Summary of Nanwei's 2025 Annual Report

Jiangsu Nanfang Weicai Pharmaceutical Co., Ltd. 2025 Annual Report Summary Company Code: 603880 Company Abbreviation: Nanfang Pharmaceutical Co., Ltd.

Jiangsu Nanfang Health Care Pharmaceutical Co., Ltd.

2025 Annual Report Summary

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

Section 1 Important Tips

1. The summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plans, investors should go to www.sse.com.cn to read the full text of the annual report carefully.

2. The company’s board of directors, directors and senior managers guarantee the authenticity, accuracy and completeness of the contents of the annual report and that there are no false records, misleading statements or major omissions, and bear individual and joint legal liability.

3. All directors of the company attend the board meeting.

4. Tianheng Accounting Firm (Special General Partnership) issued a standard unqualified audit report for the company.

5. The profit distribution plan for the reporting period or the plan for converting public reserve funds into share capital approved by the board of directors

Audited by Tianheng Accounting Firm (Special General Partnership), as of December 31, 2025, the company's 2025 consolidated statement net profit attributable to shareholders of the listed company was -101,710,550.82 yuan, and the parent company achieved a net profit of -46,122,8 84.92 yuan. According to the relevant provisions of the "Company Law" and the "Articles of Association", no surplus reserve will be accrued that year. Adding the undistributed profit of 138,311,223.97 yuan at the beginning of the year, the actual profit available for distribution in 2025 will be 92,188,339.05 yuan.

In view of the fact that the company's consolidated statements for 2025 have not achieved profitability, the company's board of directors, in order to ensure the company's sustainable and stable operations and the long-term interests of all shareholders, has comprehensively considered the company's 2026 business plan and capital needs, and formulated the profit distribution plan for 2025 as follows: no profit distribution, no cash dividends, no bonus shares, and no capitalization of public reserve funds.

The above profit distribution plan still needs to be reviewed and approved by the company's 2025 annual shareholders' meeting.

As of the end of the reporting period, the parent company had unrecovered losses and its impact on the company’s dividends and other matters

□Applicable √Not applicable

Section 2 Basic Information of the Company

1. Company profile

Company Stock Profile

Stock type Stock listing exchange Stock abbreviation Stock code Stock abbreviation before change A shares Shanghai Stock Exchange Nanwei Shares 603880 -

Contact and Contact Information Board Secretary Securities Affairs Representative

Name Xu Linye Zhang Yumeng

Contact address No. 1, Guoxiang Road, Wujin Economic Development Zone, Jiangsu Province No. 1, Guoxiang Road, Wujin Economic Development Zone, Jiangsu Province

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

Phone 0519-86361837 0519-86361837

Fax 0519-86363601 0519-86363601

Email [email protected] [email protected]

2. Introduction to the company’s main business during the reporting period

The pharmaceutical industry is a strategic industry related to the national economy and people's livelihood, economic development and national security, and is an important foundation for the construction of a healthy China. Currently, our country is in a critical transition period between the deepening implementation of the "14th Five-Year Plan" and the forward-looking layout of the "15th Five-Year Plan". It is also a critical stage for the pharmaceutical industry to transform from factor-driven to innovation-driven and achieve high-quality development.

During the "14th Five-Year Plan" period, the world's major changes unseen in a century are accelerating and the new journey of my country's socialist modernization construction is starting to merge with each other. The reform of the medical and health system is comprehensively deepened, and the internal and external environment for the development of the pharmaceutical industry will undergo complex and profound changes. The global pharmaceutical industry structure is facing adjustment. Countries are paying more and more attention to the strategic position of the pharmaceutical industry, and international competition in terms of talents, technology, etc. is becoming increasingly fierce. At the same time, economic globalization has encountered countercurrents, and the industrial and supply chains have been reshaped at an accelerated pace, which has brought challenges to the export of my country's traditional advantageous products and their extension to higher value chains. The new stage of development has put forward higher requirements for the pharmaceutical industry. China's "15th Five-Year Plan" (2026-2030) proposes a core development path of "improving quality, increasing efficiency, and transforming to digital intelligence" for the traditional medical supplies industry to promote the upgrading of the industry from basic protection to precision service. The state continues to release incremental demand for mid- to low-end medical supplies through the grassroots medical equipment update plan and special subsidies for new medical infrastructure. It is expected that the market size of traditional medical consumables will exceed 220 billion yuan in 2025.

