Harbin Pharmaceutical Group Co., Ltd. Market Value Management System (September 2025)
Harbin Pharmaceutical Group Co., Ltd.
Market value management system
Chapter 1 General Provisions
Article 1 In order to strengthen and standardize the market value management of Harbin Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Company"), safeguard the legitimate rights and interests of the company's investors, enhance the company's investment value, and enhance investor returns, in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Measures for the Administration of Information Disclosure of Listed Companies, and the Supervision Guidelines for Listed Companies Article 10 No. - Market Value Management" and other laws, regulations and normative documents, this system is formulated in combination with the Articles of Association of Harbin Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Articles of Association") and the actual situation of the company.
Article 2 The term "market value management" as mentioned in this system refers to strategic management behaviors implemented to enhance the company's investment value and shareholder return capabilities based on improving the company's quality. The company should take high-quality sustainable development as its basis, focus on its main business, accelerate the cultivation of new productive forces, and promote the company's stable operation and continuous improvement of its intrinsic value.
Chapter 2 The Purpose and Basic Principles of Market Value Management
Article 3 The main purpose of market value management is to effectively and sustainably improve the company's development quality and intrinsic value by formulating scientific development strategies, improving corporate governance, improving business management, and cultivating core competitiveness, and guiding the company's market value and intrinsic value to converge through fully compliant information disclosure and investor relations management; through methods permitted by laws, regulations and regulatory agencies, enhance the company's market image and brand value, achieve the goal of maximizing the company's overall interests and increasing shareholder wealth, and obtain long-term market support.
Article 4 Basic Principles of Market Value Management
Systematic principle: The company follows the principles of systematic thinking and overall advancement, and coordinates the company's various business systems to continue to carry out market value management work in a systematic manner;
Scientific principle: The company should adopt a scientific and systematic way to manage according to the laws of market value management, scientifically study and judge the key factors that affect the company's investment value, and carry out market value management work based on improving the company's quality. The development of market value management work must not violate the inherent logic of market value management;
Compliance principle: The company carries out market value management work on the premise of strictly complying with relevant laws and regulations, normative documents, self-regulatory rules, and internal rules and regulations such as the "Articles of Association";
The principle of initiative: The company should pay attention to the dynamics of the capital market and the company's market value, proactively take measures, scientifically formulate market value management work plans, and proactively carry out market value management work;
Normalization principle: The company should be oriented towards long-term development, pay attention to the market's reflection of the company's value, and carry out market value management on a continuous and regular basis.
Chapter 3 Market Value Management Organization and Responsibilities
Article 5 Market value management work is led by the company’s board of directors and participated by the operating management, with the secretary of the board of directors being specifically responsible. The office of the company's board of directors is the executive agency for market value management work. The company's functional departments and subordinate companies should actively cooperate to provide support for the collection of production and operation, financial, market and other information, and jointly promote the construction and implementation of the company's market value management system.
Article 6 The responsibilities of market value management include:
The company's board of directors should attach great importance to the improvement of the company's quality, fully consider the interests and returns of investors in all major decisions and specific work; pay attention to the market's reflection of the company's value, promote the company's investment value to reasonably reflect the company's quality; and supervise the specific implementation of market value management work. The remuneration level of directors and senior managers should match market development, personal ability value and performance contribution, company sustainable development, etc.;
The chairman of the company leads the market value management work and supervises and implements the board of directors’ resolutions that enhance the company’s investment value;
Shareholders can boost market confidence by implementing shareholding increase plans in accordance with laws and regulations, voluntarily extending the share lock-up period, voluntarily terminating shareholding reduction plans, or promising not to reduce shareholdings. Companies should actively communicate with shareholders and guide shareholders to invest in the long term;
The company’s directors and senior managers should actively participate in various tasks to enhance the company’s investment value, and participate in performance briefings, investor communication meetings and other investor relations activities;
The secretary of the company's board of directors is specifically responsible for the daily work of market value management, establishing a smooth communication mechanism with investors, leading the company's board of directors office to continuously improve the transparency of information disclosure, strengthen the effectiveness of investor relations management, and participate in public opinion management;
The company's board of directors office should implement specific work related to information disclosure and investor relations management to ensure the transparency of market information; regularly monitor key indicators such as market value, price-to-earnings ratio, and price-to-book ratio.
Article 7 The company and its controlling shareholders, actual controllers, directors, senior managers, etc. shall effectively improve their awareness of compliance and shall not engage in the following behaviors in market value management:
Manipulate the company's information disclosure, mislead or deceive investors by controlling the pace of information disclosure, selectively disclosing information, disclosing false information, etc.;
Seek illegal benefits and disrupt the order of the capital market through insider trading, leaking inside information, manipulating stock prices, or cooperating with other entities to carry out manipulations;
Make predictions or commitments on the prices of company securities and derivatives;
Failure to implement share repurchase through a special repurchase account, and failure to implement share increase through the corresponding real-name account. Share increase and repurchase violates information disclosure or stock trading and other rules;
Directly or indirectly disclose confidential project information;
Other illegal activities that violate securities laws and regulations, affect the normal trading of the company's securities and their derivatives, and damage the interests of the company and the legitimate rights and interests of small and medium-sized investors.
Chapter 4 Main methods of market value management
Article 8: Refine and strengthen the main business. The company should focus on its main business and continuously enhance profitability and market influence, thereby effectively improving its market value management level.
