/*ST Bio: 2025 Annual Report

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*ST Bio: 2025 Annual Report

Shenzhen Stock Exchange

2026/04/29

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

【April 2026】

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report 2025 Annual Report

Section 1 Important Tips, Table of Contents and Definitions

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

Yang Yun, the person in charge of the company, Lin Pengbin, the person in charge of accounting work, and Chen Yi, the person in charge of the accounting department (accounting supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in this annual report. All directors have attended the board meeting where this report was considered.

The forward-looking statements such as future plans involved in this report do not constitute the company's substantive commitment to investors. Investors and related parties should maintain adequate risk awareness and understand the differences between plans, forecasts and commitments. The company discusses the “ten

"I. Prospects for the Company's Future Development" section describes in detail the risks and countermeasures that may exist in the company's operations. Investors are kindly requested to pay attention to the relevant content.

none.

The company plans not to distribute cash dividends, give away bonus shares, or convert public reserve funds into share capital.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

1. Company information

Stock abbreviation *ST Biotech stock code 000504 Stock abbreviation before change (if any) Not applicable.

Stock exchange where stocks are listed Shenzhen Stock Exchange

The Chinese name of the company: Nanhua Biopharmaceutical Co., Ltd.

The company’s Chinese abbreviation: Nanhua Biotechnology

Company’s foreign name (if any) Landfar Bio-medicine Co.,Ltd

The abbreviation of the company’s foreign name (such as

Landfar

Yes)

The legal representative of the company Yang Yun

Registered address: 3rd Floor, Building B1, Lugu Science and Technology Innovation and Entrepreneurship Park, No. 1698 Yuelu West Avenue, Changsha High-tech Zone Postal code of the registered address 410205

The company's original registered address is 13th Floor, Caixin Building, No. 3 Chengnan West Road, Tianxin District, Changsha City. The company registered on September 3, 2020

The second extraordinary general meeting of shareholders held in 2020 reviewed and approved the "Proposal on the overall relocation of the company and the signing of the "Historical Change of Registered Address of the Project Investment Company Construction Contract", and agreed that the company will relocate the headquarters (listed entity) and the industrial, commercial and tax relations of the relevant holding company to the Changsha National High-tech Industrial Development Zone. For details, please see the company's website on cninfo.com

Announcements 2020-039, 2020-040, 2020-051 and 2021-033 of (www.cninfo.com.cn). Office address: 3rd floor, Building B1, Lugu Science and Technology Innovation and Entrepreneurship Park, No. 1698 Yuelu West Avenue, Changsha High-tech Zone Postal code 410205

Company website www.landfar.com

Email [email protected]

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Su Liang

Lugu Branch, No. 1698 Yuelu West Avenue, Changsha High-tech Zone

Contact address

3rd Floor, Building B1, Technology Innovation and Entrepreneurship Park

Phone 0731-85810285

Fax 0731-85810285

Email [email protected]

3. Information disclosure and preparation location

The website of the stock exchange where the company discloses its annual report "Securities Times", "Shanghai Securities News" and cninfo.com The name and website of the media where the company discloses its annual report http://www.cninfo.com.cn The place where the company's annual report is prepared Office of the company's board of directors

4. Registration changes

Unified social credit code 91430000700227986F

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Before 1999, the company was mainly engaged in real estate development and operation, hotel management; 1999 - changes in the company's main business since its listing (if any). In 2015, the company was mainly engaged in publishing and media; from 2015 to present, the company was mainly engaged in biomedicine and cell technology services, and from 2016 to present, it has added energy conservation and environmental protection as its main business.

Caixin Financial Holdings, the investor of Hunan State Investment Corporation, the company's original controlling shareholder, made strategic adjustments to its holdings of 79,701,655 shares of the company (accounting for 25.58% of the company's total share capital) and transferred the above shares to Caixin Industry Fund free of charge. After the free equity transfer was completed in November 2019, Caixin Industrial Fund held 79,701,655 shares of the company (accounting for 25.58% of the company’s total share capital). Previous changes in controlling shareholders (if any)

Is the company's largest shareholder. After the transfer is completed, the actual controller of the company has not changed and is still the People's Government of Hunan Province. For details on the above matters, please refer to the relevant announcements issued by the company (announcement numbers: 2017-013, 2017-014, 2019-040, 2019-049). Except for the above-mentioned free transfer, there are no other changes in the company's controlling shareholder.

5. Other relevant information

Accounting firm hired by the company

Name of accounting firm Zhongshen Zhonghuan Accounting Firm (Special General Partnership)

Office address of Changjiang Industrial Accounting Firm, No. 166, Zhongbei Road, Guoguohu Street, Wuchang District, Wuhan City, Hubei Province

Building 17-18F

Name of the signing accountant: Lu Jian, Chen Ji

The sponsor institution hired by the company to perform continuous supervision responsibilities during the reporting period

☑Applicable □Not applicable

Name of the sponsoring institution Office address of the sponsoring institution Name of the sponsoring representative Period of continuous supervision

Dongxin Street, Xincheng District, Xi'an City, Shaanxi Province January 10, 2024-2025 Western Securities Co., Ltd. He Si, Qu Xiaolong

Room 10000, Building 8, No. 319 December 31

Financial consultant hired by the company to perform continuous supervision duties during the reporting period

□Applicable ☑Not applicable

6. Main accounting data and financial indicators

Whether the company needs to retroactively adjust or restate previous years’ accounting data

□Yes ☑No

2025 2024 Increase or decrease this year compared with the previous year 2023

Operating income (yuan) 415,939,732.49 134,447,796.85 209.37% 136,790,924.97 Attributable to shareholders of the listed company

28,828,686.12 -19,846,018.35 245.26% -28,172,625.54 Net profit (yuan)

Attributable to shareholders of listed companies

Net profit (yuan) after deducting non-recurring gains and losses 10,690,296.17 -29,189,686.07 136.62% -42,425,832.49

Cash generated from operating activities

-115,735,347.51 4,793,582.85 -2,514.38% 36,276,713.53 Net flow (yuan)

Basic earnings per share (yuan/

0.09 -0.06 250.00% -0.0900 shares)

Diluted earnings per share (yuan/

0.09 -0.06 250.00% -0.0900 shares)

weighted average net asset income

11.46% -8.03% 19.50% 0.00% rate

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

End of 2025 End of 2024 Increase or decrease at the end of this year compared with the end of the previous year Total assets at the end of 2023 (yuan) 991,731,003.76 608,169,817.97 63.07% 771,382,516.09 Attributable to shareholders of listed companies

265,751,170.73 237,095,180.02 12.09% Net assets of 256,941,198.37 (yuan)

The company's net profit before and after deducting non-recurring gains and losses in the past three fiscal years, whichever is lower, is negative, and the audit report for the most recent year shows that there is uncertainty in the company's ability to continue operating.

□Yes ☑No

The lower of the company's total audited profit, net profit, and net profit after deducting non-recurring gains and losses during the reporting period is negative.

□Yes ☑No

7. Differences in accounting data under domestic and foreign accounting standards

Differences in net profit and net assets in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards

□Applicable ☑Not applicable

During the reporting period, there was no difference between the net profit and net assets in the financial reports disclosed in accordance with international accounting standards and Chinese accounting standards.

Differences in net profit and net assets in financial reports disclosed in accordance with both foreign accounting standards and Chinese accounting standards

□Applicable ☑Not applicable

During the reporting period, there was no difference between the net profit and net assets in the financial reports disclosed in accordance with foreign accounting standards and Chinese accounting standards.

8. Main financial indicators by quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter operating income 22,453,576.28 29,138,550.37 31,846,328.33 332,501,277.51 Attributable to shareholders of listed companies

-2,218,632.26 -1,265,780.61 8,716,747.48 23,596,351.51 net profit

Attributable to shareholders of listed companies

Net profit after deducting non-recurring gains and losses -3,456,902.87 -3,199,281.57 7,053,860.31 10,292,620.30

Cash generated from operating activities

-825,292.27 -2,135,208.71 20,285,385.92 -133,060,232.45 Net flow

Are there any significant differences between the above financial indicators or their totals and the relevant financial indicators disclosed by the company in quarterly reports and semi-annual reports?

□Yes ☑No

9. Non-recurring profit and loss items and amounts

☑Applicable □Not applicable

Unit: Yuan

Item Amount in 2025 Amount in 2024 Amount in 2023 Explanation of loss on disposal of non-current assets

Profit (including accrued assets

-700,401.10 155,702.85 11,904,188.07

Write-off Department of Impairment Provisions

points)

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Government included in current profits and losses

Subsidy (normally related to the company’s

business operations are closely related to

In line with national policies and regulations, according to

11,539,441.39 1,006,772.18 1,434,444.09 Enjoy according to determined standards,

Have a lasting impact on the company's profits and losses

Except for government subsidies that affect

outside)

In addition to the normal business operations of the same company

effective hedging

In addition to value business, non-financial enterprises

The industry holds financial assets and gold

2,272,050.60 363,567.94 33,183.19 Fair value of financial liabilities

Gains and losses from changes in value and disposals

Financial assets and financial liabilities

Profit and loss incurred

Entrust others to invest or manage

6,119,452.04 6,050,621.15 989,054.86 Profit and loss from assets

Separate impairment test

Transfer of impairment provision for accounts receivable 4,193,255.02 times

In addition to the above items, other

-302,347.64 -37,603.07 1,004,384.05 Other non-operating income and expenses

Less: Income tax impact 280,607.28 145,986.92 193,024.62

Effects of minority shareholders’ interests

509,198.06 2,242,661.43 919,022.69 amount (after tax)

Total 18,138,389.95 9,343,667.72 14,253,206.95 --

Details of other profit and loss items that meet the definition of non-recurring profits and losses:

□Applicable ☑Not applicable

The company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.

Explanation on defining the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Profit and Loss" as recurring profit and loss items

□Applicable ☑Not applicable

The company does not define the non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Profit and Loss" as recurring profit and loss items.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Section 3 Management Discussion and Analysis

1. The main business of the company during the reporting period

(1) Main content of products or services

Biomedicine

The company's biomedicine sector mainly provides cellular medical services, which provides customers with testing and storage services for stem cells, immune cells and other biological resources. It also cooperates with a number of hospitals and clinical research institutions to provide them with cell preparation, testing and other services that meet clinical research requirements. In order to improve its comprehensive service capabilities, the company has expanded the provision of biomedicine-related products based on the needs of downstream customers. The company's biopharmaceutical business is mainly operated through Nanhua Biotechnology, Boai Kangmin, Nanhua Stem Cell Transformation, and Aishiweimin. The main products and services are as follows:

Serial number Product/Service Product/Service Description

The company's cell storage business consists of two major segments: neonatal stem cell storage and adult immune cell storage. Neonatal stem cell storage mainly provides detection, preparation and storage services of neonatal hematopoietic stem cells, neonatal mesenchymal stem cells, and neonatal sub-totipotent stem cells. Adult immune cell 1 cell storage and technical services

Cell Storage mainly provides immune cell detection, preparation and storage services for adults who are concerned about health and disease risk prevention. At the same time, the company cooperates with a number of hospitals and clinical research institutions to provide them with cell preparation, testing and other services that meet clinical research requirements.

Selling beauty products, health products, air purifiers, etc. to customers to enrich business layout and meet the needs of 2 Sales of biomedical related products

Diversified needs of customers.

Energy saving and environmental protection

During the reporting period, the company's energy conservation and environmental protection business, on the one hand, further focused on the circular economy track, focusing on new energy material recycling business, scrap steel recycling resource business, processing and sales, etc., which are operated by Jinhong New Materials and Jindalu Environmental Protection; on the other hand, it is the original energy conservation and environmental protection business segment, including energy conservation engineering and product R&D and sales, comprehensive treatment of sewage in special industries, investment and operation of distributed energy stations, etc., mainly relying on Chengguang Energy Saving (sold in October 2025), Nanhua Energy Conservation and Environmental Protection, and Nanhua Yuanfang. The specific main products and services are as follows:

Serial number Product/Service Product/Service Description

Mainly through mature wet lithium extraction and other processes, we produce lithium carbonate and other by-products to achieve lithium-containing waste1 new energy material recycling business

The recycling of material resources meets the needs of green development of the new energy industry.

Covering the recycling, processing and sales of scrap metal and other renewable resources. The main product is scrap steel, which is produced in various materials and types in strict accordance with the national standard "Recycled Steel Raw Materials GB/T 39733-2024" 2 Scrap Steel Renewable Resources Business

Products, including heavy scrap steel, medium scrap steel, small scrap steel, crushed scrap steel, baled scrap steel, recycled alloy steel, etc., are mainly supplied to large downstream steel plants.

The full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd. mainly uses the contract energy management model to provide customers with the design, investment and construction of distributed photovoltaic systems, 3 distributed energy station investment and operation

Operation and maintenance and other services, the investment and operation of distributed energy stations mainly provide distributed photovoltaic energy-saving services. Through BT and other models, we design energy-saving solutions for customers' energy-using systems, implement energy-saving renovation projects, and 4 energy-saving projects and product R&D and sales

Develop and sell supporting equipment and energy-saving products, and provide follow-up technical support and services.

Comprehensive treatment of sewage in special industries by providing customers with customized treatment solutions, targeted pollution control equipment, investment and operation 5

Maintenance, technical consulting and other services are provided, and ongoing sewage treatment fees are ultimately charged as service income.

(2) Business model

Procurement model

(1) Biomedical business

The materials purchased by the company related to the cell business mainly include gas-phase liquid nitrogen tanks, cell cryopreservation bags, reagent consumables and instruments and equipment. The company has a comprehensive management department, which is responsible for the procurement of the above materials and office supplies, and the preliminary screening and review of suppliers. The company's comprehensive management department needs to formulate and submit for approval the purchase plan for production materials for the next year based on the sales plan for the next year and the inventory of production materials. For the procurement of materials within the procurement plan, the person in charge of the demand department will fill in the "Purchase Requisition Form" according to the needs and submit it to the system for approval. After the approval is completed, the purchase will be made by the General Management Department. After the purchased materials arrive at the company's designated warehouse, the comprehensive management department, demand department, and quality management department will jointly participate in the acceptance inspection. After passing the inspection, the relevant warehousing procedures will be handled.

The company's procurement methods include bidding procurement and non-bidding procurement, with bidding procurement being the main method of centralized procurement. Procurement by bidding methods mainly includes public bidding and invitation bidding. Non-tendering procurement mainly includes competitive negotiation, competitive consultation, single-source procurement, inquiry procurement, etc. The company has made clear regulations on the application of the above-mentioned different procurement methods, and the General Management Department strictly implements procurement work in accordance with the regulations.

The company has established a qualified supplier management mechanism and made clear provisions on the inspection, qualification review and selection of suppliers. The main reagents, consumables, instruments and equipment required for the company's production, R&D and quality work must not be purchased from unapproved suppliers. Suppliers that have been jointly reviewed by the person in charge of procurement, the manager of the quality management department, the leader in charge and the general manager must have good business reputation and a sound financial accounting system, have the necessary professional and technical capabilities to perform the contract, have the ability to supply, distribute and provide after-sales service for the goods purchased by the company, have independent legal person qualifications, and hold a legal business license.

(2) Energy saving and environmental protection business

Procurement related to the company's energy conservation and environmental protection business is the responsibility of the corresponding business segment. Materials related to the recycling of new energy materials and scrap steel recycling resources (lithium-containing waste, lithium sulfate solution, scrap steel, etc.) are formulated and implemented by the corresponding holding company (Jinhong New Materials, Jindalu Environmental Protection) according to business needs. During the procurement process, the company's procurement management system is strictly followed, and different business scenarios are distinguished and the procurement methods are standardized: energy-saving engineering materials are purchased through bidding or competitive negotiation, and conventional consumables and small-value materials are purchased through inquiry and price comparison. For core raw materials such as scrap steel, lithium-containing waste, and lithium sulfate solution, supply is ensured and costs are controlled by establishing long-term cooperation channels and other methods.

Production mode

(1) Biomedical business

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The company is mainly engaged in the preparation and storage technology services of stem cells and immune cells, as well as cell product research and development, clinical research and transformation. The company's cell preparation and storage technology service business includes sample reception, cell preparation, cell detection and cell cryopreservation. Depending on the customer group, the cell business can be divided into two models: order-based production and batch production. The order-based production model involves customers signing an agreement with the company's sales company. The sales company collects customer stem cell and immune cell samples and delivers them to the laboratory within a specified time. Technicians will separate or culture amplify the cells in a clean workshop according to cell types. After reaching storage standards, they will be placed in liquid nitrogen tanks for long-term storage. In the batch production model, the company is committed to downstream product development and clinical application research, producing cell products in batches on demand and storing them in liquid nitrogen tanks for research and development.

(2) Energy saving and environmental protection business

The company's energy conservation and environmental protection business is mainly operated by its holding subsidiary Jinhong New Materials and other entities, and comprehensively covers traditional energy conservation and environmental protection services, comprehensive circular economy and new energy material recycling, scrap steel resource utilization and other fields, forming a coordinated development pattern of new and old businesses.

New energy material recycling business and scrap steel recycling resource business: Jinhong New Materials adopts a production first and then sales model, supplemented by reasonable, appropriate and predictive stocking. Jinhong New Materials determines the purchase volume of main raw materials (lithium-containing waste, lithium sulfate solution, etc.) based on market prices and demand. The main raw materials are purchased and processed into products. Jindalu Environmental Protection holds monthly business analysis meetings for each cooperative steel mill, formulates supply plans based on downstream demand, clarifies the production indicators of each workshop, ensures accurate matching of scrap steel processing production and downstream demand, and ensures stable business operations.

In the company's energy-saving engineering and comprehensive management business, relevant business entities rely on EMC and customized project service models to provide customers with integrated services such as energy-saving renovation plan design, project implementation, and operation and maintenance support.

Sales model

(1) Biomedical business

The company's biomedical business mainly includes cell (stem cells, immune cells) storage and technical services, sales of beauty and health care products, and sales of biomedical related products. The cell storage business is mainly conducted by the company's business personnel directly to individual users, and they sign cell storage and technical service agreements with them. This business is mainly concentrated in Hunan Province and has a strong regional nature; the beauty and health care product sales business is mainly the sales of the company's self-operated beauty and health care products, which are currently sold through a combination of online and offline methods; the sales business of air purifiers and other related products is mainly the company's business expansion based on market sales expectations and actual orders by obtaining the regional general agent rights of manufacturers.

(2) Energy saving and environmental protection business

New energy material recycling and scrap steel recycling resource business: Jinhong New Materials implements differentiated sales strategies based on the characteristics of main and by-products, expands customer channels through industry exhibitions, market promotion and other multiple methods, optimizes channel layout based on regional supply and demand characteristics, and accurately matches the product needs of downstream customers; Jindalu Environmental Protection adopts large customers Direct supply, long-term strategic cooperation and product hierarchical pricing model deepen stable cooperation with large steel mills, build a highly sticky core sales network, adhere to sales-based production, strictly control operating risks, and ensure efficient production and sales turnover; pricing settlement strictly relies on the execution of public procurement prices of cooperative steel mills to ensure fair pricing and transaction compliance.

Energy-saving industry sales and service revenue (EMC and engineering construction): On the one hand, the company relies on bidding channels to regularly follow up on the needs of enterprises for energy-saving renovation projects, proactively negotiate solutions and participate in bidding selections; on the other hand, it focuses on high-energy-consuming and high-emission industries to carry out precise research and judgment, selects potential customers with high business matching for in-depth docking, customizes special solutions based on actual on-site needs, and steadily expands project resources.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

R&D model

(1) Biomedical business

The company has a clinical-grade cell production base, cell bank, and R&D laboratory with good hardware conditions. On the one hand, the company's research on stem cells and immune cells is an in-depth study of cell extraction, preparation and culture processes and cell-derived products, aiming to optimize existing processes while strengthening the research and development of cell-derived products and expanding product categories in stem cell applications. On the other hand, the company's cell preparation and storage technology has become mature. In order to gradually extend to the downstream of the stem cell and immune cell industry chain, the company is actively investing in the field of cell therapy, adopting a model that combines independent research and development and cooperative research and development to improve research and development efficiency. The company's independent research and development mainly includes preclinical safety and effectiveness research on stem cells in response to specific diseases such as lung injury. Based on the characteristics of cell therapy research, confirming the effectiveness and safety of the drugs developed must be conducted through drug clinical trials. Therefore, the company needs to cooperate with hospitals and research institutes with clinical trial qualifications for research and development. The company pays attention to the introduction and training of scientific research personnel, and has initially formed a group of scientific research teams and consulting teams composed of core technical backbones and scientific researchers such as well-known experts, scholars, and national subject experts.

(2) Energy saving and environmental protection business

New energy material recycling and scrap steel recycling resource business research and development model: Adopting the deep integration model of "college cooperative development + independent research and development", the company has established a long-term and stable in-depth technical cooperation relationship with the team of Professor Sun Wei, dean of the Graduate School of Central South University and Yangtze River Scholar. Central South University provides continuous technical support. Both parties clarify the ownership and transformation mechanism of technical achievements. Relying on this cooperation system, the company focuses on building a complete recycling technology system of "recycling-processing comprehensive utilization-recycled product sales".

(3) The company’s industry status

Biomedicine

At present, my country's cell industry has built a relatively complete industrial chain of upstream, midstream and downstream. The upstream focuses on the collection and preservation of cells, that is, the cell storage business; the midstream focuses on the research and development of cell technology and related products, such as cytokines, exosomes, etc.; the downstream focuses on the clinical application of cells, covering fields such as disease treatment, anti-aging health care, and beauty, thus forming three major market segments: cell bank, cell drug and laboratory processing supporting products (such as detection reagents) research and development, and cell therapy.

The cell industry in Hunan Province mainly focuses on the field of stem cell storage, and also conducts a small amount of cell biotechnology research and development and clinical application research on cell therapy technology. The company's core business is cell (stem cell, immune cell) storage and technical services. It belongs to the upstream link of the industrial chain. The scale of cell storage business in Hunan Province ranks among the top in the region. With advanced technical equipment, professional service team and perfect quality management system, the company has accumulated a good brand reputation and extensive customer resources in Hunan region, laying a solid foundation for continued business expansion.

In recent years, the company has actively cooperated with universities and scientific research institutions at home and abroad to conduct research on spinal cord injury, lung injury, gestational diabetes, encephalopathy, endometrial injury, skin repair, liver cirrhosis, autism, etc. in the downstream application fields of stem cells. The company and the National Stem Cell Transformation Resource Bank jointly established the "National Stem Cell Transformation Resource Bank Hunan Clinical Research Center" to carry out work around the preservation and transformation application of stem cell resources. Among them, the "Pharmacological Mechanism and Clinical Translation Research of Engineered Exosomes Targeting Neuroinflammation to Treat Encephalopathy" project was selected into the Hunan Provincial Key R&D Plan in 2024, and its R&D strength has been recognized at the provincial level.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

As of December 31, 2025, the company has been approved for 10 national and provincial and municipal science and technology innovation platforms, including the "Science and Technology China" cell and regenerative medicine innovation base, Hunan Provincial Stem Cell Exosome Engineering Technology Research Center, Hunan Provincial Enterprise Technology Center, Hunan Provincial New R&D Institution, Hunan Provincial Doctoral Innovation Station, Changsha Enterprise Technology Center, etc., and has formed continuous accumulation in basic research, clinical transformation, technology iteration, etc. On the basis of consolidating the core advantages of the upstream cell storage business, the company has steadily promoted the downstream extension of the industrial chain, integrated industry-university-research innovation resources, built a systematic and task-oriented collaborative innovation model, continuously improved the layout of the entire industry chain, and continued to enhance the comprehensive competitiveness and industry influence in the field of biomedicine.

Energy saving and environmental protection

During the reporting period, the company continued to promote the integration and coordinated development of the environmental protection segment business, which covers energy-saving projects, circular economy, new energy material recycling and scrap steel recycling resource business. Through the acquisition of Jinhong New Materials and Jindalu Environmental Protection, the company has established a dual-track coordinated development layout of "lithium carbonate + scrap steel" with "lithium carbonate production and sales" and "scrap steel recycling, processing and sales" as the core. It forms a complementary synergy with the original energy-saving and environmental protection business, effectively improving the company's overall risk resistance and comprehensive resource utilization efficiency.

Among them, Jinhong New Materials has established in-depth technical cooperation with Central South University. The jointly developed technology of "recycling retired power batteries to prepare lithium carbonate and iron phosphate" uses a wet lithium extraction process to extract high-quality lithium carbonate, which has outstanding technical advantages; the first phase has 24,000 tons/year of scrap lithium iron phosphate batteries. The recycling project has been basically completed and reached production, and its products include industrial-grade lithium carbonate. The project strictly implements environmental protection requirements and achieves environmental goals such as recycled water utilization, zero wastewater discharge, and comprehensive utilization of slag. It has strong environmental compliance and is in line with the guidance of local industrial policies; the second phase of the project has currently been approved by the lake. The "100,000 tons/year lithium-containing industrial waste comprehensive utilization project registration certificate" issued by the South Loudi High-tech Industrial Development Zone Management Committee, the project has obtained the "Loudi Municipal Ecological Environment Bureau's approval of the 100,000 tons/year lithium-containing industrial waste comprehensive utilization project environmental impact report" (Lou Huan Shen [2024] No. 56), the project is currently in the planning stage, and relevant preparatory work is being advanced. Construction will be started in due course according to the progress of the preparations. After the project is put into production, the company's production capacity scale and industry voice will be greatly increased, and the technology and production capacity advantages will be further strengthened. The holding company Jindalu Environmental Protection Department is an enterprise approved by the Ministry of Industry and Information Technology for the scrap steel processing industry. As the backbone of compliance in the scrap steel processing field in the region, it focuses on the entire chain of scrap steel recycling, processing, and sales. It has established a complete regional procurement and sales network, deepened long-term and stable cooperation with large steel plants such as Lengshuijiang Steel, Lianyuan Steel, and Hengyang Steel Pipe, built a high-viscosity core sales system, and has strong market influence and industry competitiveness in the regional scrap steel processing and circulation fields.

In industry competition, compared with national leading companies, the company has differentiated competitive advantages in terms of regional recycling network layout and core technology implementation efficiency; compared with small and medium-sized enterprises, the company relies on the brand influence, good credit and high-quality resource integration capabilities of listed companies, and has significant advantages in qualification compliance, core technology reserves, financial strength, and industrial chain integration capabilities. The company integrated Jinhong New Materials to achieve efficient coordination of technology, production capacity and customer resources, further strengthening the company's core competitiveness in the field of circular economy. With the implementation of planned projects and accelerated industry integration, the company is expected to continue to consolidate its leading position in the region and gradually move towards a benchmark enterprise in the circular economy segment.

2. Industry conditions of the company during the reporting period

(1) Biomedicine

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

As a national strategic emerging industry, the biopharmaceutical industry maintains a rapid development trend driven by policy support, market demand upgrades, and technological breakthroughs. The cell industry, as a core subdivision of biomedicine, has become a hot track in the field of life sciences, ushering in a golden development period for clinical transformation and industrialization.

Since the "12th Five-Year Plan", the country has successively issued a series of major policies such as the "13th Five-Year Plan for the Development of National Strategic Emerging Industries", the "14th Five-Year Plan for the Development of the Pharmaceutical Industry" and the "14th Five-Year Plan for Bioeconomic Development". It has listed new generation biotechnologies such as gene therapy and cell therapy as key development areas, and established a full-chain policy support system covering R&D, clinical transformation and industrial implementation, providing a solid guarantee for the standardized and large-scale development of the stem cell and immune cell industries.

2025 is a critical year for the clinical transformation of the cell industry. Industry policies continue to improve, the regulatory system becomes increasingly mature, and technological innovation continues to make breakthroughs. National and local governments continue to optimize industry policies and regulatory environments: In January 2025, the State Food and Drug Administration issued the "Guidelines for the Production Inspection of Cell Therapy Products" to further standardize the production process of cell therapy products and strengthen full-process quality management; in June 2025, the National Medical Insurance Administration and the National Health Commission jointly issued the "Supporting Innovation" "Several Measures for the High-Quality Development of Drugs" and build a "basic medical insurance + commercial insurance" dual-track payment system and a "dual export" access mechanism to help the commercialization of cell therapy products; in September 2025, the State Council issued the "Regulations on the Management of Clinical Research and Clinical Transformation Application of New Biomedical Technologies" to establish a "clinical research filing system + "Clinical Transformation Application Approval System" dual-track regulatory system; the "Hunan Provincial Cell and Gene Industry Promotion Regulations" officially implemented on October 1, 2025, as the first batch of special legislation for the cell gene industry in the country, elevates industrial development from policy support to the level of legal protection, and is built around R&D, production, clinical application, and industrial chain collaboration The full-chain policy framework focuses on supporting the research and development of stem cells and regenerative medicine, gene editing, cellular immunity and other technologies, promoting the integrated development of biotechnology and artificial intelligence, helping Xiangjiang New Area and the Changsha Area of the Free Trade Zone to create a cluster of cell companies, improving the regional industrial chain ecology, and providing a good policy environment for the development of the company's cell business.

In terms of market size, as the aging of the population intensifies, health consumption demand upgrades, and the application scenarios of superimposed stem cell regenerative medicine continue to expand, the industry market size has grown steadily. According to Burgess Consulting's "Global Stem Cell Manufacturing Market Research Report", the global stem cell manufacturing market will reach US$15.08 billion in 2024 and is expected to grow to US$24.45 billion in 2029, with a compound annual growth rate of approximately 9.5%. Relying on my country's huge population base and continuously releasing medical and health needs, the market space for the stem cell industry is vast; as the inclusion of cell therapy in the pilot program of medical insurance payment continues to advance and the cost of industrialization continues to decrease, cell therapy is gradually moving towards universal application, bringing sustainable development opportunities to the company's cell medical business.

(2) Energy saving and environmental protection

Energy conservation, environmental protection and circular economy are the core pillar industries of the national "double carbon" strategy. They are in line with the development orientation of new productivity and are a green and low-carbon track supported by the country. They have solid policy support and broad market prospects. The company's energy conservation and environmental protection segment covers the two major areas of original energy conservation and environmental protection services and circular economy, fully benefiting from industry policy dividends, with a solid development foundation and broad room for growth.

A number of major policies at the national level provide strategic support for the company's energy conservation and environmental protection business. In 2025, the State Council executive meeting passed the "Action Plan for Improving the New Energy Vehicle Power Battery Recycling System", focusing on supporting enterprises with compliance qualifications, core technologies and regional resource advantages, which will benefit the company's resource recycling business; in December 2025, the "Action Plan for Comprehensive Management of Solid Waste Pollution Prevention and Control" Action Plan" was implemented to clarify the goals of large-scale utilization of bulk solid waste and renewable resources, and clarify the expansion path for the company's scrap steel processing and lithium-containing waste resource recycling business; at the same time, the National Development and Reform Commission issued the "Special Action Plan for the Large-Scale Construction of New Energy Storage (2025-2027)", which will control the

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The lithium resource recycling project of Jinhong New Materials, a subsidiary of the company, creates potential industrial synergy. Industry-specific regulatory policies continue to be improved, industry integration is accelerated, and the advantages of the company's subordinate compliance entities are highlighted. Six departments including the Ministry of Industry and Information Technology jointly issued the "Interim Measures for the Recycling and Management of Wasted Power Batteries of New Energy Vehicles" (released in December 2025 and implemented in April 2026) to strengthen full-process traceability and access control, directly benefiting the company.

Jinhong New Materials focuses on the production and sales of lithium carbonate. It has complete environmental impact assessment, project approval qualifications and industry-university-research advantages, and can give priority to undertake formal resource business. In addition, the implementation of policies to stabilize growth in related industries has stabilized downstream demand and brought incremental growth to the company's energy conservation and environmental protection business.

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Improving Value-Added Tax Policies for Comprehensive Utilization of Resources" (No. 40, 2021), qualified renewable resource recycling enterprises can choose the simplified tax calculation method, and self-produced comprehensive utilization products can enjoy the preferential VAT refund upon collection. Jindalu's environmental protection-related businesses all comply with policy requirements and can enjoy tax dividends in accordance with the law, reduce operating costs and increase profit margins.

According to the "China Energy Conservation and Environmental Protection Industry Market Prospects and Future Investment Strategy Analysis Report 2024-2029" by the China Business Industry Research Institute, a third-party organization, the output value of the domestic energy conservation and environmental protection industry is expected to reach 9.8 trillion yuan in 2024. The market size is expected to increase to about 15 trillion yuan in 2030, and the industry as a whole is continuing to expand. As domestic power batteries enter a centralized retirement cycle, the demand for resource utilization is growing rapidly, bringing new development opportunities to the company's resource recycling business and traditional energy conservation and environmental protection business.

Industry competition is focused on core capabilities such as recycling channels, core technologies, and compliance qualifications. Tighter supervision is accelerating the elimination of backward production capacity. As an entity with the advantages of standardization and scale, the company's competitiveness and market share are expected to be further improved. Multiple national-level policies are superimposed, the energy conservation, environmental protection and circular economy markets continue to expand, and the company's circular economy business has sufficient growth momentum. In the future, the company will rely on its advantages in compliance, production capacity and industrial chain synergy to increase market share and core competitiveness, and promote high-quality and steady development of the sector.

3. Core competitiveness analysis

During the reporting period, the company adhered to the dual-main-business collaborative industrial development strategy of "biomedicine + energy conservation and environmental protection" and built a two-way R&D system with cell technology research and development as the core and energy conservation, environmental protection and resource recycling technology research and development as the support. It has passed the intellectual property management system certification, and its R&D innovation and compliance operation capabilities have continued to be consolidated. As of December 31, 2025, the company has more than 80 patents and software copyrights of various types. There have been no major adverse changes in the company's core competitiveness, and the overall comprehensive competitiveness continues to improve.

(1) Biomedicine

The company has corresponding business compliance qualifications and has obtained the administrative license for the preservation of human genetic resources in China, providing solid compliance guarantees for cell storage, industry-university-research cooperation, and transformation of scientific research results. The company has built a clinical-grade cell production base, standardized professional cell banks, and scientific research laboratories. The hardware facilities and supporting conditions have reached the industry's advanced level. It has simultaneously established a full-process quality control system to achieve compliance, efficient, and safe operation of cell sample reception, preparation, storage, and quality inspection to ensure stable quality of cell products.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Since its deployment in the field of cell medicine, the company has continued to promote research and development and implemented dozens of research and development projects independently or in conjunction with external institutions, forming stable research and development and technology iteration capabilities. The company's human umbilical cord mesenchymal stem cell products have passed the quality review of the China Institute of Food and Drug Control; it has completed the verification of the isolation and culture process of dental pulp mesenchymal stem cells and adipose mesenchymal stem cells, and added a cord blood NK cell production pipeline. The product matrix continues to be enriched and can meet diversified clinical and scientific research needs. At the same time, the company implements information-based management and control of the entire cell storage process, improves service traceability and operational efficiency, and forms differentiated competitive advantages.

Industry-university-research and platform advantages: The company has established in-depth cooperation with Hunan Provincial People's Hospital, Hunan Provincial Cancer Hospital, Changsha Maternal and Child Health Hospital, Hunan University, Hunan Normal University and many other top-level medical institutions, universities and scientific research institutes. It conducts collaborative exploration of basic research in the field of biomedicine and gradually builds an innovative development system that connects basic research, clinical exploration and industrial implementation. The company has been approved for a total of 10 national, provincial and municipal science and technology innovation platforms. Relying on existing platform resources, the company has steadily promoted core technology research and early-stage scientific research exploration, continued to consolidate the foundation of technology research and development, gradually improved the core technology system, and steadily improved the company's comprehensive scientific research capabilities.

The company's cell storage business has deeply cultivated the market in Hunan Province. After years of deployment, it has established mature hospital cooperation channels and a stable customer system. It has a leading regional market share, excellent brand recognition and industry reputation. At the same time, the company relies on special legislative policy dividends such as the "Hunan Provincial Cell and Gene Industry Promotion Regulations", based on the advantages of Hunan's cell and gene industry clusters, and promotes business expansion and industrial chain extension in compliance with regulations, forming core barriers in terms of qualification licensing, quality control, channel layout, and regional resource integration.

(2) Energy conservation and environmental protection

The company's energy conservation and environmental protection business is operated by its core entities such as Jinhong New Materials and Jindalu Environmental Protection. After years of deep market cultivation and technology accumulation, it has established a mature business system covering traditional energy conservation and environmental protection and comprehensive utilization of waste resources. It has accumulated rich project operation experience and industry technology reserves, has stable market service capabilities, and formed a pattern of positive synergy and complementary development with the biomedical sector.

During the reporting period, the company based on the coordinated development layout of its dual main businesses, officially entered the fields of new energy material recycling and scrap steel recycling resources through the acquisition of Jinhong New Materials, further improved the layout of the entire industry chain of energy conservation, environmental protection, and resource recycling, and formed complementary synergies with the original energy conservation business. The business covers the entire chain of procurement, production, and sales, effectively improving the company's overall risk resistance and comprehensive utilization efficiency of resources, and assisting the implementation of the company's green development layout. Among them, Jinhong New Materials focuses on the comprehensive utilization of lithium-containing waste and has established in-depth technical cooperation with Central South University. It relies on mature wet lithium extraction core technology to continue to optimize the production process, and its technology and production capacity advantages are gradually emerging; Jindalu Environmental Protection is an enterprise recognized by the Ministry of Industry and Information Technology as a scrap steel processing industry access announcement enterprise. It has complete compliance management qualifications and has built a complete supply and marketing network covering the surrounding areas. It has established long-term and stable cooperative relationships with large steel plants such as Lengshuijiang Steel, Lianyuan Steel, and Hengyang Steel Pipe, with significant production capacity and channel advantages. The main business of Jindalu Environmental Protection is in line with the national circular economy development and "double carbon" strategic goals, and meets the applicable conditions for preferential tax policies such as instant refund of renewable resource value-added tax and simplified tax calculation. It can enjoy policy dividends and reduce operating costs in accordance with the law. At the same time, relying on the brand influence, credit endorsement and resource integration capabilities of listed companies, the market competitiveness, industry voice and financing capabilities of the two subsidiaries have been significantly improved, providing solid support for the scale, standardization and high-quality development of the company's subsequent business in the energy conservation and environmental protection sector, and further consolidating the industrial foundation for the coordinated development of the company's dual main businesses.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

4. Main business analysis

Overview

During the reporting period, the company was mainly engaged in the two major business sectors of "biomedicine" and "energy conservation and environmental protection", and also carried out the production and sales of other biomedicine-related products.

Or agency sales and other businesses. Among them, the "biomedicine" sector mainly includes stem cells, immune cell storage and technical services, stem cell application research, beauty products,

Sales of health care products, air purifiers, etc.; the "Energy Saving and Environmental Protection" segment covers new energy material recycling business, scrap steel recycling resource business, comprehensive sewage treatment in special industries,

Distributed energy station investment and operation, EMC contract energy management, etc.

During the reporting period, the company achieved operating income of 415.9397 million yuan, an increase of 209.37% year-on-year, of which the operating income of the "biomedicine" segment was

111.8498 million yuan, an increase of 13.46% year-on-year. In the "Energy Saving and Environmental Protection" segment, the operating income from energy-saving technical services was 221.1999 million yuan, an increase from the same period last year.

plus 520.01%; the operating income of the lithium carbonate industry was 81.5199 million yuan, accounting for 19.60% of the operating income.

Income and costs

(1) Composition of operating income

Unit: Yuan 2025 2024

Year-on-year increase or decrease

Amount % of operating income Amount % of operating income

Total operating income 415,939,732.49 100% 134,447,796.85 100% 209.37% Industry

Energy Saving Technology Service Company

221,199,873.48 53.18% 35,676,873.32 26.54% 520.01% Industry

Biomedical industry 111,849,787.40 26.89% 98,582,833.97 73.32% 13.46% Lithium carbonate industry 81,519,856.98 19.60%

Others 1,370,214.63 0.33% 188,089.56 0.14% 628.49% products

Energy saving industry sales and

217,146,867.51 52.21% 25,876,952.57 19.25% 739.15%Service income

EMC and engineering construction 4,053,005.97 0.97% 9,799,920.75 7.29% -58.64% Lithium carbonate business 81,519,856.98 19.60%

Cell storage and testing 72,666,609.01 17.47% 90,974,497.17 67.67% -20.12% Biomedical related products

39,183,178.39 9.42% 7,608,336.80 5.66% 415.00% product sales

Others 1,370,214.63 0.33% 188,089.56 0.14% 628.49% by region

Within the province 327,075,214.45 78.64% 103,942,743.82 77.31% 214.67% Outside the province 88,864,518.04 21.36% 30,505,053.03 22.69% 191.31% Sales model

Direct sales 415,939,732.49 100.00% 133,636,986.26 99.40% 211.25% Non-direct sales 810,810.59 0.60%

(2) Industries, products, regions, and sales models that account for more than 10% of the company’s operating revenue or operating profit

☑Applicable □Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Unit: Yuan Operating income compared to the previous year Operating cost compared to the previous year Gross profit margin compared to the previous year’s operating income Operating cost Gross profit margin

Increase/decrease in the same period of the year Increase/decrease in the same period of the year Increase/decrease in the same period by industry

Energy-saving technical services 221,199,873. 215,312,571.

2.66% 520.01% 1,037.10% -44.27% Industry 48 35

111,849,787. 29,942,887.9

Biomedical industry 73.23% 13.46% 21.26% -1.72% 40 9

81,519,856.9 78,566,737.7

Lithium carbonate industry 3.62%

8 6

By product

Energy-saving industry sales 217,146,867. 213,480,012.

1.69% 739.15% 1,357.46% -41.71% and service income 51 89

Cell storage and testing 72,666,609.0 17,431,290.0

76.01% -20.12% -18.59% -0.45%test 1 9

81,519,856.9 78,566,737.7

Lithium carbonate business 3.62%

8 6

By region

327,075,214. 251,689,976.

Within the province 23.05% 214.67% 855.31% -51.60% 45 43

88,864,518.0 72,452,801.7

Outside the province 18.47% 191.31% 314.92% -24.29%

4 3

Split sales model

415,939,732. 324,142,778.

Direct sales 22.07% 211.25% 639.92% -45.15%

49 16

If the statistical caliber of the company's main business data is adjusted during the reporting period, the company's main business data in the most recent year will be adjusted according to the caliber at the end of the reporting period □ Applicable ☑ Not applicable

(3) Whether the company’s physical sales revenue is greater than its labor service revenue

☑Yes □No

Industry Classification Project Unit 2025 2024 Year-on-year increase or decrease

Sales volume tons 92,936.55 Energy-saving technology service industry Production volume tons 93,613.56 industry

Inventory tons 677.01

Sales volume tons 1,121.50

Production volume tons 1,187.50Lithium carbonate industry

Inventory tons 66.00

Explanation of reasons why relevant data changed by more than 30% year-on-year

□Applicable ☑Not applicable

(4) Performance of major sales contracts and major purchase contracts signed by the company as of this reporting period

□Applicable ☑Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(5) Composition of operating costs

Industry classification

Unit: Yuan 2025 2024

Industry classification Item Ratio of operating costs Ratio of operating costs Year-on-year increase or decrease Amount

heavy heavy

Energy-saving technical services 215,312,571. 18,935,265.8

66.43% 43.22% 1,037.10% Industry 35 2

29,942,887.9 24,693,348.5

Biomedical industry 9.24% 56.37% 21.26% 9 4

78,566,737.7

Lithium carbonate industry 24.24% 0.00%

Others 320,581.06 0.10% 179,391.75 0.41% 78.70%Explanation

None.

(6) Whether there are changes in the scope of consolidation during the reporting period

☑Yes □No

(1) Increase in consolidation scope

Company name Equity acquisition method Time of equity acquisition Amount of capital contribution Ratio of capital contribution

Loudi Jinhong New Materials Co., Ltd. Purchase equity 2025-9-30 78,624,900.00 55%

(2) Reduction in consolidation scope

Net profit from the beginning of the period to the date of disposal Company name Equity disposal method Time point of equity disposal Net assets on the date of disposal

Run

Nanhua Heping Hospital Management (Hunan) Co., Ltd. Equity transfer 2025-10-31 47,324,969.86

10,895,963.62

(7) Significant changes or adjustments to the company’s business, products or services during the reporting period

☑Applicable □Not applicable

The company has added new lithium carbonate material production and sales business in this period, and the energy conservation and environmental protection business has added renewable resource recycling, processing and sales business. For details on the impact on the company's operations and performance, please see Section 3.3 and 4.1.

(8) Major sales customers and major suppliers

The company’s main sales customers

The total sales amount of the top five customers (yuan) 245,422,394.83 The total sales amount of the top five customers accounts for the proportion of the total annual sales 59.00% The sales volume of the top five customers accounts for the proportion of the sales of related parties in the total annual sales 0.00% Information of the company's top five customers

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Serial number Customer name Sales (yuan) Proportion of total annual sales 1 Hunan Valin Lianyuan Steel Co., Ltd. 113,201,081.01 27.22% 2 Lengshuijiang Steel Co., Ltd. 70,319,962.29 16.91% 3 Zhejiang Tuoben New Energy Co., Ltd. 27,199,061.95 6.54%

Ningbo Veken Jiamao International Trade Co., Ltd.

4 17,637,876.12 4.24%

company

5 Hengyang Valin Steel Pipe Co., Ltd. 17,064,413.46 4.10% Total -- 245,422,394.83 59.00% Other information on major customers

□Applicable ☑Not applicable

The company’s main suppliers

The total purchase amount of the top five suppliers (yuan) 63,098,929.49 The total purchase amount of the top five suppliers accounts for the proportion of the total annual purchase 21.15% The purchase amount of the top five suppliers accounts for the proportion of the related party purchase of the total annual purchase 5.53% Information of the company's top five suppliers

Serial number Supplier name Purchase amount (yuan) Proportion of total annual purchases

Chongqing Hongwen Metal Recycling Co., Ltd.

1 17,739,564.45 5.95% Division

Lengshuijiang Runcheng New Material Technology Co., Ltd.

2 16,509,401.50 5.53%

Ltd.

3 Sany Automobile Hoisting Machinery Co., Ltd. 10,331,136.49 3.46% 4 Hunan Wanyou New Materials Co., Ltd. 9,517,102.09 3.19% 5 Wuhan Fengshen Stamping Parts Co., Ltd. 9,001,724.96 3.02% Total -- 63,098,929.49 21.15% Other descriptions of major suppliers

□Applicable ☑Not applicable

During the reporting period, the company’s trading business revenue accounted for more than 10% of its operating revenue.

□Applicable ☑Not applicable

Cost

Unit: Yuan

2025 2024 Year-on-year increase or decrease Major changes in sales expenses 22,130,617.15 30,815,965.99 -28.18%

Management expenses 44,274,472.42 52,516,614.30 -15.69%

Financial expenses of the newly added subsidiary Loudi in this period 1,702,943.36 -238,516.03 813.97%

Jinhong’s interest-bearing liabilities increased. Research and development expenses 7,662,930.35 9,692,428.61 -20.94%

R&D investment

☑Applicable □Not applicable

Name of the major R&D projects expected to contribute to the company’s future development Project purpose Project progress Objectives to be achieved

influence

Umbilical cord mesenchymal stem cells are used to treat lung diseases with exosomes. The project results can be used to upgrade and optimize the isolation of exosomes.

Completed.

Exosomes are used in the basic research and purification process of patent medicines for neonatal acute respiratory disease, and the exosomes are used to explore the full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd. for neonatal acute respiratory disease.

Clinical research in respiratory distress syndrome. Preclinical study on cellular therapy of neonatal acute respiratory distress syndrome with body intervention. Effective therapeutic products or related drugs for respiratory distress syndrome have been established and expanded the basis of exosomes on the lungs. This will enrich the company's product pipeline and increase the scope of possible applications for the disease. Product layout in the field of pediatric disease treatment improves the company's position in the cell therapy market

competitiveness.

Obtain large-scale exosome extraction

The research results are expected to be transformed into extraction methods to study human umbilical cord

Human umbilical cord mesenchymal stem cells have the ability to resist skin aging and damage. Mesenchymal stem cells and natural

And natural killer cell exocytosis, the development of functional skin care products or exosomes with wound repair effects has been completed. Killer cell exosomes anti-skin

Anti-aging and damaged skin skin treatment products. Products such as topical skin care, glycation aging and damage repair

Repair research. The effects and mechanisms of cosmetics, medical beauty products or biological complexes

Preparations, etc.

system.

in progress. Completed

MYD88 siRNA engineering research results can be used to construct engineered exosomes,

Establishing the structure of engineered exosomes, exosome design and in vitro water, engineering exosomes targeting God in the field of exosome treatment of encephalopathy, loading specific small molecules

Build a platform; complete engineering platform verification; have established a scale to provide new theoretical basis and drugs for treating encephalopathy through inflammation to accurately target sepsis.

Exosomes target septic encephalopathy Practical experience in production and quality control of exosomes is expected to develop physiological mechanisms and clinical translation research related to encephalopathy, and complete pharmacological

The effectiveness research system of patent medicines for diseases has been established; innovative research on the treatment of encephalopathy using animal water has been completed. Mechanism and clinical translation research

Research. Research on the effectiveness of flat products; ongoing research on new products, such as engineering.

Conduct animal-level safety of exosome preparations and more. Research.

Efficient expansion of umbilical cord blood NK cells. Establish high-efficiency expansion of umbilical cord blood NK cells. Optimize the production process and improve research and production process upgrades. Completed. Increased corporate production standards for the production of the company's NK cell pipeline. Make regulations. quantity.

The completion of the biomedical new technology clinical research registration project will demonstrate the company's strength and professionalism in the development and application of umbilical cord mesenchymal stem cell quality research required for the completion of the cell technology project. It will help clinical research registration, conduct research, and establish a good reputation in the industry. Ongoing items

Umbilical cord mesenchymal stem cell treatment Umbilical cord mesenchymal stem cell oocyte treatment of premature ovarian failure clinical brand image, enhance the company's stem cell bank construction and

Research on the treatment of premature ovarian failure. Clinical trials of premature aging, bedside safety evaluation, application visibility and reputation, and quality evaluation work.

Explore stem cells as a medical treatment and report new biomedical technologies to enhance the feasibility of technology transformation for customers and investors. After the clinical research is filed, clinical trials of the company and its partners will be carried out. Trust and recognition. The results of this project are expected to be developed into biological products for patients with premature ovarian failure.

New medical technology.

Umbilical cord room required to complete the project

mesenchymal stem cells, umbilical cord blood

Preparation and quality of NK cells. This project aims at controlling chronic fatigue and completing the development of a human umbilical cord interstitial replenishment system at different dosages.

Human umbilical cord mesenchymal stem cells In progress. Human umbilical cord mesenchymal stem cells and pathological stem cells combined with umbilical cord blood for which there are no effective treatments are being carried out.

Combining umbilical cord blood NK cell stems, umbilical cord mesenchymal stem cells, and umbilical cord blood NK cells can successfully form a unique NK cell to intervene in chronic fatigue.

Preparation of NK cells from umbilical cord blood for chronic fatigue syndrome. Intervention of chronic fatigue at animal level. Special treatment options, enriching syndrome treatment technology or

Research. and quality control work. The safety of SLA and the company's products in the field of cell therapy.

Effectiveness evaluation, application scenarios for biomedical applications, and development of the medical market for clinical research of new medical products and new technologies.

Research filing or new drug submission

Clinical trial application (IND).

Validation of mesenchymal stem cells

Clarify the different cryopreservation times of mesenchymal stem cell cryopreservation preparations

After the effective cryopreservation period of the human umbilical cord mesenchymal stem cell preparation is thawed, the mesenchymal stem cells

Stability research and process upgrade of cryopreserved preparations. Completed. Limit, for the activity and biological function of the company's warehouse management cells

Research. and future production capacity of cell preparations, and clarify the effective cryopreservation period

Provide scientific basis for productization. limit.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

By studying glass waste powder, it is in line with the national "double carbon" battle

Completed glass waste powder

Pretreatment process optimization, strategic objectives, and corporate environmental

+5%, 7.5%, 10% overhaul

Export and separation of technology development and environmental responsibilities. technological breakthrough

Slag at 900, 950℃ and below

The preparation of lithium carbonate products and Li leaching of glass waste powder are expected to open up a new comprehensive method for lithium extraction from glass waste powder for the company. Roasting with the same acidification amount; 2. Completed

It is planned to solve the problem of glass waste powder leaching rate >99%; Al and Si elements business growth points, and conduct research on public recycling. with different proportions of lithium

The leaching rate of Li, Al, and Si elements is <1%. Division in New Energy Materials Cycle

Pyroxene, Calcium Fluoride, Fluorine

Difficulty in separation, Li leaching rate, utilization fields to build technology wall

Roasting complex of stone and lithium-containing slag

Low, low value of by-products, enhanced long-term competitiveness, combined with lithium extraction experiments.

problem. Provide support. 1. Completed the lithium ore and large

After the slag trimming and sulfuric acid are mixed,

Different temperatures, times, liters

Helps reduce the need for single

Low temperature preconditioning at temperature rate

Developing an economically viable, imported lithium resource that provides

Treatment and subsequent high-temperature roasting have a crystal conversion rate of >98%; lithium

Easy to practice, leachate set improves supply chain resilience. Project

Influence of crystal transformation rate. The leaching rate is >98%; to remove impurities.

The electrolysis of spodumene and lithium-containing aluminum is simple, easy to purify, and the direction complies with the national regulations on animals.

Research; 2. After completing the acidification roasting, the leaching lithium liquid is prepared in compliance with

Synergistic extraction of lithium from waste residues to develop composite lithium batteries with high lithium recovery rate Full life cycle monitoring of lithium-ion batteries

Burning temperature, time and acid standard "YS/T 582-

Research. Resources (lithium feldspar, lithium) The policy orientation of pipes also includes

Amount, leaching time, solid-liquid 2013》Battery grade carbonic acid

Pyroxene, lithium pyroxene and lithium-containing stones are conducive to better integration of the company

Ratio, temperature on lithium leaching rate lithium.

waste) lithium extraction technology. Research on the impact of regional industrial coordinated development pattern. And to the most

bureau.

Excellent lithium leachate for impurity removal

and battery grade lithium carbonate

Prepare.

