/Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

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Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Shanghai Stock Exchange

2026/07/04

Securities code: 603590 Securities abbreviation: Kangchen Pharmaceutical

Beijing Kangchen Pharmaceutical Co., Ltd. Annual Restricted Stock Incentive Plan

2026

(draft)

Beijing Kangchen Pharmaceutical Co., Ltd.

July 2026

Statement

The company and all directors guarantee that there are no false records, misleading statements or major omissions in this incentive plan and its summary, and bear individual and joint legal liability for its authenticity, accuracy and completeness.

All incentive recipients of the company promise that if the company does not comply with the arrangements for granting rights or exercising rights due to false records, misleading statements or major omissions in information disclosure documents, the incentive recipients shall return all the benefits obtained from this incentive plan to the company after the relevant information disclosure documents are confirmed to contain false records, misleading statements or major omissions.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Special reminder

This incentive plan is formulated in accordance with the "Company Law of the People's Republic of China", "Securities Law of the People's Republic of China", "Measures for the Administration of Equity Incentives of Listed Companies" and other relevant laws, regulations and normative documents, as well as the "Articles of Association of Beijing Kangchen Pharmaceutical Co., Ltd.".
The company does not have the following circumstances that prohibit the implementation of equity incentives as stipulated in Article 7 of the "Measures for the Administration of Equity Incentives for Listed Companies":

(1) The financial accounting report for the most recent fiscal year was issued a negative opinion or an audit report in which a certified public accountant was unable to express an opinion;

(2) An audit report in which a certified public accountant issued a negative opinion or was unable to express an opinion on the internal control of the financial report in the most recent fiscal year;

(3) There has been any failure to distribute profits in accordance with laws, regulations, articles of association, and public commitments within the last 36 months after listing;

(4) Equity incentives are prohibited under laws and regulations;

(5) Other circumstances determined by the China Securities Regulatory Commission.

The incentive objects participating in this incentive plan do not include the company’s independent directors. Shareholders or actual controllers who individually or collectively hold more than 5% of the company’s shares and their spouses, parents, and children do not participate in this incentive plan. Incentive objects comply with the provisions of Article 8 of the "Measures for the Administration of Equity Incentives of Listed Companies" and do not have the following circumstances that prohibit them from becoming incentive objects:

(1) Determined as an unsuitable candidate by the stock exchange within the last 12 months;

(2) Has been deemed an inappropriate candidate by the China Securities Regulatory Commission and its dispatched agencies within the last 12 months;

(3) Administrative penalties or market ban measures imposed by the China Securities Regulatory Commission and its dispatched agencies due to major violations of laws and regulations in the past 12 months;

(4) Those who are prohibited from serving as directors or senior managers of a company as stipulated in the Company Law;

(5) Not allowed to participate in equity incentives of listed companies according to laws and regulations;

(6) Other circumstances determined by the China Securities Regulatory Commission.

The incentive tool used in this incentive plan is restricted stocks. The source of the stock is the company's A-share ordinary shares issued by Beijing Kangchen Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company" or "the Company") to the incentive targets.
The number of restricted stocks planned to be granted to incentive targets under this incentive plan is 2.455 million shares, accounting for

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

1.54% of the company’s total share capital of 159.0105 million shares when the draft incentive plan was announced. Among them, 2.275 million shares were initially granted, accounting for 1.43% of the company's total share capital of 159.0105 million shares when the draft incentive plan was announced; 180,000 shares were reserved for grant, accounting for 0.11% of the company's total share capital of 159.0105 million shares when the draft incentive plan was announced. The reserved portion accounted for 7.33% of the total equity granted this time.

The cumulative total number of underlying stocks involved in all equity incentive plans within the validity period of the company does not exceed 10% of the company's total share capital at the time of the announcement of the draft incentive plan. The cumulative shares of the company granted to any incentive target in this incentive plan through all equity incentive plans within the validity period do not exceed 1% of the company's total share capital at the time of the announcement of the draft incentive plan.

During the period from the date of announcement of this incentive plan to the completion of registration of restricted stocks by the incentive targets, if the company undergoes matters such as converting capital reserves into share capital, distributing stock dividends, subdividing shares, reducing shares, allotment, etc., the number of restricted stocks granted will be adjusted accordingly according to this incentive plan.

The total number of incentive targets to be granted under this incentive plan for the first time is 63, which include senior managers of the company (including subsidiaries), some middle-level cadres, core technology and business backbones who were working in the company when the company announced this incentive plan, and other employees that the company's board of directors deems need to be motivated (excluding independent directors, and does not include shareholders or actual controllers who individually or collectively hold more than 5% of the company's shares and their spouses, parents, and children).

Reserved incentive objects refer to the incentive objects that have not yet been determined when this incentive plan is approved by the shareholders' meeting but will be included in the incentive plan during the duration of this incentive plan. They will be determined within 12 months after the incentive plan is reviewed and approved by the shareholders' meeting. The determination criteria for reserved incentive objects refer to the first grant criteria and are determined based on the company's subsequent actual development.

The grant price (including reservation) of restricted stocks granted under this incentive plan is 15.75 yuan/share.

During the period from the date of announcement of this incentive plan to the completion of registration of restricted stocks by the incentive targets, if the company undergoes matters such as converting capital reserves into equity capital, distributing stock dividends, splitting or reducing shares, allotment of shares, distribution of dividends, etc., the grant price of restricted stocks will be adjusted accordingly according to this incentive plan.

The validity period of this incentive plan is from the date of completion of registration for the first grant to the date when all restricted stocks granted to the incentive targets are released from sale restrictions or repurchased and cancelled, and the maximum period shall not exceed 48 months.
The company promises not to provide loans or any other form of financial assistance, including providing guarantees for loans, for incentive targets to obtain restricted stocks in accordance with this incentive plan.

10. This incentive plan can only be implemented after being reviewed and approved by the company’s shareholders’ meeting.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Within 60 days from the date the company's shareholders meeting approves this incentive plan, the company will convene a board of directors in accordance with relevant regulations to award the incentive objects and complete registration, announcement and other related procedures. If the company fails to complete the above work within 60 days, it shall promptly disclose the reasons for failure and declare the termination of the incentive plan, and the ungranted restricted stocks shall become invalid. The period during which rights are not allowed to be granted according to the "Measures for the Administration of Equity Incentives for Listed Companies" and other provisions shall not be counted within the 60 days.
The implementation of this incentive plan will not cause the company’s equity distribution to fail to meet the requirements of listing conditions.
During the validity period of this incentive plan, if the relevant provisions of relevant laws, regulations and normative documents are revised or changed, the corresponding provisions of this incentive plan will be implemented in accordance with the latest promulgated policies and relevant regulations.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 1 Interpretation......................................................................................................................................7

Chapter 2 The purpose and principles of this incentive plan......................................................................................8

Chapter 3 Management Organization of this Incentive Plan......................................................................................................9

Chapter 4 Determination of Basis and Scope of Incentive Objects......................................................................................10

Chapter 5 Source, Quantity and Allocation of Restricted Stocks......................................................................12

Chapter 6 The validity period, grant date, sales restriction period, sales restriction release arrangement and lock-up period of this incentive plan......................14

Chapter 7 Grant Price of Restricted Stocks and Method of Determination of Grant Price........................................17

Chapter 8 Granting and Restriction Release Conditions for Restricted Stocks.............................................................18

Chapter 9 Adjustment Methods and Procedures for Restricted Stock Incentive Plans......................................................22

Chapter 10 Accounting Treatment of Restricted Stocks......................................................................................24

Chapter 11 Implementation Procedures for Restricted Stock Incentive Plans......................................................................26

Chapter 12 Rights and Obligations of the Company/Incentive Objects......................................................................30

Chapter 13 Handling changes in the company/incentive objects......................................................................32

Chapter 14 Principles for Repurchase and Cancellation of Restricted Stocks......................................................................................35

Chapter 15 Supplementary Provisions................................................................................................................................38

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 1 Interpretation

Unless otherwise specified, the following words have the following meanings in this article:

Kangchen Pharmaceutical, our company, the company

Refers to Beijing Kangchen Pharmaceutical Co., Ltd.

companies, listed companies

restricted stock incentive plan,

Refers to the 2026 Restricted Stock Incentive Plan of Beijing Kangchen Pharmaceutical Co., Ltd. This incentive plan

According to the conditions and prices stipulated in this incentive plan, the company grants incentive objects a certain number of company stocks, and these stocks are restricted for a certain period of time.

