Tasly 2025 Annual Report Summary

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

Company code: 600535 Company abbreviation: Tasly

Tasly Pharmaceutical Group Co., Ltd.

2025 Annual Report Summary

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

Section 1 Important Tips

1. The summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plans, investors should go to www.sse.com.cn to read the full text of the annual report carefully.

2. The company’s board of directors, directors and senior managers guarantee the authenticity, accuracy and completeness of the contents of the annual report and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability.

3. Absence of directors

Position of director who was not present Name of director who was absent Reason for absence of director Name of trustee

Director Wang Liang Work reason Wang Ke

4. KPMG Huazhen Accounting Firm (Special General Partnership) issued a standard unqualified audit report for the company.

5. The profit distribution plan for the reporting period or the plan for converting public reserve funds into share capital approved by the board of directors

As audited by KPMG Huazhen LLP (Special General Partnership), as of December 31, 2025, the ending distributable profit of the parent company of Tasly Pharmaceutical Group Co., Ltd. was RMB 7,184,300,431.81. The company plans to distribute profits in 2025 based on the total share capital registered on the equity registration date for implementing equity distribution. According to the proposal of the board of directors, it is planned to distribute a cash dividend of 1 yuan (tax included) to all shareholders for every 10 shares. As of December 31, 2025, the company's total share capital was 1,493,950,005.00 shares, and the total share capital participating in this equity distribution was 1,493,950,005 shares. Based on this calculation, a total cash dividend of RMB 149,395,000.5 (tax included) is proposed. The total amount of cash dividends distributed by the company this year, including the cash dividends distributed in the interim (half-year), is 463,124,501.55 yuan (tax included), accounting for 41.91% of the company's 2025 consolidated statement of net profits attributable to shareholders of listed companies.

As of the end of the reporting period, the parent company had unrecovered losses and its impact on the company’s dividends and other matters

□Applicable √Not applicable

Section 2 Basic Information of the Company

1. Company Profile

Company Stock Profile

Stock type Stock listing exchange Stock abbreviation Stock code Stock abbreviation before change

A shares Shanghai Stock Exchange Tasly 600535 -

Contact and Contact Information Board Secretary Securities Affairs Representative

Name Yu Jie Zhao Ying

Tasly, No. 2, Pujihe East Road, Beichen District, Tianjin Contact address of Tasly, No. 2, Pujihe East Road, Beichen District, Tianjin

Modern Chinese Medicine City Modern Chinese Medicine City

Telephone: 022-26736999, 022-26735302 022-26736999, 022-26735302

Fax 022-26736721 022-26736721

Email [email protected] [email protected]

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

2. Discussion and analysis of operating conditions

(1) Summary part

In March 2025, the actual controller of the company was changed to China Resources Co., Ltd., and Tasly officially became a member of China Resources Sanjiu, opening a new chapter in the company's development. On the basis of stable business, stable team, and stable core customers, and guided by "value reshaping, business reshaping, organizational reshaping, and spiritual reshaping", the company successfully completed the key work of 100-day integration and first-year integration, achieved efficient integration of resources between China Resources Sanjiu and Tasly, continued to show two-way empowerment effects, and successfully completed the integration work goals. During the reporting period, the company achieved operating income of RMB 8,236,477,400, of which the main business income of the pharmaceutical industry was RMB 7,381,624,100, a year-on-year decrease of 2.54%, which was basically stable, mainly affected by price reductions in centralized procurement and the decline in the traditional Chinese medicine injection industry; the operating income of chain drugstores in the pharmaceutical business was RMB 736,197,500, a year-on-year decrease of 10.39%, mainly due to the larger decline due to the impact of policies. The net profit attributable to shareholders of the listed company was 1,104.9619 million yuan, a year-on-year increase of 15.63%, laying a solid foundation for three years of integrated development.

1. Value Reshaping: Become a leading company in China’s pharmaceutical market driven by innovation

In 2025, the company conducted an in-depth study and judgment of the development trend of the pharmaceutical industry, benchmarked against leading pharmaceutical companies in the industry, and through multiple rounds of strategic discussions, determined the corporate mission of "creating health for everyone to share" and the corporate vision of "innovation-driven, becoming a leading company in the Chinese pharmaceutical market", and systematically formulated the "15th Five-Year Plan" strategic plan: During the "15th Five-Year Plan" period, the company will adhere to innovation-driven focus on the three cores of cardiovascular and metabolic, neurological/spiritual, and digestive. In the field of cardiac treatment, we continue to expand the pipeline of innovative products with high clinical value; by building a value cycle business model of "building foundations in the hospital and increasing efficiency outside the hospital", we focus on clinical value to promote the coordinated development and sustainable growth of in-hospital and out-of-hospital businesses; through both endogenous development and external expansion, the company strives to double its industrial operating income (to RMB 15 billion) and double its profits by the end of 2030, successfully ranking among the first echelon of Chinese pharmaceutical companies. In order to ensure the implementation of the strategy, the company will systematically implement nine strategic initiatives, systematically build eight core capabilities, and comprehensively consolidate five major organizational guarantees. Through management mechanisms such as business plans, management reports, and performance contracts, the company will conduct full-process monitoring and evaluation of the implementation of the strategic plan to ensure solid advancement of strategic goals and realization of value.

Forward-looking statements and expectations such as future plans, development goals, and strategic initiatives involved in the company's strategic planning do not constitute any substantive commitment by the company to investors. In view of the fact that the macroeconomic environment, business development situation, market competition pattern and company operating conditions may continue to change, the company may make appropriate adjustments to this plan based on policy adjustments, industry changes, competition patterns and actual operation and development needs. Investors are kindly requested to pay attention to investment risks.

2. Business reshaping: Promote multi-dimensional reshaping and integration of business to ensure the achievement of strategic goals

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

In the first year of integration, the company used business integration as the starting point to tap growth potential, used functional integration as the support to improve operational efficiency, realized value addition through business reshaping, continued to improve the company's operating efficiency and core competitiveness, and promoted the company to achieve quality, efficiency and high-quality development.

2.1 R&D innovation: Create an open innovation system driven by two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs

As a key force in R&D and innovation in China Resources Sanjiu's "One Body, Two Wings" strategic layout, Tasly has gained insight into the huge unmet clinical needs created by the aging population and the evolution of disease spectrum in the fields of cardiovascular and metabolic, neurological/psychiatric and digestive fields, as the country strongly supports the high-quality development of pharmaceutical innovation, promotes the modernization of traditional Chinese medicine, and encourages the research and development of advanced therapeutic drugs such as gene and cell therapy. Based on its own R&D advantages in modernizing traditional Chinese medicine and judging the future development path of technologies represented by cell therapy and small nucleic acid drugs, the company continues to focus on the three core treatment areas and has established an R&D strategy of "an open innovation system driven by two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs": On the one hand, by promoting the "all-round creation of modern traditional Chinese medicine" The construction of "National Key Laboratory" has accelerated the research and development process of innovative traditional Chinese medicines. 18 innovative traditional Chinese medicines are in clinical phase II, III and NDA stages. On the other hand, we are actively exploring innovative breakthroughs in advanced therapeutic drugs such as cell and gene therapy (CGT) and small nucleic acid drugs. Three CGT drugs are now in clinical phase I. The company has enhanced its core competitiveness through two-wheel drive and currently has 31 innovative drugs under research, including 4 in the NDA/PreNDA stage and 17 in clinical phase II and III.

In order to promote the efficient implementation of the R&D strategy, the company comprehensively launched the special action of the R&D "Renewal and Efficiency Plan". The R&D system continues to optimize the organizational structure and builds a three-tier scientific and technological innovation management system of "strategic decision-making - professional consultation - operational control": the Science and Technology Innovation Committee coordinates strategic direction and major decisions, the Science and Technology Innovation Consultation Committee strengthens professional judgment of project value, and the Science and Technology Innovation Project Management Committee is responsible for the daily operation control of R&D projects and rapid decision-making on early research projects; the company comprehensively upgrades the R&D project management system and optimizes management process, improve the "1+5+N" project management system, compress the decision-making chain through hierarchical authorization and parallel decision-making mechanisms, and continue to improve R&D efficiency; at the same time, the company further optimizes the R&D talent structure, focusing on the introduction of core talents in cutting-edge fields such as cell and gene therapy (CGT), small nucleic acid drugs, and clinical medicine, strengthens the construction of advanced therapeutic drug innovation platforms, and continuously consolidates R&D innovation capabilities.

2.2 Production quality: Build an excellent operational intelligent manufacturing platform that improves quality and efficiency

With the "Empowering Value Creation Production Headquarters" as the core, the company has built a large-scale production system with the production operation center as the overall coordinator and the quality center, technology center, centralized procurement center, EHS and other departments as functional supports to upgrade intelligent manufacturing technology, improve quality and lean management levels, and continue to reduce the cost of the entire industry chain. During the reporting period, the company achieved cost reduction and efficiency improvement from three aspects: the implementation of intelligent production scenarios, the construction of lean management system and the construction of EHSQ management system. In terms of innovative applications of smart manufacturing, the company promotes smart manufacturing technology research and smart factory gradient cultivation, steadily promotes the online operation of the enterprise quality management system (EQMS) and laboratory management system (LIMS), and systematically carries out smart manufacturing technology research projects covering the fields of traditional Chinese medicine granules, traditional Chinese medicine dropping pills, traditional Chinese medicine extraction, etc., and jointly with Tianjin University of Chinese Medicine successfully obtained the key special project of the national key research and development plan "Modernization of Traditional Chinese Medicine" - "With high quality,