Completed different ammonia concentrations

Degrees (7, 9, 11,

13g/L) prepared precursor

For pure phase high nickel ternary materials

Synthesis and electrochemical properties

Preparation of pure phase cathode materials and high nickel reduction reduces expensive and impactful research; 2. Completed

Prepared under optimal conditions. The amount of cobalt, a scarce resource, is focused on building high crystallization. Different stirring speeds (300,

The cathode material has a ratio of 2.7-, further reducing the density of the high-nickel ternary cathode material, impurity-free layered α-500, 700, 900rpm)

4.3V, 0.1C rate reduction. Cost of battery materials, pure phase preparation and its electrochemistry. High nickel III NaFeO2 structure. Preparation of precursors vs. pure phase

Electrical specific capacity >200mAh·g- Research on improving product performance and performance. ternary cathode materials, promoting the synthesis of high-nickel ternary materials and

Coulombic efficiency >85%, 1C price ratio, strengthening the company’s performance upgrade of nickel-positive materials. Study on the influence of electrochemical performance

The capacity is maintained after 300 cycles of research and development in the field of extreme materials; 3. Completed different pH

Rate>80%. strength and technical service capabilities. value (pH=10.5, 11,

11.5, 12) Precursor system

Prepared for pure phase high nickel ternary

Material synthesis and electrochemistry

energy impact.

Sulfide solid electrolyte is also 1. Completely adopted and inexpensive

Because of its high ionic content, coconut shell carbon and

Conductivity and excellent mechanical properties of Li2SO4·H2O are intended to explore core raw material properties, but limit its applications. Based on carbothermal reduction reaction, the main factor for public use is its own preparation path. The main factor is its high application in the preparation of Li2S. The company's future high prices in solid-state batteries are attributed to the production of low-cost preparation of self-made Li2S and material layout in cutting-edge fields. 1. Preparation of pure phase lithium sulfide;

Prepare sulfide solid electrolyte and provide the basis for the synthesis of commercially available Li2S. The success of technology and its application in sulfide electrolytes 2. Compared with the market cost of raw materials

The cost of the raw material Li2S Li6PS5Cl and the function help to improve applied research in the supply chain. The cost is reduced by 500 yuan/kg.

Stay high. Li2S is extremely easy to control at the level of Li9.54Si1.74P1.4S11. It should be hydrolyzed, and the synthesis process is complicated. .7Cl0.3 electrolyte is lagging behind. Therefore, the project is committed to conducting performance comparisons to verify technological changes and prospectively exploring the high quality and technical reserves of a low-cost, large-scale self-made Li2S. Feasibility study on the preparation method of chemically preparing high-purity Li2S

method. Research.

Nickel-iron-manganese-based materials have become 1. Completed the reaction process 1.NaNi0.4Fe0.2Mn0.4 aims to expand the company's advantages in the preparation of cathode materials and rich dual sources of nickel-iron-manganese basic low, high specific capacity, resource pH (10, 10.2, O21C cycle 100 cycles to maintain sub-battery cathode materials for sodium ion batteries, and has become 10.4, 10.6) and ammonia. The rate is >75%; 2. Technical reserves of modified materials, research on modification through element substitution. It is one of the important candidate systems for replacing lithium-ion batteries (9, 11, 13, NaNi0.32Fe0.16Mn0.3 using existing lithium battery research base. 15g/L) on the 2Ti0.1Mg0.1O21C cycle base, and is expected to be used at a lower increment

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

By optimizing the material structure and Ni0.4Fe0.2Mn0.4(OH) ring retention rate for 100 cycles> cost layout and diversified product composition design, the preparation process of the electrode precursor was improved by 90%. line, lay the foundation for grasping the future sodium-ion chemical performance and cycle-stable particle size distribution, and microscopic shape battery market demand, and promote the appearance of sodium-ion batteries and the corresponding technical foundation. NaNi0.4Fe0.2Mn0.4O2 in the field of large-scale energy storage

Practical process. Research on the influence of cathode materials

Research. 2. Study Ti and Mg

elements at 15%, 20% and

25% substitution amount pair

NaNi0.4Fe0.2Mn0.4O2

Electrochemical properties of cathode materials

influence.

Complete the change of Li2CO3

Li4Ti5O12 material has the characteristics of "zero stress".

The dosage is prepared in a ball mill

High voltage platform, structure changing structure, more than 20,000 times

Precursors with different lithium-titanium ratios

Stability, long life, cycle life and intrinsic safety

body, and separated by solid phase method 1.Li4Ti5O12-TiO2 complex

points, however, its lower properties are accelerating the replacement of stone

Don't use argon atmosphere and air combined materials. 500 circle guarantee.

Capacity and moderate cyclability. Ink negative electrodes are used in energy storage and heavy trucks.

The retention rate of titanium sintered in the atmosphere is >85%; 2.Mo4+ doped

Preparation by one-step method of lithium carbonate can limit the electrochemical performance. It is suitable for battery swapping, special vehicles and other fields.

Research on the preparation of lithium acid materials. Complex Li4Ti5O12 material

Lithium titanate material research. improvement. The project aims at the application of simple scenes. Lithium carbonate

Complete pure phase MoO2 material at 0.2C rate

Preparing lithium titanate materials by one-step method instead of traditional multi-step synthesis process

and Li4Ti5O12 precursor >175mAh/g (lithium titanate

technology to achieve high-efficiency and low-yield research, which will benefit the company

The mixture was ball milled and mixed under argon (theoretical volume).

This large-scale production of high performance in energy storage, special transportation, etc.

Preparation of doping modification by medium calcination

Lithium titanate (Li4Ti5O12) Expansion of market segments provides electrochemical performance testing of materials

negative electrode material. Technical support. Try research.

Completed different roasting temperatures

Degree, roasting time, stirring

Time and liquid-solid comparison are valuable

Study on the influence of metal leaching rate

With the large-scale research on power batteries; 2. Using calcium chloride and

Retired, its rich lithium and graphite in raw materials are reaction test

Cobalt, nickel, manganese and other valuable gold agents, the ternary cathode material

If it is not recycled efficiently, the Li in it is converted into water-soluble Li2CO3 and is easily soluble in water. In response to the scale of power batteries, it will not only cause a waste of strategic resources, but also cause serious LiCl decommissioning, completing the technological progress in environmental protection and environmental challenges.

1.Li leaching rate>97%;2.

Environmental risks. Aimed at dealing with synergistic chlorinating agents and roasting technology reserves. This research direction

Valuable metals Ni, Co, Mn

There are waste lithium-ion batteries. The rapid development of new energy industry. Temperature, roasting time, raw materials. In response to the national resource recycling and utilization.

Leaching rate>98%; 3. Regeneration repair

Recycling and repair of valuable metals Under the increasingly severe resource shortage, the quality ratio and utilization policy of materials and calcium chloride aims to explore the relevant

Compounded LiFePO4 material

Rebirth again. Double challenges of shortage and environmental pollution. Liquid-solid ratio for valuable metal leaching. Recovery and reuse of strategic metals.

The discharge capacity reaches the original

battle, and construct a study on the impact of "retirement-take-out rate. 3. Utilize paths to help improve

85%.

The company uses waste lithium iron phosphate in a fully closed-loop cycle system in the new energy industry, using "isolation-repair-reuse", promoting the positive electrode sheet as raw material, and transforming the positive electrode's full life cycle technology into active power batteries from "linear sheet pretreatment, NMP aluminum removal capabilities and risk response capabilities." Consumption” moves towards “green” and then waste lithium iron phosphate is obtained

"Production", support the production of new energy black powder, and process waste phosphoric acid

sustainable development of the industry. Repair and regeneration of iron lithium, complete

It has become the amount of lithium supplement and the second stage of calcining.

The effect of burning temperature on regeneration

LiFePO4/C electrochemical properties

energy impact research.

Company R&D personnel

2025 2024 Change ratio

Number of R&D personnel (person) 28 26 7.69%

Number of R&D personnel 8.86% 6.88% 1.98%

Educational structure of R&D personnel

Undergraduate 8 11 -27.27%

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Master 6 10 -40.00% Doctoral degree and above 4 5 -20.00% College degree and below 10 0

Age composition of R&D personnel

Under 30 years old 8 4 100.00% 30~40 years old 10 9 11.11% 40 years old and above 10 13 -23.08% Company R&D investment

2025 2024 Change ratio

Amount of R&D investment (yuan) 7,662,930.35 9,692,428.61 -20.94% R&D investment as a proportion of operating income 1.84% 7.21% -5.37% Amount of capitalized R&D investment

0.00 0.00

(yuan)

Capitalized R&D investment as a share of R&D investment

0.00% 0.00%

proportion of

The reasons and impacts of major changes in the company's R&D personnel composition

□Applicable ☑Not applicable

Reasons for the significant change in the proportion of total R&D investment in operating income compared with the previous year

□Applicable ☑Not applicable

Reasons for significant changes in R&D investment capitalization rates and their rationale

□Applicable ☑Not applicable

Cash flow

Unit: Yuan

Project 2025 2024 Year-on-year increase or decrease

Subtotal of cash inflows from operating activities 300,072,947.41 242,007,634.36 23.99% Subtotal of cash outflows from operating activities 415,808,294.92 237,214,051.51 75.29% Net cash flow from operating activities

-115,735,347.51 4,793,582.85 -2,514.38%

Subtotal of cash inflows from investing activities 282,097,506.71 201,029,852.39 40.33% Subtotal of cash outflows from investing activities 255,212,232.87 309,362,796.78 -17.50% Net cash flow from investing activities

26,885,273.84 -108,332,944.39 124.82%

Subtotal of cash inflows from financing activities 270,261,744.13 18,000,000.00 1,401.45% Subtotal of cash outflows from financing activities 41,979,730.98 200,908,607.52 -79.11% Net cash flow from financing activities

228,282,013.15 -182,908,607.52 224.81%

Net increase in cash and cash equivalents 139,431,878.19 -286,447,928.47 148.68% Explanation of the main factors affecting significant year-on-year changes in relevant data

☑Applicable □Not applicable

The subtotal of cash outflows from operating activities increased by 75.29% year-on-year, mainly due to an increase of approximately 187 million yuan in cash for purchasing goods and receiving labor services in the current period;
The subtotal of cash inflows from investing activities increased by 40.33% year-on-year, mainly because the wealth management products redeemed in this period increased by approximately 85 million yuan compared with the same period last year;

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The subtotal of cash inflows from financing activities increased by 1401.45% year-on-year, mainly because the cash obtained from discounting bills in this period increased by approximately 246 million yuan compared with last year; cash outflows from financing activities decreased by 79.11% year-on-year, mainly due to the repayment of the principal and interest of financial holding loans in the previous period of approximately 160 million yuan;
The net increase in cash and cash equivalents increased by 148.68% year-on-year, mainly due to the substantial increase in net cash flows from investing activities and financing activities.

Explanation of the reasons for the significant difference between the company's net cash flow generated from operating activities during the reporting period and the current year's net profit

☑Applicable □Not applicable

During the reporting period, the net cash flow generated from operating activities was -115.7353 million yuan, and the net profit was 18.0523 million yuan. The main reason for the difference was the increase in operating notes receivable, which had been used as cash inflow from financing activities.

5. Analysis of non-main business

☑Applicable □Not applicable

Unit: Yuan Amount Proportion to total profit Explanation of reasons Whether it is sustainable

Mainly trust products

Investment income 7,874,289.70 39.93% No

Benefit.

Gains and losses from changes in fair value -165,128.00 -0.84% No

Mainly long-term deferred expenses

Asset impairment -2,538,451.19 -12.87% No

Impairment losses.

Non-operating income 509,972.29 2.59% No

Non-operating expenses 835,234.22 4.23% No

Other income 16,445,840.56 83.39% Mainly due to government subsidies. No

6. Analysis of assets and liabilities

Major changes in asset composition

Unit: Yuan End of 2025 Early 2025

Increase or decrease in proportion Amount explained for major changes Proportion to total assets Amount Proportion to total assets

Trust products are redeemed in this period, and this period

346,768,170. 207,363,146.

Monetary funds 34.97% 34.10% 0.87% Newly added subsidiary funds 11 93

Hongxin Materials monetary funds.

Acquisition of Jinhong in this period

218,520,524. 139,581,939.

Accounts receivable 22.03% 22.95% -0.92% New Materials Consolidated Data 30 21

increase. Contract assets 0.00%

18,665,612.8 34,058,655.5 Subsidiary stockist inventory 1.88% 5.60% -3.72%

9 8 products reduced. Investment real estate 0.00%

Long-term equity investment 0.00%

Acquisition of Jinhong in this period

165,435,181. 13,494,475.4

Fixed assets 16.68% 2.22% 14.46% New Materials Consolidated Data 41 6

increase. Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Construction in progress 108,075.33 0.01% 0.01%

According to the new lease standard, periodic depreciation resulted in a decrease; and 12,560,458.6

Right-of-use assets 4,677,762.89 0.47% 2.07% -1.60% The transfer of subsidiary Nanhua Peace in the current period resulted in a decrease in right-of-use assets.

The acquisition of Jinhong in this period is 270,254,392.

Short-term borrowings 27.25% 27.25% The consolidated data of new materials increased.

201,445,948. 185,176,948. Contract liabilities for advance receipts in the current period 20.31% 30.45% -10.14%

34 66 increase.

Acquisition of Jinhong 52,950,000.0 in this period

Long-term borrowings 5.34% 9,000,000.00 1.48% 3.86% The consolidated data of new materials increased.

According to the new lease agreement 10,449,883.6

Lease liabilities 3,235,879.48 0.33% 1.72% -1.39% Otherwise, due to the decrease in lease payments payable. Jinhong was acquired for 101,958,952 in this period.

Notes receivable 10.28% 10.28% The consolidated data of new materials increased.

Acquisition of Jinhong 15,630,255.1 in this period

Prepayments 1.58% 3,885,112.92 0.64% 0.94% The consolidated data of new materials increased.

Nanhua 18,021,005.5 is transferred in this period

Other receivables 1.82% 4,393,557.13 0.72% 1.10% Heping Equity Receivables increased.

Other non-current funds 100,000,000. Redemption trust in this period 0.00 0.00% 16.44% -16.44%

Financing Assets 00 Products.

Acquisition of Jinhong 55,811,301.2 in this period

Intangible assets 5.63% 1,857,086.22 0.31% 5.32% The consolidated data of new materials increased.

The acquisition of Jinhong goodwill in this period 6,226,910.53 0.63% 1,983,226.77 0.33% 0.30% New materials resulted in an increase in goodwill.

Nanhua 10,833,889.6 transferred in this period 73,749,023.1

Long-term deferred expenses 1.09% 12.13% -11.04% Peaceful consolidation data 3 0

reduce.

Deferred income tax assets acquired from Jinhong in this period

8,708,420.46 0.88% 1,915,770.17 0.32% 0.56% New Materials Consolidated Data Products

increase.

Nanhua 14,715,783.6 transferred in this period 84,466,271.2

Accounts payable 1.48% 13.89% -12.41% Peaceful consolidated data 0 4

reduce.

Acquired Jinhong 15,358,316.6 in this period

Taxes payable 1.55% 4,437,781.78 0.73% 0.82% The consolidated data of new materials increased.

The acquisition of Jinhong in this period is 14,801,206.9 due within one year.

1.49% 4,608,415.22 0.76% 0.73% New Materials Consolidated Data Non-Current Liabilities 7

increase.

Acquisition of Jinhong 26,641,263.4 in this period

Deferred income 2.69% 1,099,026.92 0.18% 2.51% The consolidated data of new materials increased.

Deferred income tax liability for the current acquisition of Jinhong

6,242,192.96 0.63% 151,713.49 0.02% 0.61% New Materials Consolidated Data Bond

increase.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The proportion of overseas assets is relatively high

□Applicable ☑Not applicable

Assets and liabilities measured at fair value

☑Applicable □Not applicable

Unit: Yuan included in equity

Fair in this period

Accumulated public accrual in the current period Purchases in the current period Sales in the current period

Item Opening amount Change in value Other changes Closing amount Impairment amount Amount due to change in fair value

Profit and loss

move

financial assets

Transactional

Financial assets - - -

607,889.0

(Excluding derivatives 161,526.0 1,383,220 446,363.0 0.00 Financial 0 .95 0 assets)

- -Financial assets 607,889.0

161,526.0 1,383,220 0.00 0.00 0.00 446,363.0 0.00Subtotal 0

0.95 0 - - -

607,889.0

Total of the above 161,526.0 1,383,220 0.00 0.00 0.00 446,363.0 0.00

0 .95 0Financial liabilities 0.00 0.00 0.00Other changes

Other changes are due to the corresponding decrease in trading financial assets in the current period with the transfer of subsidiary Nanhua Peace.

Whether there are any significant changes in the measurement attributes of the company's main assets during the reporting period

□Yes ☑No

Restrictions on asset rights as of the end of the reporting period

End of the year Beginning of the year

Project

Book balance Book value Restriction type Restriction situation Book balance Book value Restriction type Restriction situation

Account key information

Monetary funds 3,144.99 3,144.99 Others 30,000.00 30,000.00 Pledge L/C margin pledge

Outdated

Notes receivable 100,486,068.98 99,983,638.64 Pledge Discount

Accounts receivable 147,265,861.92 145,793,203.30 Pledge Factoring

Fixed assets 73,740,651.57 69,219,887.68 Mortgage Guaranteed mortgage loan

Intangible assets 34,229,633.30 32,415,668.07 Mortgage Guaranteed mortgage loan

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Total 355,725,360.76 347,415,542.68 —— —— 30,000.00 30,000.00 —— ——

7. Investment status analysis

Overall situation

☑Applicable □Not applicable

Investment amount during the reporting period (yuan) Investment amount during the same period last year (yuan) Change range

78,624,900.00 2,966,721.00 2,550.23%

Major equity investments obtained during the reporting period

☑Applicable □Not applicable

Unit: yuan as of

assets

Invested Disclosure Disclosure

Liabilities current period

Zi Gong Main Investment Investment Shareholding Fund Cooperation Investment Product Expected Whether Date Index

Statement Date Investment

Company name Business method Amount Proportion Source Party Term Type Income Litigation involved (such as (such as

Profit and loss

say have) have) display

situation

2025 -

Carbonated Hunan

Loudi 054

Lithium Sales Jin Hong

Jin Hong 48,6 2025,

Sale, recycling No solid 1,00 2,33

New materials 24,9 43.0 Own Recycling Completed Year 09 2025

Scrap steel acquisition resources regular 0,00 1,21 No

It is expected that there will be 00.0 5% capital resources into month 06 -

Add group limit 0.00 0.93

Limited public 0 day 059

Works, Limited

Division, sales company

2025 2025 -

Carbonated Hunan

Loudi 054

Lithium Sales Jin Hong

Jin Hong 30,0 2025,

Sold, recycled, solid-free

New Materials 00,0 11.9 Own Recycling Completed Year 09 2025

Scrap steel Capital increase Resources Regular 0.00 0.00 No

It is expected that there will be 00.0 5% capital resources into month 06 -

Add Group Limited

Limited public 0 day 059

Works, Limited

Division, sales company

2025 78,6

1,00 2,33

24,9

Total -- -- -- -- -- -- -- -- 0,00 1,21 -- -- -- 00.0

0.00 0.93

Major non-equity investments ongoing during the reporting period

□Applicable ☑Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Financial asset investment

(1) Securities investment situation

☑Applicable □Not applicable

Unit: Yuan

credited

Equity in this period

Initial Accounting Beginning of Period Fair Accumulation Current Period Current Period Report End of Period Accounting Securities Securities Securities Funds

Investment Measurement Book Value Accounting Purchase Sale Period Loss Book Accounting Type Code Abbreviation Source Cost Mode Value Change Fair Price Amount Amount Loss Value Account Profit and Loss Value Change

move

Transactions onshore 1,766 Fair - -

00080 Beijing 489.9 1,147 316.0 Xingjin foreign shares, 859. Value 173.9 0.00 173.9 0.00 Owned

2 Culture 51.00,461.29.00 Financing notes 34 Measurement 22.00 22.00

00 produced

Domestic transactions are fair - - -

00202 Suning 327,1 47,99 40,30 Xingjin Foreign Shares Value 7,689 231,6 0.00 7,689 0.00 Owned

4 Tesco 09.92 8.00 9.00 Financing Note Measurement .00 02.00 .00

produce

Domestic transactions are fair -

30025 Jinxin 94,18 69,94 20,08 90,02 20,08 Xingjin Foreign Shares Value 4,157 0.00 0.00 Owned

2 Nuo 2.95 0.00 5.00 5.00 5.00 Financing Bill Measurement .95

Produce-

2,188 - -

607,8 1,383 446,3

Total ,152. -- 161.5 0.00 161.5 0.00 -- -- 89.00 ,220. 63.00

21 26.00 26.00

(2) Derivatives investment situation

☑Applicable □Not applicable

Derivative investments for the purpose of hedging during the reporting period

☑Applicable □Not applicable

Unit: 10,000 yuan

Ending investment included in equity

The fair amount for the current period is shared by the public

Cumulative disclosure of initial investment and opening capital During the reporting period During the reporting period

Derivatives investment type Change in value Ending amount Capital amount during the reporting period Change in fair value Purchase amount Amount sold

Profit and loss Net assets at the end of the period

Proportional futures hedging contract 59.3 0 0 0 59.3 59.3 0 0.00% Total 59.3 0 0 0 59.3 59.3 0 0.00% Hedging during the reporting period

accounting policy of value business

policies, accounting tools

During the reporting period, the company's hedging business was conducted in accordance with the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" and the "Accounting Standards for Business Enterprises", as well as with

No. 37 - Presentation of Financial Instruments" and "Accounting Standards for Business Enterprises No. 3 - Fair Value Measurement"

Compared with the previous reporting period

Have any major changes occurred?

Description of

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Actual profit and loss during the reporting period

Investment income recognized during the reporting period was -355,000 yuan.

Description of the situation

Companies with hedging effects use lithium carbonate futures hedging contracts to hedge and manage the selling price risks of lithium carbonate products to provide support and guarantee for the development of spot business. The business scale in 2025 will be small and will not have a significant impact on hedging products.

Derivatives investment funds

Own funds.

Source

Risk analysis: (1) Market risk: The uncertainty of commodity price changes leads to greater market risks in futures business. (2) Liquidity risk: Futures hedging contracts may bring liquidity risks due to inactive trading, making it difficult to close transactions. (3) Derivatives holdings during the operating reporting period

Risks: Derivatives market transactions are highly professional and complex, and may result in incorrect orders due to imperfect internal control systems. Risk analysis and analysis of operational positions

risk. (4) Legal risks: Due to changes in relevant legal systems or violations of relevant legal systems or contractual agreements by counterparties, explanation of joint control measures

The contract cannot be executed normally and may cause losses to the company.

(Including but not limited to

Control measures: (1) The company’s futures hedging business is not allowed to conduct speculative transactions, and adheres to the principle of prudent and steady operation. For hedging market risk, liquidity

Business, strictly limit the amount of hedging not to exceed the actual number of spot transactions, and the futures position amount should not exceed the spot risk and credit risk of hedging.

quantity and implement a stop-loss mechanism. (2) The company strictly controls the scale of hedging transactions and reasonably plans and uses margins. (3) Corporate insurance, operational risk,

There are clear authorization processes and job separation mechanisms, and risk control through business processes, decision-making processes and transaction processes can effectively reduce risks and legal risks, etc.)

Risk. (4) The company strengthens the study of laws, regulations and market rules, strengthens compliance inspections, and ensures that the company’s derivatives investment and position operations comply with the requirements of laws, regulations and the company’s internal management system.

Invested Derivatives Report

Market price during the reporting period

or product fair value

Changing circumstances, yes

Fair value of derivatives The fair value is determined based on the closing price of the futures exchange.

The analysis should disclose specific

methods of use and

Relevant assumptions and parameters

settings

Cases involved in the lawsuit (if appropriate

Not applicable.

use)

Derivative investments for speculative purposes during the reporting period

□Applicable ☑Not applicable

There were no derivative investments for speculative purposes during the reporting period.

8. Sales of major assets and equity

Sale of major assets

☑Applicable □Not applicable

Is this issue

Assets from inception

Sold and handed over as soon as possible

The date of actual sale of the period involved in Yidui is

Selling municipal public and private facilities, is the asset

Transaction Contribution to the company Related assets Claims If not produced, the asset is produced.

Transaction Sale Price Company's Contribution Relationship Equity Debt Calculation Disclosure Disclosure of Capital Sales Listing Sale Pricing Related

Counterparty Date (10,000) Impact on net profit (appropriate Whether it is cost-effective) Date Index Property Company Principle Contact

Yuan) (Note: Run occupation clearance has been fully implemented, contribution is required.

Net profit should be transferred from department to department.

Runzong Yiqing account transfer explains the profit

forehead shape) reason (10,000

Ratio and A.D.)

Si has

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

measures taken

This time

Easy to be strict

Follow the public

transaction

Ping, Gong

This time the other party

Righteous, fair

Transaction for the public

Yun's business

Completed Si Jian

Ye Yuan

After that, take control

Then, refer to

company shares

According to the market

Hunan Business East Lake

Similar application 2025 2025 Provincial Finance Nature Nancai

2025 Receipts and Payables Year - Credit - Cash Flow Credit

Receivable Year 11 2,34 7.00 Payment 11 068 Property Management 201. General Yes Financial Control Yes Yes Yes

Accounts Month 17 1.44% Yi Dejiao Month , Li You 94 should increase the number of shares

Japanese example, limited to 15 2025, the group has

The subject information is -069 Company Asset Co., Ltd.

produce

Liabilities

2024

Structure

annual report

get core

audited

Excellent Holdings

Book price

ation. Zigong

value base

Division

Basic determination

transaction price

Grid.

Sale of major equity interests

☑Applicable □Not applicable

This issue

Is the equity based on the initial starting date?

For sale, plans are coming soon

For the last issue

Sale date involved

Municipal public facilities, such as the stock and the transaction

Whether the transaction sold Sigong's equity was not disclosed as calculated and the rights were transferred to Yidui's equity

Transaction sale price Sale to public offering Whether the relevant plan is disclosed Disclosure of the listing party

The counterparty, Japan (10,000), the company’s net profit pricing, is subject to the Exchange’s measures, and the company’s association with Japan’s index rights has been completed.

yuan) influence profit sharing principle easy to explain period contribution relationship department process

Net profit reasons and net accounts

Mr. Run, the company has made a profit

The amount taken (ten thousand

Proportional measure

Yuan)

Passed this time

Nanhua Equity Hunan

Heping Transfer to Provincial Federation 2025-Zhongguan 202 Hospital Transfer, Joint Production 031, New Energy 5 Management 2025 Further Power Transfer 2025-Science and Technology Year (Lake Year 10 1,999 - Step-Exchange 049, (Shenzhen No None Yes Yes 06 South) Month 31.19 151.8 Consolidation and 2.37% Listed 2025-Shenzhen) Optimized 058, Co., Ltd. 19 companies went public, 2025-Company listed 52% shares of the company 063 rights settled at the lowest price

structure, for evaluation

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Comply with the estimate

company value.

Whole

business

develop

Need

Want.

9. Analysis of major holding and participating companies

☑Applicable □Not applicable

Information about major subsidiaries and joint-stock companies that affect the company's net profit by more than 10%

Unit: Yuan

Company name Company type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit Hospital operation

management; health

Nanhua Peace Medical Products

-Hospital management industry; project 149,087,0 47,324,96 16,225,58

Management of subsidiaries 23762589 11,266,61 10,895,96 (Hunan); 07.17 9.86 7.18

1.81 3.62 Co., Ltd. Hospital Management

management consulting

Waiting for business

biological resources

Source, stem fine

Hunan Fraternity Cellular and Immunology

Bumrungrad Stem Cell Suit -

70,082,81 29,504,93 869,542.5 389,071.3 Cellular tissue engineering subsidiary Business, biology 10000000 2,753,540

3.60 1.60 6 0Cheng Limited Liability Translational Medicine .10

Ren company technical services

and sales industry

Services etc.

biological resources

Source, stem fine

Cellular and Immunity

Hunan Nanhua - -

Cell storage 183,979,9 28,686,83 57,955,72 Technology Co., Ltd. Subsidiary 6000000 315,150.4 992,833.2

and biotransformation 48.56 4.42 1.52 company 1 4 chemical medical technology

Technical services, etc.

business.

Nam Hua Gan Xi

cellular regenerative medicine

Medical Devices -

Clinical transfer 32,834,71 29,536,99 14,919,33 14,919,48

Subsidiaries Sales and other industries 50000000 34,940,71

Under chemical research 1.83 6.16 6.21 9.77

service. 4.40

The heart has limited responsibilities

Ren company

Energy saving and environmental protection

products, photos

Ming equipment,

Hunan Nanhua lighting fixtures

- -Energy-saving and environmentally friendly materials, power generation 13,992,35 8,414,663

Subsidiaries 20000000 221,584.1 3,079,986 3,350,349 Technology Co., Ltd. Equipment, electricity 7.18 .62

4.77.04 Company Power Equipment,

Electrical equipment

and related

Intelligent system

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

R&D,

production, sales

sale; energy saving

device (not

Including special equipment

(preparation) modification

Manufacturing and installation

and related

Technology development

development, technology

Service and technology

technical consultation;

Energy saving and environmental protection

products and equipment

equipment management

and leasing.

Lithium carbonate pin

Loudi Jinhong

Sales and scrap steel 550,533,0 156,951,8 288,069,9 3,195,156 2,331,210 New Materials has subsidiaries 124644200

Processing and sales 19.74 06.60 42.05 .41 .93 Co., Ltd.

for sale

Acquisition and disposal of subsidiaries during the reporting period

☑Applicable □Not applicable

Company name Method of acquiring and disposing of subsidiaries during the reporting period Impact on overall production operations and performance Loudi Jinhong New Materials Co., Ltd. Purchase of equity in Nanhua Heping Hospital Management (Hunan) Co., Ltd. Equity transfer Description of major holding companies

None.

10. Structured entities controlled by the company

□Applicable ☑Not applicable

11. Prospects for the company’s future development

(1) Future development strategy

The company will continue to adhere to the core strategy of coordinated development of the dual main businesses of "biomedicine + energy conservation and environmental protection", with cell medical technology and resource recycling as the core development direction.

Adhere to the bottom line of compliance operations, practice the development concepts of innovation-driven, industrial collaboration, quality and efficiency improvement, steadily promote the extension of the industrial chain and business integration, and continue to improve the core

competitiveness and profitability, achieve high-quality and sustainable development, and strive to build a leading domestic comprehensive service provider of cellular medical services and green circular economy.

(2) Business plan for 2026

2026 is a critical year for the company to deepen business integration and achieve high-quality development. Based on the long-term development strategy, the company plans overall work for the whole year and concludes

Based on the actual layout of the company's two core businesses of biomedicine and energy conservation and environmental protection, we have formulated the following work ideas and plans to strive to promote the continuous improvement and development of the company's operating quality.

The pattern continues to expand, effectively safeguarding the legitimate rights and interests of the company and all shareholders, and ensuring that all work is implemented in an orderly and compliant manner.

Strengthen strategic guidance and promote high-quality development of the main business

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The company will continue to play the core role of strategic leadership, closely integrate national industrial policy guidance, biomedicine, energy conservation and environmental protection industry development trends and the company's actual operating conditions, further optimize the company's strategic layout, and clarify the core business development direction and business expansion path. Coordinate and promote the coordinated development of all subsidiaries, strengthen resource integration and business linkage, and enhance the company's overall innovation capabilities and core competitiveness. We will closely track industry policy trends, actively respond to operational challenges brought about by policy adjustments, accurately seize industry development opportunities, and fully promote the improvement of quality and efficiency of core biopharmaceutical businesses and the steady expansion of energy conservation and environmental protection businesses to ensure the high-quality development of the company's main business and lay a solid foundation for sustainable development.

Promote industrial integration and continue to broaden development paths

The company will focus on the core development strategies of biomedicine, energy conservation and environmental protection, adhere to the combination of endogenous growth and extension development, base on industrial chain collaboration and business quality and efficiency improvement, prudently carry out industrial research and target selection, and steadily promote industrial integration and resource optimization. Strictly comply with regulatory rules to perform necessary decision-making procedures and information disclosure obligations, attach great importance to post-investment management and business integration, and promote resource sharing, complementary advantages and synergy among various business segments. We will continue to dig deep into core tracks to reserve high-quality industrial resources, lay a solid foundation for industrial upgrading, further broaden the development pattern, and enhance the company's core competitiveness and sustainable development capabilities.

Focus on improving business quality and build a solid foundation for profitable growth

The company will urge the management to focus on the core business, continue to promote cost reduction and increase efficiency, optimize the organizational structure and staffing, improve the salary assessment and incentive mechanism, improve the dynamic monitoring and early warning mechanism of expenses, strictly control various expenses and expenditures, and improve the efficiency of fund use. Deepen the cell business, strengthen market expansion and customer service, and consolidate its pillar position; promote the development of beauty, air purifiers, health products and other businesses, increase the proportion of high-gross profit products, and cultivate new profit growth points. Accelerate further integration of resource recycling business, improve business layout, improve operation and management efficiency, deepen coordinated development with holding subsidiaries, release synergy effects, and help subsidiaries achieve profit growth.

Strictly adhere to the bottom line of disclosure and improve the quality of information disclosure

Persist in fulfilling information disclosure obligations in accordance with laws and regulations, adhere to the core principles of authenticity, accuracy, completeness, timeliness and fairness of information disclosure, and effectively protect investors’ right to know. Strictly comply with regulatory requirements, standardize the preparation and timely disclosure of regular reports, temporary reports and other types of information to ensure that the disclosed content contains no false records, no major misleading, and no major omissions. On the basis of strictly adhering to the bottom line of compliance, we strive to improve the pertinence, readability and transparency of information disclosure, proactively expand the scope of voluntary information disclosure, and comprehensively and objectively convey the company's operating results, strategic progress and risk matters. At the same time, we strictly implement the insider information registration and management system, strengthen the management of inside information, prevent information leakage, continuously enhance the quality and value of information disclosure, and maintain the open and transparent order of the capital market.

Promote management upgrading and strengthen talent and party building guarantees

We will continue to promote the refinement and upgrading of the company's management, focus on weak links in management, optimize business processes, strengthen department coordination and linkage, and improve management standardization, refinement and operational efficiency. Increase investment in core technology research and development, focus on core product and key technology innovation, and cultivate unique core technology advantages. Strengthen team building, strive to improve the comprehensive quality and duty performance capabilities of middle and senior managers, and build a professional and excellent core management team. Adhere to party building to lead and empower, give full play to the battle fortress of the party branch

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The role of a stronghold and the vanguard and exemplary role of party members promotes the in-depth integration of party building and business operations. Strengthen the construction of corporate culture, build consensus on the development of all employees, and gather strong synergy for high-quality development.

(3) Risks the company may face and countermeasures

Risk of reduced potential customers

The nationwide newborn delivery rate continues to decline, resulting in a decrease in potential customers for the newborn stem cell storage business, which puts certain pressure on the growth of the company's traditional cell business. Countermeasures: Accelerate the diversified layout of product pipelines, vigorously promote the storage business of adult immune cells and adipose mesenchymal stem cells, and reduce reliance on a single business; strengthen brand promotion and marketing, enhance professional service capabilities, and increase customer conversion rates; rely on existing channels to expand institutional customers, promote the clinical transformation and application of cell technology, develop new business growth points, and stabilize the risk of market fluctuations.

Industry regulation, industry policy risks and technology development risks

The company's main business is cell medicine and comprehensive utilization of renewable resources, both of which are strongly regulated industries. Relevant laws, regulations and industrial policies continue to be iteratively improved. At the same time, industry technology iterations are accelerating. If the company cannot adapt to policy changes in a timely manner and keep up with the pace of technological innovation, it will have an adverse impact on operations. Countermeasures: Arrange dedicated personnel to closely track industry policy trends, adjust business strategies in a timely manner, and ensure compliant operation of the entire business process; focus on taxation and access policies in the field of renewable resources, and fully enjoy policy dividends; deepen industry-university-research cooperation, increase R&D investment and talent introduction, promote iterative upgrading of core technologies, and reduce the risk of lagging technology development. 3. Market competition risks

The market prospect in the field of biomedical cells is broad, industry participants continue to increase, and competition is becoming increasingly fierce; in the field of comprehensive utilization of renewable resources, the company faces dual pressures from the scale squeeze of national leading enterprises and price competition from small and medium-sized enterprises. Countermeasures: Adhere to the business strategy of "technology promotes sales, and sales feed back research and development", strengthen regional market penetration, and enhance customer stickiness; create differentiated advantages in products and services through technological innovation, and the biopharmaceutical sector consolidates regional channels and technical barriers. Jinhong New Materials relies on the advantages of production capacity, technology, and customer resources to optimize product structure, gradually expand markets outside the province, and enhance core competitiveness.

Financial risks

First, the subsidiary Jinhong New Materials is still in the business expansion period and requires continued capital investment, and its performance contribution may fluctuate; second, fluctuations in raw material prices and product market prices may cause the company's gross profit margin to fluctuate and net profits to decline. Countermeasures: Increase the market development of core main businesses, increase market share and revenue scale, promote the rapid expansion of subsidiary businesses, and enhance profit contribution; continue to promote cost reduction and efficiency increase, optimize the cost of the entire process of procurement, production, and operation; strengthen dynamic monitoring of gross profit margins, optimize business structure, increase the proportion of high-gross profit businesses, and stabilize the company's profitability; at the same time, formulate special post-investment integration and cost control plans to strictly control operating risks.

12. Receive research, communication, interviews and other activities during the reporting period

☑Applicable □Not applicable

The main topic of discussion

Basic information of the survey: reception time, reception location, reception method, type of reception objects, reception objects, content and information provided.

condition index information

Participate in 2025 Company 2024 For details, please see

Panorama Network "Investment"

In September 2025, the online platform will be listed in Hunan Province until the first half of 2025. The company will be launched in 2025

"Interaction with other users" Others

19th Exchange Company Investor Network Performance, Company Platform on September 16th

On the collective reception day, governance and development war on cnchao.com

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

and semi-annual results, announcements and briefings disclosed on strategy, operating conditions, activities and sustainable development (announcement number:

etc. 2025-057)

13. Formulation and implementation of market value management system and valuation improvement plan

Whether the company has formulated a market value management system.

□Yes ☑No

Whether the company has disclosed plans to increase its valuation.

□Yes ☑No

14. Implementation of the “Double Improvement of Quality and Return” action plan

Has the company disclosed an announcement on the “Dual Improvement of Quality and Return” action plan?

□Yes ☑No

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Section 4 Corporate Governance, Environment and Society

1. Basic situation of corporate governance

During the reporting period, the company strictly complied with the requirements of laws, regulations and normative documents such as the Company Law, Securities Law, Code of Governance for Listed Companies, Listing Rules, Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies, and continuously improved the corporate governance structure, established and improved the company's internal control system, further standardized work operations, improved corporate governance levels, conducted information disclosure, and effectively safeguarded the legitimate rights and interests of the company, shareholders and related stakeholders.

(1) About shareholders and shareholders’ meetings

The company strictly complies with the Company Law, Rules of Shareholders' Meetings of Listed Companies, Articles of Association, Rules of Procedure for Shareholders' Meetings and relevant regulations of the securities regulatory authorities, standardizes the convening, convening and voting procedures of shareholders' meetings, and creates convenient conditions for shareholders to participate in shareholders' meetings, ensuring the equal status of all shareholders, especially public shareholders, and fully exercising their rights. At the same time, the company hired professional lawyers to witness the shareholders' meeting to ensure that the meeting convening and voting procedures complied with relevant legal regulations and safeguarded the legitimate rights and interests of shareholders.

During the reporting period, the company held a total of 1 annual shareholders' meeting and 4 extraordinary shareholders' meetings. All meetings were convened and held by the board of directors in accordance with the law.

(2) About the company and controlling shareholders

Hunan Caixin Industrial Fund Management Co., Ltd., the company's controlling shareholder, strictly abides by the "Code of Corporate Governance for Listed Companies", "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1 - Standardized Operations of Main Board Listed Companies" and the "Articles of Association" and other regulations, regulates its own business behavior, has not directly or indirectly interfered with the company's decision-making and operating activities beyond the shareholders' meeting, and has not used its control position to harm the interests of the company and other shareholders (especially small and medium-sized shareholders). There is no situation where the controlling shareholder has occupied the company's funds, and the company has provided guarantees for the controlling shareholder. The company has an independent and complete business system and independent operating capabilities. It is independent from its controlling shareholders and related parties in terms of business, assets, personnel, institutions, and finance. The board of directors and internal organizations operate independently and standardizedly in accordance with the company's articles of association to ensure the independence and compliance of the company's operating decisions.

(3) About directors and board of directors

During the reporting period, the company elected directors and established a board of directors in accordance with the procedures stipulated in the Articles of Association and the Rules of Procedure of the Board of Directors. During the reporting period, the company successfully completed the election of the board of directors. The twelfth board of directors of the company consists of 7 directors, including 3 independent directors and 4 non-independent directors (including 1 employee representative director), which meets relevant requirements. The board of directors is convened and convened in strict accordance with the procedures of the Articles of Association and the Rules of Procedure of the Board of Directors. All directors can carry out their work in accordance with the "Rules of Procedure for the Board of Directors", "Working System for Independent Directors", "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies" and other provisions, attend the board of directors and shareholders' meetings, perform their duties and obligations diligently and responsibly, and at the same time actively participate in relevant training and become familiar with relevant laws and regulations.

(4) Information disclosure and transparency

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The company strictly complies with the requirements of relevant laws and regulations to disclose relevant information truthfully, accurately, timely, fairly and completely, and designates the secretary of the company's board of directors to be responsible for information disclosure, coordinate the relationship between the company and investors, receive investor visits, answer investor inquiries, and provide investors with the company's disclosed information; and designates Juchao Information Network (www.cninfo.com.cn) as the designated website for the company's information disclosure, and "Securities Times" and "Shanghai Securities News" as the designated newspapers and periodicals for the company's regular report disclosure, ensuring that all shareholders of the company have equal opportunities to obtain information.

(5) About relevant stakeholders

The company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, actively cooperates with relevant stakeholders, strengthens communication and exchanges with all parties, achieves the coordination and balance of the interests of society, shareholders, companies, employees and other parties, and jointly promotes the company's sustainable and steady development.

(6) About investor relations management

The company can fully respect and safeguard the legitimate rights and interests of relevant stakeholders, achieve coordination and balance of the interests of investors, employees, society and other parties, and jointly promote the company's sustainable and healthy development. The company communicates with investors through announcements, phone calls, consultations, investor interaction platforms and other methods to enhance investors' understanding of the company's operating conditions and development prospects and maintain good relationships with investors.

Whether there are major differences between the actual situation of corporate governance and the laws, administrative regulations and regulations on the governance of listed companies issued by the China Securities Regulatory Commission

□Yes ☑No

There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and regulations on the governance of listed companies issued by the China Securities Regulatory Commission.

The company’s independence from its controlling shareholders and actual controllers in ensuring the company’s assets, personnel, finance, organization, business, etc.

The company has an independent and complete main business and independent operating capabilities. It is independent of the controlling shareholder and actual controller in terms of personnel, assets, business, institutions and finance. It can operate independently, operate independently, and bear responsibilities and risks independently.

The company's business is independent: the company has a clear business scope and independent operating capabilities, and there is no situation where it is impossible to distinguish asset boundaries from the controlling shareholder. 2. Company personnel are independent: The company has established an independent personnel system and a complete salary management system, and has an independent workforce. These employees all signed labor contracts with the company, received wages from the company, and were completely separated from the controlling shareholder and its affiliated companies; the company's chairman, general manager, deputy general manager, board secretary, financial director and other senior management personnel all received wages from the company and did not work part-time and receive wages from the controlling shareholder's unit.
The company's assets are independent: The company's assets are complete and independent, and the property rights relationship is clear. There is no situation where assets and funds are occupied by the controlling shareholder, and the company's assets are completely independent of the controlling shareholder.
Institutional independence of the company: In accordance with the provisions of the Company Law, Securities Law and other relevant laws, regulations and rules, the company has established a legal person governance structure with checks and balances of powers and responsibilities of the shareholders' meeting, the board of directors, and managers. It has established and improved the legal person governance structure and has an organizational system that is independent of the controlling shareholder. The company's shareholders' meeting and the board of directors operate independently.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The company is financially independent: The company has an independent financial department, financial director and financial accounting staff, and has established an independent financial accounting system and financial management.

management system. The company opens an independent bank account, pays taxes independently in accordance with the law, makes independent financial decisions, and declares and pays taxes independently in accordance with the law.

3. Competition within the industry

□Applicable ☑Not applicable

4. Directors and senior managers

Basic situation

Current period Beginning of this period Others End of period Increase in shareholding Decrease in shareholding Term Term Increase or decrease in shareholding Increase or decrease in shareholding

Position Share Share Name Gender Age Position Start End Number Change Number Change Status Quantity Quantity Date Date (share (share (share (original (share) (share))) reason) ) 2021 2028

Year 12 Year 08

Director Current

Month 29 Month 05

day day

2022 2028

Director Year 01 Year 08

Yang Yun Male 46 Current 0 0 0 0 0 0 Chief Month 05 Month 05

day day

2025 2028

Total experience Year 08 Year 08

Incumbent

Management month 08 month 05

day day

2025 2028

Year 08 Year 08

Chen Qun Male 42 Director Current 0 0 0 0 0 0 month 06 month 05

day day

2026 2028

Year 02 Year 08

Jiang Yuan Female 38 Director Current 0 0 0 0 0 October December 05

day day

2024 2028

She Li, independent year 10, 08

Female 57 Current 0 0 0 0 0 0 Director Month 08 Month 05

day day

2024 2028

Independence year 04 year 08

Lin Feng Male 46 Current 0 0 0 0 0 0 Director Month 24 Month 05

day day

2025 2028

Julie independent year 08 year 08

Female 52 Current 0 0 0 0 0 0Mei Director Month 06 Month 05

day day

2025 2028

employees

Year 07 Year 08

Chen Yi Female 43 Representative Current 0 0 0 0 0 0 month 30 month 05

director

day day

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

2022 2028 Directors

Year 02, Year 08, Secretary, current

November 05 book

Day Su Liang Male 46 0 0 0 0 0 0 2022 2028 Vice President Year 04 Year 08 Current position

Manager Month 01 January 05 Day 2015 2028 Finance

Year 01 Year 08 Responsible Current

Month 27 Month 05 people

Lin Peng Japanese male 53 0 0 0 0 0 0 Bin 2018 2028 Vice President Year 08 Year 08 Current position

Manager August 05, 2022 2028 Liu Ai Vice President, 04, 08, Male 48 Current 0 0 0 0 0 0 Long Manager, January 05, 2025 2025 Chen Wen, 08, 12, Male 43 Director Resigned 0 0 0 0 0 0 Bo, June 26, 2021 2025 Cao Hai 2025-08 Male 46 Director Resigned 0 0 0 0 0 0Yi 29-08 Male 53 Resigned 0 0 0 0 2025-12-08 Male 45 Director Resigned 0 0 0 0 0 2025-08 Male 2021 2025Yu Chang 0 0 0 Qiao General Manager January 29 06 Manager Day 2021 2025 Zhao Ya Independent Year 12 08 Male 57 Resigned 0 0 0 0 0 0 Qing Director Month 29 06 Day 2021 2025 12 08 Shen Chen Male 39 Supervisor Resigned 0 0 0 0 0 October 29 06 Supervisor

2021 2025 things,

2012 08 Qiu Jian Female 54 Supervisor Resigned 0 0 0 0 0 0 0 0 0 0 0 29 06 Chairman

Day dinner

2022 2025 employees

Year 03 Year 08 Yan Feng Male 44 Representative Resigned 0 0 0 0 0 October 09 September 06 Supervisor

Day Day 2018 2025Vice President Year 08 08 Chen Yong Male 55 Resigned 0 0 0 0 0 0 Manager Month 08 06 Day

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Total -- -- -- -- -- -- 0 0 0 0 0 --

Is there any resignation of directors and senior managers during the reporting period?

☑Yes □No

During the reporting period, the company completed the election of the board of directors and completed the cancellation of the board of supervisors in accordance with the Company Law and relevant regulatory regulations.
Mr. Chen Wenbo, director of the 12th board of directors of the company, resigned as a non-independent director of the company and the special committees of the board of directors on December 26, 2025 due to personal reasons.

position, his resignation report will be effective from the date the company receives it. After his resignation, Mr. Chen Wenbo no longer holds any position in the company.

On January 23, 2026 and February 12, 2026, the company held the eighth meeting of the 12th board of directors and the first extraordinary shareholders meeting in 2026 respectively to review

Passed the motion related to the by-election of directors. Ms. Jiang Yuan was elected as a non-independent director of the 12th Board of Directors of the company, with a term starting from the date of review and approval by the shareholders’ meeting to the date of the 12th Board of Directors.

The term of office shall end on the date on which the term of office of the Board of Directors expires.

Changes in directors and senior managers of the company

☑Applicable □Not applicable

Name Position held Type Date Reason

Director was elected on December 29, 2021, and Yang Yun, Chairman, was elected on January 5, 2022, and was re-elected.

General Manager Appointed August 8, 2025 Chen Qun, Director, was elected August 6, 2025 Jiang Yuan, Director, was elected February 12, 2026 She Liwen, Independent Director, was elected October 8, 2024 Lin Feng, Independent Director, was elected April 24, 2024 Re-election of Zhu Limei, independent director, was elected on August 6, 2025. Re-election of Chen Yi, employee representative director, was elected on July 30, 2025.

Secretary of the Board Appointed February 11, 2022 Su Liang

Deputy General Manager Appointment April 1, 2022 Reelection

Chief Financial Officer Appointed January 27, 2015 Lin Pengbin was re-elected

Deputy General Manager Appointment August 8, 2018 Re-election of Liu Ailong Deputy General Manager Appointment April 1, 2022 Re-election of Chen Wenbo Director Resignation August 6, 2025 Personal reasons Cao Haiyi Director Resignation at the end of the term December 29, 2021 Reelection of Chen Yuan Director Resignation at the end of the term December 29, 2021 Re-election of You Changqiao Director and General Manager Resignation at the end of the term December 29, 2021 Re-election of Zhao Yaqing Director Resignation at the end of the term December 29, 2021 Re-election of Qiu Jian Supervisor and Chairman of the Board of Supervisors Resignation at the end of the term December 29, 2021 Re-election of Shen Chen Supervisor Resignation at the end of the term December 29, 2021 Re-election of Yan Feng Employee Representative Supervisor Resigned at the end of his term. Re-elected on March 9, 2022 Chen Yong, Deputy General Manager Resigned at the end of his term. Re-elected on August 8, 2018

Employment status

The professional background, main work experience and current main responsibilities of the company’s current directors and senior managers in the company

Mr. Yang Yun, non-independent director, chairman and general manager, born in December 1980, member of the Communist Party of China. Bachelor of Economic Law, Hunan University, Financial Information Engineering

Master Cheng, holds the professional qualifications of national second-level construction engineer and senior human resources manager, and has the qualifications to work in the futures and trust industries. Served as Hunan Caixin Financial Holdings

General Manager of the Human Resources Department, Director of the Discipline Inspection and Supervision Office, Director of the Party Committee Office of the Group Co., Ltd., Director of Hunan State-owned Assets Management Co., Ltd.; Hunan Provincial Trust Co., Ltd.

Served as the company's administrative director, head of the party branch, chairman of the labor union, vice president, and chairman of the board of supervisors; from January 2017 to June 2019, selected by the Organization Department of the Hunan Provincial Committee

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Assigned to Xiangtan City on a temporary basis, he has served as member of the Standing Committee of the Xiangtan County People's Government, deputy county magistrate, deputy director of the Xiangtan City Debt Management Office, and financial consultant of the Xiangtan City People's Government; concurrently as an expert member of the PPP expert database of the Ministry of Finance and a tutor for master's degree students in finance at Hunan University; from March 2022 to In February 2023, he concurrently served as director and chairman of Chengguang (Hunan) Energy Saving and Environmental Protection Services Co., Ltd.; he currently serves as director, chairman and general manager of the 12th board of directors of the company, and concurrently serves as the legal representative and chairman of Loudi Jinhong New Materials Co., Ltd.