During the period, the restricted sales circulation can be lifted only after the conditions for lifting the sales restrictions stipulated in this incentive plan are met.

In accordance with the provisions of this incentive plan, senior managers of the company (including subsidiaries), some middle-level cadres, and core incentive objects who are employed in the company and receive restricted stocks refer to

Technical and business backbone, as well as other employees that the company's board of directors deems need to be motivated

The date when the company grants restricted stocks to incentive targets. The grant date must be the grant date.

trading day

Grant price refers to the price of each restricted stock granted by the company to the incentive objects.

The restricted stocks granted to the incentive targets under this incentive plan are prohibited from being transferred to the restricted sales period.

The period used to transfer, guarantee, and repay debts

After the conditions for unlocking sales stipulated in this incentive plan are met, the incentive objects hold the unlocking period.

The period during which restricted stocks can be lifted from sales restrictions and listed for circulation

According to this incentive plan, the conditions for unlocking the restricted stocks obtained by the incentive objects refer to

Conditions that must be met

"Company Law" means "Company Law of the People's Republic of China"

“Securities Law” refers to the “Securities Law of the People’s Republic of China”

"Administrative Measures" refers to the "Administrative Measures for Equity Incentives of Listed Companies"

"Articles of Association" refers to "Articles of Association of Beijing Kangchen Pharmaceutical Co., Ltd."

China Securities Regulatory Commission refers to China Securities Regulatory Commission

Stock Exchange refers to Shanghai Stock Exchange

Yuan refers to RMB

Note: 1. The financial data and financial indicators quoted in this draft refer to the financial data in the consolidated statement and the financial indicators calculated based on such financial data unless otherwise specified.

If there is any difference in the mantissa between some totals and the direct sum of each detailed number in this draft, it is due to rounding.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 2 The purpose and principles of this incentive plan

In order to further establish and improve the company's long-term incentive mechanism, attract and retain outstanding talents, fully mobilize the enthusiasm of the company's employees, effectively combine the interests of shareholders, the interests of the company and the personal interests of the core team, so that all parties can jointly pay attention to the long-term development of the company, on the premise of fully protecting the interests of shareholders, in accordance with the principle of equal returns and contributions, and in accordance with the provisions of the "Company Law", "Securities Law", "Administrative Measures" and other relevant laws, regulations and normative documents, as well as the provisions of the "Articles of Association".

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 3 Management Organization of this Incentive Plan

As the company’s highest authority, the shareholders’ meeting is responsible for reviewing and approving the implementation, changes and termination of this incentive plan. The shareholders' meeting may authorize the board of directors to handle certain matters related to this incentive plan within the scope of its authority.
The board of directors is the executive management agency of this incentive plan and is responsible for the implementation of this incentive plan. The Remuneration and Assessment Committee under the Board of Directors is responsible for formulating and revising this incentive plan and submitting it to the Board of Directors for review. After the Board of Directors has reviewed and approved the incentive plan, it will be submitted to the shareholders' meeting for review. The board of directors may handle other matters related to this incentive plan within the scope authorized by the shareholders' meeting.
The Remuneration and Appraisal Committee of the Board of Directors is the supervisory authority of this incentive plan and shall express its opinion on whether this incentive plan is conducive to the sustainable development of the company and whether there is any situation that obviously damages the interests of the company and all shareholders. The Remuneration and Assessment Committee of the Board of Directors supervises whether the implementation of this incentive plan complies with relevant laws, regulations, normative documents and stock exchange business rules, and is responsible for reviewing the list of incentive targets and listening to public opinions.

If the company makes changes to the equity incentive plan before it is reviewed and approved by the shareholders' meeting, the remuneration and assessment committee of the board of directors shall issue verification opinions on whether the changed plan is conducive to the company's sustainable development and whether there is any situation that obviously damages the interests of the company and all shareholders.

Before the company grants rights and interests to incentive objects, the board of directors shall review whether the conditions for the incentive objects to be granted rights set in this incentive plan have been met, and the remuneration and assessment committee shall issue clear opinions. If there is a discrepancy between the rights granted by the company to incentive recipients and the arrangement of this incentive plan, the remuneration and assessment committee of the board of directors should issue a clear opinion.

Before the incentive objects exercise their rights and interests, the board of directors shall review whether the conditions for the incentive objects to exercise their rights and interests set in this incentive plan have been met, and the remuneration and assessment committee shall issue clear opinions.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 4 Determination of Basis and Scope of Incentive Objects

1. Basis for determining incentive objects

(1) Legal basis for determining incentive objects

The incentive targets of this incentive plan are determined in accordance with the Company Law, Securities Law, Management Measures and other relevant laws, regulations, normative documents and the Articles of Association, as well as the actual situation of the company.

(2) Position basis for determining incentive targets

The incentive targets of this incentive plan are the senior managers of the company (including subsidiaries), some middle-level cadres, core technology and business backbones who were working in the company when the company announced this incentive plan, and other employees that the company's board of directors deems need to be motivated (excluding independent directors, and does not include shareholders or actual controllers who individually or collectively hold more than 5% of the company's shares and their spouses, parents, and children). All incentive objects shall be verified and determined by the Remuneration and Appraisal Committee of the Company's Board of Directors.

2. Scope of incentive objects

This incentive plan involves a total of 63 people who are planned to be granted partial incentives for the first time, including:

(1) A total of 2 directors and senior managers;

(2) Some middle-level managers, core technical (business) personnel of the company (including subsidiaries) and other employees that the company’s board of directors deems need to be motivated, a total of 61 people.

The partial incentives to be granted under this incentive plan do not include independent directors, nor shareholders or actual controllers who individually or collectively hold more than 5% of the company's shares and their spouses, parents, and children.

Among the above incentive targets, senior managers must be elected by the shareholders' meeting or appointed by the company's board of directors. All incentive objects must have an employment or labor relationship with the company or its subsidiaries when the company grants restricted stocks and during the assessment period of this incentive plan.

The incentive objects for the reserved grant portion will be determined within 12 months after the incentive plan is reviewed and approved by the shareholders' meeting. After the board of directors proposes, the lawyer expresses professional opinions and issues a legal opinion, the company will promptly and accurately disclose relevant information about the incentive objects on the designated website as required. If the incentive target is not specified for more than 12 months, the reserved rights will become invalid. The determination criteria for reserved incentive objects refer to the first grant criteria and are determined based on the company's subsequent actual development.

Incentive objects do not have the following circumstances that prohibit them from becoming incentive objects:

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Those who have been deemed unsuitable candidates by the stock exchange in the past 12 months;
Those who have been deemed as inappropriate candidates by the China Securities Regulatory Commission and its dispatched agencies within the last 12 months;
In the past 12 months, the company has been subject to administrative penalties or market ban measures by the China Securities Regulatory Commission and its dispatched agencies due to major violations of laws and regulations;
Those who are prohibited from serving as company directors or senior managers as stipulated in the Company Law;
Not allowed to participate in equity incentives of listed companies according to laws and regulations;
Other circumstances determined by the China Securities Regulatory Commission.

3. Verification of incentive objects

(1) The company hires a lawyer to provide professional opinions on whether the determination of incentive objects complies with the "Administrative Measures" and relevant laws and regulations.

(2) After the incentive plan is reviewed and approved by the board of directors, the company will publicize the names and positions of the incentive targets internally for a period of not less than 10 days.

