/Kyodo Pharmaceuticals: 2025 Annual Report

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Kyodo Pharmaceuticals: 2025 Annual Report

Shenzhen Stock Exchange

2026/04/29

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

【2026-012】Full text of Hubei Tongyong Pharmaceutical 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.

The person in charge of the company, Zu Bin, the person in charge of accounting work, Liu Xiangdong, and the person in charge of the accounting department (accounting officer) Liu Xiangdong 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.

(1) Reasons for the sharp decline in performance

First, the decline in the market price of some products, the annual consolidation of new projects led to the incomplete release of production capacity, the high cost of unit products, and the high initial cost of launching some new products, etc., which affected the year-on-year decline in gross profit margin; second, the company increased its investment in research and development, resulting in an increase in research and development expenses; third, the convertible bonds and The cessation of capitalization of project-specific loan interest resulted in an increase in interest expenses; fourth, in accordance with the requirements of the Accounting Standards for Business Enterprises and the company's accounting policies and other relevant regulations, in order to reflect the company's financial status and operating results more truly and accurately, based on the principle of prudence, the company made corresponding provision for impairment of assets with signs of impairment.

(2) Whether there are any major adverse changes in the main business, core competitiveness, and main financial indicators, and whether they are consistent with industry trends

The company's main business and core competitiveness have not undergone major adverse changes. Although the company's net profit attributable to shareholders of listed companies has changed significantly year-on-year, there are no major risks to the company's ability to continue operating. Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The steroid pharmaceutical industry in which the company operates is currently in a stage of rapid change and profound transformation, as well as a stage of free competition. The company's performance change trends are consistent with industry fluctuations.

(3) The prosperity of the industry, whether there is overcapacity, continued recession or technological substitution, etc.

The company is in the steroid drug raw material industry, and the industry is currently in a stable development period. There is no sustained decline in the industry. At present, the technical route of using biotechnology to produce steroid drug raw materials, represented by the company, occupies the mainstream, and there is no technical substitution. In the short term, the market for steroid raw materials is free of competition and product prices fluctuate to a certain extent, which is within the reasonable scope of the market. There is currently no data indicating that the industry has overcapacity.

(4) Measures taken by companies to deal with declining performance

In order to effectively improve operating conditions and enhance the company's performance, the company will take the following measures: first, strengthen production, release production capacity for new projects, and complete order delivery in a timely manner; second, develop the API product market, expand market share and increase revenue; third, strictly control costs and expenses, reduce costs and increase efficiency, and enhance product competitiveness. The company will take multiple measures to achieve a steady recovery in operating performance and effectively safeguard the interests of all shareholders.

The company hereby declares: If this report contains forward-looking statements involving future plans, such statements 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 requests investors to read this annual report carefully and pay special attention to the following risk factors:

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The company does not have any risk factors that have a serious adverse impact on its operating conditions, financial status and sustained profitability. For details about the risks that the company may face and the company's response measures, please refer to the relevant content in Section 3 of this report "Management Discussion and Analysis 11. Prospects for the Company's Future Development".

The company's profit distribution plan reviewed and approved by the board of directors is: based on the company's total share capital

115,281,113 shares, excluding 1,069,600 shares in the company's special securities account for repurchase, are 114,211,513 shares as the base number. A cash dividend of 0.45 yuan (tax included) will be distributed to all shareholders for every 10 shares, 0 bonus shares (tax included) will be given, and 0 shares will be transferred to all shareholders for every 10 shares from the capital reserve. Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

1. Company information

Stock abbreviation: Tongyong Pharmaceutical Stock code: 300966 Chinese name of the company: Hubei Tongyong Pharmaceutical Co., Ltd.

The company’s Chinese abbreviation: Kyodo Pharmaceutical

The company’s foreign name (if any) Hubei Goto Biopharm Co.,Ltd.

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

Goto Biopharm

Yes)

The legal representative of the company is Zubin

Registered address Gaokeng Group 1, Xiaohe Town, Yicheng City

Registered address postal code 441401

Historical changes of the company’s registered address None

Office address Postal code of the office address on the 33rd floor of Building 1, Global Financial City, Jiangshan South Road, Wolong Avenue, Fancheng District, Xiangyang City, Hubei Province 441057

Company website http://www.gotopharm.com

Email [email protected]

2. Contact person and contact information

Secretary of the Board of Directors Name of Securities Affairs Representative Chen Wenjing Wan Ying

Jiangshan South, Wolong Avenue, Fancheng District, Xiangyang City, Hubei Province Jiangshan South, Wolong Avenue, Fancheng District, Xiangyang City, Hubei Province Contact address

33rd Floor, Building 1, Global Financial City 33rd Floor, Building 1, Global Financial City Tel: 0710-3523126 0710-3523126 Fax: 0710-3523126 0710-3523126 Email [email protected] [email protected]

3. Information disclosure and preparation location

The stock exchange website where the company discloses its annual report is http://www.szse.cn/

The name and website of the media where the company discloses its annual report "Securities Times"

The company's annual report is prepared at the company's board of directors office

4. Other relevant information

Accounting firm hired by the company

Name of the accounting firm Daxin Accounting Firm (Special General Partnership) Accounting firm office address 22nd floor, Academy International Building, No. 1 Zhichun Road, Haidian District, Beijing Name of the signing accountant Liu Jiaona, Lian Wei

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

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

□Applicable ☑Not applicable

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

□Applicable ☑Not applicable

5. 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 Operating income in 2023 (yuan) 606,178,267.31 536,595,592.03 12.97% 566,399,208.58 Net profit attributable to shareholders of listed companies

-73,359,121.23 -27,591,132.24 -165.88% 23,005,014.76 profit (yuan)

Deductions attributable to shareholders of listed companies

Net profit from non-recurring gains and losses -71,498,578.05 -28,216,624.07 -153.39% 20,961,686.55 (yuan)

Net cash flow from operating activities

41,036,390.33 -20,588,447.63 299.32% 68,132,540.93 amount (yuan)

Basic earnings per share (yuan/share) -0.64 -0.24 -166.67% 0.2 Diluted earnings per share (yuan/share) -0.64 -0.24 -166.67% 0.2 Weighted average return on equity -8.38% -2.94% -5.44% 2.45%

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) 2,850,658,259.21 2,789,880,328.86 2.18% 2,447,740,699.18 Net assets attributable to shareholders of listed companies

826,219,731.57 923,137,679.57 -10.50% 952,749,525.16 production (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

Unit: Yuan

Project 2025 2024 Remarks

Operating income (yuan) 606,178,267.31 536,595,592.03 -

Subtotal of business income unrelated to the main business 10,727,686.52 4,027,486.85 Deduction amount of business income unrelated to the main business (yuan) 10,727,686.52 4,027,486.85 -

Amount after deduction of operating income (yuan) 595,450,580.79 532,568,105.18 Not applicable

6. Main financial indicators by quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter operating income 139,216,213.10 163,183,427.24 152,671,699.92 151,106,927.05 Net profit attributable to shareholders of listed companies 1,082,077.92 -12,234,605.17 -21,282,351.06 -40,924,242.92 Non-economic deductions attributable to shareholders of listed companies

1,336,631.03 -11,555,740.24 -21,995,720.97 -39,283,747.87 Net profit from regular gains and losses

Net cash flow generated from operating activities -28,774,281.53 22,981,386.70 -373,113.53 47,202,398.69 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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

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. Non-recurring profit and loss items and amounts

☑Applicable □Not applicable

Unit: Yuan

Item Amount in 2025 Amount in 2024 Amount in 2023 Description of gains and losses from disposal of non-current assets (including accrued asset deductions)

-1,437,181.19 113,563.03 168,297.30 offset portion of value provision)

Government subsidies included in current profits and losses (related to the company’s normal operations)

business is closely related, in compliance with national policies and regulations, and in accordance with the correct

4,028,197.34 4,401,481.28 4,325,857.42 Enjoy certain standards and have a lasting impact on the company’s profits and losses

(Except government subsidies)

Except for effective hedging related to the company’s normal business operations

In addition to business, non-financial enterprises hold financial assets and financial liabilities

0.13 0.18 18,780.15 Gains and losses from changes in fair value of bonds and disposal financing

Profit and loss arising from assets and financial liabilities

Other non-operating income and expenses other than the above items -4,229,798.30 -3,243,213.86 -2,063,682.27 Gains and losses arising from estimated liabilities unrelated to the company's main business -24,941.97

Less: Income tax impact 82,105.22 581,456.95 400,798.83

Amount of impact on minority shareholders' equity (after tax) 114,713.97 64,881.85 5,125.56 Total -1,860,543.18 625,491.83 2,043,328.21 --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.

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

Item Amount involved (yuan) Reason

Individual tax refunds withheld and paid 29,440.37 Continuously occurring each year, not contingency, can be recognized as recurring profits and losses Other income 13,395,494.37 Amortization of government subsidies related to assets/income

The additional value-added tax deduction 2,499,542.79 occurs continuously in each year and is not incidental, and can be recognized as recurring profits and losses. Full text of the 2025 Annual Report of Hubei Tongyong Pharmaceutical Co., Ltd.

Section 3 Management Discussion and Analysis

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

(1) The company’s main business, main products and uses, and business model during the reporting period

The company’s main business

Since its establishment, the company has been mainly engaged in the research and development, production and sales of steroidal drug raw materials, and is committed to "providing customers with the best products and services". The company's main products are starting materials, intermediates and APIs required for the production of steroidal drugs.

The subsidiary Co-Bio has an annual production capacity of 2,700 tons and occupies the technological commanding heights in the fields of key starting materials such as androstenedione and bis-butyl alcohol, and the market share of many products ranks first in the segment; the subsidiary Steroid Pharmaceuticals has achieved a full-category layout of sex hormones, progestins, corticosteroids, and other APIs, building the most complete matrix of steroid drug APIs in China; the subsidiary Co-Steroids is an industry leader in The industry's exclusive vertically integrated R&D platform relies on a high-end scientific research team to break through the four core technologies of bacterial strain directional screening, enzyme engineering directional transformation, efficient sterol conversion and green synthesis process, forming a closed-loop innovation system from basic research to industrial transformation. The technical achievements have won many authoritative certifications such as the National Science and Technology Progress Award, and continue to consolidate the "technology + production capacity" double barrier advantage in the field of steroid drugs.

2.Main products and uses

In terms of starting materials for steroid drugs, the company's current main products include 4-androstenedione (4-AD), androstenedione (ADD), bis-butol (BA), and 9-hydroxyandrostenedione (9OH-AD), which are mainly used by downstream companies to develop steroid drugs such as glucocorticoids, sex hormones, anabolic hormones, and bile acids. These steroid drugs play an important regulatory role in the development, growth, metabolism, and immune function of the body.

On the pharmaceutical intermediate side, the company has sex hormone intermediates, progesterone intermediates, corticosteroid intermediates and other intermediate products. Sex hormone intermediates such as testosterone, nandrolone, etc., are mainly used to continue the synthesis of downstream high value-added steroid drugs such as methyltestosterone, which can promote the maturation of sexual organs, the development of secondary sexual characteristics and maintain sexual function; progesterone intermediates such as progesterone, etc., are mainly used to continue the synthesis of high-end progestins, for the treatment of related diseases caused by progesterone deficiency, or in combination with estrogen Used in combination as family planning drugs; corticosteroid intermediates such as cortisone acetate, etc., are mainly used to continue the synthesis of various downstream corticosteroids; other types of intermediates can be synthesized such as cholic acid drug ursodeoxycholic acid, cardiovascular drug eplerenone, anti-cancer drug abiraterone, muscle relaxant drugs vecuronium bromide, rocuronium bromide, diuretic spironolactone and other different types of drugs.

On the API side, the company's main products include sex hormone series, progesterone series and non-hormone series.

Specific products and functions are as follows:

Product Series Product Category Abbreviation Main Product Name Product Structure Function

AD androstenedione

starting materials

Androstenedione and 9-hydroxy-androstenedione can continue to be synthesized or biotransformed to obtain steroid hormone downstream products. BA double alcohol

Diol is mainly used to continue the synthesis of progesterone, and can also be used to produce corticosteroids and

Bile acid products

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

9-OH-AD 9-hydroxy-androstenedi

ketones

Sex hormone intermediates include stanozolol, testosterone, etc., which are mainly used to continue the synthesis of methyl hormones such as stanozolol and other downstream high value-added sex stimulant intermediates such as testosterone, which can promote the maturation of sexual organs, the development of secondary sexual characteristics and maintain sexual function.

Progesterone intermediates include progesterone intermediates, etc., which are mainly used to continue the synthesis of progesterone progesterone intermediates, such as progesterone intermediates, for the treatment of related diseases caused by progesterone deficiency, or used in combination with estrogen as family planning drugs.

Corticosteroid intermediates mainly include prednisolone, prednisolone, nisolone intermediates, etc., which are mainly used to continue the synthesis of various downstream corticosteroids.

Other downstream products include bile acid drug ursodeoxycholic acid, cardiovascular drug eplerenone, anti-cancer drug abiraterone, muscle relaxants vecuronium bromide, rocuronium bromide and other types of spironolactone

Ammonium, diuretic spironolactone and other different types of intermediates, etc.

medication, the scope of indications for steroids and other drugs is gradually expanding

It is clinically suitable for the treatment of male gonadal insufficiency, sexual organ dysplasia, infertility, anorchiosis and cryptorchidism in men; it can also be used for female functional uterine bleeding, menopausal syndrome, breast cancer and sexual organ cancer; liver cirrhosis, aplastic anemia API

Blood, osteoporosis, etc.; wasting diseases.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

It can be used to treat diseases caused by insufficient endogenous progesterone, such as dysmenorrhea, endometrial progesterone series, dydrogesterone, etc., ectopia, secondary amenorrhea, irregular menstrual cycles, dysfunctional uterine bleeding, premenstrual syndrome, threatened abortion or habitual abortion caused by progesterone deficiency, and infertility caused by luteal deficiency.

It can be used to increase the secretion of bile acids, change the composition of bile, and reduce the bile non-hormone series ursodeoxycholic acid and other sterols and cholesterol lipids in bile, which is conducive to the gradual dissolution of cholesterol in gallstones.

Business model

(1) Procurement model

The company will launch a digital production module in 2025 to realize a collaborative working mechanism with the supply chain center (purchasing + warehousing). The company's production department formulates a monthly production plan based on the production status. After confirmation by the relevant person in charge, the monthly production plan is notified to the supply chain center; the supply chain center determines the purchase quantity based on the inventory quantity, transportation time period, etc., and the person in charge of the company reviews and verifies the purchase request; after the review and verification are correct, raw materials are purchased from qualified suppliers; after the raw materials arrive at the factory, the quality department conducts sampling inspections, and the warehousing procedures are completed after acceptance.

In terms of supplier selection, the company has established a three-dimensional supplier access system of "quality-supply-compliance". Through the dynamic evaluation of the quality department, a list of more than 200 qualified suppliers has been formed, of which strategic cooperation suppliers account for 35%. Key raw materials have implemented a dual-supplier backup mechanism to ensure the security of the supply chain.

(2) Production mode

The company has many types of products, and the production cycles of each product are different, so the company adopts a "standardization + customization" dual-track production strategy: rolling production plans are formulated based on market demand forecasts for starting material products, and safety inventories are set up to quickly respond to order demands; intermediate products are batch-produced for long-term stable demand varieties, and the "order trigger" model is adopted for customized products, and flexible production lines are used to flexibly adjust production capacity to achieve efficient delivery of small batch orders.

The company's main products are all produced independently, and product production is generally carried out in a "sales-based production" model.

(3) Sales model

The company's products are mainly sold to steroid drug manufacturers at home and abroad, and can be divided into domestic sales and export sales according to the region where the customers are located. The company mainly establishes business contacts with industry customers by participating in domestic and foreign exhibitions, proactive visits, etc., establishes cooperative relationships after product quality standards are determined, and maintains relationships with existing major customers through regular visits and other methods. The company comprehensively determines the sales price of its products every month based on factors such as price changes of main raw materials and competitor product pricing, and signs purchase and sales contracts with customers. For domestic customers, after the company signs the contract, the goods will be shipped directly to the customer as agreed; for export customers, after the company signs the contract, the company will make export customs clearance and then deliver the goods to the customer.

(4) R&D model

The company insists on using innovation as its engine and has established an efficient R&D management system. On the one hand, relying on its independent R&D center, the company has established multiple high-level R&D platforms to continuously strengthen the "hematopoietic" function of independent R&D; on the other hand, the company vigorously promotes open innovation and integrates the scientific research power of universities, scientific research institutes and outstanding enterprises to form a collaborative R&D pattern of internal and external linkage and resource sharing.

(2) The company’s product market position, competitive advantages and disadvantages, and main performance drivers during the reporting period

The market position of the company’s products

In the field of starting materials, the company took the lead in breaking through the directional conversion process of phytosterols with its biological fermentation technology, achieving large-scale production of key starting materials such as androstenedione (AD) and bis-butanol (BA), establishing a benchmark position in domestic steroid drug starting material technology. In the field of intermediates, relying on the advantages of enzyme engineering and green synthesis technology, we have extended downstream to develop a full range of intermediates such as sex hormones, progestins, and corticosteroids. The product matrix covers more than 100 types and accurately matches the full text of the 2025 Annual Report of Jinyao Pharmaceutical Co., Ltd. Hubei Gongyong Pharmaceutical Co., Ltd.

The company, Zhejiang Xianju Pharmaceutical Co., Ltd. and CHEMO, SUNPHARM and other domestic and foreign customers have diversified needs and become a core supplier of steroid drug intermediates. 2. Competitive advantages and disadvantages

The company has built a vertically integrated R&D platform, connected with the full-chain technology system of "starting materials-intermediates-API", and continues to promote the industrialization of high-value results through process innovation. The company’s product strategy focuses on three major directions:

Technology iteration - deepen the integration of biotransformation and synthetic biology technologies and reduce the production costs of key intermediates;

Capacity expansion - optimize the automation level of existing production lines and increase the proportion of high value-added products in production capacity;

Market Deepening - Consolidate strategic cooperation with leading global pharmaceutical companies and expand the layout of intermediates in emerging fields such as anti-cancer and assisted reproduction. Through the two-wheel drive of "technology leadership + production capacity release", the company will continue to consolidate its core position in the steroid drug industry chain and promote high-quality development of the industry.

During the reporting period, product price competition in the field of steroid drugs continued. With the expansion of production capacity and the extension of the industrial chain, scale advantages and technological advantages have become the company's core competitive advantages.

Main performance drivers

As a technology-driven enterprise, the company always regards R&D and innovation as the core engine of development, and steadily promotes its industrial upgrading strategy through continuous resource investment. During the reporting period, under the guidance of the operating policy of “four reductions (reducing inventory, reducing receivables, costs, and liabilities) and four liters (increasing production capacity, profit margins, R&D capabilities, and marketing capabilities)”, the company’s business strategy achieved certain results. While consolidating its business foundation, the company unswervingly implements the R&D-first strategy, continuously enriches the product matrix by increasing the development of new products, and accelerates the reserve process of key intermediates and APIs, thereby steadily advancing the layout of the entire industry chain of "starting materials-intermediates-APIs-preparations". This series of measures not only significantly enhances the company's market competitiveness, but also lays a solid foundation for steady and sustainable development in the future.

2. Industry conditions of the company during the reporting period

(1) Basic situation, development stage, cyclical characteristics and industry status of the industry

Basic situation of the industry

According to the industry classification of the "Guidelines for Industry Classification of Listed Companies (Revised in 2012)" ([2012] No. 31), the company belongs to "C27 Pharmaceutical Manufacturing" under "C Manufacturing"; according to the "National Economic Industry Classification" (GB/T4754-2017), the company's industry is "Pharmaceutical Manufacturing" (C27).

As an important branch of the chemical drug system, the discovery and industrial synthesis of steroid drugs is hailed as a milestone breakthrough in the field of medicine in the twentieth century (tied with antibiotics as two landmark achievements). This type of drug has multiple pharmacological properties such as anti-inflammation, immunosuppression, and metabolic regulation through precise endocrine regulation mechanisms. Its clinical application covers six core areas: ① rheumatic immune diseases (such as rheumatoid arthritis, systemic lupus erythematosus); ② respiratory diseases (bronchial asthma) Asthma, etc.); ③ Dermatological indications (eczema, atopic dermatitis); ④ Reproductive health (contraception, hormone replacement therapy); ⑤ Critical illness rescue (septic shock, acute allergic reaction); ⑥ Chronic disease management (secondary prevention of coronary heart disease, auxiliary treatment of HIV/AIDS). According to statistics from IMS Health, there are more than 400 steroidal drug preparations in the world, of which hormonal drugs account for more than 60%.

In recent years, as the global pharmaceutical market continues to grow, the market size of steroid drugs has also shown a steady upward trend. According to market research reports, global sales of steroid drugs have reached tens of billions of dollars and are expected to maintain a high growth rate in the next few years. This growth is mainly due to the widespread use of steroid drugs in the treatment of various diseases, as well as the advancement of new drug research and development and clinical trials.

The size of the steroid drug market in my country has also shown significant growth. Thanks to the expansion of the domestic pharmaceutical market and the improvement of people's living standards, the demand for steroid drugs continues to rise. Especially in the fields of endocrine disorders, inflammatory diseases and tumor treatment, the market share of steroid drugs continues to grow. In addition, the support of national policies and the optimization of the drug approval process have also provided favorable conditions for the development of the steroid drug market.

In terms of growth trends, the steroid drugs market is expected to continue to maintain steady growth. On the one hand, as the global population ages, the demand for steroid drugs in the treatment of chronic diseases will continue to increase. On the other hand, the development of biotechnology and the advancement of new drug research and development will continue to introduce new steroid drug products to meet the diverse needs of the market. Therefore, it is foreseeable that the steroid drugs market will maintain a steady growth trend in the next few years.

my country’s industry development stage

my country's steroid drug industry has developed through three stages: the technology introduction period in 1950, the industrialization acceleration period in 1990, and the innovation and transformation period after 2010. The current industry scale has exceeded 30 billion yuan, making it the world's largest producer of steroidal APIs. However, structural contradictions are prominent, as shown in the following: innovative preparations account for less than 15%, product lines are concentrated in traditional varieties such as dexamethasone and prednisone (more than 40 approvals), and high-end sustained-release preparations and targeted hormone drugs still rely on imports. According to Frost & Sullivan data, high value-added preparations account for only 6.8% of the global market share of my country's steroid drugs. There is a significant technological generation gap compared with developed countries.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Industry cyclical characteristics

The pharmaceutical industry is essentially an urgent need for people's livelihood, and shows a weak cyclicality as a whole; however, the subdivisions are affected by technology, policies and demand, and there are structural fluctuations.

The company’s industry status

As a leading enterprise in the field of domestic steroid drug raw materials, the company has established dual competitive advantages through the coordinated development of the three-level industrial matrix of "starting materials-intermediates-API": on the technical side, it ensures supply chain security through dual technical paths of phytosterol degradation and biological fermentation; on the cost side, it achieves comprehensive cost reduction with the help of a vertically integrated production system. The company has become the core driving force in the industrialization process of domestic steroid drugs.

The company's operating performance and innovative development have been fully recognized by governments at all levels and industry colleagues. It has won a number of government and industry honors, and its industry status and influence have been significantly improved. With the approval of competent authorities at all levels, the "Hubei Provincial Enterprise Technology Center", "Hubei Provincial Phytosterol Engineering Technology Research Center", and "Steroidal Drugs and Intermediates Hubei Provincial Pilot Base", "Steroidal Drugs and Intermediates Hubei Provincial Engineering Research Center", "Steroidal Drug Research Institute CNAS Analysis and Testing Center"; selected as "National High-tech Enterprise", "National Specialized and Special New 'Little Giant' Enterprise", "National Intellectual Property Advantage Enterprise", "National 5G Factory Directory", "Specialized Specialized and New Small and Medium-sized Enterprises", "Hubei Province Manufacturing Single Championship Product", "Hubei Province Green Factory" ", "Hubei Province 5G Factory", "Hubei Province Intelligent Manufacturing Enterprise Pilot Demonstration", "Hubei Province Agricultural Industrialization Key Leading Enterprise", "Hubei Province Technology Reform Consulting and Diagnostic Warehousing Enterprise", "Hubei Province Synthetic Biological Industry Technology Innovation Consortium Governing Unit", "Hubei Province Contract-abiding and Creditworthy Enterprise", "Hubei Province Pharmaceutical Industry Association Member Unit"; won the title of "National Worker Pioneer", "China Good Technology Third Prize", and other honors.

As of the end of the reporting period, the company had applied for a total of 138 patents (68 invention patents and 70 utility model patents), of which 82 patents had been authorized (23 invention patents and 59 utility model patents among the authorized patents), and 56 patent applications had passed the preliminary examination or been accepted by the State Intellectual Property Office or entered substantive examination.

(2) The significant impact of new policies on the industry

At the critical juncture of the end of the "14th Five-Year Plan", my country's pharmaceutical policy in 2025 will focus on innovation leadership, quality improvement, medical insurance optimization, and industrial upgrading, forming a multi-dimensional collaborative effort pattern. On the one hand, we strengthen the bottom line of industry development by strengthening full-chain supervision and compliance requirements; on the other hand, we continue to improve the innovative drug support system and promote the advancement of the industry in the direction of digital intelligence and internationalization, ultimately creating a stable, standardized, and positive policy ecosystem for the high-quality development of the pharmaceutical industry.

During the reporting period, the General Office of the State Council issued the "Opinions on Comprehensively Deepening the Supervision Reform of Drugs and Medical Devices to Promote the High-Quality Development of the Pharmaceutical Industry", which ushered in important institutional benefits for my country's pharmaceutical and device industry. This opinion closely follows the full life cycle supervision, clarifies the direction of reform in terms of speeding up review and approval and supporting innovation, provides strong institutional support for the high-quality development of the industry, and effectively leads the industry to a new stage of innovation-driven and high-quality supply.

During the reporting period, seven departments including the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the State Food and Drug Administration jointly issued the "Implementation Plan for the Digital Transformation of the Pharmaceutical Industry (2025-2030)", which clearly proposed to deepen the application of new generation information technologies such as artificial intelligence, big data, and digital production in the pharmaceutical field. It aims to achieve full coverage of the digital transformation of pharmaceutical industry enterprises, greatly enhance the integration and innovation capabilities of digital technology, improve the entire chain data system of the pharmaceutical industry, and improve the ecological system of the digital transformation of the pharmaceutical industry.

During the reporting period, the National Medical Insurance Administration and the National Health Commission jointly issued "Several Measures to Support the High-Quality Development of Innovative Drugs", focusing on full life cycle support for innovative drugs. The policy aims to optimize the R&D support mechanism, access and payment mechanism, clinical implementation mechanism, payment and internationalization mechanism, build a more positive ecological environment for innovative drugs, further stimulate the vitality of corporate R&D investment, and inject strong impetus into the sustained and rapid development of my country's innovative drug industry.

During the reporting period, the State Food and Drug Administration and the National Health Commission jointly released the 2025 version of the Pharmacopoeia of the People's Republic of China. The new version of the Pharmacopoeia comprehensively improves drug quality control standards, focuses on strengthening safety control and quality traceability, and establishes a dynamic quality control system. The new version of the Pharmacopoeia marks that my country's drug supervision has entered a new stage of precision and digitization. By building a scientific and rigorous quality standard system, it not only builds a solid defense line for public drug safety, but also effectively improves the overall safety level and international competitiveness of my country's drugs.

3. Core competitiveness analysis

During the reporting period, the company's core competitiveness remained unchanged. The company has always firmly promoted the integration strategy of the entire industry chain of "starting materials-intermediates-APIs-preparations" for steroid drugs, with the development mission of "technical innovation drives industrial upgrading, forging a 'unique' brand with ingenuity, and leading a new benchmark for intelligent manufacturing of steroid drugs in China". During the reporting period, the company’s core competitiveness was reflected in:

(1) Integration of the entire industry chain and cost control capabilities

Through vertical extension, the company has opened up every key node of the "whole steroid drug industry chain" from starting materials to intermediates to high-end APIs. This vertical integration layout has brought significant cost synergies, quality controllability and supply chain security to the company.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(2) Technology-driven and green manufacturing barriers

In exploring diversified routes, the company actively promotes the strategic transformation from traditional high-energy-consuming chemical synthesis to green bio-manufacturing, and uses technology-driven and green manufacturing to jointly build high-level competition barriers in the industry. By mastering core technologies such as phytosterol bioconversion and enzyme catalysis, the company not only greatly simplifies the production process and reduces costs, but also solves the environmental pain points of high pollution and high energy consumption from the source. The company is using technological innovation as its core green manufacturing capabilities to cope with increasingly stringent global environmental regulations (such as REACH) and Good Manufacturing Practice (GMP) requirements.