China's "15th Five-Year Plan" (2026-2030) has injected strong development momentum into the traditional medical supplies industry, pushing the industry to a new stage of high-quality development through the triple drive of policy guidance, technological innovation and market expansion. From a policy perspective, the state takes the "Healthy China 2030" Planning Outline as the core and issues special documents such as the "Medical Consumables Technology Innovation Support Policy" to fully stimulate the innovation vitality of enterprises through R&D subsidies and tax incentives. In the field of technological innovation, the coverage of AI quality inspection systems has increased to 60%, achieving a 50% jump in sterility testing efficiency of traditional dressings, syringes and other products. Internet of Things technology has promoted the remote data interaction coverage of blood glucose meters, blood pressure monitors and other household devices to exceed 40%, accelerating the intelligent upgrade of traditional products. From the market demand side, the grassroots medical equipment update plan will release hundreds of billions of increments. In 2025, the coverage rate of CT and DR equipment in county medical institutions will exceed 90%, and the demand for emergency equipment configuration will increase by 15% annually, driving the traditional medical consumables market to exceed 220 billion yuan. The process of internationalization has accelerated significantly. In 2025, the export value of medical supplies will reach 80 billion yuan, a year-on-year increase of 15%. The emerging markets of the "Belt and Road" have contributed more than 30% of the increase. The import demand for traditional medical supplies in Southeast Asia has increased by 20% annually. Domestic equipment has accelerated its substitution of imports with its high cost performance advantage. The traditional medical supplies industry will continue to consolidate basic medical supply capabilities under the synergy of precise policy support, in-depth technological empowerment and multi-dimensional market expansion, while leaping towards smart services, global ecology, and circular manufacturing.

(1) Company business model

The company is mainly engaged in the research and development, production and sales of transdermal products, medical tapes and bandages, first aid kits, sports protection products, protective products, nursing products and other products. It is a high-tech enterprise integrating the research and development, manufacturing and sales of pharmaceutical products. According to the "National Economic Industry Classification" (GB/T4754-2017), the company's main business industry is "Health Materials and Medical Supplies Manufacturing (C2770)" in "Pharmaceutical Manufacturing (C27)". At present, product series such as plasters, band-aids, dressings, medical tapes and bandages, first aid kits, sports protection supplies, protective supplies, and nursing supplies have been formed.

1. Transdermal products

Transdermal products are drug delivery preparations that are coated or applied to the surface of the skin. The drug is absorbed through the skin through capillaries and enters the systemic blood circulation. After reaching an effective blood drug concentration, it acts on various tissues or diseased parts. Bactericides can also be used to change the permeability of bacterial cytoplasmic membranes, promote the extravasation of bacterial cytoplasmic substances, and hinder bacterial metabolism to achieve sterilization and achieve disease prevention or treatment effects. The company's transdermal products mainly include plasters, dressings and band-aids.

2. Medical tape and bandages

Medical adhesive tape is made of non-woven fabric, silk, PE film, etc. as the base material and is made through a special breathable coating process. It is suitable for fixing infusion needles, fixing various dressings and medical bandaging. It has the characteristics of firm adhesion and not easy to fall off. Medical bandages are mainly made of non-woven fabrics, cotton, gauze and other base materials, and the surface is coated with self-adhesive materials such as natural rubber or synthetic glue. They are suitable for bandaging and fixing the head, chest, abdomen, back, limbs and open wounds after applying medicine. They have the characteristics of self-adhesive bonding, good stability and good fixation.

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

3. Protective equipment

The company's protective products are centered on nitrile gloves. The products cover daily civilian scenarios and professional medical scenarios. They are widely used in daily life scenarios such as food processing, housework cleaning, and daily care. They can also meet the professional protection needs of medical staff in ordinary medical environment operations, as well as the professional protection needs of clinical medical staff in invasive operating environments.