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

"The research and development and application of green intelligent pharmaceutical unit equipment for traditional Chinese medicine oriented by high efficiency and energy-saving multi-objective optimization", high-quality undertaking of the annual construction tasks of provincial and ministerial level platforms and projects such as the National Key Laboratory of Modern Traditional Chinese Medicine Creation Qishenyiqi Dropping Pill New Quality Productivity Cultivation Project, and typical smart manufacturing practice cases of "Intelligent Manufacturing of Dropping Pills", "Intelligent Manufacturing of Granules" and "Domestic Substitution of Production Multivariable Modeling and Monitoring Software" have been highly recognized by the industry; the company The "Modern Traditional Chinese Medicine Full Industry Chain Collaborative Smart Factory" project has been recognized as an "Excellent Smart Factory" by the Ministry of Industry and Information Technology. The smart factory projects of the company's four subsidiaries, Modern Traditional Chinese Medicine, Tianzhijiao, Northeastern Modern Traditional Chinese Medicine, and Jiangsu Diyi, have been recognized as advanced smart factories in 2025 by the provincial Ministry of Industry and Information Technology, creating a benchmark in the smart manufacturing industry. In terms of management, the company promotes quality improvement, cost reduction, and efficiency improvement from multiple dimensions such as material management, process optimization, and equipment improvement. By optimizing the integration of supply chain planning, it achieves a dynamic balance that drives agile response, cost control, and risk prevention; the company implements the project to expand production and reduce costs of the high-speed dripping production line of compound salvia miltiorrhizae dripping pills, and through process reengineering and production process optimization, the company Shift and position production barriers eliminate non-value-added time and material waste, achieve batch expansion, and significantly improve production time utilization and equipment unit time production capacity; the company promotes the upgrading of Yangxue Xue Nao Pills excipient standards, effectively enhances the controllability of the production process and improves the yield of Yangxue Xue Nao Pills in EHSQ by accurately identifying and optimizing internal control indicators. In terms of green operations, the company has further improved the system construction, established a two-level committee working mechanism, continued to strengthen on-site risk management, hidden danger investigation and governance, and through special publicity and publicity, safety production month, safety production knowledge and management ability training and certification and other activities, enhance the professional knowledge and management skills of personnel, and effectively improve the operating efficiency of the EHSQ system. 2.3 Intelligent digital upgrade: Information system integration supports the intelligent development of the entire industry chain

In the first year of integration, the company focused on the core concepts of "planning, integration, empowerment, co-creation, and guarantee", continued to consolidate the foundation of intelligent digital construction, and steadily promoted intelligent digital integration and transformation. In terms of information system integration, the company has fully launched China Resources Group's unified human resources, finance (accounting, merger, treasury, taxation) and office (Run Work, Xinchuang mailbox, online meetings, etc.) related systems, and carried out in-depth "intelligence, simplicity and efficiency" process optimization. On the basis of ensuring the smooth and orderly operation of the business, it has achieved integration with the new organizational structure. Accurately match the structure and promote cross-department and cross-level data interconnection and efficient process collaboration; in terms of compliance control, the company strictly implements the control requirements of the State-owned Assets Supervision and Administration Commission, such as salary penetration and treasury management system, promotes the application of China Resources Group's electronic procurement bidding (Shou Zheng) platform, and improves governance through the dual drive of institutional specifications and system control Transparency and credibility, realize the visible operation of the whole process of funds, support the steady growth of business with financial resilience, and realize the coordinated improvement of compliance operations and operating efficiency; in terms of intelligent digital innovation, build an independent and controllable AI basic platform and unified data platform, and realize AI in all fields of research, production, sales, management and services on the premise of ensuring safety and compliance. Capability coverage and core data collection and management, through the establishment of an end-to-end AI empowerment system, continue to create high-value, highly reusable AI agents, promote R&D efficiency, intelligent manufacturing, precision marketing, process reengineering and management capabilities, use smart digital innovation to help improve quality and efficiency, and provide solid support for the intelligent development of the entire industry chain.

3. Organizational reshaping: Build a mechanism-driven, coordinated and efficient operation management and control organizational system

In order to ensure the full implementation of the company's strategy and integration goals, the company has enhanced the company's organizational support capabilities by establishing an organizational management and control model, optimizing the management structure, upgrading the rank and position system, and building a performance-oriented incentive system. On the first day of integration, the company party committee was established and the

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The Office of the Party Committee and the Office of the Discipline Inspection Commission have clarified the division of responsibilities of the leadership team and implemented the party's overall leadership; completed the reorganization of the board of directors, improved the efficiency of corporate governance, implemented the new "Company Law", abolished the board of supervisors, and established a governance structure with clear responsibilities, clear division of labor, and efficient collaboration. The company follows the organizational operation principles of "strategic leadership, customer orientation, parity of rights and responsibilities, efficient collaboration, controllable risks, and dynamic optimization", and has launched an organizational "renewal and efficiency plan" to comprehensively promote organizational reshaping: on the one hand, it has clarified the model of operational management and control, built an organizational structure of vertical group matrix management, and horizontal industrial chain collaboration, and based on this, it has adjusted the headquarters organizational structure to further clarify its responsibilities, definitions, and positions, business processes and job settings; on the other hand, the company has restructured the rank system to form a hierarchical and classified talent development system that can be promoted vertically and connected horizontally. It advocates a performance culture, improves performance management and incentive systems, promotes the effective decomposition and implementation of the company's performance goals, achieves full coverage of the rigid performance management system, and lays a solid organizational foundation for the company to achieve innovation-driven development and sustained performance growth.

4. Spiritual reshaping: realizing the two-way integration of China Resources’ red genes and Tasly’s creation of healthy culture

On the basis of inheriting Tasly's characteristic culture such as the flag-raising ceremony and "Star Avenue", based on the corporate mission of "creating health and sharing for everyone", we actively integrate China Resources' red genes and excellent culture, and carry out cross-enterprise party-building activities such as "July 1" themed party days and "Party Building + Culture" integration meetings to deeply embed party building in business operations, build a new organizational ecology of joint promotion and common progress, and promote the deep integration of red culture and corporate culture. It also continuously strengthens the compliance culture, determines the "four key points of compliance" and "three priorities" work principles, organizes and conducts multiple compliance trainings, actively practices the compliance culture concept of "compliance and discipline, integrity and self-discipline", and resolutely adheres to the bottom line and red line; at the same time, the company continues to improve the "big supervision" work system to achieve full-process supervision of key businesses, providing solid guarantee and strong support for the company's standardized operations and high-quality development.

(2) Operation status of main business areas

1. Research and development

The company actively responds to the national policy of encouraging R&D innovation. Under the guidance of the vision of "driven by innovation, becoming a leading enterprise in China's pharmaceutical market", the company focuses on the three core areas of cardiovascular and metabolism, nerves/psychiatry, and digestion, and continues to build an open innovation system driven by two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs. It conducts pipeline layout according to the two-tree model of "disease tree" and "product tree", and continuously improves R&D capabilities and R&D efficiency to ensure the implementation and achievement of the company's R&D strategy.

The company will invest 845 million yuan in R&D in 2025. As of now, it has 31 innovative drugs under development, including 4 in the NDA/PreNDA stage and 17 in clinical phase II and III. Recombinant human prourokinase for injection (Puyouke) was approved for the treatment of acute ischemic stroke in September 2025. As a new generation of specific thrombolytic drugs, the results of the Phase IIIc study fully prove the effectiveness and safety advantages of this product. The proportion of subjects with mRS score 0-1 90 days after treatment was 72.0% in the Puyouke group and 68.0% in the control alteplase group. 7%; and the incidence of all-cause mortality and intracranial hemorrhage in the Puyoc group was lower than that in the control group. The rate of symptomatic intracranial hemorrhage caused by Puyoc was only 0.3%, which was significantly lower than that of the traditional drug alteplase (1.3%) by more than 60% (p=0.021). research results

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The results were published in "Lancet Neurology" (IF: 46.5) and gave a cutting-edge report at the World Stroke Conference (WSC). The company has initiated a study to expand the use of Puyouke in patients within 24 hours of stroke onset.

1.1 Develop full-scale disease prevention and treatment integrated solutions around the three core disease areas of cardiovascular and metabolic, neurological/psychiatric, and digestive diseases, and actively promote the continuous optimization of the R&D pipeline

Based on the population change trends and evolving characteristics of the disease spectrum, the company systematically analyzed the market size and growth rate of prescription drugs in each segmented treatment field. Combining its own R&D technology advantages and commercialization foundation, the company determined the three major therapeutic areas of cardiovascular and metabolic, neurological/psychiatric, and digestive as the core R&D strategic directions, and laid out its R&D product pipeline based on the segmented diseases and technology development directions.

(1) Cardiovascular and metabolic fields: covering all aspects of cardiovascular disease prevention, treatment and rehabilitation, there are 11 new drugs under research and development. During the reporting period, Qingshu Granules Phase III completed the group selection and statistical analysis of all subjects, and has submitted PreNDA for communication. Qishen Yiqi Dropping Pills for the treatment of chronic heart failure with reduced ejection fraction Phase II completed the EOP2 communication meeting, received feedback from CDE, and is about to enter Phase III.

Focusing on the cardiovascular "disease tree", when heart failure and other conditions occur in the later stages of the disease, for patients with NYHA cardiac function class II-III, the company is promoting the expansion of heart failure indications of Qishen Yiqi Dropping Pills for chronic heart failure (qi deficiency and blood stasis syndrome). For patients with NYHA cardiac function class IV, the company has developed human umbilical cord mesenchymal cell injection for chronic heart failure caused by ischemic cardiomyopathy with indications for coronary artery bypass grafting (CABG). It has now entered Phase I clinical research.

The picture below shows the cardiovascular “disease tree” and product layout:

Focusing on the "product tree" of Qishen Yiqi Dropping Pills, the company continues to upgrade its manufacturing capabilities, interpret its mechanism of action, explore clinical value, research medicinal material resources, and comprehensively cultivate new product quality and productivity.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The following is the "product tree" of Qishen Yiqi Dropping Pills:

(2) Nervous/psychiatric field: Focusing on the neurological/psychiatric field, the company has rapidly deployed through independent research and development and product introduction. During the reporting period, 6 new drugs were developed.

Focusing on the "cerebrovascular" disease tree: In the early stage of stroke, Puyuk's indication for acute ischemic stroke was successfully approved; Puyuk's expanded use for patients within 24 hours of stroke onset is being explored; in the later stages of the onset of stroke, adipose mesenchymal cell injection has been deployed, and Phase I clinical research is underway.

The picture below shows the ischemic stroke “disease tree” and product layout:

Puyouke has established a controllable quality system and stable production capacity throughout the entire process, with the core indicator single-chain molecule ratio reaching 99.9%. Its specific selection of prourokinase (u-PA) channels and its non-binding characteristics with plasminogen activator inhibitor-1 (PAI-1) are the ideal

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The core innovations of high fibrinolytic specificity and low bleeding risk also make it possible to expand its use in the treatment of patients within 24 hours of stroke onset.

The following is the Puyouke "product tree":

In the field of insomnia, the self-developed Class 1.1 innovative traditional Chinese medicine Zaoren Ningxin Dropping Pills (Anshen Dropping Pills) has submitted a CDE supplementary opinion response during the CDE review; in the field of depression, the self-developed Class 1.1 innovative drug JS1-1-01 has completed EOP2 communication and started Phase IIb research.

