/Annual deposit, management and actual use of raised funds assurance report

NEWS

Annual deposit, management and actual use of raised funds assurance report

Shanghai Stock Exchange

2026/04/14

1. Restrictions on report users and purpose of use

This assurance report is only used for the disclosure of Fuyuan Pharmaceutical Company's annual report and may not be used for any other purpose. We agree to use this assurance report as a necessary document for the annual report of Fuyuan Pharmaceutical Company, and submit it together with other documents and disclose it to the public.

2. Management Responsibilities

The responsibility of the management of Fuyuan Pharmaceutical Company is to provide true, legal and complete relevant information, in accordance with the "Supervision Rules for Fund Raising by Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Shanghai Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standardized Operations (Revised in May 2025)" (Shanghai Securities Regulatory Commission [2025] 68), prepare a "Special Report on the Annual Deposit, Management and Actual Use of Raised Funds" and ensure that its content is true, accurate and complete, and does not contain false records, misleading statements or major omissions.

3. Responsibilities of Certified Public Accountants

Our responsibility is to independently provide assurance conclusions on the above-mentioned report prepared by the management of Fuyuan Pharmaceutical Company based on the implementation of assurance work.

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4. Work Overview

We performed the assurance business in accordance with the Chinese Professional Standards for Certified Public Accountants. The Practice Standards for Certified Public Accountants in China require us to plan and implement assurance work to obtain reasonable assurance as to whether the information subject to assurance does not contain material misstatements. During the attestation process, we implemented procedures we considered necessary, including verification of accounting records. We believe that our assurance work provides a reasonable basis for our opinion.

5. Assurance conclusion

We believe that the 2025 "Special Report on the Annual Deposit, Management and Actual Use of Raised Funds" prepared by the management of Fuyuan Pharmaceutical Company complies with the "Supervisory Rules for Raised Funds by Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Shanghai Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standardized Operations (May 2025)" The regulations of "Monthly Revision" (Shanghai Securities Fa [2025] No. 68) truthfully reflect the actual storage, management and actual use of funds raised by Fuyuan Pharmaceutical Company in 2025.

Tianjian Certified Public Accountants (Special General Partnership) Chinese Certified Public Accountant:

Hangzhou, China Chinese Certified Public Accountant:

April 10, 2026

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Beijing Fuyuan Pharmaceutical Co., Ltd.

Special report on the annual storage, management and actual use of raised funds

In accordance with the provisions of the "Supervision Rules for Funds Raised by Listed Companies" (China Securities Regulatory Commission Announcement [2025] No. 10) and the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations (Revised in May 2025)" (Shanghai Securities Regulatory Commission [2025] No. 68), a special description of the storage, management and actual use of the company's raised funds in 2025 is as follows.

1. Basic situation of raised funds

(1) Actual amount of funds raised and time of fund arrival

According to the China Securities Regulatory Commission's "Approval of the Initial Public Offering of Shares by Beijing Fuyuan Pharmaceutical Co., Ltd." (CSRC Permit [2022] No. 974), the company's lead underwriter, CITIC Securities Co., Ltd., adopts an issuance method that combines offline inquiry and placement to qualified investors and online pricing and issuance to public investors holding non-restricted A-shares or the market value of non-restricted depositary receipts in the Shanghai market. The public issuance of 120 million RMB ordinary shares (A shares) at an issue price of RMB 14.62 per share, raising a total of RMB 1,754.4 million in funds and deducting underwriting fees of RMB 8,49 The raised funds after 5,700 yuan (excluding tax) were 1,669,494,300 yuan, which had been remitted to the company’s raised funds supervision account by the lead underwriter, CITIC Securities Co., Ltd. on June 27, 2022. After deducting 33.5745 million yuan (excluding tax) of new external expenses directly related to the issuance of equity securities such as online issuance fees, prospectus printing fees, reporting accountant fees, lawyer fees, sponsorship fees, etc., the company's net raised funds this time was 1.6359198 million yuan. The above-mentioned receipt of funds raised has been verified by Tianjian Accounting Firm (Special General Partnership), which issued a "Capital Verification Report" (Tianjianyan [2022] No. 315).

(2) Basic information on raised funds

Unit of amount: RMB 10,000 Issuance name Initial public offering of shares in 2022

The time for receipt of raised funds is June 27, 2022

This reporting period is from January 1, 2025 to December 31, 2025

Project amount

Total funds raised 175,440.00

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Including: Amount of excess funds raised

Less: Direct payment of issuance expenses 11,848.02

Net raised funds 163,591.98 minus:

Amount used in previous years 87,721.12 Amount used this year 31,496.02 Replenishment amount 19,891.98 Balance amount to replenish working capital 17,136.34 Cash management amount - structured deposits and large certificates of deposit, etc.

