/Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report
NEWS

Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Shanghai Stock Exchange
2025/10/28

Securities code: 603567 Securities abbreviation: Zhenbaodao

Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.

2025 Third Quarter Report

The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.

Important content reminder:

The company's board of directors, directors and senior managers guarantee that the contents of the quarterly report are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability.

The person in charge of the company, the person in charge of accounting work and the person in charge of the accounting department (accounting supervisor) guarantee that the financial information in the quarterly report is true, accurate and complete.

Whether the third quarter financial statements have been audited

□Yes √No

1. Main financial data

(1) Main accounting data and financial indicators

Unit: Yuan Currency: RMB This reporting period increased from the beginning of the reporting period to the same period last year. Items at the end compared with the same period last year During this reporting period From the beginning of the reporting period to the end of the reporting period

Decrease the range of change Increase or decrease the range of change

(%) (%) Operating income 204,775,131.76 -44.14 918,186,023.95 -54.71 Total profit -350,538,468.09 -456.59 -464,947,127.37 -205.99 Attributable to shareholders of listed companies

-294,808,449.23 -6,798.17 -373,098,345.72 -193.81 net profit

Attributable to shareholders of listed companies

Net profit after deducting non-recurring gains and losses -318,408,443.99 -5,234.92 -402,189,533.39 -212.93

Cash generated from operating activities

Not applicable Not applicable 223,271,909.47 Not applicable Net flow

Basic earnings per share (yuan/share) -0.3136 -6,917.39 -0.3969 -193.76 Diluted earnings per share (yuan/share) -0.3136 -6,917.39 -0.3969 -193.92 Weighted average net asset income decreased by 3.94 units decreased by 10.03 units

-3.89 -4.90

Rate (%) percentage point percentage point

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

The end of the reporting period is more or less than the end of the reporting period compared with the end of the previous year.

Change (%) Total assets 11,796,553,751.25 12,712,631,463.50 -7.21 Attributable to shareholders of listed companies

Owner’s equity of 7,288,279,720.76 7,800,611,827.44 -6.57

Note: "This reporting period" refers to the three-month period from the beginning of this quarter to the end of this quarter, the same below.

(2) Non-recurring profit and loss items and amounts

√Applicable □Not applicable

Unit: Yuan Currency: RMB Non-recurring profit and loss items from the beginning of the year to the end of the reporting period Amount for the period Description

Amount of gains and losses on disposal of non-current assets, including accrued

-519,863.16 -519,863.16 Offset portion of asset impairment provisions

Government subsidies included in the current profit and loss, but with the company

Closely related to normal business operations and in compliance with national policies

30,163,254.17 40,065,581.71 Government subsidies that have a lasting impact on the company’s profits and losses are excluded from the policy provisions, are enjoyed according to determined standards, and have a lasting impact on the company’s profits and losses.

Outside

Except for those related to the company’s normal business operations,

In addition to hedging business, non-financial enterprises hold gold

Fair value of financial assets and financial liabilities 29,846.18 -73,467.52 changes in profits and losses and disposal of financial assets and financial

Gains and losses from liabilities

Charges charged to non-financial enterprises included in current profits and losses

capital occupation fee

Gains and losses from entrusting others to invest or manage assets

Profit and loss from external entrusted loans

Due to force majeure factors, such as natural disasters

Various asset losses incurred

Impairment of receivables subject to separate impairment test

Prepare to transfer back

Enterprises acquire subsidiaries, associates and joint ventures

The investment cost of the business is less than the entitlement when obtaining the investment

There is a fair value of identifiable net assets of the investee.

income generated by value

Subsidiaries resulting from business combinations under common control

Net profit and loss for the period from the beginning of the period to the date of merger

Gains and losses on non-monetary asset exchanges

Debt restructuring gains and losses

The enterprise becomes liable because the relevant business activities are no longer sustainable.