(3) Global compliance access and international layout

As an API manufacturer under the company, the subsidiary company Steling Pharmaceuticals is simultaneously promoting certification in China, the United States, Europe, and Japan. Having authoritative certifications such as the U.S. FDA and European CEP will be a "passport" for the company's products to enter the regulated market. Successful international certification will reflect the company's compliance capabilities, and products entering mainstream European and American markets will also constitute extremely high barriers to entry.

Subsidiary Kyoto Biotech took the lead in building the country's first comprehensive CDMO workshop dedicated to servicing steroid drugs. It uses excess capacity to provide customized R&D and production services to global pharmaceutical companies. It not only improves capacity utilization, but also optimizes the profit structure and enhances customer stickiness through high-margin CDMO business.

(4) Diversified product matrix and risk resistance capabilities

The company has built a "diversified product matrix", which includes steroid drug starting materials, intermediates, and APIs, and is distributed in all sectors such as steroid hormones, progestins, corticosteroids, and other categories. This product layout is not only a means of company expansion, but also a core moat for the company to traverse industry cycles and resist external shocks.

4. Main business analysis

Overview

Please refer to the relevant content of "1. Main businesses engaged in by the company during the reporting period".

Income and costs

(1) Composition of operating income

Overall operating income

Unit: Yuan 2025 2024

Amount of year-on-year increase or decrease in operating income Amount Proportion of operating income

Proportion

Total operating income 606,178,267.31 100% 536,595,592.03 100% 12.97% Industry

Manufacturing of steroid drug raw materials 606,178,267.31 100.00% 536,595,592.03 100.00% 12.97% products

Self-produced 548,179,107.90 90.43% 427,809,226.27 79.73% 28.14% Non-self-produced 57,999,159.41 9.57% 108,786,365.76 20.27% -46.69% by region

Domestic 381,665,506.27 62.96% 383,438,774.65 71.46% -0.46% Overseas 224,512,761.04 37.04% 153,156,817.38 28.54% 46.59% Sales model

Direct sales 606,178,267.31 100.00% 536,595,592.03 100.00% 12.97% Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(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

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

Steroid drug raw materials

606,178,267.31 522,680,830.27 13.77% 12.97% 21.26% -5.90%Manufacturing

By product

Self-produced 548,179,107.90 468,340,819.85 14.56% 28.14% 42.03% -8.36% Non-self-produced 57,999,159.41 54,340,010.42 6.31% -46.69% -46.35% -0.59% by region

Domestic 381,665,506.27 361,558,155.93 5.27% -0.46% 11.70% -10.31% Overseas 224,512,761.04 161,122,674.34 28.23% 46.59% 50.11% -1.69% points sales model

Direct selling 606,178,267.31 522,680,830.27 13.77% 12.97% 21.26% -5.90% In case 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 based on 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 in sales tons 1,106.857 873.051 26.78%

Production volume tons 1,951.89 1,189.800 64.05% Manufacturing of steroidal drug raw materials

Inventory tons 556.42 447.964 24.21%

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

☑Applicable □Not applicable

The increase in production volume was mainly due to the investment projects being put into production.

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

□Applicable ☑Not applicable

(5) Composition of operating costs

Product classification

Unit: Yuan 2025 2024

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

heavy heavy

Self-produced products Steroid drug raw materials 468,340,819.85 89.60% 329,756,310.15 76.50% 42.03% Non-self-produced products Steroid drug raw materials 54,340,010.42 10.40% 101,277,008.70 23.50% -46.35% Description

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Cost items 2025 Proportion of cost items 2024 Proportion of cost items Increase or decrease in proportion Direct materials 358,694,373.27 68.62% 266,868,613.50 61.91% 31.28% Direct labor 13,266,951.75 2.54% 11,876,576.39 2.76% 8.95%Manufacturing expenses and others 96,379,494.83 18.44% 49,993,404.07 11.60% 87.68%Trade cost 54,340,010.42 10.40% 102,294,724.89 23.73% -35.07% Total 522,680,830.27 100.00% 431,033,318.85 100.00% 21.46%

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

□Yes ☑No

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

□Applicable ☑Not applicable

(8) Major sales customers and major suppliers

The company’s main sales customers

The total sales amount of the top five customers (yuan) 202,392,371.26 The total sales amount of the top five customers accounts for the proportion of the total annual sales 33.39% 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

Serial number Customer name Sales volume (yuan) Proportion of total annual sales 1 First place 74,889,088.42 12.35% 2 Second place 45,072,743.35 7.44% 3 Third place (new) 35,549,465.33 5.86% 4 Fourth (new) 28,111,858.40 4.64% 5 Fifth place (new) 18,769,215.76 3.10%

Total -- 202,392,371.26 33.39% Other information on major customers

□Applicable ☑Not applicable

The company’s main suppliers

The total purchase amount of the top five suppliers (yuan) 185,769,826.90 The total purchase amount of the top five suppliers accounts for the proportion of the total annual purchase 36.11% The purchase amount of the top five suppliers accounts for the proportion of the related party purchase of the total annual purchase 0.00% Information of the company's top five suppliers

Serial number Supplier name Procurement amount (yuan) Proportion of total annual procurement 1 First place 60,773,535.35 11.81% 2 Second place 50,134,429.21 9.75% 3 Third place 45,817,614.58 8.91% 4 Fourth place (new) 15,238,938.02 2.96% 5 Fifth place (new) 13,805,309.74 2.68%

Total -- 185,769,826.90 36.11% Other information about major suppliers

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

□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 Explanation of major changes

Selling expenses 8,755,403.03 6,851,641.40 27.79%

Management expenses 56,887,189.80 60,971,850.95 -6.70%

Mainly due to the increase in bank borrowings and project loan financial expenses after the raised investment projects were converted into fixed assets 49,216,361.69 22,549,444.73 118.26%

and the cessation of capitalization of interest on convertible bonds.

Research and development expenses 69,851,019.91 51,083,365.27 36.74% Mainly due to increased investment in research and development

R&D investment

☑Applicable □Not applicable

Main R&D projects

Project purpose Project progress Goals to be achieved Estimated impact on the company’s future development

Name

YFXM0014 process optimization in progress Reduce product costs Improve economic benefits and enhance market competitiveness

YFXM0094 Develop new products In progress Expand the company's product line Improve the company's ability to resist risks and increase economic benefits YFXM0158 Process optimization In progress Reduce product costs Improve economic benefits and enhance market competitiveness

YFXM0159 process optimization in progress Reduce product costs Improve economic benefits and enhance market competitiveness

YFXM0017 process optimization in progress Reduce product costs Improve economic benefits and enhance market competitiveness

YFXM0098 Develop new products In progress Expand the company's product line Improve the company's ability to resist risks and increase economic benefits YFXM0099 Process optimization Completed Reduce product costs Improve economic benefits and enhance market competitiveness

GXRD0014 process optimization in progress Reduce product costs Improve economic benefits and enhance market competitiveness

YFXM0091 Develop new products In progress Expand the company's product line Improve the company's ability to resist risks and improve economic benefits

Enrich the company's existing unique biotechnology and improve the overall product YFXM0131 process optimization in progress Reduce product costs

Quality and product placement

Company R&D personnel

2025 2024 Change ratio

Number of R&D personnel (people) 132 115 14.78% Proportion of number of R&D personnel 14.78% 14.08% 0.70% Educational qualifications of R&D personnel

Bachelor's degree 33 27 22.22% Master's degree 45 48 -6.25% Age composition of R&D personnel

Under 30 years old 47 46 2.17% 30~40 years old 47 39 20.51% The company’s R&D investment amount in the past three years and its proportion of operating income

2025 2024 Amount of R&D investment in 2023 (yuan) 69,851,019.91 51,083,365.27 38,098,898.41 Proportion of R&D investment in operating income 11.52% 9.52% 6.73% Amount of capitalized R&D expenditures (yuan) 0.00 0.00 0.00 The proportion of capitalized R&D expenditures in R&D investment 0.00% 0.00% 0.00% The proportion of capitalized R&D expenditures in net profit for the current period 0.00% 0.00% 0.00%Full text of the 2025 Annual Report of Hubei Tongyong Pharmaceutical Co., Ltd.

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

Item 2025 2024 Year-on-year increase or decrease in cash inflow from operating activities Subtotal 587,686,880.95 636,351,939.69 -7.65% Subtotal cash outflow from operating activities 546,650,490.62 656,940,387.32 -16.79% Net cash flow from operating activities 41,036,390.33 -20,588,447.63 299.32% Subtotal of cash inflows from investing activities 183,709.00 17,275,865.13 -98.94% Subtotal of cash outflows from investing activities 166,326,364.17 311,613,852.76 -46.62% Net cash flow from investing activities -166,142,655.17 -294,337,987.63 43.55% Subtotal cash inflow from financing activities 468,380,787.85 780,091,146.66 -39.96% Subtotal cash outflow from financing activities 378,195,138.34 460,687,056.14 -17.91% Net cash flow generated from financing activities 90,185,649.51 319,404,090.52 -71.76% Net increase in cash and cash equivalents -34,984,655.89 3,915,873.73 -993.41% Explanation of the main factors affecting significant year-on-year changes in relevant data

☑Applicable □Not applicable

The net cash flow generated from operating activities increased by 299.32% compared with the previous period, mainly due to the increase in cash received from selling goods and the decrease in cash received from purchasing goods and receiving labor services this year;
The net cash flow generated from investing activities increased by 43.55% in this period compared with the previous period, of which the cash inflow from investing activities decreased by 98.94% in this period compared with the previous period, mainly due to the purchase of financial products in the previous period and no financial investment in this period; the cash outflow from investing activities decreased by 46.62% in this period compared with the previous period, mainly due to the decrease in cash paid for the purchase and construction of fixed assets and other long-term assets in this period;
The net cash flow generated from financing activities decreased by 71.76% in the current period compared with the previous period, mainly due to the subsidiary's capital increase from minority shareholders in the same period last year and the decrease in bank borrowings in the current period.

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

5. Non-main business situation

□Applicable ☑Not applicable

6. Analysis of assets and liabilities

Major changes in asset composition

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Unit: yuan End of 2025 Early 2025 Proportion increases

Description of major changes

Amount Proportion of total assets Amount Proportion of total assets Less

Monetary funds 85,845,945.61 3.01% 141,181,205.23 5.06% -2.05%

Accounts receivable 159,349,878.22 5.59% 188,668,396.08 6.76% -1.17%

Inventory 473,756,771.10 16.62% 384,797,242.09 13.79% 2.83%

Investment real estate 17,384,513.60 0.61% 18,014,552.84 0.65% -0.04%

Long-term equity investment 48,294,720.92 1.69% 48,268,996.23 1.73% -0.04%

Mainly due to the fixed assets of the subsidiary Huahai 1,549,239,328.73 54.35% 1,154,486,627.36 41.38% 12.97% The fixed assets of the joint and joint biological workshops

Mainly related to the construction in progress of the subsidiary Huahai 333,586,196.15 11.70% 694,413,010.74 24.89% -13.19% Joint and joint biological department

Right-of-use assets resulting from the transfer of branch workshops 14,175.28 0.00% 70,876.60 0.00%

Short-term borrowings 229,753,280.41 8.06% 294,303,069.17 10.55% -2.49%

Contract liabilities 6,593,536.43 0.23% 1,226,484.65 0.04% 0.19%

Long-term borrowings 621,305,505.80 21.80% 484,919,646.66 17.38% 4.42%

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 for the current period

Fair price in the current period Purchase in this period Output in this period Others

Item Beginning amount Accumulated fair price Profit and loss from changes in value at the end of the period Change in purchase amount Sales amount

value change value

financial assets

Trading financial assets

(Excluding derivative financing 1,010.63 0.13 1,010.76)

Receivables financing 9,623,992.21 11,207,056.13Total of the above 9,625,002.84 0.13 11,208,066.89Financial liabilities 0.00 0.00Other changes

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

Situation at the end of the period Situation at the beginning of the period

Project

Book Balance Book Value Restricted Type Restricted Situation Book Balance Book Value Restricted Restricted Situation Type Situation

Margin/Credit Guarantee Guarantee Credit Guaranteed Funds

20,708,568.48 20,708,568.48 Judicial freeze/acceptance guarantee 41,059,172.21 41,059,172.21 Gold/certificate/gold

Settlement/ETC Freeze Judicial Acceptance Guarantee Full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd.

Margin deposit/freeze Judicial freeze of securities funds/ETC margin freeze/judicial freeze

Fixed capital settled 48,390,411.26 40,728,488.9 Bank loan Bank loan mortgage 774,446,658.26 766,725,231.78 Mortgage

Property 0 Mortgage Mortgage of intangible assets Loan against loan 15,319,285.66 13,554,656.16 Mortgage Mortgage against loan 43,449,375.56 40,586,481.52 Mortgage

Property mortgage under construction Bank loan Bank loan 210,152,775.57 210,152,775.57 Mortgage 148,279,532.72 148,279,532.72 Mortgage

Process mortgage loan investment bank loan bank loan

19,457,843.93 17,384,513.60 Mortgage 19,457,843.93 18,014,552.84 Mortgage

The total amount of real estate mortgages is 1,014,664,971.

314,028,884.90 302,529,002.71 -- -- 1,026,692,582.68 -- --

7. Investment status analysis

Overall situation

□Applicable ☑Not applicable

Major equity investments obtained during the reporting period

□Applicable ☑Not applicable

Major non-equity investments ongoing during the reporting period

□Applicable ☑Not applicable

Financial asset investment

(1) Securities investment situation

□Applicable ☑Not applicable

The company had no securities investments during the reporting period.

(2) Derivatives investment situation

□Applicable ☑Not applicable

The company had no derivative investments during the reporting period.

8. Sales of major assets and equity

Sale of major assets

□Applicable ☑Not applicable

The company did not sell any major assets during the reporting period.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Sale of major equity interests

□Applicable ☑Not applicable

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 Main

Company name Registered capital Total assets Net assets Operating income Operating profit Net profit

Type Business

Hubei Common - -

Zi Gong Starting 1,819,504,5 549,636,8 519,442,5

Biotechnology 100,000,000.00 52,605,14 42,908,20

Division Materials 78.07 67.23 73.99

Co., Ltd. 8.48 0.22 Acquisition and disposal of subsidiaries during the reporting period

□Applicable ☑Not applicable

Description of major holding and joint-stock companies

None

10. Structured entities controlled by the company

□Applicable ☑Not applicable

11. Prospects for the company’s future development

(1) Company development plan and goals

During the "15th Five-Year Plan" period, the company will continue to create new productivity and take "technology-driven, green transformation, and global layout" as the company's three major development strategies: First, promote the popularization of biosynthesis and enzyme catalysis technology across the entire product line and shorten product production cycles; second, accelerate the green transformation of product processes, reduce the use of organic solvents through new catalysts, innovate recycling and refining processes for solvents, waste residues, etc., and accelerate the promotion of green and environmentally friendly manufacturing; third, develop a new global layout paradigm of "joint development and commercialization" through in-depth binding with overseas partners.

(2) Business plan for 2026

Looking forward to 2026, the company will deepen its core business areas, establish a development policy based on compliance operations, innovation-driven as the core, and market demand-oriented, and will unswervingly implement the sustainable development strategy.

Optimize operations and management to promote a steady recovery in operating income and profits

In 2026, the company will optimize its operations and management, deeply tap internal potential, strengthen cost control and market development, stabilize the sales of core products, improve profitability, and promote a steady recovery in operating income and profits.

Strengthen R&D innovation and continue to promote process optimization and technology upgrading.

In 2026, the company will continue to strengthen R&D innovation, accelerate the commercialization progress of varieties under research, enrich the product matrix of key intermediates and APIs, continue to promote process optimization and technology upgrading, and consolidate the industry's technological leadership.

Deepen lean production and create a global high-standard manufacturing system

The company will benchmark against world-class biopharmaceutical companies, build a modern production system, continue to deepen the concept of lean production, and optimize the production process and quality control structure. We strictly follow global GMP regulations and implement full-process quality management, covering rigorous and efficient procurement inspection, production process monitoring and finished product release testing, to ensure that the quality of each link is controllable and stable. At the same time, the level of production automation and production capacity utilization efficiency will be improved to consolidate the foundation of product quality. Always adhere to globally unified quality management standards, strictly abide by the GMP requirements of China and overseas target markets, continue to maintain ISO and other international quality management system certifications, and build brand reputation with firm quality commitment. Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report

reputation and win the long-term trust of customers and partners.

Firmly promote green development and earnestly fulfill social responsibilities

In 2026, the company will unswervingly delve into the field of sustainable development, strive to improve the efficiency of comprehensive safety, environmental and quality management, build a solid risk defense line, and safeguard the company's stable operations and sustainable competitive advantages. In terms of environmental protection actions, the company will increase resource investment, fully implement clean production and energy-saving and carbon-reducing technological transformation, accelerate the pace of clean production audit and certification, control pollution from the source, closely follow the national call for low-carbon emissions, and effectively fulfill the social responsibilities of corporate citizens.

(3) Possible risks

Macroeconomic environment fluctuations and market challenge risks

Against a backdrop of global inflation and local instability, economic uncertainty has increased significantly. The cyclical adjustment of the macro economy may affect the company's downstream industry chain, leading to a contraction in customer demand, thereby causing a potential impact on the company's business growth and profitability.

Response measures: Facing the complex external environment, the company will turn challenges into opportunities and comprehensively deepen the implementation of the annual business plan. We will ensure delivery with "saturated production", improve efficiency with "deep tapping of potential", and build a moat with "ultimate cost". At the same time, by strengthening the marketing system and environmental protection value-added strategies, we actively hedge the risks of market fluctuations to ensure that the company maintains its competitive advantage amid industry changes.

Credit and asset impairment risk

(1) Accounts receivable collection and bad debt risk

As of the end of the reporting period, the company's book balance of accounts receivable was 179 million yuan, a decrease of 14.61% from the beginning of the period. Although the company has made corresponding provisions for bad debts in accordance with accounting standards, due to the overall situation in the industry, the payment collection cycle of some downstream customers has been extended. If the macroeconomic environment deteriorates in the future or the credit status of customers undergoes adverse changes, the company may face the risk of being unable to recover accounts receivable on schedule or even suffering bad debt losses, which will in turn affect the company's cash flow and operating performance.

(2) Risk of inventory decline and asset impairment

The company's inventories mainly include raw materials, work in progress and goods in stock. During the reporting period, affected by falling product prices and fluctuations in raw material prices, the net realizable value of some inventory commodities showed a downward trend. In addition, some of the company's R&D projects have been suspended due to technical route adjustments, and there is a possibility of impairment in related capitalized expenditures. If market demand continues to be weak or product prices fall further in the future, the company may face the risk of increased inventory depreciation provisions and asset impairment losses, which will have an impact on current profits.

In response to the above-mentioned risks, the company has taken the following countermeasures: first, optimize the customer credit management system, dynamically adjust credit limits and account periods, and strengthen the responsibility system for collection of overdue accounts; second, strengthen refined inventory management, strictly implement production based on sales, and speed up inventory turnover; third, regularly conduct asset impairment tests and hire professional appraisal agencies to conduct value assessments of goodwill and long-term assets to ensure that financial statements truly and fairly reflect the company's asset status.

Product development risks

The company has always adhered to the innovation-driven development strategy. During the reporting period, R&D investment accounted for 11.52% of operating income. Since pharmaceutical product research and development has the characteristics of long cycle, large investment and high risk, and involves multi-disciplinary intersection and technological integration, if the company encounters bottlenecks in key technology research and development, the research and development results do not meet expectations, or the research and development project is terminated, the company will face the risk of unrecoverable initial investment, and high research and development expenses will put continuous pressure on the company's short-term profitability.

Countermeasures: First, before the product is officially approved, conduct in-depth fashion feasibility studies, strengthen full-process management of R&D, efficiently coordinate the company's core resources, and ensure that products under development are promoted as planned; second, introduce the IPD process at the Wuhan Research Institute, the company's professional R&D institution, to improve R&D efficiency; third, establish strict intellectual property firewalls and active incentive programs to ensure technical security and team stability.

12. Registration form for reception of research, communication, interviews and other activities during the reporting period

☑Applicable □Not applicable

Reception objects Main content of discussion Basic information of the research Reception time Reception place Reception method Reception objects

Type and information provided Status index Huaan Securities, Yinhua Fund,

See Juchao Information Northeast Securities, Pacific Securities

Net "2025 March 2025 Securities, Kaifeng Investment, Dongguan Securities

Telephone conference Telephone communication Institutions See Juchao Information Network Investor Day 07 on July 7 Securities, Yinhua Fund, Ruiqi Futures

Records of relationship activities, Oriental Fund, CITIC Construction

Table》

Investment, China Universal Fund, Oriental

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

red

Value Online Please refer to Juchao Information (https://www.net "2025 May 2025 Online Platform Annual Performance Statement for Online Participation"

.ir- Others See all investors at the Investor 09 Online Exchange Meeting on cninfo.com on March 9th

online.cn/) Relationship activity record network interaction table》

Panorama Network"

See Juchao Information Investor Relations Mutual Participation “2025 Hubei Jurisdiction

Network "June 2025 June 2025 Mobile Platform Network Platform District Listed Company Investors Online

Others, please refer to Juchao Information Network’s investment in the “Online Communication and Collective Reception Day” event on the 12th.

Investor relations activities record (https://ir. Investors

Record form》p5w.net）

Guosen Securities, Cathay Ocean Pass

Securities, Caida Securities, Huafu Securities

Securities, CITIC Construction Investment, Fengjingji

Jin, Dechuang Fund, Yuandaxin

Interest Securities Research Institute, Beijing Tian

Xiang Capital Management Co., Ltd.,

See Juchao Information Zhiyuan Investment Management Co., Ltd.

Net "2025 October 2025 Division, Shenzhen Qianhai Golden Sunshine

Company Office Field Research Institutions See Juchao Information Network Investment on October 16th Asset Management Co., Ltd., Geng

Investor Relations Activities Ji (Shanghai) Investment Management Co., Ltd.

Record Sheet Co., Ltd., Shanghai Langcheng Investment

Management Co., Ltd., Shanghai Association

Energy Technology Co., Ltd., Zhejiang

Weixiang Enterprise Management Co., Ltd.

Company, Zhejiang Fengdao Investment Management

Ltd.

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 Hubei Tongyong Pharmaceutical 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 relevant laws and regulations such as the Company Law, Securities Law, Shenzhen Stock Exchange GEM Stock Listing Rules, Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operation of GEM Listed Companies, and the relevant laws and regulations of the China Securities Regulatory Commission. It continuously improved the company's corporate governance structure, established and improved the company's internal management and control system, continued to carry out in-depth corporate governance activities, and improved the company's standardized operation and governance levels.

As of the end of the reporting period, there was no significant difference between the actual status of corporate governance and the normative documents on the governance of listed companies issued by the China Securities Regulatory Commission.

(1) About shareholders and shareholders’ meetings

The company convenes and holds shareholders' meetings in strict accordance with the "Rules of Shareholders' Meetings of Listed Companies", "Articles of Association", "Rules of Procedure for Shareholders' Meetings" and other provisions and requirements, and provides convenience for shareholders to participate in the meetings so that they can fully exercise their rights. In order to facilitate the participation of small and medium-sized shareholders, the company also opens an online voting platform when convening shareholders' meetings so that shareholders can fully express their opinions and hires lawyers to conduct on-site witnessing to ensure that the convening, holding and voting procedures of the meeting comply with relevant legal provisions and safeguard the legitimate rights and interests of shareholders.

During the reporting period, the company held a total of 1 annual shareholders' meeting and 1 extraordinary shareholders' meeting. The shareholders' meeting held by the company did not violate the "Rules for Shareholders' Meetings of Listed Companies". The company did not have shareholders individually or jointly holding more than 10% of the company's total voting shares request to convene an extraordinary shareholders' meeting. According to the provisions of the Articles of Association, all major matters that should be reviewed by the shareholders' meeting are reviewed by the company. There is no situation of bypassing the shareholders' meeting, nor is there any situation of implementation first and review later.

(2) About the company, controlling shareholders and actual controllers

The company's controlling shareholders and actual controllers regulate their own behavior in strict accordance with relevant regulations and requirements such as the "Code of Corporate Governance for Listed Companies", "Shenzhen Stock Exchange's GEM Stock Listing Rules", "Shenzhen Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies" and the "Articles of Association". There is no illegal interference in the company's normal decision-making procedures and operating activities, and no harm to the interests of the company and all shareholders. The company has an independent and complete main business and independent operating capabilities. It is independent of the controlling shareholders and actual controllers in terms of personnel, assets, business, management organizations, and financial accounting systems. It can operate independently, operate independently, and bear responsibilities and risks independently. The company's controlling shareholders and actual controllers can exercise their rights in accordance with the law and assume corresponding obligations.

During the reporting period, there was no behavior that exceeded the authorized authority of the shareholders' meeting and the board of directors, directly or indirectly interfered with the company's decision-making and operating activities, or used its control position to infringe on the interests of other shareholders. It had no adverse impact on the company's governance structure and independence.

(3) About directors and board of directors

The company's board of directors consists of 9 directors, including 3 independent directors and 1 employee representative director. The number and composition of the board of directors meet the requirements of laws, regulations and the Articles of Association. The directors of the company carry out their work in accordance with relevant regulatory rules, the Articles of Association, the Rules of Procedure of the Board of Directors and other provisions, attend the board of directors and shareholders' meetings, and perform their duties and obligations diligently and responsibly. Independent directors, in accordance with relevant regulatory rules and the "Articles of Association", "Working System of Independent Directors" and other relevant provisions, shall not read the full text of the 2025 Annual Report of Hubei Gongyong Pharmaceutical Co., Ltd.

The affected areas independently performed their duties, actively attended the meetings of the company's board of directors and its special committees, and shareholders' meetings. Regarding related-party transactions and other matters involving the interests of small and medium-sized investors, they participated in special meetings of independent directors and expressed opinions based on the principles of independence, objectivity and prudence, ensuring the company's standardized operations.

The company's board of directors consists of an audit committee, a strategy committee, a nomination committee, and a remuneration and assessment committee. The above-mentioned special committees perform their duties in strict accordance with relevant regulatory rules and the rules of procedure of each special committee, providing useful supplements to the scientific decision-making of the board of directors.

During the reporting period, the company held a total of 8 board meetings. The convening, convening and voting procedures, and resolution contents were all in compliance with relevant regulatory rules and the relevant provisions of the Articles of Association and the Rules of Procedure of the Board of Directors.

(4) About performance evaluation and incentive and restraint mechanisms

The company's board of directors has set up a remuneration and assessment committee to establish and gradually improve fair and effective performance evaluation standards and incentive and restraint mechanisms for senior managers. It combines the interests of shareholders, the company's interests and the personal interests of the core team to help employees and the company develop together and sustainably. During the reporting period, the company has established a corporate performance evaluation and incentive system. The performance evaluation standards and evaluation procedures for directors and senior managers are fair and transparent. Their income is linked to the company's operating performance. The appointment of senior managers is open, transparent and in compliance with laws and regulations.

(5) Information disclosure and transparency

During the reporting period, the company strictly complied with relevant laws and regulations and the requirements of the Articles of Association, Information Disclosure Management System, and Investor Relations Management System to truly, accurately, timely, fairly and completely disclose relevant information. It designated the secretary to the company's board of directors to be responsible for information disclosure, coordinate the relationship between the company and investors, receive visits from shareholders, answer investor inquiries, provide investors with the company's disclosed information, and disclose information on the Cninfo Network (www.cninfo.com.cn) to ensure that all shareholders of the company have equal opportunities to obtain information. In accordance with the requirements of the "Investor Relations Management System" and "Specific Object Visit Reception Management System", the company strengthens communication with investors by actively responding to investor inquiries, accepting investor visits and research activities, and promotes investors' understanding and recognition of the company.