Article 9: Practice sustainable development. The company should establish and improve a modern corporate governance system that is scientific, standardized, and efficient in operation, and improve the corporate governance mechanism. The company insists on integrating the concept throughout the development strategy and the entire production and operation chain, and continuously improves the level and positive influence of the environment, society and corporate governance.
Article 10 Actively implement mergers, acquisitions and reorganizations. Actively implement the development strategy, through a development path that combines endogenous and extensional development, and according to the company's strategic development plan and the company's actual needs, timely carry out mergers and acquisitions, optimize asset structure, strengthen the core competitiveness of the main business, exert industrial synergy, acquire key technologies and markets, thereby enhancing the company's quality and value. When necessary, by divesting departments, product lines, or individual assets that are not suitable for the company's long-term strategy, have no growth potential, or affect the company's overall business development, resources can be concentrated on business priorities, thereby enhancing the company's competitiveness, enabling a more effective allocation of corporate assets, and improving the quality of corporate assets and the market value of capital.
Article 11 Establish and improve a long-term incentive mechanism. According to the company's development stage and operating conditions, establish a long-term incentive mechanism, carry out equity incentives, employee stock ownership plans, etc. in a timely manner to strengthen the unity of the long-term interests of management, employees and the company, stimulate the initiative and enthusiasm of management and employees to enhance the company's value, jointly promote the company's development, and promote the company's market value management.
Article 12: Stable returns to shareholders. According to the company's development stage and operating conditions, formulate and disclose a medium- and long-term dividend plan to maintain the consistency, rationality and stability of the company's profit distribution policy, enhance the transparency of cash dividends, and appropriately increase the number and proportion of dividends when conditions permit, so that long-term investors have clear expectations, cultivate investors' long-term investment concepts for the company, and attract long-term investment funds.
Article 13: Implement standardized and active investor relations management.
Actively communicate with investors by convening shareholders’ meetings, performance briefings, exchange meetings with investment institutions and other activities to ensure investors have the opportunity to participate in on-site exchanges on the company’s operation and management;
Respond to investor inquiries via phone calls, visits, etc.;
Maintain regular contact with institutional investors, securities analysts and small and medium-sized investors through appropriate means; organize institutional briefings, online meetings, road shows and other activities to communicate with investors;
Carry out other work that is conducive to improving investor relations management.
Article 14 Information Disclosure. The company shall, in accordance with the requirements of laws, regulations and regulatory rules, promptly, fairly and effectively disclose all information or matters that may have a greater impact on the company's stock trading price, and ensure that the disclosed information is true, accurate, complete, concise, clear, easy to understand, and free of false records, misleading statements or major omissions. The company continues to improve the quality of information disclosure and voluntarily discloses information relevant to investors' value judgments and investment decisions.
Article 15 Share repurchase and shareholder increase. The company carries out share repurchases, shareholder increases, and senior management increases in a timely manner in accordance with laws and regulations, and conducts corresponding equity management based on changes in the market environment to avoid drastic fluctuations in stock prices, promote stable development of market value, and enhance investor confidence.
Article 16 In addition to the above methods, companies can also carry out market value management through other methods permitted by laws, regulations and regulatory rules.
Chapter 5 Public Opinion and Crisis Management
Article 17 The company should establish a public opinion monitoring and crisis management mechanism, regularly track and analyze the company's public opinion environment, and promptly discover hot spots of market and public opinion concern. If it is found that it may have a greater impact on investor decision-making or the company's stock trading, it should promptly report to the chairman of the company.
Article 18 The company should monitor key indicators such as market value, price-to-earnings ratio, and price-to-book ratio, and set reasonable early warning target values based on its own situation and industry level. Once the early warning value is triggered, it should report to the company's board of directors in a timely manner and take appropriate measures to actively maintain the company's market value.
Article 19 The company shall establish crisis management and reputation maintenance procedures. When the company encounters major litigation, major reorganization, is investigated and punished by relevant authorities, has significant fluctuations in performance, changes in stock trading, natural disasters and other crises or is expected to occur, the company shall initiate crisis management procedures and formulate effective crisis response plans to maintain the company's reputation and investor confidence.
Article 20 When a company’s stock price fluctuates continuously or significantly in the short term, the company shall actively take the following measures:
Immediately start the internal risk assessment process, and the board of directors office will work with relevant departments of the company to conduct a comprehensive investigation of internal and external factors that may cause stock price fluctuations;
Strengthen communication with investors, explain the company’s objective analysis of the reasons for stock price fluctuations and the countermeasures the company is taking through appropriate methods, actively convey the company’s value, and enhance investors’ confidence in the company’s development;
If the stock price fluctuation is caused by the market’s misunderstanding or uncertainty about certain information about the company, the company issues an announcement to clarify or explain and provide more information that helps investors understand the company’s status;
Other legal and compliant response measures.
Chapter 6 Supplementary Provisions
Article 21 Matters not covered by this system or inconsistent with relevant national laws, regulations, normative documents and the "Articles of Association" shall be followed in accordance with relevant national laws, regulations, normative documents, "Articles of Association" and other provisions.
Article 22 The company’s board of directors is responsible for interpreting this system.
Article 23 This system will take effect and be implemented from the date it is reviewed and approved by the company's board of directors.
Board of Directors of Harbin Pharmaceutical Group Co., Ltd.
September 26, 2025