(3) The remuneration and assessment committee of the company's board of directors will review the list of incentive recipients, fully listen to the public opinions, and disclose the review and disclosure status of the list of incentive recipients to be awarded by the remuneration and assessment committee of the board of directors 5 days before the company's shareholders' meeting to review the incentive plan. The list of incentive targets adjusted by the company's board of directors should also be verified by the remuneration and assessment committee of the company's board of directors.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 5 Source, Quantity and Allocation of Restricted Stocks

1. Source of stocks for this incentive plan

The source of the underlying stocks involved in this incentive plan is the company's A shares of common stock issued to the incentive targets.

2. Number of restricted stocks granted

The number of restricted stocks planned to be granted to incentive targets under this incentive plan is 2.455 million shares, accounting for 1.54% of the company’s total share capital of 159.0105 million shares at the time of the announcement of the draft incentive plan. Among them, 2.275 million shares were initially granted, accounting for 1.43% of the company's total share capital of 159,010,500 shares when the draft incentive plan was announced; 180,000 shares were reserved for grant, accounting for 0.11% of the company's total share capital of 159,010,500 shares when the draft incentive plan was announced. The reserved portion accounted for 7.33% of the total equity granted this time.

Before the grant of restricted stocks, if the incentive object resigns, expressly gives up all or part of the restricted stocks to be granted, or fails to pay the subscription fee for the restricted stock in full within the period specified by the company, the board of directors has the right to adjust and allocate the restricted stocks that have not been actually granted or subscribed by the incentive objects among the first-granted incentive objects, adjust them to the reserved part, or directly reduce them. However, after the adjustment, the shares of the company granted to any incentive object through all equity incentive plans within the validity period shall not exceed the total share capital of the company. 1%, and the adjusted reserved equity ratio still cannot exceed 20% of the total equity to be granted under this incentive plan.

3. Allocation of restricted stocks granted to incentive targets

The distribution of restricted stocks granted under this incentive plan among the various incentive objects is as shown in the following table:

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Capital Incentive Plan Capital Restricted Shares Granted under the Capital Incentive Plan

Name Position Restricted shares granted Number of company shares on announcement date (10,000 shares)

Proportion of total votes Proportion of total capital Niu Zhanqi Director, President 20.00 8.15% 0.13%

Huang Han Employee Director 15.00 6.11% 0.09% Some middle managers of the company (including subsidiaries)

employees, core technical (business) personnel and the board of directors 192.50 78.41% 1.21% other employees (61 people) who believe that they need to be motivated

Reserved Grant 18.00 7.33% 0.11%

Total 245.50 100.00% 1.54%

Note: 1. The shares of the company granted to any of the above incentive targets through all valid equity incentive plans do not exceed 1% of the company’s total share capital at the time of the announcement of this draft incentive plan. The total number of underlying stocks involved in all the company's effective incentive plans shall not exceed 10% of the company's total share capital at the time of the announcement of the draft incentive plan.

If the total number of values in the above table does not match the sum of each sub-item value, it is due to rounding.
The incentive objects for the reserved grant portion will be determined within 12 months after the incentive plan is reviewed and approved by the shareholders' meeting. After the board of directors proposes, the lawyer expresses professional opinions and issues a legal opinion, the company will timely and accurately disclose relevant information about the incentive objects on the designated website as required. If the incentive target is not specified for more than 12 months, the reserved rights will become invalid. The determination criteria for reserved incentive objects refer to the first grant criteria and are determined based on the company's subsequent actual development.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 6 The validity period, grant date, sales restriction period, sales restriction release arrangement and

lockup period

1. Validity period of this incentive plan

The validity period of this incentive plan starts from the date when the registration of the restricted stocks first granted is completed and ends on the date when all the restricted stocks granted to the incentive objects are released from sale restrictions or repurchased and cancelled, and the maximum period shall not exceed 48 months.

2. Grant date of this incentive plan

The grant date of this restricted stock will be determined by the board of directors after the incentive plan is reviewed and approved by the company's shareholders' meeting, and the grant date must be a trading day. The company needs to grant restricted stocks and complete announcement and registration within 60 days after approval at the shareholders' meeting. If the company fails to complete the above work within 60 days, it shall disclose the reasons for failure in a timely manner and declare the termination of the incentive plan. Ungranted restricted stocks shall become invalid and the equity incentive plan shall not be reviewed again within 3 months from the date of announcement. However, the period during which the following companies are not allowed to grant restricted stocks is not included in the 60-day period.

The company may not grant restricted stock during the following periods:

(1) Within 15 days before the announcement of the company's annual report or semi-annual report, if the announcement date is postponed due to special reasons, the calculation will start from the 15 days before the original scheduled announcement to the day before the announcement;

(2) Within five days before the announcement of the company’s quarterly report, performance forecast, and performance bulletin;

(3) From the date of the occurrence of a major event that may have a greater impact on the trading price of the company's stocks and its derivatives or the date of entry into the decision-making process to the date of disclosure in accordance with the law;

(4) Other periods specified by the China Securities Regulatory Commission and the Shanghai Stock Exchange.

The above-mentioned "major events" are transactions or other major matters that the company should disclose in accordance with the provisions of the Listing Rules. During the validity period of this incentive plan, if the relevant provisions of the above period in the Company Law, Securities Law and other relevant laws, administrative regulations, normative documents and the Articles of Association are changed, the incentive objects shall comply with the provisions of the revised Company Law, Securities Law and other relevant laws, regulations, normative documents and the Articles of Association when exercising their rights.

The grant date of the reserved restricted stocks shall follow the above principles and shall be confirmed by the board of directors within 12 months after the incentive plan is reviewed and approved by the shareholders' meeting.

3. The sales restriction period and sales restriction lifting arrangements of this incentive plan

The lock-up period for the first and reserved restricted shares granted under this incentive plan is from the corresponding grant of restricted shares respectively.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

12 months and 24 months from the date of completion of ticket registration. The restricted stocks granted to incentive targets under this incentive plan may not be transferred, used to guarantee or repay debts during the restricted period.

The unlocking period for the restricted stocks first granted under this incentive plan and the unlocking schedule for each period are as follows:

Arrangements for lifting sales restrictions. Time to lift sales restrictions. The first one with the proportion of sales restrictions lifted. From the first trading day 12 months after the completion of registration of the corresponding grant to the corresponding

The 50% unlocking period ends on the last trading day within 24 months from the date of completion of registration.

The second period starts from the first trading day 24 months after the date of completion of registration of the corresponding grant and ends from the date when the corresponding grant is registered.

The 50% unlocking period ends on the last trading day within 36 months from the date of completion of registration.

The unlocking period of the restricted stocks reserved for this incentive plan and the unlocking time schedule for each period are as follows:

The 50% unlocking period ends on the last trading day within 24 months from the date of completion of registration.

The 50% unlocking period ends on the last trading day within 36 months from the date of completion of registration.

After the sales restriction period expires, the company will handle the lifting of sales restrictions for incentive targets who meet the conditions for lifting the sales restrictions. For restricted stocks that have not applied for lifting of sales restrictions within the above-mentioned agreed period or cannot apply for lifting of sales restrictions for this period because they have not met the conditions for lifting sales restrictions, the company will repurchase and cancel the corresponding restricted stocks of the incentive targets that have not been lifted from sales restrictions in accordance with the principles stipulated in this incentive plan, and the relevant rights and interests shall not be deferred to the next period.

The restricted stocks granted to the incentive recipients due to the transfer of capital reserve funds to share capital, stock dividends, and stock splits are also subject to sales restrictions and may not be sold or transferred in other ways on the secondary market. The unlocking period for these shares is the same as the unlocking period for restricted stocks. If the company repurchases restricted shares that have not been released from sale, these shares will be repurchased together.

4. Blackout period of this incentive plan

The prohibition provisions of this incentive plan are implemented in accordance with the "Company Law", "Securities Law" and other relevant laws, regulations, normative documents and the "Articles of Association". The specific provisions are as follows:

(1) If the incentive targets are directors and senior managers of the company, the shares transferred each year during the term of office determined when they take office and within 6 months after the expiration of the term shall not exceed the total number of shares of the company held by them.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

25%. Within six months after leaving the company, the shares of the company held by him shall not be transferred.