(6) About relevant stakeholders

The company fully respects and safeguards the legitimate rights and interests of stakeholders, attaches great importance to the company's social responsibilities, adheres to mutual benefit and win-win results with stakeholders, strives to achieve a coordinated balance of interests of society, shareholders, the company, employees, etc., and jointly promotes the company's sustainable and steady development.

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 operates strictly in accordance with the requirements of the Company Law, Securities Law and other relevant laws and regulations and the Articles of Association. Its business, assets, personnel, finance, and institutions are completely independent from the controlling shareholders and actual controllers. It has a complete business system and the ability to operate independently in the market. The company's controlling shareholders strictly regulate their own behavior and do not directly or indirectly interfere with the company's decision-making and operating activities beyond the shareholders' meeting.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Business independence

The company's main business is the research and development, production and sales of steroidal drug raw materials. It has a complete research and development, procurement, production and sales system. It remains independent in all aspects of business operations and does not rely on controlling shareholders and other related parties.

Asset independence

The company's assets are strictly separated from those of its shareholders and operated completely independently. At present, the ownership of all assets related to the company's business and production operations is fully owned by the company. The company has complete control and disposal rights over all assets. There is no situation where assets are occupied by shareholders and harm the company's interests.

Personnel independence

The company's R&D, procurement, production, sales, administrative and financial personnel are completely independent of shareholders. The company's general manager, deputy general manager, financial director, board secretary and other senior managers all work full-time in the company and receive remuneration. None of them hold other positions other than directors and supervisors in the controlling shareholders, actual controllers and other companies controlled by them. The company's financial personnel do not work part-time in the controlling shareholders, actual controllers and other companies controlled by them.

Financial independence

The company has an independent financial department, an independent financial accounting system, and an independent and standardized financial accounting system. The company has an independent bank account. There are no shared accounts with the controlling shareholder, and there are no situations where assets are occupied by shareholders or otherwise harm the company's interests.

Institutional independence

It has a sound organizational structure, and has established a complete corporate governance structure such as shareholders' meeting, board of directors, and operating management in accordance with the Articles of Association, and has clarified the functions of each institution. The company has independent production and operation and office space, and there is no mixing of institutions or shared offices with the controlling shareholders, actual controllers, and other companies they control.

3. Competition within the industry

□Applicable ☑Not applicable

4. The company has arrangements for differential voting rights

□Applicable ☑Not applicable

5. Corporate governance of red-chip structures

□Applicable ☑Not applicable

6. Directors and senior managers

Basic situation

Appointment Increase in this period Decrease in holdings in this period Others Share name Nature Year Start of term End of term Shareholding at the beginning of the period Shareholding at the end of the period

Position Position Number of shares held Increase or decrease Name of increase or decrease Age Start date Date Number (shares) Number (shares)

Certificate Quantity (shares) Change Change Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

State (share) (origin of share)

) Due to Chairman, 2018 2027

Current 36,567,0 36,567,00 Male 55 General Manager, October 16 October 15 0

Ren 00 0bin R&D Director Day Day

Li 2018 2027

Director, Vice President 13,725,3 13,725,30 Ming Male 48 October 16 October 15 0

General Manager Ren 00 0Lei Day Day

Liu 2018 2027

Director, Treasurer

Xiang Male 51 October 16 October 15

Chief Financial Officer

east day day

Wang 2021 2027

now

Study Male 54 Director October 15 October 15

Ren

tomorrow day

Department 2025 2027

now

Si Female 26 Director September 15 October 15

Ren

Yi day day

Chiang 2025 2027

Employee Representative Present

1 Male 34 September 12 October 15

director

smell day day

Dragon 2024 2027

now

Son Male 54 Independent Director October 16 October 15

Ren

noon day day

2024 2027 Qi Xian

Male 48 Independent Director October 16th October 15th Fei Ren

day day

Ho 2024 2027

now

Germany Male 56 Independent Director October 16 October 15

Ren

good day

Chiang 2024 2025

Chairman of the Board of Supervisors Li 1,193,62 Jian Male 61 October 16 September 15 1,193,625

Xi Ren 5th Army Day Day

2024 2025 Cao Li

Female 38 Supervisor October 16 September 15 Huan Ren

day day

2024 2025 Employee Representative Resigned

Female 39 October 16 September 15 Wei Supervisor Ren

day day

Chen Deputy General Manager 2018 2027

now

Text Female 52 Manager, Director October 16 October 15

Ren

Quiet meeting secretary day day

Total 51,485,9 51,485,92

-- -- -- -- -- -- 0 0 0 --

Total 25 5

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

□Yes ☑No

Changes in directors and senior managers of the company

☑Applicable □Not applicable

Name Position held Type Date Reason Siyi Director Elected September 15, 2025 Job transfer Jiang Yiwen Employee Representative Director Elected September 15, 2025 Job transfer

Employment status

The professional background, main work experience and current main responsibilities of the company's current directors and senior managers in the company. The full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd.

(1) Introduction to board members

As of the end of the reporting period, the company's board of directors had a total of 9 members, including 3 independent directors. The biographies of each director are as follows:

Xie Zubin: Male, born in July 1970, Chinese nationality, no permanent residence abroad; Xie Zubin is a representative of the 14th People's Congress of Hubei Province. Graduated from the School of Bioengineering, Hubei University of Technology in June 1992, majoring in fermentation engineering, with a bachelor's degree and is a senior engineer. From June 1992 to December 2002, he worked as a salesperson at Xiangyang International Trade Company; from January 2003 to May 2017, he served as executive director and general manager of Xiangyang Tongtong Chemical Co., Ltd.; from May 2006 to February 2017 In September 2018, he served as the chairman and general manager of Yicheng Gongyong Pharmaceutical Co., Ltd.; from October 2018 to the present, he served as the chairman and general manager of Gongyong Pharmaceutical; from October 2021 to the present, he served as the chairman, general manager and R&D director of Gongyong Pharmaceutical.

Li Minglei: Male, born in November 1977, Chinese nationality, no permanent residence abroad. Graduated from Hubei Foreign Trade School in 1995, majoring in international trade, with a college degree. From June 1996 to December 2002, he served as a salesperson at Xiangyang International Trade Company; from January 2003 to July 2017, he served as the sales manager of Xiangyang Gongcheng Co., Ltd.; from August 2008 to September 2018, he served as the sales director of Yicheng Gongyang Pharmaceutical Co., Ltd.; from October 2018 to present, he serves as the director and deputy general manager of Gongyang Pharmaceutical.

Liu Xiangdong: Male, born in December 1974, Chinese nationality, no permanent residence abroad. He graduated from China University of Geosciences in accounting in 2004, with a bachelor's degree and an intermediate accounting title. From June 2006 to September 2016, he served as the finance minister and securities affairs representative of Xiangyang Changyuan Donggu Industrial Co., Ltd.; from October 2016 to September 2018, he served as the financial director of Yicheng Gongyong Pharmaceutical Co., Ltd.; from October 2018 to present, he served as the director and financial director of Gongyang Pharmaceutical.

Wang Xueming: Male, born in July 1971, Chinese nationality, no permanent residence abroad, graduated from Xiangyang Finance, Taxation and Trade School, with a technical secondary school degree. From October 2008 to September 2018, he served as the warehouse supervisor of Yicheng Gongyong Pharmaceutical Co., Ltd.; from October 2021 to the present, he served as the director of Gongyong Pharmaceutical.

Xi Siyi: Female, born in February 1999, Chinese nationality, no permanent residence abroad, holds a master's degree in bioengineering from the University of California, San Diego. From 2024 to present, he serves as assistant to the president of the subsidiary Hubei Joint Steroid Drug Research Institute Co., Ltd., and will serve as a director of the company from September 2025.

Jiang Yiwen: Male, born in December 1991, Chinese nationality, no permanent residence abroad, college degree. He joined the company in 2014 and is currently the deputy director of the company's purchasing department. He will serve as the employee representative director of the company from September 2025.

Long Ziwu: Male, born in September 1971, Chinese nationality, no permanent residence abroad, graduated from Zhongnan University of Economics and Law, doctoral degree, member of the Communist Party of China. He has successively won the honorary titles of Advanced Individual in Teacher Ethics in Hubei Province, Model Teacher in Teacher Ethics of Wuhan University of Light Industry, and Outstanding Teacher. He was selected into the Wuhan Yellow Crane Talent Program. He serves as the secretary-general of the Hubei Provincial Master of Accounting Professional Degree Alliance, a director of the Accounting Society of China, an executive director of the Accounting Society of Hubei Province, an executive director of the Wuhan Accounting Society, and a director of the China Rural Finance Research Association. He is currently a professor in the Accounting Department of Wuhan University of Light Industry and an independent director of Hunan Juren New Materials Co., Ltd. From October 2024 to present, he has served as an independent director of Kyodo Pharmaceuticals.

Qi Fei: Male, born in September 1977, Chinese nationality, no permanent residence abroad, bachelor’s degree. Currently, he is a partner lawyer of Hubei Dewei Junshang Law Firm and an independent director of Tibet Duorui Pharmaceutical Co., Ltd. He has been an independent director of Kyodo Pharmaceuticals since October 2024.

He Deliang: Male, born in October 1969, Chinese nationality, no permanent residence abroad, doctoral degree, and has conducted postdoctoral research in South Korea and France. Currently, he is a doctoral supervisor and professor at the School of Chemistry and Chemical Engineering, Hunan University. He has been an independent director of Kyodo Pharmaceuticals since October 2024.

(2) Introduction to senior management personnel

There are currently 4 senior managers in the company. Their resumes are as follows:

Zu Bin is the current general manager of the company. For details, please see the resumes of the board members in this section;

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Li Minglei is currently the deputy general manager of the company. For details, please see the resumes of the board members in this section;

Liu Xiangdong is the current financial director of the company. For details, please see the resumes of the board members in this section;

Chen Wenjing: Female, born in June 1973, Chinese nationality, no permanent residence abroad. Graduated from Hubei Foreign Trade School in 1993 with a college degree. Graduated from Wuhan University in 1995, majoring in English, with a bachelor's degree (correspondence education). In December 2010, he graduated from the EMBA CEO training class of the School of Economics and Management of Wuhan University. In May 2018, he obtained the Shenzhen Stock Exchange Board Secretary qualification certificate. From July 1993 to December 2002, he served as salesperson of Xiangyang International Economic and Technical Cooperation Company; from January 2003 to December 2008, he served as sales manager of Xiangyang Tongtong Chemical Co., Ltd. From January 2009 to September 2018, he served as the sales manager of Yicheng Gongyong Pharmaceutical Co., Ltd.; from October 2018 to present, he served as the deputy general manager and secretary of the board of directors of Gongyong Pharmaceutical.

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

☑Applicable □Not applicable

Zu Bin, one of the company's actual controllers, serves as the company's chairman and general manager at the same time. This arrangement is based on the company's current business development needs and the management expertise of the actual controller, which is conducive to improving the company's decision-making and execution efficiency. This employment status complies with the relevant provisions of the Company Law and the Articles of Association. The company has established a complete internal control system and related-party transaction decision-making system to ensure the company's standardized governance and independent operation, and effectively safeguard the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders.

Employment status in shareholder units

□Applicable ☑Not applicable

Employment status in other units

☑Applicable □Not applicable

Name of the person who serves in other units Name of other unit Start date of term End date of term

Position held and receiving remuneration and allowances

Shandong Tongxin Pharmaceutical Co., Ltd.

Xie Zubin Director April 1, 2021 No Co., Ltd.

Shandong Tongxin Pharmaceutical Co., Ltd.

Li Minglei Director April 1, 2021 No Limited Company

Hubei’s win-win situation for a century

Wang Xueming Financial Manager October 1, 2022 Fuzi Business Co., Ltd.

Executive Director and General Manager of Hubei Win-Win Centennial Electric Co., Ltd.

Xi Siyi December 20, 2021 Manager of Fuzi Business Co., Ltd.

Hubei Shengbo Biological Sciences

Xie Siyi Supervisor July 14, 2023 Fu Technology Co., Ltd.

Shanghai Tonghe Wankangsheng

Xie Siyi Supervisor April 2, 2024 Fuwu Technology Co., Ltd.

Guangdong Province General Road Supply

Long Ziwu Independent Director of Yinglian Management Co., Ltd. October 9, 2024 October 8, 2027 Is a limited company

Hunan Juren New Materials

Long Ziwu Independent Director October 20, 2023 October 19, 2026 Is a joint-stock company

Tibet Duorui Pharmaceutical Stock

Qi Fei Independent Director February 21, 2020 March 5, 2026 Yes

Co., Ltd.

Working in other units

None

Description of the situation

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

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Remuneration of directors and senior managers

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

The company's directors are determined by the shareholders' meeting, and the remuneration of senior managers is determined by the board of directors. Directors who concurrently serve as senior managers or other positions in the company receive remuneration according to the remuneration system of their positions. In 2025, the remuneration of the company's directors and senior managers will be determined and paid based on their operating performance, work ability, job responsibilities and other assessments. During the reporting period, the remuneration of directors and senior management personnel was paid in full in accordance with the determined remuneration standards.

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

Chairman, General Manager, R&D Chief

Xie Zubin Male 55 Current 64.82 No

supervise

Li Minglei Male 48 Director, Deputy General Manager Current 54.56 No Liu Xiangdong Male 51 Director, Financial Director Current 33.12 No Wang Xueming Male 54 Director Current 21.07 No Siyi Female 26 Director Current 19.62 No Jiang Yiwen Male 34 Employee Representative Director Current 11.63 No Long Ziwu Male 54 Independent Director Current 7.2 No Qi Fei Male 48 Independent Director Current 7.2 No Jiang Jianjun Male 61 Chairman of the Board of Supervisors Resigned 21.5 No Cao Huan Female 38 Supervisor Resigned 7.53 No Ren Wei Female 39 Employee Representative Supervisor Resigned 18.59 No He Deliang Male 56 Independent Director Incumbent 7.2 No Chen Wenjing Female 52 Deputy General Manager, Secretary of the Board of Directors Current 50.82 No Total -- -- -- -- 324.86 --

The remuneration of directors and senior management personnel is determined according to the company's specific rules and regulations, and the assessment of the actual remuneration received by all directors and senior management personnel at the end of the company's reporting period is determined in accordance with the remuneration system and performance appraisal system. Directors who hold specific positions in the company receive corresponding remuneration according to their specific positions; the company pays monthly compensation for independent directors

Disburse allowances.

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

Completed

situation

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

Not applicable

payment arrangement

Stop payment recovery of actual remuneration received by all directors and senior management at the end of the reporting period

Not applicable

Search situation

Other information

□Applicable ☑Not applicable

7. 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 the reporting period, whether the directors attended the meeting on site for two consecutive days. The director attended the meeting by proxy. Absent from the board of directors. Attended the shareholders' meeting. Name of director. Participated in the board of directors. Participated in the board of directors. Number of times. Number of times. Number of board meetings. Number of times. Number of times.

Number of times Number of times Attend board meeting Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

discuss

Xi Zubin 8 8 0 0 0 No 2 Li Minglei 8 8 0 0 0 No 2 Liu Xiangdong 8 8 0 0 0 No 2 Wang Xueming 8 8 0 0 0 No 2 Xi Siyi 2 1 1 0 0 No 1 Jiang Yiwen 2 2 0 0 0 No 1 Long Ziwu 8 3 5 0 0 No 2 Qi Fei 8 3 5 0 0 No 2 He Deliang 8 2 6 0 0 No 2 Explanation for failing to attend 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, all directors of the company worked diligently and in strict accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, as well as the Articles of Association, the Rules of Procedure of the Board of Directors and other systems. They paid close attention to the company's standardized operations and operations. Based on the company's actual situation, they put forward relevant opinions on the company's major governance and operating decisions. After full communication and discussion, they reached consensus and resolutely supervised and promoted the implementation of the board of directors' resolutions to ensure that decision-making was scientific, timely and efficient, and safeguarded the legitimate rights and interests of the company and all shareholders.

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

Objections

Convene specific committee names for other proposed important implementation items

Member status, date of meeting, content of meeting, opinions and responsibilities required, description of the situation

Times Suggested Conditions (if any)

Consideration of the "On the Abolition of Restrictive Regulations in 2023"

Salary and Examination He Deliang, Qi 2025 04

2 Part of the stock incentive plan has been granted but has not yet been

Nuclear Committee Fei, Wang Xueming February 22

Proposal for Unvested Restricted Stock》

Salary and Examination He Deliang and Qi 2025 08 Review of "About Revision<Company Directors, Senior

Nuclear Committee Fei, Wang Xueming Proposal on the Remuneration Plan for Senior Management Staff on January 27th

Review of "About the Company's 2024 Annual Report"

"Proposal on the First Draft of the Report", "About

Daily relations of the company and its subsidiaries in 2025

Audit Committee Long Ziwu, Qi April 2025

6 Proposals on Transaction Estimation", "About

Can fly, Wang Xueming January 11

The company and its subsidiaries will report to the bank in 2025

Apply for a comprehensive credit line and provide guarantee

Proposal", "Audit Committee 2024

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Annual Performance Report, "Internal Review Report for the First Quarter of 2025", "Internal Review Work Plan for the Second Quarter of 2025"

Consider the "Proposal on the Company's 2024 Annual Report and its Summary", "On the Company's 2024 Internal Control

"Proposal on the Company's 2024 Financial Final Accounts Report", "Proposal on the Company's 2024 Financial Final Accounts Report", "Proposal on the Company's 2024 Profit Distribution Plan", "Proposal on the Company's 2024 Audit Report", "Proposal on the Proposed Re-appointment of Accountants"

Law Firm’s Proposal》

Audit Committee Long Ziwu and Qi 2025 04 Review of the "Proposal on the Company's First Quarterly Report of 2025 Huifei and Wang Xueming on January 28th"

Review of the "2025 Semi-annual Internal Review Audit Committee Long Ziwu, Qi 2025 06

6 Report", "Internal Meeting in the Third Quarter of 2025, Wang Xueming, February 27

Review work plan

Audit Committee Long Ziwu and Qi 2025 08 Review of the "Proposal on the Company's 2025 Semi-Annual Meeting Fei and Wang Xueming Annual Report on February 27th" and its Summary

Reviewed the "Proposal on the Company's 2025 Third Quarter Audit Committee Long Ziwu and Qi's 2025 10th Report", "2025 Sanhui Fei and Wang Xueming Quarterly Internal Review Report on March 27", "2025

"Internal Review Work Plan for the Fourth Quarter of 2020" Nomination Committee members Qi Fei and Xi Zu 2025 08 Review of the "Proposal on the Election of Additional Non-Independent Directors Bin and Long Ziwu at the Third Session of the Board of Directors" on August 27

9. 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.

10. 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) 163

Number of active employees of major subsidiaries at the end of the reporting period (person) 730

Total number of employees at the end of the reporting period (person) 893

Total number of employees receiving salary during the current period (person) 874

The number of retired employees of the parent company and major subsidiaries who need to bear the expenses (person) 20

Professional composition

Major composition category Major composition number (people)

Production staff 402

salesperson 17

Technical staff 225

Finance staff 17

Administrative Staff 232 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Total 893 education levels

Education level category Number (person)

Doctoral degree 5 Master degree 59 Bachelor degree 250 College degree and below 579 Total 893

Remuneration policy

The company strictly abides by the "Labor Law", "Labor Contract Law" and other relevant laws and regulations, and has established a complete salary system and incentive mechanism to scientifically and reasonably protect the vital interests of employees. The company pays employees basic salaries based on factors such as the job value of their positions, employees' personal work abilities, industry salary levels, employee contributions, etc.; it pays employees daily performance bonuses, output bonuses, sales bonuses, etc. based on factors such as the completion of employees' daily work goals; it pays employees annual performance bonuses based on factors such as the company's operating performance and employees' annual performance; it encourages employees to continuously innovate and improve their work, and gives corresponding rewards to employees who have made outstanding contributions to the company's technology improvement and management improvement. At the same time, the company pays more attention to the output and contribution of scientific research personnel, and provides certain project incentive bonuses based on the completion of scientific research projects. The company focuses on personnel with outstanding annual performance and gives them appropriate salary increases.

Training plan

The company carries out the "Sail Plan" talent training project. By establishing and improving the company's training system, focusing on management training, professional training, and general training projects, the company continues to improve employee capabilities and professional qualities, and provides high-quality talents for the company's development. In terms of training operations, the company adopts a flexible approach, combining online and offline simultaneous operations to vigorously improve learning efficiency. In terms of resource management, informatization and digital talent inventory management are adopted to provide informatization support for echelon building. The company is committed to talent training and development, building a talent army to realize the company's strategy, and providing human resource support for the company's long-term and steady development.

Labor outsourcing situation

□Applicable ☑Not applicable

11. Company profit distribution and conversion of capital reserve 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's profit distribution plan for the reporting period and capital reserve conversion plan are consistent with the relevant provisions of the company's articles of association and dividend management measures.

☑Yes □No □Not applicable

The company's profit distribution plan for the reporting period and capital reserve conversion plan are in compliance with the relevant provisions of the company's articles of association and other provisions.

Profit distribution and capitalization of capital reserve this year

Number of bonus shares for every 10 shares (shares) 0 Dividend amount for every 10 shares (yuan) (tax included) 0.45 Number of conversions for every 10 shares (shares) 0 Capital base of the distribution plan (shares) 114,211,513 Amount of cash dividends (yuan) (tax included) 5,139,518.09 Amount of cash dividends in other ways (such as repurchase of shares) (yuan) 0.00 Total cash dividend (including other methods) (yuan) 5,139,518.09

Cash dividend distribution this time

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

If the company is in the growth stage and has major capital expenditure arrangements, when distributing profits, the proportion of cash dividends in this profit distribution should be at least 20%

Detailed explanation of profit distribution or capital reserve conversion plan

The second meeting of the independent directors of the company's third board of directors in 2026 and the 13th meeting of the third board of directors reviewed and approved the "Proposal on the Company's Profit Distribution Plan for 2025", excluding the repurchased shares from the company's existing total share capital of 115,281,113 shares. (The repurchased shares are 1,069,600 shares) The last 114,211,513 shares will be used as the base number, and a cash dividend of 0.45 yuan (tax included) will be distributed for every 10 shares, totaling 5,139,518.09 yuan (tax included). No bonus shares will be given, and no capital reserve will be converted into share capital. If the company's share capital changes due to convertible bonds conversion or other reasons between the announcement of the profit distribution plan and before its implementation, the company will adjust the distribution ratio in accordance with the principle of "the distribution amount remains unchanged".

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

12. Implementation of the company’s equity incentive plan, employee stock ownership plan or other employee incentive measures

☑Applicable □Not applicable

Equity incentives

On February 17, 2023, the company held the 11th meeting of the second board of directors and the 10th meeting of the second board of supervisors, and respectively reviewed and approved the "Proposal on the 2023 Restricted Stock Incentive Plan of Hubei Gongyong Pharmaceutical Co., Ltd. (Draft)" and its Summary and the "Proposal on the 2023 Restricted Stock Incentive Plan of Hubei Gongyong Pharmaceutical Co., Ltd." "Proposal on Planning and Implementing Assessment Management Measures", "Proposal on Submitting to the General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's 2023 Restricted Stock Incentive Plan" and "Proposal on Verifying the List of First Granted Incentive Objects of the 2023 Restricted Stock Incentive Plan of Hubei Tongyong Pharmaceutical Co., Ltd.", independent directors expressed their agreement with this.

On March 7, 2023, the company held the first extraordinary shareholders' meeting of 2023 and reviewed and approved the above resolution.

On March 14, 2023, the company held the 12th meeting of the second board of directors and the 11th meeting of the second board of supervisors, and reviewed and approved the "Proposal on the First Grant of Restricted Stocks to Incentive Objects". The incentive tool used in this incentive plan is the second type of restricted stock. With March 14, 2023 as the grant date, 649,500 restricted shares will be granted to 39 incentive objects who meet the grant conditions at a grant price of 14.67 yuan/share.

On March 5, 2024, the company held the 21st meeting of the second board of directors and the 17th meeting of the second board of supervisors, reviewed and approved the "Proposal on the Reserved Grant of Restricted Stocks to Incentive Objects", agreed and determined the reserved grant date of restricted stocks as March 5, 2024, and granted 150,500 restricted shares to 9 incentive objects who meet the grant conditions at a grant price of 14.67 yuan/share.

On April 24, 2024, the company held the 22nd meeting of the second board of directors and the 18th meeting of the second board of supervisors, and reviewed and approved the "Proposal on Voiding the Restricted Stocks that have been granted but have not yet vested in the 2023 Restricted Stock Incentive Plan". In view of the fact that 3 of the incentive targets who were granted restricted stocks no longer have incentive rights due to resignation. If they are not eligible, the 49,000 restricted shares that have been granted but have not yet vested should be invalidated by the company; the performance assessment targets for the first vesting period of the first vesting period of the restricted stocks granted under this incentive plan have not met the standards, and the company has agreed to void the 180,150 shares of restricted stocks that have been granted to 36 in-service first-time grant incentive targets but cannot be vested in the first vesting period. After this cancellation, the total number of incentive targets of the company's incentive plan was adjusted to 43, and the restricted stocks that had been granted but not yet vested (including the initial grant and reserved portion) were adjusted from 800,000 shares to 570,850 shares.

On April 22, 2025, the company held the fifth meeting of the third board of directors and the fourth meeting of the third board of supervisors, and reviewed and approved the "Proposal on Cancellation of Part of the Restricted Stocks Granted but Not Vested in the 2023 Restricted Stock Incentive Plan". In view of the fact that 10 of the incentive objects who were granted restricted stocks are no longer eligible for incentive objects due to resignation, the 125,250 restricted stocks that have been granted but have not yet vested should be transferred to the company. The company has invalidated and expired; the performance assessment targets for the second vesting period of the first vesting period of the restricted stocks granted under this incentive plan and the first vesting period of the reserved granted restricted stocks have not met the standards. The company agreed to void the 132,900 restricted shares that have been granted to 27 in-service first-grant incentive targets but cannot be vested in the second vesting period and the 67,750 restricted shares that have been granted to 8 in-service reserved grant incentive targets but cannot be vested in the first vesting period.

On April 27, 2026, the company held the 13th meeting of the third board of directors and reviewed and approved the "Proposal on the Canceling of Part of the Restricted Stocks Granted but Not yet vested in the 2023 Restricted Stock Incentive Plan". In view of the fact that 6 of the incentive targets who were granted restricted stocks due to He has resigned and is no longer eligible for incentives. The board of directors agreed that the company will invalidate the 42,100 restricted shares that have been granted but have not yet vested; the full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd. in the company's 2023 restricted stock incentive plan

The performance in 2025 did not meet the target, and the board of directors agreed to invalidate the 158,600 restricted shares that had been granted to 24 in-service first-time incentive grant recipients but could not be vested in the third vesting period, and the 67,750 restricted shares that had been granted to 8 in-service reserved grant incentive recipients but could not be vested in the second vesting period. A total of 268,450 restricted shares were voided this time.

Equity incentives received by directors and senior managers

□Applicable ☑Not applicable

Evaluation mechanism and incentives for senior managers

The company has established a target responsibility assessment system for senior managers and an annual performance assessment system for the senior management team. It assesses and evaluates senior managers according to the assessment and evaluation system, scientifically taking into account the company's long-term development needs from the perspective of company-level operating performance and individual-level goal achievement.

Implementation of employee stock ownership plan

□Applicable ☑Not applicable

Other employee incentives

□Applicable ☑Not applicable

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

Construction and implementation of internal control

During the reporting period, the company strictly followed the provisions of the Company Law, the Securities Law, the Code of Governance of Listed Companies, the Basic Standards for Enterprise Internal Control and its supporting guidelines and other internal control regulatory requirements, and carefully evaluated the implementation effect and efficiency of the internal control system at all levels and links of the company's operation and management, especially related transactions related to financial reporting, external guarantees, major decisions, etc., and continuously improved it to promote the standardized operation of the enterprise and effectively prevent operating decision-making and management risks.

During the reporting period, the company's internal control system had relatively good integrity, rationality and effectiveness. According to the identification of deficiencies in the company's internal control over financial reporting, the company did not have any major deficiencies or important deficiencies in internal control over financial reporting during the reporting period. Based on the identification of deficiencies in the company's internal control over non-financial reporting, no major or important deficiencies in the company's internal control over non-financial reporting were found during the reporting period. The company has no major defects or important defects in internal control that have been continued from previous years.