One-time expenses incurred, such as employee placement expenses

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Wait

Due to adjustments in taxation, accounting and other laws and regulations,

One-time impact on current profit and loss

Due to the cancellation and modification of the equity incentive plan, the one-time confirmation

share-based payment fees

For cash-settled share-based payments, the

After that date, the fair value of employee compensation payable will change

Profit and loss arising from activities

Adopting the fair value model for subsequent measurement

Changes in fair value of investment real estate

Profit and loss

Income arising from transactions where the transaction price is unfair

benefit

Contingencies unrelated to the company's normal business operations

Profit and loss arising from item

Custody fee income from entrusted operations

Other non-operating income other than the above items

-1,883,810.75 -5,384,334.30 and expenses

Other gains and losses that meet the definition of non-recurring gains and losses

Project

Less: Impact on income tax 4,189,593.34 4,996,729.06 Impact on minority shareholders’ equity (after tax) -161.66

Total 23,599,994.76 29,091,187.67

If the company determines items not listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Gains and Losses" as non-recurring gains and losses and is significant in amount, and if it defines the non-recurring gain or loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains and Losses" as recurring gains and losses, the reasons should be explained. □Applicable √Not applicable

(3) Changes in main accounting data and financial indicators and reasons √Applicable □Not applicable

Project name Change ratio (%) Main reasons

Mainly due to ① The shipment volume in this period did not meet expectations; ② The main product price operating income in this period_this reporting period -44.14

Due to the drop in price. Total profit_this reporting period -456.59

Attributable to shareholders of listed companies

-6,798.17

Net profit_this reporting period is mainly due to the reduction in sales scale in the current period, the increase in losses attributable to shareholders of listed companies due to credit impairment of delayed customer repayments, and the decrease in the realizable value of inventories. Net of non-recurring gains and losses -5,234.92

Profit_this reporting period

Basic earnings per share (yuan/share)_

-6,917.39

This reporting period was mainly due to the decrease in net profits attributable to shareholders of listed companies. Diluted earnings per share (yuan/share)_ -6,917.39

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

this reporting period

Operating income_from the beginning of the year to the reporting period is mainly due to ① due to the delay in the implementation of the national centralized procurement of proprietary Chinese medicines.

-54.71

The volume of goods at the end of the period decreased; ② due to the decrease in prices of main products in this period. Total profit_from the beginning of the year to the reporting period

-205.99

end

Attributable to shareholders of listed companies

-193.81 Mainly due to the reduction in sales scale in the current period and credit impairment net profit from customers’ delayed payment collection_from the beginning of the year to the end of the reporting period

Due to the increase in losses and the decrease in the realizable value of inventories. Attributable to shareholders of listed companies

Net of non-recurring gains and losses -212.93

Profit_from the beginning of the year to the end of the reporting period

Basic earnings per share (yuan/share)_

-193.76

From the beginning of the year to the end of the reporting period

Mainly due to the decrease in net profits attributable to shareholders of listed companies. Diluted earnings per share (yuan/share)_

-193.92

From the beginning of the year to the end of the reporting period

2. Shareholder information

(1) The total number of common shareholders, the number of preferred shareholders whose voting rights have been restored, and the shareholding status of the top ten shareholders

Unit: Total number of ordinary shareholders at the end of the reporting period Total number of preference shareholders with restored voting rights at the end of the reporting period

20,893 0 number (if any)

Shareholding status of the top 10 shareholders (excluding shares lent through refinancing)

Shareholding ratio of pledged, marked or frozen conditions Holding of sales restrictions

Name of shareholder Nature of shareholder Number of shares held

Example (%) Number of shares

Number of share certificates

State Heilongjiang Chuangda Group Co., Ltd. Domestic non-state-owned

470,985,300 50.05 0 Pledge 457,319,014 Division Legal person

Heilongjiang Chuangda Group Co., Ltd.

Division-Oriented to professional investors in 2023

Exchangeable non-public issuance by investors Others 84,772,958 9.01 0 No corporate bonds (first phase) pledge

Special deposit account

Bozhou Junze Fanglong Equity Investment Domestic non-state-owned

48,398,200 5.14 0 Centerless (limited partnership) Legal person

Huzhou Saihan Equity Investment Partnership Domestic non-state-owned

47,049,826 5 0 No business (limited partnership) Legal person

Shanghai Shengzhong Investment Management Co., Ltd.

Company-Shaoxing Binhai New Area Student

Others 11,069,055 1.18 0 Wuwu Pharmaceutical Industry Equity Investment Fund

Golden Partnership (Limited Partnership)

Heilongjiang Chuangda Group Co., Ltd.

