41

26.824,790,81

Co., Ltd. has development industry in Hong Kong, Wuxi and Guangzhou

Difficult recovery plan

63.718,914,61

63.718,914,61

00.001

63.718,914,61

63.718,914,61

Co., Ltd. Industrial Chemical Pharmaceutical Medical Teske Binyi

Recycling laws are unpredictable

00.000,000,61

00.000,000,61

00.001

00.000,000,61

00.000,000,61

Co., Ltd. Service Information Medical Medical Tongxin Qingchong

No risk

87.874,368,23

86.762,400,41

Sarah

Recycling laws are unpredictable

37.708,713,21

37.708,713,21

00.001

37.708,713,21

37.708,713,21

Co., Ltd. Industrial Health Meilai Qingchong

Recycling laws are unpredictable

00.000,000,21

00.000,000,21

00.001

00.000,000,21

00.000,000,21

Co., Ltd. has a number of technical and pharmaceutical companies that have achieved success in one year

Recycling Act No estimate 00.000,000,01 00.000,000,01 00.001

00.000,000,01 00.000,000,01

Co., Ltd.'s pharmaceutical company, Lifespan, is expected to recover 57.729,189,8 57.729,189,8 00.001

57.729,189,8 57.729,189,8

Mingde Marine Engineering Equipment Co., Ltd.’s recovery plan for maritime difficulties is expected to be 00.008,215,5 00.008,215,5 00.001

00.008,215,5 00.008,215,5

Bureau Yu Diocese Zhou Chang City Zhou Wu Difficulty Recovery Plan Estimated 45.083,805,4 45.083,805,4 00.001

45.083,805,4 45.083,805,4

Co., Ltd.'s industrial chemical fines recycling method in Qingchong, Weiya City has no forecast

00.001

00.000,005,3 00.000,005,3

Co., Ltd. Hengzhongzhou Wuxi Guanglin Guixiguang Co., Ltd. Hengzhongzhou Wuxiguang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

The first year of Eyu

The last year of Eyu

Reasonable provision

name

Prepare for bad debts

balance account

)% (proportional provision

Prepare for bad debts

balance account

Recycling laws are unpredictable

00.000,002,3

00.000,002,3

00.001

00.000,002,3

00.000,002,3

Co., Ltd. Group Investment Medical Care

Recycling laws are unpredictable

00.000,000,2

00.000,000,2

00.001

05.305,381,2

05.305,381,2

Company Limited Liability Technology Co., Ltd. Zhi Qingzhong

Recycling laws are unpredictable

00.000,000,2

00.000,000,2

00.001

00.000,000,2

00.000,000,2

Jingwen Zhu

Recycling laws are unpredictable

92.376,528,1

92.376,528,1

00.001

92.376,528,1

92.376,528,1

Xijiang Medical Technology Co., Ltd.

Difficult recovery plan

00.001

00.739,702,1

00.739,702,1

Company Limited

Difficult recovery plan

00.032,001,1

00.032,001,1

00.001

00.032,001,1

00.032,001,1

Co., Ltd. Technopharma Medical Senreilai Beijing North

Jinji Housing-Ministry Management Jinji Public Housing City Zhouwu

Difficult recovery plan

00.001

66.824,560,1

66.824,560,1

Modified house-

Recycling Act No estimate 00.000,000,1 00.000,000,1 00.001

00.000,000,1 00.000,000,1

Poju55.021,985,2 55.021,985,2 76.68

08.317,757,2 69.188,181,3

Bit single star zero other—

72.751,503,461 26.705,730,902

— 54.658,775,302 87.086,759,082

The subsidiaries of Hehe Medical Investment and Guangdong Co., Ltd. have paid annual dividends in the first half of the year. The pharmaceutical department's molding business sells products, and the list of items received by Xiguang "Tang Cao Qu" is called "Tang Cao Qu" (the company's logistics company has a logistics company). As of now. After the court filed a lawsuit against the pharmaceutical company, the lawyer issued many letters and collection reminders, and the payment agreement was not paid for the goods that were later received. Tou Guang, the lawyers and personnel involved in the investigation of the case increased, and the court opened the first trial court to proceed with the lawsuit against Yao Guang. Daily reports. According to the lawsuit, the sales revenue of the business was not confirmed, so the company was cautious and reported the case to the Ningnan Bureau of Anggong City, Nanjiang Bureau, which may have led to the victim of a fraudulent contract. Ningnan City Bureau Security Bureau will forward the relevant materials to make a ruling, and the medical doctors who requested the lawsuit will reject the ruling. The second court hearing of the suspected criminal's economic case will be held. As of now, the lawsuit has been filed, and the handling bureau is divided into Nanyun Pharmaceutical Co., Ltd. of Nanjiang Industry Development Technology and Pharmaceutical Co., Ltd., Fuxi Guangzhou Pharmaceutical Co., Ltd. of Renhua, Andu Xiguang Pharmaceutical Construction Co., Ltd., Heyinwang Haixi Guangzhou Pharmaceutical Co., Ltd. and Pharmaceutical Medical Investment Guangzhou Co., Ltd.

. The revenue has not yet been recognized, and based on the principle of prudence, similar risks exist and can be managed. Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

2. Bad debt provisions are made for other receivables on a group basis.

A. In the portfolio, the aging analysis method is used to accrue bad debt provisions (aging portfolio)

Year-end balance

Aging

Book balance Bad debt provision Proportion of provision (%) Within 1 year 24,171,766.91 6,333,995.98 26.20 1-2 years 19,479,521.90 6,922,171.52 35.54 2-3 years 45,105,181.98 25,883,582.02 57.38 3-4 years 15,155,423.46 12,047,583.81 79.49 4-5 years 2,797,082.41 2,496,403.94 89.25 More than 5 years 39,773,120.32 39,773,120.32 100.00 Total 146,482,096.98 93,456,857.59 —

B. In the portfolio, other methods are used to accrue bad debt provisions (asset disposal portfolio)

Year-end balance

Aging

Book balance Bad debt provision Provision ratio (%) Within 1 year

1-2 years

2-3 years

3-4 years

4-5 years 373,888,219.79 17,957,299.70 4.80 Total 373,888,219.79 17,957,299.70 —

3. Other receivables are provided with bad debt provisions in accordance with the general expected credit loss model.

The first stage The second stage The third stage

Provision for bad debts Expected for the entire duration Expected for the entire duration Total next 12 months

Credit loss (has not occurred Credit loss (has occurred

expected credit losses

credit impairment) credit impairment)

Balance on January 1, 2025 12,814,349.94 104,372,666.04 132,105,818.56 249,292,834.54 Balance on January 1, 2025

— — — —This year

--Transfer to the second stage -192,000.00 192,000.00

--Transfer to the third stage

--Return to the second stage

--Return to the first stage

Provisions for the year 5,148,811.76 28,369,810.38 39,154,607.86 72,673,230.00 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

The first stage The second stage The third stage

Provision for bad debts Expected for the entire duration Expected for the entire duration Total

next 12 months

Credit loss (has not occurred Credit loss (has occurred

expected credit losses

credit impairment) credit impairment)

Transferred back this year 2,280,489.02 4,106,678.13 484,901.22 6,872,068.37 Write-off this year

Write-off this year 101,861.85 101,861.85 Other changes -120.58 -120.58 December 31, 2025

15,490,552.10 128,725,936.44 170,775,525.20 314,992,013.74 Balance

(4) Bad debt provisions for other receivables accrued, recovered or reversed this year

Amount of changes during the year

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Single provision 164,305,157.27 39,374,561.03 101,861.85 203,577,856.45 Combined provision 84,987,677.27 33,298,668.97 6,872,068.37 -120.58 111,414,157.29 Total 249,292,834.54 72,673,230.00 6,872,068.37 101,861.85 -120.58 314,992,013.74

(5) Other receivables actually written off this year

Item Write-off Amount

Actual write-off of odd amounts 101,861.85

(6) Other receivables with the top five year-end balances collected by debtors

Account for other receivables

Balance at the end of the year. Name of the bad debt provision unit. Nature of the payment. Balance at the end of the year. Aging of the account.

Total year-end balance

Proportion (%)

Zhaoqing high-tech industry opens

Land collection and savings 373,888,219.79 4-5 years 40.44 17,957,299.70 Development Area Land Reserve Center

Nanning Green Port Construction Investment Group

House rental payment 54,467,209.59 1-4 years 5.89 31,964,432.39 Tuan Co., Ltd.

Tibet Laimei Pharmaceutical Investment Co., Ltd.

Investment 36,891,901.06 4-5 years 3.99 36,891,901.06 Co., Ltd.

Heilongjiang Dinghengsheng Pharmaceutical Co., Ltd.

Other current accounts 34,019,957.30 More than 5 years 3.68 34,019,957.30 Co., Ltd.

Guangxi Qucaotang Pharmaceutical Logistics

Other current accounts 24,077,109.37 Within 1 year 2.60 7,223,132.81 Co., Ltd.

Total — 523,344,397.11 — 56.60 128,056,723.26

Note: The house rental payments, investment payments, and other current accounts listed in the table above correspond to the other receivables in the aforementioned "Classification of other receivables by nature of the payments".

8. Inventory

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(1) Inventory classification

Year-end balance

Project

Book balance Provision for inventory decline Book value

Raw materials 223,687,350.00 10,625,984.67 213,061,365.33 Inventory goods 179,466,343.68 34,204,208.76 145,262,134.92 Developed products 140,470,055.95 22,789,349.74 117,680,706.21 Development costs 77,496,289.22 77,496,289.22 Goods shipped 14,119,572.99 102,956.95 14,016,616.04 Turnover materials 40,222,229.88 5,982,333.84 34,239,896.04 Products in progress 17,597,421.77 129,450.48 17,467,971.29 Consumable biological assets 25,099,566.10 5,405,520.00 19,694,046.10 Materials in transit 8,265.50 8,265.50 Entrusted processing materials 987,280.92 987,280.92 Contract performance costs

Total 719,154,376.01 79,239,804.44 639,914,571.57

(continued table)

Beginning balance

Project

Book balance Provision for inventory decline Book value

Raw materials 265,716,398.09 8,678,208.32 257,038,189.77 Inventory goods 212,698,006.70 23,150,725.68 189,547,281.02 Developed products 166,251,437.37 18,634,559.20 147,616,878.17 Development costs 74,379,700.83 74,379,700.83 Goods shipped 46,569,140.53 37,194.12 46,531,946.41 Turnover materials 39,901,409.16 4,438,489.19 35,462,919.97 Products in progress 23,818,794.94 897,700.70 22,921,094.24 Consumable biological assets 22,426,677.78 1,063,500.00 21,363,177.78 Materials in transit 128,545.08 128,545.08 Entrusted processing materials 7,980.14 7,980.14

Contract performance costs 106,856.69 106,856.69 Total 852,004,947.31 56,908,357.35 795,096,589.96

(2) Provision for inventory depreciation and provision for impairment of contract performance costs

Note: Financial Statements Co., Ltd. Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Reduce annual capital

Add annual version

The last year of Eyu

The first year of Eyu

Project

Others

sale

Others

rollover or withdrawal

76.489,526,01

00.945,135

53.523,974,2

23.802,876,8

raw materials

67.802,402,43

14.623,904

81.530,608,6

22.052,867

54.495,005,71

86.527,051,32

Product inventory

47.943,987,22

45.097,451,4

02.955,436,81

product development

48.333,289,5

32.268,521

05.413,04

83.120,017,1

91.984,834,4

Material turnover

00.025,504,5

00.020,243,4

00.005,360,1

natural consumption of assets

84.054,921

22.052,867-

07.007,798

Products in

59.659,201

10.931,64

48.109,111

21.491,73

The merchandiser departs

41.089,7

41.089,7

Material Processing Commission

44.408,932,97

87.861,345

96.730,424,7

65.356,892,03

53.753,809,65

Total

Clearly explain the provision value minus the cost of the performance contract and the provision price reduction inventory: among them

The write-off or reversal period of the reason can be determined based on the net cash change of the specific value.

The inventory of various types of goods can be written off and reported as losses or used, whichever is lower, and the net cash value can be compared with the cost of the goods.

The lower value of the original write-off of materials and reported losses or the expired cost of sales can be compared with the cost of inventory.

The product inventory can be written off or reversed, whichever is lower, and the net cash value can be compared with the cost inventory.

Product development expenses are reported as lost or used, whichever is lower, and the net cash value can be compared with the cost of inventory.

The lower value of the material turnover write-off or the rollover of indefinite cost can be compared with the cost of inventory.

The net cash value of the lower value of the past cost due to the natural consumption of the asset can be compared with the cost of inventory.

The products are listed in the attached financial statements of the Financial Group Co., Ltd. Hengzhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Write-off or reversal of due date

It can be determined based on the net cash change of the specific value.

Category inventory

Write-off loss reported or sales due

Lower value of net cash available and cost inventory

The merchandiser departs

Write-off loss reported or sales due

Lower value of net cash available and cost inventory

Material Processing Commission

Assets and assets flow to others

.9

The first year of Eyu

The last year of Eyu

Project

00.525,305,62

18.896,851,02

Tax deductions and certificates

32.159,895,1

76.009,821,21

Preliminary payment of fees, taxes, other taxes and income

44.317,567

28.266,273

Others

76.981,868,82

03.262,066,23

Total

Investment options have long term

.01

Changes, decreases and increases in yearly basis

Reserve value minus

Others

Reserve value minus

The last year of Eyu

Provision

make an announcement

The first year of Eyu

unit investment

The last year of Eyu

other interests

Comprehensive

Confirm legal rights

Reduce less

add chase

The first year of Eyu

Others

value minus

Or dividend cash

Changes in profit, loss, investment, investment, investment reserve, profit adjustment

Enterprise-enterprise joint venture, first-investment industry health and health Heng Zhonghong Shen Xiguang 89.646,157,49

91.852,118,1- 71.509,265,69) Partnership Co., Ltd. (Enterprise Partnership to Create Healthy Medicine Hengzhong Haiguo City Shenzhen 92.331,502,95

88.992,297- 71.334,799,95 Co., Ltd. (enterprise partnership, joint venture investment) Co., Ltd. Technology Information Wangji Xiwu 92.152,892 56.237,792- 00.000,000,1 63.184,999 Technology Shengji Meilaixi Wumingyuan (

) Company Limited Notes Schedule Financial Statements Finance Co., Ltd. Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Changes, decreases and increases in yearly basis

Reserve value minus

Others

Reserve value minus

The last year of Eyu

Provision

make an announcement

The first year of Eyu

unit investment

The last year of Eyu

other interests

Comprehensive

Confirm legal rights

Reduce less

add chase

The first year of Eyu

Others

value minus

Or dividend cash

change

income

profit and loss investment

investment

investment

Prepare

profit

adjust

72.087,659,351

92.152,892

27.092,109,2-

00.000,000,1

07.918,955,751

Ji Xiao

Enterprise enterprise alliance, two

The industrial type of the industrial park in the development zone is facing the city of Zhouwu

00.000,000,4

00.000,000,4

00.000,000,4

00.000,000,4

Ltd.

Equity Equity Enterprise Credit District Port Tax Baoshan Meiboning

79.567,296,02

79.567,296,02

79.567,296,02

79.567,296,02

) partnership limited (enterprise partnership investment)

Investment, Industry, Pharmaceuticals, Medical, Meilai, Yitian, Shenzhen

98.637,286,1

50.133,1-

49.760,486,1

) partnership limited (enterprise partnership

96.776,196,8

03.996,703,1

65.087,049-

59.857,423,8

Technology Medical Oumai Nanhu Co., Ltd.

Jin Fund Investment Equity Shares Yaoxing Youhui Ningnan

43.656,026,91

67.412,841,1-

01.178,867,02

) partnership limited (enterprise partnership

Limited technical science and technology student Yaleg Asiguang

28.033,197,8

73.293,901,11-

91.327,009,91

company

There are (enterprises and enterprises jointly invest in Suili Xiguang)

44.811,056,041-

84.833

69.977,946,041

) partnership limit

Fund investment, equity financing, private star, Linbi Qingchong

45.132,594,24

63.485,084

81.746,410,24

) Partnership Limited (Enterprise Partnership)

China Consulting Information Pharmaceutical Co., Ltd. Xin Pulai Chuansi 48.058,292

17.372,31-

55.421,603) Limited partnership (heart 02.151,489,61 76.505,271

33.100,595,1

02.446,612,51 Co., Ltd. Xiubisi Pharmaceutical Co., Ltd. Aozangxi Co., Ltd. Medical Science and Technology Medical Said Kangchuansi 04.135,447,521

95.002,217,42 92.249,629,9-

01.372,959,011 Company Limited Liability Company) Ningnan (Yuyi Xingfu 92.910,363,6

17.089,638,3- 00.000,002,01

The company's joint venture investment and business start-up life in Hongdu was 60.862,703,39 00.398,555,31 32.493,911,1 38.667,171,11 00.000,824,52 00.000,000,021

) Partnership Co., Ltd. (Enterprise Enterprise Notes Schedule Financial Report Co., Ltd. Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Changes, decreases and increases in yearly basis

Reserve value minus

Others

Reserve value minus

The last year of Eyu

Provision

make an announcement

The first year of Eyu

unit investment

The last year of Eyu

other interests

Comprehensive

Confirm legal rights

Reduce less

add chase

The first year of Eyu

Others

value minus

Or dividend cash

change

income

profit and loss investment

investment

investment

Prepare

profit

adjust

Partnership Investment Industry Association Nadong Dongguang

59.966,225,93

50.033,774-

00.000,000,04

) partnership limited (enterprise enterprise)

79.567,296,42

99.988,881,883

76.505,271

00.398,555,31

23.428,015,311-

05.455,602,41-

00.000,824,52

00.000,002,071

79.567,296,42

41.656,715,483

Ji Xiao

79.567,296,42

62.076,541,245

69.657,074

00.398,555,31

23.428,015,311-

22.548,701,71-

00.000,824,62

00.000,002,071

79.567,296,42

48.574,770,245

Total

investment vehicle equity rights

.11

Situation investment instrument equity rights (others) 1 (

Changes, decreases and increases in yearly basis

Valuation is determined by fair value

The last year's book

The last year's book

Confirmation year book

Other changes included in the calculation change the amount

Integrate other inputs

Integrate other inputs

The last year of Eyu

Count others

The first year of Eyu

Project

Income stock

its

Including others

Reduce less

add chase

Comprehensive income of causes

lost gain

Profitable benefits

Earnings Comprehensive

him

profitable gain

investment

investment

lost

Sexual intercourse lasts for a long time

69.956,471,102 44.111,013,01 65.892,038,040,1

67.351,918,9-

23.254,946,050,1

Equity transactions in securities and state-owned assets investment instruments have long holding periods.

citizencamrahP demarO 91.006,738,61-

18.998,949,31

62.857,538,1

55.141,411,21 Usual rights of investment instruments

.cnI sla —

77.950,733,481 44.111,013,01 73.891,087,450,1

05.593,389,7-

78.395,367,260,1

Total. The fair price per share is 42.4 yuan, and the company's shares held by Haiguo Securities Co., Ltd. are 00.448,874,542 shares. As of: 1 Note: 5202 on March 21, 00.873,696 new shares were issued.cnI slacituecamrahP DemarO Company was listed on Kedasna Gome in November 2011 and purchased from the pharmaceutical company Zhouwu Company Holding Co., Ltd.: 2 Notes. The final daily trading price of Dasna Gome's stock was confirmed to be fair and fair at US$58.2/USD, with a total issued share capital of 735.6%.