(2) If the incentive targets are directors and senior managers of the company, if they sell the company's stocks they hold within 6 months after buying them, or buy them again within 6 months after selling them, the proceeds will belong to the company, and the company's board of directors will take back the proceeds.

(3) During the validity period of this incentive plan, if the relevant provisions on the transfer of shares held by the company's directors and senior managers in the "Company Law", "Securities Law" and other relevant laws, regulations, normative documents and the "Articles of Association" change, then the transfer of the company stocks held by these incentive objects shall comply with the revised relevant provisions at the time of transfer.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 7 Grant Price of Restricted Stocks and Determination of Grant Price

1. Grant price for the first grant of restricted stocks

The grant price of restricted stocks granted under this incentive plan is 15.75 yuan per share, that is, after meeting the grant conditions, the incentive recipients can purchase the A shares issued by the company to the incentive recipients at a price of 15.75 yuan per share.

2. Method for determining the grant price of the first grant of restricted stocks

The grant price of restricted stocks granted under this incentive plan shall not be lower than the par value of the shares, and shall not be lower than the higher of the following prices:

(1) The average stock trading price of the company on the trading day before the announcement of this draft incentive plan (total stock trading volume on the previous trading day/total stock trading volume on the previous trading day) is 50% of 31.49 yuan per share, which is 15.75 yuan per share;

(2) The average stock trading price of the company in the 20 trading days before the announcement of this draft incentive plan (total stock trading volume in the previous 20 trading days/total stock trading volume in the previous 20 trading days) was 50% of 29.74 yuan per share, which was 14.87 yuan per share.

3. Method for determining the grant price of reserved restricted stocks

The reserved restricted shares are priced at RMB 15.75 per share, consistent with the initial grant. That is, after meeting the reserved grant conditions, the incentive objects can purchase the restricted stocks granted by the company to the incentive objects at a price of 15.75 yuan per share. Before granting some reserved restricted stocks, the board of directors must convene to review and approve relevant proposals and disclose the grant status.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 8 Grant of Restricted Stocks and Release of Restriction Conditions

1. Grant conditions of restricted stocks

When the following grant conditions are met at the same time, the company shall grant restricted stocks to the incentive objects. On the contrary, if any of the following grant conditions is not met, the company shall not grant restricted stocks to the incentive objects.

(1) The company has not experienced any of the following situations:

The financial accounting report of the most recent fiscal year was issued a negative opinion or an audit report in which a certified public accountant was unable to express an opinion;
An audit report in which a certified public accountant issued a negative opinion or was unable to express an opinion on the internal control of the financial report in the most recent fiscal year;
In the last 36 months after listing, there has been any failure to distribute profits in accordance with laws, regulations, company articles of association, and public commitments;
Equity incentives are not allowed according to laws and regulations;
Other circumstances determined by the China Securities Regulatory Commission.

(2) None of the following circumstances have occurred to the incentive objects:

Determined as an unsuitable candidate by the stock exchange in the past 12 months;
Have been deemed as inappropriate candidates by the China Securities Regulatory Commission and its dispatched agencies within the last 12 months;
In the past 12 months, the company has been subject to administrative penalties or market ban measures by the China Securities Regulatory Commission and its dispatched agencies due to major violations of laws and regulations;
Those who are prohibited from serving as company directors or senior managers as stipulated in the Company Law;
Not allowed to participate in equity incentives of listed companies according to laws and regulations;
Other circumstances determined by the China Securities Regulatory Commission.

2. Conditions for lifting restrictions on restricted stocks

During the unlocking period, the restricted stocks granted to the incentive targets can be unlocked only when the following conditions are met:

(1) The company has not experienced any of the following situations:

The financial accounting report of the most recent fiscal year was issued a negative opinion or an audit report in which a certified public accountant was unable to express an opinion;

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

An audit report in which a certified public accountant issued a negative opinion or was unable to express an opinion on the internal control of the financial report in the most recent fiscal year;
In the last 36 months after listing, there has been any failure to distribute profits in accordance with laws, regulations, company articles of association, and public commitments;
Equity incentives are not allowed according to laws and regulations;
Other circumstances determined by the China Securities Regulatory Commission.

(2) None of the following circumstances have occurred to the incentive objects:

Determined as an unsuitable candidate by the stock exchange in the past 12 months;
Have been deemed as inappropriate candidates by the China Securities Regulatory Commission and its dispatched agencies within the last 12 months;
In the past 12 months, the company has been subject to administrative penalties or market ban measures by the China Securities Regulatory Commission and its dispatched agencies due to major violations of laws and regulations;
Those who are prohibited from serving as company directors or senior managers as stipulated in the Company Law;
Not allowed to participate in equity incentives of listed companies according to laws and regulations;
Other circumstances determined by the China Securities Regulatory Commission.

If one of the circumstances stipulated in Article (1) above occurs to the company, the restricted stocks that have been granted to all incentive targets under this incentive plan but have not yet been released from sales restrictions will be repurchased and canceled by the company at the grant price plus bank deposit interest for the same period; if one of the circumstances stipulated in Article (2) above occurs to an incentive target, the restricted stocks that have been granted to the incentive target but have not been released from sales restrictions will be repurchased and canceled by the company at the grant price.

(3) Company-level performance appraisal requirements

The assessment year for the first grant of restricted stocks under this incentive plan is the two fiscal years of 2026 and 2027, and the assessment is once in each fiscal year. The performance assessment targets for each year of the first grant of restricted stocks are as shown in the following table: Unlocking period performance assessment targets

The company needs to meet one of the following two conditions in 2026: ① Taking the operating income in 2025 as the base, the operating income growth rate in 2026 is not less than 10%; ② Using the 2025 net profit as the base, the net profit growth rate in 2026 is not less than 10%.

The company needs to meet one of the following two conditions in 2027: ① Taking the operating income in 2025 as the base, the operating income growth rate in 2027 is not less than 20%; ② Using the 2025 net profit as the base, the net profit growth rate in 2027 is not less than 20%.

Note: ① The above “operating income” refers to the total operating income of the audited consolidated financial statements of listed companies.

② The above-mentioned "net profit" refers to the audited net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses, and excluding the impact of share-based payment expenses and possible goodwill impairment arising from this and other equity incentive plans in the current year as the basis for calculation.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

The assessment years for the restricted stocks reserved for granting under this incentive plan are the two fiscal years of 2027 and 2028, with assessments once for each fiscal year. The performance assessment targets for each year for the reserved restricted stocks are as shown in the following table: Unlocking period performance assessment goals

The company needs to meet one of the following two conditions in 2028: ① Based on the operating income in 2025, the growth rate of operating income in 2028 shall not be less than 30%; ② Based on the net income in 2025

Profit is the base number, and the net profit growth rate in 2028 will not be less than 30%.

If the company fails to meet the above performance assessment targets, the restricted stocks that can be unlocked by the corresponding incentive objects in the corresponding assessment year will not be unlocked and will be repurchased and canceled by the company. The repurchase price is the grant price.

(4) Individual-level performance appraisal requirements

The individual-level assessment of incentive objects is organized and implemented according to the company's relevant assessment system, and the proportion of incentive objects that are lifted from sales restrictions is determined based on the assessment results.

The actual amount of sales restrictions lifted by the incentive target individual in the current year = the individual’s planned sales limit lifting quota in the current year × performance coefficient.

The performance evaluation results of incentive objects are divided into four levels, and the assessment evaluation form is suitable for the assessment objects. At that time, the proportion of incentive objects that will be lifted from sales restrictions will be determined according to the following table:

Annual personal comprehensive assessment grade Excellent Good Qualified Unqualified Performance coefficient 1.0 0.7 0.5 0

Restricted stocks that cannot be released from sale in the year of assessment by the incentive objects will be repurchased and canceled by the company, and the repurchase price is the grant price.