Others 7,576,056 0.81 0 None - For professional investors in 2023

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Non-public issuance by investors is exchangeable

Corporate Bond (Second Issue) Pledge

Special deposit account

Chen Jingrong Domestic natural person 5,683,044 0.60 0 None

Liu Yanxiang Domestic natural person 5,604,300 0.60 0 None

Li Zuowang Domestic natural person 5,581,048 0.59 0 None

Lei Heyin Domestic natural persons 5,560,000 0.59 0 None

Shareholding status of the top 10 shareholders without selling restrictions (excluding shares lent through refinancing)

Type and quantity of shares

Name of shareholder Number of shares held without selling restrictions

Share Type Quantity

Heilongjiang Chuangda Group Co., Ltd.

470,985,300 RMB ordinary shares 470,985,300 Division

Heilongjiang Chuangda Group Co., Ltd.

Division-Oriented to professional investors in 2023

Exchangeable non-public issuance by investors 84,772,958 RMB ordinary shares 84,772,958 corporate bonds (first phase) pledge

Special deposit account

Bozhou Junze Fanglong Equity Investment

48,398,200 RMB ordinary shares 48,398,200 Center (limited partnership)

Huzhou Saihan Equity Investment Partnership

47,049,826 RMB ordinary shares 47,049,826 Enterprises (limited partnership)

Shanghai Shengzhong Investment Management Co., Ltd.

Company-Shaoxing Binhai New Area Student

11,069,055 RMB ordinary shares 11,069,055 Biopharmaceutical Industry Equity Investment Fund

Golden Partnership (Limited Partnership)

Heilongjiang Chuangda Group Co., Ltd.

Division-Oriented to professional investors in 2023

Exchangeable non-public issuance by investors 7,576,056 RMB ordinary shares 7,576,056 corporate bonds (second tranche)

Special deposit account

Chen Jingbong 5,683,044 RMB ordinary shares 5,683,044 Liu Yanxiang 5,604,300 RMB ordinary shares 5,604,300 Li Zuowang 5,581,048 RMB ordinary shares 5,581,048 Lei Heyin 5,560,000 RMB ordinary shares 5,560,000 among the above shareholders are Heilongjiang Chuangda Group Co., Ltd., Bozhou Junze Fanglong Equity Investment Center (Limited Partnership) and Hu

There is no related relationship or concerted action among the three shareholders of Zhou Saihan Equity Investment Partnership (Limited Partnership). The above-mentioned shareholder related relationship or a

Explanation of the actions taken by Heilongjiang Chuangda Group Co., Ltd., Bozhou Junze Fanglong Equity Investment Center (Limited Partnership) and Huzhou Saihan Equity

If there is no related relationship or concerted action between the investment partnership (limited partnership) and the remaining shareholders, the company shall

The company does not know whether there are related relationships or persons acting in concert among the remaining shareholders.

Top 10 shareholders and top 10

No selling shareholders are allowed to participate in financing

None

The situation of securities and refinancing business

Ming (if any)

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

The situation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the refinancing business and lending shares □ Applicable √ Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed from the previous period due to refinancing lending/returning.

□Applicable √Not applicable

3. Other reminders

Investors need to be reminded of other important information regarding the company’s operations during the reporting period.

□Applicable √Not applicable

4. Quarterly Financial Statements

(1) Types of audit opinions

□Applicable √Not applicable

(2) Financial statements

Consolidated Balance Sheet

September 30, 2025

Prepared by: Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited

Items September 30, 2025 Current assets on December 31, 2024:

Monetary funds 203,820,560.49 1,053,304,072.43 Settlement reserves

Loan funds

Trading financial assets 463,763.72 537,231.24 Derivative financial assets

Notes receivable 4,746,195.42 48,421,100.68 Accounts receivable 3,106,495,052.90 3,093,309,025.42 Accounts receivable financing 3,280,886.06 5,775,880.52 Prepayments 90,584,217.74 90,279,907.65 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 1,008,150,233.01 1,085,200,915.63 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 1,521,134,634.72 1,488,080,420.91 Including: data resources