. None: The end of the year when the situation is confirmed) 2 (Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

12. Other non-current financial assets

Item Ending balance Beginning balance

Debt investment 518,116,245.33

GF Xinde Zhonghenghuijin (Longyan) Equity Investment Partnership

79,337,882.87 124,116,939.25 Enterprise (limited partnership)

Luzhou Jiuze Equity Investment Center (Limited Partnership) 27,593,454.57 45,950,621.57 Wuhan Youzhiyou Biopharmaceutical Co., Ltd. 26,807,873.27 28,375,621.86 Jiangxi Aoxing Technology Co., Ltd. 20,000,000.00 20,000,000.00 Yunnan Hanqiang Biotechnology Co., Ltd. 2,441,882.73 Wuzhou Urban Rural Credit Cooperative Union 6,000,000.00 6,000,000.00 Hangzhou Fangxia Biotechnology Co., Ltd. 5,000,000.00 Guangxi Guangtou Intelligent Service Group Co., Ltd. 1,000,000.00 1,000,000.00 Integra holdings ltd. 21,086,400.00 21,565,200.00 Overseas project one 9,978,084.48 12,300,430.66 Overseas project two 33,198,500.00 33,198,500.00 Overseas project three 39,838,100.00 39,838,100.00 Overseas Project IV 9,688,347.50 19,376,695.00 Total 792,644,888.02 359,163,991.07

13. Investment real estate

(1) Investment real estate using cost measurement model

Item Houses and buildings Land use rights Total

1. Original book value

1. Balance at the beginning of the year 420,720,768.18 1,617,132.18 422,337,900.36 2. Increase this year 3,630,602.33 418,946.16 4,049,548.49 (1) Fixed assets\intangible assets\

3,630,602.33 418,946.16 4,049,548.49 Projects under construction transferred in

3. Amount reduced this year

4. Year-end balance 424,351,370.51 2,036,078.34 426,387,448.85

2. Accumulated depreciation and accumulated amortization

1. Balance at the beginning of the year 105,274,383.15 590,728.88 105,865,112.03 2. Increase this year 14,747,132.99 147,801.15 14,894,934.14 (1) Provision or amortization 12,645,936.32 110,808.90 12,756,745.22 (2) Fixed assets\intangible assets\

2,101,196.67 36,992.25 2,138,188.92 Transfer of projects under construction

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Houses and buildings Land use rights Total 3. Reduction amount this year

4. Year-end balance 120,021,516.14 738,530.03 120,760,046.17

3. Impairment provision

1. Balance at the beginning of the year 1,271,569.99 1,271,569.99 2. Increase amount during the year

2. Amount reduced this year

3. Year-end balance 1,271,569.99 1,271,569.99

4. Book value

1. Book value at the end of the year 303,058,284.38 1,297,548.31 304,355,832.69 2. Book value at the beginning of the year 314,174,815.04 1,026,403.30 315,201,218.34

(2) Investment real estate without a completed title certificate

Item Book value Reasons for not completing the property rights certificate

Powder injection workshop 112,388,660.72 Incomplete certification information

Ground to seventh floor, No. 47-2, Level 1, Bubu Road, Shibu

417,039.74 Income from debt repayment does not meet the conditions for certification

(796.70 square meters)

Stratum No. 4, Sifang Road (273.74 square meters) 330,673.26 Income from debt repayment, does not meet the certification requirements

The entrance of the tannery, No. 65, Xinxing 2nd Road

77,483.64 was left over from a state-owned enterprise many years ago and does not meet the conditions for certification (95.2 square meters)

No. 65, Xinxing 2nd Road, Back Block Tannery Peak

2,761.17 Dormitory (50 square meters) left over from a state-owned enterprise many years ago and does not meet the certification requirements

Since the seller of the house, Chongqing Science and Technology Finance Group Chongqing Science and Technology Research Institute Building B 74,003.16 Co., Ltd., 15th Floor, has not completed the transfer procedures, the relevant

The certificate of property rights has not yet been processed

Total 113,290,621.69

14. Fixed assets

Item Ending balance Beginning balance

Fixed assets 1,343,522,897.00 1,465,387,439.69 Liquidation of fixed assets 3,387.25 45,797.30 Total 1,343,526,284.25 1,465,433,236.99

14.1 Fixed assets

(1) Fixed assets

Items Houses and buildings Machinery and equipment Transportation Others Total

1. Original book value

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Items Houses and buildings Machinery and equipment Transportation Others Total 1. Balance at the beginning of the year 1,750,828,875.89 1,276,626,155.75 32,500,369.81 140,662,729.11 3,200,618,130.56 2. Increase this year 6,089,769.21 37,812,564.24 87,680.94 5,344,764.75 49,334,779.14 (1) Purchase 16,604,707.68 87,680.94 5,344,764.75 22,037,153.37 (2) Transfer of construction in progress 3,035,935.25 9,142,312.31 12,178,247.56 (3) Others 3,053,833.96 12,065,544.25 15,119,378.21 3. Decrease amount this year 22,427,997.16 7,672,328.98 1,627,842.83 283,319.55 32,011,488.52 (1) Disposal or scrapping 6,885,414.11 1,627,842.83 283,319.55 8,796,576.49 (2) transferred to investment

3,313,260.43 3,313,260.43Real estate

(3) Decrease from business combination 786,914.87 786,914.87 (4) Others 19,114,736.73 19,114,736.73 4. Ending balance 1,734,490,647.94 1,306,766,391.01 30,960,207.92 145,724,174.31 3,217,941,421.18

2. Accumulated depreciation

1. Balance at the beginning of the year 545,174,641.45 930,490,038.78 26,933,810.30 108,071,305.95 1,610,669,796.48 2. Increase during the year 57,585,955.47 44,330,094.27 1,046,346.73 6,112,173.14 109,074,569.61 (1) Provision 57,585,955.47 41,526,599.89 1,046,346.73 6,112,173.14 106,271,075.23 (2) Others 2,803,494.38 2,803,494.38 3. Decrease amount this year 4,092,772.23 6,670,522.23 1,121,114.12 283,263.60 12,167,672.18 (1) Disposal or scrapping 6,332,452.99 1,121,114.12 283,263.60 7,736,830.71 (2) Transfer to investment property

2,101,196.67 2,101,196.67Real estate

(3) Decrease from business combination 218,402.12 218,402.12 (4) Others 1,991,575.56 119,667.12 2,111,242.68 4. Year-end balance 598,667,824.69 968,149,610.82 26,859,042.91 113,900,215.49 1,707,576,693.91

3. Impairment provision

1. Balance at the beginning of the year 3,872,660.99 120,666,911.84 16,664.07 4,657.49 124,560,894.39 2. Increase during the year 22,657,532.40 18,835,577.43 485,719.56 616,802.90 42,595,632.29 (1) Provision 22,657,532.40 18,835,577.43 485,719.56 616,802.90 42,595,632.29 3. Decrease amount this year 314,696.41 314,696.41 (1) Disposal or scrapping 314,696.41 314,696.41 4. Ending balance 26,530,193.39 139,187,792.86 502,383.63 621,460.39 166,841,830.27

4. Book value

1. Book value at the end of the year 1,109,292,629.86 199,428,987.33 3,598,781.38 31,202,498.43 1,343,522,897.00 2. Book value at the beginning of the year 1,201,781,573.45 225,469,205.13 5,549,895.44 32,586,765.67 1,465,387,439.69 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(2) Temporarily idle fixed assets

There were no important fixed assets temporarily idle at the end of the reporting period.

(3) Fixed assets leased through operating leases: None.

(4) Fixed assets for which title certificates have not been obtained

Item Book value Reasons for not completing the property rights certificate

In process, lightning protection certificate and modern traditional Chinese medicine dosage form comprehensive workshop (Building 13#) have been obtained so far 98,576,227.99

At present, the powder injection workshop has obtained the fire protection certificate. Modern Western medicine dosage form comprehensive workshop (14# building) 33,035,863.43 In process, it has obtained the lightning protection certificate. The drug purification workshop (19# building) 31,496,870.40 In the process, it has obtained the fire protection certificate and lightning protection certificate. Chinese herbal medicine planting demonstration base-1# comprehensive building 16,582,135.60 The land ownership transfer procedures are still in process. Traditional Chinese Medicine Planting Demonstration Base-2# Comprehensive Building 5,844,961.50 The land ownership transfer procedures are still in process. Laundry/clinic room complex building 2,791,653.09 In process.

Since the transfer procedures of Chongqing Science and Technology Finance Group Chongqing Institute of Science and Technology Office Building 1,803,795.46 Group Co., Ltd., the seller of the house, have not been completed, the transfer

The relevant property rights certificate has not yet been processed

Sewage treatment comprehensive operation room 1,600,013.99 In process

As supporting facilities for developers, Hengxiang Club cannot be used alone 684,466.12

Apply for real estate certificate

Total 192,415,987.58

(5) Impairment testing of fixed assets

When the company conducted an impairment test on Laimei Pharmaceutical's long-term asset group excluding goodwill, some fixed assets were tested for impairment. The company confirmed the recoverable amount of this part of fixed assets at fair price minus disposal costs. Some of the properties and equipment of the subsidiary Zhongheng Medical Technology were idle and showed signs of impairment. Zhongheng Medical Technology conducted an impairment test and confirmed the recoverable amount of this part of the properties and equipment at fair price minus disposal costs.

14.2 Fixed assets liquidation

A small amount of equipment is still in the process of disposal, with a net book value of 3,387.25 yuan.

15. Construction in progress

Items Balance at the end of the year Balance at the beginning of the year Construction in progress 23,076,175.27 53,380,862.89 Engineering materials

Total 23,076,175.27 53,380,862.89

15.1 Projects under construction

(1) Projects under construction

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value Xueshuantong Industrialization for Injection

45,004,947.47 31,431,797.37 13,573,150.10 46,204,202.80 9,764,069.06 36,440,133.74 Project (Nanning Investment)

Nanning food project 7,185,561.16 7,185,561.16 7,185,561.16 7,185,561.16

New Drug Research and Development Center and

Pilot base construction project 3,016,029.18 2,885,055.72 130,973.46 3,121,338.92 2,885,055.72 236,283.20 (Nanning Investment)

Production field on the east side of the first floor of Building 9#

480,620.77 480,620.77 Land reconstruction project

Solid preparation workshop (Phase II)

225,515.11 225,515.11Construction projects

Color steel in the e-commerce area of Building 13

187,484.41 187,484.41 Board technical transformation project

UFIDA ERP upgrade and transformation project

181,675.24 181,675.24 items

Alcohol tank area upgrade and renovation

126,226.42 126,226.42 Intelligent improvement project

Other sporadic construction projects 9,372,051.71 9,372,051.71 15,502,924.00 15,502,924.00Total 64,578,589.52 41,502,414.25 23,076,175.27 73,215,548.83 19,834,685.94 53,380,862.89

(2) Changes in important projects under construction this year

None.

(3) Provision for impairment of projects under construction this year

this year

Category Balance at the beginning of the year Increase during the year Balance at the end of the year Reason for provision

reduce

Industrialization of Xueshuantong for injection included in An

9,764,069.06 21,667,728.31 31,431,797.37

Project (Nanning Investment) Nanning Food Project with idle equipment 7,185,561.16 7,185,561.16 Planning changes to the new drug research and development center and

Pilot base construction project 2,885,055.72 2,885,055.72 Planning changes (Nanning Investment)

Total 19,834,685.94 21,667,728.31 41,502,414.25 —

(4) Impairment testing of projects under construction

Xueshuantong Industrialization Project for Injection (Nanning Investment). This project is mainly unopened and uninstalled equipment. There are signs of impairment due to long-term idleness. The company conducted an impairment test and estimated its recoverable amount based on fair price minus disposal costs.

16. Productive biological assets

(1) Productive biological assets using cost measurement model

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

plantation industry

Item Total

Immature biological assets Mature biological assets

1. Original book value

1. Balance at the beginning of the year 922,699.78 922,699.78 2. Increase this year 30,570.11 30,570.11 (1) Self-cultivation 30,570.11 30,570.11 3. Decrease this year

2. Year-end balance 953,269.89 953,269.89

2. Accumulated depreciation

1.Balance at the beginning of the year

2. Amount increased this year

3. Amount reduced this year

4. Year-end balance

3. Impairment provision

1. Balance at the beginning of the year 135,600.00 135,600.00 2. Increase this year 573,300.00 573,300.00 (1) Provision 573,300.00 573,300.00 3. Decrease this year

2. Year-end balance 708,900.00 708,900.00

4. Book value

1. Book value at the end of the year 244,369.89 244,369.89 2. Book value at the beginning of the year 787,099.78 787,099.78

(2) Impairment testing of productive biological assets using the cost measurement model

Items of fair value and disposal key parameters Carrying amount Recoverable amount Impairment amount Key parameters

How to determine the cost Determination basis Menghai big leaf species 684,877.38 136,777.38 548,100.00

Field survey survival rate*input cost survival rate

Rate and growth status of anise 132,792.51 107,592.51 25,200.00

Total 817,669.89 244,369.89 573,300.00 — — —

17. Right-of-use assets

Items Houses and Buildings Transportation Equipment Land Total

1. Original book value

1. Balance at the beginning of the year 22,190,847.04 684,702.02 6,635,093.56 29,510,642.62 2. Increase during the year 4,464,216.64 4,464,216.64 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Items Houses and Buildings Transportation Equipment Land Total

(1) Increase in rentals 4,464,216.64 4,464,216.64 3. Decrease amount this year 3,391,973.75 833,013.65 4,224,987.40 (1) Lease expiration 679,518.09 679,518.09 (2) Disposal 2,712,455.66 833,013.65 3,545,469.31 4. Ending balance 23,263,089.93 684,702.02 5,802,079.91 29,749,871.86

2. Accumulated depreciation

1. Balance at the beginning of the year 11,125,982.60 406,033.78 1,328,109.31 12,860,125.69 2. Increase this year 7,244,768.34 212,511.36 336,788.88 7,794,068.58 (1) Provision 7,244,768.34 212,511.36 336,788.88 7,794,068.58 3. Reduction amount this year 3,144,998.71 219,147.67 3,364,146.38 (1) Lease expiry 679,518.09 679,518.09 (2) Disposal 2,465,480.62 219,147.67 2,684,628.29 4. Ending balance 15,225,752.23 618,545.14 1,445,750.52 17,290,047.89

3. Impairment provision

1.Balance at the beginning of the year

2. Amount increased this year

3. Amount reduced this year

4. Year-end balance

4. Book value

1. Book value at the end of the year 8,037,337.70 66,156.88 4,356,329.39 12,459,823.97 2. Book value at the beginning of the year 11,064,864.44 278,668.24 5,306,984.25 16,650,516.93 Note attached financial statements Group Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Assets are invisible

.81

Detailed assets and assets

)1(

Total

Quan Xu Te

Trademark

software

technology patents

rights

right to use land

Project

Value of original book value, one

89.869,540,667

10.443,966,25

32.647,400,65

90.270,893,62

78.519,649,371

46.479,150,831

41.619,479,813

The balance of the first year of the year.1

77.282,038,92

00.229

78.882,3

51.408,455,3

57.762,172,62

The amount will be increased by .2 per year.

12.503,495,4

00.229

78.882,3

48.900,103

05.480,982,4

Purchase) 1(

52.381,289,12

52.381,289,12

Within the R&D department) 2 (

13.497,352,3

13.497,352,3

Others) 3(

61.649,814

61.649,814

The amount is reduced and the annual principal is reduced by .3

61.649,814

61.649,814

Real estate investment transfer) 1 (

95.503,754,597

10.662,076,25

01.530,800,65

42.678,259,92

26.381,812,002

46.479,150,831

89.969,555,813

Extra balance at the end of the year.4

Accumulated sales and amortization, 2

62.614,666,902

60.555,080,9

09.637,595,53

98.560,573,41

11.478,160,26

90.129,392,1

12.362,952,78

The balance of the first year of the year.1

44.050,505,82

67.066,492,5

83.399,652,3

09.800,292,2

16.961,621,11

36.144,714

61.677,711,6

The amount will be increased by .2 per year.

89.939,591,82 67.066,492,5 83.399,652,3 44.898,289,1 16.961,621,11 36.144,714 61.677,711,6

Provision) 1 (64.011,903

64.011,903

Others) 2 (52.299,63

52.299,63

The amount is reduced by .3 52.299,63

52.299,63

Transfer of real estate capital investment in the production area) 1 (54.474,431,832 28.512,573,41 82.037,258,83 97.470,766,61 27.340,881,37 27.263,117,1 21.740,043,39

Balance at the end of the year 41.327,478,731 74.204,407,2 16.946,1 82.796,394 14.356,593,83 65.343,786,78 18.679,195,8

Balance for the first year of 2020. 1 Note attached statement Financial Co., Ltd. Group Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Total

Quan Xu Te

Trademark

software

technology patents

rights

right to use land

Project

10.727,260,27

80.944,003,51

80.529,430,1

30.649,665,14

28.604,061,41

The amount will be increased by .2 per year.

10.727,260,27

80.944,003,51

80.529,430,1

30.649,665,14

28.604,061,41

Provision) 1(

The amount is reduced and the annual principal is reduced by .3

51.054,739,902

55.158,400,81

16.946,1

63.226,825,1

44.995,269,97

83.057,748,101

18.679,195,8

Extra balance at the end of the year.4

Value book, four

99.083,583,743

46.891,092,02

12.556,351,71

90.971,757,11

64.045,760,74

45.168,294,43

50.649,326,612

Value book end year.1

85.928,405,814

84.683,488,04

27.953,704,02

29.803,925,11

53.883,984,37

99.907,070,94

21.676,321,322

Value book initial year.2

. None: The documentary evidence of the right to use the land has not been completed.

)2(

The assets and assets whose test value is reduced under the circumstances are intangible

)3(

Due to the changing policies and environmental market environment, there is no indication that the value of the existing assets of the segment should be reduced due to the patents not being patented. On this basis, the revenue can be recognized based on calculations and calculations related to the disposal of expenses. The market value of the company's trademarks and software is fairly recognized in accordance with the market law.

. The provision value minus the provision value of the segment is recorded in the low amount of cash back.

Expenditure developed

.91

Reduce annual capital

Add annual version

The last year of Eyu

The first year of Eyu

Project reserve value less asset provision, loss and loss period, when converted into assets, no recognition of expenditures, entrusted expenditures, expenditures within the development department 19.797,421,15 82.157,670,2

19.450,498,2 52.381,289,12 55.092,599,33 16.765,936,8 91.929,244,53 Expenses for developing prescribed drugs 29.700,026,2

29.700,026,2

Construction system information 38.508,447,35 82.157,670,2

19.450,498,2 52.381,289,12 74.892,516,63 16.765,936,8 91.929,244,53

Total Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

20. Goodwill

(1) Original value of goodwill

Increase this year Decrease this year

Name of invested unit Balance at the beginning of the year Balance at the end of the year

Other disposals resulting from business combinations Other

Laimei Pharmaceutical Headquarters Asset Group Portfolio 486,413,269.72 486,413,269.72 Hunan Kangyuan Asset Group 126,247,278.80 126,247,278.80 Laimei Pharmaceutical Asset Group 32,942,793.07 32,942,793.07 Laimei Pharmaceutical Asset Group 31,280,611.16 31,280,611.16Jinxing Pharmaceutical Asset Group 18,360,999.29 18,360,999.29 Guangtou Pharmaceutical Asset Group 12,434,143.94 12,434,143.94 Medico Asset Group 12,002,529.83 12,002,529.83 Tianqijiahua Asset Group 664,114.09 664,114.09 Total 720,345,739.90 720,345,739.90 (2) Goodwill impairment provision

Increase this year Decrease this year

Name of invested unit Balance at the beginning of the year Balance at the end of the year

Provision Other Disposal Other

Laimei Pharmaceutical Headquarters Asset Group Portfolio 416,580,774.08 69,832,495.64 486,413,269.72 Hunan Kangyuan Asset Group 126,247,278.80 126,247,278.80 Laimei Pharmaceutical Asset Group 31,280,611.16 31,280,611.16 Jinxing Pharmaceutical Asset Group 18,360,999.29 18,360,999.29 Guangtou Pharmaceutical Asset Group 12,434,143.94 12,434,143.94 Tianqijiahua Asset Group 664,114.09 664,114.09Total 605,567,921.36 69,832,495.64 675,400,417.00 (3) Relevant information on the asset group or asset group combination where the goodwill is located

Whether the affiliated business is consistent with the name. The composition and basis of the asset group or portfolio to which it belongs. The operating segment is consistent with the basis for the previous year's guarantee. It is jointly owned by Laimei Pharmaceutical, Laimei Longyu, Laimeiji, Sichuan Yingrui and Lantian.