Mr. Chen Qun, non-independent director, born in March 1984, holds a master’s degree and a master’s degree in economics. From July 2005 to May 2025, he successively served as the engineering supervisor of China Merchants Industrial Group Youlian Shipyard (Shekou) Co., Ltd., senior manager of the seventh business unit of Hualong Securities Beijing Branch, project manager of the Changsha Investment Banking Department of Fortune CLSA, and China Minsheng Head of the bond issuance business team of Changsha Branch of the bank, business manager of Changjiang Securities Hunan Branch, project manager of CITIC Securities Investment Banking Committee Investment Bank (Hunan) Branch, project manager, project supervisor and responsible person of CITIC Securities Investment Banking Committee Investment Banking (Jiangxi) Branch He is the B corner of CITIC Securities Investment Banking Committee in Central China; he is currently the deputy general manager of Hunan Caixin Industrial Fund Management Co., Ltd., a director of Hunan Pharmaceutical Group Co., Ltd., a director of Hunan Airport Industrial Co., Ltd., a director of Shaoshan Huxiang Tourism Development Co., Ltd., the appointed representative of the executive partner of Shanghai Xinji Investment Center (Limited Partnership), and the appointed representative of the executive partner of Hunan Caixin Jingrui Digital Industry Equity Investment Partnership (Limited Partnership); he will serve as a director of the 12th Board of Directors of the company from August 2025.
Ms. Jiang Yuan, non-independent director, born in December 1988, member of the Communist Party of China. Master's degree from Southwest University of Political Science and Law, with legal professional qualification. He once served as salesperson, deputy manager, manager, deputy director, and director of Chongqing International Trust Co., Ltd.; from March 1, 2025 to present, he has served as assistant to the president of the administrative department of Chongqing International Trust Co., Ltd.; he is currently a director of the 12th Board of Directors of the company.
Ms. Chen Yi, employee representative director, was born in November 1983. Graduated from the University of Bristol in the UK majoring in financial management, Master of Science, ACCA Chartered Certified Accountant and senior commercial accountant in the UK. He has successively worked in the Finance Department of the Headquarters of Shanhe Intelligent Equipment Group, the General Management Department of Hunan Caixin Daren Investment Industrial Co., Ltd., the Financial Director of Hunan Jiayun Real Estate Co., Ltd., the Risk Control Supervisor, Chief Accountant, and Board Secretary of Hunan Caixin Real Estate Development Co., Ltd., the Deputy General Manager, the Financial Director, and the Risk Control Director of Hunan Caixin Real Estate Fund Management Co., Ltd.; he joined the company in 2019 and served as Chengguang ( Supervisor of Hunan) Energy Saving and Environmental Protection Services Co., Ltd.; currently serves as employee representative director of the 12th board of directors, assistant to the general manager, chairman of the labor union, and head of the financial department. He also serves as supervisor of Nanhua Stem Cell Regenerative Medicine Clinical Translation Research Center Co., Ltd., supervisor of Hunan Nanhua Biotechnology Co., Ltd., supervisor of Hunan Boai Kangmin Stem Cell Tissue Engineering Co., Ltd., and supervisor of Hunan Aishiweimin Biotechnology Co., Ltd.
Ms. She Liwen, independent director, was born in September 1969. She graduated from Hunan University with a major in accounting and a master's degree. She is a senior accountant. He once served as an executive director of the Hunan Provincial Association of Chief Accountants, an expert on the Hunan Provincial Accounting Advisory Committee, and a member of the Hunan Provincial Zhenggao Accountant Professional Title Review Committee; he has been engaged in corporate financial management for a long time, and served as the director of the Financial Sharing Center and the Director of the Finance Department of the Hunan Branch of China Telecom Co., Ltd., and the director of Hunan Provincial Communications Industry Services Co., Ltd.; he is currently an independent director of Hunan Valin Cable Co., Ltd.; he will serve as an independent director of the company's board of directors from October 2024.
Mr. Lin Feng, independent director, born in September 1980, holds a master's degree in law from Central South University. He has served as legal counsel to Hunan Provincial Department of Science and Technology, Hunan Provincial Department of Agriculture, Hunan Provincial Radio and Television and Satellite TV Channel, Hunan Branch of Great Wall Asset Management Company, Jinjian Rice Industry Co., Ltd., Hunan Golden Eagle Cartoon Co., Ltd., Hunan Good Night Home Furnishing Industrial Co., Ltd. and other enterprises and institutions and government units; joined Beijing Deheng (Changsha) Law Firm in 2007, and is currently a senior partner/deputy director/lawyer; currently an independent director of the company's board of directors.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Ms. Zhu Limei, independent director, was born on May 4, 1974. She holds an EMBA degree from the School of Management of Xiamen University, a master's degree in global management from Tulane University in the United States, and is a Ph.D. candidate in finance at the Institute of Financial Strategy, Chinese Academy of Social Sciences. He once served as the general manager of the comprehensive management department of Pacific Securities Co., Ltd., the vice president of Shenzhen Huicheng Electric Co., Ltd., the executive partner of Shenzhen Qianhai Yuntai Equity Investment Fund Management Co., Ltd., the senior partner of Beijing Shunxin Construction Investment Fund Management Co., Ltd., and the chairman of Beijing Shengshi Liye Engineering Co., Ltd.; since April 2022, he has served as an independent director of Zhongyin Cashmere Industry Co., Ltd.; currently, he is an independent director of the 12th board of directors of the company.
Mr. Su Liang, deputy general manager, secretary of the board of directors, born in February 1980, member of the Communist Party of China, master's degree. From August 2010 to August 2016, he served as an employee and supervisor of the Strategic Development Department of Hunan Railway Investment Group Co., Ltd.; from September 2016 to January 2017, he served as the director of the Investment Department of Hunan Basic Industrial Development Co., Ltd.; from January 2017 to 2017 In April 2018, he served as the chairman of the labor union of Changshaolou Expressway Co., Ltd.; from May 2017 to June 2018, he served as the head of the comprehensive management department of Nanhua Minsheng Investment Management Co., Ltd.; from July 2018 to April 2020, he served as the head of the comprehensive management department of Hunan Caixin Industry Fund Management Co., Ltd.; from May 2020 to February 2022, he served as the head of the fourth business department of Hunan Caixin Industry Fund Management Co., Ltd. Responsible person; former director of Chengguang (Hunan) Energy Saving and Environmental Protection Services Co., Ltd.; currently secretary of the company's board of directors and deputy general manager, concurrently serving as director of Hunan Nanhua Biotechnology Co., Ltd., director of Nanhua Stem Cell Regenerative Medicine Clinical Translation Research Center Co., Ltd., director of Hunan Aishiweimin Biotechnology Co., Ltd., supervisor of Hunan Nanhua Energy Saving and Environmental Protection Technology Co., Ltd., and supervisor of Nanhua Yuanfang (Hunan) Environmental Protection Technology Co., Ltd.
Mr. Lin Pengbin, deputy general manager and financial controller, born in October 1973, bachelor's degree in economics, accountant. From October 1998 to June 2014, he worked successively in Hunan Securities (later renamed Taiyang Securities) and Founder Securities, serving as sales department employee, specialist, financial supervisor, marketing director, assistant to the general manager, senior manager of the company headquarters department, and department director; from July 2014 to January 2015, he served as deputy manager of the financial department, deputy office director, and employee supervisor of Hunan Saidi Media Investment Co., Ltd.; since January 2015, he has served as The company’s financial controller; he once served as director of Nanhua Heping Hospital Management (Hunan) Co., Ltd., supervisor and chairman of the board of supervisors of Chengguang (Hunan) Energy Saving and Environmental Protection Services Co., Ltd.; currently serves as deputy general manager and financial controller of the company, and concurrently serves as supervisor of Hunan Nanhua Biotechnology Co., Ltd., director of Hunan Nanhua Energy Saving and Environmental Protection Technology Co., Ltd., director of Nanhua Yuanfang (Hunan) Environmental Protection Technology Co., Ltd., and supervisor of Nanhua Biohan (Hunan) Biotechnology Co., Ltd.
Mr. Liu Ailong, male, born in December 1978, member of the Communist Party of China, economist, master's degree student in management. From July 2001 to October 2021, he served as an employee of the Computer Information Department of Shenzhen Kuaishou Express Co., Ltd.; an employee of Chenjiang Town Economic and Technological Development Center, Beihu District, Chenzhou City; Chenzhou Assistant to the general manager of Chenjiang Town Economic Development Corporation in Beihu District; deputy general manager of Chenzhou Shenhua Property Management Co., Ltd.; general manager of Chenjiang Town Economic and Technological Development Center in Beihu District, Chenzhou City; general manager of Chenjiang Jiajia Property Management Company in Chenzhou City; Secretary of the Youth League Committee, Director of the Inspection Office, and Director of the Investment Promotion Office of Chenjiang Town, Beihu District of Chenzhou City; Chen Member of the Party Committee and deputy township head of Yuefeng Yao Township, Beihu District, Chenzhou City; deputy director of the Urban Construction Investment Service Center of Beihu District, Chenzhou City, deputy general manager of the Beihu District Transportation Construction Investment Company; deputy general manager (in charge) of the Social Insurance Department of the Hunan Branch of the People's Health Insurance Company of China (in charge), and interim head of the Chenzhou Central Branch; China He is the market development manager of the Accident and Health Insurance Department of the Hunan Branch of the People's Insurance Company of China, assistant to the general manager and deputy general manager of the Important Account Department; the general manager of the Auto Finance Business Department of the Hunan Branch of the People's Insurance Company of China; a member of the Party Committee and deputy general manager of the Zhuzhou Branch of the People's Insurance Company of China. From January 2017 to May 2019, he served as a member of the Standing Committee of the Longhui County Committee of the Communist Party of China and deputy county magistrate of the Longhui County People's Government; from October 2021 to March 2022, he served as a member of the Party Committee and deputy general manager of the Changsha Health and Medical Insurance Service Center of the Hunan Branch of the People's Insurance Company of China. Currently, he is the deputy general manager of the company and concurrently serves as Hunan Nanhua Biotechnology Co., Ltd.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Co., Ltd.'s legal representative, chairman and general manager, and concurrently serves as the legal representative, chairman and general manager of Hunan Aishiweimin Biotechnology Co., Ltd., and concurrently serves as Hunan Boaikan

Legal representative and chairman of Minstem Cell Tissue Engineering Co., Ltd., concurrently serving as legal representative and chairman of Nanhua Biouhan (Hunan) Biotechnology Co., Ltd., concurrently

Served as the legal representative, chairman and general manager of Nanhua Stem Cell Regenerative Medicine Clinical Translation Research Center Co., Ltd.

The situation where the controlling shareholder and actual controller simultaneously serve as the chairman and general manager of a listed company

□Applicable ☑Not applicable

Employment status in shareholder units

☑Applicable □Not applicable

Served in a shareholder company Name of person who holds a position in a shareholder company Name of shareholder company Term start date Term end date

Position Receive remuneration allowance Hunan Province Finance and Information Industry

March 13, 2025

Chen Qun, Deputy General Manager of Fund Management Co., Ltd. Today

Division

President of the Administrative Management Department of Chongqing International Trust March 1, 2025

Jiang Yuan, Assistant of Shifen Co., Ltd.

Hunan Caixin Industrial Fund Management Co., Ltd. is the company’s controlling shareholder, and Hunan Caixin Financial Holding Group Co., Ltd. is the company’s indirect controlling shareholder.

Description of the situation Shareholders. Chongqing International Trust Co., Ltd. is a shareholder holding more than 10% of the company's shares.

Employment status in other units

☑Applicable □Not applicable

Served in other units Name of person who holds office in other units Name of other unit Term start date Term end date

Position Receive remuneration allowance

Loudi Jinhong New Materials Legal Representative, Director September 23, 2025

Yang Yunfou Co., Ltd. Chairman Day

Hunan Airport Logistics Stocks August 28, 2025

Chen Qun Director Foufen Co., Ltd. Day

Hunan Pharmaceutical Group has October 31, 2025

Chen Qun Director No limited company Date

Hunan Airport Industrial Stocks October 17, 2025

Chen Qun Director Foufen Co., Ltd. Day

Shaoshan Huxiang Tourism Opens November 14, 2025

Chen Qun Director Foufa Co., Ltd. Day

Executive Partner, Shanghai Xinji Investment December 12, 2025

Chen Qun Fu Xin (Limited Partnership) Appointed Representative Date

Hunan Caixin Jingruishu

Zi Industrial Equity Investment Executive Partner February 10, 2026

Chen Qun No Partnership (Limited Appointed Representative Date

partnership)

Hunan Valin Cable Stock September 22, 2025 September 21, 2028

She Liwen Independent Director Shifen Co., Ltd. Day Day

Beijing Deheng (Chairman) Senior Partner, Deputy May 1, 2007

Lin Feng, director and lawyer of Shisha Law Firm, Japan

Ningxia Zhongyin Cashmere Industry Stock April 26, 2022 March 11, 2027

Zhu Limei Independent Director Shifen Co., Ltd. Day Day

Nanhua Stem Cell Regeneration

Medical Clinical Translational Research April 16, 2024

Chen Yi Supervisor Whether the center has limited liability Day

company

Nam Hwa Philanthropy Kang Mingan

October 24, 2024

Chen Yi Cell Tissue Engineering Yes Supervisor No Day

limited liability company

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Hunan Nanhua Biotechnology February 07, 2023 Chen Yi Supervisor Fushu Co., Ltd. Day

Nanhua loves the world for people's livelihood September 26, 2023 Chen Yi Supervisor Fuwu Technology Co., Ltd. Day

Nanhua Stem Cell Regeneration

Medical Clinical Translational Research April 16, 2024 Su Liang Director Fou Research Center Limited Liability Date

company

Hunan Nanhua Energy Saving and Environmental Protection July 23, 2024 Su Liang Supervisor Fubao Technology Co., Ltd. Day

Nanhuayuanfang (Lake

July 30, 2024 Su Liang Nan) Environmental Protection Technology Supervisor No Day

Ltd.

Hunan Nanhua Biotechnology February 07, 2023 Su Liang Director Fushu Co., Ltd. Day

Nanhua Loves the World for People's Livelihood July 15, 2025 Su Liang Director Fuwu Technology Co., Ltd. Day

Hunan Nanhua Energy Saving and Environmental Protection July 23, 2024 Lin Pengbin Director Fubao Technology Co., Ltd. Day

Nanhuayuanfang (Lake

July 30, 2024 Lin Pengbin South) Environmental Protection Technology Director No Day

Ltd.

Nanhua Biouhan (Lake

September 29, 2024 Lin Pengbin South) Biotechnology Yes Supervisor No Day

Ltd.

Hunan Nanhua Biotechnology February 07, 2023 Lin Pengbin Supervisor Fushu Co., Ltd. Day

Nanhua Stem Cell Regeneration

Legal representative, director

Medical Clinical Translational Research September 12, 2025 Liu Ailong Director, Chairman, General Manager No Research Center Co., Ltd. Date

manager

company

Hunan Boai Kangmingan

October 24, 2024 Liu Ailong Cell Tissue Engineering Yes Director No Day

limited liability company

Hunan Boai Kangmingan

Legal representative, director July 4, 2025 Liu Ailong Cell Tissue Engineering Yes No Chairman Day

limited liability company

Nanhua Biouhan (Lake

Legal representative, director September 29, 2024 Liu Ailong South) Biotechnology Yes Chairman, director Date

Ltd.

Hunan Nanhua Biotechnology February 07, 2023 Liu Ailong Director and General Manager Fushu Co., Ltd.

Legal representative and director of Hunan Nanhua Biotechnology July 10, 2025 Liu Ailong Chairman of Fushu Co., Ltd. Day

Hunan loves the world for people's livelihood September 26, 2023 Liu Ailong Director Fuwu Technology Co., Ltd. Day

Hunan Aishiwei People's Livelihood Legal Representative, Director July 15, 2025 Liu Ailong Chairman of Fuwu Technology Co., Ltd. Day

Hunan Aishi for people's livelihood January 26, 2026 Liu Ailong General Manager No

Physics Technology Co., Ltd.

Penalties imposed by the securities regulatory authorities in the past three years on current and former directors and senior managers of the company during the reporting period

□Applicable ☑Not applicable

Remuneration of directors and senior managers

Decision-making procedures, basis for determination, and actual payment status of remuneration of directors and senior managers

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The decision-making procedure and basis for determining the remuneration of directors, supervisors, and senior managers: The company’s management and the remuneration and appraisal committee of the board of directors shall evaluate the remuneration based on their positions and performance.

The salary will be determined accordingly.

Actual payment of remuneration to directors, supervisors, and senior managers: Directors, supervisors, and senior managers (including current and former employees) received from the company for the current year

The total remuneration (including basic salary, bonuses, allowances, subsidies, employee welfare fees, etc.) is 3.6999 million yuan.

Remuneration situation of directors and senior managers of the company during the reporting period

Unit: 10,000 yuan

Obtained from the company. Whether you are in the company or not is related to your name, gender, age, position, and employment status.

Total pre-tax remuneration Joint parties receive remuneration

director, director

Yang Yun Male 46 Current 56.69 No

Chief, General Manager

She Liwen Female 56 Independent Director Incumbent 9.6 No Lin Feng Male 45 Independent Director Incumbent 9.6 No Zhu Limei Female 52 Independent Director Incumbent 3.86 No Jiang Yuan Female 38 Non-Independent Director Incumbent 0 No Chen Yi Female 42 Employee Representative Director Incumbent 18.44 No

Secretary of the Board of Directors,

Su Liang Male 46 Current 43.67 No Deputy General Manager

Financial person in charge,

Lin Pengbin Male 52 Current 52.46 No

deputy general manager

Liu Ailong Male 47 Deputy General Manager Current 55.9 No Chen Wenbo Male 43 Non-independent Director Resigned 3.69 No Zhao Yaqing Male 57 Independent Director Resigned 5.75 No Shen Chen Male 38 Supervisor Resigned 5.75 No Yanfeng Male 44 Employee Representative Supervisor Resigned 16.21 No You Changqiao Male 53 Director and general manager resigned 42.97 No Chen Yong Male 54 Deputy general manager resigned 45.4 No Total -- -- -- -- 369.99 --

Based on the remuneration management system, the assessment basis for the actual remuneration received by all directors and senior managers at the end of the reporting period is combined with job responsibilities and objectives, performance performance, and industry remuneration.

Comprehensive review of the performance of directors and senior management personnel based on factors such as remuneration levels

Combined assessment.

At the end of the reporting period, the assessment of the actual remuneration received by all directors and senior managers was completed.

Complete the annual assessment after the annual report is disclosed.

situation

Deferred expenses of remuneration actually received by all directors and senior management at the end of the reporting period

Directors and senior management have deferred payment arrangements

payment arrangement

At the end of the reporting period, all directors and senior management personnel actually received remuneration stop payment claims. During the reporting period, no director or senior management personnel triggered a remuneration stop payment claim.

Other information

□Applicable ☑Not applicable

5. Directors’ performance of duties during the reporting period

Directors’ attendance at board of directors and shareholders’ meetings

Directors’ attendance at board of directors and shareholders’ meetings

During this reporting period, directors should be present in person. Directors should be present by communication. Directors should be absent from the board of directors. Is the name of the director attending the shareholders' meeting for two consecutive days?

Number of board meetings attended Number of board meetings attended Number of times Not attended in person

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Number of times Number of board meetings

discuss

Yang Yun 12 0 12 0 0 No 5Chen Qun 7 0 7 0 0 No 2Jiang Yuan 0 0 0 0 0 No 0She Liwen 12 0 12 0 0 No 5Lin Feng 12 0 12 0 0 No 5Chen Yi 7 0 7 0 0 No 2Chen Wenbo 6 0 6 0 0 No 2 Cao Haiyi 5 0 5 0 0 No 3 Chen Yuan 5 0 5 0 0 No 3 You Changqiao 5 0 5 0 0 No 3 Zhao Yaqing 5 0 5 0 0 No 3 Explanation for not attending the board of directors in person for two consecutive times

Not applicable.

Directors raise objections to company-related matters

Whether directors raise objections to company-related matters

□Yes ☑No

During the reporting period, the directors raised no objections to relevant matters of the company.

Other instructions on directors’ performance of duties

Whether the directors’ recommendations to the company have been adopted

☑Yes □No

Director’s explanation on whether the company’s relevant suggestions were adopted or not adopted

During the reporting period, the company’s directors adhered to integrity, diligence and responsibilities, and strictly complied with the Company Law, Securities Law, Listing Rules and other laws and regulations as well as the Articles of Association.

The "Rules of Procedure for the Board of Directors" and other internal systems perform duties in accordance with the law, actively pay attention to the company's production operations and financial status, carefully review relevant reports, and continuously monitor company information.

The authenticity, accuracy, completeness, timeliness and fairness of the disclosure shall be ensured to ensure compliance with the information disclosure standards. The company’s independent directors perform their duties independently and express opinions independently.

Focus on the legitimate rights and interests of small and medium-sized shareholders, and effectively play the role of independent judgment and supervision. All directors, based on the actual conditions of the company, are responsible for improving corporate governance, optimizing business decisions,

Provide professional opinions and rational suggestions to improve the level of standardized operations, promote the effective implementation of various resolutions of the board of directors, ensure that the company's decision-making is scientific and standardized, and effectively safeguard the company

and the legitimate rights and interests of all shareholders, especially small and medium shareholders.

6. The situation of the special committees under the board of directors during the reporting period

Objections

Number of meetings held Important other duties to be performed

Committee name, members, date of convening, content of the meeting, overall situation (such as number, opinions and suggestions, responsibilities)

Yes) 1. "About using

Use idle to own

The 11th Board of Directors Fund Development Committee

She Liwen, Yang 2025 02

The Audit Committee of the Board of Directors 4 entrusted the discussion of financial management // /

Yun, Zhao Yaqing January 05

Committee Case"; 2.

"About the relationship

transaction expected

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

"Proposal"; 3. "Proposal on the proposed cancellation of the raised capital account"

"Proposal on the 2024 Annual Financial Report"; 2. "On the 2024 Annual Financial Report";

"Proposal on the 2024 Internal Audit Work Summary and the 2025 Audit Work Plan"; 3. "About

"Proposal on the Internal Audit Work Report for the First Quarter of 2025 and the Work Plan for the Second Quarter of 2025"; 4. "Proposal on the "Financial Final Account Report for 2024"; 5. 2025 04

"About // /Month 28th

"Proposal on the Profit Distribution Plan for 2024"; 6. "Proposal on Uncovered Losses Reaching One-third of Total Paid-in Share Capital"; 7. "Proposal on "2024 Internal Control Self-Evaluation Report"; 8. "Proposal on Provision for Credit Impairment, Asset Impairment Provision and Write-off of Certain Assets in 2024"; 9. "Proposal on the Storage and Use of Raised Funds in 2024"

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

"Proposal on the special report on the situation"; 10. "On

"Proposal for the First Quarter Financial Report of 2025".

"About Authorizing Management Level Listing 2025 06

Sale of Subsidiary ///18th of March

Equity Bill.

"About the revision of the company's charter in 2025 07

/ / / March 21st "Proposal".

"Discussions on the Review of Qualifications of Non-Independent Director Candidates for the Company's Twelfth Board of Directors and the Eleventh Board of Directors" Lin Feng and You Chang July 2025

Nomination Committee 1 Case"; 2 / / / Qiao, She Liwen, November 21

Committee's "Proposal on the Review of the Qualifications of Independent Director Candidates for the 12th Board of Directors of the Company". "About the annual remuneration of directors and senior managers for the 11th session of directors in 2024 to Zhao Yaqing and Cao 2025 04

Board of Directors salary and 1 release plan merged // /Hai Yi, Lin Feng January 28

Proposal to be reviewed by the Assessment Committee to the 2024 Annual Report.

"About 2025 05 Company Organizational Structure

/ / / /Month 26th Discussion on Adjustment> Yang Yun and Cao Hai

Case of the Eleventh Session of the Board of Directors.

Yi, Chen Yuan,

Strategy Committee 2 "About Authorizing You Changqiao and Zhao

Committee Management Level Listed Yaqing 2025 06

Sale of Subsidiary ///18th of March

Equity Bill.

"About the Election of the Twelfth Board of Directors and Audit Committee Directors of the Twelfth Board of Directors She Liwen and Chen 2025 08

6 members of the Audit Committee of the Board of Directors (convened // /group, Zhu Limei on August 8

Member)'s motion";

"About the Appointment of Vice President of the Company"

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Proposal of the Manager and Chief Financial Officer"; 3. "Proposal on Amending the "Working Rules of the Audit Committee".

"Proposal on the Company's 2025 Semi-annual Financial Report"; 2. "On the Company's 2025 Second Quarter Internal Audit Report 2025 08 and 2025

/ / / Proposal on the work plan for the third quarter of 2025 on January 27; 3. Proposal on the company's "Special Report on the Storage and Use of Funds Raised in the Half-Year 2025". "About the company's plan to acquire Lou in cash in 2025 09 Dijin Hong New Materials

/ / /On January 5th, the Proposal on the Equity and Capital Increase of the Co., Ltd.".

"Proposal on the Company's 2025 Third Quarter Report"; 2. "On the Company's October 2025 Report"

〈2025///24th

Proposal for the third quarter internal audit work report and the fourth quarter work plan for 2025. 1. "Proposal on Hiring an Audit Institution for 2025"; November 2025

"About ////May 28th

Banks and other financial institutions or non-financial institutions apply for comprehensive credit lines

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Degree of discussion

Case".

"Proposal on the Selection and Recruitment System of Accounting Firms"; 2. "Proposal on the Resignation System for Directors and Senior Management Personnel" December 2025

Case》; 3.///Month 30

"Proposal on the Commodity Futures Trading Management System"; 4. "Proposal on Carrying out Commodity Futures Hedging Business". 1. "Proposal on the Election of the Chairman (Convener) of the Nomination Committee of the Twelfth Board of Directors";

12th Board of Directors 2. "About the Appointment of Lin Feng and She Li 2025 08

Nomination Committee of the Board of Directors 1 General Manager of the Company // / Wen, Chen Wenbo January 8

committee meeting

case";

"Proposal on the Appointment of the Company's Deputy General Manager, Secretary of the Board of Directors and Chief Financial Officer". 1. "About the Election of the Chairman of the Remuneration and Appraisal Committee of the Twelfth Board of Directors of the Twelfth Board of Directors"

Zhu Limei, Chen 2025 08 (Convenor) Board of Directors Salary and 1 / / / Qun, Lin Feng 08 Proposal"; Assessment Committee

"Proposal on Formulating the Remuneration Plan for the Company's Senior Management Personnel".

"About the Election of the Twelfth Dong Yangyun and Chen

Strategy Committee Qun of the 12th Board of Directors, Chen Wen August 2025

Committee Strategy Committee 1 Committee Chairman // /Bo, Zhu Li January 8

Members (called Mei, Chen Yi

person)'s motion"

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

7. Work of the Audit Committee

The audit committee discovered whether there are risks in the company during its supervision activities during the reporting period

□Yes ☑No

The Audit Committee has no objection to the supervision matters during the reporting period.

8. Company employees

Number of employees, professional composition and education level

Number of active employees of the parent company at the end of the reporting period (person) 17 Number of active employees of major subsidiaries at the end of the reporting period (person) 299 Total number of active employees at the end of the reporting period (person) 316 Total number of employees receiving salaries during the current period (person) 505 Number of retired employees of the parent company and major subsidiaries who need to bear expenses (person) 0 Professional composition

Major composition category Major composition number (people)

Production staff 83 sales staff 125 technical staff 28 financial staff 22 administrative staff 58 total 316 education level

Education level category Number (person)

Doctorate 4 Master 23 Undergraduate 81 College 83 College or below 125 Total 316

Remuneration policy

Employee remuneration consists of rank remuneration, position remuneration, and income sharing. The remuneration structure is unified as follows:

Annual full salary = rank salary + position salary + income sharing

Annual fixed salary = rank salary + position salary. The sum of rank salary and position salary is the fixed salary part of the annual target salary, which is paid on a monthly basis.

The company determines the rank salary and position salary based on the employee's rank and position. Rank salary reflects the salary benefits corresponding to employees at different ranks, using a unified

A rank salary table; job salary reflects the remuneration received for completing job responsibilities and reflects the difference in employee job competency.

Training plan

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

According to different training organization methods, company training plans are divided into: internal training, expatriate training, online training and other training. 1. Internal training: The company organizes or invites external training institutions to tailor training courses for the company, so that company members receive professional and systematic training, including corporate culture, company organizational structure and rules and regulations, industry status and prospects, etc.;

Expatriate training: Combining the needs of the company's business development and the demand for job skills, the company organizes personnel in specific positions to go out to participate in training at training institutions, including financial and securities series training, human resources management training, enterprise management series training, etc.;
Online training: Organize employees to conduct online training through Internet technology, and select specific training content for personnel in different positions to maximize resource utilization and information transfer;
Other training: The company can formulate other diversified training plans based on the operation situation and employee development situation.
Labor outsourcing situation

□Applicable ☑Not applicable

9. Company profit distribution and conversion of capital reserve funds into share capital

The formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies, during the reporting period

□Applicable ☑Not applicable

The company made profits during the reporting period and the parent company’s profits available for distribution to shareholders were positive but no cash dividend distribution plan was proposed

□Applicable ☑Not applicable

Profit distribution and capitalization of capital reserve during the reporting period

□Applicable ☑Not applicable

The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital during the year.

Implementation of the company’s equity incentive plan, employee stock ownership plan or other employee incentive measures □Applicable ☑Not applicable

The company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and their implementation during the reporting period.

11. Construction and implementation of internal control system during the reporting period

Construction and implementation of internal control

During the reporting period, the company strictly complied with the requirements of the Company Law, Securities Law and other laws and regulations, as well as the Articles of Association and relevant normative documents, and formulated and revised the Articles of Association, the Working Rules of the Audit Committee, the Independent Director Working System, the Accounting Firm Selection System, the Audit Committee Working Rules and other systems, and continued to improve the internal control system, improve the corporate governance structure, and protect the interests of all shareholders.

During the reporting period, the company achieved effective internal control in both financial and non-financial aspects, and there were no major flaws or important flaws in internal control.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Details of major deficiencies in internal control discovered during the reporting period

□Yes ☑No

The company’s management and control of subsidiaries during the reporting period

Problems encountered during integration Company name of solutions taken Integration plan Integration progress Resolution progress Follow-up solution plan

Question Measures In September 2025, the company completed the delivery of the company's equity and related assets. Three directors were appointed by the company and two directors were appointed (one of whom served as the company's director in 2025

Chairman), Loudi Jinhong New Materials completed the project in September

The financial director assigned to the company is none. none. none. none. Materials Co., Ltd. acquires controlling stake in the company

Supervise and supervise a deputy general purchaser

Manager and assets are all controlled by the company. Since then, the company has completed a comprehensive integration of the company's assets, personnel, finance, organization, and business.

In September 2025, the company completed the delivery of the company's equity and related assets. Three directors and two directors were assigned by the company.

Lengshuijiang Jinda Road dispatched the financial director to complete the project in September this year

Environmental Protection Technology Co., Ltd. and one deputy general manager None. none. none. none. Acquisition of controlling stake in the company

The company is managed and the assets are purchased from

Since then, the company has completed the comprehensive integration of the company's assets, personnel, finance, organization and business.

In February 2026, the company completed the company's industrial and commercial registration procedures, and the three directors were dispatched by the company to Jinda Road, Loudi.

The company was established in January 2026 with 2 directors (its supply chain management services are nil. nil. nil. nil. One of the directors serves as a limited company)

serves as chairman), the company has a financial director, and the assets are all controlled by the company. Since then, the company has completed the full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd.

about the company in

assets, personnel,

finance, organization,

Comprehensive business

Integrate.

Abnormalities in management control of subsidiaries

□Yes ☑No

13. Internal control evaluation report or internal control audit report

Internal control evaluation report

Date of disclosure of the full text of the internal control evaluation report: April 29, 2026

For details, please refer to the full text disclosure index of the "Nanhua Biological 2025 Internal Control Evaluation Report" disclosed by the company on cninfo.com on April 29, 2026.

Annual Internal Control Self-Evaluation Report.

The total assets of the units included in the evaluation scope account for the total assets of the company

100.00% and the proportion of total assets in the financial statements

The operating income of the units included in the evaluation scope accounts for the company's total

100.00% and the proportion of operating income in financial statements

Defect identification standards

Category Financial Reporting Non-Financial Reporting

A. Major defects: If an internal control defect

There is a reasonable possibility that the defect, alone or in combination with other defects

Resulting in the inability to promptly prevent, detect and correct financial

Material misstatements in the statements, such as: company directors and

Fraud by senior managers; CPA

discovered by the company’s supervisor but not identified by the company’s internal controls

The identification of non-financial reporting deficiencies mainly focuses on material misstatements in the company's current financial report; the Audit Committee

The degree of impact on the effectiveness of the financial process, the occurrence of errors and the audit department’s impact on the company’s external financial reports

Judgment of capability. If there is a likelihood that deficiencies will occur, reporting and oversight of internal control over financial reporting will be ineffective. B.

If it is small, it will reduce work efficiency or effectiveness, or increase important defects: if an internal control defect is reported

There is a reasonable possibility of uncertainty in the effect, deviation from expectations alone or together with other defects.

The target is general deficiencies; if the occurrence of deficiencies may cause the financial statements to be unable to be prevented, discovered and corrected in a timely manner,

Qualitative standard: The performance is high and will significantly reduce work efficiency or the performance table does not reach or exceed the importance level,

results, or significantly increase the uncertainty of the effect, or errors that should still attract the attention of the board of directors and management

Significant deviation from the expected target is an important flaw; reporting, such as: accounting for irregular or special transactions

If the possibility of defects is high, the service will be seriously degraded and no corresponding control mechanism will be established or no corresponding control mechanism will be established.

Low work efficiency or effect, or serious increase in effect is implemented without corresponding compensatory control;

The existence of uncertainties, or the existence of controls in the preparation process of the period-end financial report that may cause it to deviate significantly from the expected purpose

Marked as a major defect.

One or more deficiencies and preparation cannot be reasonably guaranteed

financial statements to achieve true and complete goals.

C. General defects: General defects refer to those other than the above-mentioned major defects.

Other control deficiencies other than major defects and important defects

Defects do not constitute major deficiencies and important financial statements.

Report internal control deficiencies and identify them as general deficiencies.

General defects: (1) Operating income: misstatement 1. General defects: (1) Operating income: misstatement <0.5% of total operating income; (2) Assets <0.5% of total operating income; (2) Total assets: misstatement <0.5% of total assets. 2. Total amount: misstatement <0.5% of total assets. 2. Important defects: (1) Operating income: Operating income Important defects: (1) Operating income: Quantitative standard of operating income 0.5% of the total amount ≤ misstatement < 0.5% of the total amount ≤ misstatement < 1% of the total operating income; (2) Total assets: 1% of the total assets; (2) Total assets: 0.5% of the total assets ≤ misstatement < 1% of the total assets. 3. Misstatement 0.5% ≤ misstatement < 1% of total assets. 3. Major defects: (1) Operating income: total operating income Major defects: (1) Operating income: 1% of total operating income ≤ misstatement; (2) Total assets: 1% of capital ≤ misstatement; (2) Total assets: capital

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

1% of total output is misstated. 1% of total output ≤ misstatement.

Number of major flaws in financial reports (number) 0 Number of major flaws in non-financial reports (number) 0 Number of major flaws in financial reports (number) 0 Number of major flaws in non-financial reports (number) 0

Internal control audit report

☑Applicable □Not applicable

Review opinion paragraph in internal control audit report

Nanhua Biological Company maintained effective internal control over financial reporting in all material aspects in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations on December 31, 2025.

Disclosure of internal control audit report Disclosure

Date of disclosure of the full text of the internal control audit report: April 29, 2026

Internal control audit report full text disclosure index cninfo.com http://www.cninfo.com.cn

Type of opinion on internal control audit report Standard unqualified opinion

Are there any major deficiencies in the non-financial report? No

Whether the accounting firm issues an internal control audit report with non-standard opinions

□Yes ☑No

Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of directors

☑Yes □No

Whether a non-standard audit opinion on internal control was issued during the reporting period or the previous year

□Yes ☑No

14. Rectification of self-examination issues in the special action on governance of listed companies

Not applicable.

15. Disclosure of environmental information

Whether listed companies and their major subsidiaries are included in the list of companies that disclose environmental information in accordance with the law

☑Yes □No

Number of companies included in the list of companies that disclose environmental information according to law 2 Serial number Company name Query index for environmental information disclosure reports according to law National Emission License Management Information Platform - Year 1 Loudi Jinhong New Materials Co., Ltd.

executive report

National Pollutant Discharge Permit Management Information Platform-Annual 2 Lengshuijiang Jindalu Environmental Protection Technology Co., Ltd.

executive report

16. Social Responsibility

Not applicable.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The situation of consolidating and expanding the results of poverty alleviation and rural revitalization does not apply.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Section 5 Important Matters

1. Fulfillment of commitments

Commitments made by the company’s actual controller, shareholders, related parties, acquirers, the company and other relevant parties that have been fulfilled during the reporting period and have not yet been fulfilled by the end of the reporting period

☑Applicable □Not applicable

Reason for commitment Commitment party Commitment type Commitment content Commitment time Commitment period Performance status

Commitment to independence:

(1) After the completion of this transaction, the promisee will continue to maintain the independence of Nanhua Biotech and ensure that Nanhua Biotech’s personnel are independent, its assets are independent and complete, its business is independent, its finances are independent, and its organization is independent. 1. Ensure that Nanhua Biotech’s personnel are independent; ensure that Nanhua Biotech’s general manager, deputy general manager, financial director, board secretary and other senior management personnel are not involved in the Acquisition Report or Hunan Provincial Financial Information Industry

Nuo Ren and this Commitment Equity Change Report for October 2019 Industrial Fund Management has other commitments that are valid for a long time. In progress. Others controlled by others Commitments made in the letter on the 28th Co., Ltd.

Hold other positions in the enterprise other than directors and supervisors; ensure that Nanhua Biotech's labor, personnel, and salary management systems are completely independent of the promisee and other companies controlled by the promisee;

Guarantee that the assets of Nanhua Biotech are independent and complete; ensure that the assets of Nanhua Biotech are independent of the promisee and other enterprises controlled by the promisee, and ensure the complete ownership of the assets owned by Nanhua Biotech; the guarantee will not be based on

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Illegal occupation of Nanhua Biotech’s funds, assets and other resources in any way;

Ensure the business independence of Nanhua Biotech; ensure that Nanhua Biotech has an independent and complete business management system and the ability to operate independently in the market; ensure that Nanhua Biotech is independent from the promisee and other enterprises controlled by the promisee in terms of procurement, production, sales, and intellectual property rights.
Ensure the financial independence of Nanhua Biotech; ensure that Nanhua Biotech has an independent financial department and an independent accounting system in accordance with the requirements of relevant accounting systems, and make financial decisions independently; ensure that Nanhua Biotech independently opens bank accounts and settles income and expenditure, and independently declares taxes and performs tax obligations in accordance with the law; ensure that Nanhua Biotech's financial personnel are independent of the promisee and other companies controlled by the promisee; 5. Ensure the institutional independence of Nanhua Biotech; in accordance with relevant laws, regulations and its articles of association, ensure that Nanhua Biotech has an independent and complete legal person governance structure and internal operating and management institutions, and ensure that these institutions independently exercise their respective powers; ensure that Nanhua Biotech and this promisee and this pledger

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

There is no mixed operation or joint office operation in other controlled enterprises;

Commitment on horizontal competition: The specific content is as follows: 1. As of the date of issuance of this commitment letter, the Company does not control any company, enterprise or other operating entity that has the same or similar business as Nanhua Biotech, nor does it operate or operate for others the same or similar products or business as Nanhua Biotech; there is no horizontal competition between the Company and Nanhua Biotech.
The company guarantees that from the date of issuance of this commitment letter, the company and other companies controlled by the company will not engage in any form of business that is the same or similar to the main business of Nanhua Biotechnology and constitutes competition. 3. The company promises not to use Nanhua Biotech’s position as the controlling shareholder to harm Nanhua Biotech and other shareholders of Nanhua Biotech.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Legitimate interests.

If Nanhua Biotech expands its business scope in the future, resulting in the products or businesses operated by the company and other controlled enterprises being the same or similar to Nanhua Biotech's products or businesses, the company will stop operating relevant competitive businesses or transfer the competing business to Nanhua Biotech or other unrelated third parties at a fair and equitable market price without affecting the interests of Nanhua Biotech. 5. If the company and other controlled companies violate the above commitments and cause actual losses to Nanhua Biotech, the company will bear and compensate for all direct or indirect economic losses caused to Nanhua Biotech. The above statements and commitments will continue to be valid while Nanhua Biotech legally and effectively exists and the promisee is the controlling shareholder of Nanhua Biotech.
Commitments regarding related-party transactions:
The company and other companies controlled by the company will try to avoid related transactions with Nanhua Biotech in the future. For related-party transactions that are unavoidable or necessary, we will ensure that they are conducted fairly in accordance with market principles and fair prices, and in accordance with relevant laws, regulations, rules and other norms.

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Fulfill related transaction procedures and information disclosure obligations in accordance with the provisions of the documents. The company will proactively fulfill its avoidance obligations when Nanhua Biotechnical Authority examines relevant related-party transactions. For related-party transactions that need to be reported to the competent authority for review, it can only be implemented after being reviewed and approved by the competent authority. It guarantees that it will not damage the legitimate rights and interests of Nanhua Biotech and other shareholders through related-party transactions.

The company promises not to take advantage of Nanhua Biotech’s shareholder status to harm the legitimate interests of Nanhua Biotech and other shareholders. 3. The Company and other enterprises invested or controlled by the Company will put an end to any illegal occupation of Nanhua Biotech’s funds and assets. Under any circumstances, Nanhua Biotech is not required to provide any form of guarantee or provide any form of financial support to the Company and other enterprises controlled by the Company. If the company and other companies controlled by the company violate the above commitments and cause actual losses to Nanhua Biotechnology, the company will bear and compensate for all direct or indirect economic losses caused to Nanhua Biotechnology. The above statements and commitments will continue while Nanhua Biotech legally and effectively exists and the promisee is the controlling shareholder of Nanhua Biotech.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Valid.

Hunan SDIC and the companies or other organizations it controls are not currently engaged in production or operations that have horizontal competition or potential horizontal competition with the main business of CCID Media and its controlled subsidiaries; Hunan SDIC, while serving as the controlling shareholder of CCID Media, is not engaged in the main business of CCID Media and its controlled subsidiaries with Hunan Caixin Finance

About horizontal competition Horizontal competition or potential Holding Group Co., Ltd.

Competing and related parties are related to competition in the same industry. In July 2010, the company; Hunan Province is valid for a long time. In progress. Transaction, capital occupation, production and economic system 06th state-owned investment and operation

Commitments in respect of operations; such as in the above limited companies

During this period, if the business opportunities obtained by Hunan SDIC and its controlled companies or other operating organizations are in or may be subject to horizontal competition with the main business of CCID Media, CCDI Media will be notified immediately and efforts will be made to provide the business opportunities to CCID Media to ensure that CCID Media and other shareholders of CCID Media are not harmed. As Nanhua Biotech issues A shares to specific targets (hereinafter referred to as the “Issuance

"Bank") subscribers, in accordance with relevant laws, regulations, initial public offerings, Hunan Provincial Finance and Information Industry Department Regulations and China

January 2024 July 9, 2025 or when refinancing, other commitments made by the industry fund management will be completed.

On the 10th, the Management Committee of Nisaku Commitment Co., Ltd. (hereinafter referred to as the "China Securities Regulatory Commission") and the relevant regulations of the Shenzhen Stock Exchange solemnly stated that the shares subscribed for this issuance will be voluntarily locked and the shares will not be reduced.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The commitments are as follows: 1. The company did not reduce its holdings of Nanhua Biotech stocks six months before the pricing base date of this issuance; 2. The company did not reduce its holdings of Nanhua Biotech stocks from the pricing base date of this issuance to six months after the completion of this issuance (including stocks resulting from equity distributions such as bonus shares and transfer of reserve funds to share capital during the commitment period). ) plan; 3. The shares subscribed by the company for this issuance will not be transferred within 18 months from the date of listing, and will be reduced in strict accordance with the Securities Law, the Measures for the Administration of Acquisitions of Listed Companies and other laws and regulations as well as the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange and perform the information disclosure obligations related to changes in equity;

If the Securities Law, Company Law, China Securities Regulatory Commission and Shenzhen Stock Exchange have other requirements for the transfer of shares of Nanhua Biotech subscribed by the company in this issuance, the company will implement the relevant requirements. If the company or other shareholders suffer losses due to the company's violation of the commitments under this commitment letter, the company is willing to bear the corresponding liability for compensation in accordance with the law.

About the controlling shareholder of Hunan Provincial Financial Industry

In March 2023, the industry fund management has other commitments to maintain the issuer's qualifications and be effective in the long term. Normal performance.

21st Co., Ltd. assets, personnel, finance

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Commitment to independence of affairs, organization and business: Nanhua Biotech plans to issue shares to specific objects. As the controlling shareholder of Nanhua Biotech, the company now makes commitments on the following matters: 1. Nanhua Biotech has complied with the "Company Law of the People's Republic of China" and "Securities of the People's Republic of China"

In accordance with the relevant requirements of the Law, the China Securities Regulatory Commission and the Shenzhen Stock Exchange, we have established a complete corporate governance structure and an independently operated company management system.

The company guarantees that it will not use its controlling shareholder position to engage in or participate in any behavior that damages the independence of Nanhua Biotech, and maintain the independence of Nanhua Biotech in terms of business, assets, finance, personnel, institutions, etc.
Commitment to independence:

The business is independent and the financial industry fund management has other commitments in October 2019 that are valid for a long time. Under normal execution. Financial independence, organization 28th Co., Ltd.

independent. 1. Ensure that Nanhua Biotech’s personnel are independent; ensure that Nanhua Biotech’s general manager, deputy general manager, financial director, board secretary and other senior management personnel are not the parties to this commitment and this commitment

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Hold other positions other than directors and supervisors in other companies controlled by this person; ensure that Nanhua Biotech's labor, personnel, and salary management systems are completely independent of this promisee and other companies controlled by this promisee; 2. Ensure the independence and integrity of Nanhua Biotech's assets; ensure that Nanhua Biotech's assets are independent of this promisee and other companies controlled by this promiser, and ensure the integrity of the assets owned by Nanhua Biotech ownership, and guarantee that Nanhua Biotech’s funds, assets and other resources will not be illegally appropriated in any way; 3. Guarantee the business independence of Nanhua Biotech; ensure that Nanhua Biotech has an independent and complete business management system and the ability to operate independently in the market; ensure that Nanhua Biotech is independent from the promisee and other enterprises controlled by the promisee in terms of procurement, production, sales, and intellectual property rights. 4. Ensure the financial independence of Nanhua Biotech; ensure that Nanhua Biotech has an independent financial department and an independent accounting system in accordance with the requirements of relevant accounting systems, and make independent financial decisions; ensure that Nanhua Biotech independently opens bank accounts and settles income and expenditure, and independently declares taxes and performs tax obligations in accordance with the law.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

ensure that Nanhua Biotech's financial personnel are independent of the promisee and other companies controlled by the promisee; 5. Ensure the institutional independence of Nanhua Biotech; in accordance with relevant laws, regulations and its articles of association, ensure that Nanhua Biotech has an independent and complete legal person governance structure and internal operation and management institutions, and ensure that these institutions independently exercise their respective powers; ensure that there is no mixed operation or joint office between Nanhua Biotech and this pledger and other enterprises controlled by this pledger;

(2) If the promisee violates the above commitment and causes actual losses to Nanhua Biotechnology, the promisee will bear and compensate for all direct or indirect economic losses caused to Nanhua Biotechnology. The above statements and commitments will continue to be valid while Nanhua Biotech legally and effectively exists and the promisee is the controlling shareholder of Nanhua Biotech. 2. Commitment on horizontal competition: The specific content is as follows: 1. As of the date of issuance of this commitment letter, the company does not control any company, enterprise or other operating entity that has the same or similar business as Nanhua Biotech, nor does it operate or operate for others the same or similar products or businesses as Nanhua Biotech.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

business; there is no horizontal competition between the Company and Nanhua Biotech. 2. The company guarantees that from the date of issuance of this commitment letter, the company and other companies controlled by the company will not engage in any form of business that is the same or similar to the main business of Nanhua Biotechnology and constitutes competition. 3. The company promises not to use Nanhua Biotech’s controlling shareholder status to harm the legitimate rights and interests of Nanhua Biotech and other shareholders of Nanhua Biotech. 4. If Nanhua Biotech expands its business scope in the future, resulting in the products or businesses operated by the company and other controlled enterprises being the same or similar to Nanhua Biotech's products or businesses, the company will stop operating relevant competitive businesses, or transfer the competing business to Nanhua Biotech or other unrelated third parties at a fair and equitable market price without affecting the interests of Nanhua Biotech. 5. If other companies controlled by the company violate the above commitments and cause actual losses to Nanhua Biotech, the company will bear and compensate for all direct or indirect economic losses caused to Nanhua Biotech. The above statements and commitments exist legally and effectively in Nanhua Biotech and the person committing the commitment serves as the controller of Nanhua Biotech.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

It will continue to be valid during the period of shareholders. 3. Commitment on related transactions: 1. The company and other companies controlled by the company will try to avoid related transactions with Nanhua Biotech in the future. For related transactions that are unavoidable or necessary, we will ensure fair operations based on market principles and fair prices, and perform related transaction procedures and information disclosure obligations in accordance with relevant laws, regulations, rules and other normative documents. The company will proactively fulfill its avoidance obligations when Nanhua Biotechnical Authority examines relevant related-party transactions. For related-party transactions that need to be reported to the competent authority for review, it can only be implemented after being reviewed and approved by the competent authority. It guarantees that it will not damage the legitimate rights and interests of Nanhua Biotech and other shareholders through related-party transactions. 2. The company promises not to take advantage of Nanhua Biotech’s shareholder status to harm the legitimate interests of Nanhua Biotech and other shareholders. 3. The Company and other enterprises invested or controlled by the Company will put an end to any illegal occupation of Nanhua Biotech’s funds and assets. Under any circumstances, Nanhua Biotech is not required to provide any form of guarantee or provide any form of capital to the Company and other enterprises controlled by the Company.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

gold support. If the company and other companies controlled by the company violate the above commitments and cause actual losses to Nanhua Biotechnology, the company will bear and compensate for all direct or indirect economic losses caused to Nanhua Biotechnology. The above statements and commitments will continue to be valid while Nanhua Biotech legally and effectively exists and the promisee is the controlling shareholder of Nanhua Biotech.

As the controlling shareholder or indirect controlling shareholder of Nanhua Biopharmaceutical Co., Ltd., the Commitor hereby makes the following commitments regarding the reduction of related transactions with the listed company and the maintenance of the independence of the listed company after the sale of major assets of Nanhua Biopharmaceutical Co., Ltd.:

(1) After the completion of this transaction, the promisor and the promisor actually control the enterprise Hunan Caixin Financial and the listed company and

In June 2019, other commitments of Holding Group Co., Ltd. among its subsidiaries are valid for a long time. Under normal execution.

On the 28th, the company will try to reduce related transactions as much as possible, and will not use its status as a shareholder of a listed company to seek to provide rights superior to third parties in the market in terms of business cooperation with listed companies; it will not use its status as a shareholder of a listed company to seek preferential rights to conclude transactions with listed companies;

(2) For related transactions that cannot be avoided or exist for reasonable reasons, the

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Sign standardized related-party transaction agreements with listed companies and their subsidiaries in accordance with the law, and perform approval procedures in accordance with relevant laws, regulations, rules, other normative documents and the company's articles of association; the price of related-party transactions is determined based on the price of the same or similar transactions with an independent third party with no related relationship, ensuring that the price of related-party transactions is fair; ensuring that information disclosure obligations for related-party transactions are fulfilled in accordance with relevant laws, regulations, and the company's articles of association; guaranteeing that it will not pass Related transactions damage the legitimate rights and interests of the listed company and other shareholders; (3) The promisee and the company actually controlled by the promisee guarantee that they will participate in the shareholders' meeting in accordance with the provisions of laws, regulations and the company's articles of association, exercise corresponding rights equally, assume corresponding obligations, and will not use their shareholder status to seek improper interests; when reviewing related transactions involving the promisee and the company actually controlled by the promisee, the avoidance procedures for voting on related transactions at the company's board of directors/shareholders meeting shall be observed.

Is the promise on time?

Yes

fulfill

If the promise is overdue

The performance is completed,

Should be specified Not applicable.

unfinished performance

The specific reasons are as follows

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

one step work plan

row

If there is a profit forecast for the company's assets or projects, and the reporting period is still in the profit forecast period, the company will explain why the assets or projects have reached the original profit forecast and the reasons why.

□Applicable ☑Not applicable

The company involves performance commitments

☑Applicable □Not applicable

Amount of commitment (10,000 Yuan Actual amount completed Commitment background Commitment party Commitment period Commitment indicator Completion rate (%) Yuan) (10,000 Yuan)

Performance commitment: In order to protect the interests of the listed company and all shareholders during the performance commitment period, Jinhong Group's interests and promote the continued stability of the company and the target company:

The company (1) is planning to acquire Jinhong New Materials Co., Ltd. in cash from the date of delivery to December 31, 2028 (hereinafter, the target company is referred to as "Loudi Jinhong" or "a company with an annual operating income of not less than 250 million yuan").

Rights and capital increase and share expansion (2) In the process of net profit matters, the target company and the counterparty Hu in 2025 will start from the delivery date to Nanjinhong Renewal Capital. On December 31, 2025, Source Group Co., Ltd., the target company, Loudi Jinhong realized the non-net deduction

Hunan Jinhong Rebirth

New Materials Co., Ltd. profit is not less than

Resources Group Limited September 2025

The company’s target company is RMB 1 million.

Company, Loudijin 30th to 2028 25,000 28,806.99 115.23% Future operating results 2026, 2027

Hongxin Materials Co., Ltd. December 31, 2019

Achieve clear performance in 2028

company

Commitment and compensation Anyi's target arrangement for one year. The company's commitment to deduct non-net profit for this performance is that the profit of each transaction is not negative and the three parties' average annual non-net profit deduction based on the target company's core business competition profit is not less than competitiveness and future development is 8 million yuan. Development planning and industry 2. If the company fails to meet the development trend and make reasonable agreements on performance commitments and certain requirements, Hong Group shall unconditionally bind Nanhua Biotech and promote Loudi to carry out performance compensation to enhance operating compensation.

Management level and profitability (1) Operating profitability, effectively implement the target compensation to protect the legitimate rights and interests of the company and its shareholders. Any year during the period

realized operating income

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

If the operating income indicator fails to reach the agreed operating income target during the performance commitment period, Jinhong Group shall compensate Nanhua Biotech in cash, with the compensation amount being 20 million yuan (the upper limit of compensation for the operating income indicator is 20 million yuan. If the operating income is not reached for multiple years, no repeated compensation will be made during the commitment period).

(2) Net profit indicator compensation. After the performance commitment period ends, the accounting firm hired by Nanhua Biotech will audit the target company and issue a special report. If the target company fails to meet the cumulative deduction of non-net profit indicators agreed during the performance commitment period, Jinhong Group shall within 5 working days from the date of issuance of the special audit report. The performance compensation amount calculated according to the following formula will be paid to Nanhua Biotech in cash: Performance compensation amount after non-net profit deduction: Amount of compensation payable = (cumulative non-net profit deduction amount committed during the commitment period - cumulative non-net profit deduction amount realized during the commitment period) × equity ratio of the target company held by Nanhua Biotechnology (55%) × 2 times.

In order to motivate the management team of the target company to achieve higher performance goals, excess rewards will be added to this transaction during the performance commitment period.

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Formula excess rewards: (1) The total amount of excess performance rewards during the performance commitment period shall not exceed 20% of the transaction consideration. The transaction consideration refers to the sum of the transfer price of this equity transfer and the capital increase of this capital increase;

(2) On the premise that the target company reaches all net profit indicators agreed upon in the performance commitment conditions, the total non-net profit deduction for the three years from 2026 to 2028 is greater than 24 million yuan and less than

For the portion of RMB 35 million, the reward ratio is 20%; the total non-net profit deducted is greater than RMB 35 million and less than

For the portion of RMB 45 million, the reward ratio is 30%; for the portion of the total non-net profit exceeding RMB 45 million, the reward ratio is

50%.

(3) Excess performance rewards shall be paid with the assets of the target company within 10 working days from the date when the excess reward distribution plan is passed by the target company’s shareholders’ meeting, provided that the conditions for the excess rewards in this article are met. All financial data such as operating income, net profit, non-net profit, etc. are stated in the annual audit report or special audit report issued by an accounting firm approved by Nanhua Biotech.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report Consolidated Financial Statements

The data shall prevail.