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Contract assets 8,963,827.86 8,963,827.86 Assets held for sale

Non-current assets due within one year 5,703,779.20 15,389,665.40 Other current assets 306,643,531.41 303,797,066.54

Total current assets 6,259,986,682.53 7,193,059,114.28 Non-current assets:

Grant loans and advances

debt investment

Other debt investments

long-term receivables

Long-term equity investment 721,809,182.38 707,060,226.71 Other equity instrument investment 591,200,000.00 591,200,000.00 Other non-current financial assets

Investment real estate 799,402,501.02 814,729,707.85 Fixed assets 1,235,616,095.58 1,318,984,887.08 Construction in progress 158,118,943.26 149,415,977.64 Productive biological assets

oil and gas assets

Right-of-use assets 9,492,287.02 12,330,812.78 Intangible assets 1,030,575,361.51 980,366,925.94 Including: data resources

Development expenditure 211,130,123.04 203,600,771.65 including: data resources

Goodwill 14,823,926.83 14,823,926.83 Long-term deferred expenses 33,634,702.13 42,458,973.10 Deferred income tax assets 440,330,407.32 321,117,330.32 Other non-current assets 290,433,538.63 363,482,809.32 Total non-current assets 5,536,567,068.72 5,519,572,349.22

Total assets 11,796,553,751.25 12,712,631,463.50 Current liabilities:

Short-term borrowings 1,462,548,232.21 1,296,020,868.06 Borrowings from the central bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 314,776,539.17 278,162,437.19 Advance receipts 59,961,740.17 5,538,355.49 Contract liabilities 153,774,980.26 49,759,820.64 Financial assets sold under repurchase agreements

Taking deposits and placing deposits with other banks

Agent for buying and selling securities

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Agent underwriting securities funds

Employee benefits payable 36,507,921.98 29,686,282.99 Taxes payable 95,679,096.29 137,047,509.01 Other payables 196,845,976.56 227,045,546.49 Including: interest payable

Dividends payable

Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 1,218,066,603.92 444,157,028.89 Other current liabilities 18,622,120.90 52,858,274.16

Total current liabilities 3,556,783,211.46 2,520,276,122.92 Non-current liabilities:

insurance contract reserves

Long-term borrowings 607,000,000.00 1,546,000,000.00 Bonds payable

Among them: preferred shares

perpetual bond

Lease liabilities 7,436,790.34 7,966,075.14 Long-term payables

Long-term employee benefits payable

Estimated liabilities 158,494,642.39 158,494,642.39 Deferred income 141,041,677.55 150,107,169.09 Deferred income tax liabilities 37,594,593.29 37,913,406.94 Other non-current liabilities 808,376.04 808,375.54 Total non-current liabilities 952,376,079.61 1,901,289,669.10

Total liabilities 4,509,159,291.07 4,421,565,792.02 Owners’ equity (or shareholders’ equity):

Paid-in capital (or equity) 940,996,515.00 941,140,609.00 Other equity instruments

Among them: preferred shares

perpetual bond

Capital reserve 2,338,408,378.78 2,338,588,481.93 Less: treasury shares 13,885,131.38 15,100,131.98 Other comprehensive income

Special reserves 7,191,513.95 4,985,730.89 Surplus reserves 471,012,700.08 471,012,700.08 General risk reserves

Undistributed profits 3,544,555,744.33 4,059,984,437.52 Attributable to the parent company’s owner’s equity (or shareholder’s rights

7,288,279,720.76 7,800,611,827.44 profit) total

Minority interests -885,260.58 490,453,844.04

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Total owners’ equity (or shareholders’ equity) 7,287,394,460.18 8,291,065,671.48 Liabilities and owners’ equity (or shareholders’ equity)

11,796,553,751.25 12,712,631,463.50Total

Person in charge of the company: Yan Jiujiang Person in charge of accounting work: Zhang Yanwei Person in charge of the accounting department: Zhang Yanwei

consolidated income statement

January-September 2025

Prepared by: Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited Projects for the first three quarters of 2025 and the first three quarters of 2024

(January-September) (January-September)

  1. Total operating income 918,803,288.12 2,029,396,710.78 Including: operating income 918,186,023.95 2,027,206,914.41 Interest income 617,264.17 2,189,796.37 Premiums earned

