2025 Internal Control Evaluation Report

Company code: 688759 Company abbreviation: Bibet

Guangzhou Bibet Pharmaceutical Co., Ltd.

All shareholders of Guangzhou Bibet Pharmaceutical Co., Ltd.:

In accordance with the provisions of the "Basic Standards for Enterprise Internal Control" and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the Enterprise Internal Control Standard System), combined with the company's (hereinafter referred to as the company's) internal control system and evaluation methods, and on the basis of daily supervision and special supervision of internal control, we evaluated the effectiveness of the company's internal control on December 31, 2025 (the base date of the internal control evaluation report).

1. Important statement

In accordance with the provisions of the enterprise's internal control normative system, it is the responsibility of the company's board of directors to establish, improve and effectively implement internal control, evaluate its effectiveness, and truthfully disclose the internal control evaluation report. The Audit Committee oversees the company's establishment and implementation of internal controls. Managers are responsible for organizing and leading the daily operation of the enterprise's internal controls. The company's board of directors, directors and senior managers guarantee that there are no false records, misleading statements or major omissions in this report, and bear individual and joint legal liability for the authenticity, accuracy and completeness of the report content.

The goal of the company's internal control is to reasonably ensure legal compliance of operation and management, asset safety, authenticity and completeness of financial reports and related information, improve operating efficiency and effectiveness, and promote the realization of development strategies. Due to the inherent limitations of internal control, it can only provide reasonable assurance for achieving the above objectives. In addition, since changes in circumstances may cause internal controls to become inappropriate, or the degree of compliance with control policies and procedures to be reduced, there is a certain risk in inferring the effectiveness of future internal controls based on the results of internal control evaluations.

2. Conclusion of internal control evaluation

1. Whether the company has any major deficiencies in the internal control of financial reporting on the base date of the internal control evaluation report

□Yes √No

2. Conclusion of the evaluation of internal control over financial reporting

√Valid □Invalid

According to the identification of major deficiencies in the company's internal control over financial reporting, there were no major deficiencies in internal control over financial reporting on the base date of the internal control evaluation report. The board of directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the corporate internal control standard system and relevant regulations.

3. Whether significant deficiencies in internal control over non-financial reporting have been discovered

□Yes √No

According to the identification of major deficiencies in the company's internal control over non-financial reporting, the company found no major deficiencies in internal control over non-financial reporting on the base date of the internal control evaluation report.

4. Factors that affect the conclusion of the internal control effectiveness evaluation from the base date of the internal control evaluation report to the issuance date of the internal control evaluation report

□Applicable√Not applicable

There are no factors that affect the conclusion of the internal control effectiveness evaluation between the base date of the internal control evaluation report and the issuance date of the internal control evaluation report.

5. Whether the internal control audit opinion is consistent with the company’s evaluation conclusion on the effectiveness of internal control over financial reporting

√Yes □No

6. Whether the disclosure of major deficiencies in non-financial reporting internal control in the internal control audit report is consistent with the disclosure in the company’s internal control evaluation report

√Yes□No

3. Internal control evaluation work

(1). Scope of internal control evaluation

The company determines the main units, businesses and matters as well as high-risk areas included in the evaluation scope in accordance with the risk-oriented principle.

The main units included in the evaluation scope include: Guangzhou BeBetter Pharmaceutical Co., Ltd., Guangdong Keqing Pharmaceutical Co., Ltd., BeBetterPharma

Inc.

1. Proportion of units included in the evaluation scope:

Indicator Proportion (%) The total assets of the units included in the evaluation scope account for the total assets of the company's consolidated financial statements. 100 The total operating income of the units included in the evaluation scope accounts for 100 of the total operating income of the company's consolidated financial statements.

2. The main businesses and matters included in the scope of evaluation include:

Capital activities, procurement operations, fixed asset management, inventory management, sales operations, research and development (covering drug discovery, preclinical research, clinical trials, registration declarations, capitalization of R&D expenditures, etc.), engineering projects, business outsourcing, financial reporting, information systems, etc.

3. High-risk areas of focus include:

Research and development, engineering projects, business outsourcing, procurement operations, and capital activities.

4. The above-mentioned units, businesses, matters and high-risk areas included in the evaluation scope cover the main aspects of the company’s operation and management. Are there any major omissions?

□Yes √No

5. Whether statutory exemptions exist

□Yes √No

6. Other instructions

None.

(2). Basis for internal control evaluation and identification standards for internal control deficiencies

The company organizes and carries out internal control evaluation work based on the enterprise's internal control normative system and the internal control systems related to the company's departments and businesses.

1. Whether the specific identification standards for internal control deficiencies have been adjusted from previous years

□Yes√No

The company's board of directors determines major defects, important defects and general defects in accordance with the company's internal control standard system and in conjunction with the company's regulations.

model, industry characteristics, risk preference, risk tolerance and other factors, distinguish between financial reporting internal control and non-financial reporting internal control, and study to confirm

The specific identification standards for internal control deficiencies applicable to the Company have been determined and remain consistent with previous years.

2. Standards for identifying deficiencies in internal control over financial reporting

The quantitative standards for the evaluation of internal control deficiencies over financial reporting determined by the company are as follows:

Indicator Name Quantitative Standard for Major Defects Quantitative Standard for Important Defects Quantitative Standard for General Defects The amount of misstatement accounts for 5% of operating income/R&D expenses. The misstated amount <the amount of operating income/R&D expenses/R&D expenses. 2%≤misstated amount≤2% of operating income/development expenses.

Ratio: 5% of R&D expenses

The amount of misstatement accounts for 2% of total assets. The amount of misstatement is less than 2% of total assets. The amount of misstatement is less than 2% of total assets. The amount of misstatement is less than 2% of total assets.