(3) Digestive field: 6 new drugs were developed during the reporting period. For metabolic-associated steatohepatitis (MASH), the company has deployed recombinant human fibroblast growth factor 21 injection, and all subjects have been enrolled in clinical Ib. Aiming at early functional disorders of gastrointestinal diseases, Lianxia Xiaopi Granules for the treatment of functional dyspepsia and Changkang Granules for the treatment of diarrhea-predominant irritable bowel syndrome are both in phase III clinical trials. In view of the canceration in the late stages of digestive system diseases, the company has deployed PD-L1/VEGF dual antibodies to synergistically inhibit tumor growth, and has been successfully enrolled in Phase IIa clinical trials for solid tumor indications.

1.2 Continue to improve R&D efficiency and promote the launch of major products

The company insists on both research and development and introduction, promotes the launch of major products, accelerates the transformation of innovative results, and enriches the product pipeline in core areas. During the reporting period, Puyouke's indications for treating acute ischemic stroke and Wenjingtang Granules, a classic traditional Chinese medicine formula, were approved for marketing; Zaoren Ningxin Dropping Pills (Anshen Dropping Pills) has submitted a CDE supplementary opinion; PXT3003 has received a CDE supplementary opinion; Ambienwei Granules and Qingshu Granules submitted for PreNDA communication; JS1-1-01 submitted for EOP2 communication; Qiling Wenshen Xiaonang Granules are currently carrying out Phase II data statistics and are preparing to submit EOP2 communication; the Phase II clinical trial of Yangxuexue Naowan Pills for the treatment of mild to moderate Alzheimer's disease has completed all cases and continues clinical observation; adipose mesenchymal cell injection, dual-target CAR-T cell injection (P134 cell injection), and CMI2109 have obtained clinical approval and started Phase I clinical research.

Generic drugs torsemide injection and glucosamine sulfate capsules obtained drug registration approval; diltiazem hydrochloride for injection passed the consistency evaluation; dapagliflozin metformin extended-release tablets, desloratadine oral solution, cetirizine hydrochloride drops, measartan potassium tablets, valacyclovir hydrochloride tablets, and ticagliptin hydrobromide tablets were declared for production.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary The company’s key innovative product research and development progress is as follows:

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

TCM0012: During the CDE review, the CDE supplementary opinion reply has been submitted. This project is derived from the clinical experience of academician Zhang Boli, a master of traditional Chinese medicine, and is used to treat insomnia. It is aimed at improving insomnia patients' infrequent sleep and lack of deep sleep, as well as daytime dysfunction caused by insomnia. Phase III clinical trial results show that this product improves sleep quality, insomnia severity, daytime dysfunction, subjective sleep dimensions, etc. in patients with insomnia (heart, liver and blood deficiency syndrome) significantly better than the placebo group; and has good safety. There are no common adverse reactions such as drowsiness, dizziness, memory loss and other common chemical drugs in clinical practice, making up for the unmet clinical needs of chemical drugs.

PXT3003 (CMI1808): Obtained supplementary opinion from CDE. This product is the world's first and only drug for the treatment of peroneal muscular atrophy type 1A. It is an original combination drug based on the discovery and screening of network pharmacology mechanisms and the combination of three independent targets to exert a comprehensive regulatory effect. The results of the Phase III clinical trial showed that PXT3003 improved the ONLS (Overall Neurological Limitation Scale) score significantly better than the placebo group, and the difference between the groups was statistically significant (P=0.0257). And PXT3003 can significantly improve the leg symptoms and foot dorsiflexion strength of CMT1A, thereby improving the patient's balance and walking ability, reducing the patient's risk of falling, and improving the patient's quality of life. PXT3003 has good safety and controllable risks. The incidence of adverse reactions is similar to that in the placebo group, and the severity is grade 1 or 2. There are no grade 3 or above adverse reactions, serious adverse reactions or adverse reactions leading to withdrawal from the trial. Therefore, PXT3003 can significantly improve the degree of limitation of daily activities of CMT1A and fill the gap in the treatment of this rare disease.

TCM0117: Phase III has completed the degrouping and statistical analysis of all subjects, and has submitted PreNDA for communication. This product is a clinical prescription of Lu Zhizheng, a master of traditional Chinese medicine. It is used to treat primary acute gouty arthritis. It can quickly and effectively relieve joint redness, swelling and pain, and is safe. Based on clinical application experience, preliminary research results, and the pathogenesis and characteristics of the disease, the phase III clinical trial chose a 3-day medication duration. The changes in joint pain VAS scores from the baseline were recorded every 24 hours, and the 72-hour treatment parameters were used as the main efficacy indicators to verify the efficacy and characteristics of Qingshu Granules. Qingshu granules are expected to make up for the shortcomings of simple analgesia by chemical drugs and the adverse effects of colchicine damaging kidney function.

TCM2219: PreNDA communication has been submitted. Most of the Chinese patent medicines used to treat colds are mainly used to treat wind-heat colds. The amount of Chinese patent medicines for wind-cold colds is insufficient. This product is adapted from Gegen Decoction in "Treatise on Febrile Diseases" and is mainly used to treat wind-cold colds. It is mostly used in the first 3 days of colds, effectively improving the recovery rate of colds and shortening the course of the disease. It is the first traditional Chinese medicine Category 1.1 innovative drug in China to directly enter confirmatory clinical research using human experience as evidence under the "three combinations" review evidence system.

JS1-1-01 (CMI1203-01): Innovative chemical drugs - small molecule drugs, indicated for moderate to severe depression. EOP2 communication has been completed and phase IIb research has been initiated. This product is a new structure of serotonin-norepinephrine-dopamine triple reuptake inhibitors (SNDRIs) independently developed by the company. It can also promote the secretion of brain-derived neurotrophic factor (BDNF), thereby exerting an antidepressant effect.

PD-L1/VEGF (B1962): Enrolled in Phase IIa clinical trial for solid tumor indications. This product is a bispecific anti-programmed cell death ligand 1 (PD-L1) monoclonal immunoglobulin 1 (IgG1) and anti-vascular endothelial growth factor (VEGF) protein.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

Antibody fusion proteins. As a dual-antibody drug, it can simultaneously block the PD1/PD-L1 pathway and the VEGF/VEGFR pathway, increase lymphocyte infiltration in tumor tissue, reduce resistance to PD-1/PD-L1 antibodies, synergistically inhibit tumor growth, and enhance anti-tumor activity.

B1344: The U.S. Phase Ia clinical trial has been completed, and the domestic Phase Ib clinical trial has completed the enrollment of all subjects. FGF21 and its receptor are the latest metabolic regulators and targets in the current treatment field of metabolism-associated steatohepatitis (MASH). This product is a pegylated recombinant human fibroblast growth factor 21 mutant (PEG-rhmFGF21), which regulates glucose and lipid metabolism by targeting β-klotho protein and FGFR. Compared with similar products, B1344 has a longer half-life, slower metabolic elimination, and a wider safety window. The results of the Phase Ia clinical trial completed in the United States show that B1344 has good safety, no important safety risks related to the drug were observed, and no SAE (serious adverse event) and SUSAR (suspicious and unexpected serious adverse reaction) occurred. Research has proven that B1344 injection can regulate the body's glucose and lipid metabolism, reduce triglycerides, low-density lipoprotein cholesterol and insulin levels; increase high-density lipoprotein cholesterol and adiponectin levels; and has the potential to treat metabolically associated fatty liver disease (MAFLD) and even MASH.

B2278: Phase I clinical study is ongoing. This product is the first stromal cell drug to treat heart failure caused by ischemic cardiomyopathy accompanied by indications for CABG surgery. Preclinical studies have proven that B2278 injection can regulate the myocardial tissue microenvironment through paracrine effects, have a significant inhibitory effect on myocardial cell tissue damage in ischemic cardiomyopathy, increase animal cardiac function, promote vascular regeneration, and reduce myocardial apoptosis.

B2065: This drug was approved for clinical use in China on March 13, 2025. The indication is acute ischemic stroke, and it has now entered Phase I clinical trials. Preclinical test results show that the drug can synergize with vascular endothelial cells through cell homing mechanisms to activate vascular regeneration and functional repair of damaged brain tissue.

B2172: This drug is an autologous CAR-T product targeting CD44 and/or CD133. It was approved for clinical use on April 10, 2025. Its indication is recurrent glioblastoma. It has now entered Phase I clinical trials. It can specifically recognize and bind to mutually exclusive highly expressed antigen targets in primary and recurrent glioblastoma (GBM), effectively activate and extend the life of T cells, thereby killing tumor cells.

1.3 Build and integrate innovative technology platforms and strengthen R&D capacity building

The company adheres to the concept of "a research institute without walls", strengthens external cooperation, and comprehensively integrates advanced technological resources. On the one hand, the company is accelerating the research and development process of innovative traditional Chinese medicines by promoting the construction of a national key laboratory for modern traditional Chinese medicine creation. 18 innovative traditional Chinese medicines are in clinical phase II, III and NDA stages; on the other hand, the company focuses on the deployment of advanced therapeutic drugs such as CGT and small nucleic acids. Among them, adipose mesenchymal cell injection, dual-target CAR-T cell injection (P134 cell injection), and umbilical cord mesenchymal cell injection for the treatment of heart failure. A total of 3 CGT products have entered clinical phase I; 1 small nucleic acid has entered preclinical development.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The company has a complete system from preclinical research to clinical research, and has formed a highly educated and professional talent team. A key technology system for new product R&D and transformation covering the entire life cycle of innovative drugs has been constructed, and four core R&D capabilities have been formed: drugability verification and non-clinical research capabilities, clinical transformation capabilities in the academic research organization (ARO) model, international registration application capabilities, and integrated R&D (IPD) project management capabilities.

During the reporting period, the company was approved to have a national platform - "International Science and Technology Cooperation Base for Innovative Traditional Chinese Medicine Research and Development" and a provincial and ministerial platform - "Jiangsu Provincial Key Laboratory of Target Group and Original Drugs". Won 4 provincial and ministerial science and technology progress awards - "Creation and Application of Technology System for Discovery and Mechanism Analysis of Active Substances Related to the Efficacy of Traditional Chinese Medicine" won the first prize of Tianjin Science and Technology Progress Award; "Research and Development, Transformation and Application of Innovative Drugs for Brain Glioma" won the first prize of Beijing Technology Invention Award; "Innovation and Application of Traditional Chinese Medicine Resources Based on Metabolic Regulation and Synthetic Biology Strategies" won the first prize of the Science and Technology Award of the Chinese Society of Traditional Chinese Medicine; "Innovation and Key Technologies and Applications of Commonly Used Bulk Medicinal Germplasm Resources and Sustainable Development" won the first prize of the Ministry of Education's Scientific Research Outstanding Achievements Award.