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

□Yes ☑No

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

Problems encountered during integration and solutions adopted

Company name Integration plan Integration progress Resolution progress Follow-up resolution plan

Problem Measures

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable There are abnormalities in the management control of subsidiaries

□Yes ☑No

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

15. Internal control evaluation report and 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 "2025 Internal Control Evaluation Report Full Text Disclosure Index" disclosed on cninfo.com (www.cninfo.com.cn) on April 29, 2026

Annual Internal Control 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

(1) Major defects

① The enterprise lacks operating decision-making procedures, such as the lack of ① the "board of directors" decision-making procedures for correcting and following up the issued financial reports;

Traceability errors (due to policy changes or other objective reasons

Retrospective adjustments to previous years caused by changes in factors ② Unscientific corporate decision-making procedures, except for errors in decision-making); errors, leading to the failure of major transactions;

②The unidentified financial information for the current period discovered by the auditor

Material misstatements in financial reports; ③ Violation of national laws and regulations, such as environmental pollution; ③ Fraudulent conduct by directors and senior management; etc.;

④The audit committee monitors the internal control over financial reporting.

Supervision is ineffective; ④ A large number of management personnel or technical personnel are lost; ⑤ The internal audit function is ineffective;

⑥ The risk assessment function is ineffective; ⑤ Frequent negative news in the media;

⑦The control environment is invalid;

⑧Major defects have not been rectified within a reasonable period of time. ⑥Lack of system control or qualitative standard improvement of the system for important business. Sexual failure.

(2) Important defects (2) Important defects

① There is no accounting in accordance with generally accepted accounting principles ① There is no control over the selection and application of non-routine (non-repetitive) or complex policies; Control over transactions;

② Failure to establish anti-fraud procedures and controls;

③ Failure to control the process of period-end financial reporting ② Failure to establish and effectively implement professional ethics; system;

④Failure to collect information involved in the financial reporting process; ③Failure to establish a reporting and reporting mechanism;

system for effective control.

④ No effective information and communication mechanism has been established. (3) General defects

(3) General defects

Defects other than major defects and important defects,

Considered a general defect. Defects other than major defects and important defects,

Considered a general defect.

Net profit before tax: (1) Major defect: Misstatement of amount in RMB

More than 10 million yuan, causing serious negative impact on the company (1) Major defects: significant impact at the financial reporting level, and has been disclosed to the outside world and set a level for the company. Generally, 5% of pre-tax profit is reported in a period and has a serious negative impact; quantitative standard standard, that is, defects greater than 5% of pre-tax profit;

(2) Important defect: The amount of misstatement is RMB 500 (2) Important defect: The accounting item level importance is RMB 10,000-10 million yuan, and is punished by the national government department at the level of 2.5% of the pre-tax profit under normal circumstances, but it has not caused a negative impact on the company; (generally 10% of the statement level importance level)

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

to 50%) is the standard, that is, it is greater than the pre-tax profit (3) General defects: defects where the amount of misstatement is RMB 500 2.5% and less than 5%; if the amount is less than 10,000 yuan, it will be punished by departments at or below the provincial or ministerial level.

However, it did not have a negative impact on the company. (3) General defects: defects of other potential misstatements and omissions of amounts that are lower than the above-mentioned materiality level.

Total assets:

(1) Major defects: defects that may result in direct losses accounting for more than 0.25% of the company’s total assets.

trap; sink

(2) Important defects: defects that may cause direct losses accounting for more than 0.125% and less than 0.25% of the company's total assets;

(3) General defects: defects smaller than the above-mentioned defects.

Operating income:

(1) Major defects: defects that may cause direct losses accounting for more than 0.5% of the company's sales revenue;

(2) Important defects: defects that may cause direct losses accounting for more than 0.25% and less than 0.5% of the company's sales revenue;

(3) General defects: defects smaller than the above-mentioned defects.

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

Duan Daxin Accounting Firm (Special General Partnership) issued the "Internal Control Audit Report of Hubei Gongyong Pharmaceutical Co., Ltd." (Daxin Shenzi [2026] No. 5-00149). It is believed that Hubei Gongyong Pharmaceutical Co., Ltd. has maintained effective internal control over financial reporting in all major aspects in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations.

Disclosure of internal control audit report Disclosure

Disclosure date of the full text of the internal control audit report: April 29, 2026 Disclosure index of the full text of the internal control audit report Juchao Information Network (www.cninfo.com.cn) Opinion type of internal control audit report Standard unqualified opinion Whether there are major defects in the non-financial report No

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

□Yes ☑No

Is the internal control audit report issued by the accounting firm consistent with the self-evaluation report of the board of directors☑Yes □No

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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

□Yes ☑No

16. Rectification of self-examination issues under special action on governance of listed companies

Not applicable

17. Environmental information disclosure

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 in accordance with the law (household) 2 Serial number Company name Query index of environmental information disclosure reports in accordance with the law

Corporate Environmental Information Disclosure System (Hubei)

1 Hubei Tongyong Pharmaceutical Co., Ltd.

http://219.140.164.18:8007/hbyfpl/frontal/index.html Corporate Environmental Information Disclosure System (Hubei)

2 Hubei Tongtong Biotechnology Co., Ltd.

http://219.140.164.18:8007/hbyfpl/frontal/index.html

18. Social Responsibility

The company attaches great importance to fulfilling social responsibilities. In the process of business operation and development, the company adheres to the strategic concepts of environmental protection and sustainable development, adheres to the path of green development, attaches great importance to the construction of ecological civilization, and strives to build a modern enterprise with "energy conservation, emission reduction, and circular development" to achieve mutual coordination between economic and social benefits, short-term and long-term interests, and self-development and social development, and achieve healthy and harmonious development of the company and its employees, the company and society, and the company and the environment.

(1) Protection of the rights and interests of shareholders and creditors

Continuously improve corporate governance and improve company operating efficiency

The company strictly complies with the requirements of the Company Law, Securities Law, Code of Governance for Listed Companies, Shenzhen Stock Exchange GEM Stock Listing Rules, Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 - Standardized Operations of GEM Listed Companies, and other relevant laws, regulations, and normative documents, and establishes a corporate governance structure with the shareholders' meeting and the board of directors as the power, decision-making and supervision agencies, and a corporate governance structure with clear rights and responsibilities, each performing its own duties, effective checks and balances, scientific decision-making, and coordinated operations with the management.

During the reporting period, the company strictly regulated the convening, convening and voting procedures of shareholders' meetings and board of directors, and the special committees of the board of directors conscientiously performed their responsibilities to strengthen the board of directors' supervision and guidance on the company's operations and operations. Lawyers attended and witnessed all the company's shareholders' meetings, and issued legal opinions on the convening and convening procedures of shareholders' meetings, qualifications of attendees, qualifications of conveners, meeting voting procedures, voting results and meeting resolutions formed, etc. The Board of Directors consists of the Strategy Committee, the Audit Committee, the Remuneration and Appraisal Committee and the Nomination Committee. Members of the various professional committees of the Board of Directors express professional opinions on company-related issues and play important functional roles in the company's business decision-making, corporate governance, and protection of the interests of small and medium-sized investors. During the reporting period, the company held a total of 2 shareholders' meetings, 8 board of directors meetings, 6 audit committee meetings, 1 nomination committee meeting and 2 remuneration and assessment committee meetings. In addition to actively attending various meetings, directors and supervisors also actively participate in relevant trainings to familiarize themselves with relevant laws and regulations and improve themselves.

Strictly fulfill information disclosure obligations and effectively safeguard the interests of investors

The company strictly complies with the relevant laws, regulations and regulatory requirements for information disclosure by listed companies, discloses company information truthfully, accurately, timely and completely, and promptly discloses information on major related transactions, external investments and other matters that have a significant impact on stock prices, and delivers more effective information to the market from the perspective of investors. The company publishes relevant announcements on the Shenzhen Stock Exchange website and www.cninfo.com.cn, an information disclosure website that meets the conditions stipulated by the China Securities Regulatory Commission, and selects newspapers and periodicals that meet the conditions stipulated by the China Securities Regulatory Commission as the company's information disclosure media to ensure that all shareholders of the company can obtain company information fairly. In 2025, the company disclosed a total of 125 announcement documents and conducted 2 online votes.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Pay attention to investor relationship management and build good interactive relationships

The company has always attached great importance to investor relations management and is committed to building good interactive relationships with investors and establishing a good image of the company in the capital market. The company has established a diversified investor communication mechanism and maintains close communication and exchanges with investors through on-site surveys, online communications, hotlines, e-mails, performance briefings, Shenzhen Stock Exchange's "Interactive Easy" and other channels. In response to the questions raised and concerned by investors, the company responded seriously and promptly, listened humbly to the valuable opinions and suggestions of investors, and formed a good two-way interaction with investors. In 2025, the company's interactive website received a total of 19 questions, with a response rate of 100%.

(2) Protection of interests of suppliers and customers

The company always adheres to honest management, abides by laws and regulations, is customer-oriented, attaches great importance to product quality, and has formulated a strict quality management system to ensure that it provides customers with safe and reliable products.

Supplier management

Standardizing and strengthening supplier management can create a healthy competitive environment for the company, reduce procurement risks, and promote the optimization of comprehensive benefits in procurement quality, cost, service, and efficiency. When selecting suppliers, the company will give priority to suppliers with better environmental protection and social responsibility performance after comprehensively measuring product and service quality, price level and technical standards. For qualified suppliers, we will carry out annual tracking and evaluation work. For suppliers with quality defects, unqualified environmental impact assessments or integrity issues, we will no longer consider them for future cooperation. In 2025, our procurement work will be carried out smoothly, and the continuous improvement of supply chain management will provide guarantee for production and project research and development.

Customer service

In the process of product development and production, the company attaches great importance to the innovation and improvement of product production processes and the control of product quality. It does not miss any detail that affects product quality. It continuously improves the production process and quality control and strives for excellence. It carefully protects the reputation of the industry and constantly improves the product quality control system to become a conscientious pharmaceutical company that reassures customers.

We have a professional sales team. Each functional team member in the sales department has rich experience in product promotion and commercialization. We also focus on the management and training of the overall sales team, and promptly adjust the internal organizational structure design based on customer after-sales feedback to reduce errors not caused by the product itself and effectively improve the operational efficiency of the sales team.

(3) Protection of employees’ rights and interests

The company attaches great importance to the construction of a harmonious enterprise, puts the work of creating a harmonious enterprise in an important position, regards employees as the core of the company's development, attaches great importance to the interests and legitimate rights and interests of employees, constantly improves the working environment and welfare benefits of employees, and promotes the growth of employees and the realization of their own value. The company has formed a "three-in-one" service mechanism of the general manager office, administrative management center, and party and mass office to advance the establishment work in an orderly manner.

Strictly abide by labor regulations and safeguard the legitimate rights and interests of employees

The company strictly abides by relevant national laws and regulations such as the "Labor Law" and signs labor contracts with employees. The company pays employee wages, performance wages, benefit wages, etc. in full and on time, pays five insurances and one fund for employees, and purchases commercial insurance for front-line production employees to effectively protect the interests of employees; it fully implements labor safety and occupational health laws and regulations to ensure employees' occupational health. The company holds regular production safety meetings and establishes annual responsibility targets for production safety and an assessment mechanism for daily management work. The company adheres to three-level safety education and arranges safety education and training for new employees and workplace safety training. There were no major safety production accidents or occupational hazards throughout the year. At the same time, the company organizes physical examinations for employees every year and conducts occupational disease examinations for special jobs. For employees whose bodies do not meet the job requirements, the company coordinates job adjustments and properly places employees. For employees who suffer from sudden major illnesses, the company arranges dedicated personnel to take care of them and help solve various difficulties encountered by the sick employees.

Give full play to the role of trade union organizations and continuously improve employee salaries and benefits

Establish and improve trade union organizations, establish trade union committees and female workers' committees. Through the all-employee representative conference, employee representatives are elected to conduct regular supervision and inspection of the work of the trade union, collect employees’ opinions on democratic construction, submit them to the trade union committee, and supervise the implementation, so as to achieve "everything is responded to and everything is implemented." The labor union focuses on negotiations on the wage distribution system, assessment system, bonus distribution system, wage increase rate, etc., which involve the vital interests of employees.

Pay attention to cultural construction and ensure the physical and mental health of employees

In view of the characteristics of young, knowledgeable and professional employees, the company has established a corporate culture construction leading group and a special class for corporate culture. It allocates special funds for corporate cultural activities every year and has a dedicated person responsible for organizing a variety of cultural activities. It organizes a large-scale event every quarter, such as basketball games, autumn outings, fun sports games, Spring Festival group gatherings, etc., and conducts small activities once a month, such as birthday parties, Lantern Festival lantern festivals, etc. By organizing a variety of cultural and recreational activities, it not only enriches employees' spare time life, but also enhances cohesion and centripetal force during their participation in the activities.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(4) Environmental protection and sustainable development

The company adheres to the concept of green management and development, attaches great importance to the construction of ecological civilization, strictly implements various environmental protection laws and regulations, continues to promote clean production, energy conservation and emission reduction, ensures that all aspects of production and operation comply with environmental protection requirements, and strives to build a modern enterprise of "energy conservation, emission reduction, and circular development". The company has established a clean production audit leading group and holds regular meetings of the clean production audit leading group to study and formulate energy saving and emission reduction plans for production, storage and other links to maximize To achieve the ultimate goal of “saving energy, reducing consumption, and increasing efficiency”, we regularly organize and carry out activities such as environmental protection knowledge education and training and daily production and environmental protection meetings. Through daily environmental protection training and education activities, the energy-saving awareness of “reducing costs bit by bit and increasing efficiency every second” is imprinted in the hearts of every employee. By conducting knowledge competitions on environmental protection laws and regulations, we improve employees’ legal awareness of environmental protection, improve the professional skills of workers, and improve the company’s environmental governance level. In the process of production and operation, the company actively promotes energy conservation and emission reduction, and has achieved good energy saving and consumption reduction effects in equipment selection and design.

19. Consolidate and expand the results of poverty alleviation and rural revitalization

The company did not carry out poverty alleviation and rural revitalization work during the reporting year, and there is no follow-up poverty alleviation or rural revitalization plan.

Full text of Hubei Tongyong Pharmaceutical 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

Commitment class

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

Within one year after the expiration of the lock-up period for the company's shares held by me, the number of shares reduced shall not exceed 10% of the total number of issuer shares held by me before this issuance; within two years after the expiration of the lock-up period, the cumulative number of shares reduced shall not exceed 30% of the total number of issuer shares held by me before this issuance. If the shares held change due to the company's equity distribution, capital reduction, etc., the amount of transferable shares in the corresponding year will be changed accordingly.
After the lock-up period expires, if I plan to reduce my holdings of company stocks, I will perform my information disclosure obligations in a timely, accurate and complete manner in accordance with relevant laws, regulations, rules and relevant provisions of the China Securities Regulatory Commission and stock exchanges. During the period when I hold more than 5% of the company's shares, the reduction of the shares held by me shall be announced through the company's commitment in the three transactions before the reduction of the shares. 3. After the lock-up period expires, the price at which I reduce my holdings of the company's stocks will be determined based on the secondary market price and shall comply with relevant laws, regulations, and rules. If I plan to reduce my holdings of the company's stocks within two years after the expiration of the stock lock-up period, the reduction price will not be lower than the issue price of the company's stocks. If the company undergoes ex-rights and ex-dividend behavior after listing, such as paying dividends, giving away shares, transferring capital reserves to share capital, etc., the above-mentioned initial public offering price shall be the price after ex-rights and ex-dividend. If I fail to fulfill or refinance the above commitment to reduce the company's stock holdings, I will turn over the proceeds (if any) obtained from the sale of the committed stocks to the company, and bear the corresponding legal consequences and compensate for the losses caused to the company or investors due to failure to fulfill the commitments.
Within two years after the expiration of the lock-up period for the company's shares held by the partnership, the cumulative number of company shares held by the partnership each year shall not exceed 100% of the total number of issuer shares held by the partnership before this issuance. 2. After the lock-in period expires, Danjiangkou If the partnership intends to reduce its holdings of the company's stocks, it will jointly create a timely, accurate and complete share reduction in accordance with relevant laws, regulations, rules and the relevant provisions of the China Securities Regulatory Commission and the New Investment Stock Exchange. 2021 04 2026 4 Normally perform the partnership's information disclosure obligations. If the partnership holds more than 5% of the shares, it must make a public announcement on March 8th, 2020 (within the previous period, if the partnership reduces its holdings of the company's shares, it shall make a public announcement through the company three trading days before the reduction). If the partnership fails to fulfill the above commitment to reduce the company's stock holdings, the proceeds (if any) obtained from the sale of the shares will be turned over to the company, and it will bear the corresponding legal consequences and compensate for the losses caused to the company or investors due to the failure to fulfill its commitments.

Department of ancestors, company control 1. I promise not to interfere with the company’s operation and management activities beyond my authority. 2028

2022 07 Bin and Chen will perform their duties normally and not infringe on the company's interests. 2. I promise to be faithful to November 28

On March 8th, Zhongwen Jingdong, Shi, implemented the relevant supplementary return measures formulated by the company and the full text of the 2025 annual report of Hubei Tongyang Pharmaceutical Co., Ltd.

If I violate any commitments regarding compensation measures made by international controls and cause losses to the company or investors, I am willing to bear the liability for compensation to the company or investors in accordance with the law. From the date of issuance of this commitment to the completion of the issuance of convertible corporate bonds to unspecified objects by the company, if the China Securities Regulatory Commission and the Shenzhen Stock Exchange make other new regulations on the fair implementation of the company's replenishment return measures and commitments, and the above commitments cannot meet these regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, I promise to issue a supplementary commitment in accordance with the latest regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange.

I promise not to transfer benefits to other units or individuals for free or on unfair terms, nor to harm the interests of the company in other ways; 2. I promise to restrict my job consumption behavior; 3. I promise not to use company assets to engage in investment or consumption activities unrelated to the performance of my duties; 4. I promise to be governed by the board of directors or the remuneration committee of the company’s directors.

The remuneration system formulated is in line with the company's compensation measures for executive officers and senior executives.

It is linked to the situation; 5. If the company subsequently launches the company's equity system under ancestral management

Incentive policy, I promise to announce the company’s equity incentives Bin and Li Personnel Relations

Min Lei and Yu Xiangbu’s exercise conditions and the implementation of the company’s compensation return measures.

linked to each other; 6. I promise to earnestly implement the specific policies set by the company

Regarding the replenishment return measures and any commitments I have made regarding the replenishment return measures, if I violate these commitments and cause losses to the company or investors, I will be willing to bear the liability for compensation to the company or investors in accordance with the law.

Ren. From the date of issuance of this commitment, the company will make immediate reply to unspecified parties such as Jian and Ji.

Before the issuance of convertible corporate bonds is completed, if China Jiansheng and the newspaper adopt

The China Securities Regulatory Commission and the Shenzhen Stock Exchange have made measures to make up for Chen Wenjing’s returns.

other new provisions on measures and commitments, and the commitment to implement the above

The promise cannot meet the promise of China Securities Regulatory Commission and Shenzhen Stock Exchange.

When required, I promise to issue a supplementary commitment in accordance with the latest regulations of the China Securities Regulatory Commission and Shenzhen Stock Exchange. If I violate the above commitments or refuse to perform the above commitments, I agree that the China Securities Regulatory Commission and other securities regulatory agencies will impose relevant penalties on me or take relevant regulatory measures in accordance with the relevant regulations and rules formulated or issued by them.

Whether the promise is fulfilled

Yes

performed on time

If the promise is overdue

Not yet completed

Yes, it should be detailed

Detailed explanation not finished

Not applicable

tool for fulfillment

Physical reasons and below

one step work

plan

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

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The company involves performance commitments

□Applicable ☑Not applicable

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 of the "non-standard audit report" of the accounting firm for this reporting period by the board of directors, audit committee and independent directors (if any)

□Applicable ☑Not applicable

6. Explanation of the Board of Directors on changes in accounting policies, accounting estimates or correction of major accounting errors during the reporting period

□Applicable ☑Not applicable

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

□Applicable ☑Not applicable

There was no change in the scope of the company's consolidated statements during the reporting period.

8. Appointment and dismissal of accounting firms

Currently employed accounting firm

Name of the domestic accounting firm Daxin Accounting Firm (Special General Partnership) Remuneration of the domestic accounting firm (10,000 yuan) 58 Continuous years of audit service by the domestic accounting firm 8 Name of the CPA of the domestic accounting firm Liu Jiaona, Lian Wei Continuous years of audit service by the CPA of the domestic accounting firm 3 Name of the overseas accounting firm (if any) Not applicable Continuous years of audit service by the overseas accounting firm (if any) Not applicable Name of the CPA of the overseas accounting firm (if any) Not applicable. Continuous years of audit service by certified public accountants from overseas accounting firms (if any). Not applicable. Whether to change the accounting firm.

□Yes ☑No

Full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd. The situation of hiring internal control audit accounting firms, financial consultants or sponsors ☑Applicable □Not applicable

This year, the company hired Daxin Accounting Firm (Special General Partnership) as the internal control audit accounting firm, and paid a total of 100,000 yuan in internal control audit fees, which was included in the total remuneration of 580,000 yuan paid to Daxin Accounting Firm (special general partnership).

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

The company had no major litigation or arbitration matters during the year.

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 Hubei Tongyong Pharmaceutical 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

The company had no other major related transactions during the reporting period.

Major contracts and their performance
Custody, contracting and leasing matters (1) Custody status

□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.

(3) Leasing situation

□Applicable ☑Not applicable

There was no leasing situation during the company's reporting period.

Major guarantee

□Applicable ☑Not applicable

The company had no major guarantees during the reporting period. Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Entrusting others to manage cash assets (1) Entrusting financial management

□Applicable ☑Not applicable

The company did not have entrusted financial management during the reporting period.

(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.

Usage of raised funds □Applicable ☑Not applicable

The company has no use of raised funds during the reporting period.

Explanation of other major matters □Applicable ☑Not applicable

There are no other significant matters that need to be explained during the company's reporting period.

Major matters of the company’s subsidiaries □Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical 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

public area

OK send

Quantity Ratio Financial Transfer Others Subtotal Quantity Ratio New Shares

40,147,12

Shares with sales restrictions 34.83% -1,234,275 -1,234,275 38,912,850 33.75%
State shareholding
Shareholding by state-owned legal persons

40,147,12

Other domestic capital holdings 34.83% -1,234,275 -1,234,275 38,912,850 33.75%

Among them: domestic legal persons

shareholding

40,147,12

Shareholdings held by domestic natural persons 34.83% -1,234,275 -1,234,275 38,912,850 33.75%

Foreign shareholding

Among them: overseas legal persons

shareholding

Shareholding by foreign natural persons

75,132,29

Shares without selling restrictions 65.17% 1,235,972 1,235,972 76,368,263 66.25% 75,132,29
RMB ordinary shares 65.17% 1,235,972 1,235,972 76,368,263 66.25%
Foreign and domestic listed companies

capital stock

Foreign listed companies

capital stock

Others

115,279,4

Total number of shares 100.00% 1,697 1,697 115,281,113 100.00%

Reasons for share changes

☑Applicable □Not applicable

On November 28, 2022, the company issued 3,800,000 convertible corporate bonds (hereinafter referred to as "convertible bonds") to unspecified objects, with a face value of RMB 100 each, and a total issuance of RMB 380,000, in accordance with the China Securities Regulatory Commission's "Approval for the Registration of Hubei Gongyong Pharmaceutical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Objects" (CSRC License [2022] No. 2721). With the approval of the Shenzhen Stock Exchange, the company's 380 million yuan convertible bonds have been listed and traded on the Shenzhen Stock Exchange since December 16, 2022. The bond is referred to as "Co-Convertible Bond" and the bond code is "123171". The conversion period of "common convertible bonds" starts from the first trading day six months after the issuance of the convertible bonds and ends on the maturity date of the convertible bonds, that is, from June 2, 2023 to November 27, 2028. For details, please refer to the "Informative Announcement on the Commencement of Equity Conversion of Common Convertible Bonds" disclosed by the company on the cninfo.com on May 30, 2023 (Announcement No.: Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report

2023-034). From January 1, 2025 to December 31, 2025, the cumulative number of "joint convertible bonds" converted into shares was 1,697 shares, and the company's total share capital was

115,279,416 shares became 115,281,113 shares.

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

During the reporting period, the company's total share capital changed from 115,279,416 shares to 115,281,113 shares due to the start of the conversion of "joint convertible bonds". The above changes in share capital caused the company's basic earnings per share, net assets per share and other financial indicators for the most recent year and the most recent period to be diluted. Relevant data can be found in Section 2 of this report, "Company Profile and Main Financial Indicators Part 5, Main Accounting Data and Financial Statement Indicators".

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: Share

Increased sales restrictions in this period. Unlocked in this period. Restricted stocks at the end of the period.

Name of shareholder Number of shares subject to selling restrictions at the beginning of the period Reasons for selling restrictions Number of shares on the date of release of restrictions Number of shares sold Number

During his tenure, Zubin reduced his shareholding every year 27,425,250 0 0 27,425,250 The number of executive locked shares shall not exceed 25% of the total shares held by him

Li Minglei reduced his shareholding every year during his tenure 11,528,250 0 1,234,275 10,293,975 The number of shares locked by senior executives shall not exceed 25% of the total shares held by them

Jiang Jianjun reduced shareholdings every year during his tenure 1,193,625 0 0 1,193,625 The number of shares locked by senior executives shall not exceed the shares held by them

25% of the total number of copies

Total 40,147,125 0 1,234,275 38,912,850 -- --

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

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Existing internal employee shares

□Applicable ☑Not applicable

3. Shareholders and actual controllers

Number of shareholders and shareholding status of the company

Unit: Share

At the end of the reporting period, special annual report disclosures for holdings

Annual report Voting rights resumed Special voting reporting period The end of the previous month

Ordinary voting rights of the priority shares restored before the disclosure date have not been restored

13,067 End of the previous month 11,828 Total shareholders 0 0 shareholders 0 shareholders Total preference shareholders

Number of shares of common stock (e.g. Total number of shares (if any)

Total number of East Yes) (see (see Note 9)

See Note 9) Yes)

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, the number of shareholders holding shares with sales restrictions that were pledged, marked or frozen, the name of the shareholder, and the nature of the shareholder, the number of shares with sales restrictions held at the end of the reporting period.

Shareholding ratio Increase/decrease changes Conditions of shares

Weigh Number of pledged shares Number of shares Share status Quantity situation Quantity

within the territory of

Xie Zubin 31.72% 36,567,000 0 27,425,250 9,141,750 Not applicable 0 Random person

within the territory of

Li Minglei 11.91% 13,725,300 0 10,293,975 3,431,325 Not applicable 0

Ranren

Danjiangkou

City common

Innovation Investment Domestic Africa

Capital partnership State-owned law 4.43% 5,106,500 -394700 0 5,106,500 Not applicable 0 Enterprise Person

(Limited

partnership)

Zhejiang Hua

Domestic non-

Hai Pharmaceutical

State-owned law 1.74% 2,006,931 -1110998 0 2,006,931 Not applicable 0 shares

people

Ltd.

within the territory of

Wang Chenghua 1.58% 1,818,100 1818100 0 1,818,100 Not applicable 0 Random person

within the territory of

Zhang Xin 1.22% 1,400,900 0 0 1,400,900 Not applicable 0

Ranren

Shenzhen City

Jia Junli Domestic and non-Chinese

Hao Investment State-owned Law 1.19% 1,366,700 0 0 1,366,700 Not applicable 0 Development Owner

Ltd.

Hubei high

gold biology

Technology innovation

Domestic non-

industry investment

State-owned law 1.12% 1,292,485 -320700 0 1,292,485 Not applicable 0 Fund Fund

people

partnership

(Limited

partnership)

within the territory of

Jiang Jianjun 1.04% 1,193,625 0 1,193,625 0 Not applicable 0

Ranren

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Cathay Pacific

Thai stocks

Special type

pension

Products - Others 1.01% 1,164,900 351000 0 1,164,900 Not applicable 0 China Merchants Bank

bank shares

limited company

Division

strategic investor or general

The legal person's profit due to the placement of new shares

For the top 10 shareholders Not applicable

Situation (if any) (see

See note 4)

The above-mentioned shareholder related relationships

Zu Bin, Danjiangkou Joint Innovation Investment Partnership (Limited Partnership), and Zhang Xin were persons acting in concert when the company was first launched. or description of concerted action

The above shareholders are involved in entrustment

/ Trusted voting rights, release

Not applicable

abstention from voting

Ming

Top 10 shareholders Zhongde

Special features in the repurchase account

Not applicable

Description (if any) (see

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: Zubin 9,141,750 RMB ordinary shares 9,141,750 Danjiangkou City Joint Innovation

Investment partnership (with 5,106,500 RMB common shares and 5,106,500 RMB limited partnership)

Li Minglei 3,431,325 RMB ordinary shares 3,431,325 Zhejiang Huahai Pharmaceutical Co., Ltd.