Description:

The quantitative standard is determined based on the lower principle of the two indicators. Among them, "operating income/R&D expenses" is measured based on the total R&D expenses before the company's new drug research and development is approved for production and launched for large-scale sales.

The qualitative standards for the evaluation of internal control deficiencies over financial reporting determined by the company are as follows:

Nature of defects Qualitative standards

Major defects: The following situations will be identified as major defects, and other situations will be determined as important defects or general defects according to the degree of impact.

(1) The company’s control environment is ineffective;

(2) Fraudulent conduct by company directors and senior managers;

(3) The external audit found that there was a material misstatement in the current financial report, but the company's internal control failed to detect the misstatement during operation;

(4) Major deficiencies that have been discovered and reported to the company’s management are not corrected within a reasonable time; (5) The company’s audit committee and audit department have ineffective supervision of internal controls;

(6) Correct misstatements for major errors in announced financial reports;

(7) Other defects that may affect the correct judgment of users of financial reports.

Important deficiencies are deficiencies that alone or in combination with other deficiencies result in the inability to timely prevent or detect and correct financial statements that are not satisfactory

Misstatements that meet or exceed the level of materiality but should still attract the attention of the board of directors and management.

General deficiencies are other deficiencies in internal control over financial reporting that do not constitute major deficiencies or important deficiencies. Description:

None.

3. Standards for identifying deficiencies in internal control over non-financial reporting

The quantitative standards for the evaluation of non-financial reporting internal control deficiencies determined by the company are as follows:

Indicator name Quantitative standard for major defects Quantitative standard for important defects Quantitative standard for general defects Direct property loss Amount of direct property loss ＞ Operating income/R&D expenses Direct property loss amount ＜5% of operating income/R&D expenses 2% ≤ Direct property loss amount ≤ 2% of operating income/R&D expenses Proportion of development expenses 5% of operating income/R&D expenses Direct property loss Amount of direct property loss ＞ Capital 1% of total assets ≤ direct financial The amount of direct property loss < the ratio of capital to total assets 2% of total assets The amount of direct property losses ≤ the ratio of total assets 1% of total assets

Example 2%

Description:

The quantitative standard is determined based on the lower principle of the two indicators. Among them, "operating income/R&D expenses" is measured based on the total R&D expenses before the company's new drug research and development is approved for production and launched for large-scale sales.

The qualitative standards for the evaluation of non-financial reporting internal control deficiencies determined by the company are as follows:

Nature of defects Qualitative standards

Major defects: The following situations will be identified as major defects, and other situations will be determined as important defects or general defects according to the degree of impact.

(1) Violate national laws, regulations or normative documents;

(2) Major decision-making procedures are unscientific;

(3) Lack of system may lead to systemic failure;

(4) Major defects cannot be rectified;

(5) Other situations that have a significant impact on the company.

Important flaws (1) There are flaws in the company’s important business systems or systems;

(2) Important deficiencies in internal control have not been rectified in a timely and effective manner;

(3) Other situations that may have a greater negative impact on the company. General deficiencies refer to other internal control deficiencies other than the above-mentioned major deficiencies and important deficiencies. Description:

None.

(3). Identification and rectification of internal control deficiencies

1. Identification and rectification of internal control deficiencies over financial reporting

1.1. Major defects

Whether the company has any major deficiencies in internal control over financial reporting during the reporting period

□Yes√No

1.2. Important defects

Whether the company has any important deficiencies in internal control over financial reporting during the reporting period

□Yes √No

1.3. General defects

None.

1.4. After the above rectification, on the base date of the internal control evaluation report, does the company have any major deficiencies in the internal control of financial reporting that have not been rectified?

□Yes√No

1.5. After the above rectification, on the base date of the internal control evaluation report, does the company have any important deficiencies in the internal control of financial reporting that have not been rectified?

□Yes√No

2. Identification and rectification of internal control deficiencies in non-financial reporting

2.1. Major defects

Whether the company discovered any major deficiencies in non-financial reporting internal control during the reporting period

□Yes√No

2.2. Important flaws

Whether the company discovered any important deficiencies in non-financial reporting internal control during the reporting period

□Yes √No

2.3. General defects

None.

2.4. After the above rectifications, on the base date of the internal control evaluation report, has the company discovered any major deficiencies in the internal control of non-financial reporting that have not yet been rectified?

□Yes√No

2.5. After the above rectifications, on the base date of the internal control evaluation report, has the company discovered any important deficiencies in the internal control of non-financial reporting that have not yet been rectified?

□Yes√No

4. Description of other major matters related to internal control

1. Rectification of internal control deficiencies in the previous year

□Applicable √Not applicable

2. Internal control operation status this year and improvement directions for the next year

√Applicable □Not applicable

During the reporting period, the company maintained effective internal control in all major aspects in accordance with the requirements of the corporate internal control standard system and relevant regulations. In the future, the company will continue to strictly comply with the provisions of the "Basic Standards for Enterprise Internal Control" and its supporting guidelines and the requirements of superior supervisory departments, constantly improve and revise the internal control system, sort out and optimize various business processes, further strengthen the construction and implementation of the internal control system, strengthen supervision and inspection, optimize the internal control environment, effectively prevent various risks through internal control, promote the company's healthy and sustainable development, and provide reasonable guarantee for the realization of the company's economic benefits and strategic goals.

3. Description of other significant matters

□Applicable √Not applicable

Chairman (authorized by the board of directors): Qian Changgeng QIANCHANGGENG Guangzhou Bibet Pharmaceutical Co., Ltd.

April 25, 2026