2. Marketing

The company actively builds an integrated marketing system with academic drive and high clinical value transformation as the core, adheres to the implementation of the "big product" strategy, strengthens the whole process management of marketing, strengthens evidence-based medical research around core products such as Compound Danshen Dropping Pills, Qishen Yiqi Dropping Pills, Shuilinjia, Puyouke, Shaoma Zhikuo Granules, etc., and explores product incremental space by improving the market position of core products. At the same time, the company promotes in-depth development cooperation of core products, expands the market coverage of new products and potential products, and provides impetus for further increasing product market share. During the reporting period, the sales volume of the company's main product, Compound Danshen Dropping Pills, increased steadily, but revenue declined slightly due to price reductions in centralized procurement; products such as Qishen Yiqi Dropping Pills, Shuilinjia, Puyouke and Shaoma Zhizuo Granules maintained sustained growth; Salvia miltiorrhiza polyphenolic acid and Yiqi Fumai were affected by the decline in the traditional Chinese medicine injection industry, and revenue declined.

2.1 Medical market: Strengthen academic promotion and clinical value transformation, and increase product market access

The company has always promoted real-world research and evidence-based medical research with high quality, created more product clinical evidence chains, and leveraged academic platforms to continuously improve brand influence. During the reporting period, the company took the lead in promoting the publication of a number of academic results in authoritative international journals: the research results of the "Phase III Research Project on Indications of Compound Danshen Dropping Pills and Danditang Network" were accepted by the "World Journal of Diabetes". Upon publication, the product's clinical evidence support in the field of diabetic retinopathy will be further strengthened; the research results of PUMICE were published in the top international journal "Jama Neurology", reflecting The clinical value and research level of Puyouke in the neurological field; at the same time, the company takes national major projects as the starting point, and on the premise that visual impairment caused by diabetic retinopathy increases the burden on global public health, it promotes Compound Danshen Dropping Pills to participate in the major national scientific research project "Effectively Reduce the Annual Laser Treatment Rate of Diabetic Retinopathy"; in view of the current lack of independent research evidence for HFmrEF patients, the company promotes Qishen Yiqi Dropping Pills to participate in the randomized controlled study of major national special projects to reduce HFmrEF compound cardiovascular events. The continuous output of the academic results of the above scientific research projects has built a comprehensive product medical evidence matrix to provide more effective treatment options for clinical experts. In 2025, the company will actively promote

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The core products have entered the medication guidelines and expert consensus in the field of relevant disease treatment. During the reporting period, the company's 10 products entered 26 guidelines and consensus: Puyouke entered the "Guidelines for the Prevention and Treatment of Cerebrovascular Disease 2024 Edition" and "Guidelines for the Rational Medication and Comprehensive Management of Acute ST-Segment Elevation Myocardial Infarction in County Areas" and 4 other items; Compound Danshen Dropping Pills has been included in 5 items including "China Guidelines for the Prevention and Treatment of Diabetes (2024 Edition)" and "Guidelines for the Prevention and Treatment of Diabetic Retinopathy with Integrated Traditional Chinese and Western Medicine"; Shuilinjia has been included in the "Guidelines for the Primary Diagnosis, Treatment and Management of Metabolism-Related Fatty Liver Disease" (2025 Year)" and other 4 items; Jinghua Weikang capsules entered the "Guidelines for the Management of Chronic Atrophic Gastritis in the Elderly and Chronic Diseases" and other 4 items; Shaoma Zhiju Granules entered the "Expert Consensus on the Treatment of Tic Disorders in Children with Combined Traditional Chinese and Western Medicine (2024 Edition)" and 1 item; Yiqi Fumai The injection entered the "Expert Consensus on the Diagnosis and Treatment of Heart Failure with Preserved Ejection Fraction Integrated Traditional Chinese and Western Medicine" in 2 items; the salvia miltiorrhiza polyphenolic acid injection entered the "Chinese Expert Consensus on the Clinical Application of Injectable Salvia Polyphenolic Acid in the Treatment of Cerebral Infarction"; the Qishen Yiqi Dropping Pills entered the "Expert Consensus on the Diagnosis and Treatment of Heart Failure with Preserved Ejection Fraction by Traditional Chinese and Western Medicine" 1 item in the "China Comprehensive Management Guidelines for Cardiomyopathy 2025"; Yangxuexue Nao Granules entered 2 items in the "Guidelines for the Diagnosis and Treatment of Traditional Chinese Medicine for Carotid Stenosis (2024 Edition)"; Lai Hydrogen entered 2 items in the "National Guidelines for the Prevention, Treatment and Management of Primary Hypertension 2025 Edition".

The company's medical sector adheres to the core of "academic value delivery" and transforms high clinical value evidence into product sales growth through full-process marketing management. During the reporting period, the company strengthened academic promotion and established academic cooperation platforms in different fields to further enhance the influence of products and brands: Compound Danshen Dropping Pills promoted the full management of cardiovascular event chains and the concept of co-treatment of diabetes through academic activities such as "Heart Power" grassroots cardiovascular and cerebrovascular disease prevention and treatment, and promoted products from multiple angles and channels; Yangxue Brain Preparation participated in the "Headache" hosted by the Headache Branch of the Chinese Stroke Society "Pain Clinical Diagnosis and Treatment Capacity Improvement and Innovation Project" project to build a national, provincial and prefecture-level headache sub-specialty expert platform to realize the sinking of the grassroots market; Qishen Yiqi Dropping Pills relies on clinical application expert consensus lectures to build a high-standard regional academic platform to enhance the academic influence of the product in the target area; Shuilinjia has enhanced its influence in the field of fatty liver through the fatty liver training program of the Chinese Medical Doctor Association. The "Liver You Dao Run Jiayin" liver injury management quality improvement project effectively expands the promotion of product departments; Puyouke relies on the Chinese Stroke Society's "Melt·Enlighten New Life" stroke prevention and treatment capacity improvement and health promotion public welfare project to carry out a series of lectures and other academic activities around stroke prevention and treatment, improve the clinical diagnosis and treatment and standardized thrombolysis level of grassroots doctors, and strengthen the product influence. On the basis of focusing on strengthening the academic promotion of each product, the company has deeply cultivated the incremental market in the county area, seized the strategic opportunity of the "About Improving the Drug Linkage Management Mechanism at the Grassroots Level" jointly issued by six national departments, promoted the in-depth development of the linkage of the drug catalogs of the county medical community, and focused on strengthening the overall market In particular, the standardized management and data-based management of county-level terminals, through management measures such as new assessment plans and collaborative cooperation between the headquarters medical marketing department and theater marketing department, have effectively improved the operating quality of county-level head offices and grassroots terminals, and achieved core product sales growth and incremental market breakthroughs.

The company actively promotes business integration with China Resources Sanjiu. In order to give full play to Tasly's sales advantages in the cardiovascular and cerebrovascular fields, the company introduced Ruitongli for professional promotion. At the same time, leveraging China Resources Sanjiu's advantages in the orthopedic field, the company entrusted China Resources Sanjiu with the promotion of its product minofosate. At the same time, the company has also strengthened its strategic cooperation with China Resources Medical. The two parties have established a "third terminal" cooperation mechanism to solve daily problems.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

Snickers' terminal distribution problems in some markets jointly promote the deep coverage of the company's core products in broad markets such as primary medical institutions and private hospitals.

2.2 Retail market: focus on prescription acceptance and patient health management, and promote wider coverage of products

The company adheres to the combination of clinical value orientation and patient demand exploration, continues to innovate the pharmaceutical retail model, synergizes with China Resources Sanjiu's brand and channel advantages, increases the coverage of chain pharmacies and pharmaceutical business channels, integrates online and offline resources, and taps new growth momentum in the retail market. In 2025, the implementation of the "outpatient coordination" policy will put periodic pressure on the customer flow of traditional pharmacies. Against this background, the company insists on implementing a clinical value-oriented refined marketing strategy and building a differentiated promotion system for different target groups. In terms of product promotion, Compound Danshen Dropping Pills focuses on consolidating its status as a first-line traditional Chinese medicine for the prevention and treatment of diabetic retinopathy, and continues to promote the "Heartbeat Guardian" project. In conjunction with key nodes such as National Eye Care Day and World Heart Day, it collaborates with experts from top-level hospitals to carry out the "Bright Mind and Bright Eyes Action". Through public welfare screening, academic live broadcasts and case education, it strengthens the clinical understanding of "one drug with two effects" and improves Professional penetration rate in the sugar network market; Yangxuexuebrain preparations focus on brain health and sleep scenarios, deepen cross-border cooperation with smart wearable devices such as Xiaomi Sports Health, expand the penetration of content platforms such as Xiaohongshu and Bilibili, and accurately focus on young working people and brain health anxiety groups; Qishen Yiqi Dropping Pills focuses on the core demands of middle-aged and elderly people such as shortness of breath, fatigue, and improvement of heart function, and has been promoted through the "World Heart Day" campaign "Free Clinic", popular science dramas and community health education activities to consolidate its brand recognition among patients with heart disease caused by qi deficiency and blood stasis; Shuilinjia continues to create a professional public welfare brand image of "Guardian of the Liver", combining Douyin doctor science popularization, in-depth content of Bilibili and offline liver ultrasound testing services to build a closed loop of liver health management from patient education to professional services; Huoxiang Zhengqi Dropping Pills and Andrographolide With the "Creative Planet" project as the core, Diwan has carried out brand roadshows in colleges and universities, and has used diversified methods such as Xiaohongshu IP cooperation and music festival placement to increase brand popularity and scene association among Generation Z people; Tixin® Tadalafil tablets have systematically expanded the men's health market through in-depth operations in vertical men's communities, O2O platform screen domination plans and 520 and other node theme marketing. On the basis of attaching great importance to product promotion, the company also actively explores market growth in terms of channel construction and terminal empowerment: the company seizes the development opportunities of primary medical care, cooperates with China Resources Pharmaceutical Commercial to promote the development of primary clinics and the sinking of centralized purchasing varieties, and opens up new revenue growth paths by effectively expanding the terminal network; in the field of retail pharmacies, the company further deepens customer classification and refined management, focusing on national and regional leading chains, strengthening strategic synergy through customized dynamic sales plans, and increasing the coverage of chain pharmacies; online In the upper business field, the company continues to expand its instant retail business, deepens cooperation with O2O platforms such as Meituan and JD.com, and optimizes precise delivery models based on cities and categories; in the field of commercial cooperation, the company continues to empower core commercial customers through multiple projects such as the "Angel Star Ace Competition" and consolidate long-term partnerships. It also relies on the "Tianshi Journey - Kaijiang Action" to take advantage of the commercial network to deeply cover grassroots and private medical terminals, achieving balanced coverage and sustainable growth of all products in multiple terminals.