10,000.00 income from financial products

Add:

Interest income from raised funds 4,548.50 Income from financial products such as structured deposits and certificates of deposit 2,945.04

Balance of raised funds at the end of the reporting period 4,840.06

2. Management of raised funds

(1) Management of raised funds

In order to standardize the management and use of raised funds, improve the efficiency and effectiveness of fund use, and protect the rights and interests of investors, the company complies with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Supervisory Rules for Funds Raised by Listed Companies (China Securities Regulatory Commission Announcement [2025] No. 10) and the Shanghai Stock Exchange Listed Company Law. In accordance with the provisions of relevant laws, regulations and normative documents such as the Company's Self-Regulatory Guidelines No. 1 - Standardized Operations (Revised in May 2025) (Shanghai Securities Fa [2025] No. 68), and based on the actual situation of the company, the "Beijing Fuyuan Pharmaceutical Co., Ltd. Raised Funds Management System" (hereinafter referred to as the "Management System") was formulated. According to the "Management System", the company implements a special account for depositing raised funds, establishes a special account for raised funds in a bank, and together with the sponsor China Securities Co., Ltd., signed a "Tripartite Supervision Agreement for Special Account Deposit of Raised Funds" with China CITIC Bank Co., Ltd. Beijing Branch and China Minsheng Banking Co., Ltd. Hangzhou Branch respectively on June 28, 2022, which clarifies the rights and obligations of all parties. There are no major differences between the three-party supervision agreement and the Shanghai Stock Exchange's three-party supervision agreement template, and the company has strictly complied with it when using the raised funds.

(2) Storage of raised funds

As of December 31, 2025, the company has 2 special accounts for raised funds. The deposit status of raised funds is as follows: Amount unit: RMB 10,000

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Issue Name 2022 Initial Public Offering of Shares

The time for receipt of raised funds is June 27, 2022

Account name Opening bank Bank account number Closing balance Account status

China CITIC Bank Co., Ltd.

Fuyuan Pharmaceutical Company 8110701013602316664 1,080.04 Use Zhongsi Beijing Tongzhou Branch

China Minsheng Banking Co., Ltd.

Fuyuan Pharmaceutical Co., Ltd. 646177771 3,760.02 Hangzhou Branch of Use China Co., Ltd.

Total 4,840.06

3. Actual use of funds raised this year

(1) Usage of raised funds for investment projects

For a comparison table on the use of raised funds, please see Appendix 1 of this report.
Explanation of abnormal situations in investment projects with raised funds

There were no abnormal situations in the investment projects raised by the Company.

Explanation of situations where the benefits of investment projects with raised funds cannot be separately calculated

There is no situation in which the benefits of investment projects with raised funds cannot be separately calculated by the Company.

(2) Advance investment and replacement of investment projects

Unit of amount: RMB 10,000 Issuance name Initial public offering of shares in 2022

The time for receipt of raised funds is June 27, 2022

self-financing

Raised funds, replacement completed, total investment amount reviewed by the board of directors, advance investment, replacement amount

Investment Project Date Passed Date

Amount

Industrialization of high-precision drugs

93,184.00 349.01 349.01 2022/12/22 2022/8/24 Construction Project (Phase I)

Innovative and generic drug research and development

50,668.40 3,222.60 3,222.60 2022/12/22 2022/8/24 project

Supplementary working capital 30,000.00

Total 173,852.40 3,571.61 3,571.61

On August 24, 2022, the second meeting of the company's second board of directors and the second meeting of the second board of supervisors reviewed and approved the "Proposal on Using Raised Funds to Replace Pre-Investment of Raised Investment Projects and Paid Issuance Fees for Self-raised Funds", and agreed to use the raised funds to The funds were replaced with RMB 35.7161 million of self-raised funds pre-invested in fundraising projects and RMB 2.8198 million of self-raised funds that had paid issuance fees. A total of RMB 38.5359 million of raised funds was used to replace pre-invested funds in fundraising projects and RMB 2.8198 million of self-raised funds that had paid issuance fees.

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Self-raised funds to cover issuance costs. Tianjian Certified Public Accountants (Special General Partnership) conducted a special review on the company's advance investment in raised capital projects with self-raised funds, and issued the "Assurance Report on Beijing Fuyuan Pharmaceutical Co., Ltd.'s advance investment in raised investment projects and payment of issuance expenses with self-raised funds" (Tianjian Shen [2022] No. 9181). The above funds will be replaced on December 22, 2022.