Changes in performance commitments

□Applicable ☑Not applicable

Commitments made by the company’s shareholders and counterparties regarding operating performance in the reporting year

☑Applicable □Not applicable

This reporting period is the first commitment period for the above-mentioned performance commitments. The target company has completed its 2025 operating income and net profit targets after deducting non-recurring gains and losses. Completion of performance commitments and its impact on goodwill impairment testing

According to Article 7.1 of the "Loudi Jinhong New Materials Co., Ltd. Equity Transfer and Capital Increase Agreement" signed in September 2025 between the Company (Party A), Hunan Jinhong Renewable Resources Group Co., Ltd. (Party B) and Loudi Jinhong New Materials Co., Ltd. (Party C, the target company), Party B and the target company jointly make the following commitments regarding the target company's operating performance:

The annual operating income of the target company during the performance commitment period shall not be less than 250 million yuan, of which the operating income from the delivery date to December 31, 2025 shall be no less than 250 million yuan;
From the delivery date to December 31, 2025, the target company’s net profit after deducting non-recurring gains and losses will be no less than 1 million yuan; in any year of 2026, 2027, and 2028, the target company’s net profit after deducting non-recurring profits will not be negative, and the average non-net profit for the three years will not be less than 8 million yuan. This period is the first commitment period, and the target company has completed its performance commitments for operating income and net profit attributable to the parent company.

All financial data such as operating income, net profit, and non-net profit mentioned above are based on the data in the consolidated financial statements of Jinhong New Materials stated in the annual audit report or special audit report issued by an accounting firm approved by the company. This reporting period is the first commitment period for the above-mentioned performance commitments. The target company has completed its 2025 operating income and net profit indicators after deducting non-recurring gains and losses. The completion of this performance commitment will have no adverse impact on the goodwill impairment test in this period.

2. Non-operating capital occupation of listed companies by controlling shareholders and other related parties

□Applicable ☑Not applicable

During the company's reporting period, there was no non-operational occupation of funds by the controlling shareholder or other related parties of the listed company.

3. Illegal external guarantees

□Applicable ☑Not applicable

The company had no illegal external guarantees during the reporting period.

4. The Board of Directors’ explanation of the latest “non-standard audit report”

□Applicable ☑Not applicable

Explanation by the board of directors and independent directors (if any) on the “non-standard audit report” of the accounting firm for this reporting period □ Applicable ☑ Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Description of changes in accounting policies, accounting estimates or correction of major accounting errors compared with the previous year's financial report

□Applicable ☑Not applicable

The company had no changes in accounting policies, accounting estimates or correction of major accounting errors during the reporting period.

Explanation of changes in the scope of consolidated statements compared with the previous year’s financial report

☑Applicable □Not applicable

(1) Increase in consolidation scope

Company name Equity acquisition method Time of equity acquisition Amount of capital contribution Ratio of capital contribution

Loudi Jinhong New Materials Co., Ltd. Purchase equity 2025-9-30 78,624,900.00 55%

(2) Reduction in consolidation scope

Company name Equity disposal method Time point of equity disposal Net assets on the date of disposal Net profit from the beginning of the period to the date of disposal

Nanhua Heping Hospital Management (Hunan) Co., Ltd. Equity transfer 2025-10-31 47,324,969.86 -10,895,963.62

8. Appointment and dismissal of accounting firms

Currently employed accounting firm

Name of the domestic accounting firm China Shen Zhonghuan Accounting Firm (Special General Partnership) Remuneration of the domestic accounting firm (10,000 yuan) 108.49 Continuous years of auditing services by the domestic accounting firm 1

Name of CPA of domestic accounting firm: Lu Jian, Chen Ji

Continuous years of CPA audit services provided by domestic accounting firms 1

Name of overseas accounting firm (if any) None.

Continuous years of audit services provided by overseas accounting firms (if any) None.

Name of the certified public accountant of the overseas accounting firm (if any) None.

The number of consecutive years of audit services provided by a certified public accountant of an overseas accounting firm (such as

None.

Yes)

Whether to hire a new accounting firm in the current period

☑Yes □No

Whether to hire a new accounting firm during the audit period

□Yes ☑No

Whether to follow the approval procedures when changing accounting firms

☑Yes □No

Detailed explanation of the re-appointment and change of accounting firm

The term of the original audit institution Tianjian Accounting Firm providing audit services to the company has expired.

Full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd. The employment of internal control audit accounting firms, financial consultants or sponsors ☑Applicable □Not applicable

During the reporting period, the company hired China Shen Zhonghuan Accounting Firm (Special General Partnership) as the financial audit agency and internal control audit agency for 2025, with an audit fee of 1.0849 million yuan (excluding tax).

Facing delisting after the annual report is disclosed □Applicable ☑Not applicable

10. Matters related to bankruptcy and reorganization

□Applicable ☑Not applicable

The company had no bankruptcy or reorganization related matters during the reporting period.

11. Major litigation and arbitration matters

□Applicable ☑Not applicable

During the reporting period, the Company had no major litigation or arbitration matters.

12. Punishment and rectification

□Applicable ☑Not applicable

There were no penalties or rectifications during the company's reporting period.

Integrity status of the company, its controlling shareholders and actual controllers □Applicable ☑Not applicable

14. Major related transactions

Related transactions related to daily operations

□Applicable ☑Not applicable

The company had no related transactions related to daily operations during the reporting period.

Related transactions arising from the acquisition and sale of assets or equity □ Applicable ☑ Not applicable

The company had no related transactions involving acquisition or sale of assets or equity during the reporting period.

Related transactions related to joint external investment

□Applicable ☑Not applicable

The company had no related transactions involving joint external investments during the reporting period.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Related credit and debt transactions

□Applicable ☑Not applicable

The company had no related creditor's rights or debts during the reporting period.

Dealings with related financial companies

□Applicable ☑Not applicable

There are no deposits, loans, credit or other financial business between the company and its related financial companies and related parties.

The transactions between the financial company controlled by the company and related parties

□Applicable ☑Not applicable

There are no deposits, loans, credit or other financial business between the financial companies controlled by the company and related parties.

Other major related transactions

☑Applicable □Not applicable

During the reporting period, the Company's wholly-owned subsidiary Nanhua Stem Cell Transformation and Hunan Caixin Asset Management Co., Ltd. (hereinafter referred to as "Caxin Assets") signed a "Credits Transfer Agreement" in November 2025 to transfer part of the receivable claims formed in its daily operating activities to Caixin Assets. The debt assets receivable transferred this time have a book balance of RMB 59.6689 million as of December 31, 2024, audited by Tianjian Accounting Firm (Special General Partnership) (Tianjian Shen [2025] No. 2-417), a cumulative provision for bad debts of RMB 36.2545 million has been made, and the book value is RMB 23.4144 million. Caixin Assets transferred the above-mentioned debt assets at a consideration not less than the book value of the debt, and the relevant debt transfer procedures have been completed.

Inquiries related to the temporary report disclosure website of major related party transactions

Temporary announcement name Temporary announcement disclosure date Temporary announcement disclosure website name Nanhua Biopharmaceutical Co., Ltd. Regarding claims

Announcement on the Transfer and Related Transactions of Juchao Information Network on November 15, 2025

Nanhua Biopharmaceutical Co., Ltd. About debts

November 21, 2025 Announcement on the Progress of Transfer and Related Transactions of Juchao Information Network

15. Major contracts and their performance

Custody, contracting and leasing matters

(1) Custody situation

□Applicable ☑Not applicable

There was no custody situation during the company's reporting period.

(2) Contracting situation

□Applicable ☑Not applicable

There was no contracting situation during the reporting period of the company.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report (3) Leasing situation

☑Applicable □Not applicable

Rental situation description

Serial number Lessor Lessee Lease property address Area (㎡) No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Hunan Lugu High-tech Transfer Co., Ltd.

1 East-West 869.4 Co., Ltd., 3rd Floor, Building B1, Nanhua Bio Valley Science and Technology Innovation and Entrepreneurship Park

Both sides, the middle (south) area of Building B1, No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

2 579.6 Entrepreneurship Service Center, Middle Area, Building B2, Boai Kangmin Valley Science and Technology Innovation and Entrepreneurship Park

Area between domain and building B1

No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

3 North 435 Entrepreneurship Service Center on the 1st floor of Building C, Nanhua Biotechnology Valley Science and Technology Innovation and Entrepreneurship Park

Room 103

No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

4 Nanhua Biotechnology Valley Technology Innovation and Entrepreneurship Park, Room 201, Building C, C 2,482 Entrepreneurship Service Center

Designated area on the first floor of the building

No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

5 1104 150 Entrepreneurship Service Center, 11th Floor, Building A1, Nanhua Biotechnology Valley Science and Technology Innovation and Entrepreneurship Park

room

No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

6 Nanhua Biotechnology Valley Technology Innovation and Entrepreneurship Park 1101 620 Entrepreneurship Service Center, Building A1, 11th Floor

room

No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

7 579.6 Entrepreneurship Service Center in the middle of Buildings B1 and B2 of Nanhua Biotechnology Valley Science and Technology Innovation and Entrepreneurship Park

area

No. 1698, Yuelu West Avenue, Changsha High-tech Zone

Changsha High-tech Industrial Development Zone

8 North Building B2, B1 869.4 Entrepreneurship Service Center, Hunan Love the World for the People Valley Science and Technology Innovation and Entrepreneurship Park

central area of the building

Changsha Dingshangding Apartment Management Co., Ltd. No. 9, No. 1698 Yuelu West Avenue, Changsha High-tech Zone Hunan Aishiweimin 52.4 Company Room 405, Building B3, Valley Science and Technology Innovation and Entrepreneurship Park

Changsha Dingshangding Apartment Management Co., Ltd. No. 1698, Yuelu West Avenue, Changsha High-tech Zone, No. 10, Hunan Aishiweimin 52.4

Company Room 407, Building B3, Gu Technology Innovation and Entrepreneurship Park

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Hunan Evergrande Seed Industry High-tech Co., Ltd.

11 Chengguang Energy Saving Company A3-3 240, Changsha Science and Technology New Town, Changsha County, Changsha

Hunan Evergrande Seed Industry High-tech Co., Ltd.

12 Xiangjiang Water Affairs Company A3-3 110, Changsha Science and Technology New Town, Changsha County, Changsha

Hunan Evergrande Seed Industry High-tech Co., Ltd.

13 Zhiwei Construction A3-3 300 Company, Changsha Science and Technology New Town, Changsha County, Changsha

Room 410, No. 516, Xinglinwan Road, Jimei District, Xiamen City

14 Zhou Meihua Xiamen Chengguang Unit 50.97

Room 1114, Building B1, Chuanggu Advertising Industrial Park, Tianxin District

15 Hunan Highway Design Co., Ltd. Shaanxi Chengguang 154

1110

16 Hu Shaoping Zhiwei Construction Room 506, Building 3, Jazz Xiang, Panpan Road, Changsha County 109

Hunan Evergrande Seed Industry High-tech Co., Ltd.

17 Nanhua Energy Saving Company A3-3 50, Changsha Science and Technology New Town, Changsha County, Changsha

Huaihua High-tech Industrial Investment Group has

18 Huaihua City Light Environmental Protection 1401, Building 1, Wushui Mountain City, Huaihua High-tech Zone 143.59 Co., Ltd.

No. 15, Area B, Lotus International, Jimei District, Xiamen City

19 Zhuang Yuan Xiamen Chengguang 114.94 Floor 1103

1 unit in Building 8, Area A, Sunac, Guanshanhu District, Guiyang City

20 Qu Zhifang Shaanxi Chengguang 185.78

No. 2, Yuan 5th Floor

21 Li Yingkai Xiangjiang Water Affairs Rongchangba Community, Renhuai City, Zunyi City, Guizhou Province 100 22 Zhou Yi Xiangjiang Water Affairs Room 2602, Unit 2, Building 1, Guojiu New City Phase 1 142.6

Yizhou Avenue, Jincheng Town, Jinning District (Hefengxiang

23 Ding Xingduo, Li Gang 2-3F, Building 20, No. 146, Gongliyuan, Yunnan

Hunan Youze Real Estate Development Co., Ltd. Youyi Consulting, No. 339, Xinglian Road, Kaifu District, Changsha City

24 Nanhua Yuanfang 216 Company 21st Floor, Consulting Building

Changsha Deyi Grain and Oil Co., Ltd. Deyi, No. 859 Renmin Middle Road, Furong District, Changsha City

25 Nanhua Yuanfang 900 Company, inside the Grain and Oil Institute

Hengda Road, Hehuayuan Street, Furong District, Changsha City

26 Ren Yu Nanhua Yuanfang Gate 105-1 and 105-2, Building 1, Taixincun Community, Shop 100

Lengshuijiang Jinda Road Environmental Protection Technology Co., Ltd. Lengshuijiang Haihong Logistics Park opened Haihong Logistics, Huancheng East Road, Lengshuijiang City, Loudi City

27 6000

Co., Ltd. Development Co., Ltd. Park

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Lengshuijiang Jinda Road Environmental Protection Technology Co., Ltd. Lengshuijianghong Road scrapped cars Haihong Logistics, Huancheng East Road, Lengshuijiang City, Loudi City

28 6800

Co., Ltd. Recycling and Dismantling Co., Ltd. Park

Projects that bring profits and losses to the company exceeding 10% of the company's total profit during the reporting period

□Applicable ☑Not applicable

During the company's reporting period, there were no leasing projects that brought profits or losses to the company that accounted for more than 10% of the company's total profits during the reporting period.

Major guarantee

□Applicable ☑Not applicable

The company had no major guarantees during the reporting period.

Entrusting others to manage cash assets

(1) Entrusted financial management situation

☑Applicable □Not applicable

Overview of entrusted financial management during the reporting period

Unit: 10,000 yuan

Product Category Risk Characteristics Balance of entrusted financial management during the reporting period Overdue amount Trust financial management products Fixed income trust products 0 0 Bank financial management products Low-risk short-term financial management products 0 0 The company entrusts financial institutions to carry out asset management as a single client, or invest in high-risk entrusted financial management with low security and poor liquidity. Specific circumstances □ Applicable ☑ Not applicable

(2) Entrusted loans

□Applicable ☑Not applicable

The company had no entrusted loans during the reporting period.

Other major contracts

□Applicable ☑Not applicable

The company had no other major contracts during the reporting period.

16. Usage of raised funds

☑Applicable □Not applicable

Overall use of raised funds

☑Applicable □Not applicable

Unit: RMB 10,000 Raised Securities Raised Raised This Period Accumulated Report Report Accumulated Accumulated Not Yet Not Yet Idle Years Method Listed Funds Funds Already Used Calculation End of Period During Period Change Change Use Used for two years

Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report Full Text Date Total Net Amount Raised Raised Raised Change Purpose Raised Raised Above (1) Raised Funds Raised Funds Purpose of Raised Funds Funds Total Raised Funds Total Funds Used Total Funds Raised Purpose Amount of Funds Amount Ratio Total Funds Raised Total Amount of Funds and Amount (2) (3) Total Amount of Funds Amount Ratio To = Amount Example

(2)

(1)

Xiangte

2024

Definitely right

2023 01 27,60 27,11 27,11 27,11 100.0

Xiangfa 0 0 0.00% 0 - 0 years Month 10 0 0.52 0.52 0.52 0%

stocks

day

ticket

27,60 27,11 27,11 27,11 100.0

Total -- -- 0 0 0.00% 0 -- 0

0 0.52 0.52 0.52 0%

Description of the overall use of raised funds:

As of the end of this reporting period, the special account for raised funds was closed in February 2025.

Project status of fund-raising commitments

□Applicable ☑Not applicable

Changes in projects with raised funds

□Applicable ☑Not applicable

There were no changes in projects with raised funds during the company's reporting period.

Verification opinions of intermediaries on the storage and use of raised funds

☑Applicable □Not applicable

After verification, the sponsor believes that the company's storage and use of raised funds in 2025 complies with the requirements of the "Supervisory Rules for Listed Companies' Raised Funds" and the "Shenzhen Stock Exchange Self-Discipline Supervision Guidelines for Listed Companies No. 1 - Standard Operation of Main Board Listed Companies" and other relevant regulations and normative documents. The company has stored and used the raised funds in a special account. There is no disguised change in the use of raised funds and harm to the interests of shareholders, and there is no illegal use of raised funds. The funds raised by the company from the issuance of stocks to specific objects have been used up, and the relevant special account for raised funds has been canceled.

17. Description of other major matters

□Applicable ☑Not applicable

There are no other significant matters that need to be explained during the company's reporting period.

18. Major events of the company’s subsidiaries

☑Applicable □Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

During the reporting period, in order to further optimize the company's business structure and focus on the development of core industries, the company held the 28th meeting of the 11th Board of Directors on June 18, 2025, and reviewed and approved the "Proposal on Authorizing the Management to List the Equity of the Subsidiary for Sale". The 52% equity of Nanhua Heping Hospital Management (Hunan) Co., Ltd. held by the Hunan Provincial United Equity Exchange was publicly listed and transferred, and the listing price was not less than the assessed value of 19.9919 million yuan confirmed by the appraisal agency. The company has signed an "Equity Transaction Contract" with the transferee Zhongguan Xinneng Technology on October 21, 2025, and has completed the equity change filing procedures with the Market Supervision Administration. After the completion of this transaction, the company will no longer hold equity in Nanhua Heping Hospital Management (Hunan) Co., Ltd. For relevant details, please refer to the relevant announcements disclosed by the company on the cninfo.com on June 19, 2025, August 21, 2025, September 20, 2025 and October 24, 2025 (announcement numbers: 2025-031, 2025-049, 2025-058, 2025-063).

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Section 6 Share changes and shareholder status

1. Changes in shares

Changes in shares

Unit: Before the change in share capital Increase or decrease in this change (+, -) After this change, transfer of reserve fund

Quantity Proportion Issuance of new shares Bonus shares Others Subtotal Quantity Proportion

1. Limited - -

19,354,3

Conditional shares 5.86% 0 0 0 18,453,6 18,453,6 900,700 0.27% share 97 97

Country

0 0.00% 0 0 0 0 0 0 0.00% family holdings

Country - -

18,449,1

There is a legal person holding 5.59% 0 0 0 18,449,1 18,449,1 0 0.00% shares 97 97

Other domestic investors hold 905,200 0.27% 0 0 0 -4,500 -4,500 900,700 0.27% shares

its

Medium: Domestic 900,700 0.27% 0 0 0 0 0 900,700 0.27% legal person shareholding

within the territory

Natural persons hold 4,500 0.00% 0 0 0 -4,500 -4,500 0 0.00% shares

outside

0 0.00% 0 0 0 0 0 0 0.00% capital holding

its

Medium: Overseas 0 0.00% 0 0 0 0 0 0 0.00% legal person shareholding

overseas

Natural persons hold 0 0.00% 0 0 0 0 0 0 0.00% shares

2. Unlimited

310,668, 18,453,6 18,453,6 329,122,

Conditional shares 94.14% 0 0 0 99.73%

701 97 97 398

portion

People

310,668, 18,453,6 18,453,6 329,122,

RMB Ordinary 94.14% 0 0 0 99.73%

701 97 97 398

Environment

0 0.00% 0 0 0 0 0 0 0.00% foreign-invested shares listed in China

Environment

Externally listed 0 0.00% 0 0 0 0 0 0 0.00% foreign-invested shares

Its 0 0.00% 0 0 0 0 0 0 0.00%

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

him

Shares 330,023, 330,023,

100.00% 0 0 0 0 0 100.00% Total 098 098 Reasons for share changes

□Applicable ☑Not applicable

Approval status of share changes

□Applicable ☑Not applicable

Transfer status of changes in shares

□Applicable ☑Not applicable

The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in the most recent year and period, net assets per share attributable to the company’s common shareholders □Applicable ☑Not applicable

Other content that the company deems necessary or required to be disclosed by securities regulatory authorities

□Applicable ☑Not applicable

Changes in restricted shares

☑Applicable □Not applicable

Unit: Increased sales restrictions in the equity period, lifted sales restrictions in this period

Name of shareholder Number of restricted shares at the beginning of the period Number of restricted shares at the end of the period Reason for selling restrictions Number of shares on the date of lifting the restrictions Number of shares

company to holding shares

Dongcai Xin Industry Base Hunan Province Cai Xin Industry

Private placement of gold A In July 2025, 9 industry fund management companies 18,449,197 0 18,449,197 0

stock limited company

18,449,197

Supervisor who resigned, in

May 2025 Wang Yiya 4,500 0 4,500 0 The 11th Supervisor on the 28th

within the term of the session.

Total 18,453,697 0 18,453,697 0 -- --

2. Securities issuance and listing

Securities issuance (excluding preference shares) during the reporting period

□Applicable ☑Not applicable

Explanation of changes in the company’s total number of shares and shareholder structure, and changes in the company’s asset and liability structure

□Applicable ☑Not applicable

Existing internal employee shares

□Applicable ☑Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

3. Shareholders and actual controllers

Number of shareholders and shareholding status of the company

Unit: Share

end of reporting period

Annual Report Voting Rights Restored

The end of the previous reporting period before the disclosure date of the annual report Priority will be given to those who reply before the disclosure date

Preferred ordinary shares with voting rights restored at the end of the month 11,879 10,803 shares at the end of the previous month Total shareholders 0 0

Total number of shareholders (if any) Total number of shareholders Number of common shares (if any)

(See note 8)

The total number of east (yes) (see

See note 8)

Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through refinancing)

During the reporting period Limited holdings Unlimited holdings Pledge, marking or freezing status

end of reporting period

Name of shareholder Nature of shareholder Shareholding ratio Increase or decrease Conditions for sale Conditions for sale

Number of shares held Share status Quantity

Situation Number of shares Number of shares

Hunan Provincial Finance

Information industry

98,150,85 98,150,85

Industrial fund management State-owned legal person 29.74% 0 0 Not applicable 0

2 2

Reasonable

Ltd.

Chongqing International

Trust Domestic non-state 35,600,00 35,600,00 35,600,00

10.79% 0 0 Frozen joint stock limited company with legal person 0 0 0 company

Chongqing Zijun

Domestic non-state -

Investment 2.05% 6,770,900 0 6,770,900 Not applicable 0

Legal person 3,120,100

Ltd.

Nature within the territory

Ye Chaoying 2.01% 6,618,501 0 0 6,618,501 Not applicable 0 people

Nature within the territory

Lu Laxian 0.86% 2,826,900 90,300 0 2,826,900 Not applicable 0

people

Shenzhen Linze

non-state within territory

Investment 0.84% 2,780,900 0 0 2,780,900 Pledge 2,780,900

Have legal person

Ltd.

Nature within the territory

Tao Huijuan 0.83% 2,730,200 840,062 0 2,730,200 Not applicable 0 people

Nature within the territory

Ye Xinxing 0.82% 2,712,068 945,100 0 2,712,068 Not applicable 0 people

Nature within the territory

Ren Hong 0.62% 2,042,600 -342,300 0 2,042,600 Not applicable 0 people

Nature within the territory

#Liubo 0.51% 1,670,100 38,000 0 1,670,100 Not applicable 0

people

Strategic investors or general legal persons

Became top 10 due to placement of new shares

Not applicable.

Status of shareholders (if any)

(See note 3)

Among the top 10 shareholders of the company, there is no related relationship between the controlling shareholder Caixin Industrial Fund and other shareholders, and it does not belong to the above-mentioned shareholder related relationships or a single

Persons acting in concert as stipulated in the "Measures for the Administration of Acquisitions of Listed Companies"; it is currently not possible to know whether there is any explanation of related actions among other shareholders of tradable shares.

relationship, or whether it constitutes a person acting in concert as stipulated in the "Measures for the Administration of Acquisitions of Listed Companies".

The above shareholders are involved in entrustment/trusteeship

Voting rights and abstention from voting Not applicable.

explanation of the situation

There are buybacks among the top 10 shareholders. Not applicable.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Special instructions for special accounts (such as

Yes) (see note 10)

Shareholdings of the top 10 shareholders without sales restrictions (excluding shares lent through refinancing and shares locked by executives)

Type of shares Name of shareholder Number of shares without selling restrictions held at the end of the reporting period

Type of Shares Quantity Hunan Provincial Financial Information Industry Fund Management RMB General 98,150,85

98,150,852

Securities Co., Ltd. Common stock 2 Chongqing International Trust Co., Ltd. RMB 35,600,00

35,600,000

Company Common Stock 0

RMB general

Chongqing Zijun Investment Co., Ltd. 6,770,900 6,770,900 common shares

RMB general

Ye Chaoying 6,618,501 6,618,501 shares

RMB general

Lu Lixian 2,826,900 2,826,900 common shares

RMB general

Shenzhen Linze Investment Co., Ltd. 2,780,900 2,780,900 common shares

RMB general

Tao Huijuan 2,730,200 2,730,200 common shares

RMB general

Ye Xinxing 2,712,068 2,712,068 shares

RMB general

Ren Hong 2,042,600 2,042,600 common shares

RMB general

#Liubo 1,670,100 1,670,100

common stock

Top 10 unrestricted tradable shares

Among the top 10 shareholders of the company, there is no related relationship between the controlling shareholder Caixin Industry Fund and other shareholders, and they are not among the top 10 shareholders of restricted tradable shares and persons acting in concert as stipulated in the "Administrative Measures for the Acquisition of Listed Companies"; it is not yet known whether there is an associated relationship or associated relationship between related shareholders among other shareholders of tradable shares, or whether they constitute a person acting in concert under the "Administrative Measures for the Acquisition of Listed Companies".

Description of concerted action

Top 10 common shareholders participate

Shareholder Liu Bo holds 549,600 shares of the company through ordinary securities accounts, and an explanation of the company’s stock margin financing and securities lending business held through credit securities accounts.

1,120,500 shares, holding a total of 1,670,100 shares of the company.

(if any) (see note 4)

The situation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the refinancing business and lending shares

□Applicable ☑Not applicable

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

□Applicable ☑Not applicable

Whether the company's top 10 ordinary shareholders and the top 10 unrestricted ordinary shareholders conducted agreed repurchase transactions during the reporting period

□Yes ☑No

The company's top 10 common shareholders and the top 10 common shareholders without selling restrictions did not conduct agreed repurchase transactions during the reporting period.

Information about the company’s controlling shareholders

Nature of controlling shareholder: local state-owned holding

Controlling shareholder type: legal person

The legal representative/unit is responsible for

Name of controlling shareholder Date of establishment Organization code Main business person

Entrusted with the management of private equity industry funds and equity investment funds in Hunan Province,

Liu Tianxue January 17, 2001 91430000707259868Y

Management Co., Ltd. Trusted asset management and investment

management, venture capital, stocks

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Equity investment (not allowed to engage in national financial supervision and fiscal credit business such as deposit-taking, fund-raising and collection, entrusted loans, issuance of bills, and granting of loans). (Projects that require approval according to law can only be carried out after approval by relevant departments.

business activities)

As of December 31, 2025, the company's controlling shareholder Caixin Industry Fund indirectly controls 180.817 million shares of Shanghai Haixin Group Co., Ltd., with a shareholding ratio of 14.98%. The number of indirect shares held in Boreton Technology Co., Ltd. is 20.9597 million shares, with a shareholding ratio of 5.72%; the number of indirect shares held in Mango Super Media Co., Ltd. is 93.6479 million shares, with a shareholding ratio of 5.01%; the indirect shareholding in Zhonggong Education Technology Co., Ltd. has 307.3699 million shares, with a shareholding ratio of 4.98%; the indirect shares of Hunan Kemet Gas Co., Ltd. are 21.8309 million shares, with a shareholding ratio of 3.14%; the controlling shareholder of the indirect shareholding controlled the company during the reporting period

The number of shares of Changsha Yuanda Housing Industry Group Co., Ltd. is 10.3524 million shares, with a shareholding ratio of 2.12%; indirect shares of Wuhan shares and other domestic shares of shares

The number of shares of Hanheyuan Biotechnology Co., Ltd. is 3.1971 million shares, with a shareholding ratio of 0.89%. Equity information of listed companies as of December 31, 2025

On the 1st, Caixin Industry Fund indirectly held Zhejiang Bofei Electric Co., Ltd., Shenzhen Agricultural Products Group Co., Ltd. through funds managed by it.

Tuan Co., Ltd., Sirip Microelectronics Technology (Suzhou) Co., Ltd., Guangdong Hesheng Industrial Aluminum Co., Ltd., Lens Technology Co., Ltd., Biocytogen (Beijing) Pharmaceutical Technology Co., Ltd., Anhui Fuled Technology Development Co., Ltd., Huizhou Desay SV Automotive Electronics Co., Ltd., Xi'an Yisiwei Material Technology Co., Ltd. and other domestic listed companies. The above-mentioned shareholdings are all financial investments, with shareholding ratios below 1%, and do not constitute control, joint control or significant influence on the invested companies.

Changes in controlling shareholders during the reporting period

□Applicable ☑Not applicable

The company's controlling shareholder did not change during the reporting period.

The actual controller of the company and its persons acting in concert

Nature of actual controller: local state-owned assets management agency

Actual controller type: legal person

The legal representative/unit is responsible for

Name of actual controller Date of establishment Organization code Main business

people

Hunan Provincial People's Government - - -

Actual controller during the reporting period

Other controlled domestic and overseas areas -

Equity situation of municipal companies

Changes in actual controller during the reporting period

□Applicable ☑Not applicable

The actual controller of the company did not change during the reporting period.

Block diagram of the property rights and control relationship between the company and the actual controller

The actual controller controls the company through trust or other asset management methods

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

□Applicable ☑Not applicable

The cumulative number of pledged shares by the company’s controlling shareholder or largest shareholder and persons acting in concert accounts for 80% of the number of company shares held by them.

□Applicable ☑Not applicable

Other legal person shareholders holding more than 10% of the shares

☑Applicable □Not applicable

Legal representative/unit responsible Main business or management legal person shareholder name Date of establishment Registered capital

people activities

Licensed items: capital trust; movable property trust; real estate trust; securities trust; other property or property rights trust; engaging in investment fund business as a sponsor of an investment fund or fund management company; operating the reorganization, acquisition and project financing of corporate assets, corporate finance, financial consulting and other businesses; entrusted to operate securities underwriting business approved by the relevant departments of the State Council; handling intermediary, consulting, credit investigation and other businesses; Chongqing International Trust Co., Ltd.; custody and safe deposit box Weng Zhenjie October 22, 1984 15 million yuan

Co., Ltd. business; use of inherent property in the form of deposits with banks, placements with banks, loans, leases, and investments; use of inherent property to provide guarantees for others; engage in interbank lending; and other businesses as stipulated by laws and regulations or approved by the China Banking Regulatory Commission. The above business scope includes domestic and foreign currency businesses. (Projects that require approval according to law can only be carried out with the approval of relevant departments. Specific business projects shall be subject to the approval documents or licenses of relevant departments)

Shareholding restrictions and reductions of controlling shareholders, actual controllers, reorganizers and other commitment entities

□Applicable ☑Not applicable

4. Specific implementation of share repurchases during the reporting period

Implementation progress of share buybacks

□Applicable ☑Not applicable

Implementation progress of reducing and repurchasing shares using centralized bidding transactions

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report □Applicable ☑Not applicable

Information related to preference shares □Applicable ☑Not applicable

There were no preferred shares in the company during the reporting period.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Section 7 Bond-Related Information □Applicable ☑Not Applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Section 8 Financial Report

1. Audit report

Type of audit opinion Standard unqualified opinion

Audit report signing date April 28, 2026

Name of the audit institution: China Shen Zhonghuan Accounting Firm (Special General Partnership)

Audit report number Zhonghuan Shen Zi [2026] No. 1700029

Name of CPA: Lu Jian, Chen Ji

Audit report text

All shareholders of Nanhua Biopharmaceutical Co., Ltd.:

1. Audit opinions

We have audited the financial statements of Nanhua Biopharmaceutical Co., Ltd. (hereinafter referred to as "Nanhua Biotech"), including the consolidated and company balance sheets on December 31, 2025, the consolidated and company income statements, the consolidated and company cash flow statements, the consolidated and company changes in shareholders' equity statements for 2025, and the notes to relevant financial statements.

We believe that the attached financial statements are prepared in accordance with the Accounting Standards for Business Enterprises in all material respects and fairly reflect the financial position of Nanhua Biotech and the company as of December 31, 2025, as well as the consolidated and company's operating results and cash flows in 2025.

2. The basis for forming audit opinions

We performed the audit work in accordance with the Chinese Certified Public Accountants Auditing Standards. Our responsibilities under these standards are further described in the "CPA's Responsibilities for the Audit of Financial Statements" section of the auditor's report. In accordance with the Chinese Code of Independence for Certified Public Accountants and the Chinese Code of Professional Ethics for Certified Public Accountants, we are independent from Nanhua Biotech and have fulfilled other responsibilities in professional ethics. We also comply with the independence requirements applicable to public interest entities. We believe that the audit evidence we obtained is sufficient and appropriate and provides a basis for issuing an audit opinion.

3. Key audit matters

Key audit matters are matters that we, based on our professional judgment, consider to be most important in the audit of the current period's financial statements. The response to these matters is based on the audit of the financial statements as a whole and the formation of audit opinions. We do not express opinions on these matters individually. We have determined that the following matters are key audit matters that need to be communicated in the audit report.

As mentioned in Note 7.34 of the financial statements, Nanhua Biotech's operating income in 2025 is 415.9397 million yuan, mainly from the fourth quarter; Nanhua Biotech has a delisting risk due to losses in 2024 and operating income of less than 300 million yuan, and management may use inappropriate revenue recognition to achieve specific goals; therefore, we regard the recognition of revenue as a key audit matter.

Response:

Understand and test the internal controls related to the recognition of revenue from Nanhua Biotech’s main business to evaluate its effectiveness;

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Check the main sales contracts, combined with the business model, determine whether Nanhua Biotech is the main person or agent in the business, and evaluate whether its main business income recognition policy complies with the accounting standards;
Implement analysis procedures for operating income and gross profit margin by month, product, customer, etc., analyze the reasons and rationality of fluctuations in main business income, sales unit price, gross profit margin, etc. based on public information from the industry and downstream customers, and compare the gross profit margin with similar products of listed companies in the same industry to determine whether the transaction price is fair;
Select samples and check the supporting documents related to revenue recognition. The revenue confirmation information for the human cell testing and storage business includes the customer's identity information, cell storage agreement, collected samples, sample test report information, etc. The revenue confirmation information for the EMC (Energy Management Contract) and sewage treatment business includes sales contracts, sales invoices, and sewage treatment settlement statements. , customer energy-saving benefit confirmation, etc.; the revenue recognition data for lithium carbonate and scrap steel business include sales contracts, delivery orders, sales invoices, pound orders, customer remittance orders, logistics transportation orders, acceptance orders, settlement orders, etc.; to evaluate whether the supporting documents related to revenue recognition are sufficient, and whether the main business income recognition method is consistent with the company's main business income recognition policy;
Select important sales customers and send them confirmation letters, including balance, sales, payment status, related relationships, etc.;
Conduct on-site visits to important suppliers and customers of lithium carbonate, scrap steel, cosmetics, purifiers and other businesses sold in the fourth quarter to understand their usage, judge the authenticity of sales, and ask trader customers to explain the final destination or source of the products;
Perform cut-off testing on sales revenue recognized before and after the balance sheet date to evaluate whether sales revenue is recognized in the appropriate period;
Obtain the sales return records after the balance sheet date and check whether there are any situations where the revenue recognition conditions are not met on the balance sheet date;
Check the production records and monitoring of lithium carbonate and scrap steel, etc., and verify whether they have real production and processing processes to determine whether the company's business is a trading business;
Check whether the revenue presentation and disclosure of Nanhua Biotech is in compliance with the Accounting Standards for Business Enterprises and the relevant provisions on the deduction of operating income in the "Shenzhen Stock Exchange Stock Listing Rules" and "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Business Processing".

4. Other information

The management of Nanhua Biotech is responsible for other information. Other information includes information covered in the 2025 Annual Report, but does not include the financial statements and our auditor's report. Our audit opinion on the financial statements does not cover other information, nor do we express any form of assurance conclusion on other information.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained during the audit or otherwise appears to be materially misstated.

If we determine, based on the work we have performed, that other information is materially misstated, we should report that fact. We have nothing to report in this regard.

5. Responsibility of management and those charged with governance for financial statements

The management of Nanhua Biotech (hereinafter referred to as the management) is responsible for preparing financial statements in accordance with the provisions of the Accounting Standards for Business Enterprises to achieve fair reflection, and to design, implement and maintain necessary internal controls so that the financial statements do not contain material misstatements due to fraud or errors.

When preparing financial statements, management is responsible for assessing Nanhua Biotech's ability to continue as a going concern, disclosing matters related to continuing operations (if applicable), and applying the going concern assumption, unless management plans to liquidate Nanhua Biotech, terminate operations, or has no other realistic option.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Those charged with governance are responsible for overseeing Nanhua Biotech’s financial reporting process.

6. Responsibilities of certified public accountants for auditing financial statements

Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free of material misstatements due to fraud or error, and to issue an audit report containing an audit opinion. Reasonable assurance is a high level of assurance, but it does not guarantee that an audit performed in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements may be due to fraud or error and are generally considered material if they are reasonably expected individually or in aggregate to affect the economic decisions made by users of financial statements based on the financial statements.

In the process of performing audit work in accordance with the auditing standards, we use professional judgment and maintain professional skepticism. At the same time, we also perform the following tasks:

(1) Identify and assess the risks of material misstatement of financial statements due to fraud or errors, design and implement audit procedures to respond to these risks, and obtain sufficient and appropriate audit evidence as the basis for issuing audit opinions. Because fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls, the risk of failing to detect a material misstatement resulting from fraud is higher than the risk of failing to detect a material misstatement resulting from error.

(2) Understand the internal controls related to auditing to design appropriate audit procedures.

(3) Evaluate the appropriateness of the accounting policies adopted by the management and the reasonableness of the accounting estimates and related disclosures made.

(4) Draw conclusions on the appropriateness of management’s use of the going concern assumption. At the same time, based on the audit evidence obtained, a conclusion is drawn as to whether there are significant uncertainties about events or conditions that may cause significant doubts about Nanhua Biotech's ability to continue as a going concern. If we conclude that significant uncertainty exists, auditing standards require us to draw the attention of users to the relevant disclosures in the financial statements in our audit report; if the disclosures are insufficient, we should issue a qualified opinion. Our conclusions are based on information available as of the date of the auditor's report. However, future events or conditions may cause Nanhua Biotech to cease to continue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements fairly reflect relevant transactions and events.

(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities in Nanhua Biotech to express an opinion on the financial statements. We are responsible for directing, supervising and performing group audits and take full responsibility for our audit opinions.

We communicate with those charged with governance regarding, among other matters, the planned audit scope, timing and significant audit findings, including communication of significant internal control deficiencies identified during our audit.

We also provide statements to those charged with governance that we have complied with ethical requirements related to independence and communicate with those charged with governance all relationships and other matters that may reasonably be considered to affect our independence, and related safeguards, if applicable.

From the matters communicated with those charged with governance, we determine which matters are most significant to the audit of the current period's financial statements and therefore constitute key audit matters. We describe these matters in our auditor's report unless laws or regulations prohibit public disclosure of the matter or, in rare circumstances, we determine that the matter should not be communicated in our auditor's report if the adverse consequences of communicating the matter in the auditor's report are reasonably expected to outweigh the benefits in the public interest.

China Shen Zhonghuan Accounting Firm (Special General Partnership) Chinese Certified Public Accountant: Lu Jian

(Project Partner)

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Chinese Certified Public Accountant: Chen Ji

Wuhan, China April 28, 2026

2. Financial statements

The unit of statements in the financial notes is: Yuan

Consolidated balance sheet

Prepared by: Nanhua Biopharmaceutical Co., Ltd.

December 31, 2025

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 346,768,170.11 207,363,146.93 Settlement reserves

Loan funds

Trading financial assets 607,889.00 Derivative financial assets

Notes receivable 101,958,952.44

Accounts receivable 218,520,524.30 139,581,939.21 Accounts receivable financing

Prepayments 15,630,255.18 3,885,112.92 Premiums receivable

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 18,021,005.54 4,393,557.13 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 18,665,612.89 34,058,655.58

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 19,355,287.56 12,014,008.66 Total current assets 738,919,808.02 401,904,309.43 Non-current assets:

Grant loans and advances

debt investment

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Other debt investments

long-term receivables

long term equity investment

Other equity instrument investments

Other non-current financial assets 100,000,000.00 Investment real estate

Fixed assets 165,435,181.41 13,494,475.46 Construction in progress 108,075.33

productive biological assets

oil and gas assets

Right-of-use assets 4,677,762.89 12,560,458.60 Intangible assets 55,811,301.22 1,857,086.22

Among them: data resources

development expenditure

Among them: data resources

Goodwill 6,226,910.53 1,983,226.77 Long-term deferred expenses 10,833,889.63 73,749,023.10 Deferred income tax assets 8,708,420.46 1,915,770.17 Other non-current assets 1,009,654.27 705,468.22 Total non-current assets 252,811,195.74 206,265,508.54 Total assets 991,731,003.76 608,169,817.97 Current liabilities:

Short-term borrowings 270,254,392.59

Borrow from the central bank

borrowing funds

Trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 14,715,783.60 84,466,271.24 Advance payments

Contract liabilities 201,445,948.34 185,176,948.66 Financial assets sold and repurchased

Taking deposits and placing deposits with other banks

Agent for buying and selling securities

Agent underwriting securities funds

Employee benefits payable 7,739,934.25 5,896,443.57 Taxes payable 15,358,316.65 4,437,781.78 Other payables 8,511,967.53 7,005,666.49 Including: interest payable

Dividends payable 931,102.81 931,102.81 Handling fees and commissions payable

Reinsurance accounts payable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Liabilities held for sale

Non-current liabilities due within one year 14,801,206.97 4,608,415.22 Other current liabilities 12,327,796.48 13,879,559.74 Total current liabilities 545,155,346.41 305,471,086.70 Non-current liabilities:

insurance contract reserves

Long-term borrowings 52,950,000.00 9,000,000.00 Bonds payable

Among them: preferred shares

perpetual bond

Lease liabilities 3,235,879.48 10,449,883.62 Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income 26,641,263.45 1,099,026.92 Deferred income tax liabilities 6,242,192.96 151,713.49 Other non-current liabilities

Total non-current liabilities 89,069,335.89 20,700,624.03 Total liabilities 634,224,682.30 326,171,710.73 Owners’ equity:

Share capital 330,023,098.00 330,023,098.00 Other equity instruments

Among them: preferred shares

perpetual bond

Capital reserve 423,300,174.60 423,472,870.01 Less: treasury shares

other comprehensive income

special reserve

Surplus reserve 34,545,734.18 34,545,734.18 General risk reserve

Undistributed profits -522,117,836.05 -550,946,522.17 Total owners’ equity attributable to the parent company 265,751,170.73 237,095,180.02 Minority shareholders’ equity 91,755,150.73 44,902,927.22 Total owners’ equity 357,506,321.46 281,998,107.24 Total liabilities and owners’ equity 991,731,003.76 608,169,817.97 Legal representative: Yang Yun Person in charge of accounting work: Lin Pengbin Person in charge of accounting department: Chen Yi

Balance sheet of the parent company

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 212,373,240.12 40,302,891.54 Trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable 9,283,615.62 7,732,973.43

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Receivables Financing

Prepayments 78,416.24 116,286.49 Other receivables 73,981,020.86 112,778,453.95 Including: interest receivable

Dividends receivable

Inventory 1,128,724.99 3,415,957.04

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 1,075,426.95 19,464.94 Total current assets 297,920,444.78 164,366,027.39 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 100,054,177.20 60,973,137.30 Other equity instrument investments

Other non-current financial assets 100,000,000.00 Investment real estate

Fixed assets 331,492.12 503,938.67 Construction in progress

productive biological assets

oil and gas assets

Right-of-use assets 539,207.58 1,077,332.55 Intangible assets 56,189.04 65,903.40

Among them: data resources

development expenditure

Among them: data resources

goodwill

Long-term deferred expenses 819,850.86 1,205,108.34 Deferred income tax assets 49,479.64 Other non-current assets

Total non-current assets 101,800,916.80 163,874,899.90 Total assets 399,721,361.58 328,240,927.29 Current liabilities:

short term borrowing

Trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 629,796.05 899,959.60 Advance payments

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Contract liabilities 2,117,867.34 5,044,247.79 Employee benefits payable 3,145,746.31 414,321.62 Taxes payable 168,332.22 480,192.37 Other payables 97,693,650.01 19,825,105.65 of which: interest payable

Dividends payable 931,102.81 931,102.81 Liabilities held for sale

Non-current liabilities due within one year 306,401.33 372,589.31 Other current liabilities 22,984.00 655,752.21 Total current liabilities 104,084,777.26 27,692,168.55 Non-current liabilities:

long term borrowing

bonds payable

Among them: preferred shares

perpetual bond

Lease liabilities 396,882.61 902,661.80 Long-term payables

Long-term employee benefits payable

Estimated liabilities

deferred income

Deferred income tax liability

Other non-current liabilities

Total non-current liabilities 396,882.61 902,661.80 Total liabilities 104,481,659.87 28,594,830.35 Owners’ equity:

Share capital 330,023,098.00 330,023,098.00 Other equity instruments

Among them: preferred shares

perpetual bond

Capital reserve 327,662,045.08 327,662,045.08 Less: treasury shares

other comprehensive income

special reserve

Surplus reserve 34,545,734.18 34,545,734.18 Undistributed profits -396,991,175.55 -392,584,780.32 Total owners’ equity 295,239,701.71 299,646,096.94 Total liabilities and owners’ equity 399,721,361.58 328,240,927.29

Consolidated income statement

Unit: Yuan

Project 2025 2024

Total operating income 415,939,732.49 134,447,796.85 Including: operating income 415,939,732.49 134,447,796.85 Interest income

Premiums earned

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Fee and commission income

Total operating costs 403,227,245.62 137,824,949.69 Including: operating costs 324,142,778.16 43,808,006.11 Interest expenses

Handling fees and commission expenses

surrender deposit

Net compensation expenses

Net withdrawal of reserves for insurance liability contracts

policy dividend payout

Reinsurance cost

Taxes and surcharges 3,313,504.18 1,230,450.71 Sales expenses 22,130,617.15 30,815,965.99 Management expenses 44,274,472.42 52,516,614.30 Research and development expenses 7,662,930.35 9,692,428.61Financial expenses 1,702,943.36 -238,516.03 Including: Interest expenses 2,587,480.62 1,462,451.13

Interest income 1,130,084.12 2,026,910.01 plus: other income 16,445,840.56 1,581,972.50 investment income (losses are filled in with "-"

7,874,289.70 3,689,457.92 columns)

Of which: for associates and joint ventures

-2,731,360.17 Enterprise investment income

Measured at amortized cost

Income from derecognition of financial assets

Exchange gains (losses are filled in with "-"

column)

Net exposure hedging gain (loss calculated as

Fill in the column with "-" sign)

Gains from changes in fair value (losses calculated as

-165,128.00 -6,629.00 (Fill in “-”)

Credit impairment losses (losses are marked with "-"

-14,286,018.60 -22,386,152.87 fill in the column)

Asset impairment losses (losses are marked with "-"

-2,538,451.19 -471,202.67 fill in the column)

Asset disposal income (losses are marked with "-"

4,854.13 155,702.85 (please fill in the column)

3. Operating profit (loss is filled in with "-"

20,047,873.47 -20,814,004.11 columns)

Add: Non-operating income 509,972.29 212.71 Less: Non-operating expenses 835,234.22 37,815.78

4. Total profit (total loss is marked with "-"

19,722,611.54 -20,851,607.18 fill in the column)

Less: Income tax expenses 1,670,331.45 3,073,995.13

5. Net profit (net loss is filled in with "-"

18,052,280.09 -23,925,602.31 columns)

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Classification by business continuity

Net profit from continuing operations (net loss divided by

18,052,280.09 -23,925,602.31 (Fill in “-”)

Net profit from discontinued operations (net loss equal to

Fill in the column with "-" sign)

(2) Classification according to ownership ownership

Net profit attributable to shareholders of the parent company 28,828,686.12 -19,846,018.35
Profit and loss of minority shareholders -10,776,406.03 -4,079,583.96

6. Net amount of other comprehensive income after tax

Other comprehensive income attributable to owners of the parent company

net of tax

(1) Others that cannot be reclassified into profit or loss

Comprehensive income

Remeasure changes in defined benefit plans

Others that cannot be transferred to profit or loss under the equity method

Comprehensive income

Fair value of other equity instrument investments

change

Fair value of the company’s own credit risk

change

5.Others

(2) Other comprehensive items that will be reclassified into profit or loss

combined income

Other comprehensive items that can be transferred to profits and losses under the equity method

combined income

Changes in fair value of other debt investments
Financial assets are reclassified into other comprehensive

Amount of combined income

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements

7.Others

Other comprehensive income attributable to minority shareholders

net of tax

Total comprehensive income 18,052,280.09 -23,925,602.31 Total comprehensive income attributable to owners of the parent company

28,828,686.12 -19,846,018.35 amount

Total comprehensive income attributable to minority shareholders -10,776,406.03 -4,079,583.96

8. Earnings per share

(1) Basic earnings per share 0.09 -0.06

(2) Diluted earnings per share 0.09 -0.06 If a business merger under the same control occurs in this period, the net profit realized by the merged party before the merger is: 0.00 yuan, and the net profit realized by the merged party in the previous period is: 0.00 yuan.

Legal representative: Yang Yun Person in charge of accounting work: Lin Pengbin Person in charge of accounting department: Chen Yi

Income statement of the parent company

Unit: Yuan

Project 2025 2024

Operating income 14,392,301.65 8,396,624.97

Less: Operating costs 2,097,106.53 353,527.59

Taxes and surcharges 145,378.24 362,375.16

Selling expenses 34,990.78

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Management expenses 12,749,986.06 13,281,211.80

R&D expenses

Financial expenses -563,027.25 -415,869.34

Including: interest expense 61,091.90 643,326.87

Interest income 629,477.71 1,068,413.34

Add: other income 9,634,234.50 33,850.01

Investment income (losses are filled in with "-"

-12,916,872.44 5,594,383.55 columns)

Including: Investment income from associates and joint ventures

Income from derecognition of financial assets measured at amortized cost (losses are listed with a “-” sign)

Net exposure hedging gain (loss calculated as

Fill in the column with "-" sign)

Gains from changes in fair value (losses calculated as

Fill in the column with "-" sign)

Credit impairment losses (losses are marked with "-"

-977,691.29 -24,501.05 fill in the column)

Asset impairment losses (losses are listed with "-")

Asset disposal income (losses are listed with "-")

2. Operating profit (loss is filled in with "-"

-4,332,461.94 419,112.27 columns)

Add: non-operating income 22,353.68 0.01

Less: Non-operating expenses 46,807.33 39.31

Total profits (total losses are marked with “-”

-4,356,915.59 419,072.97 fill in the column)

Less: Income tax expense 49,479.64 -307.52

4. Net profit (net loss is filled in with "-"

-4,406,395.23 419,380.49 columns)

(1) Net profit from continuing operations (net loss divided by

-4,406,395.23 419,380.49 (Fill in “-”)

(2) Net profit from discontinued operations (net loss is listed with "-")

5. Net amount of other comprehensive income after tax

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

Remeasure the changes in defined benefit plan
Other comprehensive income that cannot be transferred to profit or loss under the equity method
Changes in fair value of other equity instrument investments
Changes in the fair value of the company’s own credit risk

5.Others

(2) Other comprehensive income that will be reclassified into profit and loss

Other comprehensive items that can be transferred to profits and losses under the equity method

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

combined income

Changes in fair value of other debt investments
Financial assets are reclassified into other comprehensive

Amount of combined income

Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements

7.Others

Total comprehensive income -4,406,395.23 419,380.49

7. Earnings per share

(1) Basic earnings per share

(2) Diluted earnings per share

Consolidated cash flow statement

Unit: Yuan

Project 2025 2024

1. Cash flow generated from operating activities:

Cash received from selling goods and providing services 277,578,602.20 230,653,967.30 Net increase in customer deposits and deposits from banks

Net increase in borrowing from the central bank

Net increase in borrowing funds from other financial institutions

Cash received from premiums from the original insurance contract

Net cash received from reinsurance business

Net increase in policyholders’ savings and investment funds

Cash collected from interest, fees and commissions

Net increase in borrowing funds

Net increase in repurchase business funds

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

Tax refunds received 3,190,510.00 184,688.22 Other cash received related to operating activities 19,303,835.21 11,168,978.84 Subtotal of cash inflows from operating activities 300,072,947.41 242,007,634.36 Cash paid for purchasing goods and receiving services 313,648,673.77 126,094,241.44

Net increase in loans and advances to customers

Net increase in deposits with central banks and inter-banks

Cash used to pay compensation from the original insurance contract

Net increase in lending funds

Cash payments for interest, fees and commissions

Cash payment for policy dividends

Cash paid to and for employees 58,498,525.65 70,218,101.14 Various taxes paid 23,669,544.11 10,896,134.08 Other cash paid related to operating activities 19,991,551.39 30,005,574.85 Subtotal of cash outflows from operating activities 415,808,294.92 237,214,051.51 Net cash flow generated from operating activities -115,735,347.51 4,793,582.85

2. Cash flow generated from investing activities:

Cash received from recovery of investment 278,000,000.00 192,907,473.68 Cash received from investment income 4,080,006.71 5,594,383.55 Disposal of fixed assets, intangible assets and other long-term assets

17,500.00 Net cash amount recovered from assets in period 1,471.81

Received from disposal of subsidiaries and other business units

net cash

Other cash received related to investing activities 2,526,523.35

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Subtotal of cash inflows from investing activities 282,097,506.71 201,029,852.39 Purchase and construction of fixed assets, intangible assets and other long-term assets

5,119,160.30 18,262,796.78 Cash paid for assets

Cash paid for investment 178,000,000.00 291,100,000.00 Net increase in pledged loans

Obtain payment from subsidiaries and other business units

61,231,129.89

net cash

Cash payments related to other investment activities 10,861,942.68

Subtotal of cash outflows from investing activities 255,212,232.87 309,362,796.78 Net cash flow generated from investing activities 26,885,273.84 -108,332,944.39

3. Cash flow generated from financing activities:

Cash received from investment 1,250,000.00

Among them: subsidiaries absorb investment income from minority shareholders

1,250,000.00

Cash arrived

Cash received from borrowings 22,300,000.00 18,000,000.00 Cash received from other financing activities 246,711,744.13

Subtotal of cash inflows from financing activities 270,261,744.13 18,000,000.00 Cash paid to repay debts 33,515,000.00 36,000,000.00

Distribution of dividends, profits or repayment of interest payments

3,927,652.33 931,456.23 cash

Including: shares paid by subsidiaries to minority shareholders

1,562,500.00 19,958.12 Profit, profit

Cash payments related to other financing activities 4,537,078.65 163,977,151.29 Subtotal cash outflows from financing activities 41,979,730.98 200,908,607.52 Net cash flow generated from financing activities 228,282,013.15 -182,908,607.52

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

-61.29 40.59 impact

Net increase in cash and cash equivalents 139,431,878.19 -286,447,928.47 plus: opening balance of cash and cash equivalents 207,333,146.93 493,781,075.40
Balance of cash and cash equivalents at the end of the period 346,765,025.12 207,333,146.93
Cash flow statement of the parent company

Unit: Yuan

Project 2025 2024

1. Cash flow generated from operating activities:

Cash received from selling goods and providing services 9,275,059.00 14,808,173.83 Tax refunds received

Other cash received related to operating activities 139,976,103.85 40,705,708.12 Subtotal of cash inflows from operating activities 149,251,162.85 55,513,881.95 Cash paid for purchasing goods and receiving services 42,167.78 3,708,190.99 Cash paid to and for employees 5,485,511.56 8,908,194.22 Various taxes paid 1,513,200.40 765,906.02 Other cash paid related to operating activities 3,727,740.70 44,393,152.36 Subtotal of cash outflows from operating activities 10,768,620.44 57,775,443.59 Net cash flow generated from operating activities 138,482,542.41 -2,261,561.64

2. Cash flow generated from investing activities:

Cash received from recovery of investment 105,997,600.00 811,678.32 Cash received from investment income 6,635,087.66 5,594,383.55 Disposal of fixed assets, intangible assets and other long-term assets

Net cash received from period assets

Received from disposal of subsidiaries and other business units

net cash

Other cash received related to investing activities 74,156,111.10 Subtotal of cash inflows from investing activities 112,632,687.66 80,562,172.97

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Purchase and construction of fixed assets, intangible assets and other long-term

81,681.07 cash paid for assets

Cash paid for investment 78,624,900.00 102,966,721.00

Obtain payment from subsidiaries and other business units

net cash

Payment of other cash related to investing activities 33,238,800.00 Subtotal cash outflow from investing activities 78,624,900.00 136,287,202.07 Net cash flow generated from investing activities 34,007,787.66 -55,725,029.10

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowing 8,000,000.00

Other cash received related to financing activities

Subtotal of cash inflows from financing activities 8,000,000.00 Cash paid to repay debts 36,000,000.00 Paid to distribute dividends, profits or repay interest

677,410.10 cash

Payment of other cash related to financing activities 419,920.20 179,785,646.60 Subtotal cash outflow from financing activities 419,920.20 216,463,056.70 Net cash flow generated from financing activities -419,920.20 -208,463,056.70

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

-61.29 40.59 impact

Net increase in cash and cash equivalents 172,070,348.58 -266,449,606.85

Add: Balance of cash and cash equivalents at the beginning of the period 40,302,891.54 306,752,498.39

Balance of cash and cash equivalents at the end of the period 212,373,240.12 40,302,891.54
Consolidated statement of changes in owners’ equity

Amount of current period

Unit: Yuan

2025

Owner's equity attributable to parent company

all

minority

Item Other equity instruments Less: Other general undivided shareholder capital special surplus shareholders

Equity, preferred shares, permanent debts, other reserves, stock deposits, comprehensive collection

benefit

Reserves, public reserves, risk quasi-risks

Prepare

Distribution Profit Other Subtotal Equity Profit Total

330, 423, 34,5 237, 44,9 281,

550,

Previous year 023, 472, 45,7 095, 02,9 998,

946,

End of period 098. 870. 34.1 180. 27.2 107.