In the retail market, Tasly and China Resources Sanjiu continue to carry out in-depth cooperation in terms of brands and channels. During the reporting period, the company and China Resources Sanjiu jointly created 999® Andrographolide Dropping Pills, 999® Tankejing Dropping Pills and other products, and selected representative products to settle in Sanjiu

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

flagship store. With the help of China Resources Sanjiu Business Channel and retail chain (KA) platform, the company continued to deepen strategic cooperation with leading businesses and drugstore chains; during the reporting period, the company also carried out in-depth cooperation with China Resources Sanjiu in various aspects such as e-commerce team training and data sharing. 2.3 Chain drugstore sector: Upgrade the refined management system and proactively improve the quality of operations

In 2025, the company's chain segment will take the initiative to improve the quality of operations through a number of measures such as product management and operation management system upgrades, compliance and informatization construction, and organizational management and control optimization. During the reporting period, the company continued to promote the upgrade of the product management system and the operation management system. Through product layout planning, analysis and evaluation, and structural optimization, it created a product layout disk and continued to promote product structure adjustment. It focused on upgrading the entire chain of commercial procurement, sales, and inventory, established an efficient closed-loop sustainable management system, realized visual tracking of products, and used purchase management, operation management, and inventory management as business links to achieve operational penetration management. At the same time, the company closely followed the national policy requirements of "strict management of codes" and completed all traceability code system functions during the reporting period, realizing the compliance operation of all Tasly chain drugstores. In terms of organizational management and control, the company has sorted out personnel in functional support positions, tracked, optimized and adjusted the personnel structure of stores that have continued to lose money, and created a flat organizational structure management system by optimizing the organizational management and control model to improve operational management efficiency.

At the same time, the company's chain segment continues to work collaboratively with China Resources Sanjiu, leveraging the brand advantages of China Resources Sanjiu to enhance the industry competitiveness of chain drugstores; Liaoning Tasly Pharmacy Chain Co., Ltd. continues to promote collaborative work with China Resources Pharmaceutical Commercial and Pharmaceutical Logistics, creating efficient management models such as warehousing management and logistics distribution, effectively improving business efficiency.

3. Production

The company builds a large-scale production system headquarters with the "enabling value creation production headquarters" as the core, with the production operation center as the overall coordinator and multi-functional departments such as the quality center and technology center as the support. Through the horizontal and vertical department collaboration mechanism, the company coordinates superior resources and builds an intelligent manufacturing platform for excellent operations and value creation. It achieves cost reduction and efficiency improvement from the three aspects of production intelligent scenario implementation, lean project management and EHSQ management system, and continues to reduce the cost of the entire industry chain.

3.1 Create a benchmark for intelligent manufacturing innovation with technology as the core and digital intelligence as the guide

The company focuses on core areas such as product technology upgrading and intelligent manufacturing technology research, solidly promotes the implementation and application of intelligent scenarios, creates an innovation benchmark for traditional Chinese medicine intelligent manufacturing, and continuously improves production efficiency and core competitiveness. During the reporting period, in terms of digital system deployment, to provide core support for building typical scenarios of smart factories, the company built the group's integrated production digital operation platform and steadily promoted the deployment and implementation of the quality management system (EQMS) and laboratory information management system (LIMS). The EQMS system has completed the online operation of the joint-stock production base, Tianjin Modern Chinese Medicine and Northeast Modern Chinese Medicine, and the LIMS system has completed the online operation of the joint-stock production base, Tianzhijiao and Shengte. In terms of intelligent manufacturing technology research, the company has systematically carried out intelligent manufacturing technology research projects such as traditional Chinese medicine granules, traditional Chinese medicine dropping pills, and traditional Chinese medicine extraction. Together with Tianjin University of Traditional Chinese Medicine, it has successfully been approved by the National Key Research and Development Plan "Modernization of Traditional Chinese Medicine" as a key special project - "R&D and Application of Green Intelligent Pharmaceutical Unit Equipment for Traditional Chinese Medicine Oriented by Multi-Objective Optimization of High Quality, Efficiency, and Energy Saving", and jointly undertook the project's sub-project "Digital Intelligent Integration of Multi-Process Advanced Pharmaceutical Equipment for Traditional Chinese Medicine" with China Resources Sanjiu

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

"Key Technology and Production Line Demonstration Application"; high-quality undertaking of the annual construction tasks of provincial and ministerial level platforms and projects such as the National Key Laboratory of Modern Traditional Chinese Medicine Creation Qishen Yiqi Dropping Pills New Quality Productivity Cultivation Project. Typical smart manufacturing practice cases "Intelligent Manufacturing of Dropping Pills", "Intelligent Manufacturing of Granules" and "Domestic Substitution of Production Multivariable Modeling and Monitoring Software" were selected as recommended topics by China Resources Group and reported to the State-owned Assets Supervision and Administration Commission of the State Council as a "small incision to solve big problems" modern industrial chain construction practice case. In terms of smart factory gradient cultivation, the company has created typical smart manufacturing scenarios and continuously promoted the in-depth integration of smart manufacturing and manufacturing business. The "Modern Traditional Chinese Medicine Full Industry Chain Collaborative Smart Factory" project has been recognized as an "Excellent Smart Factory" by the Ministry of Industry and Information Technology and recognized by the Tianjin Municipal Bureau of Industry and Information Technology as the first batch of advanced smart factories in 2025. The "Modern Traditional Chinese Medicine Extraction Full-Process Digital Smart Factory" project carried out by the subsidiary Modern Chinese Medicine and the "Full-process Intelligent Sterile Preparation Manufacturing Smart Factory" project carried out by the subsidiary Tianzhijiao were recognized by the Tianjin Municipal Bureau of Industry and Information Technology for the second batch of advanced smart factories in 2025. The "Tasly Modern Modern Chinese Medicine" project carried out by the subsidiary Northeast Modern Chinese Medicine The "Chinese Medicine Extraction Smart Factory" project was recognized by the Liaoning Provincial Department of Industry and Information Technology as an advanced smart factory in Liaoning Province in 2025. The "Solid Preparation Smart Factory based on smart equipment and multi-system intelligent interconnection" project developed by the subsidiary Jiangsu Diyi was recognized by the Jiangsu Provincial Department of Industry and Information Technology as an advanced smart factory in Jiangsu Province in 2025. ; In addition, the company's self-developed intelligent manufacturing production line for compound salvia miltiorrhiza dropping pills has made new progress. The second intelligent packaging production line has completed production verification and was officially put into use. The second high-speed dripping line production line has completed factory acceptance testing and met pre-installation requirements on site. Through lean improvements in production digitization, it continues to build a high-speed dripping pill intelligent manufacturing demonstration factory.

3.2 Comprehensively enhance the core competitiveness of manufacturing and continuously and efficiently promote lean management

With lean cost reduction as its core, the company comprehensively strengthens product technology innovation and lean management of production operations, continues to deliver high-quality products and services, and builds a highly resilient and efficient manufacturing platform. In terms of product technology, the company has solidly promoted the technological upgrading and process optimization of already-marketed products, and continuously improved the core competitiveness and production efficiency of its products by focusing on technical research on key process links. During the reporting period, the company broke through the technical bottleneck of Jinghua oil extraction and transfer rate, improved the efficiency of raw material utilization, and ensured a stable supply of products; the company completed research on extending the validity period of Yangxue Nao granules (pills), extending the product shelf life from 36 months to 48 months, effectively enhancing the market adaptability of the product; the company continued to deepen the optimization of the production process of compound salvia miltiorrhiza dropping pills, and achieved both production safety and economic benefits through refined process control and process parameter optimization. In terms of production operations, the company promotes quality improvement, cost reduction and efficiency improvement from multiple dimensions such as material management, process optimization, equipment improvement, etc., and implements a high-speed dripping production line expansion and cost reduction project for compound salvia miltiorrhiza dropping pills. Through process reengineering and production process optimization, the company breaks through shift and position production barriers, eliminates non-value-added time and material waste, achieves batch expansion, and significantly improves production time utilization and equipment unit time production capacity; the company promotes nourishing serum The standards for excipients of Nao Pills have been upgraded. By accurately identifying and optimizing internal control indicators, the controllability of the production process has been effectively enhanced and the yield of Yangxue Xue Nao Pills has been improved. The company continues to promote the production cost control of Puyouke, effectively reducing energy consumption through energy-saving transformation of refrigerated water power units and intelligent group control optimization. At the same time, it has strengthened production control, strict process monitoring and standardized operations, ensuring stable yields from the source, and focusing on the continuous improvement of key technologies.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The yields of Youke's intermediate products and finished products have steadily increased. While deeply cultivating product technology and lean management, the company actively cooperates with the China Resources system to carry out collaborative cooperation, and achieves cost reduction and efficiency increase through the complementary advantages of internal and external resources. It cooperates with China Resources Power on the "light, storage and charging" integrated project to build an integrated energy system integrating photovoltaic power generation, electric energy storage and charging facilities. Through multi-energy The two-way interaction between complementarity and energy improves the consumption capacity of new energy and effectively reduces the comprehensive electricity cost; it also actively participates in activities such as the China Resources Sanjiu "Lean Ten Years" seminar and the "Benchmark Scenario Creation Competition" of the fourth "CR Sanjiu Skills Cup" skills competition to deepen business collaboration and linkage and continue to improve the level of lean management.