(3) Cash management of idle raised funds and investment in related products

Review of cash management of raised funds

Unit of amount: RMB 10,000 Issuance name Initial public offering of shares in 2022

The time for receipt of raised funds is June 27, 2022

Plan to conduct cash Plan start date Plan end Board review of planned method of cash management

Amount managed Period Date Passed date

Purchases include structured deposits, large deposits

90,000.00 2024/4/22 2025/4/21 2024/3/28 Single-class high-security capital-guaranteed products

Purchases include structured deposits, large deposits

50,000.00 2025/4/28 2026/4/27 2025/3/28 Single-class high-security capital-guaranteed products

As of December 31, 2025, the actual balance of the company's use of temporarily idle raised funds to purchase financial products was RMB 100 million.

Cash management details of raised funds

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Amount unit: RMB 10,000

Issue Name 2022 Initial Public Offering of Shares

The time for receipt of raised funds is June 27, 2022

Unreturned funds Estimated annual income This year’s income entruster Trustee bank Product name Product type Purchase amount Starting date Ending date Return date

Amount Yield (%) (tax included) Profit rate - linked to ChinaBond 10-year term

China Minsheng Banking Corporation Limited

The Company's Treasury Bond Maturity Yield Structured Deposits Structured Deposits 10,000.00 2024/10/10 2025/1/10 2025/1/10 1.35-2.13 46.93 Co., Ltd. Hangzhou Branch

(SDGA241913Z)

Juyi interest rate-linked to China Bond 10-year term

China Minsheng Banking Corporation Limited

The Company's Treasury Bond Maturity Yield Structured Deposits Structured Deposits 6,000.00 2024/11/8 2025/2/28 2025/2/28 1.15-2.04 26.18 Co., Ltd. Hangzhou Branch

(SDGA242246Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement

The Company's structured deposit 10,000.00 2024/11/18 2025/2/19 2025/2/19 1.05-2.10 53.50 The Company's Beijing Tongzhou Branch Structured deposit 18693 issues

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company’s Exchange Rate Structured Deposits Structured Deposits 16,000.00 2024/12/6 2025/3/6 2025/3/6 1.20-2.16 85.22 Co., Ltd. Hangzhou Branch

(SDGA242510Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement

The Company’s structured deposit 2,000.00 2024/12/28 2025/1/27 2025/1/27 1.05-2.10 3.45 The Company’s Beijing Tongzhou Branch Structural deposit 19398 issues

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company’s Exchange Rate Structured Deposits Structured Deposits 13,000.00 2025/1/14 2025/4/14 2025/4/14 1.20-2.18 60.90 Co., Ltd. Hangzhou Branch

(SDGA250167Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement

The Company's structured deposits 7,000.00 2025/3/1 2025/3/31 2025/3/31 1.05-2.22 12.77

The Company’s Beijing Tongzhou Branch Structural Deposit No. 21343

Our Company China Minsheng Bank Juying Exchange Rate - Linked to Euro to US Dollar Structured Deposit 18,000.00 2025/3/7 2025/4/18 2025/4/18 1.30-2.25 43.89

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Co., Ltd. Hangzhou Branch Exchange Rate Structured Deposit

(SDGA251001Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement

The Company’s structured deposit 8,000.00 2025/4/1 2025/4/17 2025/4/17 1.05-2.27 3.68 The Company’s Beijing Tongzhou Branch Structural deposit A00406

China Minsheng Banking Corporation Limited

The company's unit RMB large-denomination certificate of deposit products Large-denomination certificate of deposit 7,500.00 2025/4/29 2025/5/29 2025/5/29 1.35 8.44 Co., Ltd. Hangzhou Branch

China CITIC Bank Co., Ltd. Win-Win Zhixin Gold-Linked RMB Settlement

The Company's structured deposit 6,000.00 2025/5/1 2025/5/30 2025/5/30 1.05-2.00 9.53 The Company's Beijing Tongzhou Branch Structural deposit A03135

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company's binary structured deposit with bullish exchange rate Structured deposit 24,500.00 2025/5/6 2025/5/31 2025/5/31 1.30-1.82 30.54 Co., Ltd. Hangzhou Branch

(SDGA251281V)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement

The Company's structured deposit 5,000.00 2025/6/1 2025/6/30 2025/6/30 1.00-1.81 7.19 The Company's Beijing Tongzhou Branch Structural deposit A05751

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company's binary structured deposit with bullish exchange rate Structured deposit 15,000.00 2025/6/4 2025/7/4 2025/7/4 0.90-1.70 20.96 Co., Ltd. Hangzhou Branch