4. First aid kit

According to the needs of different scenarios, band-aids, tapes, bandages and other first-aid necessities are integrated and configured, and equipped with common first-aid supplies for travel, which can realize core functions such as wound care, disinfection, hemostasis, analgesia, bandaging, and fixation.

5. Sports protection products and care products

Focusing on sports injury prevention, on-site first aid treatment and rehabilitation training scenarios, it provides various protection and protection products. It is a professional dressing product that can provide performance support and protection for muscles and joints.

(2) Company business model

1. Procurement model

(1) Procurement method

The company adopts a "purchase-to-sales" purchasing model, that is, purchasing raw materials based on production orders; for new varieties of products, a small amount of raw materials are prepared in advance based on product production license approval and production research and development progress. The purchased products involved are divided into two categories: main materials and auxiliary materials. The main materials are cloth, rubber and zinc oxide, etc., and the auxiliary materials are mainly rosin resin, glue and packaging materials. Based on the arrangements of the production planning department and the inventory status provided by the warehousing and logistics department, as well as the dynamics of suppliers and raw material markets, the company's procurement and supply department adopts a unified inquiry method to determine the purchase batch and unit price, and sign a purchase contract. The Quality Department is responsible for material inspection, the Warehousing and Logistics Department is responsible for warehousing and inventory management, and the Finance Department pays the purchase price according to the purchase contract.

(2) Procurement management

In order to ensure the quality of purchased products and standardize procurement behavior, the company has formulated a procurement management system, which clarifies the approval decision-making procedures for material procurement, procurement processes, responsibilities and professional requirements of the procurement and supply department, etc., and makes timely revisions according to the actual situation.

(3) Supplier management

The company implements a strict supplier selection mechanism in accordance with the "Supplier Management System". The evaluation team is composed of the Purchasing and Supply Department, Production Planning Department, Quality Department, etc. to evaluate the supplier's qualifications, manufacturing capabilities, industry performance, quality management capabilities, quality assurance system, supply scope, delivery date and other information. It also conducts on-site reviews of suppliers of key materials and selects suppliers that meet the requirements. The evaluation team regularly organizes evaluations of suppliers' supply quality, delivery time, price, service, etc., fills out the "Qualified Supplier Quality Record Evaluation Form" every month, fills out the "Supplier Annual Evaluation Record" every year, and uses the evaluation results as a reference for whether to continue to be included in the supplier list.

2. Production mode

The company adopts the production model of "production determined by sales", that is, it organizes production based on order-based services based on customer needs. For large customers with long-term cooperation, in order to ensure service quality, the company regularly understands customer demand information on a "year, month, and week" basis, prepares necessary raw materials in a timely manner, formulates production plans and organizes production after customers formally place orders; for small and medium-sized customers, because their needs are characterized by multiple batches, small batches, and non-standardization, the company organizes production according to customer customization requirements in order to adapt to the market. For private label products, stocks will be appropriately stocked based on market demand.

The company's sales department releases the next monthly sales plan to the production planning department at the end of each month. The production planning department determines production tasks based on production capacity and orders from the sales department, and implements refined management based on specific order conditions to control production progress.

3. Sales model

The company's business is mainly based on the ODM model; in recent years, it has gradually increased its efforts in the development and market expansion of independent brand products. Based on the original "Miaoshou" series of products, it has focused on the development of independent brand products such as first aid kits, sports protection supplies, protective supplies, and nursing supplies.

(1) Domestic market sales model

The domestic sales business mainly includes the sales of the company's own brand "Miaoshou" band-aids, plasters, tapes and bandages, first aid kits, protective equipment and other products. The company organizes production every month based on the historical sales scale, and then sells it externally by sales clerks. Domestic industry

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

The sales model of the service is a buy-out sale. The risks and benefits of the goods after delivery belong to the customer, and the company is not responsible for the final sale of the goods.

The delivery modes of domestic sales business are divided into the following three types: customer pick-up, company delivery and logistics express delivery.

