Haili Biotechnology’s Risk Warning Announcement on the Possible Delisting Risk Warning on the Company’s Stocks

Securities code: 603718 Securities abbreviation: Haili Biotechnology Announcement number: 2026-006

Shanghai Haili Biotechnology Co., Ltd.

Risk warning announcement regarding the possible delisting risk warning for the company’s stocks

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 bear individual and joint liability for the authenticity, accuracy and completeness of its contents.

Important content reminder:

 According to Article 9.3.2 of the "Shanghai Stock Exchange Stock Listing Rules", Shanghai Haili Biotechnology Co., Ltd. (hereinafter referred to as the "Company") stocks may be subject to a delisting risk warning by the Shanghai Stock Exchange. Investors are advised to pay attention to investment risks.

1. Reasons for possible delisting risk warning

According to preliminary calculations by the company's financial department, the company is expected to achieve a total profit of 34 million to 40 million yuan in 2025, and a net profit attributable to the owners of the parent company of 11 million to 16 million yuan.

Starting from the second quarter of 2025, the company's controlled subsidiary Shaanxi Ruisheng Biotechnology Co., Ltd. has experienced a significant decline in performance due to the impact of the "price war" caused by the increase in industry competitors due to the influence of national policies and the tightening of the original relevant preferential tax policies. The value of all shareholders' equity based on the original acquisition can no longer truly reflect its valuation. Therefore, the company signed a supplementary agreement with the counterparty Meilun Management Co., Ltd. (hereinafter referred to as "Meilun Company") to adjust the consideration based on the new evaluation report, from 9.35 100 million yuan was adjusted to 535.7 million yuan, and Meilun Company returned the transaction price difference of 399.3 million yuan as agreed in the supplementary agreement. The company originally believed that it could directly offset the initial investment cost of the long-term investment by RMB 399.3 million in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, and accordingly reduce the goodwill by RMB 399.3 million. However, based on further research on relevant regulations such as the "Accounting Standards for Business Enterprises" and based on the principle of prudence, the company's current performance is forecast based on the accounting treatment method of including the transaction difference returned by Meilun Company into non-operating income, and at the same time making a corresponding provision for goodwill impairment of approximately 399.3 million yuan. Since the increased profits from non-operating income are non-recurring gains and losses, they have no substantial impact on the company's total profits and net profits attributable to shareholders of the parent company, but the non-net profit deduction is negative, ranging from -400 million yuan to -390 million yuan.

It is expected that the company's annual operating income in 2025 and the operating income after deducting business income unrelated to the main business and income without commercial substance will be 190 million to 195 million yuan, less than 300 million yuan. The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses will be negative, which will trigger Article 9.3.2 of the Shanghai Stock Exchange Stock Listing Rules. Article (1) "The audited total profit, net profit, or net profit after deducting non-recurring gains and losses, whichever is lower, is negative and the operating income is less than 300 million yuan, or the total profit, net profit, or net profit after deducting non-recurring gains and losses for the most recent fiscal year, whichever is negative after retrospective restatement, is negative and the operating income is less than 300 million yuan." After the 2025 annual report is disclosed, a delisting risk warning may be implemented (add "*ST" before the company's stock abbreviation). Investors are kindly requested to pay attention to investment risks.

2. Estimated trading suspension of the company’s stocks and implementation arrangements for delisting risk warning

If the company's 2025 audited net profit and operating income after deducting non-recurring gains and losses touches the situation in item (1) of Article 9.3.2, paragraph 1, of the Shanghai Stock Exchange Stock Listing Rules, the company's stocks will be suspended from the date of disclosure of the 2025 annual report. If the disclosure day is a non-trading day, trading will be suspended from the next trading day. According to the "Shanghai Stock Exchange Stock Listing Rules", the Shanghai Stock Exchange will issue a delisting risk warning for the company's stocks within 5 trading days after the date of suspension of trading of the company's stocks, based on the actual situation. The company will make an announcement on the trading day before the stock is issued a delisting risk warning, and the company's stock will resume trading on the next trading day after the announcement. From the date of resumption of trading, the company's stocks will be subject to a delisting risk warning.

3. Estimated disclosure of previous risk warning announcements

According to Article 9.3.4 of the Shanghai Stock Exchange Stock Listing Rules: If a listed company anticipates that one of the circumstances specified in the first paragraph of Article 9.3.2 will occur, it shall disclose a risk warning announcement that its stocks may be subject to a delisting risk warning within one month after the end of the corresponding fiscal year, and disclose at least two more risk warning announcements before disclosing the annual report. This risk warning announcement is the first risk warning announcement that the company's stocks may be subject to a delisting risk warning. It is expected to disclose a second risk warning announcement before the disclosure of the 2025 annual report.

4. Other matters

The performance forecast based on which this risk warning is issued is a preliminary calculation made by the company's financial department based on the annual operating conditions and its own professional judgment and in accordance with the principle of prudence, and has not been audited by a certified public accountant. And the relevant accounting treatment methods have yet to be confirmed after further communication with the accountant. Different accounting treatment methods have different impacts on profits, income tax expenses, etc., and there is great uncertainty in the results. At the same time, because the goodwill impairment test has not yet been completed, there is also some uncertainty in the amount of goodwill impairment. Specific and accurate financial data shall be subject to the company's officially disclosed audited annual report for 2025. The company's designated information disclosure media are Securities Times and Securities Daily and the Shanghai Stock Exchange website (www.sse.com.cn). Information about the company is subject to the information disclosed by the company in the above designated media.

Investors are kindly requested to pay attention to investment risks.

Announcement is hereby made.

Board of Directors of Shanghai Haili Biotechnology Co., Ltd.

January 31, 2026