522.

Balance 00 01 8 02 2 24

add

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

him

330, 423, 34,5 - 237, 44,9 281, this year 023, 472, 45,7 550, 095, 02,9 998, beginning of the period 098. 870. 34.1 946, 180. 27.2 107.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Balance 00 01 8 522. 02 2 24

3.

This issue

increase or decrease

change

28,8 28,6 46,8 75,5Amount

172, 28,6 55,9 52,2 08,2 (minus

86.1 90.7 23.5 14.2 less

41 2 1 1 2 “－

"No.

fill in

column)

(a -

28,8 28,8 18,0) Comprehensive 10,7

28,6 28,6 52,2 combined 76,4

86.1 86.1 80.0Yizong 06.0

2 2 9 amount 3

(two

) place

- 59,1 59,0 holders

172, 172, 91,1 18,4Input

1. 29.5 34.1 and minus

41 41 4 3 little capital

Ben

1．

all

1,25 1,25 people voted

0,00 0,00 deposit

0.00 0.00Normal

Others

Equity

Tools

hold

bettors

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Ben

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pay

credited

all

rights

beneficial

Amount

- 57,9 57,7 4. 172, 172, 41,1 68,4Others 695. 695. 29.5 34.1

41 41 4 3 (Three - -) profit 1,56 1,56 Profit points 2,50 2,50 allocation 0.00 0.00

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

1． Withdrawal from surplus reserve

Withdraw general risk reserve

3． Distribution to owners - - (or 1,56 1,56 shares 2,50 2,50 shares) 0.00 0.00

4． Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves to capital (or share capital)

3． Surplus reserve to cover losses

4． Changes in defined benefit plans are carried forward and retained

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

benefit

Others

Comprehensive

income

carry forward

retain

income

6．

Others

(five

)Specialized

Xiang Chu

Prepare

1．

This issue

Extract

This issue

Use

(six

) its

him

330, 423, 34,5 265, 91,7 357,

522,

This issue 023, 300, 45,7 751, 55,1 506,

117,

End of period 098. 174. 34.1 170. 50.7 321.

836.

Balance 00 60 8 73 3 46

Amount of last period

Unit: Yuan

2024

Owner's equity attributable to parent company

all

Minority items Other equity instruments Less: Other general undivided equity capital Special surplus Shareholders’ equity Preferred shares First and permanent debt renewal Other public reserves Stock deposits Comprehensive collection

benefit

Reserves, public reserves, risk quasi-risks

Prepare

Distribution Profit Other Subtotal Equity Profit Total

330, 423, 34,5 256, 47,7 304,

531,

Previous year 023, 472, 45,7 941, 32,6 673,

100,

End of period 098. 870. 34.1 198. 69.8 868.

503.

Balance 00 01 8 37 9 26

Add:

accounting

policy

change

before

period difference

Wrong update

Right

its

him

330, 423, 34,5 - 256, 47,7 304, this year 023, 472, 45,7 531, 941, 32,6 673,

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Beginning of the period 098. 870. 34.1 100, 198. 69.8 868. Balance 00 01 8 503. 37 9 26

3.

This issue

increase or decrease

Changes - - -

Amount 19,8 19,8 22,6

2,82

(minus 46,0 46,0 75,7

9,74

Less than 18.3 18.3 61.0

2.67

"-5 5 2" number

fill in

column)

(a - - -

) Comprehensive 19,8 19,8 23,9

4,07

Total 46,0 46,0 25,6

9,58

Yi Zong 18.3 18.3 02.3

3.96

5 5 1

(two

) place

Those with 1,24 1,24 invested 9,84 9,84 plus minus 1.29 1.29 less capital

Ben

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all

1,25 1,25 people voted

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0.00 0.00Normal

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pay

credited

all

rights

beneficial

Amount

- 4．

158.Others

71 71 (three

) profit

profit points

Match

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

1． Withdrawal from surplus reserve

Withdraw general risk reserve

3． Distributions to owners (or shareholders)

4． Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves to capital (or share capital)

3． Surplus reserve to cover losses

4． Changes in defined benefit plans are carried forward and retained

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

benefit

Others

Comprehensive

income

carry forward

retain

income

6．

Others

(five

)Specialized

Xiang Chu

Prepare

1．

This issue

Extract

This issue

Use

(six

) its

him

330, 423, 34,5 237, 44,9 281,

550,

This issue 023, 472, 45,7 095, 02,9 998,

946,

End of period 098. 870. 34.1 180. 27.2 107.

522.

Balance 00 01 8 02 2 24

Statement of changes in owner’s equity of the parent company

Amount of current period

Unit: Yuan

2025

Other equity instruments All

Less: Other Undivided Items Capital Special Surplus Share Capital Preferred Perpetual Inventory Comprehensive Dividends Others Other Reserves Reserves Equity Partnership Debt Shares Income Profit

plan

330,0 327,6 34,54 299,6Previous year 392,5

23,09 62,04 5,734 46,09 End of period 84,78

8.00 5.08 .18 6.94 Balance 0.32

add

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

him

330,0 327,6 34,54 299,6This year 392,5

23,09 62,04 5,734 46,09 Beginning of the period 84,78

8.00 5.08 .18 6.94 Balance 0.32

Increases and decreases in the current period

-Amount

4,406 4,406 (minus

,395. ,395.Less than

23 23 Fill in the “-” sign

column)

-) Comprehensive

4,406 4,406 combined

,395. ,395.Yizong

23 23 amount

(2) Owner’s investment and capital reduction

1． Common stock invested by owners

Capital invested by other equity instrument holders

3． The amount of share-based payment included in owners’ equity

4． Others

(3) Profit distribution

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

1． Withdrawal from surplus reserve

Distributions to owners (or shareholders)

3． Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves to capital (or share capital)

3． Surplus reserve to cover losses

4． Changes in defined benefit plans are carried forward to retained earnings

Other comprehensive income carried forward and retained

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

benefit

6． its

him

(five

)Specialized

Xiang Chu

Prepare

1． Ben

Periodic withdrawal

take

envoy

use

(six

) its

him

4. -

330,0 327,6 34,54 295,2This issue 396,9

23,09 62,04 5,734 39,70End of period 91,17

8.00 5.08 .18 1.71 Balance 5.55

Amount of last period

Unit: Yuan

2024

Other equity instruments All

Less: Others not divided

Items Capital Special Surplus Owners' Rights Equity Priority Perpetual Inventory Comprehensive Dividends Others Other Reserves Reserves Equity Partnership Debt Shares Income Profit

plan

1. -

330,0 327,6 34,54 299,2Previous year 393,0

23,09 62,04 5,734 26,71 End of period 04,16

8.00 5.08 .18 6.45Balance 0.81

add

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

him

2. -

330,0 327,6 34,54 299,2This year 393,0

23,09 62,04 5,734 26,71 Beginning of the period 04,16

8.00 5.08 .18 6.45Balance 0.81

3.

This issue

419,3 419,3 increase or decrease

80.49 80.49Change

Amount

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(Reduce the number of columns filled with "-")

(1) Comprehensive

419,3 419,3 combined

80.49 80.49 Total profit

(2) Owner’s investment and capital reduction

1． Common stock invested by owners

Capital invested by other equity instrument holders

3． The amount of share-based payment included in owners’ equity

4． Others

(3) Profit distribution

1． Withdrawal from surplus reserve

To the owner (or shareholder)

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

distribution

3． Others

(4) Internal carryover of owners’ equity

1． Conversion of capital reserves to capital (or share capital)

Conversion of surplus reserves to capital (or share capital)

3． Surplus reserve to cover losses

4． Changes in defined benefit plans are carried forward to retained earnings

Other comprehensive income carried forward to retained earnings

6． Others

(5) Special reserves

1． This issue mentions

The full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd.

envoy

use

(six

) its

him

4. -

330,0 327,6 34,54 299,6This issue 392,5

23,09 62,04 5,734 46,09 End of period 84,78

8.00 5.08 .18 6.94 Balance 0.32

3. Basic situation of the company

Nanhua Biopharmaceutical Co., Ltd. (hereinafter referred to as the "Company" or the "Company") was registered and established on October 18, 1991. Its current headquarters is located on the 3rd floor of Building B1, Lugu Science and Technology Innovation and Entrepreneurship Park, No. 1698 Yuelu West Avenue, High-tech Zone, Changsha City.

The company and its subsidiaries (collectively referred to as the "Group") are mainly engaged in the provision of testing, storage and custody services for human cells, sales of beauty purifiers, production and sales of lithium carbonate, and scrap steel processing and sales.

This financial statement has been approved for issuance by the company's board of directors on April 28, 2026.

4. Basis for preparation of financial statements

Basics of preparation

The Group's financial statements are based on the going concern assumption, based on actual transactions and events, and in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" issued by the Ministry of Finance (issued by Ministry of Finance Order No. 33 and revised by Ministry of Finance Order No. 76), promulgated and revised on or after February 15, 2006. Accounting standards, interpretations of accounting standards for enterprises and other relevant regulations (hereinafter collectively referred to as "accounting standards for enterprises"), as well as the preparation of the disclosure provisions of the China Securities Regulatory Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial Reports (2023 Revision)".

In accordance with the relevant provisions of the Accounting Standards for Business Enterprises, the Group's accounting is based on the accrual basis. Except for certain financial instruments, these financial statements are measured on the basis of historical cost. If an asset is impaired, corresponding impairment provisions will be made in accordance with relevant regulations.

Continued operations

The Company has no events or circumstances that would cause significant doubts about its ability to continue operating within 12 months from the end of the reporting period.

5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Based on the actual production and operation characteristics and the relevant corporate accounting standards, the Group has formulated a number of specific accounting policies and accounting estimates for transactions and events such as revenue recognition. For details, please see the descriptions of "Revenue" in Note 5.32.

Statement on compliance with corporate accounting standards

The financial statements prepared by the company comply with the requirements of the Accounting Standards for Business Enterprises and truly and completely reflect the financial status of the company and the Group as of December 31, 2025, as well as the operating results and cash flow in 2025 and other relevant information. In addition, the financial statements of the Company and the Group comply in all material respects with the disclosure requirements for financial statements and their notes in the "Information Disclosure and Preparation Rules No. 15 for Companies that Offer Securities to the Public - General Provisions on Financial Reports" revised in 2023 by the China Securities Regulatory Commission.

Accounting period

The Group's accounting period is divided into annual and interim periods. An accounting period refers to a reporting period shorter than a complete accounting year. The Group's accounting year adopts the Gregorian calendar year, that is, from January 1 to December 31 each year.

Business cycle

The normal operating cycle refers to the period from the purchase of assets for processing by the Group to the realization of cash or cash equivalents. The Group uses 12 months as an operating cycle and uses it as the liquidity classification standard for assets and liabilities.

Accounting standard currency

RMB is the currency of the main economic environment in which the Company and its domestic subsidiaries operate. The Company and its domestic subsidiaries use RMB as the functional currency for accounting. The currency used by the Group in preparing these financial statements is RMB.

Determination method and selection basis of importance standards

☑Applicable □Not applicable

Project Materiality Criteria

Important individual accounts receivable with provision for bad debts: The individual amount exceeds 0.3% of total assets

Important write-off accounts receivable: individual amount exceeds 0.3% of total assets

Important prepayments aged more than 1 year. The individual amount exceeds 0.5% of total assets.

Important other receivables for which bad debt provisions are individually provided The individual amount exceeds 0.3% of total assets

Important accounts payable aged more than 1 year, the individual amount exceeds 0.5% of total assets

Important other payables aged more than 1 year. The individual amount exceeds 0.5% of the total assets.

Important contract liabilities aged more than 1 year, the individual amount exceeds 0.5% of total assets

Important cash flow from investing activities: The amount of a single item exceeds 10% of total assets

Full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd. Important subsidiaries and non-wholly owned subsidiaries with total assets exceeding 15% of the group’s total assets

Associates whose total profits exceed 15% of the group's total profits are determined to be important associates

of joint ventures.

Important external investments with a single amount exceeding 10% of total assets are determined to be important post-balance sheet events

Post-balance sheet events.

Determine other important matters if a single litigation matter is expected to have an impact of more than 3 million yuan on the company's financial performance

for other important matters.

Accounting treatment methods for business combinations under the same control and those not under the same control

Business merger refers to a transaction or event that combines two or more separate enterprises to form a reporting entity. Business mergers are divided into business combinations under the same control and business combinations not under the same control.

(1) Business merger under common control

The enterprises participating in the merger are ultimately controlled by the same party or the same parties before and after the merger, and the control is not temporary. It is a business merger under the same control. In the case of a business merger under the same control, the party that obtains control over other companies participating in the merger on the merger date is the merging party, and the other companies participating in the merger are the merged parties. The merger date refers to the date when the merging party actually obtains control over the merged party.

The assets and liabilities acquired by the merging party are measured according to their book value on the date of merger. The difference between the book value of the net assets obtained by the merging party and the book value of the merger consideration paid (or the total face value of the shares issued) is adjusted to the capital reserve (share premium); if the capital reserve (share premium) is insufficient to offset it, the retained earnings are adjusted.

All direct expenses incurred by the merging party for the business combination shall be included in the current profits and losses when incurred.

(2) Business merger not under common control

If the enterprises participating in the merger are not ultimately controlled by the same party or the same parties before and after the merger, it is a business merger not under the same control. For a business combination not under common control, the party that obtains control over other companies participating in the merger on the acquisition date is the purchaser, and the other companies participating in the merger are the purchased parties. The purchase date refers to the date when the purchaser actually obtains control over the purchased party.

For business combinations not under common control, the cost of the combination includes the assets paid by the purchaser on the acquisition date to obtain control of the purchased party, liabilities incurred or assumed, and the fair value of equity securities issued. Intermediary fees such as auditing, legal services, evaluation consulting, and other management fees incurred for the business combination are included in the current profits and losses when incurred. The transaction costs of equity securities or debt securities issued by the purchaser as consideration for the merger are included in the initial recognition amount of the equity securities or debt securities. The contingent consideration involved is included in the merger cost based on its fair value on the purchase date. If new or further evidence of the existing conditions on the purchase date arises within 12 months after the purchase date and the contingent consideration needs to be adjusted, the consolidated goodwill will be adjusted accordingly. The merger costs incurred by the purchaser and the identifiable net assets obtained in the merger are measured at the fair value on the acquisition date. The difference between the merger cost and the fair value of the acquiree's identifiable net assets on the acquisition date is recognized as goodwill. If the merger cost is less than the fair value share of the acquiree's identifiable net assets acquired in the merger, the acquiree's identifiable assets,

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The fair value of liabilities and contingent liabilities and the measurement of merger costs are reviewed. After the review, if the merger cost is still less than the fair value share of the acquiree's identifiable net assets obtained in the merger, the difference is included in the current profit and loss.

If the deductible temporary difference obtained by the purchaser from the purchased party is not recognized on the purchase date because it does not meet the recognition conditions of deferred income tax assets, within 12 months after the purchase date, if new or further information is obtained indicating that the relevant conditions on the purchase date have already existed, it is expected that the purchased party will be able to If the economic benefits brought about by offsetting the temporary differences can be realized, the relevant deferred income tax assets will be recognized, and the goodwill will be reduced at the same time. If the goodwill is insufficient to offset, the difference will be recognized as current profit and loss; except for the above circumstances, if the deferred income tax assets related to the business combination are recognized, they will be included in the current profit and loss.

For business mergers not under common control that are realized in stages through multiple transactions, according to the "Notice of the Ministry of Finance on Issuing the Interpretation No. 5 of Accounting Standards for Business Enterprises" (Financial Accounting [2012] No. 19) and the "Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements", the judgment standard for "package transactions" in Article 51 (see this note

5.7 "Control Judgment Standards and Preparation Methods of Consolidated Financial Statements" (2)), determine whether the multiple transactions belong to a "package transaction". If it is a "package transaction", the accounting treatment shall be carried out with reference to the descriptions in the previous paragraphs of this part and Note 5.18 "Long-term Equity Investment"; if it is not a "package transaction", the relevant accounting treatment shall be carried out by distinguishing between individual financial statements and consolidated financial statements:

In individual financial statements, the sum of the book value of the equity investment in the purchased party held before the purchase date and the new investment cost on the purchase date is the initial investment cost of the investment; if the equity investment in the purchased party held before the purchase date involves other comprehensive income, when the investment is disposed of, the other comprehensive income related to it will be accounted for on the same basis as the purchased party directly disposes relevant assets or liabilities.

In the consolidated financial statements, the equity of the purchased party held before the purchase date is remeasured according to the fair value of the equity on the purchase date, and the difference between the fair value and its book value is included in the investment income of the current period; if the equity of the purchased party held before the purchase date involves other comprehensive income, the other comprehensive income related to it shall be accounted for on the same basis as the direct disposal of relevant assets or liabilities by the purchased party.

Judgment standards for control and preparation methods of consolidated financial statements

(1) Judgment criteria for control

The scope of consolidation in consolidated financial statements is determined on the basis of control. Control means that the Group has power over the investee, enjoys variable returns by participating in the investee's relevant activities, and has the ability to use its power over the investee to affect the amount of returns. Among them, the Group's current rights enable the Group to currently have the ability to dominate the relevant activities of the investee, regardless of whether the Group actually exercises the right, it is deemed to have power over the investee; if the returns obtained by the Group from the investee may change with the performance of the investee, it is deemed to enjoy variable returns; if the Group exercises decision-making power as the main responsible person, it is deemed that the Group has the ability to use its power over the investee to affect the amount of returns. The scope of consolidation includes the company and all its subsidiaries. Subsidiaries refer to entities controlled by the Group.

The Group makes a judgment on whether to control the investee based on comprehensive consideration of all relevant facts and circumstances. Relevant facts and circumstances mainly include: the purpose of the establishment of the investee; the relevant activities of the investee and how to make decisions on related activities; whether the rights enjoyed by the Group currently enable the Group to dominate the relevant activities of the investee; whether the Group enjoys variable returns by participating in the relevant activities of the investee; whether the Group has the ability to use its rights over the investee.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

influence the amount of returns; the relationship between the Group and other parties, etc. Once changes in relevant facts and circumstances lead to changes in the relevant elements involved in the above definition of control, the Group will reassess.

(2) Method of preparing consolidated financial statements

The Group begins to include the subsidiary in the scope of consolidation from the date it obtains actual control over the net assets and production and operation decisions of the subsidiary; it ceases to be included in the scope of consolidation from the date it loses actual control. For subsidiaries disposed of, the operating results and cash flows before the date of disposal have been appropriately included in the consolidated income statement and consolidated cash flow statement; for subsidiaries disposed of in the current period, the opening balance of the consolidated balance sheet will not be adjusted. For subsidiaries added through business combinations not under common control, their operating results and cash flows after the acquisition date have been appropriately included in the consolidated income statement and consolidated cash flow statement, and the opening numbers and comparative numbers of the consolidated financial statements will not be adjusted. For subsidiaries added through business mergers under common control and merged parties under absorption mergers, their operating results and cash flows from the beginning of the current period to the date of merger have been appropriately included in the consolidated income statement and consolidated cash flow statement, and the comparative figures of the consolidated financial statements have been adjusted at the same time.

When preparing consolidated financial statements, if the accounting policies or accounting periods adopted by a subsidiary and the Company are inconsistent, necessary adjustments will be made to the financial statements of the subsidiary in accordance with the Company's accounting policies and accounting periods. For subsidiaries acquired through business combinations not under common control, their financial statements will be adjusted based on the fair value of the identifiable net assets on the date of acquisition.

All significant intra-group balances, transactions and unrealized profits are eliminated when preparing the consolidated financial statements.

The portion of the subsidiary's shareholders' equity and net profit and loss for the current period that is not owned by the company is separately presented as minority shareholders' equity and minority shareholders' profit and loss in the consolidated financial statements under shareholders' equity and net profit. The share of minority shareholders' equity in the current period's net profits and losses of a subsidiary is listed as "minority shareholders' profits and losses" under the net profit item in the consolidated income statement. If the losses of a subsidiary shared by minority shareholders exceed the minority shareholders' share of the subsidiary's opening shareholders' equity, the minority shareholders' equity will still be offset.

When control over an original subsidiary is lost due to the disposal of part of the equity investment or other reasons, the remaining equity is remeasured according to its fair value on the date of loss of control. The difference between the sum of the consideration obtained for disposing of the equity and the fair value of the remaining equity, minus the share of the original subsidiary's net assets calculated continuously from the date of purchase based on the original shareholding ratio, shall be included in the investment income in the period when control is lost. Other comprehensive income related to the equity investment in the original subsidiary will be accounted for on the same basis as the subsidiary's direct disposal of relevant assets or liabilities when control is lost. Thereafter, the remaining equity will be subsequently measured in accordance with relevant regulations such as "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment" or "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments". For details, see Note 5.18 "Long-term Equity Investment" or Note 5.11 "Financial Instruments".

If the Group disposes of its equity investment in a subsidiary step by step through multiple transactions until it loses control, it needs to distinguish whether each transaction in which it disposes its equity investment in the subsidiary until it loses control is a package deal. The terms, conditions and economic impact of various transactions for the disposal of equity investments in subsidiaries meet one or more of the following circumstances, which usually indicate that multiple transactions should be accounted for as a package deal: ① These transactions are entered into at the same time or with consideration of each other's influence; ② Only these transactions as a whole can achieve a complete business result; ③ The occurrence of a transaction depends on the occurrence of at least one other transaction; ④ A transaction is uneconomical when viewed alone, but it is economical when considered together with other transactions. If it does not belong to a package deal, each transaction will be accounted for in accordance with the applicable principles of "partial disposal of long-term equity investment in a subsidiary without losing control" (see Note V. 18 "Long-term equity investment" (2)④ for details) and "loss of control over the original subsidiary due to disposal of part of the equity investment or other reasons" (see the previous paragraph for details). Disposal of equity interests in subsidiaries

Full text of the 2025 Annual Report of Nanhua Biopharmaceutical Co., Ltd. If the transactions involved in the investment until the loss of control are a package deal, each transaction will be accounted for as a transaction in which the subsidiary is disposed of and control is lost; however, the difference between the price of each disposal and the share of the net assets of the subsidiary corresponding to the disposal investment before the loss of control is recognized as other comprehensive income in the consolidated financial statements, and is transferred to the profits and losses of the current period when control is lost.

Classification of joint arrangements and accounting treatment of joint operations
Joint arrangements are divided into joint operations and joint ventures.
When the company is a joint venture party, the following items related to the interest share in the joint operation are recognized:

(1) Recognize assets held individually, and recognize assets held jointly based on holding shares;

(2) Recognize liabilities borne individually and liabilities borne jointly based on holding shares;

(3) Recognize the income generated from the sale of the company’s share of joint operating output;

(4) The income generated by the joint operation from the sale of assets is recognized based on the company’s share;

(5) Recognize the expenses incurred individually, and recognize the expenses incurred in joint operations based on the company’s share.

Determination standards for cash and cash equivalents

The Group's cash and cash equivalents include cash on hand, deposits that can be used for payment at any time, and investments held by the Group that have short maturities (generally due within three months from the date of purchase), are highly liquid, are easily convertible into known amounts of cash, and have little risk of changes in value.

Foreign currency business and foreign currency statement conversion

(1) Method for determining the conversion exchange rate when foreign currency transactions occur

When the Group's foreign currency transactions are initially recognized, they are converted into the recording currency amount based on the spot exchange rate on the transaction date (usually refers to the central parity of the day's foreign exchange quotation announced by the People's Bank of China, the same below).

(2) The conversion method and the treatment method of exchange gains and losses adopted for foreign currency monetary items on the balance sheet date

On the balance sheet date, foreign currency monetary items are translated using the spot exchange rate on the balance sheet date. The resulting exchange differences, except for: ① The exchange differences arising from special foreign currency borrowings related to the acquisition and construction of assets that qualify for capitalization are capitalized as borrowing costs. ②For foreign currency monetary items classified as measured at fair value and whose changes are included in other comprehensive income, except for the exchange differences arising from changes in other book balances other than amortized costs (including impairment), which are included in other comprehensive income, they are all included in the current profit and loss.

Foreign currency non-monetary items measured at historical cost are still measured using the amount in the recording currency converted at the spot exchange rate on the date of the transaction. Foreign currency non-monetary items measured at fair value are converted using the spot exchange rate on the date when the fair value is determined. The difference between the converted accounting functional currency amount and the original accounting functional currency amount is treated as a change in fair value (including exchange rate changes), and is included in the current profit and loss or recognized as other comprehensive income.

Financial instruments

A financial asset or financial liability is recognized when the Group becomes a party to a financial instrument contract.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Classification, recognition and measurement of financial assets

Based on the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the Group divides financial assets into: financial assets measured at amortized cost; financial assets measured at fair value with changes included in other comprehensive income; financial assets measured at fair value with changes included in current profits and losses.

Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss; for other types of financial assets, the relevant transaction costs are included in the initial recognition amount. For accounts receivable or notes receivable arising from the sale of products or provision of services that do not include or take into account significant financing components, the amount of consideration that the Group is expected to be entitled to receive shall be deemed as the initial recognition amount.

①Financial assets measured at amortized cost

The Group's business model for managing financial assets measured at amortized cost is to collect contractual cash flows as the goal, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements, that is, the cash flows generated on a specific date are only payments of principal and interest based on the outstanding principal amount. The Group adopts the effective interest rate method for subsequent measurement of such financial assets at amortized cost, and gains or losses arising from amortization or impairment are included in the current profits and losses.

②Financial assets measured at fair value and changes included in other comprehensive income

The Group's business model for managing such financial assets aims at both collecting contractual cash flows and selling them, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements. The Group measures such financial assets at fair value and changes in them are included in other comprehensive income, but impairment losses or gains, exchange gains and losses and interest income calculated based on the effective interest method are included in the current profit and loss.

In addition, the Group designates certain non-trading equity instrument investments as financial assets measured at fair value through other comprehensive income. The Group includes relevant dividend income from such financial assets in the current profit and loss, and changes in fair value are included in other comprehensive income. When the financial asset is derecognised, the accumulated gains or losses previously included in other comprehensive income will be transferred from other comprehensive income to retained earnings and will not be included in the current profit or loss.

③Financial assets measured at fair value and changes included in current profits and losses

The Group classifies financial assets other than the above-mentioned financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income as financial assets measured at fair value through profit or loss for the current period. In addition, at the time of initial recognition, in order to eliminate or significantly reduce accounting mismatches, the Group designated some financial assets as financial assets measured at fair value and whose changes are included in current profits and losses. For such financial assets, the Group uses fair value for subsequent measurement, and changes in fair value are included in the current profit and loss.

(2) Classification, recognition and measurement of financial liabilities

Financial liabilities are classified upon initial recognition into financial liabilities at fair value through profit or loss and other financial liabilities. For financial liabilities measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other financial liabilities are included in their initial recognition amount.

①Financial liabilities measured at fair value and changes included in current profits and losses

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Financial liabilities at fair value through profit or loss include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as fair value through profit or loss upon initial recognition.

Trading financial liabilities (including derivatives belonging to financial liabilities) are subsequently measured at fair value. Except for those related to hedging accounting, changes in fair value are included in current profits and losses.

For a financial liability designated as a financial liability measured at fair value through profit or loss for the current period, changes in the fair value of this liability caused by changes in the Group's own credit risk are included in other comprehensive income. When the liability is derecognised, the accumulated changes in its fair value caused by changes in its own credit risk included in other comprehensive income are transferred to retained earnings. The remaining changes in fair value are included in the current profit and loss. If handling the impact of changes in the own credit risk of such financial liabilities in the above manner will cause or expand accounting mismatches in profit or loss, the Group will include all gains or losses from the financial liabilities (including the amount affected by changes in the enterprise's own credit risk) into the current profit and loss.

②Other financial liabilities

Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that do not meet the conditions for termination of recognition or continued involvement in the transferred financial assets, other financial liabilities are classified as financial liabilities measured at amortized cost, and are subsequently measured at amortized cost. Gains or losses arising from termination of recognition or amortization are included in the current profit and loss.

(3) Recognition basis and measurement method of financial asset transfer

Financial assets that meet one of the following conditions shall be derecognized: ① The contractual right to receive cash flows from the financial asset terminates; ② The financial asset has been transferred, and almost all the risks and rewards of the ownership of the financial asset are transferred to the transferee; ③ The financial asset has been transferred, and although the enterprise neither transfers nor retains almost all the risks and rewards of the ownership of the financial asset, it has given up control of the financial asset.

If an enterprise neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and does not give up control of the financial asset, the relevant financial assets will be recognized to the extent of its continued involvement in the transferred financial assets, and the relevant liabilities will be recognized accordingly. The degree of continued involvement in the transferred financial assets refers to the level of risk faced by the enterprise due to changes in the value of the financial assets.

If the overall transfer of financial assets meets the conditions for derecognition, the difference between the book value of the transferred financial assets and the sum of the consideration received for the transfer and the cumulative amount of changes in fair value originally included in other comprehensive income will be included in the current profit and loss.

If the partial transfer of financial assets meets the conditions for derecognition, the book value of the transferred financial assets will be apportioned between the derecognized and non-deactivated parts according to their relative fair values, and the difference between the sum of the consideration received due to the transfer and the cumulative amount of changes in fair value originally included in other comprehensive income that should be apportioned to the derecognized part and the apportioned aforementioned book amount shall be included in the current profit and loss.

When the Group sells financial assets with recourse, or endorses and transfers financial assets it holds, it needs to determine whether substantially all the risks and rewards of ownership of the financial assets have been transferred. If almost all the risks and rewards of the ownership of the financial asset have been transferred to the transferee, the financial asset will be derecognised; if almost all the risks and rewards of the ownership of the financial asset have been retained, the recognition of the financial asset will not be deactivated; if almost all the risks and rewards of the ownership of the financial asset have neither been transferred nor retained, the company will continue to judge whether the enterprise retains control over the asset, and perform accounting treatment according to the principles described in the previous paragraphs.

(4) Derecognition of financial liabilities

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If the current obligation of a financial liability (or part thereof) has been discharged, the Group shall terminate the recognition of the financial liability (or part thereof). The Group (borrower) signs an agreement with the lender to replace the original financial liability by assuming a new financial liability, and if the contract terms of the new financial liability are substantially different from the original financial liability, the original financial liability will be derecognised and a new financial liability will be recognized at the same time. If the Group makes substantial modifications to the contract terms of the original financial liability (or part thereof), it will derecognize the original financial liability and recognize a new financial liability in accordance with the modified terms.

If a financial liability (or part thereof) is derecognised, the Group will include the difference between its book value and the consideration paid (including non-cash assets transferred out or liabilities assumed) into the current profits and losses.

(5) Offset of financial assets and financial liabilities

When the Group has the legal right to offset the recognized amount of financial assets and financial liabilities, and the legal right is currently enforceable, and the Group plans to settle on a net basis or to realize the financial assets and pay off the financial liabilities at the same time, the financial assets and financial liabilities will be listed in the balance sheet as the net amount after offsetting each other. Otherwise, financial assets and financial liabilities are presented separately in the balance sheet and are not offset against each other.

(6) Recognition method of fair value of financial assets and financial liabilities

Fair value refers to the price that can be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. If there is an active market for a financial instrument, the Group uses the quoted price in the active market to determine its fair value. Quotes in active markets refer to prices that are easily obtained from exchanges, brokers, industry associations, pricing service agencies, etc. on a regular basis, and represent the prices of market transactions that actually occur in fair transactions. If there is no active market for a financial instrument, the Group uses valuation techniques to determine its fair value. Valuation techniques include reference to prices used in recent market transactions between parties who are familiar with the situation and voluntary transactions, reference to the current fair value of other financial instruments that are substantially the same, discounted cash flow methods and option pricing models, etc. When valuing, the Group adopts valuation techniques that are applicable under the current circumstances and supported by sufficient available data and other information, selects input values that are consistent with the characteristics of the assets or liabilities considered by market participants in transactions of related assets or liabilities, and gives priority to the use of relevant observable input values whenever possible. Non-inputable values are used when the relevant observable input values cannot be obtained or are impracticable to obtain.

(7) Equity instruments

Equity instruments are contracts that demonstrate ownership of the Group's residual interest in the assets after deducting all liabilities. The Group's issuance (including refinancing), repurchase, sale or cancellation of equity instruments is treated as a change in equity, and transaction costs related to equity transactions are deducted from equity. The Group does not recognize changes in the fair value of equity instruments.

If the Group's equity instruments distribute dividends (including "interest" generated by instruments classified as equity instruments) during their existence, they will be treated as profit distribution.

Notes receivable

The Group measures loss provisions for notes receivable based on an amount equivalent to the expected credit losses during the entire duration. Based on the credit risk characteristics of notes receivable, they are divided into different combinations:

Project Basis for determining combination

Bank Acceptance Bill The acceptor is a bank with less credit risk.

Commercial acceptance bills use the aging of commercial acceptance bills as a credit risk characteristic.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Accounts receivable

For accounts receivable that do not contain significant financing components, the Group measures loss provisions based on an amount equivalent to the expected credit losses during the entire duration.

For accounts receivable and lease receivables that contain significant financing components, the Group chooses to measure loss provisions based on whether their credit risk has increased significantly since initial recognition, and uses the amount of expected credit losses in the next 12 months or throughout the duration.

In addition to accounts receivable for individual assessment of credit risk, they are divided into different combinations based on their credit risk characteristics:

Item Basis for determining portfolio Method for measuring expected credit losses

With reference to historical credit loss experience, combined with the current situation and the prediction of future economic conditions, the accounts receivable aging combination and the expected credit loss rate comparison table are prepared to calculate the expected credit losses.

Refer to historical credit loss experience, combined with current conditions and future economic conditions Accounts receivable - consolidation scope

Forecasting the status of related party transactions within the company's consolidated scope, through the combination of default risk exposure and expected credit losses throughout the duration of the related parties

rate to calculate expected credit losses

Comparison table of aging portfolio and expected credit loss rate

Accounts receivable

Account age

Expected credit loss rate (%)

Within 1 year (inclusive, the same below) 1.00 1 to 2 years 6.00 2 to 3 years 15.00 3 to 4 years 40.00 4 to 5 years 70.00 More than 5 years 100.00

Other receivables

The Group measures impairment losses based on whether the credit risk of other receivables has increased significantly since initial recognition, and uses an amount equivalent to the expected credit losses in the next 12 months or the entire duration. In addition to other receivables whose credit risk is assessed individually, they are divided into different combinations based on their credit risk characteristics:

Item Basis for determining portfolio Method for measuring expected credit losses

With reference to historical credit loss experience, combined with the current situation and the prediction of future economic conditions, prepare a comparison table between the aging of other receivables and expected credit loss rates to calculate expected credit losses.

With reference to historical credit loss experience, combined with the current situation and predictions of future economic conditions, the company's consolidated scope

The portfolio of related parties within the scope of consolidation is measured through default risk exposure and expected credit losses in the next 12 months or throughout the duration of the current accounts.

Loss rate, calculate expected credit loss

Comparison table of aging portfolio and expected credit loss rate

Other receivables

Account age

Expected credit loss rate (%)

Within 1 year (inclusive, the same below) 1.00

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

1 to 2 years 6.00 2 to 3 years 15.00 3 to 4 years 40.00 4 to 5 years 70.00 More than 5 years 100.00

Contract assets

The Group lists the rights of the customer that have not paid the contract consideration, but the Group has fulfilled its performance obligations in accordance with the contract, and the right to receive payment from the customer is not unconditional (i.e. only depends on the passage of time) as contract assets in the balance sheet. Contract assets and contract liabilities under the same contract are presented on a net basis, and contract assets and contract liabilities under different contracts are not offset.

Method for determining expected credit losses on contract assets

Item Basis for determining portfolio Method for measuring expected credit losses

Contract assets - warranty based on historical credit loss experience, combined with current conditions and future economic conditions

Account aging forecast, calculate the financial portfolio through default risk exposure and expected credit loss rate throughout the duration.

expected credit losses

Comparison table of aging portfolio and expected credit loss rate

contract assets

Account age

Expected credit loss rate (%)

Within 1 year (inclusive, the same below) 1.00 1 to 2 years 6.00 2 to 3 years 15.00 3 to 4 years 40.00 4 to 5 years 70.00 More than 5 years 100.00

Inventory

(1) Inventory classification:

Inventories mainly include raw materials, work in progress, low-value consumables, goods in stock, goods shipped, etc.

(2) Valuation method for inventory acquisition and issue

Inventories are valued at actual cost when acquired, and inventory costs include purchase costs, processing costs and other costs. Prices are calculated using the weighted average method upon receipt and delivery. (3) Recognition of net realizable value of inventories and method of accruing provision for decline in value

Net realizable value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred to completion, estimated selling expenses and related taxes. When determining the net realizable value of inventories, it is based on the conclusive evidence obtained and the purpose of holding the inventories and the impact of events after the balance sheet date are also considered.

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On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value is lower than the cost, the inventory depreciation reserve is withdrawn. Inventory depreciation provisions are withdrawn based on the difference between the cost of a single inventory item and its net realizable value. For inventories with large quantities and low unit prices, inventory depreciation provisions are made based on inventory categories; for inventories that are related to product series produced and sold in the same region, have the same or similar end use or purpose, and are difficult to measure separately from other items, inventory depreciation provisions can be made on a consolidated basis.

After the provision for inventory depreciation is accrued, if the factors that previously caused the inventory value to be written down have disappeared, causing the net realizable value of the inventory to be higher than its book value, the amount of the inventory depreciation provision that was originally accrued will be reversed, and the amount reversed will be included in the current profit and loss.

(4) The inventory inventory system is a perpetual inventory system.

(5) Amortization method for low-value consumables and packaging materials

Low-value consumables and packaging are amortized according to the one-time amortization method when they are used.

Assets held for sale

(1) Held for sale

If the Group recovers its book value mainly through sale (including non-monetary asset exchange with commercial substance, the same below) rather than continued use of a non-current asset or disposal group, it will be classified as held for sale. The specific criteria are to meet the following conditions at the same time: a certain non-current asset or disposal group can be sold immediately under the current conditions according to the practice of selling such assets or disposal groups in similar transactions; the group has made a resolution on the sales plan and obtained a firm purchase commitment; the sale is expected to be completed within one year. Among them, a disposal group refers to a group of assets that are disposed of as a whole in a transaction through sale or other means, as well as the liabilities directly related to these assets transferred in the transaction. If the asset group or asset group combination to which the disposal group belongs has allocated the goodwill acquired in the business merger in accordance with the "Accounting Standards for Business Enterprises No. 8 - Asset Impairment", the disposal group shall include the goodwill allocated to the disposal group.

When the Group initially measures or re-measures and divides the assets into non-current assets and disposal groups held for sale on the balance sheet date, if the book value is higher than the net amount of the fair value minus the selling expenses, the book value will be written down to the net amount of the fair value minus the selling expenses. The amount of the write-down is recognized as an asset impairment loss and included in the current profit and loss. At the same time, a provision for impairment of the assets held for sale is made. For the disposal group, the recognized asset impairment loss is first deducted from the book value of the goodwill in the disposal group, and then deducted proportionally from the book value of various non-current assets in the disposal group that are subject to the measurement provisions of "Accounting Standards for Business Enterprises No. 42 - Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations" (hereinafter referred to as the "Hold for Sale Standards"). If the net amount of the fair value of the disposal group held for sale less the selling expenses increases on the subsequent balance sheet date, the previously written-down amount shall be restored and reversed within the amount of asset impairment loss recognized for non-current assets after being classified as held-for-sale and subject to the measurement provisions of the held-for-sale standards. The reversed amount shall be included in the current profit and loss, and According to the proportion of the book value of each non-current asset in the disposal group that is subject to the measurement requirements of the held-for-sale standards, except for goodwill, the book value is increased proportionally; the book value of goodwill that has been deducted, and the asset impairment losses recognized before the non-current assets are classified as held-for-sale categories are not reversed.

No depreciation or amortization is provided for non-current assets held for sale or non-current assets in the disposal group, and interest and other expenses on liabilities in the disposal group held for sale continue to be recognized.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

When a non-current asset or disposal group no longer meets the classification conditions of the held-for-sale category, the Group will no longer classify it as a held-for-sale category or remove the non-current assets from the held-for-sale disposal group, and measure it according to the lower of the following two: (1) The book value before being classified as a held-for-sale category, adjusted for the depreciation, amortization or impairment that would have been recognized if it was not classified as a held-for-sale category; (2) The recoverable amount.

(2) Termination of operations

Discontinued operations refer to components that meet one of the following conditions, can be separately distinguished and have been disposed of by the group or classified as held for sale: ① The component represents an independent main business or a separate main operating area; ② The component is part of an associated plan to dispose of an independent main business or an independent main operating area; ③ The component is a subsidiary acquired specifically for resale.

The Group separately presents the profit and loss from discontinued operations in the income statement, and the operating profits and losses such as impairment losses and reversal amounts from discontinued operations, as well as the disposal profits and losses, are presented as the profits and losses from discontinued operations.

Long-term equity investment

The long-term equity investment referred to in this section refers to the long-term equity investment in which the Group has control, joint control or significant influence on the invested unit. Long-term equity investments that the Group does not have control, joint control or significant influence over the investee are accounted for as financial assets measured at fair value through profit or loss for the current period. If they are non-trading, the Group may choose to designate them as financial assets measured at fair value through other comprehensive income at the time of initial recognition. For details of its accounting policies, see Note V. 11 "Financial Instruments".

Joint control refers to the group's shared control over an arrangement in accordance with relevant agreements, and decisions on relevant activities of the arrangement must be made with the unanimous consent of the parties sharing control. Significant influence means that the Group has the power to participate in decision-making on the financial and operating policies of the investee, but it is not able to control or jointly control the formulation of these policies with other parties.

(1) Determination of investment cost

For long-term equity investments obtained through a business combination under common control, the initial investment cost of the long-term equity investment shall be the share of the book value of the shareholders' equity of the merged party in the consolidated financial statements of the ultimate controlling party on the date of merger. The difference between the initial investment cost of long-term equity investment and the cash paid, non-cash assets transferred and the book value of debts assumed shall be adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings shall be adjusted. If the issuance of equity securities is used as the merger consideration, the share of the book value of the shareholders' equity of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date shall be used as the initial investment cost of the long-term equity investment, and the total face value of the shares issued shall be regarded as the share capital. The difference between the initial investment cost of the long-term equity investment and the total face value of the shares issued shall be adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings shall be adjusted. If the equity of the merged party under the same control is acquired step by step through multiple transactions, and the merger of enterprises under the same control is finally formed, it should be dealt with whether it belongs to a "package transaction": if it belongs to a "package transaction", each transaction will be accounted for as a transaction to obtain control. If it is not a "package transaction", the share of the book value of the merged party's shareholders' equity in the final controlling party's consolidated financial statements on the merger date will be used as the initial investment cost of the long-term equity investment. The difference between the initial investment cost of the long-term equity investment and the book value of the long-term equity investment before the merger plus the book value of the new consideration for further acquisition of shares on the merger date will be adjusted to the capital reserve; if the capital reserve is insufficient for offset, the retained earnings will be adjusted. date of merger

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Other comprehensive income from previously held equity investments that are accounted for using the equity method or recognized as financial assets measured at fair value and whose changes are included in other comprehensive income will not be subject to accounting treatment for the time being.

For long-term equity investments obtained through a business combination not under common control, the initial investment cost of the long-term equity investment shall be the merger cost on the acquisition date. The merger cost includes the sum of the assets paid by the purchaser, liabilities incurred or assumed, and the fair value of the equity securities issued. If the equity of the purchased party is acquired step by step through multiple transactions, eventually forming a business combination not under the same control, it should be treated separately whether it belongs to a "package transaction": if it belongs to a "package transaction", each transaction will be accounted for as a transaction that obtains control. If it does not belong to a "package transaction", the initial investment cost of the long-term equity investment that is accounted for using the cost method shall be the sum of the original book value of the equity investment in the purchased party plus the new investment cost. If the originally held equity is accounted for using the equity method, the related other comprehensive income will not be subject to accounting treatment for the time being.

Intermediary fees such as auditing, legal services, evaluation and consulting, and other related administrative expenses incurred by the merging party or purchaser during a business merger shall be included in the current profit and loss when incurred.

Equity investments other than long-term equity investments formed through business combinations are initially measured at cost. Depending on the way the long-term equity investment is acquired, the cost is determined based on the actual cash purchase price paid by the group, the fair value of the equity securities issued by the group, the value stipulated in the investment contract or agreement, the fair value or original book value of the assets exchanged in non-monetary asset exchange transactions, the fair value of the long-term equity investment itself, etc. Fees, taxes and other necessary expenses directly related to obtaining long-term equity investment are also included in the investment cost. For additional investments that can exert significant influence on the investee or implement joint control but do not constitute control, the cost of long-term equity investment is the sum of the fair value of the original equity investment determined in accordance with the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" plus the cost of the new investment.

(2) Subsequent measurement and profit and loss recognition methods

Long-term equity investments that have joint control (except for joint operators) or significant influence on the investee unit are accounted for using the equity method. In addition, the company's financial statements adopt the cost method to account for long-term equity investments that can control the invested unit.

①Long-term equity investment accounted for by cost method

When accounting using the cost method, long-term equity investment is valued at the initial investment cost, and the cost of long-term equity investment is adjusted when additional investment or withdrawal of investment is made. Except for the actual price paid when acquiring the investment or the cash dividends or profits that have been declared but not yet distributed included in the consideration, the current investment income is recognized according to the cash dividends or profits declared and distributed by the investee.

②Long-term equity investment accounted for by equity method

When accounting using the equity method, if the initial investment cost of a long-term equity investment is greater than the fair value share of the investee's identifiable net assets at the time of investment, the initial investment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than the fair value share of the investee's identifiable net assets at the time of investment, the difference will be included in the current profit and loss, and the cost of the long-term equity investment will be adjusted at the same time.

When accounting using the equity method, investment income and other comprehensive income are recognized respectively according to the share of the net profit or loss and other comprehensive income realized by the investee that should be enjoyed or shared, and the book value of the long-term equity investment is adjusted at the same time; the portion to be enjoyed is calculated based on the profits or cash dividends declared by the investee to be distributed, and the book value of the long-term equity investment is reduced accordingly; for other changes in the owner's equity of the investee other than net profits and losses, other comprehensive income and profit distribution, the book value of the long-term equity investment is adjusted.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

The book value of the entire long-term equity investment is included in the capital reserve. When confirming the share of the investee's net profits and losses, the net profit of the investee is adjusted and recognized based on the fair value of the investee's identifiable assets when the investment is obtained. If the accounting policies and accounting periods adopted by the investee are inconsistent with those of the Group, the financial statements of the investee will be adjusted in accordance with the Group's accounting policies and accounting periods, and investment income and other comprehensive income will be recognized accordingly. For transactions between the Group and its associates and joint ventures, if the assets invested or sold do not constitute business, the unrealized profits and losses from internal transactions will be offset at the proportion attributable to the Group, and investment gains and losses will be recognized on this basis. However, if the unrealized internal transaction losses between the Group and the investee are impairment losses on the transferred assets, they will not be offset. If the assets invested by the Group into a joint venture or associated enterprise constitute a business, and the investor obtains a long-term equity investment but does not obtain control, the fair value of the invested business shall be used as the initial investment cost of the new long-term equity investment. The difference between the initial investment cost and the book value of the invested business shall be fully included in the current profit and loss. If the assets sold by the Group to joint ventures or associates constitute a business, the difference between the consideration obtained and the book value of the business shall be fully included in the current profit and loss. If the assets purchased by the Group from associates and joint ventures constitute a business, accounting treatment shall be carried out in accordance with the provisions of "Accounting Standards for Business Enterprises No. 20 - Business Merger", and the gains or losses related to the transaction shall be recognized in full.

When confirming the share of the net losses incurred by the investee, the book value of the long-term equity investment and other long-term interests that essentially constitute the net investment in the investee are reduced to zero. In addition, if the Group has an obligation to bear additional losses to the investee, it will recognize estimated liabilities based on the estimated obligations and include them in the current investment losses. If the investee realizes net profit in the subsequent period, the Group will resume recognition of the income sharing amount after the income sharing amount makes up for the unrecognized loss sharing amount.

③Acquisition of minority shares

When preparing consolidated financial statements, the difference between the new long-term equity investment due to the purchase of minority shares and the share of the subsidiary's net assets calculated continuously from the purchase date (or merger date) based on the new shareholding ratio will be adjusted to the capital reserve. If the capital reserve is insufficient for offset, the retained earnings will be adjusted.

④Disposal of long-term equity investments

In the consolidated financial statements, if the parent company partially disposes of the long-term equity investment in the subsidiary without losing control, the difference between the disposal price and the net assets of the subsidiary corresponding to the disposal of the long-term equity investment is included in shareholders' equity; if the parent company partially disposes of the long-term equity investment in the subsidiary, resulting in the loss of control over the subsidiary, it shall be handled in accordance with the relevant accounting policies described in Note 5.7 "Judgment Standards of Control and Preparation Method of Consolidated Financial Statements" (2).

For the disposal of long-term equity investments under other circumstances, the difference between the book value of the disposed equity and the actual price obtained shall be included in the current profit and loss.

For long-term equity investments accounted for using the equity method, if the remaining equity after disposal is still accounted for using the equity method, the portion of other comprehensive income originally included in shareholders' equity at the time of disposal will be accounted for in proportion and on the same basis as the investee's direct disposal of relevant assets or liabilities. Owner's equity recognized due to changes in other owners' equity of the investee other than net profit and loss, other comprehensive income and profit distribution shall be carried forward to the current profit and loss on a proportional basis.

For long-term equity investments accounted for using the cost method, if the remaining equity after disposal is still accounted for using the cost method, other comprehensive income recognized by using the equity method or financial instrument recognition and measurement standards before obtaining control over the investee shall be calculated using the method directly related to the investee. Accounting treatment is carried out on the same basis as the disposal of relevant assets or liabilities, and the profits and losses of the current period are carried forward in proportion; changes in other owners' equity other than net profits and losses, other comprehensive income and profit distribution in the net assets of the investee recognized due to the use of equity method accounting are carried forward to the profits and losses of the current period in proportion.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

If the Group loses control over the investee due to the disposal of part of its equity investment, when preparing individual financial statements, if the remaining equity after the disposal can jointly control or exert significant influence on the investee, it will be accounted for using the equity method instead, and the remaining equity will be deemed to have adopted equity since the time of acquisition. If the remaining equity after disposal cannot jointly control or exert significant influence on the invested unit, the accounting treatment shall be carried out in accordance with the relevant provisions of the financial instrument recognition and measurement standards, and the difference between its fair value and book value on the date of loss of control shall be included in the current profit and loss. For other comprehensive income recognized due to the use of equity method accounting or financial instrument recognition and measurement standards before the Group obtains control of the invested unit, when it loses control of the invested unit, it will be accounted for on the same basis as the invested unit's direct disposal of relevant assets or liabilities. Other changes in owner's equity in the net assets of the invested unit recognized due to the use of equity method accounting, except for net profit and loss, other comprehensive income and profit distribution, will be carried forward to the current profit and loss when it loses control of the invested unit. Among them, if the remaining equity after disposal is accounted for using the equity method, other comprehensive income and other owners' equity will be carried forward in proportion; if the remaining equity after disposal is accounted for in accordance with the financial instrument recognition and measurement standards, all other comprehensive income and other owners' equity will be carried forward.