Fee and commission income

  1. Total operating costs 1,063,804,640.08 1,516,630,249.21 Including: operating costs 590,292,703.76 950,734,675.89 Interest expenses

Handling fees and commission expenses

surrender deposit

Net compensation expenses

Net withdrawal of insurance liability reserves

policy dividend payout

Reinsurance cost

Taxes and surcharges 25,193,474.13 40,772,789.68 Sales expenses 99,079,013.92 195,180,411.22 Management expenses 217,065,904.44 220,815,744.54 Research and development expenses 19,522,837.29 15,794,348.20 Financial expenses 112,650,706.54 93,332,279.68 Including: interest expenses 114,565,540.85 103,952,495.89

Interest income 5,913,182.93 17,735,402.95 plus: other income 42,124,444.67 44,172,645.24 Investment income (losses are listed with "-") -5,501,044.33 -4,765,997.35 Including: investments in associates and joint ventures

-5,501,044.33 -18,515,998.35 capital income

Financial instruments measured at amortized cost

Income from derecognition of assets

Exchange gains (losses are listed with "-")

Net exposure hedging income (losses are filled in with "-"

column)

Gains from changes in fair value (losses marked with “-” -73,467.52 45,917.20

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Fill in the column)

Credit impairment losses (losses are listed with "-") -185,370,266.60 -50,460,078.71 Asset impairment losses (losses are listed with "-") -165,221,244.17 -60,664,678.09

Asset disposal income (losses are listed with "-") -519,863.16 -1,512,901.49

  1. Operating profit (losses are listed with "-") -459,562,793.07 439,581,368.37 plus: non-operating income 1,220,482.69 1,891,860.10

Less: Non-operating expenses 6,604,816.99 2,785,155.60

  1. Total profits (total losses are listed with "-") -464,947,127.37 438,688,072.87

Less: Income tax expense -89,308,222.52 42,253,434.21

  1. Net profit (net loss is listed with "-") -375,638,904.85 396,434,638.66

(1) Classification by business continuity

  1. Net profit from continuing operations (net loss is marked with "-"

-375,638,904.85 396,434,638.66 fill in the column)

  1. Net profit from discontinued operations (net loss is marked with "-"

Fill in the column)

(2) Classification according to ownership ownership

  1. Net profit attributable to shareholders of the parent company (net

-373,098,345.72 397,733,293.18 Losses are listed with a “-” sign)

  1. Profit and loss of minority shareholders (net loss is filled in with "-"

-2,540,559.13 -1,298,654.52 columns)

6. Net amount of other comprehensive income after tax

(1) Other comprehensive income attributable to owners of the parent company

net profit after tax

  1. Other comprehensive income that cannot be reclassified into profit or loss

(1) Remeasurement of changes in defined benefit plan

(2) Other comprehensive assets that cannot be transferred to profit or loss under the equity method

combined income

(3) Changes in fair value of investments in other equity instruments

move

(4) Changes in the fair value of the enterprise’s own credit risk

move

  1. Other comprehensive income that will be reclassified into profit and loss

(1) Other comprehensive convertible profits and losses under the equity method

income

(2) Changes in fair value of other debt investments

(3) Financial assets are reclassified into other comprehensive

Amount of income

(4) Credit impairment provisions for other debt investments

(5) Cash flow hedging reserve

(6) Translation differences of foreign currency financial statements

(7) Others

(2) Other comprehensive income attributable to minority shareholders

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

net of tax

  1. Total comprehensive income -375,638,904.85 396,434,638.66

(1) Comprehensive income attributable to owners of the parent company

-373,098,345.72 397,733,293.18 total

(2) Total comprehensive income attributable to minority shareholders -2,540,559.13 -1,298,654.52

8. Earnings per share:

(1) Basic earnings per share (yuan/share) -0.3969 0.4233

(2) Diluted earnings per share (yuan/share) -0.3969 0.4226

If a business merger under the same control occurs in this period, the net profit realized by the merged party before the merger is: 0 yuan, and the net profit realized by the merged party in the previous period is: 0 yuan.