(2) International market sales model

The sales model in the international market is mainly divided into sales business of foreign brands and sales business of domestic foreign trade companies. The details are as follows: ① Sales business of foreign brands

Some internationally renowned medical dressing brands have requested the company for large quantities of customized R&D or manufacturing products based on their respective market conditions and consumer needs. The company organizes production according to the actual order requirements of this type of customers. After passing the inspection, it will be shipped and transported, and it will make customs declarations by itself or by entrusting a third-party agent.

②Domestic and foreign trade company sales business

The business of domestic foreign trade companies is an export-oriented distribution model, and products are customized according to the requirements of brand owners. The brand customer's trademark is printed on the product, and the product has the characteristics of strong specificity and high degree of identification difference. Before the foreign trade company issues a purchase order to the company, it has obtained the production requirements of the terminal brand customer. The company will produce directly after obtaining the order. After the product is completed, it will communicate with the foreign trade company about shipping matters. Before shipment, the foreign trade company will send a warehousing notice to the company on its own or through an agency. The company will send the product to the designated export customs declaration warehouse based on the information in the warehousing notice and obtain the warehouse entry acceptance form. After the shipment is completed, the dealer will declare customs on its own or entrust a third-party agent. The company provides products to foreign trade companies according to orders, which is a buyout sale. After delivery, the risks and benefits belong to the foreign trade company.

(3) The company’s market position

After more than 30 years of business development, the company has become a medical device manufacturer with strong market influence. Based on the operating characteristics of the medical device industry, the company combines its own advantages and the cluster effect of the textile industry in the Yangtze River Delta region to quickly meet the needs of domestic and foreign customers. Through long-term and stable cooperation with overseas customers, a business model based on ODM has been formed. At the same time, it has continuously increased the proportion of direct sales, achieved a market layout of coordinated development of domestic and overseas markets, and has become a leading band-aid production base in the country.

3. The company’s main accounting data and financial indicators

3.1 Main accounting data and financial indicators in the past three years

Unit: Yuan Currency: RMB This year compared with the previous year

2025 2024 2023

Increase or decrease(%)

Total assets 927,941,972.34 1,056,553,004.60 -12.17 1,277,326,306.30 Attributable to listed companies

Net capital of shareholders of the company 177,190,383.56 279,286,644.13 -36.56 469,268,077.30 assets

Operating income 600,511,608.59 602,615,333.02 -0.35 600,095,343.68 Total profit -93,143,801.75 -200,858,936.76 53.63 -148,519,222.47 Deductions and main business

irrelevant business

income and lack of

599,721,482.45 602,011,652.93 -0.38 599,663,836.24 Income from commercial substance

operating income after

enter

Belongs to listed companies

Net profit of shareholders of the company -101,710,550.82 -190,668,979.26 46.66 -147,417,266.38 profit

Attributable to listed companies -105,151,773.96 -187,730,938.44 43.99 -146,956,739.94

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

Deductions for corporate shareholders

Non-recurring gains and losses

net profit

generated by business activities

Net cash flow 47,731,346.33 63,320,497.91 -24.62 15,509,532.60

Weighted average net assets increased by 8.12%

-44.56 -52.68 -27.15Profit rate (%) Points

basic earnings per share

-0.35 -0.66 46.97 -0.51 (yuan/share)

diluted earnings per share

-0.35 -0.66 46.97 -0.51 (yuan/share)

3.2 Main accounting data by quarter during the reporting period

Unit: Yuan Currency: RMB First quarter Second quarter Third quarter Fourth quarter

(January to March) (April to June) (July to September) (October to December) Operating income 170,922,078.18 135,153,824.88 141,229,954.25 153,205,751.28 Net attributable to shareholders of listed companies

-7,917,932.55 -5,049,781.29 -11,960,400.07 -76,782,436.91Profit

Deductions attributable to shareholders of listed companies

Net profit excluding recurring gains and losses -8,399,205.16 -7,001,124.62 -12,996,063.49 -76,755,380.69 profit

cash flow from operating activities

7,452,517.90 27,742,592.27 -8,311,164.88 20,847,401.04 Net

Explanation of differences between quarterly data and disclosed periodic report data