If the Group loses joint control or significant influence on the investee due to the disposal of part of its equity investment, the remaining equity after disposal will be accounted for in accordance with the financial instrument recognition and measurement standards, and the difference between its fair value and book value on the date of loss of joint control or significant influence will be included in the current profit and loss. Other comprehensive income recognized due to the use of the equity method for accounting in the original equity investment shall be accounted for on the same basis as the investee's direct disposal of relevant assets or liabilities when the use of the equity method is terminated. Owner's equity recognized due to changes in the investee's other owner's equity other than net profit and loss, other comprehensive income and profit distribution shall all be transferred to the investment income of the current period when the use of the equity method is discontinued.

The Group disposes of the subsidiary's equity investment step by step through multiple transactions until it loses control. If the above-mentioned transactions are a package deal, each transaction will be accounted for as a transaction in which the subsidiary's equity investment is disposed of and control is lost. Before the loss of control, the difference between the price of each disposal and the book value of the long-term equity investment corresponding to the equity disposed is first recognized as other comprehensive income. When control is lost, it will be transferred to the current profit and loss of the loss of control.

Investment real estate

Investment real estate measurement model

Not applicable

Fixed assets

(1) Confirmation conditions

Fixed assets refer to tangible assets held for the production of goods, provision of labor services, leasing or operation and management, and with a useful life of more than one accounting year. Fixed assets are recognized only when the economic benefits related to them are likely to flow to the Group and their costs can be measured reliably. Fixed assets are initially measured at cost and taking into account the impact of expected disposal costs.

(2) Depreciation method

Category Depreciation method Depreciation life Salvage value rate Annual depreciation rate

Full text of the 2025 annual report of Nanhua Biopharmaceutical Co., Ltd. Houses and buildings Average age method 30-50 4 1.92-3.20

Machinery and equipment average age method 10-15 4-5 6.33-9.60

Means of transportation Average age method 6-12 4 8.00-16.00

Office equipment and other years average method 5-10 4 9.60-19.20

None

Projects under construction

The cost of construction in progress is determined based on actual project expenditures, including various project expenditures incurred during the construction period, capitalized borrowing costs before the project reaches its intended usable state, and other related expenses.

Construction in progress will be transferred to fixed assets after reaching the intended usable state. If the project has reached the intended usable state but the final settlement of completion has not yet been processed, it will be transferred to fixed assets according to the estimated value first. After the final settlement of completion is processed, the original estimated value will be adjusted according to the actual cost, but the depreciation that has been originally provided will not be adjusted.

Please refer to Note 5, 25 "Impairment of Long-term Assets" for details on the impairment testing method and impairment provision method for projects under construction.

Borrowing costs

Borrowing costs include borrowing interest, amortization of discounts or premiums, auxiliary expenses, and exchange differences arising from foreign currency borrowings. Borrowing costs directly attributable to the acquisition, construction or production of assets that meet the capitalization conditions shall be capitalized when asset expenditures have been incurred, borrowing costs have been incurred, and the acquisition, construction or production activities necessary to bring the assets to the intended usable or salable state have begun; capitalization shall cease when the assets constructed or produced that meet the capitalization conditions have reached the intended usable or salable state. The remaining borrowing costs are recognized as expenses in the current period.

The interest expenses actually incurred on special borrowings in the current period shall be capitalized after deducting the interest income from unused borrowing funds deposited in banks or investment income from temporary investments; the capitalization amount of general borrowings shall be determined based on the weighted average of asset disbursements exceeding the part of special borrowings multiplied by the capitalization rate of the occupied general borrowings. The capitalization rate is calculated and determined based on the weighted average interest rate of general borrowings.

During the capitalization period, all exchange differences on special foreign currency borrowings are capitalized; exchange differences on general foreign currency borrowings are included in the current profits and losses.

Assets that qualify for capitalization refer to fixed assets, investment real estate, inventories and other assets that require a considerable period of acquisition, construction or production activities to reach the intended usable or salable state.

If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or production process, and the interruption lasts for more than 3 months, the capitalization of borrowing costs will be suspended until the acquisition, construction or production activities of the asset are restarted.

Oil and gas assets

None.

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Intangible assets

(1) Useful life and its basis for determination, estimation, amortization method or review procedure

Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by the Group.

Intangible assets are initially measured at cost. Expenditures related to intangible assets are included in the cost of intangible assets if the relevant economic benefits are likely to flow to the Group and their costs can be measured reliably. Expenditures on other items other than these are included in the current profits and losses when incurred.

Acquired land use rights are usually accounted for as intangible assets. For self-developed and constructed factories and other buildings, the related land use right expenditures and building construction costs are accounted for as intangible assets and fixed assets respectively. In the case of outsourced houses and buildings, the relevant price will be allocated between the land use rights and the buildings. If it is difficult to reasonably distribute them, all of them will be treated as fixed assets.

The original value of an intangible asset with a limited useful life is amortized using the straight-line method over its estimated useful life from the time it becomes available for use. Intangible assets with indefinite useful lives are not amortized. All intangible assets of the Group mainly include land use rights, with the service life stated on the land use right certificate being the service life; software, trademark use rights, patent rights and non-patented technologies have the service life with the number of years expected to bring economic benefits to the Group.

The useful life and amortization method of intangible assets with limited useful life are as follows:

Item Useful life (years) Amortization method

Land use rights 40-50 straight line method

Software 5-10 Straight Line Method

Trademark Use Rights 5-10 Straight Line Method

Patents and non-patented technologies 5-10 Straight-line method

At the end of the period, the service life and amortization method of intangible assets with limited service life are reviewed, and any changes are treated as changes in accounting estimates. In addition, the service life of intangible assets with indefinite service life is also reviewed. If there is evidence that the intangible asset will bring economic benefits to the enterprise for a foreseeable period, its service life is estimated and amortized in accordance with the amortization policy for intangible assets with limited service life.

(2) Scope of aggregation of R&D expenditures and related accounting treatment methods

The Group's internal research and development project expenditures are divided into research stage expenditures and development stage expenditures. The scope of R&D expenditure includes:

①Personnel labor costs

Personnel labor expenses include the wages and salaries of the company's R&D personnel, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and housing provident funds, as well as labor costs for external R&D personnel.

If R&D personnel serve multiple R&D projects at the same time, labor costs will be recognized based on the working hours records of R&D personnel for each R&D project provided by the company's management department, and will be allocated proportionally among different R&D projects.

For those who are directly engaged in R&D activities or external R&D personnel who are also engaged in non-R&D activities, the company will allocate the actual labor costs incurred by the R&D personnel between R&D expenses and production and operating expenses based on reasonable methods such as the proportion of actual working hours based on the R&D personnel’s working time records in different positions.

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②Direct investment costs

Direct investment expenses refer to the actual expenditures incurred by the company to implement research and development activities. Including: 1) Direct consumption of materials, fuel and power costs; 2) Development and manufacturing costs of molds and process equipment used for intermediate testing and product trial production, purchase costs for samples, prototypes and general testing means that do not constitute fixed assets, and inspection fees for trial products; 3) Operation and maintenance, adjustment, inspection, detection, repair and other costs of instruments and equipment used for research and development activities.

③Depreciation expenses and long-term deferred expenses

Depreciation expenses refer to the depreciation expenses of instruments, equipment and buildings in use used for research and development activities.

If instruments, equipment, and buildings in use are used for R&D activities and are also used for non-R&D activities, necessary records shall be made of the use of such instruments, equipment, and buildings in use, and the actual depreciation expenses incurred shall be allocated between R&D expenses and production and operating expenses in a reasonable manner based on factors such as actual working hours and usage area. Long-term deferred expenses refer to the long-term deferred expenses incurred during the reconstruction, modification, decoration and repair of R&D facilities. They are collected based on actual expenditures and amortized evenly in installments within the specified period.

④Amortization expenses of intangible assets

Amortization expenses of intangible assets refer to the amortization expenses of software, intellectual property, non-patented technology (proprietary technology, licenses, design and calculation methods, etc.) used in research and development activities.

⑤Design fee

Design expenses refer to the expenses incurred in conceiving, developing and manufacturing new products and new processes, and designing processes, technical specifications, procedures, operating characteristics, etc., including expenses related to creative design activities to obtain innovative, creative, and breakthrough products.

⑥Entrust external research and development expenses

Entrusted external research and development expenses refer to the expenses incurred by the company entrusting other institutions or individuals at home and abroad to conduct research and development activities (the results of research and development activities are owned by the company and are closely related to the company's main business).

⑦Other expenses

Other expenses refer to other expenses directly related to research and development activities in addition to the above expenses, including technical book materials fees, data translation fees, expert consultation fees, high-tech R&D insurance fees, retrieval, demonstration, review, identification, and acceptance fees for R&D results, application fees, registration fees, agency fees for intellectual property rights, conference fees, travel expenses, communication fees, etc.

Expenditures in the research stage are included in the current profits and losses when incurred.

Expenditures in the development stage that meet the following conditions at the same time are recognized as intangible assets. Expenditures in the development stage that do not meet the following conditions are included in the current profit and loss: ① It is technically feasible to complete the intangible asset so that it can be used or sold;

② Have the intention to complete the intangible asset and use or sell it;

③ The way intangible assets generate economic benefits includes being able to prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market. If the intangible assets will be used internally, their usefulness can be proven;

④ Have sufficient technical, financial and other resource support to complete the development of the intangible assets, and have the ability to use or sell the intangible assets;

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⑤ The expenditures attributable to the development stage of the intangible asset can be measured reliably.

If it is impossible to distinguish between expenditures in the research stage and expenditures in the development stage, all R&D expenditures incurred will be included in the current profit and loss.

(3) Impairment testing method and impairment provision accrual method for intangible assets

Please refer to Note V. 25 "Impairment of Long-term Assets" for details of the impairment testing method and impairment provision method of intangible assets.

Impairment of long-term assets

For non-current non-financial assets such as fixed assets, construction in progress, right-of-use assets, intangible assets with limited useful lives, and long-term equity investments in subsidiaries, joint ventures, and associates, the Group determines whether there are signs of impairment on the balance sheet date. If there is any indication of impairment, the recoverable amount is estimated and an impairment test is performed. Goodwill, intangible assets with indefinite useful lives and intangible assets that have not yet reached a usable state are subject to impairment testing every year regardless of whether there are signs of impairment.

If the impairment test results show that the recoverable amount of the asset is lower than its book value, impairment provisions will be made based on the difference and included in the impairment loss. The recoverable amount is the higher of the asset's fair value less disposal costs and the present value of the asset's expected future cash flows. The fair value of an asset is determined based on the sales agreement price in a fair transaction; if there is no sales agreement but there is an active market for the asset, the fair value is determined based on the buyer's bid for the asset; if there is no sales agreement and there is an active market for the asset, the fair value of the asset is estimated based on the best information available. Disposal costs include legal fees, related taxes, transportation fees and direct costs incurred in bringing the assets to a salable condition. The present value of the estimated future cash flows of an asset is determined by selecting an appropriate discount rate to discount the estimated future cash flows generated during the continued use and final disposal of the asset. Asset impairment provisions are calculated and recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs is determined. An asset group is the smallest combination of assets that can independently generate cash inflows.

For goodwill that is presented separately in the financial statements, when performing impairment testing, the book value of the goodwill is allocated to the asset group or combination of asset groups that are expected to benefit from the synergy effects of the business combination. If the test results show that the recoverable amount of an asset group or combination of asset groups containing amortized goodwill is lower than its book value, the corresponding impairment loss will be recognized. The amount of impairment loss first deducts the book value of the goodwill allocated to the asset group or asset group combination, and then deducts the book value of other assets in proportion to the proportion of the book value of other assets in the asset group or asset group combination except goodwill.

Once the above-mentioned asset impairment losses are recognized, the portion whose value has been restored will not be reversed in subsequent periods.

Long-term deferred expenses

Long-term deferred expenses are expenses that have been incurred but should be borne by the reporting period and subsequent periods with an amortization period of more than one year. The Group's long-term deferred expenses mainly include franchise fees, single-payment customer return agency storage fees, etc. Long-term deferred expenses are amortized on a straight-line basis over the expected benefit period.

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Contract liabilities

Contract liabilities refer to the Group’s obligation to transfer goods to customers for consideration received or receivable from customers. If the customer has paid the contract consideration or the Group has obtained the unconditional right to receive payment before the Group transfers the goods to the customer, the Group will list the amount received or receivable as a contract liability at the earlier of the actual payment by the customer and the amount due. Contract assets and contract liabilities under the same contract are presented on a net basis, and contract assets and contract liabilities under different contracts are not offset.

Employee compensation

(1) Accounting treatment method for short-term compensation

The Group's employee benefits mainly include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits. Among them:

Short-term compensation mainly includes wages, bonuses, allowances and subsidies, employee welfare fees, medical insurance premiums, maternity insurance premiums, work-related injury insurance premiums, housing provident funds, labor union funds and employee education funds, non-monetary benefits, etc. The Group recognizes actual short-term employee benefits as liabilities during the accounting period when employees provide services to the Group, and includes them in current profits and losses or related asset costs. Among them, non-monetary benefits are measured at fair value.

(2) Accounting treatment of post-employment benefits

Post-employment benefits mainly include basic pension insurance and unemployment insurance. Post-employment benefit plans include defined contribution plans. If a defined contribution plan is adopted, the corresponding deposit amount payable shall be included in the relevant asset cost or current profit and loss when incurred.

(3) Accounting treatment method for dismissal benefits

When the Group terminates the labor relationship with employees before the expiration of the employee's labor contract, or makes a proposal to provide compensation to encourage employees to voluntarily accept redundancy, when the Group cannot unilaterally withdraw the dismissal benefits provided by the termination of labor relationship plan or layoff proposal, and the Group recognizes the costs related to the restructuring involving the payment of dismissal benefits, whichever is earlier, the employee compensation liabilities arising from the dismissal benefits are recognized and included in the current profit and loss. However, if dismissal benefits are not expected to be fully paid twelve months after the end of the annual reporting period, they will be treated as other long-term employee benefits.

Internal employee retirement plans are treated on the same principles as the above-mentioned termination benefits. The Group will include the wages and social insurance premiums to be paid to early retirees from the date when the employees stop providing services to the normal retirement date, etc., when they meet the conditions for recognition of estimated liabilities, and included in the current profit and loss (dismissal benefits).

(4) Accounting treatment methods for other long-term employee benefits

Other long-term employee benefits provided by the Group to employees that comply with the defined contribution plan shall be accounted for in accordance with the defined contribution plan; otherwise, they shall be accounted for in accordance with the defined benefit plan.

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Estimated liabilities

When obligations related to contingencies meet the following conditions at the same time, they are recognized as estimated liabilities: (1) The obligation is a current obligation assumed by the Group; (2) Fulfillment of the obligation is likely to result in an outflow of economic benefits; (3) The amount of the obligation can be measured reliably.

On the balance sheet date, estimated liabilities are measured based on the best estimate of the expenditure required to fulfill the relevant current obligations, taking into account factors such as risks, uncertainties and the time value of money related to contingencies.

If all or part of the expenses required to settle estimated liabilities are expected to be compensated by a third party, the compensation amount will be recognized separately as an asset when it is basically certain that it will be received, and the recognized compensation amount will not exceed the book value of the estimated liabilities.

Share-based payment

None.

Preferred shares, perpetual bonds and other financial instruments

None.

Income

Disclose accounting policies adopted for revenue recognition and measurement by business type

Income is the total inflow of economic benefits generated by the Group in its daily activities that will lead to an increase in shareholders' equity and have nothing to do with the capital invested by shareholders. When the contract between the Group and the customer meets the following conditions at the same time, revenue is recognized when the customer obtains control of the relevant goods (including services, the same below): the parties to the contract have approved the contract and promised to perform their respective obligations; the contract clarifies the rights and obligations of the parties to the contract related to the transferred goods or provision of services; the contract has clear payment terms related to the transferred goods; the contract has commercial substance, that is, the performance of the contract will change the risk, time distribution or amount of the Group's future cash flows; the consideration that the Group is entitled to receive for transferring goods to the customer is likely to be recovered. Among them, obtaining control over relevant commodities means being able to direct the use of the commodities and obtain almost all economic benefits from them.

On the contract inception date, the Group identifies each individual performance obligation that exists in the contract, and allocates the transaction price to each individual performance obligation in accordance with the relative proportion of the stand-alone selling price of the goods promised by each individual performance obligation. When determining the transaction price, the impact of variable consideration, significant financing components in the contract, non-cash consideration, consideration payable to customers and other factors was considered.

For each individual performance obligation in the contract, if one of the following conditions is met, the Group will recognize the transaction price allocated to the individual performance obligation as revenue according to the performance progress during the relevant performance period: the customer obtains and consumes the Group at the same time that the Group performs the contract The economic benefits brought by the performance of the contract; the customer can control the goods under construction during the group's performance; the goods produced by the group during the performance have irreplaceable uses, and the group has the right to collect payment for the cumulative performance part completed so far during the entire contract period. The progress of contract performance is determined using the input method or the output method based on the nature of the transferred goods. When the progress of contract performance cannot be reasonably determined and the costs incurred by the Group are expected to be compensated, revenue will be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined.

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If one of the above conditions is not met, the Group will recognize revenue at the time when the customer obtains control of the relevant goods based on the transaction price allocated to the individual performance obligation. When judging whether the customer has obtained control of the goods, the Group considers the following signs: the company has the current right to receive payment for the goods, that is, the customer has current payment obligations for the goods; the company has transferred the legal ownership of the goods to the customer, that is, the customer already has the legal ownership of the goods; the company has The commodity is physically transferred to the customer, which means that the customer has physically taken possession of the commodity; the enterprise has transferred the main risks and rewards of ownership of the commodity to the customer, that is, the customer has obtained the main risks and rewards of ownership of the commodity; the customer has accepted the commodity; and other signs indicate that the customer has obtained control of the commodity.

Specific revenue recognition principles related to the Group’s main activities that generate revenue:

(1) Testing labor income

The company's detection of labor income is a performance obligation performed at a certain point in time. The company is entrusted to provide testing and other labor services for human cells. After completing the procedures of cell separation, freezing and testing, and for the human cells that meet the conditions for storage and storage of cell viability, the company notifies the customer of the qualified test results and uploads the report to the system, and then recognizes the income from the testing services in one go according to the contract or agreement price received or receivable from the service recipient.

(2) Income from storage and custody services

The company's storage and custody service income is a performance obligation performed within a certain period of time. The company provides multi-year human cell activity storage services to the client, and uses time progress as the contract performance progress, that is, based on the period of providing custody services, the custody income for the current period of the service year is determined in installments based on the contract or agreement price received or receivable from the service recipient. If the service recipient fails to pay the price in accordance with the contract or agreement, if the service recipient fails to pay the storage fee for two consecutive years, the company believes that there is significant uncertainty in the inflow of economic benefits related to the service, and will no longer continue to recognize service revenue related to the service. If the company receives a one-time payment of prepaid storage fees from the labor recipient in the period after the revenue recognition is terminated, the company will recognize the difference between the actual amount received and the accounts receivable as labor income for the current period in a lump sum in the year when the payment is received.

(3) EMC (Energy Management Contract) revenue

The company's EMC (energy management contract) business is a performance obligation that is performed within a certain period of time. When the company carries out EMC (Energy Management Contract) business, it confirms the performance progress of services provided based on monthly energy savings, and recognizes revenue based on the progress of contract performance.

(4) Sewage treatment revenue

The company's sewage treatment business is a performance obligation that is performed within a certain period of time. The performance progress is determined based on the monthly sewage treatment volume, and revenue is recognized based on the settlement document confirmed with the customer.

(5) Revenue from product sales

The company's revenue from the sale of goods is a performance obligation that is fulfilled at a certain point in time. The company recognizes revenue when the product has been delivered to the purchaser in accordance with the contract and the customer has confirmed acceptance, the payment has been recovered or the payment receipt has been obtained, and the relevant economic benefits are likely to flow in.

Similar business adopts different business models and involves different revenue recognition methods and measurement methods.

None.

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Contract costs

The incremental costs incurred by the Group to obtain the contract are expected to be recovered and are recognized as an asset as the contract acquisition cost. However, if the amortization period of the asset does not exceed one year, it will be included in the current profit and loss when incurred.

If the cost incurred to perform the contract does not fall within the scope of other accounting standards other than "Accounting Standards for Business Enterprises No. 14 - Revenue (2017 Revision)" and meets the following conditions at the same time, it is recognized as an asset as the cost of contract performance: ① The cost is consistent with a current or expected withdrawal. are directly related to the contract obtained, including direct labor, direct materials, manufacturing overhead (or similar expenses), costs clearly borne by the customer, and other costs incurred solely because of the contract; ② This cost increases the Group's future resources for fulfilling performance obligations; ③ This cost is expected to be recovered.

Assets related to contract costs are amortized on the same basis as the commodity revenue recognition related to the asset and included in the current profit and loss.

Government subsidies

Government subsidies refer to the monetary assets and non-monetary assets that the Group obtains from the government for free, excluding capital invested by the government as an investor and enjoying corresponding owner's rights. Government subsidies are divided into asset-related government subsidies and income-related government subsidies. The Group defines government subsidies obtained for the purchase, construction or other formation of long-term assets as asset-related government subsidies; the remaining government subsidies are defined as income-related government subsidies. If the government document does not clearly stipulate the subsidy object, the following method will be used to divide the subsidy into income-related government subsidies and asset-related government subsidies: (1) If the government document clarifies the specific project for which the subsidy is targeted, the expenditure of the asset will be formed in the budget of the specific project. The amount and the relative proportion of the expenditure included in expenses shall be divided. The division proportion shall be reviewed on each balance sheet date and changed if necessary; (2) If the purpose is only a general statement in the government document and no specific project is specified, it shall be regarded as a government subsidy related to income. If the government subsidy is a monetary asset, it shall be measured according to the amount received or receivable. If the government subsidy is a non-monetary asset, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at the nominal amount. Government subsidies measured according to the nominal amount are directly included in the current profit and loss.

The Group's government subsidies are usually recognized and measured based on the actual amount received when they are actually received. However, if there is conclusive evidence at the end of the period that it can meet the relevant conditions stipulated in the financial support policy and is expected to receive financial support funds, it will be measured according to the amount receivable. Government subsidies measured based on the amount receivable shall meet the following conditions: (1) The amount of the subsidy receivable has been confirmed by a document issued by the competent government department, or can be reasonably calculated by oneself in accordance with the relevant provisions of the officially released fiscal fund management measures, and the amount is not expected to have significant uncertainty; (2) It is based on the fiscal support projects and fiscal fund management officially announced by the local financial department and proactively disclosed in accordance with the "Government Information Disclosure Regulations" The management method should be universal (any enterprise that meets the specified conditions can apply), rather than formulated specifically for specific enterprises; (3) The relevant subsidy approval documents have clearly promised the disbursement period, and the disbursement of the funds is guaranteed by the corresponding financial budget, so it can be reasonably guaranteed to be received within the specified period; (4) Other relevant conditions (if any) that should be met according to the specific circumstances of the Group and the subsidy matter.

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Government subsidies related to assets are recognized as deferred income and included in current profits and losses in installments in a reasonable and systematic manner within the useful life of the relevant assets. If government subsidies related to income are used to compensate for relevant costs, expenses or losses in the future period, they are recognized as deferred income and included in the current profit and loss during the period when the relevant costs, expenses or losses are recognized; if they are used to compensate for relevant costs, expenses or losses that have already occurred, they are directly included in the current profits and losses.

Government subsidies that include both asset-related parts and income-related parts are distinguished and accounted for separately. If it is difficult to distinguish, the whole is classified as income-related government subsidies.

Government subsidies related to the daily activities of the Group shall be included in other income or offset related costs and expenses according to the nature of the economic business; government subsidies unrelated to daily activities shall be included in non-operating income and expenses.

When a confirmed government subsidy needs to be returned, if there is a relevant deferred income balance, the book balance of the relevant deferred income will be offset, and the excess will be included in the current profit and loss; in other cases, it will be directly included in the current profit and loss.

Deferred income tax assets/deferred income tax liabilities

(1) Current income tax

On the balance sheet date, current income tax liabilities (or assets) formed in the current and previous periods are measured based on the amount of income tax expected to be paid (or refunded) calculated in accordance with the provisions of tax laws. The taxable income based on which the income tax expense for the current period is calculated is calculated based on the relevant tax laws and regulations by making corresponding adjustments to the pre-tax accounting profit for the reporting period.

(2) Deferred income tax assets and deferred income tax liabilities

The difference between the book value of certain assets and liability items and their tax basis, as well as the temporary differences arising from the difference between the book value and tax basis of items that have not been recognized as assets and liabilities but whose tax basis can be determined in accordance with tax laws, are determined using the balance sheet liability method to recognize deferred income tax assets and deferred income tax liabilities.

Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of assets or liabilities arising from transactions that are neither business combinations nor affect accounting profits and taxable income (or deductible losses) at the time of occurrence, shall not recognize related deferred income tax liabilities (except for individual transactions where the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences). In addition, for taxable temporary differences related to investments in subsidiaries, associates and joint ventures, if the Group is able to control the timing of the reversal of the temporary differences and it is likely that the temporary differences will not be reversed in the foreseeable future, the relevant deferred income tax liabilities will not be recognized. Except for the above exceptions, the Group recognizes deferred income tax liabilities arising from all other taxable temporary differences.

Deductible temporary differences related to the initial recognition of assets or liabilities arising from transactions that are neither business combinations nor affect accounting profits and taxable income (or deductible losses) at the time of occurrence are not recognized as related deferred income tax assets (except for individual transactions where the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences). In addition, for deductible temporary differences related to investments in subsidiaries, associates and joint ventures, if the temporary differences are not likely to be reversed in the foreseeable future, or it is not likely to be taxable income that can be used to offset the deductible temporary differences in the future,

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The relevant deferred income tax assets will not be recognized. Except for the above exceptions, the Group recognizes deferred income tax assets arising from other deductible temporary differences to the extent that it is likely to obtain taxable income that can be used to offset the deductible temporary differences.

For deductible losses and tax credits that can be carried forward to future years, the corresponding deferred income tax assets are recognized to the extent that it is probable that the future taxable income will be used to offset the deductible losses and tax credits.

On the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period when the relevant assets are expected to be recovered or the relevant liabilities are settled in accordance with the provisions of tax laws.

On the balance sheet date, the book value of the deferred tax assets is reviewed. If it is likely that sufficient taxable income will not be available in the future to offset the benefits of the deferred tax assets, the book value of the deferred tax assets will be written down. The amount of the write-down is reversed when it is probable that sufficient taxable income will be obtained.

(3) Income tax expenses

Income tax expense includes current income tax and deferred income tax.

Except for the current income tax and deferred income tax related to transactions and events recognized as other comprehensive income or directly included in shareholders' equity, which are included in other comprehensive income or shareholders' equity, and the deferred income tax arising from business combinations adjusts the book value of goodwill, the remaining current income tax and deferred income tax expenses or income are included in the current profit and loss. (4) Offset of income tax

When the Group has the legal right to settle on a net basis and intends to settle on a net basis or acquire assets and pay off liabilities at the same time, the Group's current income tax assets and current income tax liabilities are presented at the net amount after offsetting.

When you have the legal right to settle current income tax assets and current income tax liabilities on a net basis, and the deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection and administration department on the same taxable entity or on different taxable entities, but in the future each During the period when significant deferred income tax assets and liabilities are reversed, when the taxable entity involved intends to settle the current income tax assets and liabilities on a net basis or to acquire assets and settle liabilities at the same time, the Group's deferred income tax assets and deferred income tax liabilities are presented at the net amount after offsetting.

Leasing

(1) Accounting treatment method for leasing as lessee

The Group's leased assets mainly include real estate, machinery and equipment.

① Initial measurement

On the start date of the lease period, the Group recognizes the right to use the leased asset during the lease term as a right-of-use asset, and recognizes the present value of the unpaid lease payments as a lease liability, except for short-term leases and low-value asset leases. When calculating the present value of lease payments, the Group uses the interest rate implicit in the lease as the discount rate; if the interest rate implicit in the lease cannot be determined, the lessee's incremental borrowing rate is used as the discount rate.

② Subsequent measurement

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The Group accrues depreciation on right-of-use assets with reference to the relevant depreciation provisions of "Accounting Standards for Business Enterprises No. 4 - Fixed Assets" (see Note V. 20 "Fixed Assets" for details). If it is reasonably certain to obtain ownership of the leased asset at the expiration of the lease term, the Group shall accrue depreciation over the remaining useful life of the leased asset. If it is not reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, the Group will accrue depreciation during the shorter of the lease term and the remaining useful life of the leased asset.

For lease liabilities, the Group calculates the interest expense for each period during the lease term based on a fixed periodic interest rate and includes it in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when actually incurred.

After the start of the lease term, when the actual fixed payments change, the expected amount payable of the guaranteed residual value changes, the index or ratio used to determine the lease payments changes, the evaluation results or actual exercise of the purchase option, lease renewal option or termination option changes, the Group remeasures the lease liability based on the present value of the changed lease payments and adjusts the book value of the right-of-use assets accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the Group will include the remaining amount in the current profit and loss.

③ Short-term leasing and low-value asset leasing

For short-term leases (leases with a lease period of no more than 12 months on the lease commencement date) and low-value asset leases (leases with a value of less than RMB 40,000 when a single leased asset is a new asset), the Group adopts a simplified approach and does not recognize right-of-use assets and lease liabilities. Instead, the lease payments are included in the current profit and loss on a straight-line basis during each period of the lease term.

(2) Accounting treatment method for leasing as lessor

On the lease commencement date, the Company classifies leases that substantially transfer almost all risks and rewards related to the ownership of the leased assets as finance leases, and other leases as operating leases.

① Operating lease

The company recognizes the lease receipts as rental income according to the straight-line method in each period during the lease term. The initial direct expenses incurred are capitalized and amortized on the same basis as the rental income recognition, and included in the current profit and loss in installments. Variable lease payments obtained by the company related to operating leases that are not included in the lease receipts are included in the current profit and loss when they actually occur.

②Financial lease

On the start date of the lease period, the company recognizes the financial lease receivable based on the net lease investment (the sum of the unguaranteed residual value and the present value of the lease payments not yet received on the start date of the lease discounted at the interest rate implicit in the lease), and terminates the recognition of financial lease assets. During each period of the lease term, the company calculates and recognizes interest income based on the interest rate implicit in the lease.

Variable lease payments obtained by the company that are not included in the measurement of net lease investment are included in the current profit and loss when actually incurred.

③Sale and leaseback

The company evaluates and determines whether the asset transfer in the sale and leaseback transaction is a sale in accordance with the provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue".

If the asset transfer in a sale and leaseback transaction is a sale, the company will account for the asset purchase in accordance with other applicable accounting standards for business enterprises, and account for asset leasing in accordance with the "Accounting Standards for Business Enterprises No. 21 - Lease".

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

If the asset transfer in a sale and leaseback transaction does not constitute a sale, the company does not recognize the transferred asset, but recognizes a financial asset equal to the transfer income, and performs accounting treatment on the financial asset in accordance with the "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments".

Other important accounting policies and accounting estimates

(1) Hedge accounting

In order to avoid certain risks, the Group uses certain financial instruments as hedging instruments for hedging. For hedging that meets the prescribed conditions, the Group adopts the hedge accounting method. The Group's hedging includes cash flow hedging.

At the beginning of hedging, the Group formally designates the hedging instrument and the hedged item, and prepares written documents regarding the hedging relationship and the Group's risk management strategy and risk management objectives for hedging. In addition, the Group will continuously evaluate the effectiveness of the hedging at the beginning of the hedging and thereafter.

① Cash flow hedging

For hedging instruments that are designated as cash flow hedging and meet the conditions, the part of the gains or losses generated by the hedging that is effective shall be regarded as the cash flow hedging reserve and included in other comprehensive income, and the ineffective hedging part shall be included in the current profit and loss.

If the expected transaction causes the Group to subsequently recognize a non-financial asset or non-financial liability, or the expected transaction of a non-financial asset or non-financial liability forms a firm commitment applicable to fair value hedging accounting, the Group will transfer out the amount of cash flow hedging reserve originally recognized in other comprehensive income and include it in the initial recognition amount of the asset or liability. For other cash flow hedging, the Group will transfer out the cash flow hedging reserve amount originally recognized in other comprehensive income and include it in the current profit and loss during the same period when the hedged expected cash flow affects the profit and loss.

If it is expected that all or part of the net loss originally included in other comprehensive income cannot be made up in the future accounting period, the part that cannot be made up will be transferred out and included in the current profit and loss.

When the Group terminates the use of hedge accounting for cash flow hedging, the accumulated cash flow hedging reserves that have been included in other comprehensive income will be retained when future cash flows are still expected to occur. When future cash flows are no longer expected to occur, they will be transferred out from other comprehensive income and included in the current profit and loss.

Changes in important accounting policies and accounting estimates

(1) Changes in important accounting policies

□Applicable ☑Not applicable

(2) Changes in important accounting estimates

□Applicable ☑Not applicable

(3) Adjustments to relevant items in the financial statements at the beginning of the year when the new accounting standards are first implemented starting from 2025.

□Applicable ☑Not applicable

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Others

None.

6. Taxes

Main tax types and tax rates

Tax Type Tax Calculation Basis The tax rate is based on the sales of goods and taxable goods calculated in accordance with tax laws.

Calculate output tax based on labor service income and deduct

Value-added tax 13%, 9%, 6%, 3% After the input tax allowed to be deducted in the current period, the difference shall be

VAT payable

Urban maintenance and construction tax Actual turnover tax paid 7%, 5%

Corporate income tax: taxable income 25%, 20%, 15%

Property tax is levied on rent, calculated and paid at the rate of 12% of the rental income.

Education fee surcharge Actual turnover tax paid 3%

Local education surcharge Actual turnover tax paid 2%

If there are taxpayers with different corporate income tax rates, a description of the disclosure

Name of tax payer Income tax rate

Hunan Nanhua Biotechnology Co., Ltd. 15%

Jiangxi Aishiweimin Bioengineering Co., Ltd. 20%

Other tax entities other than the above 25%

Tax incentives

(1) Tax incentives for high-tech enterprises

According to the "Notice on Revising and Issuing the "Administrative Measures for the Recognition of High-tech Enterprises" (Guokefahuo [2016] No. 32), "high-tech enterprises that have been recognized (reexamined) qualified can apply for enterprise benefits starting from the year when the recognition (reexamination) is approved. "Enterprise Income Tax Preferential", the high-tech enterprise certificate obtained is valid for 3 years. The company's subsidiary Hunan Nanhua Biotechnology Co., Ltd. passed the high-tech enterprise review on December 26, 2025, and enjoys a 15% corporate income tax discount in 2025.

(2) Tax incentives for small and micro enterprises

According to the "Announcement on Relevant Tax Policies to Further Support the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households" (Announcement No. 12 of the Ministry of Finance and the State Administration of Taxation in 2023), small and low-profit enterprises will be subject to a 25% reduction in taxable income calculation and a corporate income tax policy of 20%, which will continue to be implemented until December 31, 2027. Jiangxi Aishiweimin Bioengineering Co., Ltd., a subsidiary of the Company, is qualified as a small and low-profit enterprise in 2025 and enjoys the above corporate income tax preferential treatment. (3) Other tax benefits

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Improving the Value-Added Tax Policy for Comprehensive Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State Administration of Taxation in 2021), the company's subsidiary Lengshuijiang Jindalu Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Jindalu Environmental Protection") enjoys a preferential policy of refunding 30% of the VAT upon collection.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Others

None.

7. Notes on Consolidated Financial Statement Items

Monetary funds

Unit: Yuan

Item Ending balance Beginning balance

Cash on hand 2,699.06 2,760.35 Bank deposits 346,041,656.51 206,540,039.76 Other monetary funds 723,814.54 820,346.82 Total 346,768,170.11 207,363,146.93 Other notes:

None.

Trading financial assets

Unit: Yuan

Item Ending balance Beginning balance

Measured at fair value with changes included in current profit and loss

Financial assets worth 607,889.00

Among them:

Investment in equity instruments 607,889.00 including:

Total 607,889.00Other instructions:

None.

Notes receivable

(1) Classified presentation of notes receivable

Unit: Yuan

Item Ending balance Beginning balance

Bank acceptance notes 101,958,952.44

Total 101,958,952.44

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan

Category Closing Balance Opening Balance

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Book balance Provision for bad debts Book balance Provision for bad debts

Book price Book price provision ratio Provision ratio amount Proportion Amount Value Amount Proportion Amount Value example

its

Medium:

by combination

bad provision

102,471 512,356 101,958

Account preparation 100.00% 0.50%

,308.98 .54 ,952.44

receivables

bill

its

Medium:

Bank commitments 102,471 512,356 101,958

100.00% 0.50%

Exchange notes ,308.98 .54 ,952.44

102,471 512,356 101,958

Total 100.00% 0.50%

,308.98 .54 ,952.44

Provision for bad debts based on combination: Notes receivable with provision for bad debts based on aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio within 1 year 102,471,308.98 512,356.54 0.50% Total 102,471,308.98 512,356.54

Description of what this combination is based on:

None.

If bad debt provisions for notes receivable are made according to the general expected credit loss model:

□Applicable ☑Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off Others

Combined provision 450,106.54 62,250.00 512,356.54Total 450,106.54 62,250.00 512,356.54Among them, the amount of bad debt provision recovered or reversed in the current period is important:

□Applicable ☑Not applicable

(4) Notes receivable pledged by the company at the end of the period

Unit: Yuan

Project Amount pledged at the end of the period

Bank acceptance notes 0.00 Commercial acceptance notes 0.00 Total 0.00

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(5) Notes receivable that have been endorsed or discounted by the company at the end of the period and have not yet matured on the balance sheet date

Unit: Yuan

Item Amount derecognized at the end of the period Amount not derecognized at the end of the period

Bank acceptance notes 100,486,068.98 Total 100,486,068.98

Accounts receivable

(1) Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 184,175,102.32 66,506,806.78 1 to 2 years 12,355,194.39 30,625,600.72 2 to 3 years 15,957,984.63 30,180,265.33 More than 3 years 22,102,295.11 98,983,985.95 3 to 4 years 16,164,694.25 6,171,004.91 4 to 5 years 4,367,291.94 90,833,859.84

More than 5 years 1,570,308.92 1,979,121.20 Total 234,590,576.45 226,296,658.78

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

bad provision

85,580, 71,563, 14,017, Account provision 37.82% 83.62%

852.35 666.98 185.37 receivables

Accounts

its

Medium:

Minxian Hong

source clean

70,085, 56,068, 14,017, 30.97% 80.00%

926.85 741.48 185.37Thermal power is

Ltd.

Hunan Yi

Xun International 15,484, 15,484,

6.84% 100.00% 0.00Trading has 193.00 193.00

Ltd.

by combination

234,590 16,070, 218,520 140,715 15,151, 125,564 Bad provision 100.00% 6.85% 62.18% 10.77%

,576.45 052.15 ,524.30 ,806.43 052.59 ,753.84 Account preparation

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

receivables

Accounts

its

Medium:

Aging group 234,590 16,070, 218,520 140,715 15,151, 125,564

100.00% 6.85% 62.18% 10.77%

Together,576.45 052.15,524.30,806.43 052.59,753.84

234,590 16,070, 218,520 226,296 86,714, 139,581Total 100.00% 6.85% 100.00% 100.00%

,576.45 052.15 ,524.30 ,658.78 719.57 ,939.21 Provision for bad debts on an individual basis: Provision for bad debts on a single item if the individual amount is significant

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Minxian Hongyuan Cleaning 70,085,926.8 56,068,741.4

Heating Co., Ltd. 5 8

Hunan Yixun International 15,484,193.0 15,484,193.0

Trading Co., Ltd. 0 0

85,570,119.8 71,552,934.4

total

5 8

Provision for bad debts based on combinations: Provision for bad debts based on aging combinations

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year 184,175,102.32 1,841,751.81 1.00% 1 to 2 years 12,355,194.39 741,311.66 6.00% 2 to 3 years 15,957,984.63 2,393,697.69 15.00% 3 to 4 years 16,164,694.25 6,465,877.71 40.00% 4 to 5 years 4,367,291.94 3,057,104.36 70.00% More than 5 years 1,570,308.92 1,570,308.92 100.00% Total 234,590,576.45 16,070,052.15

Description of what this combination is based on:

This portfolio uses the aging of accounts receivable as the credit risk characteristic, and accrues bad debt provisions based on the expected credit loss rate of each aging period.

If bad debt provisions for accounts receivable are made according to the general expected credit loss model:

□Applicable ☑Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan

Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or transfer Write-off Others

71,563,666.9

Individual provision 3,774,819.90 75,338,486.8 0.00

15,151,052.5 - 16,070,052.1 Combined provision 8,897,760.19

9 7,978,760.63 5

86,714,719.5 12,672,580.0 - 16,070,052.1Total

7 9 83,317,247.5 5 Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Unit: Yuan Determine the name of the original bad debt provision accrual unit, the recovery or reversal amount, the reason for the reversal, the recovery method, the basis for the ratio and its rationality

None.

(4) Accounts receivable actually written off in the current period

Unit: yuan item write-off amount

Important write-offs of accounts receivable:

Unit: Yuan Whether the amount is paid by the name of the related unit Nature of accounts receivable Amount of write-off Reason for write-off The write-off procedures performed

transaction generated

Instructions for writing off accounts receivable:

None.

(5) Accounts receivable and contract assets with the top five closing balances collected by debtors

Unit: Yuan accounts receivable and combined accounts receivable, bad debts, quasi-accounts receivable, ending balance, contract assets, ending balance, accounts receivable and contracts

Unit name Closing balance of same assets Provision and contract asset reduction amount Closing balance of assets

Proportion of total value preparation closing balance Hunan Valin Lianyuan Steel

127,983,074.72 127,983,074.72 54.56% 1,279,830.75 Iron Co., Ltd.

Hengyang Valin Steel Pipe Co., Ltd.

19,282,787.20 19,282,787.20 8.22% 192,827.87 Co., Ltd.

Lengshuijiang Steel Co., Ltd.

5,110,017.07 5,110,017.07 2.18% 51,100.17 Responsible company

Zhongwei New Materials Co., Ltd.

2,540,740.00 2,540,740.00 1.08% 25,407.40 Co., Ltd.

All-in-one digital technology

2,448,548.72 2,448,548.72 1.04% 24,485.49 Technology Co., Ltd.

Total 157,365,167.71 157,365,167.71 67.08% 1,573,651.68

Other receivables

Unit: Yuan Item Ending balance Beginning balance

Other receivables 18,021,005.54 4,393,557.13 Total 18,021,005.54 4,393,557.13

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Other receivables

Classification of other receivables according to nature of payment

Unit: Yuan

Nature of payment Book balance at the end of the period Book balance at the beginning of the period

Equity transfer amount 13,994,330.00

Technology transfer 5,000,000.00 5,000,000.00 Employee loans and others 3,927,642.43 662,296.92 Deposit 1,647,043.02 1,116,364.42 Temporary payment receivable 38,157.10 21,735,388.74Total 24,607,172.55 28,514,050.08

Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 17,970,883.42 540,672.32 1 to 2 years 22,117.02 352,873.98 2 to 3 years 45,000.00 52,684.30 More than 3 years 6,569,172.11 27,567,819.48 3 to 4 years 7,751.42 22,404,935.10 4 to 5 years 556,567.00 110,009.28

More than 5 years 6,004,853.69 5,052,875.10 Total 24,607,172.55 28,514,050.08

Classified disclosure according to bad debt accrual method

☑Applicable □Not applicable

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

5,000,0 5,000,0 26,735, 23,688, 3,047,0 Bad provision 20.32% 100.00% 0.00 93.76% 88.60%

00.00 00.00 388.74 311.00 77.74Account preparation

its

Medium:

by combination

19,607, 1,586,1 18,021, 1,778,6 432,181 1,346,4 Bad provision 79.68% 8.09% 6.24% 24.30%

172.55 67.01 005.54 61.34 .95 79.39Account preparation

its

Medium:

Aging group 19,607, 1,586,1 18,021, 1,778,6 432,181 1,346,4

79.68% 8.09% 6.24% 24.30%

Combined 172.55 67.01 005.54 61.34 .95 79.39

24,607, 6,586,1 18,021, 28,514, 24,120, 4,393,5Total 100.00% 26.77% 100.00% 84.59%

172.55 67.01 005.54 050.08 492.95 57.13

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Provision for bad debts is made on an individual basis: Provision for bad debts is made individually for a significant amount

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Zhejiang Golden Times

Due to litigation, Wuwu Technology Co., Ltd. is expected to 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 100.00%

legal recovery

Division

Tianfu environmental protection biology

15,235,388.7 12,188,311.0

Science and Technology (Jiangsu) has

4 0

Ltd.

Guizhou Jiyi Protection

6,500,000.00 6,500,000.00

supplies co., ltd.

26,735,388.7 23,688,311.0

Total 5,000,000.00 5,000,000.00

4 0

Provision for bad debts based on combinations: Provision for bad debts based on aging combinations

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year 17,970,883.42 180,538.82 1.00% 1 to 2 years 22,117.02 1,327.02 6.00% 2 to 3 years 45,000.00 6,750.00 15.00% 3 to 4 years 7,751.42 3,100.57 40.00% 4 to 5 years 556,567.00 389,596.91 70.00% More than 5 years 1,004,853.69 1,004,853.69 100.00% Total 19,607,172.55 1,586,167.01

Description of what this combination is based on:

None.

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Provision for bad debts Expected credit in the next 12 months Total

Loss (no credit deduction has occurred Loss (credit deduction has occurred)

loss

value) value)

Balance on January 1, 2025 5,406.73 21,172.44 24,093,913.78 24,120,492.95 Balance on January 1, 2025

In this issue

Provision for the current period 243,383.08 921,905.43 1,165,288.51 Reversal for the current period 1,956.54 1,956.54 Other changes -68,250.99 -17,888.88 -18,611,518.04 -18,697,657.91 As of December 31, 2025

180,538.82 1,327.02 6,404,301.17 6,586,167.01

Basis for division of each stage and provision ratio for bad debts

has increased significantly but no credit impairment has occurred; the third stage refers to other receivables that have suffered credit impairment.

The proportion of provision for bad debt provisions at the end of the first stage is 1%; the proportion of provision for bad debts at the end of the second stage is 6%; the proportion of provision for bad debts at the end of the third stage is

96.83%.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Changes in book balances with significant changes in loss provision during the current period

□Applicable ☑Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Opening balance Ending balance Provision Recovery or reversal Write-off or write-off Others

23,688,311.0

Single provision 18,688,311.0 5,000,000.00 Aging combination 432,181.95 1,165,288.51 1,956.54 -9,346.91 1,586,167.01 -

24,120,492.9

Total 1,165,288.51 1,956.54 18,697,657.9 6,586,167.01

Note: Other changes are caused by the disposal of subsidiaries and the transfer of creditor's rights.

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

None.

Other receivables actually written off in the current period

Unit: yuan item write-off amount

Important write-offs of other receivables:

Unit: Whether the Yuan amount is paid by the related unit. Nature of other receivables. Write-off amount. Reason for write-off. Write-off procedures performed.

transaction generated

Instructions for writing off other receivables:

None.

Other receivables with the top five closing balances based on debtors

Unit: Yuan accounted for other receivable period

Name of the unit with the ending balance of bad debt provision Nature of the payment Ending balance Aging Total ending balance

Proportion

Zhongguan New Energy Technology

Equity transfer amount 13,994,330.00 Within 1 year 56.87% 139,943.30 (Shenzhen) Co., Ltd.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Division

Zhejiang Golden Age Biology

Technology transfer payment 5,000,000.00 More than 5 years 20.32% 5,000,000.00 Technology Co., Ltd.

Nanhua Peace Hospital

Management (Hunan) Co., Ltd. Current account 803,000.00 More than 5 years 3.26% 803,000.00 Company

Chen Xiaoxue Compensation 550,000.00 Within 1 year 2.24% 5,500.00 Sany Truck Crane

Deposit security deposit 500,000.00 Within 1 year 2.03% 5,000.00 Machinery Co., Ltd.

Total 20,847,330.00 84.72% 5,953,443.30

Prepayment

(1) Prepayments are listed based on aging

Unit: Yuan Ending balance Beginning balance

Aging

Amount Ratio Amount Ratio

Within 1 year 15,141,893.53 96.88% 2,741,335.09 70.56% 1 to 2 years 90,597.93 0.58% 652,191.54 16.79% 2 to 3 years 992.04 0.01% 103,645.13 2.67% More than 3 years 396,771.68 2.53% 387,941.16 9.98% Total 15,630,255.18 3,885,112.92

Explanation of the reasons why prepayments with an aging of more than 1 year and important amounts are not settled in a timely manner:

None.

(2) Prepayments with the top five closing balances by prepayment objects

Ratio to the total year-end balance of prepayments Unit name Year-end balance

Example(%)

Lengshuijiang Runcheng New Material Technology Co., Ltd. 11,120,213.70 71.15 Sany Group Co., Ltd. (Note) 1,399,414.86 8.95 Hunan Chengyu New Energy Technology Co., Ltd. 1,285,416.72 8.22 Shenzhen Xinzong Shenyin Technology Co., Ltd. 316,800.00 2.03 Ningxiang Wolong Pump and Valve Co., Ltd. 143,150.00 0.92 Total 14,264,995.28 91.27

Note: Sany Group Co., Ltd. includes all entities under the control of Sany Group Co., Ltd.

Other notes:

None.

Inventory

Whether the company needs to comply with the real estate industry’s disclosure requirements

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Inventory classification

Unit: Yuan Ending balance Beginning balance

Provision for inventory decline Provision for inventory decline

Project

Book balance or contract performance costs Book value Book balance or contract performance costs Book value

This impairment provision This impairment provision

Raw materials 3,049,407.38 117,562.38 2,931,845.00 1,498,608.36 150,240.28 1,348,368.08 Products in progress 2,070,607.14 2,070,607.14

19,505,490.1 19,360,642.9 Inventory goods 8,406,903.05 4,241.95 8,402,661.10 144,847.21

7 6 Goods shipped 5,171,821.83 5,171,821.83 3,281,073.80 608,849.56 2,672,224.24 Entrusted processing materials 88,677.82 88,677.82

Low-value consumables 395,549.21 371,711.86 23,837.35

10,653,582.9 10,653,582.9 Engineering construction

5 5

18,787,417.2 18,665,612.8 35,334,304.4 34,058,655.5Total 121,804.33 1,275,648.91

2 9 9 8

(2) Provision for inventory depreciation and provision for impairment of contract performance costs

Unit: Yuan Increase amount in this period Decrease amount in this period

Item Beginning balance Closing balance

Provision Others Reversal or write-off Others

Raw materials 150,240.28 114,413.40 147,091.30 117,562.38 Inventory goods 144,847.21 4,241.95 144,847.21 4,241.95 Low-value consumables 371,711.86 371,711.86 0.00 Goods shipped 608,849.56 608,849.56 0.00 Total 1,275,648.91 118,655.35 1,272,499.93 121,804.33

None.

Provision for inventory decline in value on a group basis

Unit: End of the period Beginning of the period

Portfolio name Provision for decline in price Provision for decline in price Provision for decline in price Closing balance Provision for decline in price Opening balance Provision for decline in price

Proportion Proportion The standard for accruing inventory depreciation provisions based on the combination

Other current assets

Unit: Yuan

Item Ending balance Beginning balance

Value-added tax input tax to be deducted 15,726,737.24 9,229,351.92 Prepaid expenses 3,628,550.32 2,620,977.11 Prepaid taxes 163,679.63

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Total 19,355,287.56 12,014,008.66Other instructions:

None.

Other non-current financial assets

Unit: Yuan

Item Ending balance Beginning balance

Classification is measured at fair value with changes included in the current period.

financial assets with period profits and losses

Including: Trust products 100,000,000.00 Total 100,000,000.00 Other instructions:

None.

Fixed assets

Unit: Yuan

Item Ending balance Beginning balance

Fixed assets 165,435,181.41 13,494,475.46 Fixed assets liquidation

Total 165,435,181.41 13,494,475.46

(1) Fixed assets

Unit: Yuan

Items Houses and buildings Machinery and equipment Transportation tools Office equipment and others Total

1. Original book value:

Opening balance 3,983,461.25 21,103,697.99 25,087,159.24 2. Increase in this period

80,544,420.01 78,974,264.71 434,029.44 6,596,584.81 166,549,298.97Amount

(1) Purchase

71,283.15 855,632.26 926,915.41

(2) in

5,481,990.17 17,352,792.63 6,987.10 22,841,769.90 Construction project transfer

(3) Enterprise

75,062,429.84 61,621,472.08 362,746.29 5,733,965.45 142,780,613.66 Increase in business combination

Reduction in this period

23,826.55 392,598.91 2,491,118.16 2,907,543.62 Amount

(1) place

23,826.55 452,267.96 476,094.51 Disposal or scrapping

(2) Disposal of subsidiaries 392,598.91 2,038,850.20 2,431,449.11

Closing balance 80,544,420.01 78,950,438.16 4,024,891.78 25,209,164.64 188,728,914.59

2. Accumulated depreciation

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Opening balance 2,278,641.19 9,314,042.59 11,592,683.78 2. Increase in this period

4,534,939.10 5,998,528.29 484,335.74 2,502,840.52 13,520,643.65 Amount

(1) Count

501,734.59 1,074,990.15 379,537.90 2,190,466.84 4,146,729.48

(2) Business merger increases

4,033,204.51 4,923,538.14 104,797.84 312,373.68 9,373,914.17 plus

Reduction in this period

377.26 288,892.02 1,561,859.72 1,851,129.00 Amount

(1) place

377.26 433,531.35 433,908.61 Disposal or scrapping

(2) Disposal of subsidiaries 288,892.02 1,128,328.37 1,417,220.39 4. Closing balance 4,534,939.10 5,998,151.03 2,474,084.91 10,255,023.39 23,262,198.43

3. Impairment provision

Opening balance

2.Increase in this period

31,534.75 Amount of 31,534.75

(1) Count

31,534.75 31,534.75

Reduction in this period

Amount

(1) place

dispose or scrap

Closing balance 31,534.75 31,534.75

4. Book value

Closing accounts

76,009,480.91 72,952,287.13 1,550,806.87 14,922,606.50 165,435,181.41Value

Opening accounts

1,704,820.06 11,789,655.40 13,494,475.46 value

(2) Fixed assets whose property rights certificates have not been obtained

Unit: Yuan

Item Book value Reason for not completing the property rights certificate

Jinhong New Material Factory 4,767,322.38 Not yet processed

Jinda Road Environmental Protection Office Building 2,992,788.40 Not yet processed

Jinda Road Environmental Protection Factory Building 1# 3,436,658.94 Not yet processed

Jinda Road Environmental Protection Factory Building 2# 3,292,067.25 Not yet processed

Jinda Road Environmental Protection Factory Building 3# 5,097,297.40 Not yet processed

Jinda Road Environmental Protection Factory Building 4# 3,037,879.73 Not yet processed

Jinda Road Environmental Protection Factory Building 5# 711,434.77 Not yet processed

Other notes:

None.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Projects under construction

Unit: Yuan

Item Ending balance Beginning balance

Construction in progress 108,075.33

Total 108,075.33

(1) Projects under construction

Unit: Yuan

Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value Other projects 108,075.33 108,075.33

Total 108,075.33 108,075.33

(2) Impairment testing of projects under construction

□Applicable ☑Not applicable

Right-of-use assets

(1) Right-of-use assets

Unit: Yuan

Item Houses and buildings Machinery and equipment Total

1. Original book value

Opening balance 22,914,264.42 22,914,264.42 2. Increase in the current period 405,697.45 405,697.45 Rental 405,697.45 405,697.45 3. Decrease in the current period 6,711,465.01 6,711,465.01 (1) Disposal of subsidiaries 3,033,627.60 3,033,627.60 (2) Lease withdrawal (lease expiration) 2,221,786.39 2,221,786.39 (3) Lease change 1,456,051.02 1,456,051.02 4. Closing balance 16,202,799.41 405,697.45 16,608,496.86

2. Accumulated depreciation

Balance at the beginning of the period 10,353,805.82 10,353,805.82 2. Increase in the current period 2,781,311.70 45,077.49 2,826,389.19

(1) Provision 2,781,311.70 45,077.49 2,826,389.19

Decrease amount in this period 1,249,461.04 1,249,461.04

(1) Disposal 860,552.79 860,552.79 (2) Lease cancellation (lease expiration) 388,908.25 388,908.25 4. Closing balance 11,885,656.48 45,077.49 11,930,733.97

3. Impairment provision

Opening balance
Increase amount in this period

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Provision

Reduction amount in this period

(1) Disposal

Ending balance

4. Book value

Book value at the end of the period 4,317,142.93 360,619.96 4,677,762.89 2. Book value at the beginning of the period 12,560,458.60 12,560,458.60

(2) Impairment testing of right-of-use assets

□Applicable ☑Not applicable

Other notes:

None.