3. Scientific and rational explanation of assessment indicators

The assessment indicators for unlocking the company's restricted stocks are divided into two levels, namely company-level performance assessment and individual-level performance assessment.

The company-level performance indicators are operating income growth rate and net profit growth rate. The operating income indicator is an important indicator to measure the company's operating status and market share, and to predict the company's future business expansion trend; the net profit indicator is an important indicator that reflects the company's profitability and corporate growth, and can establish a good capital image. The determination of the company's performance assessment indicators comprehensively considers factors such as the macroeconomic environment, industry development status, market competition, and the company's future development plan, as well as the possibility of implementation and

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

The motivation effect for the company's employees and the indicator setting are reasonable and scientific.

In addition to company-level performance appraisal, the company also sets relatively strict performance appraisal indicators for individuals, which can make a more accurate and comprehensive comprehensive evaluation of the work performance of the incentive targets. The company will determine whether individual incentive targets meet the conditions for lifting sales restrictions based on the performance evaluation results of the previous year.

In summary, the assessment system of the company's incentive plan is comprehensive, comprehensive and operable, and the setting of assessment indicators is scientific and rational. It also has a constraining effect on the incentive objects and can achieve the assessment purpose of this incentive plan.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 9 Adjustment Methods and Procedures for Restricted Stock Incentive Plans

1. Method for adjusting the number of restricted stocks

If between the announcement date of this incentive plan and the completion of registration of restricted stock shares by the incentive targets, the company has matters such as converting capital reserves to increase share capital, distributing stock dividends, splitting shares, allotment, reduction of shares, etc., the number of restricted stocks (including the reserved part) should be adjusted accordingly. The adjustment method is as follows:

(1) Converting capital reserves to share capital, distributing stock dividends, and subdividing shares

Q=Q × (1+n)

Among them: Q is the number of restricted stocks before adjustment; n is the ratio of capital reserve per share to increase share capital, distribution of stock dividends, and stock subdivision (i.e., the number of shares increased after each share is transferred to capital, bonus shares, or subdivision); Q is the number of restricted stocks after adjustment.

(2) Allotment of shares

Q＝Q×P×(1+n)÷(P+P×n)

0 1 1 2

Among them: Q is the number of restricted shares before adjustment; P is the closing price on the equity registration date; P is

0 1 2 Allotment price; n is the proportion of allotment shares (that is, the ratio of the number of allotment shares to the company's total share capital before allotment); Q is the adjusted number of restricted stocks.

(3) Stock reduction

Q＝Q×n

Among them: Q is the number of restricted stocks before adjustment; n is the reduction ratio (that is, 1 company stock is reduced to n shares); Q is the number of restricted stocks after adjustment.

(4) Additional issuance

When the company issues new shares, the number of restricted shares will not be adjusted.

2. Adjustment method for restricted stock grant price

If between the date of announcement of this incentive plan and the completion of registration of restricted stock shares by the incentive targets, the company has matters such as converting capital reserves to increase share capital, distributing stock dividends, subdividing shares, allotment, reduction of shares or distribution of dividends, etc., the grant price of the restricted stocks (including the reserved part) should be adjusted accordingly. The adjustment method is as follows:

(1) Converting capital reserves to share capital, distributing stock dividends, and subdividing shares

P＝P÷（1＋n）

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Among them: P is the grant price before adjustment; n is the ratio of converting capital reserves into equity per share, distributing stock dividends, and splitting shares; P is the grant price after adjustment.

(2) Allotment of shares

P＝P×（P＋P×n）÷[P×（1＋n）]

0 1 2 1

Among them: P is the grant price before adjustment; P is the closing price on the equity registration date; P is the allotment price

0 1 2

grid; n is the proportion of the allotment (that is, the ratio of the number of shares in the allotment to the total share capital of the company before the allotment); P is the adjusted grant price.

(3) Stock reduction

P＝P÷n

Among them: P is the grant price before adjustment; n is the share reduction ratio; P is the grant price after adjustment.

(4) Dividend payment

P=P-V

Among them: P is the grant price before adjustment; V is the dividend amount per share; P is the grant price after adjustment. After adjusting for dividends, P must still be greater than 1.

(5) Additional issuance

When the company issues new shares, the grant price of restricted shares will not be adjusted.

3. Procedure for adjustment of restricted stock incentive plan

When the aforementioned situation occurs, the company's board of directors shall review and approve a proposal to adjust the number and grant price of restricted shares. The company should hire a lawyer to provide professional opinions to the company's board of directors on whether the above adjustments are in compliance with the "Management Measures", the "Articles of Association" and the provisions of this incentive plan. After the adjustment proposal is reviewed and approved by the board of directors, the company shall promptly disclose the announcement of the board of directors' resolution and announce the law firm's opinion at the same time.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 10 Accounting Treatment of Restricted Stocks

In accordance with the provisions of "Accounting Standards for Business Enterprises No. 11 - Share-based Payment" and "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", the company will revise the number of restricted stocks that are expected to be unlocked based on the latest changes in the number of people who can be unlocked, the completion of performance indicators and other follow-up information on each balance sheet date of the restricted period, and will include the services obtained in the current period into relevant costs or expenses and capital reserves based on the fair value of the restricted stock grant date.

1. Accounting treatment method

(1) Grant date

Bank deposits, treasury shares and capital reserves are confirmed based on the company's grant of shares to incentive targets.

(2) Each balance sheet date during the sales restriction period

According to the accounting standards, on each balance sheet date during the restricted period, the services provided by employees will be included in costs and expenses based on the fair value of the equity instruments on the grant date and the unlocking ratio of the restricted stocks in each period, and the owner's equity or liability will be recognized at the same time.

(3) Date of lifting sales restrictions

On the date when the sales restrictions are lifted, if the conditions for lifting the sales restrictions are met, the sales restrictions can be lifted; if all or part of the stocks are not lifted from the sales restrictions and become invalid or invalid, they will be handled in accordance with accounting standards and relevant regulations.

(4) Fair value of stock options and determination method

According to the relevant provisions of "Accounting Standards for Business Enterprises No. 11 - Share-based Payment" and "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", the unit cost of restricted stocks = fair value of restricted stocks - grant price, where the fair value of restricted stocks is the closing price on the date of grant.

2. Estimated impact of the implementation of restricted stocks on operating performance in each period

The company granted 2.275 million restricted shares to the incentive targets for the first time. The fair value of the restricted shares on the date of grant was calculated according to the above method, and the total cost of the equity instruments granted was finally recognized. These costs will be recognized in installments according to the unlocking ratio during the implementation of this incentive plan. Incentive costs arising from this incentive plan will be charged to recurring profits and losses.

According to the requirements of Chinese accounting standards, assuming that the company first grants restricted shares in August 2026, the amortization of share-based payment expenses from 2026 to 2028 is as follows:

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Number of restricted shares granted Total expenses to be amortized 2026 2027 2028 (10,000 shares) (10,000 yuan) (10,000 yuan) (10,000 yuan) (10,000 yuan) 227.50 3,630.90 1,090.73 1,996.02 544.15

Note: The above results do not represent the final accounting cost. The actual accounting cost is not only related to the actual grant date, grant price and number of grants, but also to the actual number of effective and invalidated rights. The final result of the impact of the above expense amortization on the company's operating results shall be subject to the annual audit report issued by the accounting firm.

Based on the current information, the company preliminarily estimates that, without considering the stimulating effect of this incentive plan on the company's performance, the amortization of restricted stock expenses will have an impact on the net profit of each year during the validity period, but the impact will not be significant. If the positive effect of restricted stock incentive plans on company development is considered, it can stimulate the enthusiasm of the management team, improve operating efficiency, and play a positive role in improving the company's performance.