Share the business composition of several entities. The business between these entities has a certain

The asset group portfolio of Laimei Pharmaceutical's headquarters is not applicable. It is a certain synergy, and the cash inflow generated is independent of the consolidation scope of Laimei Pharmaceutical.

Other asset groups within the portfolio.

The business structure of Laimei Pharmaceutical's acquisition of Laimei Pharmaceutical. Laimedji is mainly engaged in

Pharmaceutical circulation is an asset-light company, and its related assets, businesses,

Laimei Pharmaceutical Asset Group Not applicable The cash inflow generated by business premises and personnel is independent of the scope of the Laimei Pharmaceutical merger.

other companies and asset groups within the scope.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Whether the affiliated business is consistent with the composition and basis of the asset group or portfolio to which the name belongs. The operating segment's basis for maintaining balance in the previous year

The business formed by Laimei Pharmaceutical's merger with Medico. Medico is mainly engaged in medical

Medico Asset Group is an equipment circulation company and is an asset-light company. Its business and cash flow generated are not applicable.

into other companies and asset groups that are independent of Laimei Pharmaceutical's merger scope.

(4) Specific determination method of recoverable amount

Book value of goodwill asset group Recoverable amount Impairment amount Impairment amount attributable to the parent Items in the forecast period

Value (RMB 10,000) (RMB 10,000) (RMB 10,000) (RMB 10,000) Years Laimei Pharmaceutical Headquarters Asset Group 63,200.99 34,789.23 28,411.76 6,983.25 Note 1 Laimeiji Asset Group 3,294.28 3,800.65 5-year Medico Asset Group 1,200.25 9,949.67 Five-year total 67,695.52 48,539.55 28,411.76 6,983.25 —

(continued)

stable period

Forecast period Stable period

Item Basis for determining key parameters of the forecast period Key parameters of key parameters Key parameters

Determination based on revenue growth rate: Revenue and profit: The company has signed a contract with Laimei Pharmaceutical

revenue growth

-48.44% to 64.77% revenue growth in contracts, agreements, development plans, and stable operating periods over the years

Rate: 0%

(Note 2) Due to factors such as market trends, products to be launched, and market competition, the growth rate is 0%, and the expected profit rate of Laimei Pharmaceutical is:

Profit rate: Comprehensive analysis; Discount rate: Based on income and discount. Headquarters asset group in the last year of the measurement period 1.53%

-27.55% to 16.29% based on the principle of rate matching, using the WACC model to determine the discount profit rate, discount

Discount rate:

(Note 2) The present rate is then converted into a pre-tax discount rate to determine the present rate.

10.16%

Discount rate: 10.16% Discount rate for this evaluation.

Revenue and profit: The company has signed a

revenue growth

Revenue growth rate: Contracts, agreements, development plans, and revenue growth during the stable period of operations over the years

Rate: 0%

7.70% to 14.59%, depending on factors such as market trends, products to be launched, market competition, etc. The growth rate is 0%, and the expected profit rate is:

Profit rate: Comprehensive analysis; Discount rate: Based on the income and discount asset group in the last year of the measurement period 5.33%

5.33% to 6.17% based on the principle of rate matching, using the WACC model to determine the discount profit rate, discount

Discount rate:

Discount rate: 10.16% present rate, and then convert it into a pre-tax discount rate to determine the present rate

10.16%

The discount rate for this assessment.

Income and profit: The company is based on the contract signed by Medico

Income growth stable period Income growth rate: contracts, agreements, development plans, operating trends over the years

Profit rate: 0% Growth rate is 0%, forecast 16.63% to 129.30% Factors such as potential, products to be launched, market competition, etc.

Medico Profit Rate: Profit rate in the last year of the measurement period: Comprehensive analysis; Discount rate: Based on the amount of income and discount

Asset Group 5.30%

2.41% to 5.30% rate matching principle, using the WACC model to determine the discount

Discount rate: profit rate, discount discount rate: 10.16% discount rate, and then convert it into a pre-tax discount rate to determine

10.16% rate

The discount rate for this assessment.

Note 1: The business forecast period of the asset group of Laimei Pharmaceutical is 5 years. During the forecast, the value of a new drug in the second clinical phase was separately assessed. Based on the characteristics of new drugs on the market, the forecast period for this product is longer than 5 years;

Note 2: During the forecast period, the asset group of Laimei Pharmaceutical's headquarters will experience a substantial increase in revenue due to the launch of new drugs, resulting in the highest revenue growth of 64.77% during the forecast period. The increase in profit margin of 16.29% is also due to the launch of new drugs.

21. Long-term deferred expenses

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Items Balance at the beginning of the year Increase during the year Amortization during the year Other decreases Balance at the end of the year Zhongheng (Nanning) Pharmaceutical Products

Industry base project No. 1 workshop machine 15,587,000.00 1,308,000.00 14,279,000.00 Electrical installation project

Nanning exhibition hall decoration project 11,948,444.28 1,002,666.72 10,945,777.56 Decoration fee 6,382,204.63 853,745.79 1,825,692.05 5,410,258.37 Admission fee 3,258,147.89 508,521.24 2,480,468.93 1,286,200.20 Other sporadic renovation projects 5,204,961.93 1,313,118.24 984,424.16 91,608.13 5,442,047.88Total 42,380,758.73 2,675,385.27 7,601,251.86 91,608.13 37,363,284.01

22. Deferred income tax assets and deferred income tax liabilities

(1) Deferred income tax assets without offset

Ending balance Beginning balance

Project

Deductible deferred income tax Deductible deferred income tax

Temporary differences assets Temporary differences assets

Asset impairment provision 929,004,309.54 165,617,702.29 745,642,078.25 127,431,417.56 Recoverable losses 370,916,289.38 55,552,261.31 282,732,073.92 42,196,714.33 Other equity instrument investments

16,837,600.19 2,525,640.03 18,673,358.45 2,801,003.77 Changes in fair value

Lease liabilities 9,459,090.51 1,925,076.72 13,445,629.54 2,518,794.21 Unrealized profits from internal sales

5,247,717.23 787,157.58 17,618,666.44 2,483,935.43 Profit impact

trading financial assets company

24,305,742.47 4,914,969.55 14,986,078.41 3,005,232.07 Changes in fair value

Deferred income 13,803,844.33 2,639,226.65 14,280,823.50 1,800,933.53 Other non-current financing

Production impairment provision/fairness 10,027,040.00 1,504,056.00 5,027,040.00 754,056.00 Value changes

Equity method accounting for investment losses

30,448,379.91 5,514,202.98 19,344,894.99 2,901,734.25 Gain changes

Total 1,410,050,013.56 240,980,293.11 1,131,750,643.50 185,893,821.15

(2) Deferred income tax liabilities without offset

Ending balance Beginning balance

Project

Taxable deferred income tax Taxable deferred income tax

Temporary differences Liabilities Temporary differences Liabilities

Included in other comprehensive income

Changes in fair value of other equity instrument investments 201,174,659.96 50,293,664.99 210,993,813.72 52,748,453.38

Enterprises not under common control

97,506,201.66 23,497,226.25 103,305,917.39 24,887,264.94 Increased value of consolidated assets

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Ending balance Beginning balance

Project

Taxable deferred income tax Taxable deferred income tax

Temporary differences Liabilities Temporary differences Conversion from liability cost method to equity method

Calculate the fair value of the remaining equity 109,726,679.20 16,459,001.88 109,726,679.20 16,459,001.88 Impact of value provision

Right-of-use asset confirmation impact

8,509,149.98 1,671,710.29 11,071,102.58 2,062,785.45 amount

Accelerated depreciation of fixed assets 5,393,859.23 896,894.90 5,671,209.68 850,681.45 Equity method accounting for investment losses

2,495,231.54 374,284.73 2,016,692.51 302,503.87 profit change

Total 424,805,781.57 93,192,783.04 442,785,415.08 97,310,690.97

(3) Details of deferred income tax assets not recognized

Item Ending balance Beginning balance

Deductible temporary differences 402,158,847.75 290,896,533.29 Deductible losses 747,190,871.54 733,567,585.50 Total 1,149,349,719.29 1,024,464,118.79

(4) Deductible losses that have not been recognized as deferred income tax assets will expire in the following years

Year Amount at the end of the year Amount at the beginning of the year Remarks

2025 96,275,251.02

2026 140,586,860.23 145,536,769.48

2027 125,606,576.41 131,585,625.39

2028 97,345,565.10 109,558,716.03

2029 119,654,285.09 139,221,259.99

2030 212,041,954.60 45,099,871.42

2031

2032 283,874.49

2033 5,921,324.14 20,937,075.77

Unlimited 46,034,305.97 45,069,141.91 Total deductible losses of Lais Mills Hong Kong 747,190,871.54 733,567,585.50 —

23. Other non-current assets

Items Balance at the end of the year Balance at the beginning of the year Long-term assets prepaid 43,571,750.35 49,296,079.20 Total 43,571,750.35 49,296,079.20 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

24. Assets with restricted ownership or rights of use

End of year

Project

Book balance Book value Restriction type Restriction situation

Guarantee of entrusted payment Mortgage of time deposit certificates, monetary funds 7,798,998.01 7,798,998.01

Deposits, loan pledges, margins and other monetary funds 44,598,050.88 44,598,050.88 Time and customized certificates of deposit Time and customized certificates of deposit

Undue bills receivable 17,810,387.56 17,810,387.56 Bill recourse

Fixed assets with recourse 234,356,040.64 93,229,559.41 Mortgage Bank borrowings mortgage intangible assets 66,784,557.26 44,386,941.84 Mortgages Bank borrowings mortgage investment real estate 15,421,911.09 2,962,980.74 Mortgage Bank loan pledged by Laimi Pharmaceutical Co., Ltd.

200,472,635.87 219,529,847.07 Pledge Bank loan pledged for Longyu’s equity investment

Total 587,242,581.31 430,316,765.51

(continued table)

Beginning of the year

Project

Book balance Book value Restriction type Restriction situation

Guarantee of entrusted payment Mortgage of time deposit certificates, monetary funds 2,098,904.99 2,098,904.99

Deposits, loan pledges, security deposits and other monetary funds 42,281,148.19 42,281,148.19 Time and customized certificates of deposit Fixed assets of time and customized certificates of deposit 230,608,976.98 99,917,083.25 Mortgage Intangible assets mortgaged by bank borrowings 63,623,627.49 46,391,281.93 Mortgage Bank loan mortgaged investment real estate 11,689,704.50 2,253,199.99 Mortgage Bank loan mortgaged by Laimi Pharmaceutical to Laimi

200,472,635.87 225,520,531.39 Pledge Bank loan pledged for Longyu’s equity investment

Total 550,774,998.02 418,462,149.74

25. Short-term borrowings

(1) Classification of short-term loans

Borrowing Category Ending Balance Beginning Balance

Credit loan 760,390,818.15 927,200,000.00 Pledge loan 1,000,000.00 5,264,255.80 Guaranteed loan 220,950,000.00 164,359,852.00 Pledge loan

Pledged and guaranteed loans 39,999,752.00 30,000,000.00 Pledged and guaranteed loans 87,200,000.00 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Borrowing Category Ending Balance Beginning Balance

Mortgage and pledged loans 30,000,000.00 68,750,000.00 Factoring of accounts receivable 8,126,834.30 21,268,477.83 Bill discount loans 11,768,037.33

Interest payable on undue short-term borrowings 2,329,651.51

Total 1,074,565,093.29 1,304,042,585.63

(2) Overdue short-term loans: None.

26. Accounts payable

(1) Presentation of accounts payable

Item Ending balance Beginning balance

Within 1 year 254,005,750.63 362,325,775.03 1-2 years 125,176,617.98 110,619,683.37 2-3 years 4,530,459.99 1,129,218.07 More than 3 years 28,756,986.98 29,610,563.71Total 412,469,815.58 503,685,240.18

(2) Important accounts payable that are aged more than 1 year or are overdue

Including: Aging exceeds 1 Name of unit outstanding or carried forward Year-end balance

The reason for the balance of the year

Supplier 1 8,026,447.10 8,026,447.10 Unsettled

Supplier 2 6,028,200.00 6,028,200.00 Unsettled

Total 14,054,647.10 14,054,647.10 —

27. Advance payments

(1) Presentation of advance receipts

Category Ending balance Beginning balance

Within 1 year 1,627,371.74 1,380,899.43 More than 1 year 2,592,444.40 2,667,853.52 Total 4,219,816.14 4,048,752.95

(2) Important advances from customers aged more than 1 year or overdue

Unit name Year-end balance Reason for outstanding or carry-forward

Land lease payment received in advance, Customer 6 2,592,444.40

Recognition conditions have not yet been met Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Unit name Year-end balance Total reasons for outstanding repayment or carry-forward 2,592,444.40 —

28. Contract liabilities

(1) Contract liabilities

Item Ending balance Beginning balance

Advance payment 28,075,914.78 35,462,414.49 Total 28,075,914.78 35,462,414.49

(2) Important contract liabilities aged more than 1 year: None.

(3) Significant changes in book value this year: None.

29. Employee benefits payable

(1) Classification of employee benefits payable

Item Balance at the beginning of the year Increase during the year Decrease during the year Ending balance Short-term compensation 85,335,781.97 410,195,122.47 400,429,031.00 95,101,873.44 Post-employment benefits-set

69,554.91 39,086,888.10 39,085,241.25 71,201.76Defined contribution plan

Dismissal benefits 4,495,949.88 4,426,748.25 69,201.63 Others

Total 85,405,336.88 453,777,960.45 443,941,020.50 95,242,276.83

(2) Short-term compensation

Item Balance at the beginning of the year Increase during the year Decrease during the year End balance Salaries, bonuses, allowances

83,541,182.38 332,365,208.91 322,974,093.03 92,932,298.26 and subsidies

Employee welfare fees 77,282.00 13,945,892.82 13,954,829.32 68,345.50 Social insurance fees 38,690.31 20,502,945.80 20,501,745.66 39,890.45 Including: medical insurance fees 33,169.89 19,205,760.00 19,204,042.42 34,887.47 Work-related injury insurance premium 5,520.42 1,180,587.12 1,181,104.56 5,002.98 Maternity insurance premium 81,915.37 81,915.37

Others 34,683.31 34,683.31

Housing provident fund 73,169.90 20,932,944.10 20,880,354.80 125,759.20 Union funds and employees

1,582,069.86 7,535,204.94 7,194,921.09 1,922,353.71 Educational funds

Other short-term compensation 23,387.52 14,912,925.90 14,923,087.10 13,226.32 Total 85,335,781.97 410,195,122.47 400,429,031.00 95,101,873.44 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(3) Set up a withdrawal plan

Item Balance at the beginning of the year Increase during the year Decrease during the year End of the year balance Basic pension insurance 66,708.80 37,084,305.55 37,082,541.30 68,473.05 Unemployment insurance premium 2,846.11 1,227,490.88 1,227,608.28 2,728.71 Supplementary pension insurance 775,091.67 775,091.67

Total 69,554.91 39,086,888.10 39,085,241.25 71,201.76

30. Taxes payable

Item Ending balance Beginning balance

Corporate income tax 4,261,709.00 40,842,068.36 Value-added tax 12,426,424.23 18,724,280.37 Education surcharge (including local) 2,621,323.12 2,898,563.96 Personal income tax 1,741,081.91 2,215,851.50 Urban maintenance and construction tax 866,787.17 1,270,595.78 Stamp tax 225,149.13 390,949.97 Land value-added tax 317,982.37 Other taxes and fees 325,612.71 217,456.31 Total 22,468,087.27 66,877,748.62

31. Other payables

Item Ending balance Beginning balance

Interest payable 38,812,500.00

Dividends payable 16,246,780.45 1,994,136.55 Other payables 346,742,780.00 491,000,805.69 Total 401,802,060.45 492,994,942.24

31.1 Interest payable

(1) Classification of interest payable

Item Ending balance Beginning balance

Others 38,812,500.00

Total 38,812,500.00

(2) Important overdue and unpaid interest

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Unit name Overdue amount Reason for overdue

Company 1 38,812,500.00 Guangxi Lisui is short of funds and has yet to settle the total 38,812,500.00 —

31.2 Dividends payable

Item Ending balance Beginning balance

Dividends on ordinary shares 16,246,780.45 1,994,136.55 Including: Dividends payable to minority shareholders of Zhongheng Group 1,338,780.45 1,787,636.55

Dividends payable to minority shareholders of subsidiaries 14,908,000.00 206,500.00 Total 16,246,780.45 1,994,136.55

31.3 Other payables

(1) Other payables are listed according to the nature of the payment

Nature of payment Balance at the end of the year Balance at the beginning of the year

Accounts payable for agency business of Laimei Pharmaceutical 141,123,427.03 201,477,801.63 Accounts payable to non-affiliated companies 107,970,175.75 174,326,506.93 Security deposits, deposits, temporary collections and payables and temporary withholdings 97,649,177.22 115,196,497.13 Total 346,742,780.00 491,000,805.69

(2) Important other payables aged more than 1 year or overdue: None.

32. Non-current liabilities due within one year

Item Ending balance Beginning balance

Long-term borrowings due within one year 212,795,495.56 201,279,479.94 Lease liabilities due within one year 4,753,443.01 5,261,972.73 Total 217,548,938.57 206,541,452.67

33. Other current liabilities

Item Ending balance Beginning balance

Acceptance bills that have not been derecognized 6,042,350.23 493,781.14 Output tax to be reversed 3,473,751.65 4,052,281.84 Total 9,516,101.88 4,546,062.98

34. Long-term borrowings

Borrowing Category Ending Balance Beginning Balance

Mortgage loans 47,500,000.00 49,000,000.00 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Borrowing Category Ending Balance Beginning Balance

Guaranteed loans 28,300,000.00 190,126,113.48 Credit loans 491,850,000.00 292,000,000.00 Mortgage and guaranteed loans 94,400,000.00 104,400,000.00 Mortgage and pledged loans 18,750,000.00 25,000,000.00 Interest payable on undue long-term borrowings 45,495.56

Subtotal 680,845,495.56 660,526,113.48 Less: Long-term borrowings due within one year 212,795,495.56 201,279,479.94 Total 468,050,000.00 459,246,633.54

35. Lease liabilities

Item Ending balance Beginning balance

Net lease payments 12,951,544.95 18,583,143.66 Less: reclassified to non-current liabilities due within one year 4,753,443.01 5,261,972.73 Total 8,198,101.94 13,321,170.93

36. Estimated liabilities

Item Ending balance Beginning balance

Pending litigation 2,332,039.61 2,332,039.61 Total 2,332,039.61 2,332,039.61

37. Deferred income

(1) Classification of deferred income

Item Balance at the beginning of the year Increase during the year Decrease during the year Balance at the end of the year Reasons for formation Government subsidies 155,743,730.77 4,000,000.00 8,460,620.55 151,283,110.22 Asset-related government subsidies 10,301,226.25 4,348,045.79 4,440,616.24 10,208,655.80 Total related to income 166,044,957.02 8,348,045.79 12,901,236.79 161,491,766.02 —

(2) Government subsidy projects

Newly added during the year. Other asset-related/liability items included in the year. Balance at the beginning of the year. Balance at the end of the year.

Subsidy amount Income amount Related to income Nanning Biomedical Industry Base 107,264,633.52 4,677,211.80 102,587,421.72 Related to assets Central budget investment funds 38,637,000.00 2,146,500.00 36,490,500.00 Asset-related emergency medical supplies guarantee funds 5,100,000.00 900,000.00 4,200,000.00 Related to assets “Compound preparation sand for treating diabetes”

Development of Gliptin Metformin Sustained-release Tablets 3,430,000.00 3,430,000.00 Profit-related and application research” project funding

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Newly added during the year. Other asset-related/liability items included in the year. Balance at the beginning of the year. Balance at the end of the year.