2,006,931 RMB ordinary shares 2,006,931 Co., Ltd.

Wang Chenghua 1,818,100 RMB ordinary shares 1,818,100 Zhang Xin 1,400,900 RMB ordinary shares 1,400,900 Shenzhen Jiajunlihao Investment

1,366,700 RMB ordinary shares 1,366,700 Capital Development Co., Ltd.

Hubei Gaojin Biotechnology

Venture capital fund partnership 1,292,485 RMB ordinary shares 1,292,485 Enterprise (limited partnership)

Cathay Jiatai Stock Special

type pension products-recruitment

1,164,900 RMB ordinary shares 1,164,900 Commercial Bank Co., Ltd.

Division

He Xiuwen 890,000 RMB ordinary shares 890,000 Unlimited sales for the top 10

between common shareholders, with

And unlimited sales for the first 10 people

The shareholders of tradable shares and the former are Zu Bin, Danjiangkou Joint Innovation Investment Partnership (Limited Partnership), and Zhang Xin were persons acting in concert when the company was first launched. between 10 shareholders

relationship or concerted action

description

Wang Chenghua holds 1,818,100 shares through the customer credit transaction guaranteed securities account of Shenwan Hongyuan Securities Co., Ltd., and holds 0 shares in the ordinary account to participate in margin trading and securities lending business.

shares, holding a total of 1,818,100 shares; He Xiuwen holds Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report through the customer credit transaction guaranteed securities account of China Galaxy Securities Co., Ltd. Full text

Description of shareholders (for example, there are 300,000 shares, the general account holds 590,000 shares, and the total holdings are 890,000 shares. Yes) (see Note 5)

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 has differential voting rights arrangements

□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: Natural person holding

Controlling shareholder type: natural person

Name of the controlling shareholder Nationality Whether Zubin has obtained the right of residence in other countries or regions China No Main occupation and position Chairman, general manager, and R&D director of Kyodo Pharmaceuticals Other domestic and foreign companies that controlled and participated in the company during the reporting period

Not applicable

Equity situation of municipal 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: Overseas natural person

Type of actual controller: natural person

Name of the actual controller Relationship with the actual controller Nationality Whether Zubin has obtained the right of residence in other countries or regions I am China No

Acting in concert (including agreements, relatives,

Chen Wenjing China No common control)

Zu Bin, currently the chairman, general manager and R&D director of Kyodo Pharmaceutical; main occupation and position
Chen Wenjing, currently the deputy general manager and secretary of the board of directors of Kyodo Pharmaceutical. Domestic and overseas holdings held in the past 10 years

Not applicable

Listed company situation

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

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The actual controller controls the company through trust or other asset management methods

□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

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

The number of repurchases accounts for the planned repurchase amount of equity incentives

When the plan is disclosed, the shares to be repurchased as a proportion of the total share capital Number of shares repurchased Amount involved in the plan (10,000 Yuan of underlying stocks during the planned repurchase period Number of shares for the purpose of repurchase Example Amount (shares)

proportion (such as

Yes) February 2025 Equity incentive or February 2025 839,102-

0.73%-1.09% 2000-3000 19th-2026 Employee stock ownership calculation 1,069,600 25th October 1,258,653

February 18th

Implementation progress of reducing and repurchasing shares using centralized bidding transactions

□Applicable ☑Not applicable

5. Relevant information on preference shares

□Applicable ☑Not applicable

There were no preferred shares in the company during the reporting period.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Section 7 Bond-related situations

☑Applicable □Not applicable

1. Corporate bonds

□Applicable ☑Not applicable

The company did not have corporate bonds during the reporting period.

2. Corporate bonds

□Applicable ☑Not applicable

The company did not have corporate bonds during the reporting period.

3. Non-financial corporate debt financing tools

□Applicable ☑Not applicable

During the reporting period, the company had no non-financial corporate debt financing instruments.

4. Convertible corporate bonds

☑Applicable □Not applicable

Issuance of convertible bonds

According to the China Securities Regulatory Commission's "Reply on the Registration of Hubei Gongyong Pharmaceutical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Objects" (CSRC License [2022] No. 2721), Hubei Gongyong Pharmaceutical Co., Ltd. issued 3,800,000 convertible corporate bonds to unspecified objects on November 28, 2022, with a face value of RMB 100 each, and a total issuance of 380,000,000 yuan. With the approval of the Shenzhen Stock Exchange, the company's 380 million yuan convertible corporate bonds have been listed for trading on the Shenzhen Stock Exchange on December 16, 2022. The bond is referred to as "co-convertible bond" and the bond code is "123171". According to the "Prospectus for the Issuance of Convertible Corporate Bonds by Hubei Gongyong Pharmaceutical Co., Ltd. to Unspecified Targets", the initial conversion price of "Gongyong Convertible Bonds" is RMB 27.14 per share.

Due to the implementation of the equity distribution in 2023, the company's "common convertible bonds" conversion price has been adjusted from 27.14 yuan/share to 27.12 yuan/share. The adjusted conversion price will take effect from June 12, 2024.

Convertible bond guarantors and top ten holders during the reporting period

Name of convertible corporate bonds Common convertible bonds

Number of convertible bond holders at the end of the period 6,863 Guarantors of the company’s convertible bonds Not applicable

Significant changes in the guarantor’s profitability, asset status and credit status Not applicable

The top ten convertible bond holders are as follows:

Held at the end of the reporting period Held at the end of the reporting period

Convertible bond holder holding serial number at the end of the reporting period Convertible bond holder name Number of convertible bonds Amount of convertible bonds

Nature Proportion of convertible bonds (pieces) (yuan)

1 Northwest Investment Management (Hong Kong) Co., Ltd. - Northwest Feilong Overseas legal person 251,430 25,143,000.00 6.62% Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Fund Co., Ltd.

China Merchants Bank Co., Ltd. - Bosera CSI Convertible Bonds and

2 Others 247,274 24,727,400.00 6.51% exchangeable bond traded open-end index securities investment fund

CITIC Securities Asset Management (Hong Kong) Co., Ltd. - Client

3 Overseas legal person 169,210 16,921,000.00 4.45% capital

Cathay Golden Years Stable Fixed Income Pension Product

4 Others 160,092 16,009,200.00 4.21%

-Agricultural Bank of China Co., Ltd.

5 Li Yuting Domestic natural person 157,890 15,789,000.00 4.16% 6 UBS AG Overseas legal person 121,741 12,174,100.00 3.20%

Cathay Pacific Multi-Strategy Absolute Return Hybrid Pension Product – China

7 Others 120,000 12,000,000.00 3.16%

Credit Bank Co., Ltd.

8 Li Yiming Domestic natural person 102,010 10,201,000.00 2.69%

E Fund Yitian configures hybrid pension products - China Industrial

9 Others 91,880 9,188,000.00 2.42% Commercial Bank Co., Ltd.

China Construction Bank Corporation-Fuguo Optimization and Enhancement

10 Others 89,247 8,924,700.00 2.35%

Bond Securities Investment Fund

Changes in convertible bonds during the reporting period

☑Applicable □Not applicable

Unit: Yuan convertible corporate bonds Increase or decrease due to this change

Before this change After this change

Name Conversion Redemption Sale back

Jointly convertible bonds 379,934,100.00 46,300.00 379,887,800.00

Accumulated share transfers

☑Applicable □Not applicable

Number of shares transferred

Accounting for shares converted into shares Unconverted shares can be converted into public shares Cumulative shares converted Cumulative shares converted

Starting and Ending of Conversion Total issuance amount Total issuance amount Number of shares that have not yet been converted to shares of the issuing company’s bonds before the start date

Date (pieces) Amount (yuan) The company has issued Amount (yuan) Total amount (yuan) (shares)

Total Shares Ratio of Ratio

2023 6 380,000,0 112,200.0 379,887,8

Joint convertible bonds 3,800,000 4,113 0.03% 99.97%

2nd of month 00.00 0 00.00

Previous adjustments and revisions to the stock conversion price

Convertible companies as of the end of the reporting period Adjusted for conversion

Conversion price adjustment date Disclosure time Conversion price adjustment description Latest conversion price bond name Price (yuan)

(Yuan) The company due to the implementation of the 2023 annual rights

Profit distribution, "jointly convertible bonds"

The share conversion price is from 27.14 yuan/share

Joint convertible bonds June 12, 2024 27.12 June 4, 2024 27.12 adjusted to 27.12 yuan/share, adjusted

The adjusted share conversion price will be from 2024

Effective from June 12, 2019.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The company’s liabilities, credit changes at the end of the reporting period, and cash arrangements for debt repayment in the coming years.

(1) For details of the company's liabilities at the end of the reporting period, please refer to "8. The company's main accounting data and financial indicators in the past two years as of the end of the reporting period" in this chapter.

(2) Changes in credit standing

In June 2025, Oriental Jincheng International Credit Rating Co., Ltd. issued a "Credit Rating Notice" (Oriental Jincheng Debt Tracking Rating No. [2025] 0179), which tracked and rated the credit status of the company and the "joint convertible bonds". It assessed the company's main credit rating as A, with a stable rating outlook, and maintained the credit rating of the "joint convertible bonds" as A.

(3) Cash arrangements for debt repayment in future years

The company's credit status is good, its asset and liability structure is reasonable, banks and other financial institutions have sufficient comprehensive credit to the company, and the company can quickly and effectively obtain financing support from financial institutions. The company's operations are stable and it can obtain stable operating cash flow through endogenous growth. At the same time, the company will actively promote the implementation of convertible corporate bond fundraising projects to further enhance the company's profitability. If the company meets the sell-back and redemption terms disclosed in the convertible corporate bond prospectus and repays principal and interest when due, the company can pay the principal and interest of bondholders through its own funds and financing.

5. The loss in the consolidated statement scope during the reporting period exceeds 10% of the net assets at the end of the previous year

□Applicable ☑Not applicable

6. Overdue interest-bearing debts other than bonds at the end of the reporting period

□Applicable ☑Not applicable

7. Whether there were any violations of rules and regulations during the reporting period

□Yes ☑No

8. The company’s main accounting data and financial indicators in the past two years as of the end of the reporting period

Unit: 10,000 yuan

Items End of the reporting period End of the previous year Increase or decrease in current ratio at the end of the reporting period compared with the end of the previous year 0.94 0.95 -1.05% Asset-liability ratio 68.10% 63.63% 4.47% Quick ratio 0.36 0.48 -25.00%

This reporting period Same period last year This reporting period increased or decreased net profit after deducting non-recurring gains and losses compared with the same period last year -7,149.86 -2,821.66 -153.39% EBITDA total debt ratio 4.74% 2.17% 2.57% Interest coverage ratio -1.08 -0.45 -140.00% Cash interest coverage ratio 2.41 0.31 677.42% EBITDA interest coverage ratio 1.16 0.5 132.00% Loan repayment rate 100.00% 100.00% 0.00% Interest repayment rate 100.00% 100.00% 0.00% Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Section 8 Financial Report

1. Audit report

Type of audit opinion Standard unqualified opinion

Audit report signing date April 27, 2026

Name of the audit institution: Daxin Certified Public Accountants (Special General Partnership)

Audit report number Daxin Shen Zi [2026] No. 5-00148

Name of CPA: Liu Jiaona, Lian Wei

Audit report text

Audit report

Daxin Shenzi [2026] No. 5-00148 All shareholders of Hubei Tongyong Pharmaceutical Co., Ltd.:

1. Audit opinions

We have audited the financial statements of Hubei Gongyong Pharmaceutical Co., Ltd. (hereinafter referred to as "your company"), including the consolidated and parent company balance sheets on December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in shareholders' equity, and notes to the financial statements for 2025.

We believe that the attached financial statements are prepared in accordance with the provisions of the Accounting Standards for Business Enterprises in all material respects and fairly reflect the consolidated and parent company's financial status of your company as of December 31, 2025, as well as the consolidated and parent company's operating results and consolidated and parent company's 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 Professional Ethics for Certified Public Accountants and the Chinese Certified Public Accountants Independence Standards, we are independent from your company and have fulfilled other responsibilities in professional ethics. In our audit, we complied with the independence requirements applicable to audits of the financial statements of 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.

Describe each key audit matter in accordance with the provisions of "Audit Standards for Chinese Certified Public Accountants No. 1504 - Communicating Key Audit Matters in the Audit Report" in the following format:

(1) Revenue recognition

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Description of the matter

Please refer to the accounting policies described in "III. Significant accounting policies and accounting estimates (28), Revenue" in the notes to the financial statements and "V. Notes on important items in the consolidated financial statements (41)". The operating income of your company's 2025 financial statements is 606.1783 million yuan, which is mainly the sales income of steroidal drug raw materials. For domestic sales, your company will ship or deliver the goods to a designated location, and the time point for revenue recognition will be after customer acceptance; for export sales, after the goods are shipped out of the warehouse and go through customs declaration and export procedures, the date of electronic port customs declaration and export will be the time point for revenue recognition.

Since operating income is significant in amount and is one of the key performance indicators, we identified operating income as a key audit matter.

Audit response

The audit procedures we perform on your company's revenue recognition include, but are not limited to, the following main procedures:

Understand and evaluate your company's internal controls related to sales revenue, and test the effectiveness of key internal controls;

Combined with the extraction and inspection of the terms of the main sales contracts, evaluate whether your company's revenue recognition timing complies with the accounting policies for revenue recognition;

Based on the consideration of the transaction amount, nature, and customer characteristics, a sampling method is used to perform correspondence procedures for major customers to confirm the sales revenue and current balance of the customer and your company;

Use sampling methods to examine supporting documents related to revenue recognition in different regions, different customers and different types of products, including sales contracts, orders, sales invoices, outbound orders, customer receipt forms, export customs declarations and reconciliation settlement forms, etc. to perform detailed testing;

Perform cut-off testing on revenue transactions recorded around the balance sheet date to assess whether sales revenue is recognized in the appropriate period;

Implemented supplementary procedures including background checks on new customers, analysis of price and gross profit differences with peers, production capacity constraints and other factors based on your company's industry status, and corresponding analysis;

Confirm whether there is a relationship between important customers and your company by inquiring about the industrial and commercial information of important customers and asking relevant personnel of your company.

(2) Provision for inventory decline

Description of the matter

Please refer to the accounting policies described in Note "III. Significant Accounting Policies and Accounting Estimates (13) Inventory" of the financial statements, and Note "V. Notes to Important Items of the Consolidated Financial Statements (8)". As of December 31, 2025, the book balance of your company's inventory was RMB 498,878,800, the amount of inventory devaluation provision was RMB 25,122,000, and the book value was RMB 473,756,800. On the balance sheet date, inventories are measured at the lower of cost and net realizable value, and inventory depreciation provisions are made based on the difference between the cost of a single inventory and the net realizable value. The management of your company determines its net realizable value based on the estimated selling price minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes, based on the purpose of holding inventory. Due to the high book value of inventory, the accrual of inventory depreciation provisions has a significant impact on the financial statements, and determining the net realizable value of inventory involves significant management judgment. Therefore, we identified the inventory depreciation test as a key audit matter.

Audit response

The audit procedures we perform on your company's inventory depreciation include but are not limited to the following main procedures:

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Understand and evaluate the design and operating effectiveness of management’s internal controls related to inventory management and inventory impairment provision;

Obtain the end-of-period warehouse inventory balance details, participate in the company's year-end inventory process, and conduct on-site supervision of inventory based on sampling methods to observe whether there are signs of slow-moving, spoiled, damaged, etc. inventory;

Evaluate the rationality of the management's method of accruing inventory depreciation provisions, and review whether the management's estimation assumptions on the selling price of the inventory and the amount of costs, sales expenses and related taxes that will be incurred upon completion are reasonable;

Obtain the inventory age status table of the ending inventory, conduct a separate depreciation test on older inventory; review the company's accrual process for inventory depreciation reserves; review the inventory valuation and carry-forward process, confirm the accuracy of cost carry-forward, and pay attention to the actual sales of the relevant inventory after the period.

(3) Book value of fixed assets

Description of the matter

Please refer to the accounting policies described in Note "III. Significant Accounting Policies and Accounting Estimates (18) Fixed Assets" of the financial statements, and "V. Notes to Important Items of the Consolidated Financial Statements (12)". As of December 31, 2025, the book value of your company's fixed assets was RMB 1,549.2393 million, accounting for 54.35% of the total assets. The proportion of fixed assets to the total assets is relatively high, and the timing of the transfer of fixed assets and the estimation of the estimated useful life of fixed assets involve significant management judgment. Therefore, we identified the recognition and measurement of fixed assets as key audit matters.

Audit response

The audit procedures we perform on your company's fixed assets include but are not limited to the following main procedures:

Understand the key internal control systems related to fixed assets, evaluate the design of these controls, determine whether they are implemented, and test the operating effectiveness of related internal controls;

Draw and supervise important fixed assets, conduct on-site survey of fixed assets, and cross-check with the physical assets recorded in the books to pay attention to whether there are idle fixed assets and fixed assets that have been scrapped and not processed;

For the fixed assets transferred into the project under construction, check the project completion progress data at the time when the project under construction is transferred to fixed assets and the node data when it reaches the scheduled usable state, check whether the fixed asset confirmation time is in compliance with the provisions of the accounting standards for enterprises, check whether the recorded value is consistent with the relevant records of the project under construction, and whether it is consistent with the final accounts for completion, acceptance reports, etc.; for fixed assets that have reached the expected usable state but have not yet been processed for the final accounts for completion, check whether they have been accounted for according to the estimated value, and depreciation is calculated as required;

Extract original vouchers such as purchase contracts, approval documents, invoices, and payment vouchers for newly added fixed assets to check whether their accounting processing is accurate;

Recalculate the depreciation of fixed assets and review the accuracy of the depreciation amount of fixed assets;

Review and check whether the basis for making provision for impairment of fixed assets is sufficient, whether the identification of signs of impairment and the estimation of important assumptions related to the calculation of recoverable amount are reasonable, and whether the accounting treatment is correct;

Check whether information related to fixed assets has been appropriately presented in financial reports.

4. Other information

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The management of your company (hereinafter referred to as management) is responsible for other information. The other information includes the information covered in your company's 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 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 are free of material misstatements due to fraud or errors.

In preparing financial statements, management is responsible for assessing the company's ability to continue as a going concern, disclosing matters related to going concern (if applicable), and applying the going concern assumption, unless management plans to liquidate the company, cease operations or has no other realistic alternative.

Those charged with governance are responsible for overseeing your company’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 is a significant uncertainty about events or conditions that may cause significant doubts about your company'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 your company 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.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(6) Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities in your company to express an audit 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.

Daxin Accounting Firm (Special General Partnership) Chinese Certified Public Accountant:

(Project Partner)

China·Beijing Chinese Certified Public Accountant:

April 27, 2026

2. Financial statements

The unit of statements in the financial notes is: Yuan

Consolidated balance sheet

Prepared by: Hubei Tongyong Pharmaceutical Co., Ltd. December 31, 2025 Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 85,845,945.61 141,181,205.23 Settlement reserves

Loan funds

Trading financial assets 1,010.76 1,010.63 Derivative financial assets

Notes receivable 18,545,191.89 15,969,258.05 Accounts receivable 159,349,878.22 188,668,396.08 Accounts receivable financing 11,207,056.13 9,623,992.21 Prepayments 7,016,148.45 10,721,612.30 Premiums receivable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Reinsurance accounts receivable

Receivable reinsurance contract reserves

Other receivables 3,296,875.94 2,052,867.78 Including: interest receivable

Dividends receivable

Buy financial assets under resale agreements

Inventory 473,756,771.10 384,797,242.09

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 11,268,530.09 16,981,792.75 Total current assets 770,287,408.19 769,997,377.12 Non-current assets:

Grant loans and advances

debt investment

Other debt investments

long-term receivables

Long-term equity investment 48,294,720.92 48,268,996.23 Other equity instrument investments

Other non-current financial assets

Investment real estate 17,384,513.60 18,014,552.84 Fixed assets 1,549,239,328.73 1,154,486,627.36 Construction in progress 333,586,196.15 694,413,010.74 Productive biological assets

oil and gas assets

Right-of-use assets 14,175.28 70,876.60 Intangible assets 53,787,523.55 49,881,065.96

Among them: data resources

development expenditure

Among them: data resources

goodwill

Long-term deferred expenses 6,561,599.11 9,618,102.36 Deferred income tax assets 62,770,786.40 37,290,872.15 Other non-current assets 8,732,007.28 7,838,847.50 Total non-current assets 2,080,370,851.02 2,019,882,951.74 Total assets 2,850,658,259.21 2,789,880,328.86 Current liabilities:

Short-term borrowings 229,753,280.41 294,303,069.17 Borrowings from the central bank

borrowing funds

Trading financial liabilities

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Derivative financial liabilities

Notes payable 37,000,000.00 37,117,956.00Accounts payable 424,258,451.31 422,795,467.70 Advance payments 47,266.10 47,266.05Contract liabilities 6,593,536.43 1,226,484.65 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 9,640,399.17 9,514,285.40 Taxes payable 427,671.32 2,844,802.30 Other payables 1,356,502.77 899,641.66 Including: interest payable

Dividends payable

Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 95,345,131.59 24,609,710.86 Other current liabilities 17,654,540.47 14,328,360.44 Total current liabilities 822,076,779.57 807,687,044.23 Non-current liabilities:

insurance contract reserves

Long-term borrowings 621,305,505.80 484,919,646.66 Bonds payable 352,850,540.30 327,722,176.41 Including: preference shares

perpetual bond

Lease liability

long-term payables

Long-term employee benefits payable

Estimated liabilities 24,941.97 4,648,020.47 Deferred income 144,061,058.65 150,250,753.02 Deferred income tax liabilities 982,487.04 10,633.08 Other non-current liabilities

Total non-current liabilities 1,119,224,533.76 967,551,229.64 Total liabilities 1,941,301,313.33 1,775,238,273.87 Owners’ equity:

Share capital 115,281,113.00 115,279,416.00 Other equity instruments 96,478,492.63 96,489,947.36 Including: preference shares

perpetual bond

Capital reserve 409,022,940.42 410,599,708.03 Less: treasury shares 21,972,301.43

other comprehensive income

special reserve

Surplus reserve 9,953,911.25 9,953,911.25Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd.

General risk preparation

Undistributed profits 217,455,575.70 290,814,696.93 Total owners’ equity attributable to the parent company 826,219,731.57 923,137,679.57 Minority shareholders’ equity 83,137,214.31 91,504,375.42 Total owners’ equity 909,356,945.88 1,014,642,054.99 Total liabilities and owners’ equity 2,850,658,259.21 2,789,880,328.86 Legal representative: Xie Zubin Person in charge of accounting work: Liu Xiangdong Person in charge of accounting department: Liu Xiangdong

Balance sheet of the parent company

Unit: Yuan

Item Ending balance Beginning balance

Current assets:

Monetary funds 41,616,953.52 25,068,750.28 Trading financial assets 1,010.76 1,010.63 Derivative financial assets

Notes receivable 3,274,529.40 21,809,300.00 Accounts receivable 18,872,988.58 63,597,685.18 Accounts receivable financing 3,747,952.70 975,018.74 Prepayments 124,960,293.92 77,857,151.97 Other receivables 346,513,669.98 388,913,418.48 Including: interest receivable 5,835,922.50

Dividends receivable

Inventory 121,294,302.10 116,635,135.40

Among them: data resources

contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 7,341,242.40 36,607.68 Total current assets 667,622,943.36 694,894,078.36 Non-current assets:

debt investment

Other debt investments

long-term receivables

Long-term equity investment 549,479,383.05 549,433,969.05 Other equity instrument investments

Other non-current financial assets

Investment real estate 17,384,513.60 18,014,552.84 Fixed assets 31,755,123.64 33,134,849.56 Construction in progress 2,069,172.82 2,058,422.76 Productive biological assets

oil and gas assets

Right-of-use assets 14,175.28 70,876.60 Intangible assets 26,153,203.60 26,725,439.56 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Among them: data resources

development expenditure

Among them: data resources

goodwill

Long-term deferred expenses 1,105,000.00 1,495,000.00 Deferred income tax assets 8,587,893.41 6,479,470.54 Other non-current assets 70,000.00 133,689.79 Total non-current assets 636,618,465.40 637,546,270.70Total assets 1,304,241,408.76 1,332,440,349.06Current liabilities:

Short-term borrowings 122,583,002.64 124,074,479.17 Trading financial liabilities

Derivative financial liabilities

Notes payable 57,000,000.00 34,808,978.00Accounts payable 19,418,915.28 13,703,188.79 Advance receipts 47,266.10 47,266.05Contract liabilities 19,283,254.84 61,471,872.06 Employee benefits payable 2,842,104.61 3,314,026.56 Taxes payable 149,560.67 2,448,546.01 Other payables 2,382,960.58 9,238,643.62 Including: interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due within one year 30,373,294.78 3,460,276.24 Other current liabilities 5,537,756.57 1,908,344.30 Total current liabilities 259,618,116.07 254,475,620.80 Non-current liabilities:

Long-term borrowings 17,075,071.29 27,000,000.00 Bonds payable 352,850,540.30 327,722,176.41 Including: preference shares

perpetual bond

Lease liability

long-term payables

Long-term employee benefits payable

Estimated liabilities 314,769.96 Deferred income 25,935,548.16 26,626,648.39 Deferred income tax liabilities 2,127.90 10,633.08 Other non-current liabilities

Total non-current liabilities 395,863,287.65 381,674,227.84 Total liabilities 655,481,403.72 636,149,848.64 Owners’ equity:

Share capital 115,281,113.00 115,279,416.00 Other equity instruments 96,478,492.63 96,489,947.36 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Among them: preferred shares

perpetual bond

Capital reserve 409,256,966.24 410,833,733.85 Less: treasury shares 21,972,301.43

other comprehensive income

special reserve

Surplus reserve 9,953,911.25 9,953,911.25 Undistributed profits 39,761,823.35 63,733,491.96 Total owners’ equity 648,760,005.04 696,290,500.42 Total liabilities and owners’ equity 1,304,241,408.76 1,332,440,349.06

Consolidated income statement

Unit: Yuan

Project 2025 2024

Total operating income 606,178,267.31 536,595,592.03 Including: operating income 606,178,267.31 536,595,592.03 Interest income

Premiums earned

Fee and commission income

Total operating costs 708,683,380.01 573,756,838.18 Including: operating costs 522,680,830.27 431,033,318.85 Interest expenses

Handling fees and commission expenses

surrender deposit

Net compensation expenses

Net withdrawal of insurance liability contract reserves

policy dividend payout

Reinsurance cost

Taxes and surcharges 1,292,575.31 1,267,216.98 Sales expenses 8,755,403.03 6,851,641.40 Management expenses 56,887,189.80 60,971,850.95 Research and development expenses 69,851,019.91 51,083,365.27Financial expenses 49,216,361.69 22,549,444.73Including: Interest expenses 47,732,650.03 23,518,169.69

Interest income 796,397.47 1,053,429.94 plus: other income 19,710,674.87 12,522,760.61 Investment income (losses are listed with "-") -265,405.91 -349,407.59 Including: investment income from associates and joint ventures 1,456.43 -50,757.59 Income from derecognition of financial assets measured at amortized cost -50,429.17 -298,650.00 Exchange income (losses are listed with "-")

Net exposure hedging income (losses are listed with "-")

Gains from changes in fair value (losses are listed with "-") 0.13 0.18 Credit impairment losses (losses are listed with "-") -5,924,881.33 -4,429,288.99

Asset impairment losses (losses are listed with "-") -10,563,099.54 -13,118,322.62 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Asset disposal income (losses are listed with "-") -1,437,181.19 113,563.03