(SDGA252281Z)

Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The company is bullish on binary structured deposits Structured deposits 15,000.00 2025/6/4 2025/7/4 2025/7/4 0.90-1.70 20.96 Co., Ltd. Hangzhou Branch

(SDGA252280Z)

China CITIC Bank Co., Ltd. Win-Win Smart Credit Interest Rate-Linked RMB Settlement

The Company’s structured deposit 4,000.00 2025/7/2 2025/7/31 2025/7/31 1.00-1.81 5.35 The Company’s Beijing Tongzhou Branch Structural deposit A08223

Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The Company is bullish on binary structured deposits Structured deposits 14,000.00 2025/7/8 2025/8/8 2025/8/8 0.90-1.75 20.81 Co., Ltd. Hangzhou Branch

(SDGA252740Z)

China Minsheng Banking Co., Ltd.’s profit-making rate - linked to China Bond 10-year term

The Company's structured deposits 14,000.00 2025/7/8 2025/8/8 2025/8/8 0.90-1.75 20.81 Co., Ltd. Hangzhou Branch Treasury bond yield to maturity bearish binary settlement

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Structural deposit (SDGA252745Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement Company Structured Deposit 3,000.00 2025/8/2 2025/8/29 2025/8/29 1.00-1.74 3.86 Company Beijing Tongzhou Branch Structured Deposit A10388

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company's binary structured deposit with bullish exchange rate Structured deposit 14,000.00 2025/8/11 2025/8/29 2025/8/29 1.00-1.70 11.74 Co., Ltd. Hangzhou Branch

(SDGA253102Z)

Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The Company is bullish on binary structured deposits Structured deposits 14,000.00 2025/8/11 2025/8/29 2025/8/29 1.00-1.70 11.74 Co., Ltd. Hangzhou Branch

(SDGA253111Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Gold Linked RMB Balance Company Structured Deposit 3,000.00 2025/9/1 2025/9/30 2025/9/30 1.00-1.71 4.08 Company Beijing Tongzhou Branch Structured Deposit A12050

Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The Company is bullish on binary structured deposits Structured deposits 28,000.00 2025/9/1 2025/10/9 2025/10/9 1.00-1.75 51.01 Co., Ltd. Hangzhou Branch

(SDGA253436Z)

China CITIC Bank Co., Ltd. Win-win Zhixin Gold Linked RMB Settlement Company Structured Deposit 2,000.00 2025/10/1 2025/10/31 2025/10/31 1.00-1.72 2.83 Company Beijing Tongzhou Branch Structured Deposit A14497

Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The Company is bullish on binary structured deposits Structured deposits 10,000.00 2025/10/15 2026/1/15 10,000.00 1.00-1.73 Hangzhou Branch of Co., Ltd.

(SDGA253813Z)

Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The Company is bullish on binary structured deposits Structured deposits 5,000.00 2025/10/16 2025/12/16 2025/12/16 0.95-1.61 13.45 Co., Ltd. Hangzhou Branch

(SDGA253880Z)

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company's binary structured deposit with bullish exchange rate Structured deposit 5,000.00 2025/10/16 2025/12/16 2025/12/16 0.95-1.61 13.45 Co., Ltd. Hangzhou Branch

(SDGA253865Z)

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Juying Gold-Linked Gold AU9999

China Minsheng Banking Corporation Limited

The Company is bullish on binary structured deposits Structured deposits 8,000.00 2025/10/16 2025/11/17 2025/11/17 0.90-1.52 10.66 Co., Ltd. Hangzhou Branch

(SDGA253881Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Exchange Rate Linked RMB Settlement

The Company's structured deposit 1,500.00 2025/11/1 2025/11/28 2025/11/28 1.00-1.60 1.77 The Company's Beijing Tongzhou Branch Structural deposit A15979

Juying Exchange Rate-pegged Euro to US Dollar

China Minsheng Banking Corporation Limited

The Company's binary structured deposit with bullish exchange rate Structured deposit 8,000.00 2025/11/18 2025/12/18 2025/12/18 0.90-1.58 10.39 Co., Ltd. Hangzhou Branch

(SDGA254140Z)

China CITIC Bank Co., Ltd. Win-Win Zhixin Gold-Linked RMB Settlement

The Company’s structured deposit 1,000.00 2025/12/1 2025/12/31 2025/12/31 1.00-1.65 1.36 The Company’s Beijing Tongzhou Branch Structural deposit A23617

Total 297,500.00 10,000.00 617.45

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(4) Usage of surplus raised funds