Subsidy amount Income amount Related to income “Secondary development of Xueshuantong Injection and

2,256,500.00 2,256,500.00 "Industrial Application Research Related to Income" project subsidy

Special funds for industrial development in 2018 1,967,958.06 118,077.48 1,849,880.58 Asset-related advanced manufacturing technology of Xueshuantong for injection

1,750,000.00 350,000.00 1,400,000.00 Income-related standard verification and application projects

Special funds for informatization in 2021 1,401,709.31 210,256.44 1,191,452.87 Asset-related Guangxi Traditional Chinese Medicine and Ethnic Medicine Industry Cluster Association

Improving quality and efficiency through joint research and advantageous products 1,314,726.25 355,630.00 691,464.61 978,891.64 Research projects related to income

Clinical research on innovative drugs and medical devices

1,050,000.00 1,050,000.00 Income-related research and product development

Guangxi Traditional Chinese Medicine and Ethnic Medicine Industry Cluster Association

Improve quality and efficiency by jointly tackling key problems and advantageous products

1,995,000.00 1,359,136.79 635,863.21 Research project related to income-secondary development of proprietary Chinese medicine products

Issue subsidies

Industrial demonstration of traditional Chinese medicine village in Zhongheng Road, Teng County

4,000,000.00 112,500.03 3,887,499.97 Asset-related area subsidies

Other sporadic subsidies 1,872,429.88 1,997,415.79 1,286,089.64 2,583,756.03

Total 166,044,957.02 8,348,045.79 12,901,236.79 161,491,766.02

38. Other non-current liabilities

Item Ending balance Beginning balance

Capital contribution share payable to senior partners 300,000,000.00

Contract liabilities 23,987,783.44 22,422,569.00 Total 323,987,783.44 22,422,569.00

39. Share capital

Increase or decrease in changes during the year (+, -)

Shareholder name Beginning balance

Issue Provident Fund

Year-end balance bonus shares Other subtotal

New shares Conversion

Total shares 3,354,321,713.00 -170,158,643.00 -170,158,643.00 3,184,163,070.00

Note: Other decreases in shares this year were mainly due to the cancellation of 159,093,343.00 shares repurchased, the unrealized portion of restricted stocks granted to employees, employees’ voluntary withdrawal from the restricted stock incentive plan, and the cancellation of 11,065,300.00 shares of restricted stocks granted to employees who have resigned.

40. Capital reserve

Item Beginning balance Increase during the year Decrease during the year Ending balance Equity premium

Other capital reserves 7,137,625.31 7,137,625.31 Total 7,137,625.31 7,137,625.31 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

41. Treasury stock

Item Balance at the beginning of the year Increase during the year Decrease during the year Balance at the end of the year Equity incentive to repurchase shares 19,768,198.19 31,365,160.26 51,133,358.45

Other repurchased shares 93,048,767.02 301,044,181.66 394,092,948.68

Total 112,816,965.21 332,409,341.92 445,226,307.13

Note: (1) The increase and decrease in shares repurchased under equity incentives this year is due to the company’s restricted stock incentive plan implemented in 2022. Since the company’s 2024 performance did not meet the performance assessment conditions related to the third unlocking period, 204 incentive objects applied to withdraw from the restricted stock incentive plan due to personal reasons and some incentive objects no longer meet the incentive conditions, the company repurchased and canceled all restricted stocks that had been granted but had not yet been released from sales restrictions during this reporting period;

(2) The increase and decrease in other repurchased shares this year is due to the company using its own funds to repurchase the company's shares and canceling them. Note: Financial Statements Co., Ltd. Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Comprehensive income and other

.24

forehead hair year book

Before the crediting period: minus

The last year of Eyu

The first year of Eyu

Project

After-tax

After-tax

Tax income: minus

Comprehensive income and other

Pre-tax income year book

Few shareholders

Company parents

fees

Gains and losses are transferred when

Amount

Earnings retained or

23.465,965,631

37.75

85.820,408,5-

56.424,971,2-

05.593,389,7-

09.295,373,241

Profit and loss can be comprehensively classified into other categories according to the following:

23.465,965,631 37.75 85.820,408,5- 56.424,971,2-

05.593,389,7- 09.295,373,241 Variable value of fair value investment instruments equity and others: Among them, the income and income are consolidated and other losses and losses are divided into categories and then redistributed, and the two balances are reported. Financial currency: Among them, 23.465,965,631 37.75 85.820,408,5- 56.424,971,2-

05.593,389,7- 09.295,373,241

Total Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

43. Special reserves

Item Balance at the beginning of the year Increase during the year Decrease during the year Ending balance Safety production expenses 7,657,826.93 4,772,442.65 1,541,181.96 10,889,087.62 Total 7,657,826.93 4,772,442.65 1,541,181.96 10,889,087.62

44. Surplus reserve

Item Balance at the beginning of the year Increase during the year Decrease during the year Ending balance Statutory surplus reserve 709,047,190.52 1,518,402.72 243,702,503.87 466,863,089.37 Total 709,047,190.52 1,518,402.72 243,702,503.87 466,863,089.37

Note: The decrease in surplus reserve this year is mainly due to the cancellation of shares and insufficient offset against capital reserve, which will be offset against retained earnings.

45. Undistributed profits

Items this year previous year

Undistributed profits at the end of the previous year before adjustment 1,922,166,033.57 2,334,211,845.29 Total undistributed profits at the beginning of the year before adjustment (adjustment +, decrease -)

Among them: "Accounting Standards for Business Enterprises" and related new regulations

Retrospective adjustment

Adjusted undistributed profit at the beginning of the year 1,922,166,033.57 2,334,211,845.29 Plus: Net profit attributable to owners of the parent company for the year -357,088,533.52 -376,979,146.18 Less: Appropriation of statutory surplus reserve 1,518,402.72 1,241,022.50

Dividends payable on ordinary shares 33,825,643.04 Balance at the end of the year 1,563,559,097.33 1,922,166,033.57

46. Operating income and operating costs

(1) Operating income and operating costs

Amount incurred this year Amount incurred last year

Project

revenue cost revenue cost

Main business 1,701,359,965.05 950,142,911.32 2,054,088,194.94 1,089,375,751.87 Other businesses 47,226,441.34 27,393,531.58 50,672,689.77 34,166,015.90 Total 1,748,586,406.39 977,536,442.90 2,104,760,884.71 1,123,541,767.77 Note attached financial statements Finance Group Co., Ltd. Hengzhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Information breakdown of cost operations and revenue operations

)2(

Total

Partializer

Partially produced real estate

Partial tasting

Some pharmaceutical products

classification contract

Bencheng Business Camp

income business

Bencheng Business Camp

income business

Bencheng Business Camp

income business

Bencheng Business Camp

income business

Bencheng Business Camp

income business

23.119,241,059

50.569,953,107,1

12.004,669,14

31.566,734,15

22.597,016,22

80.984,657,93

55.424,235,021

35.407,345,971

43.192,330,567

13.601,226,034,1

type merchandiser

34.229,006,267

97.231,143,704,1

34.229,006,267

97.231,143,704,1

Drugs: Zhongqi

55.424,235,021

35.407,345,971

55.424,235,021

35.407,345,971

Taste food

22.597,016,22

80.984,657,93

22.597,016,22

80.984,657,93

Sales of delivery rooms

12.004,669,14

31.566,734,15

12.004,669,14

31.566,734,15

Productization day

19.863,234,2

25.379,082,32

19.863,234,2

25.379,082,32

Others

23.119,241,059

50.569,953,107,1

12.004,669,14

31.566,734,15

22.597,016,22

80.984,657,93

55.424,235,021

35.407,345,971

43.192,330,567

13.601,226,034,1

Class zoning land operation mortgage

56.960,108,043

83.248,634,794

56.448,044,11

93.029,866,02

22.597,016,22

80.984,657,93

12.479,761,101

04.836,837,351

75.554,185,502

15.497,272,382

Nanhua

98.692,486,07

71.576,004,991

18.580,679,8

63.748,074,8

73.063,995,6

05.094,962,9

17.058,801,55

13.733,066,181

Donghua

29.019,554,622

94.497,073,334

06.466,605,3

69.318,898,3

25.599,056,01

01.097,421,31

08.052,892,212

34.091,743,614

Regionally Chinese

17.437,029,45

22.756,267,39

23.936,310,4

61.922,390,4

93.590,709,05

60.824,966,98

Beihua

10.839,775,04

51.281,288,38

41.219,056

67.953,927

78.520,729,93

93.228,251,38

District Northeast

57.155,925,941

51.918,624,192

52.147,811,31

35.946,762,31

05.018,014,631

26.961,951,872

Southwest

61.481,794,36

78.917,621,69

44.215,952

79.448,803

27.176,732,36

09.478,718,59

District northwest

32.522,676,3

26.472,359,5

54.490,411,2

35.587,014,3

87.031,265,1

90.984,245,2

foreign country

Time-based transfer of goods to merchants

23.119,241,059

50.569,953,107,1

12.004,669,14

31.566,734,15

22.597,016,22

80.984,657,93

55.424,235,021

35.407,345,971

43.192,330,567

13.601,226,034,1

Classification

23.119,241,059 50.569,953,107,1 12.004,669,14 31.566,734,15 22.597,016,22 80.984,657,93 55.424,235,021 35.407,345,971 43.192,330,567 13.601,226,034,1

Confirm that someone is there at the time. Confirm that someone is at the period. 23.119,241,059 50.569,953,107,1 12.004,669,14 31.566,734,15 22.597,016,22 80.984,657,93 55.424,235,021 35.407,345,971 43.192,330,567 13.601,226,034,1

Channel sales by category are 27.120,268,258 81.326,497,765,1 24.534,126,63 52.019,818,44 22.597,016,22 80.984,657,93 74.303,905,801 39.519,170,061 16.784,021,586 29.703,741,323,1

The sales body is offline 06.988,082,79 78.143,565,331 97.469,443,5 88.457,816,6

80.121,320,21 06.887,174,91 37.308,219,97 93.897,474,701

Sales network online23.119,241,059 50.569,953,107,1 12.004,669,14 31.566,734,15 22.597,016,22 80.984,657,93 55.424,235,021 35.407,345,971 43.192,330,567 13.601,226,034,1

Total Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(3) Information related to performance obligations

Whether it is the pre-payment undertaken by the company. The quality provided by the company.

Fulfillment of performance obligations Important payments Transfer of company commitments

Item Main Liability Period Quality Guarantee Type and Time of Return to Warranty Terms Nature of the Goods

Any person’s money and related obligations

For cardiovascular and cerebrovascular fields

Pharmaceutical industry and related businesses When delivering, payment will be made before delivery Yes No Drugs such as statutory quality assurance drugs

After some goods arrive

Give a certain amount of money Guiling jelly series and other

Food production and related businesses At the time of delivery Yes No Statutory quality guarantee period, some prior foods Other foods

Goods after payment

Pre-sale money, press

Real estate development and related businesses Upon delivery Commercial housing and shops, etc. Yes No Legal quality guarantee payment

After some goods arrive

Give a certain account

Jahwa product business delivery time Daily chemical products Yes None Statutory quality guarantee period, some prior

Goods after payment

Medical equipment and other related matters will be given after the goods arrive.

Medical devices and related businesses Upon delivery Yes No Statutory quality guarantee for a certain accounting period Products

Will be given after arrival

Pharmaceutical Wholesale Industry When Delivery Drugs Yes No Statutory Quality Guarantee Certain Account Period

47. Taxes and Surcharges

Item Amount incurred this year Amount incurred last year

Property tax 16,956,160.17 16,570,811.12 Urban maintenance and construction tax 7,554,688.14 11,159,663.13 Education surcharge (including local) 5,544,632.75 8,074,357.99 Land use tax 3,854,791.23 3,896,554.07 Stamp duty 1,845,203.72 1,892,471.27 Land value-added tax 1,715,826.02 3,294,944.65 Consumption tax 255,149.41 210,222.62 Water conservancy construction fund 191,433.46 140,344.01 Others 56,510.88 51,046.17 Total 37,974,395.78 45,290,415.03

48. Selling expenses

Item Amount incurred this year Amount incurred last year

Market development and promotion expenses 308,777,130.73 479,400,963.25 Employee compensation 119,192,659.24 118,345,447.08 Travel expenses 18,005,317.81 21,878,878.45 Labor expenses 12,464,494.62 13,944,095.30 Depreciation and amortization 8,277,627.91 7,408,183.40 Conference fees 7,055,707.25 7,199,937.93 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Amount incurred this year Amount incurred last year

Business entertainment expenses 3,401,194.03 3,719,423.47 Office expenses 1,632,653.14 2,067,208.99 Information technology usage fees 1,110,463.01 956,920.25 Samples and damage and loss 826,463.42 1,894,818.01 Others 10,876,215.21 9,341,406.57 Total 491,619,926.37 666,157,282.70

49. Administrative expenses

Item Amount incurred this year Amount incurred last year

Employee compensation 163,800,294.81 158,731,019.06 Depreciation and amortization 85,272,106.89 86,339,518.99 Property management fees 15,661,960.13 22,339,406.28 Intermediary agency and consulting fees 16,318,863.93 17,992,239.21 Office expenses 9,191,001.16 8,711,528.52 Rental expenses 4,559,227.30 6,921,274.79 Safety production expenses 4,764,008.89 6,717,243.67 Repair expenses 5,048,340.96 4,996,897.34 Travel expenses 3,712,740.65 4,797,729.15 Fund management fees 6,382,980.43 4,126,981.29 Utilities 2,886,384.12 2,812,307.51 Business entertainment expenses 1,897,264.18 2,501,753.90 Advertising expenses 667,648.87 1,704,568.94 Labor expenses 183,627.83 310,968.21 Others 22,403,105.95 20,279,249.06 Total 342,749,556.10 349,282,685.92

50. Research and development expenses

Item Amount incurred this year Amount incurred last year

Outsourcing R&D expenses 53,875,745.20 55,244,514.43 Employee compensation 38,604,319.04 37,671,205.44 Material expenses 19,452,500.61 9,562,393.36 Depreciation and amortization expenses 4,554,808.73 5,305,584.04 Testing and laboratory processing fees 551,662.93 102,983.06 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Amount incurred this year Amount incurred last year

New product design costs 373,999.34 84,752.47 Inspection fees 318,886.22 529,587.53 Others 7,527,700.54 9,000,400.71 Total 125,259,622.61 117,501,421.04

51. Financial charges

Item Amount incurred this year Amount incurred last year

Interest expense 64,321,898.81 59,468,698.90 Less: Interest income 103,336,320.61 100,192,761.30 Plus: Exchange loss -1,107,143.16 -842,368.20

Other expenses 416,012.66 488,632.86 Total -39,705,552.30 -41,077,797.74

52. Other income

Sources of other income Amount incurred this year Amount incurred last year

Government subsidies related to daily activities 46,177,692.28 73,023,326.26 Input tax plus deduction 2,611,510.46 5,215,559.28 Withholding personal income tax handling fee return 100,240.91 76,770.73 Total 48,889,443.65 78,315,656.27

(1) Government subsidy details

Asset-related/subsidy items Amount incurred this year Amount incurred last year

Enterprise development funds related to income 21,186,522.90 39,580,123.68 Loan subsidies for designated production enterprises of national special needs commodities related to income 5,927,534.06 7,929,355.55 Verification and application of advanced manufacturing technology standards for Xueshuantong Injection related to income

350,000.00 7,615,900.00 Income-related items

Nanning pharmaceutical industry base production and construction support fund 4,677,211.80 4,639,528.92 Asset-related central budget investment funds 2,146,500.00 2,146,500.00 Asset-related Guangxi industrial leader reward funds 2,000,000.00 Income-related research and development cost subsidy funds 3,824,968.00 1,022,405.03 Income-related emergency medical supplies guarantee fund 900,000.00 900,000.00 Asset-related job stabilization return 870,048.68 848,801.77 Income-related reward and subsidy for promoting stable growth of Guangxi pharmaceutical industry 800,000.00 Income-related autonomous region intellectual property award 500,000.00 707,350.00 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd. related to income

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Asset-related/subsidy items Amount incurred this year Amount incurred last year

Related to income The second Guangxi Enterprise Innovation and Entrepreneurship Award 500,000.00 Related to income Special subsidy funds 361,000.00 Related to income Enterprises absorb poverty-stricken labor force to promote employment subsidies 138,186.69 319,736.95 Related to income "Key technologies for the secondary development of Xueshuantong for injection (lyophilization)"

300,000.00 Profit-related R&D and Industrial Application” project funds

Reward and subsidy funds for the production of key materials for COVID-19 prevention and control 279,300.00 Patent subsidy related to income 253,000.00 Subsidy for the development of traditional Chinese medicine and ethnic medicine for daily use and great health products related to income 226,366.00 230,000.00 Related to income Prior to the special project of Changshou District municipal guidance for district and county science and technology development

210,000.00 220,000.00 Funds related to income

Special funds for informatization in 2021 210,256.44 210,256.44 Asset-related new preparation factory industry revitalization and technological transformation project 186,012.35 Asset-related Guangxi Traditional Chinese Medicine and Ethnic Medicine Industry Science and Technology Special Project "Medicine and Food Integration

117,206.21 171,472.00 Development of series products related to income "Technology and Economics"

Employment subsidies 294,107.30 152,425.56 Income-related enterprise development subsidies in Liuyang City Xiangcai Qizhi [2016] No. 77 150,000.00 150,000.00 Asset-related rewards for upgrading and entering the system 50,000.00 150,000.00 Related to income, the Guangxi Zhuang Autonomous Region Market Supervision and Administration Bureau issued a notice on

500,000.00 130,000.00 Income-related notice of the Western Zhuang Autonomous Region Intellectual Property Special Fund Management Measures

Special funds for industrial development in 2018 118,077.48 118,077.48 Asset-related solid workshop intelligent transformation project 106,074.84 106,074.84 Asset-related research and development of the classic traditional Chinese medicine recipe "Citrus aurantium, Xiebai Guizhi Decoction"

316,000.00 Issued related to income

Guangxi Traditional Chinese Medicine and Ethnic Medicine Industry Cluster Collaboratively Addresses Key Problems and Advantageous Products

691,464.61 Research on improving quality and efficiency of revenue-related products - development of new drugs with classic famous prescriptions

Guangxi Traditional Chinese Medicine and Ethnic Medicine Industry Cluster Collaboratively Addresses Key Problems and Advantageous Products

1,359,136.79 Research on improving quality and efficiency of revenue-related products - secondary development of proprietary Chinese medicine products

Guangxi Postdoctoral Project Subsidy 160,000.00 Related to Income "Chemistry-Biology" Dual-core Driven Heat-clearing and Detoxifying Traditional Chinese Medicine Quality Evaluation

116,711.65 Research on revenue-related price system and intelligent analysis

In the first quarter of 2024, the government will support the government’s actions to speed up and increase efficiency of industry.