Operating profit (losses are listed with "-") -100,985,005.67 -42,421,941.53

Add: non-operating income 542,209.87 532,043.14

Less: Non-operating expenses 4,772,008.17 3,645,257.00

Total profits (total losses are listed with "-") -105,214,803.97 -45,535,155.39

Less: Income tax expenses -23,488,521.63 -13,879,016.52

Net profit (net loss is listed with "-") -81,726,282.34 -31,656,138.87

(1) Classification by business continuity

Net profit from continuing operations (net loss is listed with "-") -81,726,282.34 -31,656,138.87
Net profit from discontinued operations (net loss is listed with "-")

(2) Classification according to ownership ownership

Net profit attributable to shareholders of the parent company -73,359,121.23 -27,591,132.24
Profit and loss of minority shareholders -8,367,161.11 -4,065,006.63

6. Net amount of other comprehensive income after tax

Other comprehensive income, net of tax, attributable to owners of the parent company

(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 income that can be converted to profit or loss under the equity method
Changes in fair value of other debt investments
The amount of financial assets reclassified and included in other comprehensive income
Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements

7.Others

Other comprehensive income, net of tax, attributable to minority shareholders

Total comprehensive income -81,726,282.34 -31,656,138.87 Total comprehensive income attributable to owners of the parent company -73,359,121.23 -27,591,132.24 Total comprehensive income attributable to minority shareholders -8,367,161.11 -4,065,006.63

8. Earnings per share:

(1) Basic earnings per share -0.64 -0.24

(2) Diluted earnings per share -0.64 -0.24 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 yuan, and the net profit realized by the merged party in the previous period is: 0 yuan. Legal representative: Xie Zubin Person in charge of accounting work: Liu Xiangdong Person in charge of accounting department: Liu Xiangdong

Income statement of the parent company

Unit: Yuan

Project 2025 2024

Operating income 203,531,834.69 287,016,456.97

Less: Operating costs 149,751,164.47 237,622,272.91

Taxes and surcharges 472,676.28 605,241.20

Selling expenses 6,319,872.03 5,949,963.94

Management expenses 15,538,697.39 19,863,640.41

Research and development expenses 23,212,344.05 9,309,557.22

Financial expenses 33,664,070.62 12,439,261.62

Including: Interest expenses 33,817,635.60 31,537,039.25 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Interest income 442,173.59 19,655,716.45 plus: other income 2,032,731.42 5,336,520.35 Investment income (losses are listed with "-") 1,456.43 -198,374.44 Among them: investment income from associates and joint ventures 1,456.43 27,875.56 Income from derecognition of financial assets measured at amortized cost

-226,250.00 (losses are listed with "-")

Net exposure hedging income (losses are listed with "-")

Gains from changes in fair value (losses are listed with "-") 0.13 0.18 Credit impairment losses (losses are listed with "-") -1,555,216.84 -104,649.74 Asset impairment losses (losses are listed with "-") -914,268.16 -2,749,090.28

Asset disposal income (losses are listed with "-") 44,214.87 -3,151.55

Operating profit (losses are listed with "-") -25,818,072.30 3,507,774.19 Plus: Non-operating income 78,933.48 141,407.08 Less: Non-operating expenses 94,392.74 1,453,784.51
Total profits (total losses are listed with "-") -25,833,531.56 2,195,396.76 Less: income tax expenses -1,861,862.95 1,269,269.13
Net profit (net loss is listed with "-") -23,971,668.61 926,127.63

(1) Net profit from continuing operations (net loss is listed with "-") -23,971,668.61 926,127.63

(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 income that can be converted to profit or loss under the equity method
Changes in fair value of other debt investments
The amount of financial assets reclassified and included in other comprehensive income
Credit impairment provisions for other debt investments
Cash flow hedging reserve
Translation differences of foreign currency financial statements

7.Others

Total comprehensive income -23,971,668.61 926,127.63

7. Earnings per share:

(1) Basic earnings per share -0.21 0.01

(2) Diluted earnings per share -0.21 0.01

Consolidated cash flow statement

Unit: Yuan

Project 2025 2024

1. Cash flow generated from operating activities:

Cash received from sales of goods and provision of services 509,412,319.88 451,575,401.16 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

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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 returns received 39,222,478.87 68,146,056.57 Other cash received related to operating activities 39,052,082.20 116,630,481.96 Subtotal of cash inflows from operating activities 587,686,880.95 636,351,939.69 Cash paid for purchasing goods and receiving services 413,509,131.53 517,457,150.25

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 86,527,519.07 67,227,772.45 Various taxes paid 6,139,366.21 20,895,272.39 Cash paid for other operating activities 40,474,473.81 51,360,192.23 Subtotal of cash outflows from operating activities 546,650,490.62 656,940,387.32 Net cash flow generated from operating activities 41,036,390.33 -20,588,447.63

2. Cash flow generated from investing activities:

Recover cash received on investment

Cash received from investment income

Proceeds from disposal of fixed assets, intangible assets and other long-term assets

183,709.00 118,400.00 net cash back

Net cash received from disposal of subsidiaries and other business units

Other cash received related to investing activities 17,157,465.13 Subtotal of cash inflows from investing activities 183,709.00 17,275,865.13 Expenses for the purchase and construction of fixed assets, intangible assets and other long-term assets

166,326,364.17 311,613,852.76 paid in cash

Cash paid for investments

Net increase in mortgage loans

Net cash received from subsidiaries and other business units

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 166,326,364.17 311,613,852.76 Net cash flow generated from investing activities -166,142,655.17 -294,337,987.63

3. Cash flow generated from financing activities:

Cash received from investments 24,500,000.00 Including: Cash received by subsidiaries from minority shareholders 24,500,000.00 Cash received from borrowings 468,380,787.85 723,589,646.66 Cash received from other financing activities 32,001,500.00 Subtotal of cash inflows from financing activities 468,380,787.85 780,091,146.66 Cash paid to repay debts 326,064,928.71 434,195,867.85

Cash paid for distribution of dividends, profits or repayment of interest 29,831,693.86 25,692,538.29 Including: dividends and profits paid by subsidiaries to minority shareholders

Payment of other cash related to financing activities 22,298,515.77 798,650.00 Subtotal of cash outflows from financing activities 378,195,138.34 460,687,056.14 Net cash flow generated from financing activities 90,185,649.51 319,404,090.52

Impact of exchange rate changes on cash and cash equivalents -64,040.56 -561,781.53
Net increase in cash and cash equivalents -34,984,655.89 3,915,873.73 Plus: opening balance of cash and cash equivalents 100,122,033.02 96,206,159.29
Balance of cash and cash equivalents at the end of the period 65,137,377.13 100,122,033.02 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report
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 198,227,921.51 405,595,117.84 Tax refunds received 1,982,719.12 Cash received from other operating activities 243,254,342.32 298,146,435.47 Subtotal of cash inflows from operating activities 441,482,263.83 705,724,272.43 Cash paid for purchasing goods and receiving services 187,314,622.04 361,127,748.47 Cash paid to and for employees 19,669,322.38 17,539,309.72 Various taxes and fees paid 3,028,777.19 12,060,459.94 Other cash payments related to operating activities 195,318,754.07 362,973,359.30 Subtotal of cash outflows from operating activities 405,331,475.68 753,700,877.43 Net cash flow generated from operating activities 36,150,788.15 -47,976,605.00

2. Cash flow generated from investing activities:

Recover cash received on investment

Cash received from investment income

Recovery from disposal of fixed assets, intangible assets and other long-term assets

183,309.00 5,000.00 Net cash

Net cash received from disposal of subsidiaries and other business units

Other cash received related to investing activities 5,835,922.50

Subtotal of cash inflows from investing activities 6,019,231.50 5,000.00 Paid for the purchase and construction of fixed assets, intangible assets and other long-term assets

1,636,291.60 1,984,544.80 cash

Cash paid for investment 1,000,000.00 25,950,000.00 Net cash paid to acquire subsidiaries and other business units

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 2,636,291.60 27,934,544.80 Net cash flow generated from investing activities 3,382,939.90 -27,929,544.80

3. Cash flow generated from financing activities:

Absorbing cash received from investments

Cash received from borrowings 119,500,000.00 211,000,000.00 Cash received from other financing activities 35,691,263.83 Subtotal of cash inflows from financing activities 119,500,000.00 246,691,263.83 Cash paid to repay debts 114,237,157.01 165,600,000.00 Cash paid for distribution of dividends, profits or repayment of interest 8,259,999.40 8,113,506.27 Cash paid for other financing activities 22,031,653.43 226,250.00 Subtotal of cash outflows from financing activities 144,528,809.84 173,939,756.27 Net cash flow generated from financing activities -25,028,809.84 72,751,507.56

Impact of exchange rate changes on cash and cash equivalents 273,596.50 -429,965.61
Net increase in cash and cash equivalents 14,778,514.71 -3,584,607.85 plus: opening balance of cash and cash equivalents 8,453,431.69 12,038,039.54
Balance of cash and cash equivalents at the end of the period 23,231,946.40 8,453,431.69
Consolidated statement of changes in owners’ equity

Amount of current period

Unit: Yuan

2025

Attributable to the owners' equity of the parent company All

minority

Item Other equity instruments Less: Other general undivided shareholder capital special surplus shareholders

Equity Inventory Comprehensive Risk Distribution Others Subtotal Yihe

Priority Perpetual Other Reserve Shares Income Reserves Reserves Profit Equity Full text of the 2025 Annual Report of Hubei Tongyong Pharmaceutical Co., Ltd.

stocks bonds

115, 96,4 410, 290, 923, 91,5 1,01

9,95

Previous year 279, 89,9 599, 814, 137, 04,3 4,64

3,91

End of period 416. 47.3 708. 696. 679. 75.4 2,05

1.25

Balance 00 6 03 93 57 2 4.99

add

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

him

115, 96,4 410, 290, 923, 91,5 1,01

9,95

This year 279, 89,9 599, 814, 137, 04,3 4,64

3,91

Beginning of the period 416. 47.3 708. 696. 679. 75.4 2,05

1.25

Balance 00 6 03 93 57 2 4.99

3.

This issue

increase or decrease

Changes - - -

- 21,9 -

Amount 73,3 96,9 105,

1,69 11,4 1,57 72,3 8,36

(minus 59,1 17,9 285,

7.00 54.7 6,76 01.4 7,16

Less than 21.2 48.0 109.

3 7.61 3 1.11

"-3011" number

fill in

column)

(a - - -

) Comprehensive 73,3 73,3 81,7

8,36

Combined 59,1 59,1 26,2

7,16

Yi Zong 21.2 21.2 82.3

1.11

Um 3 3 4

(two

) - -

- 21,9

Have 23,5 23,5

1,69 11,4 1,57 72,3

Investment 58,8 58,8

7.00 54.7 6,76 01.4

and minus 26.7 26.7

3 7.61 3

Less capital 7 7 books

1．

all

bettors

Entering

Ordinary

- -Others

11,4 11,4 11,4 Equity

54.7 54.7 54.7Tools

3 3 3 held

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

investors invest capital

3． Share-based payment - - - Amount included in 1,66 1,66 1,66All 4,12 4,12 4,12rights 0.32 0.32 0.32 Gains - - 21,9

87,3 21,8 21,8 4. 1,69 72,3

52.7 83,2 83,2Others 7.00 01.4 1 51.7 51.7

2 2 (3) Profit distribution

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)

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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． Extract this period

Used in this issue

(6) Others

115, 96,4 409, 21,9 217, 826, 83,1 909,

9,95This issue 281, 78,4 022, 72,3 455, 219, 37,2 356,

3,91 end of period 113. 92.6 940. 01.4 575. 731. 14.3 945.

1.25 Balance 00 3 42 3 70 57 1 88 Amount of last period

Unit: Yuan

2024

The project is owned by minority owners of the parent company.

Share capital Other equity instruments Capital Less: Others Special Surplus General Undivided Others Subtotal Shareholders Full text of the 2025 Annual Report of Hubei Tongyong Pharmaceutical Co., Ltd.

Priority Perpetual Reserve Inventory Comprehensive Reserve Reserve Risk Distribution Equity Yihe Others

Stocks Debt Stocks Income Profit Plan

115, 96,4 410, 320, 952, 71,0 1,02

9,86

Previous year 278, 93,5 774, 341, 749, 26,0 3,77

1,29

End of period 902. 67.4 731. 025. 525. 64.8 5,58

8.49

Balance 00 4 48 75 16 0 9.96

add

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

him

115, 96,4 410, 320, 952, 71,0 1,02

9,86

This year 278, 93,5 774, 341, 749, 26,0 3,77

1,29

Beginning of the period 902. 67.4 731. 025. 525. 64.8 5,58

8.49

Balance 00 4 48 75 16 0 9.96

3.

This issue

increase or decrease

Changes - -

20,4 - Amount - 92,6 29,5 29,6

175, 78,3 9,13 (minus 3,62 12.7 26,3 11,8

00 023. 10.6 3,53 less than 0.08 6 28.8 45.5

45 2 4.97 "- 2 9

"No.

fill in

column)

(a - - -

) Comprehensive 27,5 27,5 31,6

4,06

Total 91,1 91,1 56,1

5,00

Yi Zong 32.2 32.2 38.8

6.63

Um 4 4 7

(two

) place

- 24,3 24,3 for those who have -

11,7 14,8 80,0 65,1Investment 3,62

00 06.2 12.2 00.0 87.7 and minus 0.08

0 8 0 2 Less capital

Ben

1．

All 24,3 24,3 investors invested 80,0 80,0 invested 00.0 00.0 Ordinary 0 0 shares

- -Others

3,62 3,62 3,62 Equity

0.08 0.08 0.08Tools

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

hold

bettors

Investment

Ben

3．

Payment - - -Included 25,2 25,2 25,2All 05.9 05.9 05.9 Rights 6 6 6 Benefits

Amount

13,4 14,0 14,0 4. 514.

99.7 13.7 13.7Others 00

6 6 6 (Three - - -

92,6

) profit 1,93 1,84 1,84

12.7

Margin 5,19 2,58 2,58 6.58 3.82 3.82

1． -

92,6

Extract 92,6

12.7

Surplus 12.7 public reserve 6

- -Extraction

1,84 1,84 1,84General

2,58 2,58 2,58Risk

3.82 3.82 3.82Preparation

3．

Right

Those who have

(or

East)

of points

Match

4．

Others

(four

) place

Those who have

Equity

internal

carry forward

1．

capital

public area

Transfer to increase

capital

(or

this)

surplus

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

public area

Transfer to increase

capital

(or

this)

3．

surplus

public area

make up for

Loss

4．

Settings

benefit

plan

change

forehead knot

transfer

Deposit and receive

benefit

Others

Comprehensive

income

carry forward

retain

income

6．

Others

(five

)Specialized

Xiang Chu

Prepare

1．

This issue

Extract

This issue

Use

- (Six 163,

163, 163,) its 317.

317.He 25

25 25

115, 96,4 410, 290, 923, 91,5 1,01

9,95This issue 279, 89,9 599, 814, 137, 04,3 4,64

3,91 End of period 416. 47.3 708. 696. 679. 75.4 2,05

1.25 Balance 00 6 03 93 57 2 4.99

Statement of changes in owner’s equity of the parent company

Amount of current period

Unit: Yuan

Project The full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd. in 2025

Other equity instruments All less: Others Undivided

Capital Special Surplus Owners’ Equity Priority Perpetual Inventory Comprehensive Dividends Others

Other public reserves, reserves, equity joint ventures, bonds, shares, profits

plan

1.

115,2 96,48 410,8 9,953 63,73 696,2Previous year

79,41 9,947 33,73 ,911. 3,491 90,50 End of period

6.00 .36 3.85 25 .96 0.42Balance

add

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

him

2.

115,2 96,48 410,8 9,953 63,73 696,2 this year

79,41 9,947 33,73 ,911. 3,491 90,50 Beginning of the period

6.00 .36 3.85 25 .96 0.42Balance

3.

This issue

increase or decrease

change

- -Amount - 21,97

1,697 1,576 23,97 47,53 (minus 11,45 2,301

.00 ,767. 1,668 0,495 less than 4.73 .43

61 .61 .38 “－

"No.

fill in

column)

-) Comprehensive

23,97 23,97 combined

1,668 1,668Yizong

.61 .61 amount

(two

) place

-Those who have - 21,97

1,697 1,576 23,55Investment 11,45 2,301

.00,767.8,826 and minus 4.73.43

61.77 little capital

Ben

1． place

Those who have

invest

of Pu

common stock

Its - -Other rights 11,45 11,45Yigong 4.73 4.73Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd.

Capital invested by tool holders

3． Share-based payment - - Amount of stockholders 1,664 1,664 owners ,120. ,120. Equity 32 32

21,97 4. Its 1,697 87,35 21,88

2,301He .00 2.71 3,251 .43

.72 (3) Profit distribution

1． Withdrawal from surplus reserve

to owner

(or shares

East) distribution

3． Others

(4) Internal carryover of owners’ equity

1． Capital reserve converted into capital

(or shares

this)

Conversion of surplus reserves into capital

(or shares

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

this)

3． surplus

Yu Gong

Jimi

make up for losses

loss

4． Set

Determined to accept

benefit plan

Wipe

moving amount

carry forward

retain

income

He comprehensive

combine

Yi Jie

transfer

Deposit and receive

benefit

6． its

him

(five

)Specialized

Xiang Chu

Prepare

1． Ben

Periodic withdrawal

take

envoy

use

(six

) its

him

4.

115,2 96,47 409,2 21,97 9,953 39,76 648,7This issue

81,11 8,492 56,96 2,301 ,911. 1,823 60,00 End of period

3.00 .63 6.24 .43 25 .35 5.04Balance

Amount of last period

Unit: Yuan

2024

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

1.

115,2 96,49 410,8 9,861 64,74 697,2Previous year

78,90 3,567 45,44 ,298. 2,560 21,76End of period

2.00 .44 0.05 49 .91 8.89Balance

Add the full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd.

: Yes

Planning and administration

policy change

Update

before

period difference

Wrong update

Right

its

him

2.

115,2 96,49 410,8 9,861 64,74 697,2This year

78,90 3,567 45,44 ,298. 2,560 21,76 Beginning of the period

2.00 .44 0.05 49 .91 8.89Balance

3.

This issue

increase or decrease

change

Amount - - -

514.0 92,61 1,009

(minus 3,620 11,70 931,2

0 2.76 ,068.

Less than .08 6.20 68.47 “-

"No.

fill in

column)

) comprehensive

926,1 926,1 combined

27.63 27.63Yizong

(two

) place

Those who have - - -

514.0

Investment 3,620 11,70 14,81 and less .08 6.20 2.28 less capital

Ben

1． place

Those who have

invest

of Pu

common stock

other rights

Yi Gong - - Holder 3,620 3,620 Owner .08 .08 Investment

capital

3． shares

Pay - -Payment 25,20 25,20 5.96 5.96 For those who have

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Equity

of gold

4． its 514.0 13,49 14,01other 0 9.76 3.76

(III - -) Profit 92,61 1,935 1,842 Profit points 2.76,196.,583. Distribution 58 82

1． mention

-Take profit 92,61

92,61 Yu Gong 2.76

2.76 plot

all

or - - (or 1,842 1,842 shares, 583., 583. East) 82 82 points

Match

3． its

him

(four

) place

Those who have

Equity

internal

carry forward

1． capital

My Lord

Accumulated transfer

Increase capital

Ben

(or

this)

surplus

Yu Gong

Accumulated transfer

Increase capital

Ben

(or

this)

3． surplus

Yu Gong

Jimi

make up for losses

loss

4． Set

Determined to accept

benefit plan

Wipe

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

moving amount

carry forward

retain

income

He comprehensive

combine

Yi Jie

transfer

Deposit and receive

benefit

6． its

him

(five

)Specialized

Xiang Chu

Prepare

1． Ben

Periodic withdrawal

take

envoy

use

(six

) its

him

4.

115,2 96,48 410,8 9,953 63,73 696,2This issue

79,41 9,947 33,73 ,911. 3,491 90,50 End of period

6.00 .36 3.85 25 .96 0.42Balance

3. Basic situation of the company

(1) Company registration place and headquarters address

Hubei Tongyong Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company" or the "Company") is an overall restructuring of Yicheng Tongyong Pharmaceutical Co., Ltd. through the resolution of the shareholders' meeting, based on the audited book net assets on May 31, 2018 as the base date. The company obtained the "Business License" with the unified social credit code 91420684795913849E from the Xiangyang Municipal Administration for Market Regulation on June 10, 2021. According to the China Securities Regulatory Commission’s “Securities Regulatory License Approval of the [2021] No. 252 document "Reply on Approval of Hubei Gongyong Pharmaceutical Co., Ltd.'s Initial Public Offering Stock Registration", the company's initial public offering of RMB ordinary shares (A shares) to domestic investors in April 2021 2,900.00 10,000 shares, and was listed for trading on the Shenzhen Stock Exchange on April 9, 2021. The stock abbreviation is "Today Pharmaceutical" and the securities code is "300966". After this issuance of stocks, the company's registered capital will be changed to 115,277,000.00 yuan.

Company address: Gaokeng Group 1, Xiaohe Town, Yicheng City

Registered capital: 115,277,000.00 yuan

Legal representative: Xie Zubin

(2) The main business activities actually engaged in by the enterprise

The company is a high-tech enterprise specializing in the research, development, production and sales of steroidal drug raw materials. The main business scope is the production and sales of pharmaceutical raw materials and intermediates; medical technology development and technical services. The company's main products are starting materials and intermediates required for the production of steroid drugs.

(3) Approval of the financial report and the approval of the financial report. The Japanese financial statements were approved by the company’s board of directors on April 27, 2026. Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

4. Basis for preparation of financial statements

Basics of preparation

The Company's financial statements are based on going concern, based on actual transactions and events, in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and specific accounting standards promulgated by the Ministry of Finance (hereinafter referred to as the Accounting Standards for Business Enterprises), and are prepared based on the important accounting policies and accounting estimates formulated.

Continued operations

The company expects that production and sales will be in a virtuous cycle within 12 months from the end of the reporting period. The company has good management, good ability to continue operating, and there is no risk that will affect ongoing operations.

5. Important accounting policies and accounting estimates

Specific accounting policies and accounting estimation tips:

The following disclosures cover the specific accounting policies and accounting estimates formulated by the Company based on actual production and operation characteristics.

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 as of December 31, 2025, operating results and cash flow in 2025 and other relevant information.

Accounting period

The company's fiscal year is the Gregorian calendar year, that is, from January 1 to December 31 of each year.

Business cycle

The company uses 12 months a year as its normal operating cycle, and uses the operating cycle as the liquidity classification standard for assets and liabilities.

Accounting standard currency

The Company uses RMB as its functional accounting currency.

Determination method and selection basis of importance standards

☑Applicable □Not applicable

Project Materiality Criteria

The individual amount accounts for more than 5% of the accounts receivable or bad debt provisions, and the amount exceeds 1 million yuan, or the accounts receivable for which bad debt provisions are made when the individual item is important

Provision for bad debts during the period affects changes in profit and loss

If the single amount accounts for more than 5% of the current period's bad debt provisions, and the amount exceeds 1 million yuan, the bad debt provisions for important receivables are recovered or reversed.

or affect changes in profits and losses for the current period

Important accounts receivable are actually written off. The individual amount accounts for more than 5% of the accounts receivable or bad debt provisions, and the amount exceeds 1 million yuan. There is a significant change in the book value of advance receipts and contract assets. The change in the current period exceeds 30%.

The investment budget accounts for more than 5% of the amount of fixed assets, and the amount incurred in the current period accounts for the total amount of construction in progress in the current period. Important construction projects in progress

More than 10% of the balance (or more than 10% of the closing balance), and the amount exceeds 1 million yuan Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Important outsourced research projects A single outsourced research project accounts for more than 5% of the total R&D investment, and the amount exceeds 1 million yuan. Important accounts payable for more than one year. A single outsourced project accounts for more than 5% of the total accounts payable, and the amount exceeds 1 million yuan.

Important other payables for more than one year, the individual amount accounts for more than 5% of the total other payables, and the amount exceeds 1 million yuan

Important estimated liabilities: Single type estimated liabilities account for more than 10% of the total estimated liabilities, and the amount exceeds 1 million yuan

Subsidiaries where minority shareholders hold more than 5% of the equity, and the total assets, net assets, operating income and interests held by minority shareholders of the subsidiary are important

Any item in net profit accounts for more than 10% of the corresponding item in the consolidated statement

A single investment accounts for more than 10% of the book value of long-term equity investment, and the amount exceeds 1 million yuan, and the investment income from important joint ventures or associates or from joint ventures or associates (losses are calculated in absolute amounts) accounts for

The net profit of the consolidated statement is more than 10%

Important contingencies The amount exceeds 10 million yuan and accounts for more than 10% of the absolute value of the net assets in the consolidated statement

Accounting treatment methods for business combinations under the same control and those not under the same control
Business combination under common control

For a long-term equity investment formed by a business merger under the same control, if the merging party pays cash, transfers non-cash assets or assumes debts as the merger consideration, the share of the book value of the owner's equity of the merged party in the final controlling party's consolidated financial statements on the merger date shall be regarded as the initial investment cost of the long-term equity investment. If the merging party issues equity instruments as the consideration for the merger, the total face value of the shares issued shall be deemed as share capital. The difference between the initial investment cost of a long-term equity investment and the book value of the merger consideration (or 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.

Business combination not under common control

For business combinations not under common control, the combination cost is the sum of the fair value of the assets paid by the purchaser, liabilities incurred or assumed, and equity securities issued by the purchaser to obtain control of the purchased party on the purchase date. The identifiable assets, liabilities and contingent liabilities of the acquiree that meet the recognition conditions and are acquired in a business combination not under common control are measured at fair value on the acquisition date. The difference between the purchaser's cost of merger and the fair value of the acquiree's identifiable net assets acquired in the merger is reflected in the value of goodwill. If the purchaser's merger cost is less than the fair value share of the acquiree's identifiable net assets obtained in the merger, and after review, the difference between the merger cost and the fair value share of the acquiree's identifiable net assets obtained in the merger shall be included in the non-operating income of the current period.

Judgment standards for control and preparation methods of consolidated financial statements
Judgment criteria for control

The scope of consolidation of consolidated financial statements is determined based on control. An invested unit that possesses the following three elements is deemed to control it: having power over the invested unit, enjoying variable returns due to participation in relevant activities of the invested unit, and having the ability to use power over the invested unit to affect the amount of returns.

Preparation method of consolidated financial statements

(1) Unify the accounting policies of the parent company and its subsidiaries, and unify the balance sheet dates and accounting periods of the parent company and subsidiaries

If the accounting policies or accounting periods adopted by a subsidiary and the Company are inconsistent, when preparing consolidated financial statements, necessary adjustments will be made to the financial statements of the subsidiary in accordance with the Company's accounting policies or accounting periods.

(2) Offset matters in consolidated financial statements

The consolidated financial statements are based on the financial statements of the parent company and subsidiaries, and have eliminated internal transactions between the parent company and its subsidiaries, and between subsidiaries. The share of the subsidiary's owners' equity that does not belong to the company, as minority shareholders' equity, is listed as "minority shareholders' equity" under the shareholders' equity item in the consolidated balance sheet. Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Listed items. The subsidiary's long-term equity investment held by the parent company is regarded as the parent company's treasury stock. As a deduction from shareholders' equity, it is listed as "less: treasury shares" under the shareholder equity item in the consolidated balance sheet.

(3) Accounting treatment of subsidiaries acquired through merger

For subsidiaries acquired through business combinations under common control, the business combination will be deemed to have occurred when the ultimate controlling party began to exercise control, and its assets, liabilities, operating results and cash flows will be included in the consolidated financial statements from the beginning of the current period of merger; for subsidiaries acquired through business combinations not under common control, when preparing consolidated financial statements, their individual financial statements will be adjusted based on the fair value of the identifiable net assets on the acquisition date.

(4) Accounting treatment for disposal of subsidiaries

If a long-term equity investment in a subsidiary is partially disposed of without losing control, in the consolidated financial statements, the difference between the disposal price and the share of the subsidiary's net assets continuously calculated from the date of purchase or merger will be adjusted to the capital reserve. If the capital reserve is insufficient for offset, the retained earnings will be adjusted. If control over the investee is lost due to disposal of part of the equity investment or other reasons, when preparing consolidated financial statements, the remaining equity shall be 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 or merger based on the original shareholding ratio, shall be included in the investment income for the period when control is lost, and goodwill shall be offset at the same time. Other comprehensive income related to the equity investment in the original subsidiary will be converted into current investment income when control is lost.