Intangible assets

(1) Intangible assets

Unit: yuan project Land use rights Patent rights Non-patented technology Trademark rights Software Total

1. Original book value

Balance at the beginning of the period

7,558,136.85 82,466.02 1,304,155.81 8,944,758.68 amount

Increase in this period 34,229,633.3 21,155,222.8 56,623,903.4

115,742.57 1,123,304.69

Add amount 0 5 1 (1

1,123,304.69 1,123,304.69) Purchase

)Internal R&D

34,229,633.3 21,155,222.8 55,500,598.7) Increased by business combination 115,742.57

0 5 2 plus

Less for this period

37,623.76 37,623.76 Less amount

37,623.76 37,623.76) Disposal

Ending balance 34,229,633.3 21,237,688.8 65,531,038.3

7,636,255.66 2,427,460.50

Uh 0 7 3

2. Accumulated amortization

Balance at the beginning of the period

5,839,266.85 53,763.17 1,194,642.44 7,087,672.46

2.Increase in this period

1,813,965.23 188,237.35 569,910.66 71,599.99 2,643,713.23 plus amount

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

170,308.84 187,904.02 8,734.44 71,599.99 438,547.29) Provision

(2) Enterprise partnership

1,643,656.39 333.33 561,176.22 2,205,165.94 and increase

Less for this period

11,648.58 11,648.58 Less amount

11,648.58 11,648.58) Disposal

End of period balance

1,813,965.23 6,015,855.62 623,673.83 1,266,242.43 9,719,737.11

3. Impairment provision

Balance at the beginning of the period

2.Increase in this period

Add amount

) accrual

Less for this period

small amount

) disposal

End of period balance

4. Book value

Closing accounts 32,415,668.0 20,614,015.0 55,811,301.2

1,620,400.04 1,161,218.07 Face value 7 4 2 2. Opening account

1,718,870.00 28,702.85 109,513.37 1,857,086.22 Face value

At the end of the current period, the intangible assets formed through the company's internal research and development accounted for 0.00% of the balance of intangible assets.

(2) Data resources recognized as intangible assets

□Applicable ☑Not applicable

(3) Impairment testing of intangible assets

□Applicable ☑Not applicable

Goodwill

(1) Original book value of goodwill

Unit: yuan Name of invested unit Increase in this period Decrease in this period

Goodwill is called or formed. Opening balance formed by business combination. Closing balance

Other disposal of other matters

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Loudi Jinhong New Materials

4,243,683.76 4,243,683.76 Material Co., Ltd.

Hunan Nanhua Biotechnology

1,983,226.77 1,983,226.77 Technology Co., Ltd.

Nanhua Peace Hospital

23,152,356.4 23,152,356.4

Management (Hunan)

1 1

Ltd.

25,135,583.1 23,152,356.4

Total 4,243,683.76 6,226,910.53

8 1

(2) Goodwill impairment provision

Unit: Yuan Name of the invested unit Increase in the current period Decrease in the current period is called goodwill formed Opening balance Ending balance Provision Disposal

matters

Nanhua Peace Hospital

23,152,356.4 23,152,356.4

Management (Hunan)

1 1

Ltd.

23,152,356.4 23,152,356.4

total

1 1

(3) Relevant information about the asset group or asset group combination where the goodwill is located

The composition of the asset group or portfolio to which it belongs and

Name, operating segment and basis. Is the basis consistent with previous years?

The company is identified as an asset group; Hunan Nanhua Biotechnology Co., Ltd. Hunan Nanhua Biotechnology Co., Ltd. is based on: it can independently generate cash inflows and goodwill-related asset groups

Recognize the company as an asset group; Loudi Jinhong New Materials Co., Ltd. merges with Loudi Jinhong New Materials Co., Ltd.

Basis: A reputation-related asset group that can independently generate cash inflows

Changes in asset group or asset group combination

Name Composition before the change Composition after the change Objective facts and basis for the change Other explanations

None.

Long-term deferred expenses

Unit: Yuan

Item Beginning balance Increase in the current period Amortization amount in the current period Other decreases Closing balance Decoration fee 13,020,938.09 3,925,241.78 9,095,696.31 Single customer return to agency

1,852,919.71 14,011.20 128,737.59 1,738,193.32 Storage fee

Contract energy management services

60,875,293.75 9,657,446.45 19,888,604.59 50,644,135.61 Service costs

Less long-term deferred expenses

-2,000,128.45 -2,388,261.09 -4,388,389.54 value preparation

Total 73,749,023.10 7,283,196.56 23,942,583.96 46,255,746.07 10,833,889.63Other instructions:

Note: Other decreases are due to the disposal of subsidiaries.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets without offset

Unit: Yuan Ending balance Beginning balance

Project

Deductible temporary differences Deferred income tax assets Deductible temporary differences Deferred income tax assets Asset impairment provision 15,668,624.69 3,858,901.51 6,694,919.59 1,635,583.45 Deductible losses 5,083,908.00 1,270,977.00

Lease liabilities 5,186,242.69 936,489.40 14,058,298.84 2,549,053.33 Deferred income from government subsidies

13,161,924.84 3,290,481.21

tax difference

Total 39,100,700.22 9,356,849.12 20,753,218.43 4,184,636.78

(2) Deferred income tax liabilities without offset

Unit: Yuan Ending balance Beginning balance

Project

Taxable temporary differences, deferred income tax liabilities, taxable temporary differences, deferred income tax liabilities due to business combinations involving enterprises not under common control

24,608,151.88 6,152,037.97 939,797.80 140,969.67 Added value of assets

Right-of-use assets 4,084,357.95 738,583.65 12,560,458.60 2,279,610.43Total 28,692,509.83 6,890,621.62 13,500,256.40 2,420,580.10

(3) Deferred income tax assets or liabilities presented on a net basis after offsetting

Unit: Yuan Deferred income tax assets and liabilities Deferred income tax assets after offset Deferred income tax assets and liabilities Deferred income tax items after offset

Offset amount at the end of the debt period Ending balance of assets or liabilities Offset amount at the beginning of the debt period Deferred income tax assets 648,428.66 8,708,420.46 2,268,866.61 1,915,770.17 Deferred income tax liabilities 648,428.66 6,242,192.96 2,268,866.61 151,713.49

(4) Details of deferred income tax assets not recognized

Unit: Yuan

Item Ending balance Beginning balance

Deductible loss 90,621,711.85 129,591,768.85 Asset impairment provision 7,653,290.09 130,574,858.52 Tax difference on deferred income from government subsidies 13,479,338.61

Changes in fair value 1,573,188.31 Total 111,754,340.55 261,739,815.68

(5) Deductible losses that have not been recognized as deferred income tax assets will expire in the following years

Unit: Yuan

Year Ending amount Beginning amount Remarks

2025 0.00 6,160,499.23

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

2026 14,489,252.41 17,533,377.63

2027 6,233,999.72 16,516,743.39

2028 11,925,824.71 17,558,190.42

2029 8,772,730.43 18,941,731.26

2030 28,536,062.10 7,040,245.57

2031 0.00 27,507,806.21

2032 3,703,275.69 3,696,479.23

2033 11,459,216.51 11,510,431.41

2034 2,444,107.02 3,126,264.50

2035 3,057,243.26

Total 90,621,711.85 129,591,768.85

Other notes:

None.

Other non-current assets

Unit: Yuan Closing balance Beginning balance item

Book balance Impairment provision Book value Book balance Impairment provision Book value Contract assets 40,616.89 6,431.82 34,185.07 Prepaid equipment payment 1,009,654.27 1,009,654.27 671,283.15 671,283.15Total 1,009,654.27 1,009,654.27 711,900.04 6,431.82 705,468.22

Other notes:

None.

Assets whose ownership or use rights are restricted

Unit: Items at the end of the Yuan period and at the beginning of the Yuan period

Book balance Book value Restriction type Restriction situation Book balance Book value Restriction type Restriction situation

Account key Monetary funds guaranteed by letter of credit 3,144.99 3,144.99 Others 30,000.00 30,000.00 Outdated pledge information Security deposit pledge

100,486,0 99,983,63

Notes receivable pledge discount

68.98 8.64

73,740,65 69,219,88 Guaranteed mortgage

Fixed assets mortgage

1.57 7.68 Borrowing

34,229,63 32,415,66 Guaranteed mortgage

Intangible assets mortgage

3.30 8.07 Borrowing

147,265,8 145,793,2

Accounts Receivable Pledge Factoring

61.92 03.30

355,725,3 347,415,5

Total 30,000.00 30,000.00

60.76 42.68

Other notes:

None.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Short-term borrowing

(1) Classification of short-term loans

Unit: Yuan Item Ending balance Beginning balance Mortgage loan 35,000,000.00

Bill discount 100,486,068.98

Factoring loan 134,700,000.00

Interest adjustment 68,323.61

Total 270,254,392.59

Description of short-term loan classification:

Guarantee, mortgage loan

Serial number Guarantor and type of guarantee Collateral Ending balance Hunan Haihong Logistics Group Co., Ltd., Xie Qingliang mentioned Loudi Jinhong Renewable Resources Co., Ltd. Lianyuan City Industrial Real Estate (Xiang 1) provides joint guarantee liability, Loudi Jinhong Renewable Resources has (2023) Lianyuan City Real Estate No. 0000630, Xiang 10,000,000.00 Co., Ltd. provides mortgage guarantee (2023) Lianyuan City Real Estate No. 0000631)

Hunan Haihong Logistics Group Co., Ltd., Hunan Haihong Hunan Haihong Real Estate Co., Ltd. Real Estate Cold House Warrant Certificate No.

2 Real Estate Co., Ltd., Li Tiexiang, and Wu Peng provide joint and several guarantee No. 716001489, Leng Guoyong (2016) No. 13-6-119-2-1-302 10,000,000.00)

Jinda Road Environmental Protection Haihong Logistics Park Warehousing Land (Xiang (2023) Lengshui 3 Li Tiexiang and Wu Peng provide joint and several liability 10,000,000.00 Jiang City Real Estate Rights No. 0004098)

Hunan Haihong Real Estate Co., Ltd. Real Estate Cold House Warrant Certificate Cold Office No.

No. 715000528, Leng Guoyong (2015) No. 13-6-119-2-1-109, Leng Fang Warrant No. 714003662, Leng Guoyong

(2015) No. 13-6-119-2-1-110, Cold House Warrant No. Leng Banzi No. 714003660, Leng Guoyong (2015) No. 13-6-119-2-1-111, Leng Guoyong (2015) No. 13-6-119-2-1-112, Cold House Warrant Leng Banzi No. 715000526, Leng Guoyong (2015) No. 13-6-Hunan Jinhong Renewable Resources Group Co., Ltd., Hunan 119-2-2-First Floor No. 01, Cold House Warrant No. 715000525 Haihong Real Estate Co., Ltd., Hunan Avenue Jinhong Regeneration No., Leng Guoyong (2015) No. 13-6-119-2-2-First Floor No. 02, Leng 4 5,000,000.00 Resource Comprehensive Utilization Co., Ltd., Li Tiexiang, Wu Peng Housing Rights Certificate Leng Banzi No. 715000524, Leng Guoyong (2015) No.

Providing joint and several liability 13-6-119-2-2-No. 03 on the first floor, Cold Room Warrant No. Leng Ban

No. 715000523, Leng Guoyong (2015) No. 13-6-119-2-2-First Floor No. 04, Cold Room Warrant No. 715000522, Leng Guoyong (2 015) No. 13-6-119-2-2-First Floor No. 05, Cold Room Warrant No. 715000521, Leng Guoyong (2015) No. 13-6-119-2- 2-No. 06 on the first floor, Cold Room Warrant No. 715000520, Leng Guoyong (2015) No. 13-6-119-2-2-First floor No. 07, Cold Room Warrant No. 715000519, Leng Guoyong (2015) No. 13-6-

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

119-2-2-No. 08 on the first floor)

Total 35,000,000.00

(2) Overdue short-term borrowings that have not been repaid

The total amount of overdue and unpaid short-term borrowings at the end of this period was RMB 0.00, among which the important overdue and unpaid short-term borrowings are as follows:

Unit: Yuan

Borrowing unit Ending balance Borrowing interest rate Overdue time Overdue interest rate Other instructions:

None.

Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

Item Ending balance Beginning balance

Long-term assets 9,951,825.47 15,024,538.01 Purchased materials 4,313,518.30 69,360,154.72 Others 450,439.83 81,578.51Total 14,715,783.60 84,466,271.24

(2) Important accounts payable that are aged more than 1 year or are overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Other notes:

The Group's accounts payable aged more than one year at the end of the year are mainly payments for materials purchased.

(3) Is there any overdue payment to small and medium-sized enterprises?

Is it a large enterprise?

□Yes ☑No

Other payables

Unit: Yuan

Item Ending balance Beginning balance

Dividends payable 931,102.81 931,102.81 Other payables 7,580,864.72 6,074,563.68 Total 8,511,967.53 7,005,666.49

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Dividends payable

Unit: Yuan

Item Ending balance Beginning balance

Common stock dividends 931,102.81 931,102.81Total 931,102.81 931,102.81Other explanations, including important dividends payable that have not been paid for more than 1 year, the reasons for non-payment should be disclosed:

Dividends payable that have not been paid for more than one year are due to the fact that state-owned shares and legal person shareholders have not yet come to the company to confirm the dividends.

(2) Other payables

List other payables according to the nature of the payment

Unit: Yuan

Item Ending balance Beginning balance

Equity transfer amount 4,862,490.00

Expense transactions 576,635.94 2,820,956.12 Employee expenses payable 471,352.39 509,434.27 Deposit and security deposit 376,694.10 469,695.60 Temporary accounts payable 39,356.09 Others 1,293,692.29 2,235,121.60 Total 7,580,864.72 6,074,563.68

Important other payables aged more than 1 year or overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Other notes:

None.

Contract liabilities

Unit: Yuan

Item Ending balance Beginning balance

Payment for goods and storage fees for stem cell testing 201,445,948.34 185,176,948.66 Total 201,445,948.34 185,176,948.66 Important contract liabilities aged more than 1 year

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Amount and reasons for significant changes in book value during the reporting period

Unit: Yuan

Item Amount of change Reason for change

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Payable to employees’ compensation

(1) Presentation of employee benefits payable

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Short-term salary 5,879,699.03 50,616,585.64 48,776,438.69 7,719,845.98

2. Post-employment benefits-settings

16,744.54 3,588,508.57 3,585,164.84 20,088.27 Withdrawal plan

3. Dismissal benefits 6,136,922.12 6,136,922.12

Total 5,896,443.57 60,342,016.33 58,498,525.65 7,739,934.25

(2) Presentation of short-term remuneration

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Salary, bonus, allowance

5,512,985.71 43,921,684.73 42,023,414.81 7,411,255.63 and subsidies

Employee welfare fees 105,573.79 1,787,919.45 1,848,353.24 45,140.00
Social insurance premiums 7,927.79 2,185,987.60 2,184,224.54 9,690.85 including: medical insurance

6,600.51 1,956,083.99 1,954,361.46 8,323.04 fee

Work injury insurance

683.72 229,903.61 229,863.08 724.25 fee

maternity insurance

643.56 643.56 fee

Housing provident fund 17,669.00 1,941,398.36 1,956,199.36 2,868.00
Trade union funds and employee education

235,542.74 779,595.50 764,246.74 250,891.50 education funds

Total 5,879,699.03 50,616,585.64 48,776,438.69 7,719,845.98

(3) Display of defined contribution plan

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Basic pension insurance 16,100.98 3,438,833.05 3,435,590.65 19,343.38
Unemployment insurance premium 643.56 149,675.52 149,574.19 744.89Total 16,744.54 3,588,508.57 3,585,164.84 20,088.27Other instructions:

None.

Taxes payable

Unit: Yuan

Item Ending balance Beginning balance

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Value-added tax 10,803,182.29 1,024,914.71 Corporate income tax 2,498,308.74 2,575,256.20 Personal income tax 298,422.92 236,554.75 Urban maintenance and construction tax 845,456.42 290,371.90 Education surcharge, local education surcharge 542,045.50 139,893.96 Stamp duty 202,712.55 62,456.00 Water conservancy and hydropower construction fund 128,694.70

Property tax 2,808.00 4,447.62Land use tax 1,890.00 1,890.00Others 34,795.53 101,996.64Total 15,358,316.65 4,437,781.78Other notes:

None.

Non-current liabilities due within one year

Unit: Yuan

Item Ending balance Beginning balance

Long-term borrowings due within one year 12,089,481.81 1,000,000.00 Lease liabilities due within one year 2,711,725.16 3,608,415.22Total 14,801,206.97 4,608,415.22Other notes:

None.

Other current liabilities

Unit: Yuan

Item Ending balance Beginning balance

Output tax to be transferred 12,327,796.48 13,879,559.74 Total 12,327,796.48 13,879,559.74 Increase or decrease in short-term bonds payable:

Unit: yuan per face

Overflow discount

Bond Par Issue Bond Issuance Beginning of Period Value of Current Period End of Period Whether

face value price spread

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Cancellation

information

total

Other notes:

None.

Long-term borrowing

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(1) Classification of long-term loans

Unit: Yuan

Item Ending balance Beginning balance

Mortgage borrowings 64,970,000.00

Credit borrowings 9,000,000.00 minus: long-term borrowings due within one year -12,020,000.00

Total 52,950,000.00 9,000,000.00 Description of long-term loan classification:

Mortgage, guaranteed loan

Serial number Guarantor and guarantee type Collateral Balance at the end of the year

1 Jinhong New Material House Ownership (Hunan 27,860,000.00 Hunan Jinhong Renewable Resources Group Co., Ltd., Hunan Jinhong Circular Economy

2 (2024) Lianyuan City Real Estate 27,830,000.00 Development Co., Ltd., Li Tiexiang, and Wu Peng provide joint and several liability

3 No. 0000689) 9,280,000.00

Total 64,970,000.00 including: principal due within one year 12,020,000.00 Other instructions, including interest rate range:

None.

Lease liabilities

Unit: Yuan

Item Ending balance Beginning balance

Real estate 5,584,929.60 14,058,298.84 Machinery and equipment 362,675.04

Lease liabilities due within one year -2,711,725.16 -3,608,415.22Total 3,235,879.48 10,449,883.62Other notes:

None.

Deferred income

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Ending balance Reason for formation Government subsidies 1,099,026.92 26,699,430.59 1,157,194.06 26,641,263.45 Total profits and losses not yet carried forward 1,099,026.92 26,699,430.59 1,157,194.06 26,641,263.45 --Other instructions:

None.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Share capital

Unit: Yuan Increase or decrease in this change (+, -)

Balance at the beginning of the period Balance at the end of the period Issuance of new shares Bonus shares Conversion of public reserve funds Others Subtotal

330,023,09 330,023,09 Total shares

8.00 8.00Other instructions:

None.

Capital reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Capital premium (equity premium

413,319,770.40 172,695.41 413,147,074.99 price)

Other capital reserves 10,153,099.61 10,153,099.61 Total 423,472,870.01 172,695.41 423,300,174.60 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

The change in capital reserve this year is due to the disposal of minority interests in subsidiaries.

Surplus reserve

Unit: Yuan

Item Beginning balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 34,545,734.18 34,545,734.18 Total 34,545,734.18 34,545,734.18 Description of surplus reserve, including changes in increases and decreases in the current period and explanation of reasons for changes:

None.

Undistributed profits

Unit: Yuan

Projects in this issue Previous issue

Undistributed profit at the end of the previous period before adjustment -550,946,522.17 -531,100,503.82 Undistributed profit at the beginning of the period after adjustment -550,946,522.17 -531,100,503.82 Plus: Net profit attributable to owners of the parent company for the current period

28,828,686.12 -19,846,018.35 profit

Undistributed profits at the end of the period -522,117,836.05 -550,946,522.17 Adjustment of undistributed profits at the beginning of the period: details:

Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its related new regulations, the undistributed profit at the beginning of the period was affected by RMB 0.00.
Due to changes in accounting policies, the undistributed profit at the beginning of the period was affected by RMB 0.00.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by RMB 0.00.
Changes in the scope of consolidation due to the same control affect the undistributed profit at the beginning of the period by RMB 0.00.
The total impact of other adjustments on the undistributed profit at the beginning of the period is 0.00 yuan.

Detailed explanation of the use of capital reserves to cover losses:

None.

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

revenue cost revenue cost

Main business 414,569,517.86 323,822,197.10 134,256,893.46 43,602,304.19 Other businesses 1,370,214.63 320,581.06 190,903.39 205,701.92Total 415,939,732.49 324,142,778.16 134,447,796.85 43,808,006.11

The lower of the company's total audited profit, net profit, and net profit after deducting non-recurring gains and losses during the reporting period is negative.

□Yes ☑No

Breakdown information of operating income and operating costs:

Unit: Yuan Human Cell Test

Energy-saving and environmentally friendly clothing Biomedicine

Segment 1 Segment 2 Testing and Lithium Carbonate Business Others Total Total Services Related Product Sales

storage

Same

Camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp camp

points

Industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry industry

class

Harvest Harvest Harvest Harvest Harvest

72, 17, 221 215 22, 81, 78, 18, 415 324 Industry 6,4 6,0

666 431 ,51 ,63 079 519 566 162 ,93 ,14 67, 44,

,60 ,29 1,2 3,1 ,91 ,85 ,73 ,14 9,7 Category 2,7 170 427

9.0 0.0 04. 52. 3.3 6.9 7.7 8.5 32. 78. Type .09 .81

1 9 62 41 3 8 6 5 49 16 others

people

source

Cell 72, 17, 72, 17, cell 666 431 666 431

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Check ,60 ,29 ,60 ,29

0 0 0 0 0 0 0 0

Measure 9.0 0.0 9.0 0.0 and store 1 9 1 9

store

Festival

Can produce 206 205 206 205,04,13,04,13

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Products 7,9 1,4 7,9 1,4

0 0 0 0 0 0 0 0

Sales 93. 72. 93. 72. Sales 68 89 68 89 Collection

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

enter

EMC

and 4,0 1,8 4,0 1,8 0.0 0.0 53, 32, 0.0 0.0 0.0 0.0 0.0 0.0 53, 32, Cheng 0 0 005 558 0 0 0 0 0 0 005 558 .97 .46 .97 .46 set

Festival

can

produce

11, 11,

Industry 8,3 8,3

098 098

Its 0.0 0.0 48, 0.0 0.0 0.0 0.0 0.0 0.0 48,

,87 ,87

Him 0 0 540 0 0 0 0 0 0 540

3.8 3.8

Serve .00 .00

3 3

service

receive

enter

give birth to

thing

doctor

22, 17, 39, 12, medicine 6,4 6,0

079 103 183 511 phase 0.0 0.0 0.0 0.0 67, 0.0 0.0 44,

,91 ,26 ,17 ,59 off 0 0 0 0 170 0 0 427

3.3 5.0 8.3 7.9 .09 .81

3 6 9 0 items

for sale

Carbon 81, 78, 81, 78, Acid 519 566 519 566

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Lithium ,85 ,73 ,85 ,73

0 0 0 0 0 0 0 0

Business 6.9 7.7 6.9 7.7Service 8 6 8 6

311 320 1,0 1,3 320his 0.0 0.0 ,33 ,58 0.0 0.0 0.0 0.0 58, 0.0 70, ,58his 0 0 1.1 1.0 0 0 0 0 883 0 214 1.0

4 6 .49 .63 6 press

72, 17, 221 215 22, 81, 78, 18, 415 324

6,4 6,0

Battalion 666 431,51,63 079 519 566 162,93,14

67, 44,

Ground ,60 ,29 1,2 3,1 ,91 ,85 ,73 ,14 9,7 2,7

170 427

District 9.0 0.0 04. 52. 3.3 6.9 7.7 8.5 32. 78.

.09 .81

Score 1 9 62 41 3 8 6 5 49 16 categories

its

71, 16, 202 206 19, 19, 17, 14, 327 251 Lake 5,8 5,0

319 873 ,35 ,90 872 186 056 345 ,07 ,68 South 05, 50,

,67 ,73 0,8 3,9 ,62 ,52 ,44 ,56 5,2 9,9 Province 126 723

8.4 0.6 16. 54. 1.2 8.6 1.0 9.2 14. 76. Within .78 .36

3 7 90 55 8 4 7 0 45 43

19, 62, 61, 88, 72, lake 1,3 557 8,7 2,2 662 3,8 993

160 333 510 864 452 South 46, ,55 29, 07, ,04 16, ,70

,38 ,32 ,29 ,51 ,80 provinces 930 9.4 197 292 3.3 579 4.4

7.7 8.3 6.6 8.0 1.7 outside .58 2 .86 .05 1 .35 5

2 4 9 4 3

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

city

field

guest

household

class

Type

its

combine

Same

class

Type

its

press

Business

product

72, 17, 221 215 22, 81, 78, 18, 415 324 turn 6,4 6,0

666 431 ,51 ,63 079 519 566 162 ,93 ,14Let 67, 44,

,60 ,29 1,2 3,1 ,91 ,85 ,73 ,14 9,7 2,7 170 427

9.0 0.0 04. 52. 3.3 6.9 7.7 8.5 32. 78.hours .09 .81

1 9 62 41 3 8 6 5 49 16 rooms

points

class

its

Business

product

(

at 58, 14, 206 205 22, 81, 78, 17, 385 311

6,4 6,0 418 928 ,39 ,29 079 519 566 383 ,80 ,30

67, 44, a ,46,14 9,1 3,7,91,85,73,77 1,1 0,2

170 427 hours 5.6 1.3 47. 90. 3.3 6.9 7.7 2.3 56. 67.

.09 .81 points 5 6 83 13 3 8 6 1 10 15 turns

let

)

serve

service

(14, 15, 10, 30, 12,

2,5 778

at 248 112 339 138 842

03, 0.0 0.0 0.0 0.0 ,37 0.0some ,14 ,05 ,36 ,57 ,51

148 0 0 0 0 6.2 0 a 3.3 6.7 2.2 6.3 1.0

.73 4

Hours 6 9 8 9 1 segment

within

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

mention

supply

)

press

combine

Same

period

limited

points

class

its

press

Pin 72, 17, 221 215 22, 81, 78, 18, 415 324

6,4 6,0

Sales 666 431,51,63 079 519 566 162,93,14

67, 44,

Canal ,60 ,29 1,2 3,1 ,91 ,85 ,73 ,14 9,7 2,7

170 427

Road 9.0 0.0 04. 52. 3.3 6.9 7.7 8.5 32. 78.

.09 .81

Score 1 9 62 41 3 8 6 5 49 16 categories

its

72, 17, 221 215 22, 81, 78, 18, 415 324

6,4 6,0

666 431 ,51 ,63 079 519 566 162 ,93 ,14 straight 67, 44,

,60 ,29 1,2 3,1 ,91 ,85 ,73 ,14 9,7 2,7pin 170 427

9.0 0.0 04. 52. 3.3 6.9 7.7 8.5 32. 78. .09 .81

1 9 62 41 3 8 6 5 49 16 non

straight

72, 17, 221 215 22, 81, 78, 18, 415 324

6,4 6,0

666 431 ,51 ,63 079 519 566 162 ,93 ,14 combined 67, 44,

,60 ,29 1,2 3,1 ,91 ,85 ,73 ,14 9,7 2,7 total 170 427

9.0 0.0 04. 52. 3.3 6.9 7.7 8.5 32. 78. .09 .81

1 9 62 41 3 8 6 5 49 16

Information related to performance obligations:

The company's pre-payments, the company's performance obligations, and the important payment terms. The company's commitment to transfer is the main responsibility.

The item will be refunded to the customer during the period. The type and time of the quantity guarantee. The nature of the goods. Anyone.

account’s monies and related obligations

Other instructions

Information related to the transaction price allocated to the remaining performance obligations:

At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have been signed but have not been performed or have not been completed is RMB 0.00, of which RMB 0.00 is expected to be

Revenue is recognized annually, and revenue of RMB 0.00 is expected to be recognized in the year, and revenue of RMB 0.00 is expected to be recognized in the year.

Information related to variable consideration in the contract:

Major contract changes or major transaction price adjustments

Unit: Yuan

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Item Accounting treatment method Amount of impact on income

Other notes:

Taxes and surcharges

Unit: Yuan

Item Amount for the current period Amount for the previous period

Urban maintenance and construction tax 1,527,177.64 551,473.01 Education fee surcharge 1,090,844.66 393,909.23 Resource tax 0.00 0.00 Property tax 156,935.31 17,790.48 Land use tax 95,878.50 7,560.00 Vehicle and vessel use tax 3,702.54 5,017.50 Stamp duty 272,082.59 118,219.04 Water conservancy construction fund 166,882.94 136,481.45 Total 3,313,504.18 1,230,450.71 Other notes:

Note: For details on the calculation and payment standards of various taxes and surcharges, please see Note 6. Taxes.

Management expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 29,485,089.40 31,651,782.24 Depreciation and amortization expenses 3,947,824.30 6,662,040.84 Intermediary agency and related consulting fees 3,769,730.14 3,911,912.12 Business entertainment expenses 1,851,954.52 3,343,055.44Conference fees 722,081.30 744,084.36Travel expenses 637,549.62 1,059,194.94Car expenses 462,566.42 785,491.97House rent 326,052.82 460,453.06Advertising expenses 111,420.66 227,267.87 Others 2,960,203.24 3,671,331.46 Total 44,274,472.42 52,516,614.30 Other instructions:

Sales expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 12,768,340.16 17,786,274.22 Business entertainment expenses 3,501,151.24 3,483,685.23 Publicity and promotion expenses 1,706,212.31 3,527,531.14 Travel expenses 830,033.10 1,039,574.15Service fee 796,604.46 915,939.19Car fee 718,265.30 1,322,794.39Maintenance fee 503,711.43 961,531.89Transportation and traffic expenses 180,953.25 242,094.03

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Others 1,125,345.90 1,536,541.75Total 22,130,617.15 30,815,965.99Other instructions:

Research and development expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 3,574,638.01 4,660,101.32 Depreciation and amortization 1,294,034.38 1,828,360.80 Direct investment 1,188,554.88 2,015,066.30 Patent technology certification service fee 157,428.88 110,567.03Travel expenses 46,967.39 62,350.96Others 1,401,306.81 1,015,982.20Total 7,662,930.35 9,692,428.61Other instructions:

Financial expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Interest expense 2,002,260.54 794,953.64Interest income -1,130,084.12 -2,026,910.01 Exchange income 61.29 -40.59 Financial institution fees 245,485.57 325,983.44 Lease liability financing expense allocation 585,220.08 667,497.49Total 1,702,943.36 -238,516.03Other instructions:

Other income

Unit: Yuan

Sources of other income Amount incurred in the current period Amount incurred in the previous period

Government subsidies 16,384,793.70 1,485,228.65 Super deduction of value-added tax 17,300.00 43,388.83 Direct reduction of value-added tax 4,778.49

Refund of personal income tax withholding fees 38,968.37 53,355.02 Total 16,445,840.56 1,581,972.50

Gains from changes in fair value

Unit: Yuan

Sources of income from changes in fair value Amount incurred in the current period Amount incurred in the previous period

Trading financial assets -165,128.00 -6,629.00Total -165,128.00 -6,629.00Other instructions:

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Income from long-term equity investments accounted for using the equity method -2,731,360.17 Investment income from disposal of long-term equity investments -682,340.94

Investment income from disposal of trading financial assets 547.40 365,429.59 Trust product income 6,119,452.04 5,594,383.55 Financial management product income 772,261.34 456,237.60 Others 1,664,369.86 4,767.35 Total 7,874,289.70 3,689,457.92Other instructions:

Credit impairment loss

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bad debt losses on notes receivable -450,106.54

Bad debt losses on accounts receivable -12,672,580.09 -12,302,922.85 Bad debt losses on other receivables -1,163,331.97 -10,083,230.02Total -14,286,018.60 -22,386,152.87Other notes:

In the table above, losses are listed with a "-" sign, and gains are listed with a "+" sign.

Asset impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

1. Inventory depreciation losses and contract performance cost deductions

-118,655.35

value loss

Impairment losses on fixed assets -31,534.75 -3,785.06
Others -2,388,261.09 -467,417.61Total -2,538,451.19 -471,202.67Other notes:

In the table above, losses are listed with a "-" sign, and gains are listed with a "+" sign.

Income from asset disposal

Unit: Yuan

Source of asset disposal income Amount incurred in the current period Amount incurred in the previous period

Gains from disposal of non-current assets 4,854.13 155,702.85 Total 4,854.13 155,702.85

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Non-operating income

Unit: Yuan Financial items included in non-recurring gains and losses for the current period Amount incurred in the current period Amount incurred in the previous period

Income from penalties, breach of contract and compensation 486,000.00 486,000.00Others 23,972.29 212.71 23,972.29Total 509,972.29 212.71 509,972.29Other notes:

Non-operating expenses

Unit: Yuan Financial items included in non-recurring gains and losses for the current period Amount incurred in the current period Amount incurred in the previous period

External donation 10,000.00

Loss from scrapping of non-current assets 22,914.29 22,914.29 Penalty, liquidated damages, compensation expenses 559,902.80 6,835.07 559,902.80 Loss from scrapping of inventory 249,399.09 249,399.09 Other expenses 3,018.04 20,980.71 3,018.04Total 835,234.22 37,815.78 835,234.22Other instructions:

Income tax expenses

(1) Income tax expense schedule

Unit: Yuan

Item Amount for the current period Amount for the previous period

Current income tax expense 2,581,007.37 3,978,882.14 Deferred income tax expense -910,675.92 -904,887.01 Total 1,670,331.45 3,073,995.13

(2) Adjustment process of accounting profits and income tax expenses

Unit: Yuan

Item Amount incurred in this period

Total profit 19,722,611.54 Income tax expenses calculated according to statutory/applicable tax rates 4,930,652.89 The impact of different tax rates applicable to subsidiaries 81,429.77 The impact of non-deductible costs, expenses and losses 1,032,526.44 The impact of using deductible losses of unrecognized deferred income tax assets in the previous period -3,862,669.78 Deductible temporary differences or deductible temporary differences that have not been recognized as deferred income tax assets in the current period

764,310.82 Impact of loss

Super deduction for R&D expenses -1,275,918.69 Income tax expense 1,670,331.45 Other notes:

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Cash flow statement items

(1) Cash related to operating activities

Other cash received related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Government subsidies 17,663,778.80 1,525,384.57 Bank interest income 1,130,084.12 2,026,910.01 Return of operating funds 7,050,000.00 Others 509,972.29 566,684.26 Total 19,303,835.21 11,168,978.84 Description of other cash received related to operating activities:

Other cash paid related to operating activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Cash payments 19,286,163.02 29,672,756.34 Late payment fees 459,902.80 6,835.07 Financial fees and handling fees 245,485.57 325,983.44 Total 19,991,551.39 Description of other cash payments related to operating activities of 30,005,574.85:

(2) Cash related to investing activities

Other cash received related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Cash received from acquisition of subsidiary Nanhua Energy Saving Company 2,526,523.35 Total 2,526,523.35 Important cash received related to investment activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Redemption of financial products and proceeds 278,000,000.00 191,433,462.72 Disposal of trading financial assets 1,474,010.96 Total 278,000,000.00 192,907,473.68 Description of other cash received related to investment activities:

Other cash paid related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Net cash paid to dispose of subsidiaries 10,861,942.68

Total 10,861,942.68

Significant cash payments related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Purchase financial products 178,000,000.00 291,100,000.00

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Total 178,000,000.00 291,100,000.00 Description of other cash paid related to investment activities:

(3) Cash related to financing activities

Other cash received related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Cash obtained from discounting bills 246,711,744.13

Total 246,711,744.13

Description of other cash received related to financing activities:

Other cash payments related to financing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Rental of right-of-use assets 4,537,078.65 3,541,590.19 Return of shareholder borrowings and interest 159,785,561.10 Intermediary fees related to issuance of equity securities 400,000.00 Subsidiary capital reduction payment for minority shareholders’ capital investment 250,000.00 Total 4,537,078.65 163,977,151.29 Description of other cash paid related to financing activities:

Changes in various liabilities arising from financing activities

☑Applicable □Not applicable

Unit: Yuan Increase in this period Decrease in this period

Item Opening balance Closing balance Cash change Non-cash change Cash change Non-cash change

263,981,744. 32,152,800.7 25,880,152.3 270,254,392. Short-term borrowings

13 9 3 59 Long-term borrowings (including

10,000,000.0 60,009,481.8 10,000,000.0 65,039,481.8 Due within one year 5,030,000.00

0 1 0 1 long-term borrowing)

Lease liabilities (including

14,058,298.8

1,015,308.57 4,537,078.65 4,588,924.12 5,947,604.64 Lease liabilities due within one year)

24,058,298.8 269,011,744. 93,177,591.1 40,417,230.9 341,241,479. Total 4,588,924.12

4 13 7 8 04

Supplementary information for cash flow statement

(1) Supplementary information for cash flow statement

Unit: Yuan

Supplementary information Amount for the current period Amount for the previous period

1． Adjust net profit to cash flow from operating activities

Net profit 18,052,280.09 -23,925,602.31 plus: asset impairment provision 16,824,469.79 22,857,355.54 Depreciation of fixed assets, depreciation of oil and gas assets

4,146,729.48 2,477,993.74 Depreciation of consumption and productive biological assets

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Depreciation of right-of-use assets 2,826,389.19 3,162,292.76 Amortization of intangible assets 438,547.29 68,879.32 Amortization of long-term prepaid expenses 23,942,583.96 12,179,833.42

Disposal of fixed assets, intangible assets and other

Loss of other long-term assets (income is listed with "-" sign -4,854.13 -155,702.85)

Loss on scrapping of fixed assets (income based on

22,914.29

Fill in the column with "-" sign)

Loss from change in fair value (gain based on

165,128.00 6,629.00 (please fill in the “-” number)

Financial expenses (revenues are filled in with "-"

2,587,541.91 1,462,410.54 columns)

Investment losses (income is filled in with "-"

-7,874,289.70 -3,689,457.92 columns)

Deferred tax assets decreased (increased by

-1,020,953.25 -806,033.31 (Fill in “-”)

Deferred tax liabilities increased (decreased by

110,277.33 -98,817.37 (Fill in “-”)

Decrease in inventory (increase marked with "-"

2,580,818.51 -25,411,464.52 fill in the column)

Decrease in operating receivables (increase in

-173,673,633.53 -37,379,254.33 (please fill in the list with "-")

Increase (decrease) in operating payables

-4,859,296.74 54,044,521.14 (please fill in with "-")

Others

Net cash flow generated from operating activities -115,735,347.51 4,793,582.85 2. Major investments and financing that do not involve cash receipts or payments

Activities

debt to capital

Convertible corporate bonds due within one year

Financing leased fixed assets

3． Net changes in cash and cash equivalents:

Closing balance of cash 346,765,025.12 207,333,146.93 Less: Opening balance of cash 207,333,146.93 493,781,075.40 Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents 139,431,878.19 -286,447,928.47

(2) Net cash paid in the current period to acquire subsidiaries

Unit: Yuan

Amount

Cash or cash equivalents paid in the current period for business mergers occurred 73,762,410.00, of which:

Loudi Jinhong New Materials Co., Ltd. 73,762,410.00 Less: Cash and cash equivalents held by the company on the date of purchase 12,531,280.11

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Among them:

Loudi Jinhong New Materials Co., Ltd. 12,531,280.11 including:

Net cash paid to obtain subsidiaries 61,231,129.89 Other instructions:

(3) Net cash received from disposal of subsidiaries in the current period

Unit: Yuan

Amount

Cash or cash equivalents received from disposal of subsidiaries in the current period 5,949,589.44, including:

Nanhua Heping Hospital Management (Hunan) Co., Ltd. 5,949,589.44 Less: Cash and cash equivalents held by the company on the date of loss of control 16,811,532.12 including:

Nanhua Heping Hospital Management (Hunan) Co., Ltd. 16,811,532.12 including:

Net cash received from disposal of subsidiaries -10,861,942.68 Other notes:

(4) Composition of cash and cash equivalents

Unit: Yuan

Item Ending balance Beginning balance

Cash 346,765,025.12 207,333,146.93 Including: Cash on hand 2,699.06 2,760.35 Bank deposits that can be used for payment at any time 346,038,511.52 206,540,039.76 Other monetary resources that can be used for payment at any time

723,814.54 790,346.82 gold

Balance of cash and cash equivalents at the end of the period 346,765,025.12 207,333,146.93

(5) Situations where the scope of use is limited but still represents cash and cash equivalents

Unit: Yuan Item Amount for the current period Amount for the previous period The reason why the raised funds are still cash and cash equivalents is subject to the supervision of China CITIC Bank Co., Ltd.

Changsha Branch, Western Securities Company and the funds raised 24,180.47

The company is supervised by three parties, and the company can pay at any time

Therefore, the total cash and cash equivalents criteria are met 24,180.47

(6) Monetary funds that are not cash and cash equivalents

Unit: Yuan Items that are not cash and cash equivalents Amount for the current period Amount for the previous period

Reason

Others 3,144.99 The key account information is out of date and its use is subject to

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

limited

Letter of credit deposit pledge, using the letter of credit deposit 30,000.00

Total limit 3,144.99 30,000.00Other instructions:

Foreign currency monetary items

(1) Foreign currency monetary items

Unit: Yuan

Item Foreign currency balance at the end of the period Conversion exchange rate Monetary funds converted into RMB at the end of the period 2,699.06 Including: US dollars 384.00 7.0288 2,699.06 Euros

Hong Kong dollar

Accounts receivable

Of which: US dollars

Euro

Hong Kong dollar

long term borrowing

Of which: US dollars

Euro

Hong Kong dollar

Other notes:

Leasing

(1) The company serves as the lessee

☑Applicable □Not applicable

Variable lease payments not included in the measurement of lease liabilities

□Applicable ☑Not applicable

Simplified treatment of short-term leases or lease payments for low-value assets

☑Applicable □Not applicable

The simplified short-term lease expense is 431,011.45 yuan; the simplified low-value asset lease expense is 84,243.11 yuan; cash flow related to the lease

The total amount paid was 5,070,186.77 yuan.

Situations involving sale and leaseback transactions

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(2) The company as the lessor

Operating lease as lessor

☑Applicable □Not applicable

Unit: Yuan Including: Variable lease items not included in lease receipts Lease income

Payment related revenue

Lease income 286,642.20

Total 286,642.20

Finance lease as lessor

□Applicable ☑Not applicable

Undiscounted lease payments for each of the next five years

□Applicable ☑Not applicable

Reconciliation of undiscounted lease receipts and net lease investment

(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor

□Applicable ☑Not applicable

8. R&D expenditures

Unit: Yuan

Item Amount for the current period Amount for the previous period

R&D projects that meet capitalization conditions

Unit: Yuan Increase amount in this period Decrease amount in this period

Item Opening balance Internal development Confirmed as N/A Transferred to current period Closing balance Others

Expenditure tangible assets Profit and loss

total

Significant Capitalized R&D Projects

Estimated economic benefits when capitalization begins Specific projects to begin capitalization R&D progress Estimated completion time

Production method Point entity based on development expenditure impairment provision

Unit: Yuan

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Item Opening balance Increase in the current period Decrease in the current period Ending balance Impairment test situation

Important outsourced research projects

The criteria for judging capitalization or expense and the specific way in which economic benefits are expected to be generated based on the name of the project.

According to

Other notes:

None.

9. Changes in consolidation scope

Business merger not under common control

(1) Business mergers not under common control that occurred during the current period

Unit: Yuan

Purchase date to Purchase date to Purchase date to the purchased party Equity acquisition Equity acquisition Equity acquisition Equity acquisition Equity acquisition Purchased at the end of the period Acquired at the end of the period Acquired at the end of the period Purchase date

Name Time Point Cost Proportion Method Determination basis Buyer’s receipt Buyer’s net Buyer’s cash

Income Profit Cash flow Loudi Jinhong 2025 2025 Paid to -

78,624,9 288,069, 2,331,21

The new material has a transfer price of 55.00% on September 30 and a price of 90,719,6 on September 30.

00.00 942.05 0.93

Co., Ltd. Day Day Delivered 53.19 Other instructions:

None.

(2) Merger costs and goodwill

Unit: Yuan

Merger costs

--Cash 78,624,900.00 --Fair value of non-cash assets

--Fair value of debt issued or assumed

--Fair value of equity securities issued

--Fair value of contingent consideration

--The fair value of the equity held before the purchase date on the purchase date

--Others

Total merger cost 78,624,900.00 Less: fair value share of identifiable net assets acquired 74,381,216.24 Goodwill/merger cost less than the fair value share of identifiable net assets acquired

4,243,683.76 amount

Method for determining the fair value of merger costs:

The fair value of the combined net assets is determined based on the valuation results determined by Beijing Zhuoxin Dahua Asset Appraisal Co., Ltd. according to the asset-based valuation method.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Description of contingent consideration and its changes

According to the performance commitment stipulated in 7.1 of the "Equity Transfer and Capital Increase Agreement of Loudi Jinhong New Materials Co., Ltd." signed in September 2025 between the Company (Party A) and Hunan Jinhong Renewable Resources Group Co., Ltd. (Party B) and Loudi Jinhong New Materials Co., Ltd. (Party C, the target company), during the performance commitment period, the annual operating income of Jinhong New Materials (the target company) will not be less than 250 million yuan, of which In 2025, the operating income from the delivery date to December 31, 2025 will be no less than 250 million yuan; in 2025, from the delivery date to December 31, 2025, the target company's non-net profit deduction will be no less than 1 million yuan. In any year of 2026, 2027, and 2028, the target company's non-net profit deduction will not be negative and the average non-net profit deduction for the three years will not be less than 8 million yuan. This period is the first commitment period, and the target company has completed its performance commitments for operating income and net profit attributable to the parent company.

The main reasons for the formation of large amounts of goodwill:

Other notes:

(3) The identifiable assets and liabilities of the purchased party on the purchase date

Unit: Yuan

Fair value on the date of purchase Book value on the date of purchase

Assets: 340,396,420.04 315,198,103.27 Monetary funds 12,531,280.11 12,531,280.11 Accounts receivable 73,691,782.62 73,691,782.62 Inventory 26,362,428.07 26,362,428.07 Fixed assets 133,425,403.80 131,282,643.86 Intangible assets 53,866,893.41 30,811,336.58 Construction in progress 19,512,261.87 19,512,261.87 Liabilities: 185,775,824.37 179,476,245.17 Loans 117,702,351.25 117,702,351.25 Accounts payable 35,940,384.89 35,940,384.89 Deferred income tax liabilities 6,299,579.20

Deferred income 21,529,430.59 21,529,430.59 Net assets 154,620,595.67 135,721,858.10 Less: minority shareholders’ equity 19,382,020.69 19,277,152.95 Net assets acquired 135,238,574.98 116,444,705.15 Method for determining the fair value of identifiable assets and liabilities:

Continuously calculate the fair value of identifiable assets and liabilities on the purchase date with reference to the valuation base date of the valuation agency.

Contingent liabilities of the purchased party assumed in a business combination:

None.

Other notes:

(4) Gains or losses arising from the remeasurement of equity held before the purchase date at fair value

Is there any transaction that realizes the business combination step by step through multiple transactions and obtains control during the reporting period?

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 annual report □Yes ☑No

(5) Relevant explanation that the merger consideration or the fair value of the acquiree’s identifiable assets and liabilities cannot be reasonably determined on the acquisition date or at the end of the current period of merger.

None.

(6) Other instructions

None.

Merger of enterprises under common control
Reverse purchase

Basic information of the transaction, the basis for the transaction to constitute a reverse purchase, whether the assets and liabilities retained by the listed company constitute business and the basis for it, the determination of the merger cost, the amount of equity adjustment when dealing with equity transactions and its calculation:

Disposal of subsidiaries

Are there any transactions or events that result in the loss of control of subsidiaries during this period?

☑Yes □No

Unit: yuan disposal loss

Control with original price

Zigong and Chu Quanzhi

Loss Loss Corporate Stock Investment According to Nikkei

Control Control investment is fair and financial

power of power

due loss of value

Loss Loss Loss Loss Rihe Rihe Guan

Merge Control Resurface

Control Control Control Loss of control Consolidation of financial rights Consolidation of financial rights of other subsidiaries Measurement of balance sheet

Power time Power time Control time Financial report Comprehensive company name report Daily remaining shares

Point of Point Point of Rights Point of Surface Surface Surface Income is called Level Remaining Shares Equity Rights Public

Disposal Disposal Disposal Time Judgment Surplus Surplus Transfer in

The right to produce a fair price

The price ratio method is based on the profit of the remaining shares invested in the sub-proportion.

Profit and loss company with rights obtained or determined

Book fair or retained equity loss method

value value deposit share and owner

It’s a huge benefit. I need to leave.

Amount

The difference is set

Nam Hwa

peace

Hospital 2025

19,99 Control -

Management 52.00 years 10

1,900 Sale Rights transfer 682,3 0.00% 0.00 0.00 0.00 0 0.00 (Lake % Month 31

.00 Shift 40.94

south) day

limited

company

Other notes:

None.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Is there any situation where investments in subsidiaries are disposed of step by step through multiple transactions and control is lost in the current period?

□Yes ☑No

Changes in the scope of consolidation due to other reasons

Explain the changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their related circumstances:

None.

Others

None.

10. Interests in other entities

Interests in subsidiaries

(1) Composition of enterprise groups

Unit: Yuan

Shareholding ratio Subsidiary name Registered capital Main place of business Registration place Nature of business Acquisition method Direct indirect biological resources,

Changsha Gaoxinkai Stem Cell and Immunotherapy

Immune cell storage in Yueluxi, the outbreak area

Hunan Boyikang

Avenue 1698 and biotransformation

Citizen Stem Cell Group 10,000,000 Changsha, Hunan Province

Haolugu Technology Medical Technical Services 100.00% 0.00% Establishment of Weaving Engineering Co., Ltd. .00 City

Innovation and Entrepreneurship Park Service, Makeup

Responsible company

Building B1, 3rd floor, food and health care

Room 303 Products and biological products

sales of products

stem cell biology

Changsha High-Tech Industrial Development Zone in the medical field

Nanhua Stem Cell Development Area Yueluxi Basics and Applications

Regenerative Medicine Pro Avenue 1698 Research, Makeup

50,000,000 Changsha, Hunan Province Non-identical control bed transformation research Haolugu Technology Products, skin care products 100.00% 0.00%

.00 Production and agency of the Municipal Enterprise Merger Center Co., Ltd. Innovation and Entrepreneurship Park

Ren company management and sales on the 3rd floor of Building B1,

305 Medical device sales

for sale

Hunan Nanhuasheng 6,000,000. Changsha, Hunan Province Changsha High-tech Development Biological resources, non-common control

80.00% 0.00% Biotechnology Co., Ltd. 00 City Development District Yuelu West Stem Cell and Immunotherapy Enterprise Merger

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Company Avenue 1698 Immune cell storage number Lugu Technology and Biotransformation Innovation and Entrepreneurship Park Medical Technology Service Building C Room 201 Sales of services, biological products, cosmetics and sanitary products, and health care products

biological resources,

Stem cell and immune cell storage and development area in Changsha, Yuelu West, and biotransformation, Hunan Aishiwei

10,000,000 1698 Changsha Avenue, Hunan Province Medical Technology Services Non-common Controller Biotechnology 0.00% 60.00% .00 City Haolugu Technology Services, Biosystems Enterprise Merger Co., Ltd.

Innovation and Entrepreneurship Park North side of Building B of products and cosmetics, as well as sales of sanitary products and health care products

Health food sales, bio-based

Materials technology research and development, Nanchang City, Jiangxi Province high-tech services, development, technology industry development consulting, transfer, transfer, 10,000,000 Nanchang, Jiangxi Province

For the people's livelihood engineering No. 269 North Road Promotion, human body 0.00% 45.00% Establishment.00 City

Cheng Co., Ltd. Jiangxi High-Level Stem Cell Technology Talent Industrial Park Development and Application House Building No. 5, Cell Technology R&D and Application, Medical Research and Experimental Development

exhibition

Changsha Furong Energy Saving and Environmental Protection Production Zone Zhanggongling Long Product and Lighting Equipment Hunan Nanhua Festival

20,000,000 Changsha Ping High-tech Park, Hunan Province Equipment, lighting equipment, non-identical control energy environmental protection technology 51.00% 0.00% .00 Hunan Jindan Materials, power generation equipment in the city Enterprise Merger Co., Ltd.