180,000.00 Income-related policy subsidy funds (to support negative growth)

Subsidy for Zhongheng Road Traditional Chinese Medicine Village Industrial Demonstration Zone in Teng County 112,500.03 Asset-related high-tech enterprise recognition subsidy 100,000.00 Other sporadic subsidies related to income 638,818.80 996,005.69

Total 46,177,692.28 73,023,326.26

53. Investment income

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Items Amount incurred this year Amount incurred last year Income from long-term equity investments accounted for by equity method -17,107,845.22 -21,989,815.47 Investment income from disposal of long-term equity investment 395,673.87 101,861.85 Investment income from disposal of trading financial assets 398.19 -30,440,759.91 Dividend income from other equity instrument investments during the holding period 10,310,111.44 11,292,026.82 Interest income from other debt investments during the holding period 19,150,944.40 Investment income from other non-current financial assets during the holding period 36,889,067.28 43,177,046.62 Investment income from disposal of other non-current financial assets -191,882.73 14,112,400.00 Others 4,935.26 1,660,622.69 Total 30,300,458.09 37,064,327.00

54. Gains from changes in fair value

Sources of income from changes in fair value Amount incurred this year Amount incurred last year Trading financial assets -10,090,694.04 -71,453,427.22 Other non-current financial assets -85,535,607.95 -113,313,541.68 Total -95,626,301.99 -184,766,968.90

55. Credit impairment loss

Items Amount incurred this year Amount incurred last year Bad debt losses on other receivables (including interest receivable) -65,801,161.63 -49,600,643.15 Bad debt losses on accounts receivable -9,148,727.52 -2,279,412.39 Bad debt losses on notes receivable 37,927.12 -10,370.08 Total -74,911,962.03 -51,890,425.62

56. Asset impairment loss

Items Amount incurred this year Amount incurred last year Impairment losses on intangible assets -72,062,727.01 -31,147,854.22 Impairment losses on goodwill -69,832,495.64 -151,830,757.28 Impairment losses on fixed assets -42,595,632.29 -370,723.16 Inventory depreciation losses and contract performance cost impairment losses -31,395,508.85 -40,057,132.52 Impairment losses on construction in progress -21,667,728.31 -16,649,755.65 Biological asset impairment losses -573,300.00 -135,600.00 Development expenditure impairment losses -2,076,751.28

Total -240,204,143.38 -240,191,822.83 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

57. Income from asset disposals

Items Amount incurred this year Amount incurred last year Income from disposal of non-current assets 138,069.43 325,892.71 Including: Income from disposal of fixed assets 29,077.84 -166,139.70 Income from disposal of intangible assets

Income from disposal of right-of-use assets 108,991.59 492,032.41 Total 138,069.43 325,892.71

58. Non-operating income

Items included in non-recurring losses this year Amount incurred this year Amount incurred last year

amount of profit

Gains from damage and scrapping of non-current assets 17,394.68

Including: Profit from scrapping fixed assets 17,394.68

Economic compensation income 511,094.67 42,185,476.89 511,094.67 Liquidated damages 2,699,297.54 1,530,831.96 2,699,297.54 Others 513,535.39 192,610.04 513,535.39 Total 3,723,927.60 43,926,313.57 3,723,927.60

59. Non-operating expenses

Included in non-recurring items for the current year Amount for the current year Amount for the previous year

Amount of profit and loss Loss from damage and scrapping of non-current assets 413,625.67 379,477.60 413,625.67 Including: Loss from scrapping fixed assets 413,625.67 129,477.52 413,625.67

Loss on scrapping of intangible assets 250,000.08

Others 12,113,644.38 34,764,101.84 12,113,644.38 Total 12,527,270.05 35,143,579.44 12,527,270.05

60. Income tax expenses

(1) Income tax expenses

Items Amount incurred this year Amount incurred last year Income tax expense for the year 25,221,911.26 68,226,133.27 Deferred income tax expense -57,024,955.24 -25,501,253.17 Total -31,803,043.98 42,724,880.10

(2) Adjustment process of accounting profits and income tax expenses

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Amount incurred this year

Total consolidated profit for the year -527,065,763.75 Income tax expenses calculated according to statutory/applicable tax rates -131,766,440.94 The impact of different tax rates applicable to subsidiaries 7,654,488.23 The impact of adjusting income taxes in previous periods 12,413,753.07 The impact of non-taxable income -414,718.16 The impact of non-deductible costs, expenses and losses 58,098,157.32 The impact of using deductible losses of deferred income tax assets not recognized in the previous period -3,539,451.31 The impact of deductible temporary differences or deductible losses of unrecognized deferred income tax assets this year 36,391,061.94 Changes in the balance of deferred income tax assets/liabilities at the beginning of the period due to tax rate adjustments -909,840.00 The impact of super deduction of R&D expenses -5,439,148.68 Others -4,290,905.45 Income tax expenses -31,803,043.98

61. Other comprehensive income

For details, please refer to the relevant content of "V. 42 Other Comprehensive Income" in this note.

62. Cash flow statement items

(1) Cash related to operating activities

1. Other cash received related to operating activities

Item Amount incurred this year Amount incurred last year

Security deposits, other operating activities and current accounts 394,131,694.71 830,016,311.58 Interest income from demand deposits 80,115,840.36 73,731,789.41 Government subsidies 57,567,139.39 73,135,029.48 Rental income 16,439,740.92 10,136,199.47 Total 548,254,415.38 987,019,329.94

2. Other cash paid related to operating activities

Item Amount incurred this year Amount incurred last year

Period expenses 642,564,304.16 679,452,828.83 Security deposit, other operating activities and current accounts 283,277,874.18 747,360,244.87 Total 925,842,178.34 1,426,813,073.70

(2) Cash related to investing activities

1. Significant cash received related to investing activities

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Amount incurred this year Amount incurred last year

Equity disposal payment received from Honggui 121,766,280.00 58,233,720.00 Entrusted loan principal recovered 500,000,000.00 Guohai Asset Management Plan investment recovered 433,720,000.00 Tianqi received fixed asset disposal payment in the previous period 91,188,811.93 Total 121,766,280.00 1,083,142,531.93

2. Important cash payments related to investment activities

Item Amount incurred this year Amount incurred last year

Payment to Chengdu Hongsheng Phase I Venture Capital Partnership (Limited

120,000,000.00

Partnership) capital contribution

Payment to Guangxi Shenhong Zhongheng Health Industry Investment Partnership

98,000,000.00 (limited partnership) capital contribution

Total 120,000,000.00 98,000,000.00

3. Other cash received related to investing activities

Item Amount incurred this year Amount incurred last year

Time and customized deposits 78,542,500.00 Entrusted loan interest income received 20,300,000.01 Security deposit for investment activities recovered 67,500.00 5,000,000.00 Other investments received 7,801,090.36 69,148.75 Total 7,868,590.36 103,911,648.76

4. Other cash paid related to investment activities

Item Amount incurred this year Amount incurred last year

Fixed and customized certificates of deposit 244,532.92 16,531,737.36 Security deposit for investment activities 3,590,748.00 3,119,332.00 Total 3,835,280.92 19,651,069.36

(3) Cash related to financing activities

1. Other cash received related to financing activities

Item Amount incurred this year Amount incurred last year

Deposit interest 27,083,699.24 34,134,032.32 Total 27,083,699.24 34,134,032.32

2. Other cash paid related to financing activities

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Amount incurred this year Amount incurred last year

Repurchase of treasury shares 301,044,181.66 279,146,298.80 Return of equity incentive payment 17,823,548.00 21,378,018.00 Payment of other financing expenses such as handling fees of financial institutions 286,552.48 125,773.24 Handling fees of dividend payment 22,130.60 23,467.69 Others 10,897,724.60 6,848,500.54 Total 330,074,137.34 307,522,058.27

3. Changes in various liabilities arising from financing activities

Increase this year Decrease this year

Item Beginning Balance Ending Balance Non-cash Non-cash

Cash changes Cash changes

change change

Short-term borrowings 1,304,042,585.63 1,507,384,978.52 33,675,912.33 1,765,308,260.08 5,230,123.11 1,074,565,093.29 Long-term borrowings (including one

660,526,113.48 364,069,636.42 485,843.62 344,236,097.96 680,845,495.56 years due)

Notes payable 13,736,600.00 13,736,600.00

Lease liabilities (including one

Lease due within the year 18,583,143.66 3,888,092.19 8,829,088.43 690,602.47 12,951,544.95 Liabilities)

Total 1,983,151,842.77 1,871,454,614.94 51,786,448.14 2,132,110,046.47 5,920,725.58 1,768,362,133.80

(4) Explanation on presenting cash flow in net amount: None.

63. Supplementary information to cash flow statement

(1) Supplementary information for cash flow statement

Item Amount for the current year Amount for the previous year 1. Adjust net profit to cash flow from operating activities: — —

Net profit -495,262,719.77 -551,020,377.35 plus: asset impairment provision 240,204,143.38 240,191,822.83 Credit impairment loss 74,911,962.03 51,890,425.62 Depreciation of fixed assets, investment real estate, productive biological assets

121,166,009.37 128,679,104.23 Depreciation

Depreciation of right-of-use assets 7,794,068.58 8,823,062.61 Amortization of intangible assets 28,195,939.98 29,425,424.67 Amortization of long-term prepaid expenses 7,601,251.86 9,061,548.09 Losses on disposal of fixed assets, intangible assets and other long-term assets

-138,069.43 -325,892.71 (Income is listed with "-")

Loss on scrapping of fixed assets (income is listed with “-”) 413,625.67 362,082.92

Loss from changes in fair value (income is listed with "-") 95,626,301.99 184,766,968.90 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Amount for the current year Amount for the previous year

Financial expenses (income is listed with "-") 65,280,123.96 92,760,363.02 Investment losses (income is listed with "-") -30,300,458.09 -37,064,327.00 Decrease in deferred income tax assets (increase is listed with "-") -55,086,471.96 -15,542,023.42 Increase in deferred income tax liabilities (decreases are indicated with "-") -1,938,483.28 -10,117,980.43 Decrease in inventories (increases are indicated with "-") 124,883,364.83 -46,975,859.80 Decrease in operating receivables (increases are indicated with "-") 63,149,541.30 516,837,749.44 Increase in operating payables (decreases are listed with "-") -265,408,113.53 -100,654,844.98 Others -23,670,191.51 Net cash flow generated from operating activities -18,907,983.11 477,427,055.13 2. Major investment and financing activities not involving cash receipts and payments:

debt to capital

Convertible corporate bonds due within one year

Financing leased fixed assets

3. Net changes in cash and cash equivalents:

The year-end balance of cash 3,352,579,489.72 4,003,314,380.54 Less: The year-end balance of cash 4,003,314,380.54 2,796,359,925.07 Plus: The year-end balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase in cash and cash equivalents -650,734,890.82 1,206,954,455.47

(2) Net cash received from disposal of subsidiaries this year

Item Amount

Cash or cash equivalents received from disposal of subsidiaries this year 6,303,025.90, including: Hunan Medical Equipment 3,909,856.00

Chongqing Medical Equipment 2,393,169.90 Less: Cash and cash equivalents held by the company on the day it lost control 5,520,566.53 Among them: Hunan Medical Equipment 3,127,563.63

Chongqing Medical Equipment 2,393,002.90 plus: cash or cash equivalents received in this year from disposal of subsidiaries in previous periods

Net cash received from disposal of subsidiaries 782,459.37

(3) Composition of cash and cash equivalents

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item Ending balance Beginning balance

Cash 3,352,579,489.72 4,003,314,380.54 Including: cash on hand

Bank deposits that can be used for payment at any time 3,351,992,460.07 4,003,210,912.39

Other monetary funds available for payment at any time 587,029.65 103,468.15 Cash equivalents

Including: Bond investments due within three months

Balance of cash and cash equivalents at the end of the year 3,352,579,489.72 4,003,314,380.54 Among them: the parent company or subsidiaries within the group have restricted use

Cash and cash equivalents

(4) Monetary funds that are not cash and cash equivalents

Not classified as cash and

Item Amount for the current year Amount for the previous year

Reasons for cash equivalents

Fixed and customized certificates of deposit held to maturity to obtain interest income 44,598,050.88 42,281,148.19

main purpose

Provision for bank deposit interest 1,362,514.48 7,054,392.74 Not actually received

Bank deposits frozen 6,619,565.41 Litigation frozen

Loan deposits and pledges paid as entrusted 1,179,432.60 2,098,904.99

Deposit, etc.

Total 53,759,563.37 51,434,445.92 —

64. Foreign currency monetary items

Items Foreign currency balance at the end of the year Conversion exchange rate RMB balance of monetary funds at the end of the year — — 42,611,117.81 Including: U.S. dollars 6,062,342.02 7.0288 42,610,989.59 Euro 0.10 8.2355 0.82

HKD 141.05 0.9032 127.40 Accounts receivable — — 129,039.89 Including: USD 27.56 7.0288 193.71

Hong Kong dollars 142,655.20 0.9032 128,846.18 Short-term borrowings — — 143,951,560.90 Including: US dollars 14,170,000.00 7.0288 99,598,096.00 Japanese yen 990,099,000.00 0.0448 44,353,464.90

65. Leasing

(1) The Group serves as the lessee

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Amounts incurred this year and items incurred last year

Short-term lease expenses with simplified treatment included in the current profit and loss 4,929,453.19 1,274,906.79 Low-value asset lease expenses with simplified treatment included in the current profit and loss

1,212,262.77 (excluding short-term rentals)

Variable lease payments not included in the measurement of lease liabilities

Including: part generated from sale and leaseback transactions

Income from subletting right-of-use assets

Total cash outflows related to leasing 13,554,773.84 9,251,988.46 (2) The Group serves as the lessor

1. Operating leases in which the Group acts as the lessor

Including: Amount of items not included in lease receipts

Income related to variable lease payments Lease income 28,934,561.63

Total 28,934,561.63

6. R&D expenditures

Item Amount incurred this year Amount incurred last year

Outsourcing R&D expenses 87,871,035.75 73,771,239.18 Employee compensation 42,586,464.64 41,231,165.89 Material expenses 20,581,697.57 13,729,625.41 Depreciation and amortization expenses 5,174,018.35 6,178,304.30 Inspection fee 807,111.30 955,933.39 Testing and processing fee 662,369.35 764,382.35 New product design fee 373,999.34 84,752.47 Others 9,837,784.47 11,044,091.40 Total 167,894,480.77 147,759,494.39 Including: Expenditure R&D expenditure 125,259,622.61 117,501,421.04

Capitalized R&D expenditures 42,634,858.16 30,258,073.35 Note attached financial statements Hengzhongzhou Wuxi Guangzhou Finance Company Co., Ltd.

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

The conditional capital for project development and research is in compliance with

.1

The amount is reduced and the annual principal is reduced

Amount added to annual amount

The last year of Eyu

The first year of Eyu

Project

Provisions minus expenditures

Others

Confirmation of assets and assets

Transfer during the profit and loss period

Others

Expenditure and development entrustment

Within the Expenditure and Development Department

58.623,895,4

82.542,996

88.747,313

96.333,585,3

One item

34.295,783,1

34.295,783,1

Second project

88.628,150,3

98.103,825

24.299,742

75.235,572,2

Three projects

57.028,817,3

00.008,457

22.412,202

35.608,167,2

Four items

06.063,573,2

47.730,66

27.407,573

41.816,339,1

Five items

33.439,364,2

15.146,221,1

88.181,812

49.011,321,1

Six items

96.593,639,3

32.693,342

36.900,762

38.989,524,3

Seven items

82.157,670,2

51.815,738,1

00.000,698

72.662,671

61.300,248,2

Eight items

34.261,044,1

23.746,253

11.515,780,1

Nine items

60.536,380,7

06.650,948

54.166,764

10.719,667,5

Ten items

53.309,721,2

12.279,768

41.139,952,1

ten items

97.403,147,3

25.520,983 72.972,253,3 Twenty items 56.045,871,4

00.000,520,2 92.120,481 63.915,969,1 Thirty items 95.251,279,2

00.000,057 20.521,681 75.720,630,2 40 items 19.450,498,2 27.457,085 92.727,626,1 09.275,686 50 items 23.557,193,1

76.499,324 56.067,769 Sixty Project 39.310,356,3

00.000,003,3 39.310,353

Seventy Item Notes Schedule Financial Company Co., Ltd. Group Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

The amount is reduced and the annual principal is reduced

Amount added to annual amount

The last year of Eyu

The first year of Eyu

Project

Provisions minus expenditures

Others

Confirmation of assets and assets

Transfer during the profit and loss period

Others

Expenditure and development entrustment

Within the Expenditure and Development Department

14.379,942,4

00.000,002,4

14.379,94

Eighty items

53.673,300,01

00.000,000,01

53.673,3

Ninety items

11.926,976,6

19.768,476,6

02.167,4

Twelve items

26.488,670,1

82.542,976

20.822,821

23.114,962

12 items

23.027,891

23.021,99

00.006,99

Twenty-two items

90.361,938

93.349,526

07.912,312

Thirty-two items

71.654,87

71.654,87

Forty-two items

92.435,22

92.435,22

Fifty-two items

19.797,421,15

82.157,670,2

52.381,289,12

19.450,498,2

55.092,599,33

16.765,936,8

91.929,244,53

Total

The importance of project R&D capital

)1(

Start based on specific capital

Capitalization at this point begins

Economic forecasting of production benefits

Estimated time to be completed

R&D

Final period of capital accumulation

Project

No. registration test EB formal bureau management supervision drug country obtains

Month 21 4202

Product sales occur and parts are obtained

Year 7202

Sample delivery and registration

60.536,380,7

Ten items

4202 product sales registration reports are currently obtained and staged approvals are obtained in March 3. 6202 application registrations are currently approved. The application for product sales approval in the 4202 phase was obtained in 2018, and the approval of the 56.045,871.4 project in 2002 should be obtained before the 30th project acceptance phase. The product sales report for stage approval was generated in 2018. The approval was obtained in 2002. The 40 project approval results were reported in 7202. The official bureau of drug supervision and administration obtained the product sales of 5202 products in April 4, and obtained the approval of 39.310,356,3 seventy items in the report in 2002. Financial Group Co., Ltd. Zhongzhou Wuxi Guangzhong Co., Ltd.

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Start based on specific capital

Capitalization at this point begins

Economic forecasting of production benefits

Estimated time to be completed

R&D

Final period of capital accumulation

Project

No. registration test EB formal bureau management supervision drug country obtains

Month 4 Year 5202

Product sales occur and parts are obtained

Year 7202

Mid-term declaration

14.379,942,4

Eighty items

No. registration test EB formal bureau management supervision drug country obtains

Month 01 5202

Product sales occur and parts are obtained

Year 8202

clinical research

53.673,300,01

Ninety items

No. registration test EB formal bureau management supervision drug country obtains

Month 6 5202

Product sales occur and parts are obtained

Year 7202

Mid-term declaration

11.926,976,6

Twelve items

98.526,165,24

Total

Provisions minus expenditures

)2(

case test value minus

The last year of Eyu

Reduce annual capital

Add annual version

The first year of Eyu

The project reserve value has been reduced and tested 82.157,670,2

82.157,670,2

Eight projects—82.157,670,2

82.157,670,2

Total. None: Project research is more important than purchasing

.2 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

7. Changes in consolidation scope

1. Disposal of subsidiaries

Loss of control over disposal price and disposal investment Loss of control

Time point when control is lost When control is lost Name of corresponding subsidiary in consolidated financial statements Disposal at time point When control is lost

Disposal price Judgment basis at the time point Net proportion of the subsidiary enjoyed by the level (%) Disposal method

The difference between asset shares

Transfer money is received and

Hunan Medical

3,788,800.00 100.00 Equity transfer July 2025 Completed industrial and commercial application -42,577.46 Equipment

Change registration

(continued)

The date of loss of control and the date of loss of control of the equity of the atomic company shall be based on fair value.