Classification of joint arrangements and accounting treatment of joint operations
Classification of joint arrangements

Joint arrangements are divided into joint operations and joint ventures. Joint arrangements that are not reached through separate entities are classified as joint operations. An independent entity refers to an entity with a separately identifiable financial structure, including independent legal entities and entities that do not have legal entity qualifications but are recognized by law. Joint arrangements entered into between separate entities are generally classified as joint ventures. If changes in relevant facts and circumstances lead to changes in the rights and obligations of a joint venture party in the joint venture arrangement, the joint venture party shall reassess the classification of the joint venture arrangement.

Accounting treatment of joint operations

As a joint operating participant, the company recognizes the following items related to the interest share in the joint operation, and performs accounting treatments in accordance with the relevant accounting standards for enterprises: recognizes assets or liabilities held individually, and recognizes jointly held assets or liabilities based on shares; recognizes income generated from the sale of the share of joint operation output; recognizes income generated by joint operations from the sale of output based on shares; recognizes expenses incurred individually, and recognizes expenses incurred in joint operations based on shares. The Company is a participant that does not enjoy joint control over the joint operation. If it owns the assets related to the joint operation and assumes the liabilities related to the joint operation, the accounting treatment shall be carried out in accordance with the provisions of the joint operation participants; otherwise, the accounting treatment shall be carried out in accordance with the provisions of the relevant accounting standards for enterprises.

Accounting treatment of joint ventures

The Company is a party to a joint venture and accounts for investments in joint ventures in accordance with the "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment"; the Company is a non-joint party and accounts for investments based on the degree of influence on the joint venture.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Determination standards for cash and cash equivalents

The cash determined when the company prepares the cash flow statement refers to cash on hand and deposits that can be used for payment at any time. The cash equivalents determined when preparing the cash flow statement refer to investments held with short term, strong liquidity, easy to convert into known amounts of cash, and with little risk of value changes.

Foreign currency business and foreign currency statement conversion
Foreign currency business conversion

The Company's foreign currency transactions are recorded in the functional currency using the spot exchange rate on the date of the transaction. Foreign currency monetary items on the balance sheet date are converted at the spot exchange rate on the balance sheet date. The exchange differences arising from the difference between the spot exchange rate on that day and the spot exchange rate on initial recognition or on the previous balance sheet date are included in the current profit and loss, except for the exchange differences on special foreign currency borrowings that meet the capitalization conditions, which are capitalized and included in the cost of related assets during the capitalization period. Foreign currency non-monetary items measured at historical cost are still converted using the spot exchange rate on the date of the transaction, and their recording currency amount does not change. 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.

Translation of foreign currency financial statements

If the Company's subsidiaries, joint ventures, associates, etc. use a different recording currency than the Company, their foreign currency financial statements must be converted before accounting and preparation of consolidated financial statements. The asset and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date. Owner's equity items, except for the "undistributed profits" items, are translated using the spot exchange rate at the time of occurrence. Income and expense items in the income statement are translated using the approximate exchange rate of the spot exchange rate on the date of transaction. The translation differences of foreign currency financial statements arising from the translation are listed under other comprehensive income under the owner's equity item in the balance sheet. Foreign currency cash flows are converted at an exchange rate determined by a systematic and reasonable method that is close to the spot exchange rate on the date when the cash flow occurs. The impact of exchange rate changes on cash is presented separately in the cash flow statement. When an overseas operation is disposed of, the translation difference of foreign currency statements related to the overseas operation shall be transferred to the current profit and loss of the disposal in full or in proportion to the disposal of the overseas operation.

Financial instruments
Classification, recognition and measurement of financial instruments

(1) Financial assets

Based on the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the Company divides financial assets into the following three categories:

①Financial assets measured at amortized cost. The business model for managing such financial assets is aimed at collecting contractual cash flows, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangement, that is, the cash flows generated on a specific date are only payments of principal and interest based on the outstanding principal amount. Interest income from such financial assets is subsequently recognized in accordance with the effective interest rate method.

② Financial assets measured at fair value with changes included in other comprehensive income. The business model for managing such financial assets aims at both collecting contractual cash flows and selling the financial assets, and the contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements. Such financial assets will subsequently be measured at fair value. Full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd.

The amount is recorded in other comprehensive income, but the interest income, impairment losses or gains and exchange gains and losses calculated according to the effective interest rate method are included in the current profit and loss. ③ Measured at fair value and its changes are included in the current profit and loss. Financial assets held that are not divided into those measured at amortized cost and those measured at fair value and whose changes are included in other comprehensive income are measured at fair value, and the gains or losses (including interest and dividend income) generated are included in the current profit and loss. At initial recognition, a financial asset can be irrevocably designated as a financial asset at fair value through profit or loss if the accounting mismatch can be eliminated or reduced. This designation, once made, cannot be revoked.

For investments in non-trading equity instruments, the Company may irrevocably designate them as financial assets at fair value through other comprehensive income upon initial recognition. This designation is made on an individual investment basis and the underlying investment meets the definition of an equity instrument from the issuer's perspective. This type of financial assets is subsequently measured at fair value. Except for the dividends received (except for the recovery part of investment costs), which are included in the current profit and loss, other related gains and losses are included in other comprehensive income and are not subsequently transferred to the current profit and loss.

(2) Financial liabilities

Financial liabilities are classified as: upon initial recognition:

① Financial liabilities measured at fair value with changes included in current profits and losses. Such financial liabilities are subsequently measured at fair value, and the resulting gains or losses are included in the current profits and losses.

② The transfer of financial assets does not meet the conditions for derecognition or the financial liabilities formed by continuing to be involved in the transferred financial assets.

③Financial guarantee contracts that do not fall into the aforementioned situations, and loan commitments that do not fall into the first situation for loans at lower than market interest rates. This type of liability is subsequently measured based on the higher of the loss provision amount determined in accordance with the impairment principle of financial instruments and the initial recognition amount minus the accumulated amortization amount determined by the relevant provisions of "Accounting Standards for Business Enterprises No. 14 - Revenue".

④Financial liabilities measured at amortized cost. This type of financial liabilities is measured at amortized cost using the effective interest method.

Recognition method of fair value of financial instruments

For financial instruments with an active market, the fair value is determined based on the quoted price in the active market; if there is no active market, valuation techniques are used to determine the fair value. In limited circumstances, if there is insufficient recent information to determine fair value, or if there is a wide range of possible estimates of fair value, and the cost represents the best estimate of fair value within that range, the cost may represent an appropriate estimate of fair value within that range. The Company uses all information about the investee's performance and operations that becomes available after the initial recognition date to determine whether the cost represents fair value.

Derecognition of financial instruments

If a financial asset meets one of the following conditions, it will be derecognized: (1) The contractual right to receive cash flows from the financial asset terminates; (2) The financial asset has been transferred and meets the conditions for derecognition.

If the current obligation of a financial liability is discharged in whole or in part, the portion that has been discharged shall be derecognised. If an existing liability is replaced by another financial liability with substantially different terms from the same creditor, or the terms of an existing liability are substantially modified, the existing financial liability will be derecognised and a new financial liability will be recognized at the same time. Buying and selling financial assets in a regular manner is recognized and derecognized based on transaction date accounting.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Determination method and accounting treatment method of expected credit loss

(1) Scope of expected credit losses

Based on expected credit losses, the Company performs impairment accounting and recognizes bad debt provisions for financial assets measured at amortized cost (including receivables, including notes receivable and accounts receivable), receivable financing, lease receivables, other receivables, loan commitments made by the Company other than financial liabilities classified as measured at fair value with changes included in current profits and losses, and financial guarantee contracts that are not measured at fair value with changes included in current profits and losses.

(2) Method for determining expected credit losses

The general method of expected credit losses means that the company evaluates on each balance sheet date whether the credit risk of relevant financial instruments has increased significantly since the initial recognition, and divides the process of credit impairment of financial instruments into three stages. For the impairment of financial instruments at different stages, the Different accounting treatment methods: ① In the first stage, if the credit risk of a financial instrument has not increased significantly since the initial recognition, the company measures the loss provision based on the expected credit losses of the financial instrument in the next 12 months, and calculates the loss provision based on its book balance (that is, before deducting impairment provisions) and actual Interest income is calculated based on the international interest rate; ② In the second stage, if the credit risk of a financial instrument has increased significantly since the initial recognition but no credit impairment has occurred, the company measures the loss provision based on the expected credit losses throughout the entire duration of the financial instrument, and calculates the loss provision based on its book balance and actual interest rate. Calculate interest income; ③ In the third stage, if credit impairment occurs after initial recognition, the company measures loss provisions based on the expected credit losses throughout the entire duration of the financial instrument, and calculates interest income based on its amortized cost (book balance minus impairment provisions made) and the actual interest rate.

A simplified approach to expected credit losses that always measures loss reserves in an amount equivalent to lifetime expected credit losses.

(3) Accounting treatment method of expected credit losses

In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the company re-measures expected credit losses on each balance sheet date. The resulting increase or reversal of loss provisions shall be included in current profits and losses as impairment losses or gains, and shall be deducted from the book value of the financial assets listed in the balance sheet or included in estimated liabilities (loan commitments or financial guarantee contracts), depending on the type of financial instrument.

(4) Method of measuring bad debt provisions for accounts receivable and lease receivables

① Accounts receivable that do not contain significant financing components. For receivables that do not contain significant financing components and are formed by transactions regulated by "Accounting Standards for Business Enterprises No. 14 - Revenue", the Company adopts a simplified method, that is, it always measures loss provisions based on expected credit losses throughout the duration.

ⅠCategories and basis for determination of bad debt provisions based on combinations of credit risk characteristics

The Company divides notes receivable and accounts receivable into several combinations based on credit risk characteristics for accounts receivable other than those identified individually, and calculates expected credit losses on the basis of the combinations. The basis for determining combinations is as follows:

Notes receivable are combined according to credit risk characteristics:

Combination Category Determination Basis

Portfolio 1: Bank acceptance bill and international letter of credit Bank with smaller credit risk of the acceptor

Portfolio 2: Commercial Acceptance Bill Enterprises with higher credit risk of the acceptor

Accounts receivable are combined according to credit risk characteristics:

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Combination Category Determination Basis

Portfolio 1: A portfolio that uses the aging of accounts receivable as the credit risk characteristic. Determine based on the aging of the accounts.

Combination 2: Related party combinations included in the scope of consolidated statements Determined based on the nature of the customer

For notes receivable divided into portfolios, expected credit losses are calculated by referring to historical credit loss experience, combined with current conditions and predictions of future economic conditions, and through default risk exposure and expected credit loss rate throughout the duration.

For accounts receivable divided into portfolios, refer to historical credit loss experience, combined with current conditions and predictions of future economic conditions, prepare a comparison table between accounts receivable and the expected credit loss rate for the entire duration, and calculate expected credit losses.

ⅡAccount aging calculation method based on aging confirmation of credit risk characteristics combination

For the aging calculation method based on the combination of aging confirmation credit risk characteristics, the date of occurrence of customer receivables is used as the starting point for calculating aging. For customers with multiple businesses, the calculation of aging is based on the corresponding occurrence date of each business as the age occurrence date to calculate the final recovery time of the aged accounts. ⅢAccording to the judgment standard for single provision for bad debts

The company makes individual identifications of receivables and makes provision for bad debts, and makes full provision for bad debts for accounts receivable that are aged more than 3 years and for which the customer is assessed to have no repayment ability.

Ⅳ Comparison table of the aging of accounts receivable-aging portfolio and the expected credit loss rate throughout the duration

Expected credit losses of accounts receivable Notes receivable - commercial acceptance bills Expected credit losses of other receivables Aging

Rate (%) (%) Failure rate (%) Within 1 year (including 1 year) 5.00 5.00 5.00 1 to 2 years 10.00 10.00 10.00 2 to 3 years 20.00 20.00 20.00 3 to 4 years 50.00 50.00 50.00 4 to 5 years 80.00 80.00 80.00

More than 5 years 100.00 100.00 100.00

② Accounts receivable and lease receivables containing significant financing components.

For receivables and lease receivables that contain significant financing components, loss provisions are measured according to the general method, that is, the "three-stage" model. The aging calculation method and individual accrual judgment standards for credit risk characteristic combinations, credit risk characteristic combinations based on aging confirmation are consistent with the identification standards excluding financing components.

(5) Methods of measuring loss provisions for other financial assets

For financial assets other than the above, such as: debt investments, other debt investments, other receivables, long-term receivables other than lease receivables, loan commitments and financial guarantee contracts, loss provisions are measured according to the general method, that is, the "three-stage" model.

When measuring credit impairment on financial instruments, the Company considers the following factors when assessing whether credit risk has increased significantly:

①Categories and basis for determination of bad debt provisions based on combinations of credit risk characteristics

The company divides other receivables into several combinations of credit risk characteristics based on the nature of the payments, and calculates expected credit losses on the basis of the combinations. The basis for determining the combinations is as follows:

Portfolio category Determination basis Portfolio 1: Related party accounts Portfolio 2 based on the nature of customers: Non-related party portfolio with impairment provisions based on expected loss rate Determined based on account aging

②Account aging calculation method based on aging confirmation of credit risk characteristics combination

Reference is made to the description of receivables that do not contain a significant financing component.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

③According to the judgment standards for single provision of bad debt provisions

Reference is made to the description of receivables that do not contain a significant financing component.

Notes receivable

For details, please refer to “11. Financial Instruments” in “V. Important Accounting Policies and Accounting Estimates” of this section.

Accounts receivable

For details, please refer to “11. Financial Instruments” in “V. Important Accounting Policies and Accounting Estimates” of this section.

Accounts receivable financing

For details, please refer to “11. Financial Instruments” in “V. Important Accounting Policies and Accounting Estimates” of this section.

Other receivables

For details, please refer to “11. Financial Instruments” in “V. Important Accounting Policies and Accounting Estimates” of this section.

Contract assets

The Company presents the right to receive consideration for goods or services that have been transferred to the customer (and that right is dependent on factors other than the passage of time) as a contract asset. The provision for impairment of contract assets refers to the method for determining expected credit losses in the note. Contract assets are divided into the following combinations based on credit risk characteristics:

Portfolio Category Determination Basis Combination 1: Contract Warranty Determined Based on Aging

Inventory
Classification of inventory

Inventories refer to the finished products or commodities held by the company for sale in daily activities, products in progress during the production process, materials and materials consumed in the production process or the provision of labor services, etc., mainly including raw materials, turnover materials (packaging, low-value consumables, etc.), products in progress, finished products (inventory goods), shipped goods, etc.

Pricing method for issued inventory

When the inventory is shipped, the weighted average method is used to determine the actual cost of the shipment.

Inventory inventory system

The inventory inventory system is a perpetual inventory system.

Amortization method for low-value consumables and packaging materials

Low-value consumables and packaging are amortized using the one-time write-off method.

Recognition standards and accrual methods for inventory depreciation provisions

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the net realizable value of the current period is lower than cost, inventory depreciation reserves are withdrawn and inventory depreciation reserves are accrued on a single inventory item. However, for inventory with a large quantity and low unit price, inventory depreciation reserves are accrued according to the inventory category. 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 reserves can be collectively accrued. If the factors that previously caused the inventory value to be written down have disappeared, the inventory devaluation provision shall be reversed within the amount originally accrued.

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. (1) Provision for inventory depreciation according to combination category

The net realizable value is determined by the estimated selling price minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.

(2) Calculation method and basis for determining net realizable value of inventory based on inventory age

The net realizable value is determined by the estimated selling price minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.

Assets held for sale
Recognition standards and accounting treatment methods for non-current assets or disposal groups classified as held for sale

If the company mainly recovers its book value by selling rather than continuing to use a non-current asset or disposal group, it is classified as held for sale and meets the following conditions: First, according to the practice of selling such assets or disposal groups in similar transactions, it can be sold immediately under the current situation; second, the sale is very likely to occur, that is, the enterprise has made a resolution on a sales plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year. If relevant regulations require the approval of the relevant authority or regulatory department of the enterprise before it can be sold, the approval must have been obtained.

When initially measuring or re-measuring a non-current asset or disposal group held for sale on the balance sheet date, if its book value is higher than the net amount of fair value minus selling expenses, the book value should be written down to the net amount of fair value minus selling expenses. The amount of the write-down is recognized as an asset impairment loss and included in the current profit and loss, and an impairment provision for assets held for sale is made at the same time.

For the amount of asset impairment loss recognized by a disposal group held for sale, the book value of the goodwill in the disposal group should first be deducted, and then the book value of the non-current assets should be deducted proportionally based on the proportion of the book value of each non-current asset measured in the applicable "Accounting Standards for Business Enterprises - Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations" applicable to the disposal group.

Recognition standards and presentation methods for discontinued operations

A discontinued operation is an individually distinguishable component that meets one of the following conditions, and the component has been disposed of by the Company or classified as held for sale by the Company: the component represents an independent main business or a separate main operating area; the component is part of an associated plan to dispose of an independent main business or a separate main operating area; the component is a subsidiary acquired specifically for resale.

The company separately lists the profit and loss from continuing operations and the profit and loss from discontinued operations in the income statement. Impairment losses and reversal amounts from discontinued operations and other operating profits and losses as well as disposal gains and losses are presented as profits and losses from discontinued operations. Disclose in the notes the income, expenses, total profits, income tax expenses (income) and net profit from discontinued operations, the impairment losses and reversal amounts recognized for assets or disposal groups from discontinued operations, the total disposal gains and losses from discontinued operations, income tax expenses (income) and net disposal gains and losses, the net cash flows from operating activities, investing activities and financing activities from discontinued operations, the profits and losses from continuing operations and the profits and losses from discontinued operations attributable to the owners of the parent company.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Debt investment

Not applicable

Other debt investments

Not applicable

Long-term receivables

Not applicable

Long-term equity investment
Judgment criteria for joint control and significant influence

Joint control means that activities that have a significant impact on the returns of an arrangement must be decided only with the unanimous consent of the parties sharing control rights, including the sale and purchase of goods or services, the management of financial assets, the purchase and disposal of assets, research and development activities, and financing activities, etc. Significant influence refers to having a significant influence when holding more than 20% to 50% of the voting capital of the invested unit, or having a significant influence even though it is less than 20% but meeting one of the following conditions: having representatives on the invested unit's board of directors or similar authority; participating in the policy-making process of the invested unit; dispatching management personnel to the invested unit; the invested unit relying on the technology or technical information of the investing company; and important transactions occurring with the invested unit.

Determination of initial investment cost

For long-term equity investments obtained through a business merger, if it is a business merger under the same control, the share of the book value of the owner's equity of the merged party in the consolidated financial statements of the ultimate controlling party shall be used as the initial investment cost of the long-term equity investment on the merger date; for business mergers not under the same control, the merger cost determined on the purchase date shall be used as the initial investment cost of the long-term equity investment; long-term equity investments obtained by paying cash , the initial investment cost is the actual purchase price paid; for long-term equity investments obtained through the issuance of equity securities, the initial investment cost is the fair value of the equity securities issued; for long-term equity investments obtained through debt restructuring, the initial investment cost is determined in accordance with the relevant provisions of the Debt Reorganization Guidelines; for long-term equity investments obtained through the exchange of non-monetary assets, the initial investment cost is determined in accordance with the relevant provisions of the Non-monetary Asset Exchange Guidelines.

Subsequent measurement and profit and loss recognition methods

The Company adopts the cost method to account for long-term equity investments that it is able to control over the invested entities, and adopts the equity method to account for long-term equity investments in associates and joint ventures. For equity investments in associated enterprises, part of which is indirectly held through venture capital institutions, mutual funds, trust companies or similar entities including investment-linked insurance funds, regardless of whether the above entities have a significant impact on this part of the investment, it shall be handled in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", and the remaining part shall be accounted for using the equity method.

Investment real estate

Investment real estate measurement model

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Cost method measurement

Depreciation or amortization method

The company's investment real estate categories include leased land use rights, leased buildings, and land use rights held and prepared to be transferred after appreciation. Investment real estate is initially measured based on cost and subsequently measured using the cost model.

The leased buildings in the Company's investment real estate use the straight-line method to calculate depreciation, and the specific accounting policy is the same as that for fixed assets. Land use rights leased in investment real estate and land use rights held and prepared to be transferred after appreciation are amortized using the straight-line method. The specific accounting policies are the same as those for intangible assets.

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. It shall be recognized when the following conditions are met at the same time: the economic benefits related to the fixed asset are likely to flow into the enterprise; the cost of the fixed asset can be measured reliably.

(2) Depreciation method

Category Depreciation method Depreciation period Residual value rate Annual depreciation rate Houses and buildings Year-averaged method 10-20 5.00 4.75-9.5

Machinery and equipment Average age method 5-10 5.00 9.5-19

Electronic equipment Average age method 3 5.00 31.67

Transportation equipment average age method 4 5.00 23.75

Tools and office equipment Average age method 5 5.00 19

The company's fixed assets are mainly divided into: houses and buildings, machinery and equipment, electronic equipment, transportation equipment, tools and office equipment; the depreciation method adopts the straight-line method. According to the nature and usage of various types of fixed assets, the service life and estimated net residual value of fixed assets are determined. At the end of the year, the service life, estimated net residual value and depreciation method of fixed assets are reviewed. If there are differences from the original estimates, corresponding adjustments are made. Except for fixed assets that have been fully depreciated and are still in use and land that is separately valued and accounted for, all fixed assets are depreciated.

Projects under construction

The company's projects under construction are mainly constructed through outsourcing. The standard and time point for the transfer of projects under construction into fixed assets shall be based on the fact that the projects under construction have reached the intended usable state. The criteria for judging the intended usable state should meet one of the following conditions: the physical construction (including installation) of the fixed assets has been completed or substantially completed; trial production or trial operation has been carried out, and the results show that the assets can operate normally or can stably produce qualified products, or the trial operation results show that they can operate normally or do business; the amount of expenditures on the fixed assets constructed is very small or almost no longer occurs; the fixed assets purchased and constructed have met the design or contract requirements, or are basically consistent with the design or contract requirements.

Borrowing costs
Recognition principles for capitalization of borrowing costs

If the borrowing costs incurred by the company can be directly attributed to the purchase, construction or production of assets that meet the capitalization conditions, they will be capitalized and included in the cost of the relevant assets; the full text of the 2025 Annual Report of Hubei Tongyong Pharmaceutical Co., Ltd.

Other borrowing costs are recognized as expenses based on the amount incurred when incurred and included in the current profits and losses. Assets that meet the conditions 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.

Calculation method of capitalization amount

The capitalization period refers to the period from the point when capitalization of borrowing costs begins to the point when capitalization stops. The period during which capitalization of borrowing costs is suspended is not included. If an abnormal interruption occurs during the purchase, construction or production process and the interruption lasts for more than 3 months, the capitalization of borrowing costs shall be suspended.

Borrowing of special borrowings shall be determined based on the actual interest expense of the special borrowings in the current period, minus the interest income obtained from depositing unused borrowed funds in the bank or the investment income obtained from temporary investments; the amount of general borrowings shall be determined based on the excess of accumulated asset expenditures over the special borrowings. The weighted average of asset expenditures is calculated and determined by multiplying the capitalization rate of the general borrowings occupied, and the capitalization rate is the weighted average interest rate of the general borrowings; if there is a discount or premium on the borrowing, the amount of discount or premium that should be amortized in each accounting period is determined according to the actual interest rate method, and the interest amount of each period is adjusted.

The effective interest rate method is a method of calculating the amortized discount or premium or interest expense based on the actual interest rate of the borrowed money. The actual interest rate is the future cash flow of the loan during the expected duration, and is the interest rate used to discount the current book value of the loan.

Biological assets

Not applicable

Oil and gas assets

Not applicable

Intangible assets

(1) Useful life and its basis for determination, estimation, amortization method or review procedure

Valuation method of intangible assets

The Company's intangible assets are initially measured at cost. The actual cost of purchased intangible assets is based on the actual price paid and related expenditures. The actual cost of intangible assets invested by investors shall be determined based on the value stipulated in the investment contract or agreement. However, if the value stipulated in the contract or agreement is unfair, the actual cost shall be determined based on the fair value. For self-developed intangible assets, the cost is the total expenditure incurred before reaching the intended use.

Useful life and its basis for determination, estimation, amortization method or review procedure

Intangible assets with limited service life are amortized as shown in the table below. At the end of the year, the service life and amortization method of the intangible assets are reviewed. If there are differences with the original estimates, corresponding adjustments are made. Intangible assets with indefinite service life are not amortized, but at the end of the year, the service life is reviewed. When there is conclusive evidence that its service life is limited, its service life is estimated.

The useful life of an intangible asset with a limited useful life and its determination basis and amortization method:

Asset category Service life (years) Basis for determination of service life Amortization method Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Land use rights 50 Legal useful life Straight-line method

The company will determine the intangible assets that cannot foresee the period during which the assets will bring economic benefits to the company, or whose useful life is uncertain, as intangible assets with indefinite useful lives. The basis for judging the uncertain service life is: it comes from contractual rights or other legal rights, but there is no clear service life in the contract or legal provisions; based on the situation in the same industry or the argumentation of relevant experts, it is still impossible to judge the period during which the intangible assets can bring economic benefits to the company.

At the end of each year, the service life of intangible assets with indefinite service life is reviewed, mainly in a bottom-up manner, with the relevant departments for the use of intangible assets conducting a basic review to evaluate whether there are changes in the basis for determining the indefinite service life, etc.

(2) Scope of aggregation of R&D expenditures and related accounting treatment methods

The scope of the company's R&D expenditures is mainly determined based on the company's research and development projects, which mainly include: employee salaries of R&D personnel, materials and fuel power, depreciation expenses and amortization expenses, entrusted external research and development expenses (new technology development expenses), other expenses, etc.

Expenditures in the research phase of internal research and development projects are included in the current profit and loss when incurred; expenditures in the development phase that meet the conditions for recognition as intangible assets are transferred to intangible assets accounting.

Specific criteria for dividing the research stage and development stage of internal research and development projects: ① The company will treat the preparation of materials and related aspects for further development activities as the research stage. Expenditures in the research stage of intangible assets will be included in the current profit and loss when incurred. ② Development activities carried out after the company has completed the research phase are regarded as the development phase.

Impairment of long-term assets

If there are signs of impairment on the balance sheet date for long-term equity investments, investment real estate, fixed assets, projects under construction, right-of-use assets measured using the cost model, productive biological assets measured using the cost model, oil and gas assets, intangible assets and other long-term assets on the balance sheet date, an impairment test is conducted. 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. 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.

Goodwill that is presented separately in the financial statements shall be tested for impairment at least annually, regardless of whether there is any indication of impairment. During impairment testing, the book value of goodwill is allocated to asset groups or combinations of asset groups that are expected to benefit from the synergies of a 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.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Long-term deferred expenses

The company's long-term deferred expenses refer to various expenses that have been incurred but have a benefit period of more than one year (excluding one year). Long-term deferred expenses are amortized in installments according to the benefit period of the expense item. If a long-term deferred expense item cannot benefit future accounting periods, all the amortized value of the item that has not been amortized will be transferred to the current profit and loss.

Contract liabilities

The Company lists the obligation to transfer goods or provide services to customers for consideration received or receivable from customers as contract liabilities, and contract assets and contract liabilities under the same contract are presented as a net amount.

Employee compensation

(1) Accounting treatment method for short-term compensation

During the accounting period when employees provide services to the company, the actual short-term compensation is recognized as a liability and included in the current profit and loss, except where the accounting standards for enterprises require or allow it to be included in the cost of assets. The employee welfare expenses incurred by the company shall be included in the current profit and loss or related asset costs according to the actual amount when they are actually incurred. If employee benefits are non-monetary benefits, they are measured at fair value. The company pays social insurance premiums such as medical insurance premiums, work-related injury insurance premiums, maternity insurance premiums, and housing provident funds for its employees, as well as labor union funds and employee education funds withdrawn in accordance with regulations. During the accounting period when employees provide services, the corresponding amount of employee compensation is determined based on the prescribed accrual basis and accrual ratio, and the corresponding liabilities are recognized and included in the current profit and loss or related asset costs.

(2) Accounting treatment of post-employment benefits

During the accounting period when employees provide services, the company recognizes the deposit amount payable based on the defined contribution plan as a liability and includes it in the current profit and loss or related asset costs. According to the formula determined by the expected cumulative welfare unit method, the welfare obligations generated by the defined benefit plan are attributed to the period during which the employees provide services, and are included in the current profit and loss or related asset costs.