The reserved restricted stocks will be specified and awarded within 12 months after the incentive plan is approved by the shareholders' meeting, and the share payment expenses will be determined based on the market price on the grant date. The accounting treatment of the reserved restricted stocks is the same as that of the first grant of restricted stocks.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 11 Implementation Procedures for Restricted Stock Incentive Plans

1. Effectiveness Procedures for Restricted Stock Incentive Plans

(1) The Remuneration and Assessment Committee of the Company’s Board of Directors is responsible for formulating the draft of this incentive plan. The company's board of directors shall make a resolution on this incentive plan in accordance with the law. When the board of directors considers this incentive plan, directors who are the incentive targets or directors who are related to them shall abstain from voting. After reviewing and approving this incentive plan and performing the publicity and announcement procedures, the board of directors shall submit this incentive plan to the shareholders' meeting for review; at the same time, it shall request the shareholders' meeting for authorization to be responsible for the granting, lifting of sales restrictions, repurchase and cancellation of restricted stocks.

(2) The remuneration and assessment committee of the company's board of directors shall express its opinion on whether this incentive plan is conducive to the company's sustainable development and whether there is any situation that obviously damages the interests of the company and all shareholders. The company should hire a law firm to issue a legal opinion on this incentive plan and issue professional opinions in accordance with the provisions of laws, administrative regulations and the "Administrative Measures".

(3) This incentive plan can only be implemented after being reviewed and approved by the company’s shareholders’ meeting. The company shall, before convening the shareholders' meeting, publicize the names and positions of the incentive targets within the company through the company's website or other channels (the publicity period shall not be less than 10 days). The remuneration and assessment committee of the company's board of directors should review the list of incentive targets and fully listen to public opinions. The company shall disclose the explanation of the review and disclosure of the list of incentive recipients by the remuneration and assessment committee of the company's board of directors 5 days before the shareholders' meeting considers this incentive plan. The company shall conduct a self-examination on the insider trading of the company's stocks and its derivatives within 6 months before the announcement of this draft incentive plan, and explain whether there is any insider trading. Anyone who buys or sells the company's stocks after knowing inside information shall not become an incentive target, except for situations that are not considered insider trading according to laws, administrative regulations and relevant judicial interpretations. Those who leak inside information and lead to insider trading shall not be rewarded.

(4) This incentive plan can be implemented only after it has been reviewed and approved by the company’s shareholders’ meeting. The shareholders' meeting shall vote on the content of the equity incentive plan stipulated in Article 9 of the "Administrative Measures" and pass it by more than 2/3 (inclusive) of the voting rights held by shareholders attending the meeting. The voting information of other shareholders other than the company's directors, senior managers, and shareholders who individually or collectively hold more than 5% of the company's shares shall be separately counted and disclosed. When the company's shareholders meeting reviews the equity incentive plan, shareholders who are the incentive targets or shareholders who are related to the incentive targets should abstain from voting.

(5) This incentive plan has been reviewed and approved by the company’s shareholders’ meeting, and the grant conditions stipulated in this incentive plan have been met.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

When the conditions are met, the company will grant restricted stocks to the incentive objects within the specified time. After authorization from the shareholders' meeting, the board of directors is responsible for implementing matters such as the granting, lifting of restrictions, repurchase and cancellation of restricted stocks.

2. Granting Procedure for Restricted Stocks

(1) After the shareholders' meeting reviews and approves this incentive plan, the company and the incentive targets will sign a "Restricted Stock Grant Agreement" to stipulate the rights and obligations of both parties.

(2) Before the company grants rights and interests to the incentive objects, the board of directors shall review and announce whether the conditions for the incentive objects to be granted rights set in the equity incentive plan have been met and make an announcement. The remuneration and assessment committee of the company's board of directors should issue clear opinions at the same time. The law firm should issue a legal opinion on whether the conditions for the incentive target to be granted benefits have been met.

(3) The remuneration and assessment committee of the company's board of directors shall verify and issue opinions on the grant date of restricted stocks and the list of incentive targets.

(4) When there are differences between the company's grant of rights and interests to incentive recipients and the arrangements for the equity incentive plan, the company's board of directors' remuneration and assessment committee and law firm should issue clear opinions at the same time.

(5) After the equity incentive plan is reviewed and approved by the shareholders’ meeting, the company shall grant restricted stocks to the incentive objects and complete announcement and registration within 60 days. The company's board of directors should promptly disclose relevant implementation announcements after the registration of the granted restricted stocks is completed. If the company fails to complete the above work within 60 days, the incentive plan will be terminated. The board of directors shall disclose the reasons for failure in a timely manner and shall not review the equity incentive plan again within 3 months (according to the "Administration Measures" and relevant laws and regulations, the period during which listed companies are not allowed to grant restricted stocks shall not be counted within 60 days).

(6) If the company's directors and senior managers, as incentive targets, have reduced their holdings of the company's stocks within 6 months before the grant of restricted stocks and there is no use of inside information for trading after verification, the company may refer to the provisions of short-term trading in the Securities Law to postpone the granting of restricted stocks to 6 months from the date of the last reduction transaction.

(7) Before granting restricted stocks, the company shall submit an application to the stock exchange. After confirmation by the stock exchange, China Securities Depository and Clearing Co., Ltd. will handle the registration matters.

(8) After the registration of restricted stock grant is completed, if the registered capital is changed, the company shall go through the registration procedures for company changes with the industrial and commercial registration department.

3. Procedure for lifting restrictions on restricted stocks

(1) Before the date of lifting the sales restrictions, the company should confirm whether the incentive objects meet the conditions for lifting the sales restrictions. director

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

The board of directors shall review whether the conditions for lifting sales restrictions set in this incentive plan have been met, and the remuneration and assessment committee of the company's board of directors shall issue clear opinions at the same time. Law firms should issue legal opinions on whether the conditions for the incentive objects to be lifted from sales restrictions have been met. For incentive objects that meet the conditions for lifting sales restrictions, the company will handle the lifting of sales restrictions. For incentive objects that do not meet the conditions for lifting sales restrictions, the company will repurchase and cancel the restricted stocks held by them that correspond to the lifting of sales restrictions. Companies should promptly disclose announcements on relevant implementation status.

(2) Incentive objects may transfer restricted stocks that have been lifted from sales restrictions, but the transfer of shares held by the company’s directors and senior managers shall comply with the provisions of relevant laws, regulations and normative documents.

(3) Before lifting the sales restrictions on the restricted stocks of the incentive targets, the company shall submit an application to the stock exchange. After confirmation by the stock exchange, China Securities Depository and Clearing Co., Ltd. will handle the matter of lifting the sales restrictions.

4. Procedure for changes and termination of this incentive plan

(1) Change procedures for this incentive plan

If the company intends to change this incentive plan before the shareholders' meeting reviews the incentive plan, it must be reviewed and approved by the board of directors.
If the company changes this incentive plan after it is reviewed and approved by the shareholders’ meeting, it shall be reviewed and decided by the shareholders’ meeting, and the following situations shall not be included:

(1) Situations that lead to early lifting of sales restrictions;

(2) Situations where the grant price is reduced (except for situations where the grant price is reduced due to reasons such as converting capital reserves into share capital, distributing stock dividends, allotment of shares, etc.).

The remuneration and assessment committee of the company's board of directors should express a clear opinion on whether the changed plan is conducive to the sustainable development of the listed company and whether there is any situation that obviously damages the interests of the listed company and all shareholders.
The law firm shall issue professional opinions on whether the changed plan complies with the provisions of the "Administrative Measures" and relevant laws and regulations, and whether there are any circumstances that will obviously harm the interests of the listed company and all shareholders.

(2) Termination procedures for this incentive plan

If the company intends to terminate the implementation of this incentive plan before the shareholders meeting reviews the incentive plan, it must be reviewed and approved by the board of directors.
If the company terminates the implementation of this incentive plan after the shareholders' meeting has reviewed and approved the incentive plan, it shall be reviewed and decided by the shareholders' meeting.
The law firm shall make a report on whether the company's termination of incentives complies with the provisions of the "Management Measures" and relevant laws, regulations and normative documents, and whether there are any circumstances that will obviously harm the interests of the company and all shareholders.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

express professional opinions.