Loss of control Consolidated financial statement level Others related to investment

Daily Consolidated Financial Statements Daily Consolidated Financial Statements Remeasurement Residuals

The remaining equity on the date of the name of the subsidiary is transferred to the remaining equity at the investment level. The fair comprehensive income is transferred to the remaining equity at the investment level. The profit generated from the remaining equity at the equity level is

Proportion of rights Method of determining value Capital gain or loss or book value of retained rights Fair value of rights Gain or loss

and key assumptions Amount of benefit Hunan Medical

• • • • Not applicable -

equipment

2. Changes in consolidation scope due to other reasons

(1) On August 31, 2025, the company transferred 390.00 of Guangxi Lisui Investment Partnership (Limited Partnership) (hereinafter referred to as "Guangxi Lisui") held by Guangxi Haisheng Investment Management Co., Ltd. (hereinafter referred to as "Guangxi Haisheng", the GP of Guangxi Lisui) 10,000 yuan partnership share and 66 million yuan partnership share in Guangxi Defu Investment Partnership (Limited Partnership) (hereinafter referred to as "Guangxi Defu") held by Guangxi United Asset Management Co., Ltd. (hereinafter referred to as "United Asset Management"). Guangxi Defu is the priority investor of Guangxi Lisui, and Guangxi Defu and Guangxi Lisui are both structured entities. The company comprehensively considers the purpose of establishing these structured entities, the proportion of shares held by the company, and the actual risks assumed, and determines that the company has the rights to the structured entities, so it is included in the consolidated financial statements;

(2) Five companies, Guangxi Zhongheng Pharmaceutical Group Co., Ltd., Chongqing Laimei Medical Devices Co., Ltd., Chengdu Wuhou Jiaruai Clinic Co., Ltd., Chengdu Tianyi Health Management Co., Ltd., and Chengdu Wuhou Tianyi Internet Hospital Co., Ltd., announced on December 22, 2025, December 18, 2025, September 5, 2025, and 2025 respectively. Industrial and commercial deregistration was completed on February 17 and February 11, 2025, and will no longer be included in the consolidated financial statements;

8. Interests in other entities

1. Interests in subsidiaries

(1) Composition of enterprise groups

Shareholding ratio

Main voting rights

Subsidiary name Place of registration Nature of business Mode of acquisition Place of business Direct Indirect Proportion (%)

(%) (%)

Non-common control Wuzhou Pharmaceutical Wuzhou City Wuzhou City Pharmaceutical 99.9963 99.9963

Business Combination Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Shareholding ratio

Main voting rights

Subsidiary name Place of registration Nature of business Mode of acquisition Place of business Direct Indirect Proportion (%)

(%) (%)

Nanning Zhongheng Investment Nanning City Nanning City Investment and development 100.00 100.00 Establishment

Zhaoqing Pharmaceutical Zhaoqing, Guangdong Zhaoqing, Guangdong Pharmaceutical 100.00 100.00 Establishment

Zhongheng Medical Technology Wuzhou City Wuzhou City Medical Production 100.00 100.00 Establishment

Non-common control Shuangqian Health Shares Wuzhou City Wuzhou City Food production 95.00 5.00 100.00

Business merger not under the same control Dual Money Health Care Wuzhou City Wuzhou City Food Production 75.00 75.00

Business merger Zhaoqing double money Guangdong Zhaoqing Guangdong Zhaoqing Industrial investment 100.00 100.00 Establishment

Nanning Shuangqian Nanning City Nanning City Food production and sales 100.00 100.00 Establishment

Double Money Health Industry Nanning City Nanning City Goods Trade 100.00 100.00 Establishment

Non-common control Zhongheng Pharmaceutical Wuzhou City Wuzhou City Drug sales and distribution 100.00 100.00

Business merger not under common control Guangtou Pharmaceutical Nanning City Nanning City Drug circulation 65.00 65.00

corporate merger botanicals

Zhongheng Chinese Medicinal Materials Wuzhou City Wuzhou City 60.00 40.00 100.00 Establishment

planting

Zhongheng Innovative Medicine Nanning City Nanning City Pharmaceutical Research 100.00 100.00 Establishment

Zhongheng Tongde Nanning City Nanning City Pharmaceutical Investment 98.00 N/A Establishment

Not under common control Tianqi Jiahua Guangxi Wuzhou City Jiahua 55.4426 100.00

merge

Hengxin Pharmaceutical Wuzhou City, Guangxi Drug retail 100.00 100.00 Establishment

Lihe Investment Nanning City Nanning City Pharmaceutical Investment 99.00 N/A Establishment

Zhongheng Yixin Nanning City Nanning City Venture Capital 100.00 100.00 Establishment

Guangxi Defu Nanning City Nanning City Investment and asset management 18.0279 Note* Investment obtained from Guangxi Lisui Nanning City Nanning City Investment and asset management 30.0709 11.9815 Note* Investment obtained from Laimei Pharmaceutical not under common control Chongqing City Chongqing Nan'an District Pharmaceutical manufacturing 23.43 2.03 25.46

Laimei Pharmaceutical acquired under common control through business merger Chongqing City Chongqing Northern New District Pharmaceutical Distribution 100.00 100.00

Acquired Laimeijude through business merger Chongqing City Chongqing Northern New District Pharmaceutical Distribution 100.00 100.00 Established and acquired Laimei Zhenyu Chongqing City Chongqing High-tech Zone Pharmaceutical Distribution 51.00 51.00 Established Aijia Special Line Sichuan Province Chengdu Wuhou District Health Consulting 75.00 75.00 Established and acquired Laimei Longyu Chongqing City Chongqing Changshou District Pharmaceutical manufacturing 100.00 100.00 Establishment and acquisition of Kangyuan Pharmaceutical Hunan Province Liuyang, Hunan Pharmaceutical manufacturing 100.00 100.00

Acquisition of Yaohuapiaoxiang through business merger Beijing City Beijing Pharmaceutical Promotion 100.00 100.00 Establishment Acquisition of Chengdu Jinxing under non-common control Sichuan Province Chengdu Jinniu District Immunological preparations 90.00 90.00

Acquired Yingrui Pharmaceuticals through business combination Sichuan Province Chengdu High-tech Zone Pharmaceutical Research 61.00 61.00 Established and acquired Guangxi Wuzhou Zhongheng Group Co., Ltd. Notes to the financial statements

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Shareholding ratio

Main voting rights

Subsidiary name Place of registration Nature of business Mode of acquisition Place of business Direct Indirect Proportion (%)

(%) (%)

Lhasa, Lai Meji Lhasa City not under common control Pharmaceutical distribution 51.00 51.00

Chengdu acquired SAIF Health through business merger Guangdong Province Guangzhou City Investment business 47.96 47.96 Others

Hainan Medical Devices Hainan Province Hainan Province Medical Devices 82.35 82.35 Establishment and Acquisition of Laimei Qingfeng Jiangsu Province Changzhou City Investment Business 29.90 29.90 Others

Blue Sky Sharing Beijing City Beijing City Pharmaceutical Promotion 80.00 80.00 Others

Medico not under common control Chongqing Chongqing Liangjiang New District Medical equipment 51.00 51.00

Acquired through business merger Lais Mills Hong Kong Hong Kong Chai Wan, Hong Kong Investment business 100.00 100.00 Established and acquired

Note*: Guangxi Defu is the priority investor in Guangxi Lisui, with a capital share of 66.4609% in Guangxi Lisui. The Company is the junior investor in Guangxi Defu. Both partnerships are structured entities. Based on the purpose of establishing these two structured entities and the actual risks of the structured entities assumed by the Company, the company will include them in the consolidated financial statements.

(2) Important non-wholly owned subsidiaries

Held by minority shareholders Attributable to minority shareholders during the year Attributable to minority shareholders during the year

Shareholding ratio Profit and loss of shareholders Dividends declared Equity balance Guangxi Wuzhou Pharmaceutical (Group) shares

0.0037% -3,886.20 1,500.00 128,197.91 Co., Ltd.

Chongqing Laimei Pharmaceutical Co., Ltd. 74.54% -116,538,049.23 1,343,058,135.28

(3) Main financial information of important non-wholly owned subsidiaries

1. Guangxi Wuzhou Pharmaceutical (Group) Co., Ltd.

Items Year-end balance/Amount incurred this year Beginning balance/Amount incurred last year

Current assets 1,374,523,076.46 1,852,379,285.27 Non-current assets 1,598,634,039.88 1,719,445,152.17 Total assets 2,973,157,116.34 3,571,824,437.44 Current liabilities 1,245,541,033.00 1,604,281,053.75 Non-current liabilities 170,938,813.73 270,231,953.32 Total liabilities 1,416,479,846.73 1,874,513,007.07 Operating income 466,334,476.88 630,386,384.65 Net profit -105,032,538.88 -121,924,155.88 Total comprehensive income -103,472,144.36 -121,311,581.85 Cash flow from operating activities -189,677,321.96 207,911,175.65 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

2. Chongqing Laimei Pharmaceutical Co., Ltd.

Items Year-end balance/Amount incurred this year Beginning balance/Amount incurred last year

Current assets 1,521,339,931.40 1,770,099,007.74 Non-current assets 1,053,376,778.00 1,085,700,663.80 Total assets 2,574,716,709.40 2,855,799,671.54 Current liabilities 728,488,867.76 801,612,877.55 Non-current liabilities 82,160,371.58 170,854,777.80 Total liabilities 810,649,239.34 972,467,655.35 Operating income 775,686,202.33 795,597,751.21 Net profit -126,531,916.80 -80,088,456.71 Total comprehensive income -142,792,610.48 -198,842,271.66 Cash flow from operating activities 26,037,754.68 185,030,045.99

2. Situation where the ownership share of the subsidiary changes and the subsidiary is still controlled: None.

3. Interests in joint ventures or associates

(1) Important joint ventures or associates: None.

(2) Main financial information of important joint ventures: None.

(3) Main financial information of important associates: None.

(4) Summary financial information of unimportant joint ventures and associates

Ending balance / Beginning balance /

Project

Amount incurred this year Amount incurred last year

Associates — —

Total investment book value 517,452,904.29 517,384,709.87 Total of the following items calculated based on shareholding ratio - -

--Net profit -17,107,845.22 -21,989,815.47 --Other comprehensive income

--Total comprehensive income -17,107,845.22 -21,989,815.47

9. Government subsidies

1. Government subsidies recognized according to the amount receivable at the end of the year

The year-end balance of accounts receivable is RMB 14,004,267.68.

Subsidy items Year-end balance Aging of accounts Estimated collection time

Industrial support funds 14,004,267.68 Within 1 year 2026

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Subsidy items Year-end balance Aging of accounts Estimated collection time

Total 14,004,267.68 —— ——

2. Liability items involving government subsidies

New additions this year Transfer in this year and assets/income accounting accounts Beginning balance Year-end balance

Amount of subsidy Amount of other income Related deferred income 155,743,730.77 4,000,000.00 8,460,620.55 151,283,110.22 Deferred income related to assets 10,301,226.25 4,348,045.79 4,440,616.24 10,208,655.80 Total related to income 166,044,957.02 8,348,045.79 12,901,236.79 161,491,766.02

3. Government subsidies included in current profits and losses

Accounting items Amount incurred this year Amount incurred last year

Other income 46,177,692.28 73,023,326.26 Non-operating income

Total 46,177,692.28 73,023,326.26

10. Risks related to financial instruments

The Group faces various financial instrument risks in its daily activities, mainly including market risks (such as exchange rate risks, interest rate risks and commodity price risks), credit risks and liquidity risks, etc. The risks associated with these financial instruments, and the risk management policies adopted by the Group to mitigate these risks, are described below. The management of the Group manages and monitors these risk exposures to ensure that the above risks are controlled within limited limits.

The Group's goal in risk management is to achieve an appropriate balance between risks and returns, minimize the negative impact of risks on the Group's operating performance, and maximize the interests of shareholders and other equity investors. Based on this risk management objective, the Group's basic risk management strategy is to determine and analyze the various risks faced by the Group, establish an appropriate risk tolerance bottom line and conduct risk management, and supervise various risks in a timely and reliable manner to control risks within a limited range.

1. Market risk

(1) Exchange rate risk

The Group's exposure to exchange rate risks is mainly related to U.S. dollars, Hong Kong dollars, Euros, and Japanese yen. Except for the Group's Lai Mei (Hong Kong) Co., Ltd., which invests in U.S. dollars, Guangxi Shuangqian Health Industry Co., Ltd.'s import and export business uses U.S. dollars for procurement and sales, and Guangxi Wuzhou Zhongheng Group Co., Ltd.'s overseas financing borrowings in U.S. dollars and Japanese yen, the Group's other major business activities are denominated and settled in RMB. As of December 31, 2025, except for the US dollar and Japanese yen balances and sporadic Euro and Hong Kong dollar balances of assets and liabilities described in the table below, the Group's assets and liabilities were all RMB balances. The exchange rate risk arising from such assets and liabilities with US dollar balances may have an impact on the Group's operating results. Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Project December 31, 2025 December 31, 2024

Monetary funds – US dollars 6,062,342.02 5,896,876.13 Monetary funds – Hong Kong dollars 141.05 37.76 Monetary funds – Euro 0.10 0.10 Accounts receivable – Hong Kong dollars 142,655.20 86,135.90 Accounts receivable – US dollars 27.56 2,680.76 Short-term borrowings – US dollars 14,170,000.00

Short-term borrowings - Japanese yen 990,099,000.00

The Group pays close attention to the impact of exchange rate changes on the Group.

(2) Interest rate risk

The Group's interest rate risk arises from bank borrowings and other interest-bearing debts. Financial liabilities with floating interest rates expose the Group to cash flow interest rate risk, while financial liabilities with fixed interest rates expose the Group to fair value interest rate risk. The Group determines the relative proportion of fixed-rate and floating-rate contracts based on the prevailing market environment. As of December 31, 2025, the Group's interest-bearing debts were mainly fixed-rate contracts denominated in US dollars, with a total amount of RMB 102,556,800; fixed-rate contracts denominated in Japanese yen, with a total amount of RMB 49,534,000; fixed-rate and floating-rate contracts denominated in RMB, with a total amount of RMB 1,589,269,800.

The Group's risk of changes in the fair value of financial instruments due to changes in interest rates is mainly related to fixed-rate bank borrowings. For fixed rate borrowings, the Group aims to maintain floating interest rates.

The Group's risk of changes in cash flows of financial instruments due to changes in interest rates is mainly related to floating rate bank borrowings. The Group's policy is to maintain floating interest rates on these borrowings to eliminate fair value risk from interest rate changes. (3) Price risk

1. Commodity price risk

The Group's pharmaceutical sales are affected by changes in hospital bidding prices.

2. Equity instrument investment price risk

Equity instrument investment price risk refers to the risk that the fair value of equity securities is reduced due to changes in stock index levels and individual security values. The available-for-sale listed equity instrument investments held by the Group are listed on the Shenzhen Stock Exchange and the NASDAQ Stock Exchange in the United States, and are measured based on market quotations on the balance sheet date. This investment in available-for-sale equity instruments creates investment price risk.

The sensitivity analysis of other price risks of equity instrument investments is shown in the table below, which reflects the impact on net profit and shareholders' equity when the fair value of equity instruments changes, assuming that other variables remain unchanged.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

other comprehensive income

Investment in equity instruments Net profit and loss Shareholders’ equity

net of tax

Project

increase/

Book value change increase/decrease increase/decrease

reduce

Equity Instrument Investment

Including: Measured at fair value

And its changes are included in other comprehensive equity instrument investments 1,054,780,198.37 5% 39,624,006.94 39,624,006.94 income

2. Credit risk

The Group manages credit risks by portfolio classification. Credit risk mainly arises from monetary funds, notes receivable, accounts receivable, receivable financing, other receivables, etc.

In order to reduce credit risks, the Group has established a special department to determine credit limits, conduct credit approval, and implement other monitoring procedures to ensure that necessary measures are taken to recover overdue claims. In addition, the Group reviews the recovery status of each individual receivable on each balance sheet date to ensure that sufficient bad debt provisions are made for unrecoverable amounts. Therefore, the management of the Group believes that the credit risk borne by the Group has been greatly reduced.

The Group's working capital is deposited in banks with higher credit ratings, so the credit risk of working capital is lower.

The Group has adopted necessary policies to ensure that all sales customers have good credit records. Except for the top five accounts receivable, the Group has no other significant concentration of credit risk. The total amount of the top five accounts receivable of the Group is RMB 106,659,321.83, accounting for 22.99% of the company’s total accounts receivable.

3. Liquidity risk

Liquidity risk is the risk that the Group will be unable to meet its financial obligations on due dates. The Group's approach to managing liquidity risk is to ensure sufficient liquidity to meet maturing debts without causing unacceptable losses or damage to corporate reputation. The Group's goal is to use a variety of financing methods such as bank borrowings and other interest-bearing borrowings to maintain a balance between financing continuity and flexibility.

11. Disclosure of fair value

1. Year-end fair value of assets and liabilities measured at fair value

year-end fair value

Project

The first level of fairness The second level of fairness The third level of fairness

total

value measurement value measurement value measurement

1. Continuous fair value measurement — — — —

(1) Trading financial assets 77,018,399.01 77,018,399.01

1. Measured at fair value and its changes

77,018,399.01 77,018,399.01 Financial assets included in current profits and losses

(1) Others 77,018,399.01 77,018,399.01

2. Designated to be measured at fair value and its

Financial financing whose changes are included in the current profit and loss

produce

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

year-end fair value

Project

The first level of fairness The second level of fairness The third level of fairness

total

value measurement value measurement value measurement

(2) Other debt investments

(3) Investment in other equity instruments 1,054,780,198.37 1,054,780,198.37

(4) Other non-current financial assets 26,807,873.27 518,116,245.33 247,720,769.42 792,644,888.02 1. Measured at fair value with changes

26,807,873.27 518,116,245.33 247,720,769.42 792,644,888.02 Financial assets included in current profits and losses

(1) Investment in debt instruments 518,116,245.33 518,116,245.33 (2) Investment in equity instruments 26,807,873.27 247,720,769.42 274,528,642.69 2. Designated to be measured at fair value and change

Financial assets automatically included in current profits and losses

(1) Debt instrument investment

(2) Equity instrument investment

(5) Investment real estate

Assets measured at fair value on an ongoing basis

1,081,588,071.64 595,134,644.34 247,720,769.42 1,924,443,485.40 Total

(6) Trading financial liabilities

Liabilities measured at fair value on an ongoing basis

total amount

2. Non-continuous fair value measurement — — — —

(1) Assets held for sale

Assets that are not continuously measured at fair value

Total output

Non-continuous negative liabilities measured at fair value

Total debt

2. Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

Item Year-end fair value Observable inputs

As of December 31, 2025, the Company held Guohai Securities Co., Ltd.

1,040,830,298.56 245,478,844.00 shares of Co., Ltd. stock in Shenzhen Securities Exchange Department

The closing price was 4.24 yuan/share.

As of December 31, 2025, Wuzhou Pharmaceutical held Oramed Oramed

Pharmaceuticais Inc. shares 696,378 shares, Pharmaceuticals 13,949,899.81 in the United States

China Inc. closed at $2.85 per share on the NASDAQ.

The U.S. dollar exchange rate on December 31, 2025 announced by the People's Bank of China was 7.0288.

As of December 31, 2025, the company held 3,700,872 shares of Wuhan Youzhiyousheng Wuhan Youzhiyou Biopharmaceutical Co., Ltd., which is listed on the Hong Kong Stock Exchange.

26,807,873.27

Co., Ltd. The closing price of the stock exchange is 8.02 Hong Kong dollars per share, and the Hong Kong dollar exchange rate announced by the People's Bank of China on December 31, 2025 is 0.9032.

Total 1,081,588,071.64——

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

3. Continuous and non-continuous second-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters

Item Year-end fair value Observable inputs

Estimated based on the average price of the mortgaged equity corresponding to the debt investment as of 2025 518,116,245.33 in the twenty trading days before December 31 and taking into account relevant transaction taxes and fees.

According to the asset valuation report provided by the asset manager, as of December 31, 2025, Guohai Securities Zhuoyue No. 3188\3199, the Guohai Securities Zhuoyue held by the Group

77,018,399.01

Single Asset Management Plan Yue No. 3188\3199 Single Asset Management Plan Valuation

77,018,399.01 yuan.

Total 595,134,644.34

4. Continuous and non-continuous third-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters

Item Year-end fair value Description

Guangxi Guangtou Intelligent Service Group Co., Ltd. 1,000,000.00

Wuzhou Urban Rural Credit Cooperative Union 6,000,000.00

Jiangxi Aoxing Technology Co., Ltd. 20,000,000.00

Luzhou Jiuze Equity Investment Center (Limited Partnership) 27,593,454.57

GF Xinde Zhonghenghui Gold (Longyan) Equity Investment

79,337,882.87

Partnership (limited partnership)

Integra holdings ltd. 21,086,400.00

Valuation Techniques: Market Approach

Overseas project one 9,978,084.48

Important parameters: The latest investment valuation overseas project two 33,198,500.00

Overseas project three 39,838,100.00

According to the corresponding company’s operating conditions and project progress

Make a comprehensive judgment on development and financial status, etc. Overseas Project IV 9,688,347.50

The probability that the investment cost can be recovered is taken as the public

a reasonable estimate of fair value

Total 247,720,769.42

Note: The Group holds equity investments in Guangxi Guangtou Intelligent Service Group Co., Ltd., Wuzhou Urban Rural Credit Cooperative, Jiangxi Aoxing Technology Co., Ltd., Luzhou Jiuze Equity Investment Center (Limited Partnership), Guangfa Xinde Zhonghenghuijin (Longyan) Equity Investment Partnership (Limited Partnership), and overseas project companies No. 2 and 3. Since these entities are unlisted entities, the Group holds a small proportion of shares. The company believes that the investment cost is the best estimate of the fair value at the end of the period for these projects.