Unit of amount: RMB 10,000 Issuance name Initial public offering of shares in 2022

Date of receipt of raised funds: June 27, 2022

Total amount of remaining raised funds 17,136.34

Surplus New Project New Project New Project Plan Review by the Board of Directors Review by the Shareholders Meeting Surplus Fund Raising Projects Surplus Funds

Fund Project name Planned investment Raised funds Date of approval Date of approval Project name Amount

Purpose Name Total amount of funds Total amount of funds Period High-precision drugs

For 2025/10/ 2025/11/Industrial construction 17,136.34 -- -- --

Supplementary flow 28 14

Project (Phase I)

As of December 31, 2025, the company has transferred all the remaining 171.3634 million yuan raised from the high-precision pharmaceutical industrialization construction project (Phase I) to its own capital account.

The company's "High-Precision Drug Industrialization Construction Project (Phase I)" reached the scheduled usable state and was put into use in September 2025. Since the implementation of the project, the company has used the raised funds in accordance with the principles of rationality, economy, efficiency and prudence. On the premise of achieving the expected results of the raised investment project in general, the reasons for the savings from the raised funds are as follows:

The engineering construction expenditure budgeted for the raised funds of the project includes land use fees. However, because the company has used its own funds to complete the land payment of 94.7242 million yuan before the raised funds are received, and the payment time of this part of the funds is not within the time range that is consistent with the pre-investment of the raised funds replacement, there is a balance in the engineering construction expenses.
Due to the particularity of the pharmaceutical industry, it takes a long time from the completion of the project to passing the GMP compliance inspection. During this period, joint debugging and trial operation of relevant equipment need to be arranged. The energy expenditures such as water, electricity, gas and other energy expenditures used during this period, as well as the procurement of raw materials and excipients for the trial batches and other related expenditures, are paid with the company's own funds, resulting in a balance in the production preparation fees, preliminary working capital, etc. in the original project plan.
In order to improve the efficiency of the use of raised funds, the company used part of the temporarily idle raised funds for cash management to generate certain financial income while ensuring that the construction of the raised investment projects and the safety of the raised funds were not affected. At the same time, demand deposits during the period when the raised funds were stored also generated a certain amount of interest income.

4. Changes in the use of funds for investment projects with raised funds

(1) Changes in investment projects with raised funds

The company held the 10th meeting of the second board of directors on March 28, 2024. On April 22, 2024, the company held the 2023 Annual General Meeting of Shareholders, which reviewed and approved the "About Changing the Use of Part of the Raised Funds and Investment Projects of Part of the Raised Funds"

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Innovative drugs and generics

R&D projects 12 Pharmaceutical R&D projects in 2026 Yes 50,600.00 46,211.58 46,211.58 12,956.11 47,302.24 1,090.66[Note 2] 102.36 Not applicable Not applicable No Item Monthly Item

Committed investment projects

- 143,700.00 143,700.00 143,700.00 31,496.02 119,217.14 -24,482.86 - - - - - Subtotal

Supplement working capital

Supplementary flow No 19,891.98 19,891.98 19,891.98 - 19,891.98 100.00 - Not applicable Not applicable - Gold

Total - - 163,591.98 163,591.98 163,591.98 31,496.02 139,109.12 -24,482.86 - - - Reasons for not meeting the planned schedule (by specific projects) None

Description of major changes in project feasibility None

For details on the advance investment and replacement of investment projects with raised funds, please refer to the explanation in Part 3 (2) of this special note.

Use of idle raised funds to temporarily supplement working capital None

For details on cash management of idle raised funds and investment in related products, please refer to the explanation in the third (three) of this special note.

Use of excess raised funds to permanently replenish working capital or repay bank loans None

For details on the amount of the balance of raised funds and the reasons for its formation, please refer to the explanation in this Special Note 3 (4).

Other uses of raised funds None

[Note 1] It took three years for the project to be completed on schedule. By the end of 2025, 22 varieties had been verified for production conversion, 10 of which had been approved. The remaining varieties will be verified for production conversion by the end of 2026, and production capacity will be released year by year. At the end of the trial period, the project will generate benefits as scheduled

[Note 2] As of the end of the period, the difference between the accumulated investment amount and the committed investment amount is account interest and financial management income.

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Description of reasons for changes, decision-making procedures and information disclosure (divided into specific fundraising projects) For details, please refer to Section 4 (1) of this Special Note to explain the circumstances and reasons for failure to achieve planned progress (divided into specific fundraising projects) Not applicable

Description of major changes in project feasibility after change Not applicable

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