When this incentive plan is terminated, the company shall repurchase the restricted stocks that have not been released from sale and handle them in accordance with the provisions of the Company Law.
Before the company repurchases restricted stocks, it shall submit an application to the stock exchange. After confirmation by the stock exchange, China Securities Depository and Clearing Co., Ltd. will handle registration and settlement matters.
The company terminates the implementation of this incentive plan and will no longer review and disclose the draft equity incentive plan within 3 months from the date of announcement of the resolution.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 12 The respective rights and obligations of the company/incentive objects

1. The company’s rights and obligations

(1) The company has the right to interpret and execute this incentive plan, and will assess the incentive targets in accordance with the provisions of this incentive plan. If the incentive targets fail to meet the conditions for lifting sales restrictions determined in this incentive plan, the company will repurchase and cancel the corresponding restricted stocks from the incentive targets that have not been lifted from sales restrictions in accordance with the principles stipulated in this incentive plan.

(2) The company promises not to provide loans or any other form of financial assistance, including providing guarantees for loans, for incentive targets to obtain restricted stocks in accordance with this incentive plan.

(3) The company should promptly perform its obligations such as declaration of restricted stock incentive plan and information disclosure in accordance with relevant regulations.

(4) The company shall, in accordance with this incentive plan and relevant regulations of the China Securities Regulatory Commission, stock exchanges, China Securities Depository and Clearing Co., Ltd., etc., actively cooperate with incentive targets who meet the conditions for lifting sales restrictions to lift sales restrictions as required. However, if the incentive recipients fail to lift the sales restrictions as they wish due to the China Securities Regulatory Commission, the stock exchange, and China Securities Depository and Clearing Co., Ltd. and cause losses to the incentive recipients, the company will not be held responsible.

(5) The company's determination of the incentive objects of this incentive plan does not mean that the incentive objects have the right to continue serving in the company, nor does it constitute the company's commitment to the employee's employment period. The company's employment relationship with employees is still governed by the labor contract or employment contract signed between the company and the incentive objects.

(6) The company will withhold and remit the personal income tax payable by the incentive recipients in accordance with the provisions of national tax regulations.

(7) Other relevant rights and obligations stipulated in laws and regulations.

2. Rights and obligations of incentive objects

(1) The incentive recipients should be diligent and responsible, abide by professional ethics, and make due contributions to the development of the company according to the requirements of the position employed by the company.

(2) Incentive objects shall be restricted from selling the restricted stocks they have been granted in accordance with the provisions of this incentive plan.

(3) The restricted stocks granted to the incentive objects will enjoy the rights due to their stocks after being registered and transferred by China Securities Depository and Clearing Co., Ltd., including but not limited to dividend rights and allotment of such stocks.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

rights, voting rights, etc. When the company distributes cash dividends, the cash dividends that the incentive recipients should receive for the restricted stocks granted to them shall be enjoyed by the incentive recipients after withholding and paying personal income tax; if the restricted shares cannot be released from sale, the company shall deduct the part of the cash dividends that the incentive recipients have enjoyed when repurchasing the restricted stocks in accordance with the provisions of this incentive plan, and make corresponding accounting treatment.

(4) The source of funds for the incentive objects shall be self-raised funds by the incentive objects.

(5) The restricted stocks granted to the incentive objects shall not be transferred, guaranteed or used to repay debts before the restrictions are lifted.

(6) Incentive objects shall pay personal income tax and other taxes in accordance with national tax regulations on the income derived from the incentive plan.

(7) The incentive recipients promise that if the company does not comply with the arrangements for granting rights or exercising rights due to false records, misleading statements or major omissions in the information disclosure documents of this incentive plan, the incentive recipients shall return all the benefits obtained from the equity incentive plan to the company after it is confirmed that there are false records, misleading statements or major omissions in the relevant information disclosure documents.

(8) After this incentive plan is reviewed and approved by the company's shareholders' meeting, the company will sign a "Restricted Stock Grant Agreement" with each incentive target to clearly stipulate their rights and obligations and other related matters under this incentive plan.

(9) Other relevant rights and obligations stipulated in laws, regulations and this incentive plan.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 13 Handling changes in the company/incentive objects

1. Handling of changes in the company

(1) If the company encounters any of the following circumstances, this incentive plan will be terminated. Restricted stocks that have been granted to the incentive targets but have not yet been released from sale restrictions shall not be released from sale restrictions and will be repurchased and canceled by the company at the sum of the award price plus bank deposit interest for the same period.

The financial accounting report of the most recent fiscal year was issued a negative opinion or an audit report in which a certified public accountant was unable to express an opinion;
An audit report in which a certified public accountant issued a negative opinion or was unable to express an opinion on the internal control of the financial report in the most recent fiscal year;
In the last 36 months after listing, there has been any failure to distribute profits in accordance with laws, regulations, company articles of association, and public commitments;
Situations where equity incentives are not allowed to be implemented according to laws and regulations;
Other circumstances that require termination of the incentive plan as determined by the China Securities Regulatory Commission.

(2) If the company encounters any of the following circumstances, this incentive plan will be implemented normally:

Change of control of the company;
The company undergoes merger or division.

(3) If the company does not meet the conditions for granting restricted stocks or releases restrictions due to false records, misleading statements or major omissions in the information disclosure document of this incentive plan, the restricted stocks that have not been released from sale will be repurchased and canceled by the company at the sum of the grant price plus bank deposit interest for the same period. If the restricted stocks granted to incentive objects have been released from sale, all incentive objects shall return the authorized benefits. If an incentive object that is not responsible for the above matters suffers losses due to the return of rights and interests, it can recover compensation from the company or the responsible object in accordance with the relevant arrangements of this incentive plan. The board of directors shall recover the income from the incentive objects in accordance with the provisions of the preceding paragraph and the relevant arrangements of this incentive plan.

(4) If the company cannot achieve the incentive purpose by continuing to implement this incentive plan due to changes in factors such as the operating environment or market conditions, the incentive plan can be terminated early with the approval of the company's shareholders' meeting. The restricted stocks that have been granted to the incentive targets but have not yet been released from sale restrictions will be repurchased and canceled by the company. The repurchase price is the sum of the grant price plus bank deposit interest for the same period.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

2. Changes in the personal circumstances of the incentive recipients

(1) If the incentive target loses the qualification to participate in this incentive plan due to any of the following circumstances, the restricted stocks of the incentive target that have been released from sale restrictions will not be changed, and the restricted stocks that have not been released from sale will be repurchased and canceled by the company at the grant price:

Determined as an unsuitable candidate by the stock exchange in the past 12 months;
Have been deemed as inappropriate candidates by the China Securities Regulatory Commission and its dispatched agencies within the last 12 months;
In the past 12 months, the company has been subject to administrative penalties or market ban measures by the China Securities Regulatory Commission and its dispatched agencies due to major violations of laws and regulations;
Those who are prohibited from serving as company directors or senior managers as stipulated in the Company Law;
Not allowed to participate in equity incentives of listed companies according to laws and regulations;
Other circumstances determined by the China Securities Regulatory Commission.

(2) There is a change in the position of the incentive target

If the incentive target has a change of position but is still employed in the company or a subsidiary of the company, the restricted stock granted to him or her will still be granted in accordance with the procedures stipulated in this incentive plan. The individual performance appraisal shall be based on the comprehensive performance appraisal results of the original position and the new position.
If the incentive target is unable to perform the original job, and the company arranges for him to be transferred to another position in the company, and he is no longer within the scope of the incentive target, but is still in the company, or works in a subsidiary of the company, the restricted stock that has been granted but has not yet been released from the sales restriction shall not be lifted, and the company will repurchase and cancel it at the grant price.
If the incentive recipients are unable to hold the company's restricted stocks because they serve as independent directors or have other positions, the restricted stocks that have been granted but have not yet been released from sale restrictions shall not be released from sale, and will be repurchased and canceled by the company at the sum of the grant price plus bank deposit interest for the same period.