5. Continuous third-level fair value measurement items, reconciliation information between the beginning and end of the year book values and sensitivity analysis of unobservable parameters

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Item fair value

Amount at the beginning of the year 330,788,369.21 Total profit or loss for the current period -17,489,493.68 - Included in other comprehensive income

——Included into profit and loss -17,489,493.68 purchased

Disposal 65,578,106.11 Year-end balance 247,720,769.42

6. For ongoing fair value measurement items, if there is a conversion between various levels during the year, the reasons for the conversion and the policy for determining the time of conversion

During the year, there was no transfer of fair value between levels.

12. Related parties and related transactions

1. Related party relationships

(1) Information about the company’s parent company

Parent company to our company Parent company to our company

Registered capital

Name of parent company Registration place Nature of business Shareholding ratio Voting rights ratio (10,000 yuan)

(%) (%) Guangxi Investment Group Investment and Assets

Nanning City 1,537,846.00685 26.99 26.99Rong Holdings Co., Ltd. Management

Guangxi Investment Group Financial Holdings Co., Ltd.'s main business scope includes investment management of banks, securities, and insurance; investment, financing, and financial research; investment of corporate own funds; equity investment and management; asset management and disposal; entrusted asset management; and investment and management consulting services.

The ultimate controller of the company is the State-owned Assets Supervision and Administration Commission of the People's Government of Guangxi Zhuang Autonomous Region.

(2) Information about the company’s subsidiaries

For details on subsidiaries, please refer to the relevant content in "VIII. 1. (1) Composition of the Enterprise Group" in this note.

(3) Information about the company’s joint ventures and associates

Shareholding ratio (%)

Main business name of the invested unit of the Accounting Department Registration place Nature of business

Camp management methods

direct indirect

1. Joint ventures

Guangxi Shenhong Zhongheng Health Industry Investment Partnership (Limited Partnership) Nanning City Nanning City Investment 49.00 Equity method Shenzhen Guohai Zhongheng Medical Health Venture Investment Partnership

Shenzhen City Shenzhen City Investment 40.00 Equity method (limited partnership)

Wuxi Jiwang Information Technology Co., Ltd. (formerly known as Wuxi Laimei Jishengke

Wuxi City Wuxi City Technical Services 50.00 Equity Legal Technology Co., Ltd.)

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Shareholding ratio (%)

Main business name of the invested unit of the Accounting Department Registration place Nature of business

Camp management methods

direct indirect

2. Joint ventures

Wuzhou Export-oriented Industrial Park Development Co., Ltd. Wuzhou City Wuzhou City Investment 40.00 Equity method

Medicines and food

Fosun Pharma (Nanning) Co., Ltd. Nanning City Nanning City 34.00 Equity method

product sales

Chengdu Hongsheng Phase I Venture Capital Partnership (Limited Partnership) Chengdu City Chengdu City Investment 28.85 Equity method Nanning Huiyou Xingyao Equity Investment Fund Partnership (Limited Partnership) Nanning City Nanning City Investment 26.55 Equity method Shenzhen Tianyi Laimei Pharmaceutical Industry Investment Partnership (Limited Partnership) Shenzhen City Shenzhen City Investment 15.46 Equity Method Ningbo Meishan Bonded Port Zone Credit Enterprise Equity Investment Partnership

Ningbo City Ningbo City Investment 49.99 Equity method (limited partnership)

Hunan Maio Medical Technology Co., Ltd. Liuyang City Liuyang City Pharmaceutical Distribution 49.00 Equity method Guangxi Aglaiya Biotechnology Co., Ltd. Nanning City Nanning City Pharmaceutical Development 44.44 Equity method Chongqing Proxima Private Equity Investment Fund Partnership (Limited Partnership) Chongqing City Chongqing City Investment 41.67 Equity method Sichuan Laipuxin Medical Information Consulting Center (Limited Partnership) Chengdu City Chengdu City Pharmaceutical Distribution 30.00 Equity method Tibet Aosibixiu Pharmaceutical Co., Ltd. Lhasa City Lhasa City Pharmaceutical Distribution 25.00 Equity method

medical technology

Sichuan Kangdesai Medical Technology Co., Ltd. Chengdu City Chengdu City 31.63 Equity method

develop

Guangdong Donna Synergy Industrial Investment Partnership (Limited Partnership) Guangzhou City Guangzhou City Investment 41.24 Equity method

The information of other joint ventures or associates that have related party transactions with the Group this year, or have balances from related party transactions with the Group in previous periods, is as follows:

Name of joint venture or associated enterprise Relationship with this enterprise

Sichuan Laipuxin Medical Information Consulting Center (Limited Partnership) Associates

Tibet Aosibixiu Pharmaceutical Co., Ltd. Associate Enterprise

Hunan Maio Medical Technology Co., Ltd. Associate Company

Hunan Huipan Medical Technology Co., Ltd. Historical associates

Tibet Jian'an Pharmaceutical Chain Co., Ltd. Historical associates

Sichuan Kangdesai Medical Technology Co., Ltd. Associate Company

(4) Other related parties

Names of other related parties Relationship with the enterprise

Guangxi Beibu Gulf Bank Co., Ltd. The same ultimate controlling party

Qiu Yu holds more than 10% of the shares of important subsidiaries of Zhongheng Group

Li Yaxi Qiu Yu’s wife

Tibet Laimei Pharmaceutical Investment Co., Ltd. A company controlled by Qiu Yu, an important shareholder of the group’s subsidiaries

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

2. Related transactions

(1) Related transactions related to the purchase and sale of goods, provision and receipt of services

1. Purchasing goods/receiving services

Related parties Contents of related transactions Amount incurred this year Amount incurred last year

equipment, technology,

Guangxi Investment Group Co., Ltd. and its subsidiaries 19,545,664.01 26,959,894.56

Property services, etc.

Tibet Aosibixiu Pharmaceutical Co., Ltd. (Note) Procurement of goods 33,735,975.37 19,423,571.33 Tibet Aibixiu Pharmaceutical Co., Ltd. Procurement and promotion services 7,115,334.90 2,146,320.76 Sichuan Laipuxin Medical Information Consulting Center (Limited Partnership) Procurement and promotion services 3,076,480.00 1,894,000.00 Hunan Huipan Medical Technology Co., Ltd. Purchase of goods 2,585.31 Total 63,473,454.28 50,426,371.96

Note: Subsidiary Laimei Pharmaceutical purchases goods from related party Tibet Osbixiu Pharmaceutical Co., Ltd., and the revenue accounting method for external sales is divided into gross method and net method according to accounting standards, but the purchase amount here is presented using the gross method.

2. Selling goods/providing services

Related parties Contents of related transactions Amount incurred this year Amount incurred last year Tibet Aosibixiu Pharmaceutical Co., Ltd. Sales of goods 48,615,510.27 15,502,901.63 Guangxi Investment Group Co., Ltd. and its subsidiaries Sales of goods and provision of services 6,776,734.21 5,215,520.11 Hunan Huipan Medical Technology Co., Ltd. Sales of goods 31,061,937.62 Total 55,392,244.48 51,780,359.36

(2) Related leasing situation

1. Rental situation

Name of the lessee Type of leased assets Lease income recognized this year Lease income recognized last year Guangxi Investment Group Co., Ltd. Houses and buildings, transportation

4,884,298.70 5,291,342.35 and its subsidiaries tools, office equipment, etc.

Hunan Maiou Medical Technology Co., Ltd. Houses and buildings 679,908.00 311,400.00 Total 5,564,206.70 5,602,742.35

2. Leasing situation

Short-term rentals and low prices with simplified processing

rent paid

Lessor Leased assets Rental expenses for asset leases

Name Type

Amount incurred this year Amount incurred last year Amount incurred this year Amount incurred last year Guangxi Investment Group Co., Ltd. Houses and buildings,

210,302.43 249,297.67 233,056.65 272,201.07 Company and its subsidiaries Equipment, etc.

Total 210,302.43 249,297.67 233,056.65 272,201.07 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(3) Related guarantees

1. As a guarantor

Whether the guarantee is guaranteed. Name of the guaranteed party. Guarantee amount. Guarantee starting date. Guarantee expiration date.

Completed Sichuan Kangdesai 4,243,525.47 November 10, 2023 November 10, 2026 No

Sichuan Kangdesai 19,932,739.36 November 23, 2023 May 23, 2025 Yes

2. As a secured party

Whether the guarantee is guaranteed. Name of the guarantor. Guarantee amount. Guarantee starting date. Guarantee expiry date.

Completed Qiu Yu, Li Yaxi 37,500,000.00 January 27, 2022 January 26, 2025 Yes

(4) Fund lending from related parties: None.

(5) Asset transfer and debt restructuring of related parties: None.

(6) Remuneration of key management personnel

Project name Amount incurred this year (RMB 10,000) Amount incurred last year (RMB 10,000) Total salary 700.39 841.71

Note: The remuneration of key management personnel this year does not include the remuneration of supervisors.

3. Balances receivable and payable from related parties

(1) Items receivable

Ending balance Beginning balance

Project name Related parties

Book balance Bad debt provision Book balance Bad debt provision Accounts receivable Tibet Aosibixiu Pharmaceutical Co., Ltd. 24,720,301.71 494,406.04 13,719,789.82 274,395.80

Guangxi Investment Group Co., Ltd.

Accounts receivable 3,836,579.90 287,294.43 3,703,879.97 192,364.75

and its subsidiaries

Accounts receivable Hunan Huipan Medical Technology Co., Ltd. 2,824,754.52 56,495.09 3,133,128.96 62,662.58 Other receivables Tibet Laimei Pharmaceutical Investment Co., Ltd. 36,891,901.06 36,891,901.06 36,891,901.06 36,891,901.06

Guangxi Investment Group Co., Ltd.

Other receivables 1,548,956.02 566,320.49 619,128.99 400,485.08

and its subsidiaries

Other receivables Tibet Jian'an Pharmaceutical Chain Co., Ltd. 342,453.32 54,792.53

(2) Items payable

Project name Related parties Book balance at the end of the year Book balance at the beginning of the year Accounts payable Tibet Aosibixiu Pharmaceutical Co., Ltd. 22,455,096.02 16,347,272.79 Accounts payable Guangxi Investment Group Co., Ltd. and its subsidiaries 359,497.79 472,719.53 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Project name Related parties Book balance at the end of the year Book balance at the beginning of the year Contract liabilities Tibet Aosibixiu Pharmaceutical Co., Ltd. 88,141.59

Contract liabilities Hunan Maio Medical Technology Co., Ltd. 48,437.33

Contract liabilities Guangxi Investment Group Co., Ltd. and its subsidiaries 40,604.66 3,554.65 Other payables Guangxi Investment Group Co., Ltd. and its subsidiaries 958,128.55 1,685,753.52 Other payables Sichuan Laipuxin Medical Information Consulting Center (Limited Partnership) 900,399.00

4. Other related party transactions

Project name Related parties Book balance at the end of the year Book balance at the beginning of the year

Bank deposits Guangxi Beibu Gulf Bank Co., Ltd. 558,984,757.37 1,084,732,369.89

Note: The interest income from deposits deposited with Guangxi Beibu Gulf Bank Co., Ltd. this year was 26.3454 million yuan, including 1.3625 million yuan of unpaid cash income that the company has accrued to the bank.

13. Share-based payment

1. Overall situation of share-based payment

(1) Overall situation of Zhongheng Group’s share-based payment

The company held the 30th meeting of the ninth board of directors on September 24, 2021, and the fourth extraordinary shareholders' meeting of 2021 on December 8, 2021, and reviewed and approved the "Proposal on the <Guangxi Wuzhou Zhongheng Group Co., Ltd. 2021 Restricted Stock Incentive Plan (Draft)> and its Summary" and other related proposals.

According to the authorization of the company's fourth extraordinary general meeting of shareholders in 2021, the company's 35th meeting of the ninth board of directors held on January 27, 2022, reviewed and approved the "Proposal of Guangxi Wuzhou Zhongheng Group Co., Ltd. on the First Grant of Restricted Stocks to Incentive Objects" and other related proposals. The company will use January 27, 2022 as the first grant date, and grant awards to 218 eligible incentive objects at a grant price of 1.76 yuan/share. 36.375 million restricted shares.

On October 28, 2022, the company held the 45th meeting of the ninth board of directors and approved the "Proposal of Guangxi Wuzhou Zhongheng Group Co., Ltd. on Granting Reserved Restricted Stocks to Incentive Objects", granting 7.21 million restricted shares to 41 eligible incentive objects at a grant price of 1.42 yuan per share. The company set October 31, 2022 as the reserved grant date, and actually granted 7.15 million shares to 39 incentive targets (2 incentive targets voluntarily gave up due to personal reasons).

The performance assessment conditions for the restricted stocks granted by the company are that the economic added value and net profit from 2022 to 2024 will increase by a certain amount compared with 2020, and the cash dividends in each year will reach a certain proportion. After meeting these indicator conditions, they will be unlocked in three installments at the ratio of 33%, 33%, and 34% after 24 months, 36 months, and 48 months from the date of completion of registration.

Due to the inability to meet the performance assessment conditions, the company did not recognize corresponding share-based payment expenses during the reporting period and comparable periods. At the same time, because the company’s 2024 performance did not meet the relevant performance assessment conditions for the third lifting of the lock-up period, 204 people were encouraged to pay attention to the notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

As the company applied to withdraw from the restricted stock incentive plan due to personal reasons and 7 incentive targets no longer met the incentive conditions, the company repurchased and canceled a total of 11,065,300 restricted stocks that had been granted but had not been released from sale restrictions during this reporting period.

(2) Overall situation of Laimei Pharmaceutical’s share-based payment

According to the "Equity Transfer and Equity Incentive Agreement of Aijia Special Line Health Management Co., Ltd." signed by Laimei Pharmaceutical with Wang Xu and Tibet Tianen Enterprise Management Consulting Partnership (Limited Partnership) in February 2021, Laimei Pharmaceutical transferred Aijia Special Line with a registered capital of 50 million yuan in two installments at a consideration of 0 yuan. 30% of the equity was transferred to Tibet Tianen Enterprise Management Consulting Partnership (Limited Partnership) established by the managers of Aijia Line: for the first time, it was agreed to implement a 15% equity incentive after the agreement came into effect; for the second time, when the number of followers of the "i A Line" public account of Aijia Line exceeded 1 million for three consecutive months and its audited net profit in the most recent year exceeded 10 million yuan, a 15% equity incentive was implemented.

As of December 31, 2025, the company has invested a total of 45 million yuan, the first incentive has been completed, and the conditions for the second incentive have not yet been met.

2. Equity-settled share-based payment: None.

3. Share-based payment settled in cash: None.

4. Share-based payment expenses this year: None.

5. Termination or modification of share-based payment: None.

14. Commitments and contingencies

1. Important commitments

As of December 31, 2025, the Group has no important commitments that need to be disclosed.

2. Contingencies

As of December 31, 2025, the Group has no important contingencies that need to be disclosed.

15. Events after the balance sheet date

1. Profit distribution

The company held the 39th meeting of the tenth board of directors on March 29, 2026. In view of the fact that the company's net profit attributable to shareholders of listed companies in 2025 was negative, and taking into account the company's actual operating conditions, in order to ensure the company's long-term development and the long-term interests of shareholders. The profit distribution plan for 2025 is planned as follows: In addition to the share repurchases that have been implemented in 2025, it is planned not to distribute cash dividends or bonus shares in 2025, nor to convert capital reserve funds into share capital.

2. Description of other post-balance sheet events

None.

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

16. Other important matters

1. Correction and impact of previous errors

retrospective restatement

Correction of accounting errors Affected comparisons

Processing program Contents of cumulative impact number Period report item name

Consolidated operating income/

The company issued a special statement on the correction of errors in the previous period using the total amount method -166,062,304.05

Main business income

It is found that there is insufficient basis for identification, and the correction of the error has been approved by the directors of the company.

Consolidated operating costs/

The method of adjusting income to net amount will be reviewed and approved by the Council on March 20, 2026 -166,062,304.05 Main business costs

2. Segment information

(1) Determination basis and accounting policies of reporting segments

The Group's operating businesses are organized and managed separately based on the nature of the business and the products and services provided. Each operating segment of the Group is a business group that provides products and services that are subject to risks that are different from those of other operating segments and receive rewards that are different from those of other operating segments.

The classification and contents of the Group’s operating segments are as follows:

1. Pharmaceutical segment: its main business is the production and sales of pharmaceuticals;

2. Food segment: its main business is the production and sales of food;

3. Real estate segment: the main business is the operation and development of real estate;

4. Jahwa Division: Its main business is the production and sales of daily chemical products.

The management manages the operating results of each business unit separately for the purpose of decision-making to allocate resources and evaluate performance. Segment results are evaluated based on reported segment profits. This indicator is an adjusted indicator of total profit. Except for excluding interest income, financial expenses, dividend income, gains from changes in the fair value of financial instruments and headquarters expenses, this indicator is consistent with the total profit of the Group.

Segment assets do not include equity investments measured at fair value through current profits and losses, dividends receivable, interest receivable, other equity instruments, long-term equity investments, goodwill and other unallocated headquarters assets, because these assets are uniformly managed by the Group. Segment liabilities exclude borrowings and other unallocated head office liabilities as these liabilities are managed collectively by the Group.

Transfer pricing between segments is determined with reference to the prices used for transactions with third parties.

Note: Financial Statements Co., Ltd. Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Part of the annual report of Information Finance) 2 (

Total

offset

The amount has not been allocated

Partializer

Partially reported real estate

Some food reports

Partial reporting to pharmaceutical/pharmaceutical manufacturers

Project

year

year book

year

year book

year

year book

year

year book

year

year book

year

year book

year

year book

17.488,067,401,2

93.604,685,847,1

14.156,1

21.183,8

41.072,878,16

11.268,884,15

40.841,209,701

50.472,407,26

40.594,148,771

91.374,747,971

80.023,731,757,1

29.514,736,454,1

Income business external relations

Transaction room part

79.832,972,8

91.006,427,9

26.074,734

57.177,171

48.751,385,1

98.707,498,1

71.338,764

21.240,373,1

43.777,097,5

34.870,582,6

income

07.282,751,666

73.629,916,194

11.580,61

56.020,38

33.464,394,22

51.307,129,91

34.615,056,3

04.341,090,3

76.008,282,34

52.405,331,14

83.685,647,695

22.695,755,724

fee sales

03.167,291,001

16.023,633,301

60.241,249,71

77.128,329,72

30.086,467,93

27.304,017,36

83.334,568,1

01.444,525

44.265,366,3

71.000,276,3

00.181,285,9

65.527,599,9

15.640,952,36

38.865,653,35

income interest

09.896,864,95

18.898,123,46

60.241,249,71

39.181,362,82

67.110,306,71

18.567,396,53

96.441,589

87.775,272

40.365,263,1

84.841,688,1

74.121,064,75

76.885,237,45

Fees and interest

Enterprise-enterprise cooperation and enterprise-enterprise alliance

74.518,989,12-

22.548,701,71-

62.457,57

16.880,099,3-

26.855,810,2-

35.665,137,4

95.205,598,91-

63.005,928,52-

income investment

38.228,191,042-

83.341,402,042-

17.111,545,751

84.331,691,09

84.455,403

12.636,851,1-

87.568,999,43-

41.473,919,62-

72.741,691-

10.837,477-

55.252,557,74-

45.162,551,121-

Loss value minus assets

26.524,098,15-

30.269,119,47-

23.680,217-

74.911,330,1

59.849,753

42.188,263,3-

25.243,258,72-

14.729,605,92-

84.249,842,1

44.335,408

12.888,239,42-

92.608,978,34-

Loss value less credit

42.861,649,571

97.962,757,461

21.354,689,21-

94.861,768,5-

07.885,443,1

88.156,054,1

42.365,167,6

32.918,258,5

99.892,179,82

64.424,242,13

44.382,242,31

71.867,859,11

57.089,936,211

65.734,583,801

Amortization and depreciation

52.794,592,805- 57.367,560,725- 66.468,349,123 00.693,764,052 97.465,204,92 20.316,647,36 59.067,622,92- 68.705,677,72- 75.508,655,64- 71.125,737,16- 32.255,071,1 17.144,479,4 90.381,141,141- 54.393,508,552-

) Loss and loss (total profit 38.299,720,979,01 42.043,231,760,01 87.667,469,625,4 55.081,357,507,5 87.637,683,127,7 70.554,903,159,8 43.387,777,701 59.916,257,011 98.310,333,562,1 26.469,897,981,1 61.597,362,855 59.012,803,494 44.034,132,358,5 02.072,617,620,5

Total assets 17.795,282,464,3 48.875,061,323,3 42.011,125,519 67.827,145,931,1 46.957,212,049 28.275,601,846,1 45.504,151,03 46.073,277,95 49.703,947,561 42.073,172,141 21.435,979,891 48.328,258,921 17.007,017,440,3 60.071,996,384,2

The total debt liability and the period of foreign investment equity are 39.101,323,653- 93.356,104,971 36.453,589,761 35.131,735,294 99.589,057,81- 77.788,800,768 85.596,489,21- 71.983,181,4- 36.260,897,23- 58.248,992,14- 27.768,005,8- 35.564,263,4- 83.531,303,511- 03.504,622,541-

Additional increase in current assets and assets Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(3) Foreign transaction income information

1. Foreign transaction income of each type of products and services

Item Amount incurred this year Amount incurred last year

Cardiovascular and cerebrovascular diseases 272,130,911.66 380,483,905.67 Other pharmaceutical series 1,135,210,221.13 1,304,605,332.64 Commercial buildings and shops 39,756,489.08 85,347,056.84 Guiling paste series 156,714,059.84 144,911,479.44 Others 144,774,724.68 189,413,110.12 Total 1,748,586,406.39 2,104,760,884.71 2) Geographic information

Distribution of foreign transaction income

Item Amount incurred this year Amount incurred last year

Mainland China 1,742,633,131.77 2,099,448,719.50 Countries and regions outside mainland China 5,953,274.62 5,312,165.21 Total 1,748,586,406.39 2,104,760,884.71 3) Main customer information

The Group's customers are relatively scattered, and there is no single customer whose transactions with the Group exceed 10% of the total revenue.