3.3 Build an EHSQ management system around "overall coordination, supervision and control, and support and empowerment"

The company's EHSQ system takes risk management and control as the core and cultural construction as the guarantee. It has established a two-level committee working mechanism and built a high-quality, green and safe production and manufacturing platform through the EHSQ management model of "overall coordination, supervision and control, and support and empowerment". In terms of quality management, the company adheres to the quality concept of "quality comes from top-level design, and standards lie in precise execution." It implements quality control throughout the entire life cycle of drugs, strengthens quality supervision in all aspects from raw material screening, production process control to finished product inspection, and builds a strong defense line for drug safety. During the reporting period, the company carried out annual risk management and control projects in each unit, strengthened on-site quality audits of suppliers, continued to strengthen entrusted and entrusted production management, promoted special quality management plans for traditional Chinese medicine pieces, and systematically improved internal and external risk prevention and control capabilities; at the same time, through the "Tasly Cup" EHSQ Elite Challenge, "Quality Month", the national "QC Group Results Presentation Competition" and other activities, it continued to create a quality culture atmosphere in which all employees participate and pursue excellence, and enhance the influence and penetration of quality culture. In terms of green safety management, the company adheres to the concepts of safe development, green and low carbon, strictly fulfills the main responsibilities of safety production and ecological environment protection, and continues to promote the standardized operation of environmental, occupational health and safety and energy management systems. The company and its subsidiaries Jiangsu Diyi and Northeast Modern Traditional Chinese Medicine have been rated as national green factories, and the level of green manufacturing has been steadily improved. During the reporting period, the company continued to strengthen on-site risk management and hidden danger investigation and management, improve employee professional capabilities and safety skills training system, and actively cultivate EHS culture through theme lectures, safety production month, Ankang Cup knowledge competition, safety management ability training certification and other activities, ensure the efficient operation of the management system, effectively build a strong safety and environmental protection line of defense, and provide a solid guarantee for the high-quality development of the enterprise.

(3) Company development strategy

In March 2025, Tasly officially joined China Resources Sanjiu, opening a new chapter of integrated development driven by innovation. The company adheres to the corporate mission of "creating health and sharing it for everyone" and takes "innovation-driven to become a leading company in the Chinese pharmaceutical market" as its vision. It adheres to the innovation-driven development strategy and focuses on the three core disease areas of cardiovascular and metabolic, neurological/psychiatric, and digestive diseases. It builds a value cycle business model through both endogenous development and external expansion. In terms of business model, the company has built an "in-hospital foundation" ", synergy outside the hospital and outside the hospital" value cycle system, through the development of innovative products with clear clinical value, and through the professional medical research and academic promotion system to consolidate the market foundation within the hospital, while undertaking the extension of in-hospital prescriptions through diversified channels such as DTP pharmacies, Internet hospitals and retail pharmacies, providing services around the entire life cycle of patients, forming a closed business loop of collaborative development within and outside the hospital. In order to promote the implementation of strategic goals, the company will focus on

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

Nine strategic initiatives (efficiency, innovation, cost reduction, academic, scale, online, BD, smart data, talent), continue to build eight core capabilities (medical insight and efficient transformation, high clinical value mining and academic promotion, terminal coverage, investment and BD, full industry chain cost control, professional academic brand building, intelligent digital application, rigid performance management), and by consolidating five major organizational guarantees (party building leadership, The "big supervision" system, organizational transformation and efficiency improvement, professional talent echelon, efficient collaboration, and performance incentives ("up and down" mechanism) promote the efficient implementation of strategic planning and continue to enhance the company's long-term competitiveness and high-quality development level.

(4) Business plan for 2026

1. R&D: Focus on improving R&D efficiency and innovation capabilities, and accelerating clinical research and achievement transformation

Facing the new journey of the "15th Five-Year Plan", the company adheres to the innovation drive and strives to build an open innovation system with two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs. On the one hand, it benchmarks against leading companies, continues to improve R&D efficiency, accelerates the launch of blockbuster products, and enriches product pipelines in core areas; on the other hand, it enhances R&D innovation capabilities, builds innovative traditional Chinese medicine and advanced therapeutic drug platforms, actively expands cutting-edge tracks such as CGT and small nucleic acids, and achieves breakthroughs in cutting-edge technological capabilities.

In terms of improving R&D efficiency: the company continues to focus on the three major disease areas, continues to optimize the R&D pipeline, accelerates clinical research and the transformation of results, and ensures the progress of ongoing research projects and the achievement of goals. Goals in the field of cardiovascular and metabolism: Qingshu Granules have been declared for production; Xiangju Rupining Capsules have completed all phase III trials; Qishen Yiqi Dropping Pills have increased indications for hypoplastic heart failure and accelerated phase III enrollment; Qiling Wenshenxiaonang Granules have obtained EOP2 opinions; Jia Shen Tablets has completed phase II data review meetings; B2278 human umbilical cord mesenchymal cell injection for the treatment of heart failure has accelerated phase I enrollment; ANGPTL3 small nucleic acid has applied for IND. Goals in the neurological/psychiatric field: Zaoren Ningxin Dropping Pills (Anshen Dropping Pills) and PXT3003 will be approved for marketing as soon as possible; the antidepressant JS1-1-01 will advance Phase IIb enrollment; Nourishing Blood Brain to increase AD indications will obtain EOP2 opinion; dual-target CAR-T cell injection will complete Phase I enrollment; adipose mesenchymal cell injection will accelerate Phase I enrollment; Puyouke will obtain clinical approval in the 4.5-24h time window for the treatment of acute ischemic stroke. Goals in the field of digestion: Lianxia Xiaopi Granules have completed the withdrawal of all cases in Phase III and locked the database; B1962 has completed the enrollment of subjects in the second phase of Phase IIa; B1344 has completed Phase Ib and started Phase II; Changkang Granules has accelerated the enrollment in Phase III; CMI2402 has obtained clinical approval. Targets in other therapeutic areas include applying for production of Antiwei Granules; completing the observation of all cases in Phase III of Chitongning Tablets and completing statistical analysis; accelerating the advancement of clinical Phase III studies of Susu Xiaoerzhike Granules and Sanhuang Jingshiming Pills; and completing the enrollment of Phase I subjects for CMI2109. (The R&D plan is a prediction based on current R&D progress and industry experience. Actual results may be affected by multiple factors such as clinical trial progress and approval policies, and are uncertain.)

In terms of improving R&D innovation capabilities: the company continues to deepen its layout around the "open innovation system driven by two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs". In the field of innovative traditional Chinese medicines, we will advance the scientific research tasks of national key laboratories and strengthen the screening and project establishment of innovative traditional Chinese medicines with high clinical value; focus on building key technologies for micro-dropping pill preparations of traditional Chinese medicines, complete appropriate variety planning, production platforms and integrated production and research teams, empower the research and development of innovative traditional Chinese medicines and the secondary development of large products, and consolidate the leading position of innovative traditional Chinese medicines. In the field of advanced therapeutic drugs, improve the technical capabilities of the entire chain of CGT industrialization. Focus on implementing the construction of a biological resource library, creating a gene editing platform, and a

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The station-based CMC R&D technology platform develops innovative drugs with high clinical value and international potential; at the same time, through independent research and development and cooperative research and development, we strengthen the construction of technical capabilities around small nucleic acids, peptides, and innovative small molecules, and strive to build small nucleic acid/peptide solid-phase synthesis capabilities, innovative transformations, and innovative formulation platform capabilities to achieve leapfrog development.

2. Marketing: Strengthen academic promotion and achieve revenue growth targets

In 2026, the company will closely integrate industry policy adjustments, disease spectrum evolution, treatment concept updates and digital intelligence development trends, focus on the two major directions of strengthening academic promotion and expanding product sales scale, with "medical leadership, academic drive, value transformation" as the core, implement a large product strategy, promote potential market expansion, and strive to achieve a good start in the first year of the "15th Five-Year Plan".

In terms of strengthening academic promotion: in the medical market, we will further clarify the clinical positioning and indication expansion direction of each core product, sort out the clinical data of core products, conduct real-world research on core products, actively promote the inclusion of products in diagnosis and treatment guidelines, and transform the medical value of products into market competitiveness; at the same time, the company will integrate academic resources, build provincial and municipal regional academic platforms, promote core products to cover more hospitals, and further enhance the academic voice of products in core fields. In the retail market, the company will build an exclusive academic system for retail channels, deepen strategic chain academic cooperation, and continue to implement clinical value-oriented professional brand promotion. The company will formulate differentiated marketing strategies based on the product life cycle, and will focus on increasing market share and expanding treatment boundaries for mature products such as Compound Danshen Dropping Pills. Compound Danshen Dropping Pills will be driven by the unique clinical value of "one drug with double effects". On the basis of consolidating the existing cardiovascular customer base, it will actively explore new customer resources in multiple fields. At the same time, it will systematically explain the key mechanism of improving microcirculation in the treatment of cardiovascular and metabolic related diseases. Relying on authoritative academic platforms such as the Chinese Medical Association, Compound Danshen Dropping Pills will be held. Online special academic conferences; cooperate with ophthalmology and endocrinology experts from top tertiary hospitals in the country to carry out diabetic retinopathy fundus screening and free clinic activities nationwide, effectively improve the market penetration and brand influence of Compound Danshen Dropping Pills in the field of diabetic retinopathy prevention and treatment, and build it into a first-line proprietary Chinese medicine for the treatment of diabetic retinopathy. For core products that are in the growth stage, such as Qishen Yiqi Dropping Pills, Puyouke, Shuilinjia, and Shao Ma Zhiju Granules, the company will integrate internal and external resources and enhance the market status of the products in their respective treatment fields through professional academic promotion, refined channel operation, and precise brand communication.

In terms of increasing product sales scale: the company will continue to implement the large variety strategy, promote the in-depth development of core products, and accelerate the market cultivation and incremental expansion of new products and potential products. In 2026, the company will actively increase the sales scale of core products in key provinces, strengthen the coverage of head terminals in counties, improve grassroots market coverage through grid management, deepen hierarchical target management, use sales progress as the starting point to strengthen process control and target achievement, increase the market share of core products in the field, and achieve continuous expansion of sales scale. volume; in the field of digital online marketing, the company will accelerate the construction of a digital marketing team, complete brand building covering all mainstream platforms, strengthen its capabilities in B2C, O2O, content marketing and other aspects, and strive to build a patient-centered digital marketing platform, carry out patient education and services, and achieve both online sales and user scale growth.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

In 2026, the company will further deepen its all-round collaboration with China Resources, focus on docking "in-depth marketing" projects, fully integrate the resource advantages of both parties in terms of products, channels, terminals and brands, establish a "third terminal" cooperation mechanism, and achieve the optimal allocation of omni-channel resources and continuous improvement of sales capabilities.

3. Production: Continue to optimize production efficiency and industrial chain costs, and comprehensively enhance manufacturing core competitiveness.

The company will take quality improvement, cost reduction and efficiency improvement as its core strategic goals, focus on the overall layout and overall optimization of production system resources, and focus on intelligent manufacturing upgrades, resilient supply, and resource efficiency improvement. It will strive to realize the entire industry chain and all factors to explore cost reduction space, continue to deliver high-quality products and services, and comprehensively enhance its core competitiveness.