(3) If the incentive target resigns due to voluntary resignation, being fired by the company, being laid off by the company, the labor contract/employment agreement expires without renewal, retirement, etc., from the date of resignation, the restricted stocks that have met the conditions for lifting the sales restrictions can be unlocked; the restricted stocks that have not met the conditions for lifting the sales restrictions and have not yet been lifted from the sales restrictions cannot be lifted from the sales restrictions, and will be repurchased and canceled by the company at the grant price.

(4) If the incentive objects are re-employed to the company after retirement or continue to provide labor services to the company in other forms, the restricted stocks granted to them will still be carried out in accordance with the procedures stipulated in this incentive plan, and the individual performance assessment will be based on the comprehensive performance assessment results of the original position and the new position.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

(5) If an incentive object resigns due to loss of working ability, it shall be handled in the following two situations:

When the incentive target loses the ability to work due to the performance of his duties and resigns, on the date when the situation occurs, the restricted stocks that have been granted to the incentive target but have not yet been released from sales restrictions will be fully processed in accordance with the procedures stipulated in this incentive plan before losing the ability to work. The board of directors may decide that their personal performance evaluation conditions will no longer be included in the conditions for lifting sales restrictions.
When the incentive target resigns other than due to loss of working ability due to performance of duties, on the date of occurrence of the situation, the restricted stocks that have been granted to the incentive target but have not yet been released from sale restrictions shall not be lifted, and the company will repurchase and cancel them at the sum of the grant price plus bank deposit interest for the same period.

(6) The death of the incentive recipient shall be handled in the following two situations:

If the incentive target dies due to performance of duties, the restricted stock of the incentive target will be held by the designated property heir or legal heir on the date of occurrence, and will be carried out in accordance with the procedures stipulated in this incentive plan before the death, and the personal performance evaluation conditions will no longer be included in the conditions for unlocking sales.
If the incentive target dies due to other reasons, on the date of occurrence, the restricted stocks that have been granted to the incentive target but have not yet been released from sale restrictions shall not be lifted, and the company will repurchase and cancel them at the sum of the grant price plus bank deposit interest for the same period. The restricted shares that have been released from sale will be inherited by their designated property heirs or legal heirs. If the personal income tax on this part of the shares has not been paid, the heirs will pay it on their behalf in accordance with the law.

(7) If the incentive target resigns, he/she must pay the personal income tax on the part of the restricted stock that has been released from the sales restriction before resigning.

(8) Other unexplained situations shall be determined by the company's Remuneration and Assessment Management Committee and determine their handling.

3. Resolution of disputes between the company and incentive recipients

Any dispute between the company and the incentive objects shall be resolved in accordance with the provisions of this incentive plan and the Equity Incentive Grant Agreement; if the provisions are unclear, the two parties shall negotiate and resolve in accordance with national laws and the principles of fairness and reasonableness; if negotiation fails, the dispute shall be submitted to the people's court with jurisdiction over the location of the company's domicile for litigation settlement.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 14 Principles for Repurchase and Cancellation of Restricted Stocks

If the company repurchases and cancels restricted stocks in accordance with the provisions of this incentive plan, it shall do so in accordance with the relevant provisions of this incentive plan, except that the repurchase price needs to be adjusted according to this incentive plan.

After the restricted stocks granted to the incentive objects have been registered, if the company encounters matters such as converting capital reserves to increase capital, distributing stock dividends, subdividing shares, allotment, reduction of shares, or distribution of dividends that affect the company's total share capital or the price and quantity of the company's stocks, the company should make corresponding adjustments to the repurchase price and quantity of the restricted stocks that have not yet been released from sale restrictions.

1. Adjustment method of repurchase quantity

(1) Conversion of capital reserves into share capital, distribution of stock dividends, and stock splits

Q=Q × (1+n)

(2) Allotment of shares

Q＝Q×P×(1+n)÷(P+P×n)

0 1 1 2

Among them: Q is the number of restricted shares before adjustment; P is the closing price on the equity registration date; P is

(3) Stock reduction

Q＝Q×n

Among them: Q is the number of restricted stocks before adjustment; n is the reduction ratio (that is, 1 company stock is reduced to n shares); Q is the number of restricted stocks after adjustment.

(4) Dividend payment and additional issuance

When the company issues new shares, the number of restricted shares will not be adjusted.

2. Adjustment method of repurchase price

(1) Conversion of capital reserves into share capital, distribution of stock dividends, and stock splits

P＝P÷（1＋n）

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Among them: P is the adjusted repurchase price of each restricted stock, P is the grant price of each restricted stock; n is the ratio of capitalization of reserve funds per share, distribution of stock dividends, and stock splits (i.e., the number of shares increased after each share of stock is converted into capital, bonus shares, or stock splits).

(2) Allotment of shares

P＝P×（P＋P×n）÷[P×(1＋n)]

0 1 2 1

Among them: P is the adjusted repurchase price of each restricted stock, P is the grant price of each restricted stock; P is the closing price on the equity registration date; P is the allotment price; n is the proportion of allotment (that is, allotment

1 2

The ratio of the number of shares to the company’s total share capital before the rights issue)

(3) Stock reduction

P＝P÷n

Among them: P is the adjusted repurchase price of each restricted stock, P is the grant price of each restricted stock; n is the reduction ratio of each share (that is, 1 share is reduced to n shares).

(4) Dividend payment

P=P-V

Among them: P is the adjusted repurchase price of restricted shares per share, P is the pre-adjusted repurchase price of restricted shares per share; V is the dividend amount per share. After adjusting for dividends, P must still be greater than 0.

(5) Additional issuance

When the company issues new shares, the price of restricted shares will not be adjusted.

3. Adjustment procedures for repurchase quantity and repurchase price

(1) The company's shareholders meeting authorizes the company's board of directors to adjust the repurchase quantity and repurchase price of restricted stocks based on the reasons listed above. After the board of directors adjusts the repurchase quantity and repurchase price in accordance with the above regulations, it shall make a timely announcement.

(2) If the number and price of restricted stock repurchase need to be adjusted due to other reasons, a resolution must be made by the board of directors and reviewed and approved by the shareholders' meeting.

4. Procedure for repurchase and cancellation

(1) The company should promptly convene the board of directors to review the share repurchase plan. According to the provisions of the "Administrative Measures", when the company's board of directors considers the share repurchase plan for restricted stocks in accordance with Article 27 of the "Administrative Measures", it shall submit the share repurchase plan to the shareholders' meeting for approval and make a timely announcement.

(2) When the company implements repurchase in accordance with the provisions of this incentive plan, it shall comply with the provisions of the Company Law

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

for processing.

(3) When the company implements repurchase in accordance with the provisions of this incentive plan, it shall apply to the stock exchange for the relevant procedures for the cancellation of restricted stocks. After confirmation by the stock exchange, the Securities Depository and Clearing Corporation will handle registration and settlement matters.

(4) During the validity period of this incentive plan, if the relevant provisions on the repurchase and cancellation procedures in the "Management Measures" and other relevant laws and regulations, normative documents or the "Articles of Association" are changed, the changed provisions will be followed.

Beijing Kangchen Pharmaceutical Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft)

Chapter 15 Supplementary Provisions

1. This incentive plan will take effect after being reviewed and approved by the company’s shareholders’ meeting.

2. This incentive plan is explained by the company’s board of directors.

During the validity period of this incentive plan, if there are changes in the Company Law, Securities Law, Management Measures and other relevant laws, administrative regulations, normative documents and the Articles of Association, the plan will be implemented in accordance with the relevant provisions at that time.
The company's financial and accounting treatment and taxation issues when implementing this incentive plan shall be implemented in accordance with relevant laws and regulations, financial systems, accounting standards, and taxation systems.

Board of Directors of Beijing Kangchen Pharmaceutical Co., Ltd.

July 4, 2026