Person in charge of the company: Yan Jiujiang Person in charge of accounting work: Zhang Yanwei Person in charge of the accounting department: Zhang Yanwei

Consolidated Cash Flow Statement

January-September 2025

Prepared by: Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.

Unit: Yuan Currency: RMB Audit type: Unaudited Projects for the first three quarters of 2025 and the first three quarters of 2024

(January-September) (January-September)

1. Cash flow generated from operating activities:

Cash received from selling goods and providing services 1,291,395,030.87 1,485,758,005.68 Net increase in customer deposits and deposits from banks

Net increase in borrowing from the central bank

Net increase in borrowing funds from other financial institutions

Cash received from premiums from the original insurance contract

Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Cash collected from interest, fees and commissions 487,804.84 2,300,945.37 Net increase in borrowed funds

Net increase in repurchase business funds

Net cash received from buying and selling securities on behalf of agents

tax refund received

Other cash received related to operating activities 154,133,837.44 488,736,406.07

Subtotal of cash inflows from operating activities 1,446,016,673.15 1,976,795,357.12 Cash paid for purchasing goods and receiving services 569,427,398.50 1,235,048,552.08 Net increase in customer loans and advances 5,120,000.00 Net increase in deposits with the central bank and inter-bank payments

Cash used to pay compensation from the original insurance contract

Net increase in lending funds

Cash payments for interest, fees and commissions

Cash payment for policy dividends

Cash paid to and for employees 160,371,082.65 261,274,423.34 Various taxes and fees paid 115,509,542.86 297,933,832.26 Cash paid for other operating activities 377,436,739.67 349,317,243.68

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Subtotal of cash outflows from operating activities 1,222,744,763.68 2,148,694,051.36

Net cash flow generated from operating activities 223,271,909.47 -171,898,694.24

2. Cash flow generated from investing activities:

Recover cash received on investments

Cash received from investment income 13,750,000.00 Disposal of fixed assets, intangible assets and other long-term assets

1,094,907.61 707,304.21 Net cash recovered from property

Disposal of cash received from subsidiaries and other business units

122,000,001.00 net amount

Other cash received related to investing activities

Subtotal of cash inflows from investing activities 1,094,907.61 136,457,305.21 Purchase and construction of fixed assets, intangible assets and other long-term assets

65,519,934.01 67,919,336.30 Cash paid

Cash paid for investment 520,622,123.77 42,150,000.00 Net increase in pledged loans

Obtain cash payments from subsidiaries and other business units

Net amount of money

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 586,142,057.78 110,069,336.30

Net cash flow generated from investing activities -585,047,150.17 26,387,968.91

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Among them: the amount received by the subsidiary from absorbing investment from minority shareholders

Cash

Cash received from borrowings 1,415,000,000.00 1,280,000,000.00 Cash received from other financing activities 1,829,395.02 7,382,173.70

Subtotal of cash inflows from financing activities 1,416,829,395.02 1,287,382,173.70 Cash paid to repay debts 1,655,740,000.00 1,302,000,000.00 Cash paid to distribute dividends, profits or pay interest 244,967,759.96 291,784,585.21 including: dividends paid by subsidiaries to minority shareholders,

profit

Cash payments related to other financing activities 1,930,115.20 51,096,763.41 Subtotal of cash outflows from financing activities 1,902,637,875.16 1,644,881,348.62

Net cash flow generated from financing activities -485,808,480.14 -357,499,174.92

4. The impact of exchange rate changes on cash and cash equivalents

  1. Net increase in cash and cash equivalents -847,583,720.84 -503,009,900.25 Plus: opening balance of cash and cash equivalents 1,050,313,244.04 1,446,189,089.17

  2. Balance of cash and cash equivalents at the end of the period 202,729,523.20 943,179,188.92 Person in charge of the company: Yan Jiujiang Person in charge of accounting work: Zhang Yanwei Person in charge of the accounting department: Zhang Yanwei

The first implementation of new accounting standards or standard interpretations starting in 2025 will involve adjustments to the financial statements at the beginning of the year of first implementation.

□Applicable √Not applicable

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Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd. 2025 Third Quarter Report

Announcement is hereby made.

Board of Directors of Heilongjiang Zhenbaodao Pharmaceutical Co., Ltd.

October 28, 2025

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