□Applicable √Not applicable

4. Shareholder situation

4.1 The total number of common shareholders, the total number of preferred shareholders with restored voting rights, the total number of shareholders holding shares with special voting rights and the top 10 shareholders at the end of the reporting period and the end of the month before the annual report is disclosed

Unit: Total number of ordinary shareholders (households) as of the end of the reporting period 10,733 Total number of common shareholders (households) as of the end of the previous month before the date of disclosure of the annual report 10,733 Total number of preference shareholders (households) whose voting rights have been restored as of the end of the reporting period

Total number of preference shareholders (households) whose voting rights were restored at the end of the previous month before the annual report disclosure date

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

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

Hold Pledge, Mark or Freeze

limited situation

Name of shareholder Number of shares held at the end of the reporting period Proportion of shares Shareholder (full name) Increase or decrease Amount (%) Number of shares Nature

Share Status

Quantity

Domestic Li Ping 0 118,841,048 41.12 0 Pledge 92,400,000 Natural person

Domestic Xudong 0 12,941,000 4.48 0 Pledge 12,700,000 Natural person

Domestic Li Yongping 0 9,639,338 3.33 0 Pledge 9,639,338 Natural person

Domestic Li Yongzhong 0 8,080,029 2.80 0 None Natural person

Domestic Suzhou Lanying Venture Investment Co., Ltd.

0 7,330,505 2.54 0 None

Partnership (limited partnership) with legal person

Domestic Niuhuaxiang -741,700 3,089,100 1.07 0 None Natural person

Domestic Goldman Sachs & Co., Ltd. African

2,440,833 2,681,958 0.93 0 None

Division has law

Agricultural Bank of China Co., Ltd.

Co., Ltd.-China Securities Co., Ltd.

2,177,230 2,407,130 0.83 0 None Other 500 Index Enhanced Securities

investment fund

Domestic Wangxuan -946,200 2,128,300 0.74 0 None Natural person

Domestic Li Fei 0 2,001,000 0.69 0 Pledge 2,001,000 Natural

The above-mentioned shareholders are related or acting in concert. Mr. Li Ping, Mr. Li Yongping and Mr. Li Yongzhong are brothers. There is a related relationship and they are persons acting in concert. In addition, the company is not yet aware of whether there is any related relationship among the other shareholders mentioned above, nor whether they are members of the Shanghai Stock Exchange.

Persons acting in concert as stipulated in the Municipal Company Acquisition Management Measures.

Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd. 2025 Annual Report Summary Preferred shareholders and shareholdings with restored voting rights

None

Description of quantity

4.2 Block diagram of the property rights and control relationship between the company and its controlling shareholder √ Applicable □ Not applicable

4.3 Block diagram of the property rights and control relationship between the company and the actual controller √ Applicable □ Not applicable

4.4 The total number of preferred shareholders of the company and the top 10 shareholders at the end of the reporting period □Applicable √Not applicable

5. Corporate bonds

□Applicable √Not applicable

Section 3 Important Matters

1. The company shall, in accordance with the principle of materiality, disclose major changes in the company’s operating conditions during the reporting period, as well as any changes that occurred during the reporting period.

Summary of the 2025 Annual Report of Jiangsu Nanfang Weisai Pharmaceutical Co., Ltd.

Matters that have a significant impact on the company's operating conditions and are expected to have a significant impact in the future.

During the reporting period, the operating income in 2025 was 600.5116 million yuan, a decrease of 2.1037 million yuan compared with the same period last year; the net profit attributable to shareholders of the parent company was -101.7106 million yuan, an increase of 88.9584 million yuan compared with the same period last year; the net assets attributable to shareholders of the parent company were 177.1904 million yuan, and basic earnings per share were -0.35 yuan.

2. If there is a delisting risk warning or listing termination after the company's annual report is disclosed, the reasons that led to the delisting risk warning or listing termination should be disclosed.

□Applicable √Not applicable