In terms of innovative applications of smart manufacturing: In 2026, the company will closely adhere to the smart factory cultivation goals of the "15th Five-Year Plan" strategic plan, solidly promote the implementation and application of AI+ manufacturing scenarios, and accelerate the gradient development of smart factories. The company continues to promote the deployment of digital systems EQMS and LIMS, further improves the EQMS system functions of the headquarters production base, modern Chinese medicine and Northeastern modern Chinese medicine, promotes the launch of Jiangsu Diyi and Tasly Bio EQMS and LIMS systems, and consolidates the digital control of intelligent management. Digitalization foundation; the company coordinates and promotes intelligent manufacturing projects in each production unit, orderly carries out the construction and application of pilot-level, excellence-level and advanced-level smart factories, accelerates the construction of the second high-speed dripping production line of compound salvia miltiorrhiza dropping pills, and uses digital intelligence to empower technological capacity improvement and industrial transformation and upgrading.

In terms of lean management, the company will be guided by value creation and cost optimization, coordinate and promote multiple initiatives such as process technology upgrades, intelligent upgrades of production line equipment, optimization of production processes, and energy-saving and consumption-reducing green production, and continue to deepen lean management and control throughout the entire chain. In the field of product technology, the company will continue to promote the process improvement of marketed varieties, use technology optimization to empower quality upgrades and efficiency improvements, and systematically carry out key tasks such as product registration number management and revision of traditional Chinese medicine instructions to build solid technical support for efficiency improvement in all aspects of production and operation. In the field of production operations, the company will focus on the overall allocation of production resources to further clarify the core advantages and characteristics of each production unit. We will focus on promoting the lean improvement of the entire industry chain in terms of strategic reserves of medicinal materials, lean extraction and construction of high-speed packaging production lines for Yangxuebrao, optimizing business structure and layout, optimizing business structure and layout, and promoting the lean improvement of the entire industry chain in terms of the construction of high-speed packaging production lines. We will launch the process verification of the industrialization project of Puyouke 300L Process 2.0 (including room temperature preparations), and comprehensively lay a solid foundation for lean operations and high-quality development.

In terms of EHSQ and green operations, the company adheres to the concept of safety first, green and low carbon. In 2026, it will continue to improve the group EHSQ management system, build a responsibility system with comprehensive coverage, clear boundaries, consistent responsibilities and rights, and accurate assessment, and coordinate the coordinated development of quality management and green safety. In the field of quality management, the company will strengthen full-process risk management and control, carry out annual special risk, product risk and system operation risk management, and improve the standardization and scientific level of quality risk management and control; and actively promote the construction of quality culture, carry out key talent inventory and echelon training, hold quality month theme activities, and continue to improve quality management capabilities. In the field of green safety, the company will steadily promote the green factory certification of each business unit, focus on on-site safety risk prevention and control, carry out risk control measures sorting and effectiveness verification, and ensure that production and operations are compliant and controllable; it will further promote energy conservation and carbon reduction and standardized management of pollutants, strengthen solid waste disposal and resource utilization, continue to reduce environmental impact, and ensure green and safe operations.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

3.4 Intelligent digitalization: focus on improving AI capabilities in all fields and building an intelligent ecosystem for the entire industry chain

In 2026, the company will anchor its strategic development direction, continue to consolidate the basic digital platform, lay a solid foundation for intelligent digital transformation, systematically promote the application of AI agents, deeply empower scenarios such as R&D innovation, intelligent manufacturing, precision marketing and collaborative office, promote the deep integration of artificial intelligence and core business, realize business process reconstruction and management model upgrade, and comprehensively improve operational efficiency, decision-making level and refined management capabilities.

In terms of the foundation of intelligent digitalization: on the basis of consolidating the three technical cornerstones of servers, networks, and security, the company will continue to promote the construction of basic platforms, deepen the integration of systems and businesses, promote data interoperability, process docking, and capability sharing, eliminate information barriers, and create a new generation of intelligent digitalization engine with "domain control as the core and computing network as the basis" that integrates perception, decision-making, and optimization to achieve cross-link and cross-domain collaborative linkage. On this basis, the company plans to promote an inventory of the current digital status, systematically evaluate existing applications and infrastructure, steadily promote architecture optimization and platform reconstruction, build a stable, efficient, and scalable digital support system, provide a solid guarantee for the stable operation of the business, and inject continuous momentum into intelligent digital innovation.

In terms of AI capability building: The company will focus on core areas such as R&D, intelligent manufacturing, marketing, management and services, systematically sort out and plan AI application scenarios, follow the implementation path of "efficiency improvement-direction positioning-value creation", steadily promote the implementation of AI solutions, and fully empower the intelligent upgrade of business. In the field of R&D, the company will focus on promoting the construction of AI knowledge graphs, intelligent assisted writing and high-quality data sets, accelerating knowledge accumulation and innovation transformation, and improving R&D efficiency and source innovation capabilities. In the field of intelligent manufacturing, the company will widely introduce AI intelligent scenario applications around key links such as production technology, supply chain optimization, quality control, equipment management, safety, environmental protection, and energy management to continue to improve operating efficiency and effectively reduce operating costs. In the field of marketing, the company will strive to build a customer-centered intelligent marketing system, strengthen market insight and precise reach capabilities, improve marketing efficiency and compliance levels, and enhance brand competitiveness. In the field of management and services, the company will focus on scenarios such as collaborative office, human resources, finance and smart parks, using AI to optimize process experience and improve organizational synergy and overall operational efficiency.

Based on the above, the company's operating income growth rate in 2026 is expected to exceed the industry average, and operating performance is expected to achieve double-digit growth. This goal does not take into account the impact of possible investments, mergers and acquisitions, external environment and other unpredictable factors on the company's revenue. It also assumes that changes in the macroeconomic environment will not have a significant impact on the overall prosperity of the pharmaceutical industry. The implementation of pharmaceutical-related policies will not have a significant impact on the sales and prices of the company's core products. The implementation of centralized procurement and joint procurement is in line with expectations. The above business plan does not constitute the company's performance commitment to investors. Investors are advised to pay attention to investment risks.

3. Introduction to the company’s main business during the reporting period

(1) Industry conditions of the company during the reporting period

1. Industry development stage

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

In recent years, centralized drug procurement has been normalized and medical insurance payment reform has continued to deepen. Under the dual effects of policy promotion and market selection, the pharmaceutical industry has entered a high-quality development transformation period with innovation, quality and cost control as its core competitiveness. Data from the National Bureau of Statistics show that in 2025, industrial enterprises above designated size in the pharmaceutical manufacturing industry achieved operating income of 2.487 billion yuan, a year-on-year decrease of 1.2% from 2024; total profits were 349.0 billion yuan, a year-on-year increase of 2.7%, and the growth rate turned from negative to positive. This is mainly due to the effectiveness of enterprises in reducing costs and increasing efficiency, with operating costs falling simultaneously. At the same time, profits in high-tech subdivisions such as biopharmaceutical manufacturing and genetically engineered drugs have grown rapidly, becoming the core driving force for the industry's profit recovery. Looking into the future, the long-term growth logic of the pharmaceutical industry has not changed. With the aging of the population, the improvement of residents' health awareness, the continued empowerment of national pharmaceutical innovation policies, and the deep integration of biomedicine and new generation information technology, the pharmaceutical industry will gradually get rid of the impact of short-term fluctuations and usher in a new stage of high-quality development.

2. Industry cyclical characteristics

The rigid nature of medical and health demand makes the pharmaceutical industry highly anti-cyclical and generally does not fluctuate with macroeconomic fluctuations. At the same time, the pharmaceutical industry has no obvious regional characteristics, and the market demand and supply layout have national and universal characteristics. However, there are certain seasonal patterns in the pharmaceutical industry. In seasons when diseases are easy to induce epidemics, people's demand for medicine will increase.

3. The company’s industry status

The company takes "innovation-driven to become a leading enterprise in China's pharmaceutical market" as its corporate vision, adheres to an open innovation system driven by two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs, and continues to enhance its core competitiveness and industry influence. During the reporting period, the company has successively won honors such as "Top 100 Enterprises in Pharmaceutical Industry Operating Revenue" and "Top 50 Enterprises in Independent Innovation in the Pharmaceutical Industry" in the 2024-2025 pharmaceutical industry information statistics, "China Economic and Social Leading Biopharmaceutical Enterprises in 2025", "Top 100 Chinese Pharmaceutical Innovation Enterprises in 2025", and "Listed Companies with Outstanding Competition for Innovative Drugs". The industry status and comprehensive competitiveness continue to consolidate and improve; in the fields of sustainable development and social responsibility, the company was selected into the 2025 "Golden Lion" ESG Excellence Award Case - Tasly Biodiversity Protection Outstanding Case, 2025 Golden Bee CSR China List: ESG Competitiveness Model - New Natural Economy, 2025 People's Corporate Social Responsibility Case, 2025 Listed Company Sustainable Development Best Practice Case, "2024-2025 Most Respected Enterprise - Social Responsibility Pilot Enterprise", "Sunshine" Annual Outstanding ESG Enterprise, and set a benchmark in the pharmaceutical industry with high-quality sustainable development practices.

(2) Business conditions of the company during the reporting period

Tasly's industry is pharmaceutical manufacturing, and its main business is the research and development, production and sales of pharmaceuticals. The company takes "innovation-driven to become a leading enterprise in China's pharmaceutical market" as its corporate vision, adheres to the two-wheel drive of innovative traditional Chinese medicine and advanced therapeutic drugs, focuses on the three core areas of cardiovascular and metabolic, neurological/psychiatric, and digestion, and focuses on each pathophysiological link of disease occurrence and development. It is guided by clinical needs to create high-quality large varieties and layout product portfolios to comprehensively enhance its industry competitiveness in the pharmaceutical market.