Science and Technology Entrepreneurship Equipment, Electric Power Equipment Building A Building No. 7 Equipment, Electrical Appliances

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

R&D, production and sales of layer materials and related intelligent systems; transformation and installation of energy-saving equipment (excluding special equipment) and related technology development, technical services and technical consulting; management and leasing of energy-saving and environmentally friendly products and equipment. (Projects that require approval according to law can only be carried out with the approval of relevant departments) Licensed projects: urban domestic waste operational services; road cargo transportation (not Changsha High-tech Development)

Contains dangerous goods shipping area Dongfanghong

Things); Online Street Yuelu West

Nanhua Yuanfang Data Processing and Avenue 1698

(Hunan) Environmental Protection 10,000,000 Changsha, Hunan Province Transaction Processing Business Number Changsha High-tech 0.00% 26.01% Establishment of Science and Technology Co., Ltd. .00 Municipal Affairs (Business Development Zone Lugu

Division Electronic Commerce

Science and technology innovation

Service); Building 3, B1, No. 1 Industrial Park

Class value-added telecommunications building 308

business. (Projects that require approval according to law can only be launched after approval by relevant departments.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Specific business projects are subject to approval documents or licenses from relevant departments) General projects: supply chain management services; sales of construction materials; sales of metal materials; processing of non-metal scrap and debris; recycling of productive scrap metal; processing of renewable resources; recycling of renewable resources (except productive scrap metal); sales of renewable resources; sales of wood; development of artificial intelligence application software; research and development of resource recycling technology; business management; software development; Internet of Things technology services; Internet of Things technology research and development; computer system services; network technology services; information technology consulting services; technical services, technology

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Technology development, technology consulting, technology exchange, technology transfer, technology promotion; information system integration services; sales of coal and products; purchasing agency services; sales of office equipment; retail of daily household appliances; sales of metal ores; sales of non-metallic ores and products; sales of forgings and powder metallurgy products. (Except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law) General projects: technical services, technology development, technical consulting, Hunan Xiangjiang New

Technical exchange, District Dongfanghong Street

Nanhua Biouhan Technology Transfer, Daoyuelu Western University

(Hunan) Biology 10,000,000 Changsha, Hunan Province Technology Promotion; No. 1698 Road 51.00% 0.00% Establishment of Science and Technology Co., Ltd. .00 City First Class Medical Lugu Technology Innovation

Division Equipment Production; New Entrepreneurship Park A1

Room 1101, Class I Medical Building

Device sales; Class II medical device sales; Internet sales

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(Except for the sale of goods that require a license); food sales (only sales of prepackaged foods); health food (prepackaged) sales; infant formula milk powder and other infant formula foods; sales of formula foods for special medical purposes; sales of disinfectants (excluding hazardous chemicals); sales of special chemical products (excluding hazardous chemicals)

products); sales of sanitary products and disposable medical supplies; sales of special labor protection products; wholesale of protective products for medical staff; wholesale of medical masks; sales of daily necessities; sales of packaging materials and products; sales of material handling equipment; sales of instruments and meters; sales of optical instruments

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

sales; sales of teaching models and teaching aids; sales of mechanical parts and components; sales of electronic products; sales of mechanical equipment; sales of office supplies; wholesale of cosmetics; repair of special equipment; maintenance of electronic and mechanical equipment (excluding special equipment); leasing services (excluding licensed leasing services); general cargo warehousing services (excluding hazardous chemicals and other items requiring license approval)

items); domestic cargo transportation agency; supply chain management services; digital technology services; information technology consulting services; health consulting services (excluding diagnosis and treatment services); import and export of goods; import and export agency; information system operation and maintenance services

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Services; car sales. (Except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law) Licensed projects: wholesale of drugs; production of Class II medical devices; production of Class III medical devices; operation of Class III medical devices; sales of Class II and III radiation devices; rental of Class III medical devices; road cargo transportation (excluding dangerous goods); inspection and testing services; drug import and export; drug Internet information services; medical device Internet information services; and medical services. (Projects that require approval according to law can only be carried out with the approval of relevant departments. Specific business projects are subject to the approval of relevant departments.

Full text approval document of Nanhua Biopharmaceutical Co., Ltd. 2025 annual report or

The license is

accurate)

Loudi, Hunan Province

Jin Hongxin, Loudi City, Lianyuan City, Shi

124,644,20 Loudi, Hunan Province Non-identical Control Materials Co., Ltd. Mashan Street Ma Sales of lithium carbonate 55.00% 0.00%

0.00 Municipal Enterprise Merger Department Toushan Village Shuikou

group

Lengshuijiang City Ring

Lengshuijiang Jinda University

43,486,700 Hunan Province Lengshui Chengdong Road (sea scrap steel processing, non-same control road environmental protection technology 0.00% 29.71%

.00 Jiangshi Hong Logistics Park Office Sales Company Merger Co., Ltd.

(3rd floor, public building)

Explanation on the difference between the proportion of shareholding in subsidiaries and the proportion of voting rights:

None.

Basis for holding half or less of the voting rights but still controlling the invested unit, and holding more than half of the voting rights but not controlling the invested unit:

None.

For important structured entities included in the scope of consolidation, the basis for control is:

None.

Basis for determining whether a company is agent or principal:

None.

Other notes:

(2) Important non-wholly owned subsidiaries

Unit: Yuan Attributable to minority shareholders in this period Announcement to minority shareholders in this period Name of the company remaining in minority shareholders’ equity at the end of the period Shareholding ratio of minority shareholders

Profit and loss Dividends distributed Loudi Jinhong New Materials Co., Ltd.

45.00% 1,170,519.53 0.00 81,409,898.96 Company

Hunan Nanhua Biotechnology Co., Ltd.

20.00% -902,017.13 1,562,500.00 6,675,643.04 Division

Explanation on the difference between the shareholding ratio of minority shareholders of subsidiaries and the voting rights ratio:

None.

Other notes:

None.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(3) Main financial information of important non-wholly owned subsidiaries

Unit: Yuan

Ending balance Beginning balance

Zigong

Non-Current Non-Current Non-Current Non-Current Company Name Current Assets Current Liabilities Current Assets Current Liabilities Current Assets Liquid Assets Liquid Assets Total Assets Total Liabilities Total Assets Debt Assets Debt Floor

Jin Hong

336,2 214,3 550,5 308,4 85,15 393,5

new material

12,82 20,19 33,01 24,91 6,293 81,21

material

7.46 2.28 9.74 9.33 .81 3.14

Limited public service

Division

Hunan

Nam Hwa

160,4 23,56 183,9 152,0 3,216 155,2 150,6 29,13 179,8 143,9 5,894 149,8Biology

15,85 4,093 79,94 76,89 ,215. 93,11 84,40 4,181 18,58 32,26 ,151. 26,41Technology

5.00 .56 8.56 8.17 97 4.14 0.38 .12 1.50 2.69 15 3.84 Limited

company

Unit: Yuan

Amount for the current period Amount for the previous period

Subsidiary name

Comprehensive Income Operating Activities Comprehensive Income Operating Activities Operating Income Net Profit Operating Income Net Profit

Total Cash Flow Total Cash Flow Loudi Jinhong -

288,069,9 2,331,210 2,331,210

There are 90,719,65 new materials 0.00 0.00 0.00 0.00 42.05 .93 .93

Ltd. 3.19

Hunan Nanhua - - - - - 57,955,72 77,386,10 29,052,95 Biotechnology 992,833.2 992,833.2 36,880,12 1,153,629 1,153,629 1.52 4.32 3.92 Co., Ltd. 4 4 4.82 .74 .74Other instructions:

None.

(4) Significant restrictions on the use of enterprise group assets and settlement of enterprise group debts

None.

(5) Financial support or other support provided to structured entities included in the scope of consolidated financial statements

None.

Other notes:

Transactions in which the ownership share of the subsidiary changes and the subsidiary is still controlled
Interests in joint ventures or associated enterprises

(1) Summary financial information of unimportant joint ventures and associates

Unit: Yuan

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Closing balance/Amount incurred in the current period Opening balance/Amount incurred in the previous period Joint ventures:

The total of the following items calculated based on shareholding ratio

Associates:

The total of the following items calculated based on shareholding ratio

--Net profit 0.00 -2,731,360.17 --Total comprehensive income 0.00 -2,731,360.17 Other notes:

None.

(2) Explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the company

None.

(3) Excess losses incurred by joint ventures or associates

Unit: Yuan

Unrecognized losses in the current period (or

Name of joint venture or associated enterprise Accumulated unrecognized losses in previous periods Accumulated unrecognized losses at the end of the period

shared net profit)

Other notes:

None.

(4) Unconfirmed commitments related to investment in joint ventures

None.

(5) Contingent liabilities related to investments in joint ventures or associates

None.

11. Government subsidies

Government subsidies recognized according to the amount receivable at the end of the reporting period

□Applicable ☑Not applicable

Reasons for failure to receive the estimated amount of government subsidy at the estimated time

□Applicable ☑Not applicable

Liability items involving government subsidies

☑Applicable □Not applicable

Unit: Yuan New additions in the current period are included in the operating income in the current period. Transferred to others in the current period. Other changes and assets/receipts in the current period. Accounting account. Opening balance. Ending balance.

Amount of subsidy Amount of outside income Amount of other income Animation related

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Deferred income 950,519.00 417,376.70 137,500.00 Related to income 395,642.30

5,170,000. 21,529,430 26,503,763

Deferred income 148,507.92 344,175.06 Related to assets

00 .59 .45

Government subsidies included in current profits and losses

☑Applicable □Not applicable

Unit: Yuan

Accounting accounts Amount for the current period Amount for the previous period

Transfer of deferred income related to assets 344,175.06 673,644.08 Transfer of deferred income related to income 16,040,618.64 811,584.57 Other notes:

None.

12. Risks related to financial instruments

Various risks arising from financial instruments

The company's goal in risk management is to strike a balance between risks and returns, minimize the negative impact of risks on the company's operating performance, and maximize the interests of shareholders and other equity investors. Based on this risk management objective, the company's basic risk management strategy is to confirm and analyze the various risks faced by the company, establish an appropriate risk tolerance bottom line and conduct risk management, and supervise various risks in a timely and reliable manner to control risks within a limited range.

The Company faces various risks related to financial instruments in its daily activities, mainly including credit risk, liquidity risk and market risk. Management has reviewed and approved policies for managing these risks, which are summarized below.

(1) Market risk

Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial instruments fluctuate due to market price changes, mainly including exchange rate risk and interest rate risk.

The Group uses sensitivity analysis techniques to analyze the possible impact of reasonable and possible changes in market risk-related variables on current profits and losses or shareholders' equity. Since any risk variable rarely changes in isolation, and the correlation between variables will have a significant impact on the final impact of a change in a certain risk variable, the following content is based on the assumption that changes in each variable are independent.

①Exchange rate risk

Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in foreign exchange rates. The Group operates in Mainland China and its main activities are denominated in RMB. Therefore, the market risk of foreign exchange changes borne by the Group is not significant. As of December 31, 2025, the balance of the Group's foreign currency monetary items can be found in Note VII. 51 "Foreign Currency Monetary Items".

②Interest rate risk

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market interest rates. Interest-bearing financial instruments with fixed interest rates expose the Group to fair value interest rate risk, while interest-bearing financial instruments with floating interest rates expose the Group to cash flow interest rate risks. The Group determines the proportion of fixed-rate and floating-rate financial instruments based on market conditions, and maintains an appropriate portfolio of financial instruments through regular review and monitoring. The cash flow interest rate risk faced by the Group is mainly related to the Group's bank borrowings with floating interest rates. As of December 31, 2025, the Group's interest-bearing debts were mainly floating-rate loan contracts denominated in RMB, with a total amount of RMB 335,156,068.98 (end of the previous year: RMB 10,000,000.00).

As of December 31, 2025, if the interest rates on floating-rate financial assets and liabilities increase or decrease by 50 basis points, and other factors remain unchanged, the Group's net profit will increase or decrease by approximately RMB 1,256,835.26.

(2) Credit risk

Credit risk refers to the risk that one party to a financial instrument cannot fulfill its obligations, causing financial losses to the other party.

①Credit risk management practice

A. Credit risk evaluation methods

The Company assesses at each balance sheet date whether the credit risk of relevant financial instruments has increased significantly since initial recognition. When determining whether credit risk has increased significantly since initial recognition, the Company considers reasonable and evidence-based information that is available without unnecessary additional cost or effort, including qualitative and quantitative analysis based on historical data, external credit risk ratings, and forward-looking information. Based on a single financial instrument or a combination of financial instruments with similar credit risk characteristics, the company determines the changes in default risk during the expected duration of the financial instrument by comparing the risk of default of the financial instrument on the balance sheet date with the risk of default on the initial recognition date.

When one or more of the following quantitative and qualitative criteria are triggered, the company believes that the credit risk of financial instruments has increased significantly:

The quantitative standard is mainly that the default probability of the remaining duration on the balance sheet date has increased by more than a certain percentage compared with the initial recognition;
Qualitative criteria mainly include major adverse changes in the debtor's operating or financial conditions, existing or expected changes in technology, market, economic or legal environment that will have a major adverse impact on the debtor's ability to repay the company, etc.

B. Definition of defaulted and credit-impaired assets

When a financial instrument meets one or more of the following conditions, the company defines the financial asset as having defaulted, and its standards are consistent with the definition of credit impairment: 1) The debtor encounters major financial difficulties;

The debtor violates the binding clauses on the debtor in the contract;
The debtor is likely to go bankrupt or undergo other financial reorganization;
The creditor grants concessions to the debtor that the debtor would not make under any other circumstances due to economic or contractual considerations related to the debtor's financial difficulties.

②Measurement of expected credit losses

The key parameters for measuring expected credit losses in the full text of Nanhua Biopharmaceutical Co., Ltd.'s 2025 annual report include default probability, default loss rate and default risk exposure. The company considers quantitative analysis and forward-looking information of historical statistical data (such as counterparty ratings, guarantee methods and collateral types, repayment methods, etc.) to establish default probability, default loss rate and default risk exposure models. ③For the quantitative data of the Group’s credit risk exposure and loss provisions arising from accounts receivable, please refer to the disclosures in Note 7.3, Note 7.4 and Note 7.5.

④Credit risk exposure and credit risk concentration

The Group's credit risk mainly comes from monetary funds and receivables. In order to control the above-mentioned related risks, the Group has taken the following measures respectively.

A. Monetary funds

The Group places bank deposits and other monetary funds in financial institutions with higher credit ratings, so its credit risk is lower.

B. Accounts receivable

The Group regularly conducts credit assessments on customers who trade on credit. Based on the credit assessment results, the Group chooses to conduct transactions with recognized customers with good credit and monitors their receivable balances to ensure that the Company does not face significant bad debt risks.

As the Group only transacts with recognized and creditworthy third parties, no collateral is required. Credit risk is managed centrally by customer. As of December 31, 2025, the Company has certain credit concentration risks, and 67.08% of the Company's accounts receivable and contract assets (December 31, 2024: 53.76%) originate from the top five customers with balances. The Group does not hold any collateral or other credit enhancements for its accounts receivable and contract asset balances.

The Group's maximum exposure to credit risk is the carrying value of each financial asset on the balance sheet.

(3) Liquidity risk

Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations to settle by delivering cash or other financial assets.

In order to control this risk, the Company comprehensively uses various financing methods such as bill settlement and bank borrowing, and adopts an appropriate combination of long-term and short-term financing methods to optimize the financing structure and maintain a balance between financing continuity and flexibility. The Company has obtained bank credit lines from a number of commercial banks to meet its working capital requirements and capital expenditures.

As of December 31, 2025, the financial liabilities held by the Group based on the maturity period of the undiscounted remaining contractual obligations are analyzed as follows:

financial liabilities

Project

3 years to 5 years

1 year (including 1 year) 1-3 years (including 3 years) More than 5 years Total

(including 5 years)

Short-term borrowings (including interest) 270,889,664.81 270,889,664.81 Accounts payable 14,715,783.60 14,715,783.60 Other payables 8,511,967.53 8,511,967.53 Non-current liabilities due within one year (including

15,363,819.50 15,363,819.50 interest)

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Long-term borrowings (including interest) 1,952,368.50 27,800,963.91 13,615,135.58 18,190,530.00 61,558,997.99 Lease liabilities 3,452,198.44 3,452,198.44

Total 311,433,603.94 31,253,162.35 13,615,135.58 18,190,530.00 374,492,431.87

13. Related parties and related transactions

Information about the parent company of this enterprise

Parent company to this enterprise Parent company to this enterprise Parent company name Place of registration Nature of business Registered capital

Proportion of shareholding Proportion of voting rights of Hunan Province Financial Information Industry

Fund Management Co., Ltd. Changsha City Business Services Industry 6.728 billion yuan 29.74% 29.74% Company

Description of the parent company of this enterprise

The ultimate controlling party of this enterprise is the People's Government of Hunan Province.

Other notes:

The People's Government of Hunan Province holds 100% equity of Hunan Caixin Industrial Fund Management Co., Ltd. through Hunan Caixin Financial Holding Group Co., Ltd. (hereinafter referred to as Caixin Financial Holding Group).

Information about the company’s subsidiaries

For details of the company's subsidiaries, please refer to Note 10.

Information on joint ventures and associated enterprises of the enterprise

Please refer to the notes for details of the company's important joint ventures or associates.

The situation of other joint ventures or associates that have related party transactions with the company in the current period, or related party transactions with the company in previous periods that resulted in balances is as follows:

Name of joint venture or associated enterprise Relationship with this enterprise

Other notes:

None.

Other related parties

Names of other related parties Relationship between other related parties and the company

Lengshuijiang Runcheng New Materials Technology Co., Ltd. Lengshui Jianghaihong Logistics and Distribution Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials holding more than 5% of the shares. Lengshui Jiangluhong Recycling Resources Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials holding more than 5% of the shares. Lengshui Jianghonglu Scraped Car Recycling and Dismantling Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials holding more than 5% of the shares. Lengshui Jianghaihong Logistics Park Development Co., Ltd., a related legal person controlled by the actual controller of shareholders holding more than 5% of Jinhong New Materials. Lengshuijiang Jinhong Renewable Resources Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials holding more than 5% of Jinhong New Materials. Hunan Jinhong Logistics Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials, holding more than 5% of Jinhong New Materials. Related legal persons controlled by the actual controller of Jinhong New Materials, holding more than 5% of Jinhong New Materials’ shares.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Hunan Haihong Logistics Group Co., Ltd. Hunan Haihong Real Estate Co., Ltd., a related legal person controlled by the actual controller of shareholders holding more than 5% of Jinhong New Materials Hunan Daodao Jinhong Recycling Resources Comprehensive Utilization Co., Ltd. Hunan Jinhong Circular Economy Development Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials holding more than 5% of Jinhong New Materials Hunan Jinhong Renewable Resources Group Co., Ltd. Shaoshan Jinhong Renewable Resources Co., Ltd., a related legal person controlled by the actual controller of shareholders holding more than 5% of Jinhong New Materials Loudi Jinhong Renewable Resources Co., Ltd., a related legal person controlled by the actual controller of Jinhong New Materials holding more than 5% of Jinhong New Materials Xie Qingliang, the actual controller of Jinhong New Materials' shareholders holding more than 5% of Jinhong New Materials Wu Peng, an executive of related legal persons controlled by the actual controller of Jinhong New Materials holding more than 5% The Changsha Central Branch of Caixin Jixiang Life Insurance Co., Ltd., a related legal person executive controlled by the actual controller of shareholders holding more than 5% of the shares of Jinhong New Materials, is also controlled by Caixin Financial Holding Group

Caixin Jixiang Life Insurance Co., Ltd. Xiangtan Central Branch is also controlled by Caixin Financial Holdings Group

Caixin Jixiang Life Insurance Co., Ltd. Loudi Central Branch is also controlled by Caixin Financial Holdings Group

Caixin Jixiang Life Insurance Co., Ltd. Shaoyang Central Branch is also controlled by Caixin Financial Holdings Group

Caixin Jixiang Life Insurance Co., Ltd. Xiangxi Central Branch is also controlled by Caixin Financial Holdings Group

Caixin Jixiang Life Insurance Co., Ltd. Yiyang Central Branch is also controlled by Caixin Financial Holdings Group

Caixin Jixiang Life Insurance Co., Ltd. is also controlled by Caixin Financial Holdings Group

Caixin Securities Co., Ltd. is also controlled by Caixin Financial Holdings Group

Caixin Futures Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Foreign Enterprise Service Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Data Industry Group Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Bank Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin International Economic Research Institute Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin Leading Investment Management Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin Economic Investment Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Tourism Investment Holdings Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin Yucai Insurance Agency Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin Commercial Factoring Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin Trust Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Caixin Asset Management Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Provincial State-owned Investment and Operation Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan United Equity Exchange Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Credit Information Co., Ltd. is also controlled by Caixin Financial Holdings Group

Hunan Bank Co., Ltd. Xiangjiang New District Branch is also controlled by Caixin Financial Holdings Group

Xinxin Financial Leasing Co., Ltd. Controlling shareholder associate and joint venture

Borreton Technology Co., Ltd. Controlling shareholder associate and joint venture

Hunan Imisen Technology Co., Ltd. Controlling shareholder associate and joint venture

Hunan Tianhui Private Equity Investment Fund Management Co., Ltd. Controlling shareholder associate and joint venture

Hunan Kaitong Electronics Co., Ltd. Controlling shareholder associate and joint venture

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Changsha Lvxin Real Estate Development Co., Ltd. Controlling shareholder associate and joint venture Hunan Pharmaceutical Group Co., Ltd. Caixin Financial Holdings Group associate and joint venture Nanhua Heping Hospital Management (Hunan) Co., Ltd. Other related parties

Other notes:

None.

Related transactions

(1) Related transactions related to the purchase and sale of goods, provision and receipt of services

Procurement of goods/service acceptance form

Unit: Yuan

Whether the transaction amount is exceeded Related party Content of related transactions Amount incurred in the current period Approved transaction limit Amount incurred in the previous period

Runchengxin, Lengshuijiang City

Material Technology Co., Ltd. Raw materials 16,509,401.50 No company

Caixin Jixiang Life Insurance

Insurance Co., Ltd. Insurance products 2,843,373.26 No 3,021,405.22 Changsha Central Branch

Hunan Jinhong Logistics Co., Ltd.

Logistics and distribution 2,586,419.27 No Limited company

Shaoshan Jinhong Renewal Capital

Raw materials 789,795.75 Fuyuan Co., Ltd.

Lengshui Jianghaihong Logistics

Logistics and distribution 756,406.96 No Distribution Co., Ltd.

Lengshui Jianghaihong Logistics

Purchase of electricity 595,082.03 Fuyuan Development Co., Ltd.

Caixin Jixiang Life Insurance

Insurance Co., Ltd. Insurance products 88,900.00 No Xiangtan Central Branch

Lengshuijiang Road Hongzheng

Engineering 64,440.70 Fou Resources Co., Ltd.

Hunan Province Foreign Enterprises

Service fee 6,486.08 No 571.44 Services Co., Ltd.

Hunan Pharmaceutical Group has

Medical devices No 18,194,690.27 Co., Ltd.

Caixin Futures Co., Ltd.

Property and utility bills No 26,422.02 Division

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Caixin Jixiang Life Insurance

Insurance Co., Ltd. Insurance products No 11,777.12 Xiangtan Central Branch

Hunan Financial Information International Economics

Economic Research Institute Co., Ltd. Training fee No 9,433.96

Hunan Province Financial Information Industry

Fund Management Co., Ltd. Recycling of scrapped assets No 1,685.00 Division

Hunan Caixin Economic Investment

Recycling of scrapped assets No 885.00 Capital Co., Ltd.

Hunan Province Financial Information Leading

Investment Management Co., Ltd. Scrapped Asset Recovery No 665.00 Company

Hunan Province Tourism Investment

Recycling of end-of-life assets No 415.00 Holdings Limited

Caixin Jixiang Life Insurance

Insurance product refund No -4,390.99 Insurance Co., Ltd.

List of goods sold/services provided

Unit: Yuan

Related parties Contents of related transactions Amount for the current period Amount for the previous period Hunan Caixin Financial Holding Group Co., Ltd.

Sales of goods 3,096,334.51 50,973.46 Company

Hunan Kaitong Electronics Co., Ltd. Sales of goods 1,756,849.56

Caixin Securities Co., Ltd. Sales of goods 1,067,433.63

Hunan Bank Co., Ltd. Sales of goods 992,638.94

Lengshuijiang Luhong Renewable Resources Co., Ltd.

Sales of goods 790,180.72

Division (Note)

Loudi Jinhong Renewable Resources Co., Ltd.

Sales of goods 737,526.23

(Note)

Hunan Caixin Trust Co., Ltd.

Sales of goods 708,008.85

Division

Hunan Provincial Financial Information Industry Fund Management Co., Ltd.

Sales of goods 701,184.08 12,743.36 Co., Ltd.

Caixin Jixiang Life Insurance Co., Ltd.

Sales of goods 518,412.40 535,764.58 Company

Hunan Provincial State-owned Investment and Operation Co., Ltd.

Sales of goods 437,451.33

Division

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Hunan Imisen Technology Co., Ltd. Sales of goods 420,194.69 Hunan Data Industry Group Co., Ltd. Sales of goods 372,076.11 Hunan Caixin Commercial Factoring Co., Ltd. Sales of goods 371,727.43 11,469.02 Hunan Caixin Asset Management Co., Ltd.

Sales of goods 371,472.56 divisions

Hunan United Equity Exchange Co., Ltd.

Sales of goods 353,486.73 company

Hunan Caixin Yucai Insurance Agency Co., Ltd.

Sales of goods 267,097.35 23,035.40 Company

Hunan Credit Information Co., Ltd. Sales of goods 264,253.10 Shaoshan Jinhong Renewable Resources Co., Ltd.

Sales of goods 93,280.70 (note)

Changsha Luxin Real Estate Development Co., Ltd.

Sales of goods 57,617.70 divisions

Xinxin Financial Leasing Co., Ltd. Sales of goods 48,672.57 Boreton Technology Co., Ltd. Sales of goods 24,913.27 Caixin Jixiang Life Insurance Co., Ltd.

Sales of goods 11,566.38 The company’s Changsha Central Branch

Hunan Bank Co., Ltd. Xiangjiang

Sales of goods 7,766.37 New District Branch

Caixin Jixiang Life Insurance Co., Ltd.

Sales of goods 7,088.51 Shaoyang Central Branch of the company

Caixin Jixiang Life Insurance Co., Ltd.

Sales of goods 2,398.23 Company Yiyang Central Branch

Lengshuijiang Jinhong Renewable Resources Co., Ltd.

Sales of goods 2,311.57 divisions (note)

Caixin Jixiang Life Insurance Co., Ltd.

Sales of goods 2,106.19 The company’s Loudi Central Branch

Caixin Jixiang Life Insurance Co., Ltd.

Sales of goods 871.67 Company Xiangxi Central Branch

Hunan Tianhui Private Equity Investment Fund Management

Sale of Goods 10,587.61 Ltd.

Description of related transactions for purchasing and selling goods, providing and receiving services

The scrap steel trading business carried out with related parties has been reported in accordance with the net amount method.

(2) Related entrusted management/contracting and entrusted management/outsourcing situation

The company's entrusted management/contracting status table:

Unit: Full text of 2025 annual report of Yuan Nanhua Biopharmaceutical Co., Ltd.

Trusteeship income/commitment Trustee/contractor confirmed in the current period Trustee/contractor Trustee/contracting capital Trusteeship/contracting start Trustee/contracting end

Package revenue pricing is based on managed revenue/contractor name party name product type start date end date

according to income

Description of associated hosting/contracting situations

None.

The company’s entrusted management/outsourcing status table:

Unit: Yuan Client/outsourcing Trustee/contracting Entrustment/outsourcing capital Starting from entrustment/outsourcing End of entrustment/outsourcing Escrow fee/outsourcing Name of the entrusting party confirmed in this period Name of the party Type of product Start date End date Fee pricing basis Management fee/outsourcing fee related management/outsourcing situation description

(3) Related leasing situation

As a lessor, our company:

Unit: Yuan Lessee Name Type of leased assets Lease income recognized in the current period Lease income recognized in the previous period Lengshui Jianghaihong Logistics Park Development Co., Ltd.

Parking lot 178,899.08

company

Scrap car recycling and dismantling at Jianghong Road, Lengshui

Real estate 91,743.12

solution co., ltd.

As a lessee, our company:

Unit: Yuan Short-term simplified treatment not included in lease liabilities

Leases and low-value assets Variable leases measured Lease liabilities assumed Increased rent paid for right-of-use assets

Lessor Lease asset Rental payment (if appropriate) Interest expense Asset

Name Product Category Use (if applicable)

Issued in this period Issued in the previous period Issued in this period Issued in the previous period Issued in this period Issued in the previous period Issued in this period Issued in the previous period Issued in this period

None.

(4) Related guarantees

The company acts as a guarantor

Unit: Yuan guarantee has been fulfilled by the guaranteed party. Guarantee amount. Guarantee start date. Guarantee expiry date.

Complete

Loudi Jinhong Renewable Resources Co., Ltd.

10,000,000.00 March 18, 2025 March 18, 2026 No

Co., Ltd. (note)

The company as the guaranteed party

Unit: Yuan guarantee has been fulfilled by the guarantor. Guarantee amount. Guarantee starting date. Guarantee expiry date.

Complete

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Hunan Haihong Logistics Group has

Co., Ltd., provided by Xie Qingliang

Joint and several liability, Loudi 10,000,000.00 December 21, 2023 December 21, 2026 No Jinhong Renewable Resources Co., Ltd.

Company provides mortgage guarantee

Hunan Haihong Logistics Group has

Co., Ltd., Hunan Haihong Real Estate

Industry Co., Ltd., Li Tie 10,000,000.00 March 20, 2025 March 19, 2029 Fu Xiang and Wu Peng provide joint and several guarantees

burden of proof

Li Tiexiang and Wu Peng provided

10,000,000.00 September 11, 2025 September 10, 2028 No warranty liability

Hunan Jinhong Renewable Resources Collection

Tuan Co., Ltd., Hunan Hai

Hong Real Estate Co., Ltd., Lake

South Avenue Jinhong Recycling Resources 5,000,000.00 November 13, 2023 December 31, 2027 No Comprehensive Utilization Co., Ltd.,

Li Tiexiang and Wu Peng provided

With warranty

Hunan Jinhong Renewable Resources Collection

Tuan Co., Ltd., Hunan Gold

Hong Circular Economy Development Co., Ltd. 27,860,000.00 May 23, 2023 May 22, 2031 No Company, Li Tiexiang, Wu Peng

Provide joint and several liability

Hunan Jinhong Renewable Resources Collection

Tuan Co., Ltd., Hunan Gold

Hong Circular Economy Development Co., Ltd. 27,830,000.00 June 13, 2023 June 12, 2031 No Company, Li Tiexiang, Wu Peng

Provide joint and several liability

Hunan Jinhong Renewable Resources Collection

Tuan Co., Ltd., Hunan Gold

Hong Circular Economy Development Co., Ltd. 9,280,000.00 September 14, 2023 September 13, 2031 No Company, Li Tiexiang, Wu Peng

Provide joint and several liability

Description of related guarantees

The company provided the 10 million yuan guarantee for Loudi Jinhong Renewable Resources Co., Ltd., which occurred before the company acquired Jinhong New Materials and was repaid on March 18, 2026.

The guarantee has been fulfilled accordingly.

(5) Fund lending from related parties

Unit: Yuan

Related parties Borrowing amount Start date Maturity date Description

dismantle

take out

(6) Asset transfer and debt restructuring of related parties

Unit: Yuan

Related parties Contents of related transactions Amount for the current period Amount for the previous period Hunan Caixin Asset Management Co., Ltd.

Claims receivable 23,414,418.27 divisions

Caixin Futures Co., Ltd. Office Equipment 4,424.78 Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

(7) Remuneration of key management personnel

Unit: Yuan Item Amount for the current period Amount for the previous period Remuneration of key management personnel 3,699,936.83 3,528,580.22

(8) Other related transactions

①Trust products

Type of remaining related parties recognized at the end of the year Amount Start date End date Interest rate

investment income

Hunan Caixin Trust Co., Ltd.

Trust financial management 100,000,000,00 2024-2-4 2025-12-5 6.40% 6,119,452.04 Responsible company

②Deposits and interest income deposited with related parties

Deposit balance Interest income related party Ending balance of the previous year Beginning balance of the current year

Amount Hunan Bank Co., Ltd. 71,446.36 1,293,480.13 303.20 747.61

Accounts receivable and payable from related parties

(1) Items receivable

Unit: Yuan Closing balance Opening balance Item name Related parties

Book balance Bad debt provision Book balance Bad debt provision Lengshuijiang Road Hongsheng

Accounts receivable 995,736.45 9,957.36

Resources Ltd.

Hunan Bank Co., Ltd.

Accounts receivable 869,826.00 8,698.26

Ltd.

Loudi Jinhong Renewal Capital

Accounts receivable 630,778.60 6,307.79

source co., ltd.

Hunan Data Industry Collection

Accounts receivable 420,446.00 4,204.46

group co., ltd.

Lengshui Jianghong Road scrapped

Accounts receivable Automobile recycling and dismantling 383,333.33 3,833.33

Ltd.

Hunan Imisen Technology

Accounts receivable 379,856.00 3,798.56

Ltd.

Lengshui Jianghaihong Logistics

Accounts receivable 355,000.00 3,550.00

Park Development Co., Ltd.

Hunan Provincial Financial Trust

Accounts receivable 299,100.00 2,991.00

limited liability company

Shaoshan Jinhong Renewal Capital

Accounts receivable 82,757.31 827.57

source co., ltd.

Accounts receivable Changsha Luxin Real Estate 65,108.00 651.08

Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report Full Text Development Co., Ltd.

Lengshuijiang Jinhong is reborn

Accounts receivable 2,071.46 20.71

Resources Ltd.

Runchengxin, Lengshuijiang City

Prepayment Material Technology Co., Ltd. 11,120,213.70

Division

Nanhua Peace Hospital

Other receivables Management (Hunan) Co., Ltd. 803,000.00 803,000.00

Division

(2) Items payable

Unit: yuan Project name Related party Book balance at the end of the period Book balance at the beginning of the period

Lengshui Jianghaihong Logistics Distribution Co., Ltd.

Accounts payable 71,743.12

Division

Contract liabilities (including other current liabilities)

Hunan Imisen Technology Co., Ltd. 306,600.00

debt)

Related party commitments

The annual operating income of the target company during the performance commitment period shall not be less than 250 million yuan, of which the operating income from the delivery date in 2025 to December 31, 2025 shall not be less than 250 million yuan;
From the delivery date to December 31, 2025, the target company’s net profit after deducting non-recurring gains and losses will be no less than 1 million yuan; in any year of 2026, 2027, and 2028, the target company’s non-net profit will not be negative and the average non-net profit for the three years will not be less than 8 million yuan. This period is the first commitment period, and the target company has completed its performance commitments for operating income and net profit attributable to the parent company.

All financial data such as operating income, net profit, and non-net profit mentioned above are based on the data in the consolidated financial statements of Jinhong New Materials stated in the annual audit report or special audit report issued by an accounting firm approved by the company. This reporting period is the first commitment period for the above-mentioned performance commitments. The target company has completed the 2025 operating income and net profit indicators after deducting non-recurring gains and losses. The completion of this performance commitment will have a major adverse impact on the goodwill impairment test in this period.

Others

None.

14. Share-based payment

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

15. Commitments and contingencies

Important commitments

Important commitments existing at the balance sheet date

As of December 31, 2025, the Group has no major commitments that need to be disclosed.

Contingent matters

(1) Important contingencies existing on the balance sheet date

As of December 31, 2025, the Group has no major contingencies that need to be disclosed.

(2) If the company has no important contingencies that need to be disclosed, this should also be explained.

The company has no important contingencies that need to be disclosed.

Others

None.

16. Events after the balance sheet date

Important non-adjustment matters

Unit: yuan Impact items on financial status and operating results Content Reasons why the impact cannot be estimated

number of rings

Profit distribution

On April 28, 2026, the company's 12th board of directors held its ninth meeting and approved the 2025 profit distribution plan: no cash dividends and no profit distribution plan

Bonus shares will be given out and capital reserve will not be converted into share capital. The proposal still needs to be submitted to the company's 2025 annual shareholders' meeting for review.

Sales return

None.

Description of other post-balance sheet events

None.

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

17. Other important matters

Correction of accounting errors in the previous period

(1) Retrospective restatement method

Unit: Yuan Report for each affected comparison period

Contents of accounting error correction Processing procedures Cumulative impact number

Project name

(2) Prospective applicable law

Contents of correction of accounting errors Approval process Reasons for adopting prospective application

Debt restructuring

The Group had no major debt restructuring matters during the reporting period.

Annuity plan
Termination of operations

Unit: Yuan Items attributable to the parent company Revenue Expenses Total profit Income tax expense Net profit Owner’s profit from discontinued operations Other instructions:

Branch information

(1) Determination basis and accounting policies of reporting segments

The Group determines its operating segments based on its internal organizational structure, management requirements, internal reporting system, etc. A company's operating segments refer to components that simultaneously meet the following conditions:

① This component can generate income and incur expenses in daily activities;

② The management can regularly evaluate the operating results of the component to decide to allocate resources to it and evaluate its performance;

③Be able to obtain relevant accounting information such as the financial status, operating results and cash flow of the component through analysis.

(2) Financial information of reporting segments

Unit: Yuan Scrap Steel Recycling Human Cells Biomedicine

Lithium carbonate production Energy saving and environmental protection Unallocated funds Inter-segment offset

Items Processing and sales Testing and storage Related products Total production and sales Services Sales

sales storage sales

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

External business 206,047,9 81,519,85 72,666,60 39,183,17 15,151,87 1,370,214 415,939,7Income 93.68 6.98 9.01 8.39 9.80 .63 32.49

(3) If the company has no reportable segments, or cannot disclose the total assets and total liabilities of each reportable segment, the reasons should be explained

None.

(4) Other instructions

None.

Other important transactions and matters that have an impact on investors’ decision-making

As of December 31, 2025, the Group has no other important matters that need to be disclosed.

Others

None.

18. Notes on main items of the parent company’s financial statements

Accounts receivable

(1) Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 9,059,963.68 7,733,175.63 Within 1 year 9,059,963.68 7,733,175.63 1 to 2 years 231,305.94

More than 3 years 362,640.00 362,640.00

More than 5 years 362,640.00 362,640.00 Total 9,653,909.62 8,095,815.63

(2) Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

bad provision

Account preparation 0.00 0.00

receivables

Accounts

its

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Medium:

by combination

bad provision

9,653,9 370,294 9,283,6 8,095,8 362,842 7,732,9Account preparation 100.00% 3.84% 100.00% 4.48%

09.62 .00 15.62 15.63 .20 73.43 receivables

Accounts

its

Medium:

combination

1: merge

8,525,8 8,525,8 7,712,9 7,712,9 within the range 88.32% 95.27%

69.55 69.55 55.63 55.63Related parties

combination

1,128,0 370,294 757,746 382,860 362,842 20,017. 2: Aging 11.68% 32.83% 4.73% 94.77%

40.07 .00 .07 .00 .20 80 combination

9,653,9 370,294 9,283,6 8,095,8 362,842 7,732,9Total

09.62 .00 15.62 15.63 .20 73.43 Provision for bad debts based on combination: Provision for bad debts based on aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year 765,400.07 7,654.00 1.00% More than 5 years 362,640.00 362,640.00 100.00% Total 1,128,040.07 370,294.00

Description of what this combination is based on:

This portfolio uses the aging of accounts receivable as the credit risk characteristic, and accrues bad debt provisions based on the expected credit loss rate of each aging period.

Provision for bad debts based on combination: Provision for bad debts based on combinations of related parties within the scope of consolidation

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year 8,294,563.61

1 to 2 years 231,305.94

Total 8,525,869.55

Description of what this combination is based on:

If bad debt provisions for accounts receivable are made according to the general expected credit loss model:

□Applicable ☑Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan Amount of changes in the current period

Category Beginning Balance Ending Balance

Provision Recovery or transfer Write-off Others

Combined provision 362,842.20 7,451.80 370,294.00 Total 362,842.20 7,451.80 370,294.00

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

Unit: Full text of 2025 annual report of Yuan Nanhua Biopharmaceutical Co., Ltd.

Determine the name of the original bad debt provision accrual unit, the amount recovered or reversed, the reason for the reverse, the method of recovery, the basis for the ratio and its rationality

(4) Accounts receivable actually written off in the current period

Unit: yuan item write-off amount

Important write-offs of accounts receivable:

Unit: Yuan Whether the amount is paid by the name of the related unit Nature of accounts receivable Amount of write-off Reason for write-off The write-off procedures performed

transaction generated

Instructions for writing off accounts receivable:

(5) Accounts receivable and contract assets with the top five closing balances collected by debtors

Unit: Yuan accounts receivable and combined accounts receivable, bad debts, quasi-accounts receivable, ending balance, contract assets, ending balance, accounts receivable and contracts

Unit name Closing balance of same assets Provision and contract asset reduction amount Closing balance of assets

Proportion of total value Preparation ending balance Hunan Aishi for people's livelihood

2,700,659.32 2,700,659.32 27.97%

Material Technology Co., Ltd.

Nanhua Stem Cell Regeneration

Medical clinical translation research

2,187,202.72 2,187,202.72 22.66%

Research Center LLC

company

Hunan Boai Kangmingan

Cell tissue engineering has 1,796,947.54 1,796,947.54 18.61%

limited liability company

Hunan Nanhua Biotechnology

1,528,416.03 1,528,416.03 15.83%

technology co., ltd.

Hunan Power Source Health Care

Cultural Communication Co., Ltd. 376,360.49 376,360.49 3.90% 3,763.60 Company

Total 8,589,586.10 8,589,586.10 88.97% 3,763.60

Other receivables

Unit: Yuan Item Ending balance Beginning balance

Other receivables 73,981,020.86 112,778,453.95 Total 73,981,020.86 112,778,453.95

(1) Other receivables

Classification of other receivables according to nature of payment

Unit: yuan Nature of payment Ending book balance Beginning book balance

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Accounts receivable from related parties within the scope of consolidation 60,087,273.73 112,707,257.57 Equity transfer amount 13,994,330.00

Technology transfer money 5,000,000.00 5,000,000.00 Deposit 95,861.80 95,861.80 Others 824,575.90 26,115.66 Total 80,002,041.43 117,829,235.03

Disclosure based on aging

Unit: Yuan

Aging Book balance at the end of the period Book balance at the beginning of the period

Within 1 year (including 1 year) 16,325,571.51 67,172,529.09 Within 1 year 16,325,571.51 67,172,529.09 1 to 2 years 37,051,634.76 3,156,111.10 2 to 3 years 3,156,111.10 332.18 More than 3 years 23,468,724.06 47,500,262.66 3 to 4 years 332.18 17,360,432.80 4 to 5 years 17,360,432.80 24,072,947.30

More than 5 years 6,107,959.08 6,066,882.56 Total 80,002,041.43 117,829,235.03

Classified disclosure according to bad debt accrual method

Unit: Yuan Ending balance Beginning balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book price Book price provision ratio Provision ratio

Amount Ratio Amount Value Amount Ratio Amount Value

Example Example

By item

5,000,0 5,000,0 5,000,0 5,000,0

Bad provision 6.25% 100.00% 4.24% 100.00%

00.00 00.00 00.00 00.00

Account preparation

its

Medium:

by combination

75,002, 1,021,0 73,981, 112,829 50,781. 112,778 Bad provision 93.75% 1.36% 95.76% 0.05%

041.43 20.57 020.86 ,235.03 08 ,453.95 Account preparation

its

Medium:

80,002, 6,021,0 73,981, 117,829 5,050,7 112,778Total

041.43 20.57 020.86 ,235.03 81.08 ,453.95 Provision for bad debts on an individual basis: Provision for bad debts on a single item if the individual amount is significant

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision Zhejiang Golden Times

Due to litigation, Wuwu Technology Co., Ltd. is expected to 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 100.00%

legal recovery

Division

Total 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Provision for bad debts based on portfolio: Provision for bad debts based on aging portfolio

Unit: Yuan ending balance

Name

Book balance Bad debt provision Proportion within 1 year 14,015,573.72 140,155.74 1.00% 3 to 4 years 332.18 132.87 40.00% 4 to 5 years 60,432.80 42,302.96 70.00% More than 5 years 838,429.00 838,429.00 100.00% Total 14,914,767.70 1,021,020.57

Description of what this combination is based on:

This portfolio uses the aging of other receivables as the credit risk characteristic, and accrues bad debt provisions based on the expected credit loss rate of each aging period.

Provision for bad debts based on combination: Provision for bad debts based on combinations of related parties within the scope of consolidation

Unit: Yuan ending balance

Name

Book balance Bad debt provision Proportion within 1 year 2,306,997.79

1 to 2 years 37,051,634.76

2 to 3 years 3,156,111.10

4 to 5 years 17,300,000.00

More than 5 years 272,530.08

Total 60,087,273.73

Description of what this combination is based on:

Provision for bad debts is made based on the general expected credit loss model:

Unit: Yuan Phase 1 Phase 2 Phase 3

Expected credit throughout the lifetime Credit expected throughout the lifetime

Bad debt provision Total expected credit losses in the next 12 months (no credit deductions have occurred Losses (credit deductions have occurred)

loss

value) value)

Balance on January 1, 2025 257.83 5,050,523.25 5,050,781.08 Balance on January 1, 2025

In this issue

Provisions for the current period 139,897.91 830,341.58 970,239.49 Remainder as of December 31, 2025

140,155.74 5,880,864.83 6,021,020.57 amount

Basis for division of each stage and provision ratio for bad debts

The first stage means that the credit risk of other receivables has not increased significantly since the initial recognition; the second stage means that the credit risk of other receivables has increased significantly since the initial recognition but no credit impairment has occurred; the third stage means that the credit impairment of other receivables has occurred.

The provision ratio for bad debts in the first stage is 1%, and the provision ratio for bad debts in the third stage is 99.69%.

Changes in book balances with significant changes in loss provision during the current period

□Applicable ☑Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

Bad debt provisions for the current period:

Unit: Yuan

Category Opening balance Change amount during the period Ending balance

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Provision Recovery or transfer Write-off or write-off Others

Single provision 5,000,000.00 5,000,000.00 Aging combination 50,781.08 970,239.49 1,021,020.57 Total 5,050,781.08 970,239.49 6,021,020.57

Among them, the amount of bad debt provision for the current period that is reversed or recovered is important:

Unit: Yuan Determine the name of the original bad debt provision accrual unit, the amount recovered or reversed, the reason for the reverse, the method of recovery, the basis for the ratio and its reasonableness

sex

Other receivables with the top five closing balances collected by debtors

Unit: Yuan accounted for other receivable period

Name of the unit with the ending balance of bad debt provision Nature of the payment Ending balance Aging Total ending balance

Proportion

Nanhua Stem Cell Regeneration

Association within the scope of consolidation

Medical clinical translation research 55,600,000.00 More than five years 69.50%

accounts receivable

research center

Zhongguan New Energy Technology

(Shenzhen) Co., Ltd. Equity transfer amount 13,994,330.00 Within 1 year 17.49% 139,943.30 Company

Zhejiang Golden Age Biology

Technology transfer fee 5,000,000.00 More than 5 years 6.25% 5,000,000.00 Technology Co., Ltd.

Nanhuayuanfang (Lake

Association within the scope of consolidation

South) Environmental Protection Technology has 4,443,173.72 Within 2 years 5.55%

accounts receivable

Ltd.

Nanhua Peace Hospital

Management (Hunan) Co., Ltd. Current account 803,000.00 More than 5 years 1.00% 803,000.00 Company

Total 79,840,503.72 99.79% 5,942,943.30

Long-term equity investment

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

100,054,177. 100,054,177. 60,973,137.3 60,973,137.3 Investment in subsidiaries

20 20 0 0

100,054,177. 100,054,177. 60,973,137.3 60,973,137.3Total

20 20 0 0

(1) Investment in subsidiaries

Unit: Yuan Invested unit Beginning balance Impairment provision Increase or decrease in the current period Ending balance Impairment provision

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Position (book price, opening balance, impairment provision (book price, closing balance), additional investment, reduction in investment, others

value) preparation value) Loudi Jinhong

78,624,90 78,624,90 New materials have

0.00 0.00 Co., Ltd.

Hunan Nanhua

12,462,55 12,462,55Biotechnology

6.20 6.20 Ltd.

Nam Hua Gan Xi

cellular regenerative medicine

Clinical transfer 4,000,000 4,000,000 Chemical research in progress .00 .00 Center Limited Liability

Ren company

Hunan Nanhua

Energy saving and environmental protection 2,966,721 2,966,721 Technology Co., Ltd. .00 .00 Company

Hunan Fraternity

Well-off people are fine

2,000,000 2,000,000 cell organizer

.00 .00Cheng Limited Liability

Ren company

peace in south china

Hospital management 39,543,86 39,543,86

(Hunan) 0.10 0.10

Ltd.

60,973,13 78,624,90 39,543,86 100,054,1Total

7.30 0.00 0.10 77.20

(2) Other instructions

None.

Operating income and operating costs

Unit: Yuan

Items of current period's previous period's amount

revenue cost revenue cost

Main business 6,551,241.65 2,097,106.53 1,120,251.73 353,527.59

Other business 7,841,060.00 7,276,373.24

Total 14,392,301.65 2,097,106.53 8,396,624.97 353,527.59

Breakdown information of operating income and operating costs:

Unit: Yuan Biomedical Related Products

Segment 1 Segment 2 Others Total contract points Sales

Category Operating income Operating income Operating income Operating income Operating income Operating income Operating income Operating income Operating income Operating income

Enter this, enter this, enter this, enter this, enter this

Business type 4,691,4 1,394,8 9,700,8 702,253 14,392, 2,097, Type 1 06.21 53.24 95.44 .29 301.65 06.53

its

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Medium:

Biomedicine

Pharmaceutical related 4,691,4 1,394,8 1,859,8 702,253 6,551,2 2,097,1 Product sales 06.21 53.24 35.44 .29 41.65 06.53 Sales

7,841,0 7,841,0Others

60.00 60.00 as per operation

4,691,4 1,394,8 9,700,8 702,253 14,392, 2,097,1 Regional classification

06.21 53.24 95.44 .29 301.65 06.53 category

its

Medium:

Hunan Province 4,691,4 1,394,8 8,689,7 416,185 13,381, 1,811,0 within 06.21 53.24 54.39 .94 160.60 39.18Hunan Province 1,011,1 286,067 1,011,1 286,067 outside 41.05 .35 41.05 .35 market or

Customer type

Type

its

Medium:

Contract type

Type

its

Medium:

by product

Transferred 4,691,4 1,394,8 9,700,8 702,253 14,392, 2,097,1 time minutes 06.21 53.24 95.44 .29 301.65 06.53 category

its

Medium:

merchandise

(Transferred at a certain point in time 06.21 53.24 35.44 .29 41.65 06.53)

service

(in a certain

7,841,0 7,841,0 one period

60.00 60.00 within 60.00

supply)

According to contract

Deadline points

class

its

Medium:

by sales

4,691,4 1,394,8 9,700,8 702,253 14,392, 2,097,1 channel points

06.21 53.24 95.44 .29 301.65 06.53 category

its

Medium:

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

4,691,4 1,394,8 9,700,8 702,253 14,392, 2,097,1 Direct sales

06.21 53.24 95.44 .29 301.65 06.53Distribution

4,691,4 1,394,8 9,700,8 702,253 14,392, 2,097,1Total

06.21 53.24 95.44 .29 301.65 06.53 Information related to performance obligations:

The company's pre-payments, the company's performance obligations, and the important payment terms. The company's commitment to transfer is the main responsibility.

The item will be refunded to the customer during the period. The type and time of the quantity guarantee. The nature of the goods. Anyone.

Account’s money and other explanations of related obligations

None.

Information related to the transaction price allocated to the remaining performance obligations:

At the end of this reporting period, the amount of revenue corresponding to the performance obligations that have been signed but have not been performed or have not been completed is RMB 0.00, of which RMB 0.00 is expected to be recognized as revenue in year 0, RMB 0.00 is expected to be recognized as revenue in year 0, and RMB 0.00 is expected to be recognized as revenue in year 0.

Major contract changes or major transaction price adjustments

Unit: Yuan

Item Accounting treatment method Amount of impact on income

Other notes:

None.

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Investment income from disposal of long-term equity investments -19,551,960.10

Income from trust products 6,119,452.04 5,594,383.55 Income from investment in financial products 515,635.62

Total -12,916,872.44 5,594,383.55

Others

None

19. Supplementary information

Detailed statement of non-recurring profits and losses for the current period

☑Applicable □Not applicable

Unit: Yuan

Item Amount Description

Full text of Nanhua Biopharmaceutical Co., Ltd. 2025 Annual Report

Gains and losses on disposal of non-current assets -700,401.10 Government subsidies included in current profits and losses (related to the company’s regular

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

11,539,441.39, enjoy according to the determined standards, and benefit the company

Except for government subsidies that have a lasting impact on profits and losses)

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

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

Changes in fair value of assets and financial liabilities 2,272,050.60 Profit and loss and disposal of financial assets and financial liabilities

profit and loss

Gains and losses from entrusting others to invest or manage assets 6,119,452.04 Other non-operating income and

-302,347.64 expenses

Less: Income tax impact 280,607.28

Amount of impact on minority shareholders' equity (after tax) 509,198.06 Total 18,138,389.95 --Details of other profit and loss items that meet the definition of non-recurring gains and losses:

□Applicable ☑Not applicable

The company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.

□Applicable ☑Not applicable

Return on net assets and earnings per share

Earnings per share Profit for the reporting period Weighted average return on equity

Basic earnings per share (yuan/share) Diluted earnings per share (yuan/share) Net attributable to the company’s ordinary shareholders

11.46% 0.09 0.09Profit

After deducting non-recurring gains and losses, attributable to

4.25% 0.03 0.03 Net profit of the company’s ordinary shareholders

Differences in accounting data under domestic and foreign accounting standards

(1) Differences in net profit and net assets in financial reports disclosed in accordance with both international accounting standards and Chinese accounting standards

□Applicable ☑Not applicable

(2) Differences in net profit and net assets in financial reports disclosed in accordance with both foreign accounting standards and Chinese accounting standards

□Applicable ☑Not applicable

(3) Explanation of the reasons for the differences in accounting data under domestic and foreign accounting standards. If differences are adjusted for data that have been audited by an overseas audit institution, the name of the overseas institution should be indicated.