3. Other important transactions and matters that have an impact on investors’ decision-making

None.

17. Notes on main items of the parent company’s financial statements

1. Accounts receivable

(1) Accounts receivable are presented based on aging

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Aging Book balance at the end of the year Book balance at the beginning of the year

Within 1 year 1,007,000.00 228,000.00 1-2 years 228,000.00

2-3 years

More than 3 years 180,000.10 180,000.10 Of which: 3-4 years

4-5 years

More than 5 years 180,000.10 180,000.10 Subtotal 1,415,000.10 408,000.10 Less: bad debt provision 192,069.00 180,000.10 Total 1,222,931.10 228,000.00

(2) Accounts receivable are classified and presented according to the bad debt accrual method

Year-end balance

Category Book balance Bad debt provision

book value

Amount Proportion (%) Amount Provision Proportion (%)

The individual provision for bad debts should be

Collect accounts

Total by combination of credit risk characteristics

1,415,000.10 100.00 192,069.00 13.57 1,222,931.10 Accounts receivable with provision for bad debts

Including: Aging combination 1,415,000.10 100.00 192,069.00 13.57 1,222,931.10Total 1,415,000.10 100.00 192,069.00 13.57 1,222,931.10

(continued table)

Beginning balance

Category Book balance Bad debt provision

book value

Amount Proportion (%) Amount Provision Proportion (%)

The individual provision for bad debts should be

Collect accounts

Total by combination of credit risk characteristics

408,000.10 100.00 180,000.10 44.12 228,000.00 Accounts receivable with provision for bad debts

Including: Aging combination 408,000.10 100.00 180,000.10 44.12 228,000.00 Total 408,000.10 100.00 180,000.10 44.12 228,000.00

1. Provision for bad debts based on aging combinations

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Year-end balance

Aging

Book balance Bad debt provision Provision ratio (%) Within 1 year 1,007,000.00 1,335.85 0.13 1-2 years 228,000.00 10,733.05 4.71 2-3 years

3-4 years

4-5 years

More than 5 years 180,000.10 180,000.10 100.00 Total 1,415,000.10 192,069.00 —

(3) Bad debt provisions accrued, recovered or reversed for accounts receivable this year

Amount of changes during the year

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Combined provision 180,000.10 12,068.90 192,069.00 Total 180,000.10 12,068.90 192,069.00

(4) Accounts receivable and contract assets with the top five year-end balances collected by debtors

This year, the top five accounts receivable with year-end balances collected by debtors amounted to RMB 1,345,000.00, accounting for 95.05% of the balance of accounts receivable. The corresponding aggregate amount of the year-end balance of bad debt provisions accrued was RMB 122,068.90.

2. Other receivables

Item Ending balance Beginning balance

interest receivable

Dividends receivable 40,391,896.65

Other receivables 361,209,406.29 483,950,590.95 Total 401,601,302.94 483,950,590.95

2.1 Dividends receivable

(1) Classification of dividends receivable

Investee balance at the end of the year balance at the beginning of the year

Guangxi Wuzhou Pharmaceutical (Group) Co., Ltd. 40,391,896.65

Total 40,391,896.65

(2) Important dividends receivable aged more than 1 year: None.

2.2 Other receivables

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(1) Other receivables are classified according to the nature of the payment

Nature of payment Book balance at the end of the year Book balance at the beginning of the year

Related parties in the consolidated statement 351,667,474.07 326,763,599.07 Transactions with non-related parties 75,646,865.34 75,422,534.37 Collection and payment 334,728.63 275,501.31 Security deposit 5,832.59 5,832.59 Asset disposal funds 135,878,680.00 Total 427,654,900.63 538,346,147.34

(2) Other receivables are listed based on aging

Aging Book balance at the end of the year Book balance at the beginning of the year

Within 1 year 225,926,387.93 306,986,692.41 1-2 years 393,257.77 15,948,228.08 2-3 years 15,903,228.08 48,189,904.63 More than 3 years 185,432,026.85 167,221,322.22 Of which: 3-4 years 18,189,904.63 131,710,922.67 4-5 years 131,710,922.67 5,352.03

More than 5 years 35,531,199.55 35,505,047.52 Subtotal 427,654,900.63 538,346,147.34 Less: bad debt provision 66,445,494.34 54,395,556.39 Total 361,209,406.29 483,950,590.95

(3) Other receivables are classified and presented according to the bad debt accrual method

Year-end balance

Book balance Bad debt provision

Kind

Provision Book value ratio

Amount Amount Ratio

(%)

(%)

Other items with single provision for bad debts

25,126,861.54 5.88 21,617,514.24 86.03 3,509,347.30 Accounts receivable

Provision based on combination of credit risk characteristics

402,528,039.09 94.12 44,827,980.10 11.14 357,700,058.99 Other receivables for bad debt provision

Among them: related parties within the scope of consolidation

351,667,474.07 82.23 351,667,474.07 Current accounts

asset disposal portfolio

Aging combination 50,520,003.80 11.81 44,827,980.10 88.73 5,692,023.70

Security deposit, reserve fund, etc. 340,561.22 0.08 340,561.22 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Year-end balance

Book balance Bad debt provision

Kind

Provision Book value ratio

Amount Amount Ratio

(%)

(%)

Total 427,654,900.63 100.00 66,445,494.34 -- 361,209,406.29

(continued table)

Beginning balance

Book balance Bad debt provision

Kind

Provision Book value ratio

Amount Amount Ratio

(%)

(%)

Other items with single provision for bad debts

23,610,228.62 4.39 12,213,257.06 51.73 11,396,971.56 Accounts receivable

Provision based on combination of credit risk characteristics

514,735,918.72 95.61 42,182,299.33 8.19 472,553,619.39 Other receivables for bad debt provision

Among them: related parties within the scope of consolidation

326,763,599.07 60.70 326,763,599.07 Current accounts

Asset disposal portfolio 135,878,680.00 25.24 1,033,119.47 0.76 134,845,560.53 Aging portfolio 51,812,305.75 9.62 41,149,179.86 79.42 10,663,125.89

Security deposit, reserve fund, etc. 281,333.90 0.05 281,333.90 Total 538,346,147.34 100.00 54,395,556.39 -- 483,950,590.95

1. Bad debt provisions are made individually for other receivables.

Ending balance Beginning balance

Name

Provision Provision for book balance Provision for bad debts Book balance Provision for bad debts

Ratio Reason Guangxi Wuzhou Ganghong Industrial Development Estimated revenue

18,097,428.62 14,588,081.32 80.61 18,097,428.62 6,700,457.06

Co., Ltd. Return to Difficulties

Estimated to be collected from Wuzhou Changzhou District Education Bureau 5,512,800.00 5,512,800.00 100.00 5,512,800.00 5,512,800.00

Return to Difficulty Wuzhou City Housing Provident Fund Management Estimated Revenue

1,065,428.66 1,065,428.66 100.00

Center-Housing Fund-House Renovation Payment Difficulty Wuzhou City Housing Provident Fund Management Estimated Revenue

451,204.26 451,204.26 100.00

Center-Maintenance Fund Total difficulties 25,126,861.54 21,617,514.24 — 23,610,228.62 12,213,257.06 —

2. Bad debt provisions are made for other receivables on a group basis.

A. In the portfolio, the aging analysis method is used to accrue bad debt provisions (aging portfolio)

Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

Year-end balance

Aging

Book balance Bad debt provision Proportion of provision (%) Within 1 year 688,264.30 196,520.14 28.55 1-2 years

2-3 years 15,807,800.00 10,607,520.46 67.10 3-4 years

4-5 years

More than 5 years 34,023,939.50 34,023,939.50 100.00 Total 50,520,003.80 44,827,980.10 —

3. Other receivables are provided with bad debt provisions in accordance with the general expected credit loss model.

The first stage The second stage The third stage

Provision for bad debts Expected for the entire duration Expected for the entire duration Total next 12 months

Credit losses (unissued Credit losses (issued

expected credit losses

resulting in credit impairment) resulting in credit impairment)

Balance on January 1, 2025 647,970.97 41,534,328.36 12,213,257.06 54,395,556.39 Balance on January 1, 2025

this year

--Transfer to the second stage

--Transfer to the third stage

--Return to the second stage

--Return to the first stage

Provision this year 196,520.14 4,998,913.02 9,404,257.18 14,599,690.34 Transfer this year 451,204.26 2,098,548.13 2,549,752.39 Write-off this year

Write off this year

Other changes

Balance on December 31, 2025 393,286.85 44,434,693.25 21,617,514.24 66,445,494.34

(4) Bad debt provisions for other receivables accrued, recovered or reversed this year

Amount of changes during the year

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Single provision 12,213,257.06 9,404,257.18 21,617,514.24 Combined provision 42,182,299.33 5,195,433.16 2,549,752.39 44,827,980.10Total 54,395,556.39 14,599,690.34 2,549,752.39 66,445,494.34 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

(5) Other receivables actually written off this year: None.

(6) Other receivables with the top five year-end balances collected by debtors

Account for other receivables

Balance at the end of the year. Name of the bad debt provision unit. Nature of the payment. Balance at the end of the year. Aging of the account.

Total year-end balance

Proportion (%)

Guangxi Wuzhou City Zhongheng Merger Scope

200,000,000.00 Within 1 year 46.77

Pharmaceutical Co., Ltd. Joint transactions

Guangxi Wuzhou Pharmaceutical

Consolidation scope

(Group) shares 126,328,200.00 2-5 years 29.54

Contacts between joint parties

Ltd.

Heilongjiang Dinghengsheng Medicine

Other current accounts 33,827,172.79 More than 5 years 7.91 33,827,172.79 Industrial Co., Ltd.

Guangxi Wuzhou Ganghongshi 3-4 years,

Other current accounts 18,175,040.42 4.25 14,665,693.12 Industry Development Co., Ltd. More than 5 years

Wuzhou City Land and Resources

Other current accounts 15,807,800.00 2-3 years 3.70 10,607,520.46 Reserve Center

Total — 394,138,213.21 — 92.17 59,100,386.37

3. Long-term equity investment

Year-end balance

Project

Book balance Impairment provision Book value Investment in subsidiaries 3,814,619,587.74 3,814,619,587.74 Investment in associates and joint ventures 63,205,133.29 4,000,000.00 59,205,133.29 Total 3,877,824,721.03 4,000,000.00 3,873,824,721.03

(continued table)

Beginning balance

Project

Book balance Impairment provision Book value Investment in subsidiaries 3,593,662,902.26 3,593,662,902.26 Investment in associates and joint ventures 214,563,780.17 4,000,000.00 210,563,780.17 Total 3,808,226,682.43 4,000,000.00 3,804,226,682.43 Note attached financial statements Group Heng Zhongzhou Wuxi Guang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

investment company

)1(

Changes, decreases and increases in yearly basis

Reserve value minus

Reserve value minus

The last year of Eyu

The first year of Eyu

unit investment

The last year of Eyu

Less provision

The first year of Eyu

Changeable Equity Rights Others

Investment reduction

investment increase

provision value

23.485,735,483,1

23.485,735,483,1

Co., Ltd.) Group (Pharmaceutical Manufacturing Co., Ltd., Wuxi Guangzhou

11.579,561,741,1

11.579,561,741,1

Co., Ltd. Co., Ltd. Pharmaceutical Meilai Qingchong

00.000,000,053

00.000,000,053

Co., Ltd. Venture Capital Kexin Yihengzhong

00.000,005,382

00.000,005,382

Co., Ltd. Industrial Health Qianshuang Xiguang

Enterprise-enterprise partnership, alloy fund investment industry, pharmaceutical and medical ethics, Hengzhong Ningnan

00.000,017,581

00.000,092,01

00.000,000,691

) Partnership Limited (

32.473,843,38

32.473,843,38

Co., Ltd., industrialist Shichita Nishihiro

00.000,000,06

00.000,000,06

Co., Ltd. Research Pharmaceutical Innovation Hengzhong Xiguang

00.000,000,63

00.000,000,63

Co., Ltd. Development Industrial Materials and Medicines Zhonghengzhong Xiguang

06.869,011,32

06.869,011,32

Pharmaceutical Co., Ltd. Hengzhong City, Wuxi Guangzhou

00.000,000,02 00.000,000,02 ) Partnership Limited (Enterprise Partnership) Investment Medical Hengzhong Heli Xiguang 00.000,000,01

00.000,000,01 Co., Ltd. (Lock-chain Pharmaceutical Yixin Heng Xiguang 84.586,670,371 84.586,665,051 00.000,015,22) Partnership Limited (Enterprise Partnership Joint Venture Suili Xiguang 00.000,071,87 00.000,071,87) Partnership Limited (Enterprise Partnership Investment Fude Xiguang 47.785,916,418,3 84.586,665,051 00.000,092,03 00.000,086,001 62.209,266,395,3 total notes attached financial statements Finance Company Co., Ltd. Hengzhongzhou Wuxiguang

Date 13 March 21, 5202 to January 1, 5202

) are shown in Yuan per capita, except for the special notes in the financial statements of the attached table (except for the special notes)

Capital investment enterprise joint venture, joint venture pair

)2(

Changes, decreases and increases in yearly basis

Reserve value minus

Reserve value minus

The last year of Eyu

Announcement is now released

The first year of Eyu

unit investment

The last year of Eyu

Less provision

Combined with other

Confirm legal rights

Reduce less

add chase

The first year of Eyu

Others

profit or dividend

Changeable Equity Rights Others

provision value

Adjustment income

profit and loss investment

investment

investment

Run

Enterprise-enterprise cooperation, one

Jianyaoyiheng Zhonghaiguo City Shenzhen

92.331,502,95

88.992,297-

71.334,799,95

Enterprise-enterprise partnership joint venture investment industry Chuangkang

) Partnership Limited (

92.331,502,95

88.992,297-

71.334,799,95

Ji Xiao

Enterprise enterprise alliance, two

District Park Industrial Model Exports to City Zhouwu

00.000,000,4

00.000,000,4

00.000,000,4

00.000,000,4

Development Co., Ltd.

Enterprise-enterprise partnership investment in Suili Xiguang 84.586,665,051- 84.833

00.743,665,051) Limited partnership (00.000,000,4 00.000,000,4

84.586,665,051- 84.833 00.000,000,4 00.743,665,451 Total 00.000,000,4 92.331,502,36

84.586,665,051- 04.169,197- 00.000,000,4 71.087,365,412

Total Notes to the Financial Statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

4. Operating income and operating costs

Amount incurred this year Amount incurred last year

Project

revenue cost revenue cost

Main business 3,175,741.61 3,009,155.01 3,446,349.88 2,840,279.73 Other businesses 2,869,351.12 1,329,092.03 3,515,068.64 1,224,802.35Total 6,045,092.73 4,338,247.04 6,961,418.52 4,065,082.08

5. Investment income

Items Amount incurred this year Amount incurred last year Income from long-term equity investments accounted for by equity method -791,961.40 -581,463.79 Investment income generated from disposal of long-term equity investments

Investment income from trading financial assets during the holding period

Investment income from disposal of trading financial assets 397.94 -22,675,471.45 Dividend income from other equity instrument investments during the holding period 10,310,111.44 11,292,026.82 Interest income from debt investments during the holding period

Interest income from other debt investments during the holding period 19,150,944.40 Investment income from other non-current financial assets during the holding period 28,387,999.09 42,466,044.64 Investment income from the disposal of other non-current financial assets 14,112,400.00 Dividends distributed by subsidiaries 40,491,896.65 40,391,896.65 Total 78,398,443.72 104,156,377.27 Notes to the financial statements of Guangxi Wuzhou Zhongheng Group Co., Ltd.

January 1, 2025 to December 31, 2025

(Unless otherwise specified, the notes to this financial statement are presented in RMB)

18. Supplementary information for financial statements

1. Detailed statement of non-recurring gains and losses for the year

Item Amount for the current year Description of profits and losses from the disposal of non-current assets (including the write-off of asset impairment provisions) -275,556.24 Government subsidies included in the current profits and losses (closely related to the company's normal operating business and in compliance with

Except for government subsidies of 14,057,184.96 stipulated by national policies, enjoyed according to determined standards, and having a continuous impact on the company's profits and losses)

In addition to effective hedging business related to the company's normal business operations, non-financial enterprises

Gains and losses from changes in fair value from holding financial assets and financial liabilities and gains and losses from disposal of financial assets and financial liabilities -95,817,786.53

Fund occupation fees charged to non-financial enterprises included in current profits and losses

Gains and losses from entrusting others to invest or manage assets 36,502,046.28 Gains and losses from external entrusted loans

Loss of various assets due to force majeure factors, such as natural disasters

The impairment provision for receivables that are separately tested for impairment is reversed 225,430.00. The investment cost of the enterprise in acquiring subsidiaries, associates and joint ventures is less than the investment cost.

shall enjoy the income generated from the fair value of the identifiable net assets of the investee

Net profit and loss for the current period from the beginning of the period to the date of merger of subsidiaries resulting from business mergers under common control

Gains and losses on non-monetary asset exchanges

Debt restructuring gains and losses

One-time expenses incurred by the enterprise due to the discontinuation of relevant business activities, such as placement of employees

expenses, etc.

One-time impact on current profits and losses due to adjustments to tax, accounting and other laws and regulations

One-time confirmation of share-based payment expenses due to cancellation or modification of equity incentive plan

For cash-settled share-based payment, after the vesting date, the amount of employee compensation payable shall be

Gains and losses arising from changes in fair value

Changes in the fair value of investment properties using the fair value model for subsequent measurement

profit and loss

Gains from transactions where the transaction price appears to be unfair

Profit and loss arising from contingencies unrelated to the company's normal business operations

Custody fee income from entrusted operations

Other non-operating income and expenses other than the above items -8,481,554.45 Other profit and loss items that meet the definition of non-recurring gains and losses 207,156.35 Subtotal -53,583,079.63 Less: Income tax impact 3,468,585.72

Impact on minority shareholders’ equity (after tax) -7,117,240.84 Total -49,934,424.51 — Used

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