1. Main business

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

The company's products on the market cover the three major disease areas of cardiovascular and metabolic, neurological/psychiatric, and digestive diseases, involving all aspects of prevention, treatment, and rehabilitation, covering a product portfolio of modern traditional Chinese medicine, biological medicine, and chemical medicine. The core products currently being mainly sold: Compound Danshen Dropping Pills can activate blood circulation and remove blood stasis, regulate qi and relieve pain, and are used for chest obstruction due to qi stagnation and blood stasis, coronary heart disease angina pectoris, etc., as well as stage I (mild), Stage II (moderate) non-proliferative diabetic retinopathy; Yangxueqingnao Pills (granules) can nourish the blood and calm the liver, activate blood circulation and unblock meridians, and improve headaches, insomnia, etc. caused by blood deficiency and liver hyperactivity; Qishen Yiqi Dropping Pills have the effect of nourishing qi and unblocking meridians, activating blood circulation and relieving pain, and is suitable for chest paralysis due to qi deficiency and blood stasis; Temozolomide capsules are used to treat tumors such as glioblastoma multiforme; beneficial for injection Qi Fumai (freeze-dried) is used for Qi and Yin deficiency syndromes such as coronary heart disease, exertional angina pectoris and chronic left ventricular insufficiency; Shuilinjia (silybin capsules) can stabilize liver cell membranes, remove reactive oxygen species and free radicals in liver cells, and is used for the recovery of abnormal liver function in acute and chronic hepatitis and fatty liver; recombinant human urokinase for injection (Puyouke) is mainly used for acute ST Intravenous thrombolytic treatment for patients with segment elevation myocardial infarction, and will be approved for acute ischemic stroke indications in September 2025.

Facing the future, the company continues to build an open innovation system driven by innovative traditional Chinese medicine and advanced therapeutic drugs, focusing on the three core areas of cardiovascular and metabolic, neurological/mental, and digestion. In terms of innovative traditional Chinese medicines, the company has accelerated the research and development process of innovative traditional Chinese medicines by promoting the construction of a national key laboratory for the creation of modern traditional Chinese medicines. In terms of advanced therapeutic drugs, the company has focused on the deployment of biological drugs such as CGT and antibody drugs. As of now, the company has 31 innovative drug projects.

2. Business model

During the reporting period, the company adopted a dual-business sales model: first, self-operated sales of industrial products, that is, the pharmaceutical industry business model; second, third-party product sales, that is, the pharmaceutical business model.

(1) Pharmaceutical industry business model

Procurement model: The company has a dedicated procurement department. Procurement methods include bidding procurement, competitive bidding procurement, inquiry procurement, negotiation procurement and direct procurement. By implementing strategic sourcing and centralized procurement, and formulating procurement strategies based on market conditions, we can exert the scale effect of centralized procurement, improve procurement efficiency, reduce procurement costs, prevent and control procurement risks, and meet the company's production, operation and product quality needs.

Production model: All products of the company and its production subsidiaries are produced in strict accordance with GMP specifications, production is determined by sales, and ERP is integrated throughout the supply chain. The planning department formulates production plans based on the annual sales forecast and monthly shipments of each product provided by the sales department, combined with the production capacity of each product; the production department coordinates and supervises the completion of the production plan, and at the same time strictly supervises and manages the production process, quality standards, hygiene regulations, etc. of the product. Each production workshop is responsible for the production management of specific products; the quality assurance department and the quality inspection department inspect and monitor the quality of raw materials, intermediate products, semi-finished products, and finished products in key production links during the entire production process.

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

Sales model: The company mainly adopts a distribution model and sells externally through its wholly-owned subsidiary Tianjin Tasly Pharmaceutical Commercial Co., Ltd., and has now formed a marketing network covering the national market. The sales system has a medical business department and a retail business department for professional operations, each of which is responsible for business expansion in the target market.

(2) Pharmaceutical business model

At present, the company's pharmaceutical business is mainly retail chain business. The retail chain business purchases drugs, medical devices, etc. from upstream pharmaceutical industry enterprises or pharmaceutical distribution companies, retails them to end consumers through online and offline channels, and obtains profits through the difference between purchase and sale prices. For offline business, the company currently operates chain pharmacies in Liaoning Province, Tianjin City, Shandong Province and other regions. The company also conducts online retail business. Pharmacy retail mainly sells over-the-counter drugs, supplemented by commonly used prescription drugs and medical devices, and also sells traditional Chinese medicine pieces, health foods, etc.

(3) Main performance drivers

The company's main performance drivers during the reporting period are as follows: 1. Based on its own R&D advantages in modernizing traditional Chinese medicine and judging the future development path of technologies represented by cell therapy and small nucleic acid drugs, the company continued to focus on the three core treatment areas and established an R&D strategy of "an open innovation system driven by two wheels of innovative traditional Chinese medicine and advanced therapeutic drugs"; 2. The company promoted the inclusion of many products in the "National Medical Insurance Catalog" and "National Drug Centralized Procurement" As well as various clinical guidelines and expert consensus, we actively promote the implementation of national medical insurance negotiation varieties and national drug centralized procurement varieties, strive to build an integrated marketing system driven by academics and with high clinical value conversion as the core, and comprehensively improve the coverage of end products at all levels; thirdly, the company builds a large-scale production system coordinated by the production operation center to upgrade intelligent manufacturing technology, improve quality and lean management levels, and continue to reduce the cost of the entire industry chain. For details, please refer to the “II. Discussion and Analysis of Operating Situations” in this section.

4. The company’s main accounting data and financial indicators

(1) Main accounting data and financial indicators in the past three years

Unit: Yuan Currency: RMB This year compared with the previous year

2025 2024 2023

Increase or decrease(%)

Total assets 15,339,719,707.15 14,976,295,362.69 2.43 16,714,285,093.86 belongs to listed companies

12,404,228,392.95 11,903,329,002.35 4.21 12,368,420,072.26 Shareholders’ net assets

Operating income 8,236,477,437.80 8,498,141,862.15 -3.08 8,674,014,165.05 Total profit 1,345,215,745.94 1,068,689,803.49 25.88 1,221,096,556.72 belongs to the listed company

1,104,961,925.73 955,586,168.91 15.63 1,071,072,344.77Shareholders’ net profit

Belong to listed companies

Shareholders’ deductions are not

791,345,927.46 1,035,706,322.69 -23.59 1,181,149,494.70 Net profit from regular gains and losses

Run

Generated from operating activities 1,424,751,577.02 2,014,559,042.35 -29.28 2,575,634,584.95

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

net cash flow

weighted average net worth

9.09 7.68 increased by 1.41 percentage points 8.75 yield (%)

Basic earnings per share (yuan

0.74 0.64 15.63 0.72/share)

Diluted earnings per share (yuan

0.74 0.64 15.63 0.72/share)

(2) Main accounting data by quarter during the reporting period

Unit: Yuan Currency: RMB First quarter Second quarter Third quarter Fourth quarter

(January to March) (April to June) (July to September) (October to December) Operating income 2,054,886,385.20 2,233,322,471.12 2,022,464,001.07 1,925,804,580.41 Attributable to listed companies

314,309,585.08 460,386,947.90 209,676,677.96 120,588,714.79 Shareholders’ net profit

Belong to listed companies

Shareholders’ deductions are not

236,221,871.98 403,826,592.63 189,146,034.96 -37,848,572.11 Net after ordinary gains and losses

profit

arising from business activities

-362,370,203.85 1,151,962,483.64 83,025,019.87 552,134,277.35 Net cash flow

Explanation of differences between quarterly data and disclosed periodic report data

□Applicable √Not applicable

5. Shareholder situation

(1) The total number of common shareholders, the total number of preference shareholders with restored voting rights, the total number of shareholders holding special voting shares at the end of the reporting period and the end of the month before the annual report is disclosed, and the top 10 shareholders

Unit: Total number of ordinary shareholders (households) as of the end of the reporting period 70,642 Total number of common shareholders (households) as of the end of the previous month before the date of disclosure of the annual report 70,236 Total number of preference shareholders (households) with voting rights restored as of the end of the reporting period - Total number of preference shareholders (households) with restored voting rights as of the end of the previous month before the date of disclosure of the annual report - Shareholding status of the top ten shareholders (excluding shares lent through refinancing)

Holds pledged, marked or frozen

Name of shareholder Shareholding ratio at the end of the reporting period Increase in number of shares held at the end of the period Restriction on sale conditions Shareholder (full name) Decrease (%) shares Nature and quantity of shares

Quantity of copies Status

China Resources Sanjiu Pharmaceutical Co., Ltd. State-owned Law

418,306,002 418,306,002 28.00 0 None 0

Co., Ltd. People

Domestic non-Tasly biopharmaceutical industry

-426,316,990 257,164,534 17.21 0 None 0 State-owned Law Group Co., Ltd.

Summary of the 2025 Annual Report of Rentian Shili Pharmaceutical Group Co., Ltd.

State-owned French New Investment Co., Ltd. 74,697,501 74,697,501 5.00 0 None 0

Hong Kong Securities Clearing Company Limited

14,745,246 41,819,604 2.80 0 None 0 Other divisions

Within the territory from Liu Shaoluan 330,000 14,813,965 0.99 0 None 0

Natural person within the territory from Chen Shihui 12,158,280 12,158,280 0.81 0 None 0

However, Agricultural Bank of China Co., Ltd.

Co., Ltd. - CSI 500

-1,629,583 11,058,549 0.74 0 None 0 Other easy-to-use open-ended index securities

investment fund

Domestic from Yang Wei 457,100 9,890,540 0.66 0 None 0

Bank of Shanghai Co., Ltd.

Division - Yinhua CSI Innovative Drugs

-1,165,660 9,060,064 0.61 0 None 0 Other industry trading open-end indexes

Digital securities investment funds

Domestic non-Suzhou Liansheng Chemical Co., Ltd.

641,000 7,025,300 0.47 0 None 0 State-owned Law Department

Explanation of the relationship or concerted actions of the above-mentioned shareholders None

Preferred shareholders with restored voting rights and number of shares held

None

description

(2) Block diagram of the property rights and control relationship between the company and its controlling shareholder

√Applicable □Not applicable

(3) Block diagram of the property rights and control relationship between the company and the actual controller

√Applicable □Not applicable

Tasly Pharmaceutical Group Co., Ltd. 2025 Annual Report Summary

(4) The total number of preferred shareholders of the company and the top 10 shareholders at the end of the reporting period

□Applicable √Not applicable

6. Corporate Bonds

□Applicable √Not applicable

Section 3 Important Matters

1. The company shall, in accordance with the principle of materiality, disclose major changes in the company's operating conditions during the reporting period, as well as events that occurred during the reporting period that have a significant impact on the company's operating conditions and are expected to have a significant impact in the future.

In 2025, the company's pharmaceutical industry revenue decreased by 2.54% compared with the same period last year; net profit attributable to shareholders increased by 15.63% compared with the same period last year, mainly due to the increase in the fair value of the financial assets invested; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses decreased by 23.59% compared with the same period last year, mainly due to the decline in gross profit caused by price reductions in centralized procurement.

2. If there is a delisting risk warning or listing termination after the company's annual report is disclosed, the reasons that led to the delisting risk warning or listing termination should be disclosed.

□Applicable √Not applicable