(3) Accounting treatment method for dismissal benefits

When the company provides dismissal benefits to employees, the employee compensation liabilities arising from the dismissal benefits are recognized at the earliest of the following two times and included in the current profit and loss: when the company cannot unilaterally withdraw the dismissal benefits provided due to the termination of labor relations plan or layoff proposal; when the company recognizes the costs or expenses related to the restructuring involving the payment of dismissal benefits.

(4) Accounting treatment methods for other long-term employee benefits

Other long-term employee benefits provided by the company to employees that meet the conditions of the defined contribution plan shall be handled in accordance with the relevant provisions of the defined contribution plan; in addition, other long-term employee benefits net liabilities or net assets shall be recognized and measured in accordance with the relevant provisions of the defined benefit plan.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Estimated liabilities

When the obligation related to a contingency is a current obligation borne by the company, and the performance of the obligation is likely to result in an outflow of economic benefits, and the amount can be measured reliably, the obligation is recognized as a provisional liability. The company makes initial measurement based on the best estimate of the expenditures required to fulfill relevant current obligations. If the required expenditures exist in a continuous range and the likelihood of various outcomes within the range is the same, the best estimate is determined based on the mid-range value within the range; if multiple projects are involved, the best estimate is determined based on various possible outcomes and related probabilities.

The book value of estimated liabilities should be reviewed on the balance sheet date. If there is conclusive evidence that the book value cannot truly reflect the current best estimate, the book value should be adjusted based on the current best estimate.

Share-based payment

The Company's share-based payment includes equity-settled share-based payment and cash-settled share-based payment. If equity-settled share-based payment is exchanged for services provided by employees, it shall be measured at the fair value of the equity instruments granted to employees. If there is an active market, it will be determined based on the quoted price in the active market; if there is no active market, it will be determined using valuation techniques, including referring to prices used in recent market transactions by parties who are familiar with the situation and voluntarily transacting, referring to the current fair value of other financial instruments that are substantially the same, discounted cash flow methods and option pricing models, etc.

On each balance sheet date, the number of stock options expected to be exercisable is revised based on the latest changes in the number of exercisable persons, the completion of performance indicators and other subsequent information, and the expenses to be allocated in each period are confirmed based on this basis. For option expenses that span multiple accounting periods, the expense can generally be amortized based on the proportion of the length of the waiting period of the option in a certain accounting period to the length of the entire waiting period.

Preferred shares, perpetual bonds and other financial instruments
Division of financial liabilities and equity instruments

Preferred shares, perpetual bonds (such as long-term rights-bearing medium-term notes), stock options, convertible corporate bonds, etc. issued by the company are classified as financial liabilities or equity instruments according to the following principles:

(1) Settlement through delivery of cash, other financial assets or exchange of financial assets or financial liabilities. If the Company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation, the contractual obligation meets the definition of a financial liability.

(2) The situation of settlement through its own equity instruments. If the financial instrument issued must be or can be settled with the company's own equity instruments as a substitute for cash or other financial assets, the instrument is a financial liability of the company; if it is intended to enable the holder of the instrument to enjoy the remaining equity in the company's assets after deducting all liabilities, the instrument is an equity instrument of the company.

(3) For the classification of financial instruments that must or can be settled with the company's own equity instruments in the future, derivatives and non-derivatives should be distinguished. For non-derivative instruments, if the company has no obligation to deliver a variable number of its own equity instruments for settlement in the future, the non-derivative instrument is an equity instrument; otherwise, the non-derivative instrument is a financial liability. For derivatives, if the company can only settle by exchanging a fixed number of its own equity instruments for a fixed amount of cash or other financial assets, the derivative is an equity instrument; if the company can exchange a fixed number of its own equity instruments for a variable amount of cash or other financial assets, or it can be settled by Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

If a variable amount of its own equity instruments is exchanged for a fixed amount of cash or other financial assets, or if a variable amount of its own equity instruments is exchanged for a variable amount of cash or other financial assets when the conversion price is not fixed, the derivatives should be recognized as financial liabilities or financial assets.

Accounting treatment of preference shares and perpetual bonds

The company accounts for financial instruments classified as financial liabilities in the "bonds payable" account. During the existence of the instrument, the accounting treatment of accruing interest and making adjustments to the interest adjustment in the book is carried out in accordance with the provisions of the financial instrument recognition and measurement standards on the subsequent measurement of financial liabilities at amortized cost. The company accounts for the "other equity instruments" account classified as equity instruments, and distributes dividends (including interest generated by instruments classified as equity instruments) during the duration, and treats them as profit distribution.

Income

Disclose accounting policies adopted for revenue recognition and measurement by business type

When the company fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods or services, revenue is recognized based on the transaction price allocated to the performance obligation. Obtaining control over relevant goods means being able to direct the use of the goods and obtain almost all economic benefits from them. Performance obligations refer to the company's commitment in the contract to transfer clearly distinguishable goods to the customer. The transaction price refers to the amount of consideration that the Company expects to be entitled to receive for transferring goods to customers, excluding amounts collected on behalf of third parties and amounts that the Company expects to return to customers.

Whether the performance obligation is performed within a certain period of time or at a certain point in time depends on the terms of the contract and relevant legal provisions. If the performance obligation is performed within a certain period of time, the company recognizes revenue based on the performance progress. Otherwise, the Company recognizes revenue at a point when the customer obtains control of the relevant assets.

The company determines whether the company is the principal responsible person or agent when engaging in transactions based on whether it has control over the goods or services before transferring them to the customer. If the company is able to control the goods or services before transferring them to the customer, the company is the principal responsible person and recognizes revenue based on the total consideration received or receivable; otherwise, the company acts as the agent and recognizes revenue based on the amount of commissions or fees that it is expected to be entitled to receive. The amount is determined based on the net amount of the total consideration received or receivable after deducting the price payable to other related parties, or based on the established commission amount or ratio.

The company is mainly engaged in the sales of core raw materials for steroid drugs and a small amount of technical and testing service income. The sales contract between the company and its customers usually only includes the performance obligation to transfer the goods. Since the control of the transferred goods is transferred when the company delivers the goods to the customer, the customer signs for receipt, or the legal ownership of the goods is transferred to the customer according to the contract, the company will recognize the income of this single performance obligation at the time when the customer's acceptance is completed/the electronic port export date after the corresponding performance obligation is fulfilled. The company's testing services recognize revenue after the service is completed and the results are delivered, as follows:

Sales contract

Contracts for the sale of goods between the Company and its customers generally contain only the performance obligation to transfer the goods. The company usually recognizes revenue based on comprehensive consideration of the following factors: domestic sales are based on the completion of arrival acceptance, and export sales are based on the electronic port export date as the confirmation time: acquisition of the current right to receive payment for the goods, transfer of major risks and rewards of ownership of the goods, transfer of legal ownership of the goods, transfer of physical assets of the goods, and customer acceptance of the goods.

Technology R&D services

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The company's technology research and development services mainly refer to the company providing customers with research and development services in various drug technology development and production processes. According to the contract, the company needs to deliver results according to the research and development progress and has the right to collect payment. On the balance sheet date, the company recognizes the labor service income provided according to the performance progress of the relevant services. The contract performance costs that have occurred and are expected to be compensated are carried forward and included in the current cost, and the labor service income provided in this stage is recognized at the same amount until the contract performance progress can be confirmed.

3.Other services

Other services currently only refer to testing services provided in various aspects of research and development. Such services generally have a short cycle. When the above services are completed, the company will recognize the revenue after delivering the results to the customer in one go, and at the same time carry forward the corresponding costs.

Similar business adopts different business models and involves different revenue recognition methods and measurement methods.

Contract costs

Contract costs include incremental costs incurred to obtain the contract and contract performance costs. The incremental costs incurred to obtain a contract ("contract acquisition costs") are costs that would not have been incurred had the contract not been obtained. If the cost is expected to be recovered, the company will recognize it as the contract acquisition cost and as an asset.

Costs incurred to fulfill the contract, which do not fall within the scope of inventory and other accounting standards for enterprises and meet the following conditions, are recognized as contract performance costs as an asset: the cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the user, and other costs incurred solely because of the contract; the cost increases the resources used to perform performance obligations in the future; the cost is expected to be recovered. The company will recognize the contract performance costs as assets. If the amortization period does not exceed one year or one normal operating cycle at the time of initial recognition, it will be included in the "inventory" item in the balance sheet; if the amortization period is more than one year or one normal operating cycle at the time of initial recognition, it will be included in the "other non-current assets" item in the balance sheet. The company will recognize the contract acquisition costs as assets. If the amortization period does not exceed one year or one normal operating cycle at the time of initial recognition, it will be included in the "other current assets" item in the balance sheet; if the amortization period is more than one year or one normal operating cycle at the time of initial recognition, it will be included in the "other non-current assets" item in the balance sheet.

The Company amortizes the assets recognized as contract acquisition costs and contract performance costs on the same basis as the recognition of commodity revenue related to the assets, and includes them in the current profit and loss. If the amortization period of the assets formed by the incremental cost of acquiring the contract does not exceed one year, it shall be included in the current profit and loss when incurred.

When the book value of assets related to contract costs is higher than the difference between the following two items, the company will make provision for impairment and recognize the excess as asset impairment losses: the remaining consideration expected to be obtained from the transfer of the goods related to the asset; the estimated cost to be incurred for the transfer of the related goods.

If the factors of impairment in the previous period subsequently change, causing the difference between the two aforementioned items to be higher than the book value of the asset, the asset impairment provision that has been originally accrued should be reversed and included in the current profit and loss, but the book value of the asset after the reversal shall not exceed the book value of the asset on the date of reversal if no impairment provision was made.

Government subsidies
Types and accounting treatment of government subsidies

Government subsidies refer to the monetary assets or non-monetary assets that the company obtains from the government for free (but does not include the capital invested by the government as the owner). Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd. with government subsidies

If it 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 related to daily activities shall be included in other income according to the economic business essence. Government subsidies not related to daily activities shall be included in non-operating income. Government documents that clearly stipulate that government subsidies are used to purchase, construct or otherwise form long-term assets are recognized as asset-related government subsidies. If the government documents do not clearly stipulate the subsidy objects, and if they can form long-term assets, the part of the government subsidy corresponding to the asset value shall be regarded as the government subsidy related to the assets, and the remaining part shall be regarded as the government subsidy related to the income; if it is difficult to distinguish, the entire government subsidy shall be regarded as the government subsidy related to the income. Government subsidies related to assets are recognized as deferred income. The amount recognized as deferred income shall be included in the current profit and loss in installments according to a reasonable and systematic method within the useful life of the relevant assets.

Government subsidies other than those related to assets are recognized as government subsidies related to income. If the income-related government subsidies are used to compensate the enterprise for relevant expenses or losses in the future period, they are recognized as deferred income, and are included in the current profit and loss during the period when the relevant expenses are recognized; if they are used to compensate the enterprise for the relevant expenses or losses that have already occurred, they are directly included in the current profits and losses.

The company obtains policy-based preferential loan interest discounts, and the finance department allocates interest-rate discount funds to the lending bank. If the lending bank provides loans to the company at policy-based preferential interest rates, the actual borrowing amount received is used as the entry value of the loan, and the relevant borrowing costs are calculated based on the loan principal and the policy-based preferential interest rate. If the finance department directly allocates interest discount funds to the company, the company will offset the corresponding interest rate discounts against related borrowing costs.

Government subsidy confirmation time

Government subsidies are recognized when the conditions attached to the government subsidies are met and can be received. Government subsidies measured according to the amount receivable shall be recognized at the end of the period when there is conclusive evidence that the relevant conditions stipulated in the financial support policy can be met and the financial support funds are expected to be received. Government subsidies other than those measured according to the amount receivable shall be recognized when the subsidy is actually received.

Deferred income tax assets/deferred income tax liabilities
Recognition of deferred income tax

Based on the difference between the book value of assets and liabilities and their tax basis (if the tax basis of items not recognized as assets and liabilities can be determined in accordance with tax laws, the tax basis is determined as the difference), deferred income tax assets or deferred income tax liabilities are calculated and recognized according to the applicable tax rate during the period when the asset is expected to be recovered or the liability is settled.

Measurement of deferred income tax

Deferred income tax assets are recognized to the extent that it is probable that taxable income will be available against which deductible temporary differences can be utilised. On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future period to offset the deductible temporary differences, deferred income tax assets that have not been recognized in previous accounting periods will be recognized. If it is likely that sufficient taxable income will not be available in the future to offset the deferred income tax assets, the book value of the deferred income tax assets will be reduced. Deferred income tax liabilities are recognized for taxable temporary differences related to investments in subsidiaries and associates, unless the company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not be reversed in the foreseeable future. For deductible temporary differences related to investments in subsidiaries and associates, deferred income tax assets are recognized when the temporary differences are likely to be reversed in the foreseeable future and it is likely to be taxable income that can be used to offset the deductible temporary differences in the future. Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Basis for net offset of deferred income tax

When the following conditions are met at the same time, the company will present the deferred income tax assets and deferred income tax liabilities as the net amount after offsetting: it has the legal right to settle the current income tax assets and current income tax liabilities on a net basis; the deferred income tax assets and deferred income tax liabilities are for the same taxpayer with the same tax collection department. It is related to the income tax levied by the entity or to different taxable entities, but in the future during each period when important deferred income tax assets and deferred income tax liabilities are reversed, the taxable entity involved intends to settle the current income tax assets and current income tax liabilities with a net amount or to obtain assets and pay off debts at the same time.

Leasing

(1) Accounting treatment method for leasing as lessee

Accounting treatment of lessee

On the start date of the lease period, the Company recognizes right-of-use assets and lease liabilities for leases other than short-term leases and low-value asset leases, and recognizes depreciation expenses and interest expenses respectively during the lease period.

(1) Right-of-use assets

On the commencement date of the lease term, the right-of-use asset is initially measured at cost. This cost includes the initial measurement amount of the lease liability, the amount of lease payments net of lease incentives paid on or before the lease commencement date, initial direct costs, etc.

If it is reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease term, depreciation will be accrued over the estimated remaining useful life of the leased asset; if it cannot be reasonably determined, depreciation will be accrued during the shorter of the lease term and the remaining useful life of the leased asset. When the recoverable amount is lower than the book value of the right-of-use asset, its book value is written down to the recoverable amount.

(2) Lease liabilities

Lease liabilities are initially measured based on the present value of the unpaid lease payments at the beginning of the lease term. Lease payments include fixed payments and amounts payable when it is reasonably certain that the option to purchase or the option to terminate the lease will be exercised. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when actually incurred.

The company uses the interest rate implicit in the lease as the discount rate; if the interest rate implicit in the lease cannot be reasonably determined, the company's incremental borrowing rate is used as the discount rate. The interest expense of the lease liability in each period during the lease term is calculated based on a fixed periodic interest rate, that is, the discount rate adopted by the Company or the revised discount rate, and is included in financial expenses.

As a lessee, the judgment basis and accounting treatment method for simplified treatment of short-term leases and low-value asset leases

For short-term leases with a lease period of no more than 12 months, and leases where the value of a single asset when new is less than 5,000 yuan, the company chooses not to recognize right-of-use assets and lease liabilities, and the relevant rental expenses will be included in the current profit and loss or related asset costs according to the straight-line method during each period during the lease period.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(2) Accounting treatment method for leasing as lessor

On the lease commencement date, the Company recognizes leases that transfer substantially all risks and rewards related to the ownership of the leased assets as finance leases, and other leases as operating leases.

(1) Accounting treatment of operating leases

Rental income from operating leases is recognized on a straight-line basis over the lease term. The initial direct costs are capitalized and included in the current income in installments during the lease term on the same recognition basis as rental income. Variable rent that is not included in the lease receipts is included in rental income when it is actually incurred. (2) Accounting treatment of financial leases

On the lease commencement date, the difference between the sum of the finance lease receivable, the unguaranteed residual value and its present value is recognized as unrealized financing income, and is recognized as lease income in each period in which rent is received in the future, and the financial lease assets are derecognized. Initial direct costs are included in the initial recording value of finance lease receivables.

Other important accounting policies and accounting estimates

Not applicable

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

Others

None

6. Taxes

Main tax types and tax rates

Type of tax Tax calculation basis Tax rate

Deduct the taxable sales amount multiplied by the applicable tax rate

Value-added tax 13%, 6%

Calculation of the balance after the input tax allowed to be deducted during the period

Urban maintenance and construction tax Turnover tax payable 7%, 1% Corporate income tax Taxable income 25%, 15%, 8.7% If there are taxpayers with different corporate income tax rates, a description of the disclosure

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Name of tax payer Income tax rate

Hubei Tongyong Pharmaceutical Co., Ltd. 15%

Hubei Tongtong Biotechnology Co., Ltd. 15%

Hubei Tongtong Medical and Health Industry Co., Ltd. 25%

Hubei Huahai Joint Pharmaceutical Co., Ltd. 25%

Hubei Tongtong Steroid Drug Research Institute Co., Ltd. 15%

Hubei Gonggongxin Pharmaceutical Technology Co., Ltd. 25%

Hubei Tongchuang High-end Steroid Innovative Drug Research Institute Co., Ltd. 25%

America AURORA Co.,Ltd 8.7%

Tax incentives
The company was announced by the Office of the National High-tech Enterprise Recognition and Management Leading Group on October 12, 2022. The company obtained the number:

The high-tech enterprise qualification certification of GR202242000254 is valid for three years. The company obtained the high-tech enterprise qualification certification numbered GR202542001137 in 2025. The certification date is December 19, 2025 and is valid for 3 years. The applicable corporate income tax rate for the company during the reporting period is 15%.

Hubei Tongtong Biotechnology Co., Ltd., a wholly-owned subsidiary of the company, obtained a high-tech enterprise qualification certificate numbered GR202342001351 on October 16, 2023, which is valid for three years. Hubei Tongtong Steroid Drug Research Institute Co., Ltd., a wholly-owned subsidiary of the company, has been certified as a high-tech enterprise. The company has obtained a high-tech enterprise qualification certificate numbered GR202342000488, which is valid for three years. The corporate income tax rate applicable to the Company, its subsidiary Hubei Tongyong Biotechnology Co., Ltd. and its subsidiary Hubei Tongyong Steroid Drug Research Institute Co., Ltd. during the reporting period is 15%.

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on the Additional VAT Deduction Policy for Advanced Manufacturing Enterprises" (Finance and Taxation [2023] No. 43), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period to deduct the value-added tax payable. The subsidiary Hubei Tongtong Biotechnology Co., Ltd. enjoys this preferential policy.
According to the "Notice on Clarifying the Preferential Policies for Urban Land Use Tax for High-tech Manufacturing Enterprises" (E Cai Shui Fa [2021] No. 8), from January 1, 2021 to December 31, 2025, the urban land use tax for high-tech manufacturing enterprises in Hubei Province will be levied at 40% of the prescribed tax rate. Hubei Tongyong Pharmaceutical Co., Ltd. enjoys this preferential policy.
Others

None

7. Notes on Consolidated Financial Statement Items

Monetary funds

Unit: Yuan

Item Ending balance Beginning balance

Bank deposits 65,137,377.13 100,122,033.02 Other monetary funds 20,708,568.48 41,059,172.21 Total 85,845,945.61 141,181,205.23 Other notes:

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

[Note 1]: As of December 31, 2025, the company’s other monetary funds include deposits and deposits used for issuing bank acceptance bills, letters of credit, and ETC business.

The total amount of judicial frozen funds is 20,708,568.48 yuan. Among them, the main part of the credit deposit and acceptance deposit is 19,295,352.66 yuan, which was frozen by the judiciary due to sales disputes.

The settled funds are 1,396,937.76 yuan, the ETC margin is 16,000.00 yuan, the securities account funds are 277.43 yuan, others are 278.06 yuan, and the sealed account funds are 0.63 yuan.

[Note 2]: Apart from this, the Company does not have any other funds that have restrictions on use and potential recovery risks due to mortgage, pledge or freeze.

Trading financial assets

Unit: Yuan

Item Ending balance Beginning balance

Measured at fair value with changes included in current profit and loss

1,010.76 1,010.63 beneficial financial assets

Among them:

Total 1,010.76 1,010.63 Other notes: [Note 1]: The trading financial assets in this period are mainly the purchased "1-day quotation standard bonds and Huaxia Huili Currency A" financial products.

Derivative financial assets

None

Notes receivable

(1) Classified presentation of notes receivable

Unit: Yuan

Item Ending balance Beginning balance

Bank acceptance notes 18,545,191.89 15,969,258.05 Total 18,545,191.89 15,969,258.05

(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

its

Medium:

by combination

bad provision

18,545, 18,545, 15,969, 15,969, Account provision 100.00% 100.00%

191.89 191.89 258.05 258.05 receivables

bill

its

Medium:

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Among them:

combination

1: Bank

18,545, 18,545, 15,969, 15,969, acceptance 100.00% 100.00%

191.89 191.89 258.05 258.05 votes and national

international credit

Certificate

18,545, 18,545, 15,969, 15,969, total 100.00% 100.00%

191.89 191.89 258.05 258.05 If the bad debt provision for notes receivable is 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

Among them, the amount of recovery or reversal of bad debt provisions for the current period is important:

□Applicable ☑Not applicable

(4) Notes receivable pledged by the company at the end of the period

□Applicable ☑Not applicable

(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 48,170,469.79 17,152,904.99 Total 48,170,469.79 17,152,904.99

(6) Notes receivable actually written off in the current period

□Applicable ☑Not applicable

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) 151,482,002.32 177,607,003.07 1 to 2 years 11,010,347.94 18,248,696.73 2 to 3 years 11,181,070.00 3,393,501.34 More than 3 years 4,850,962.73 9,821,225.10

3 to 4 years 1,557,492.88 8,413,515.25 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

4 to 5 years 3,270,760.00 22,709.85

More than 5 years 22,709.85 1,385,000.00 Total 178,524,382.99 209,070,426.24

(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

8,996,2 8,996,2 5,925,1 5,925,1

Account preparation 5.04% 100.00% 2.83% 100.00%

09.69 09.69 25.94 25.94

receivables

Accounts

Among them:

by combination

bad provision

169,528 10,178, 159,349 203,145 14,476, 188,668 Account provisions 94.96% 6.00% 97.17% 7.13%

,173.30 295.08 ,878.22 ,300.30 904.22 ,396.08 receivables

Accounts

Among them:

combination

1: respond

Collect money

169,528 10,178, 159,349 203,145 14,476, 188,668 Aging 94.96% 6.00% 97.17% 7.13%

,173.30 295.08 ,878.22 ,300.30 904.22 ,396.08 as letter

risk

characteristic

combination

178,524 19,174, 159,349 209,070 20,402, 188,668Total 100.00% 10.74% 100.00% 9.76%

,382.99 504.77 ,878.22 ,426.24 030.16 ,396.08 Provision for bad debts on an individual basis: 8,996,209.69

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision AMRI Estimated recoverable amount

132,492.88 132,492.88 100.00%

Cedarburg Lower Potential Chenggu Yangbang Biotech Estimated Recovery

143,716.81 143,716.81 100.00%

Technology Co., Ltd. Taizhou Pukang Chemical Co., Ltd. is less likely to recover the expected

8,720,000.00 8,720,000.00 100.00%

Co., Ltd. Lijiang Yinghua Biotech is less likely to recover the expected

2,930,000.00 2,930,000.00 100.00%

Pharmaceutical Co., Ltd. Zhangye Haichuan Biotech Co., Ltd. is expected to recover less than

2,995,125.94 2,995,125.94 100.00%

Technology Co., Ltd. Total lower performance 5,925,125.94 5,925,125.94 8,996,209.69 8,996,209.69

Provision for bad debts on a group basis: 10,178,295.08

Unit: Yuan Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Ending balance

Name

Book balance Bad debt provision Provision ratio

Within 1 year 151,482,002.32 7,574,100.12 5.00% 1 to 2 years 10,866,631.13 1,086,663.11 10.00% 2 to 3 years 7,051,070.00 1,410,214.00 20.00% 3 to 4 years 0.00 0.00 50.00% 4 to 5 years 105,760.00 84,608.00 80.00% More than 5 years 22,709.85 22,709.85 100.00% Total 169,528,173.30 10,178,295.08

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 Opening balance Recovery or transfer Closing balance provision Write-off Others

return

Confirmation based on aging

Credit risk characteristics 14,476,904.22 -2,912,309.14 1,300.00 1,385,000.00 10,178,295.08 Portfolio

Bad provision based on individual items

5,925,125.94 8,996,209.69 5,925,125.94 8,996,209.69Account preparation

Total 20,402,030.16 6,083,900.55 1,300.00 7,310,125.94 19,174,504.77

(4) Accounts receivable actually written off in the current period

Unit: Yuan

Item Write-off Amount

Actual write-off of accounts receivable 7,310,125.94 Among them, the important write-off of accounts receivable:

Unit: Yuan Type of accounts receivable Whether the amount is paid by the relevant unit Name of the write-off amount Reason for write-off The write-off procedures performed

The QLC transaction resulted in Lijiang Yinghua Biopharmaceutical Co., Ltd.

Payment 2,930,000.00 Unrecoverable General manager approval No

company

Zhangye Haichuan Biotechnology Co., Ltd.

Payment 2,995,125.94 Unrecoverable General manager approval No

company

Zhejiang Donghui Pharmaceutical Co., Ltd. Payment 1,385,000.00 Unrecoverable General manager approval No

Total 7,310,125.94

(5) Accounts receivable and contract assets with the top five closing balances collected by debtors

Unit: Yuan accounts receivable and combined Accounts receivable and bad debt quasi-unit name Accounts receivable ending balance Contract assets ending balance Accounts receivable and contracts

Closing balance of same assets Preparation and contract assets minus Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full text

Amount Amount Ratio of total assets at the end of the period Value reserve balance at the end of the period No. 1 28,065,400.00 0.00 28,065,400.00 15.72% 1,403,270.00 No. 2 22,574,920.36 0.00 22,574,920.36 12.65% 1,128,746.02Third place 14,222,000.00 0.00 14,222,000.00 7.97% 1,952,517.00Fourth place 8,720,000.00 0.00 8,720,000.00 4.88% 8,720,000.00 Fifth place 6,585,286.37 0.00 6,585,286.37 3.69% 329,264.32Total 80,167,606.73 0.00 80,167,606.73 44.91% 13,533,797.34

Contract assets

(1) Contract assets

Unit: Yuan Ending balance Beginning balance

Project

Book balance Bad debt provision Book value Book balance Bad debt provision Total book value 0.00

(2) Amount and reasons of major changes in book value during the reporting period

□Applicable ☑Not applicable

(3) 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

Among them:

Provision for bad debts based on the general expected credit loss model

□Applicable ☑Not applicable

(4) Bad debt provisions accrued, recovered or reversed in the current period

□Applicable ☑Not applicable

(5) Contract assets actually written off in the current period

□Applicable ☑Not applicable

Accounts receivable financing

(1) Classified presentation of financing receivables

Unit: Yuan Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Item Closing balance Opening balance Bank acceptance bill with higher credit rating 11,207,056.13 9,623,992.21 Total 11,207,056.13 9,623,992.21 (2) Classified disclosure based on bad debt accrual method

□Applicable ☑Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period

□Applicable ☑Not applicable

(4) Financing of the company’s pledged receivables at the end of the period

□Applicable ☑Not applicable

(5) Financing of receivables 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 □ Applicable ☑ Not applicable

(6) Financing of receivables actually written off in the current period

□Applicable ☑Not applicable

(7) Increases and decreases in receivables financing during the current period and changes in fair value

□Applicable ☑Not applicable

(8) Other instructions

□Applicable ☑Not applicable

Other receivables

Unit: Yuan

Item Closing balance Opening balance Other receivables 3,296,875.94 2,052,867.78 Total 3,296,875.94 2,052,867.78 (1) Interest receivable

Classification of interest receivable

□Applicable ☑Not applicable

Important overdue interest

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Classified disclosure according to bad debt accrual method

□Applicable ☑Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

□Applicable ☑Not applicable

Interest receivable actually written off in the current period

□Applicable ☑Not applicable

(2) Dividends receivable

Classification of dividends receivable

□Applicable ☑Not applicable

Important dividends receivable aged more than 1 year

□Applicable ☑Not applicable

Classified disclosure according to bad debt accrual method

□Applicable ☑Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

□Applicable ☑Not applicable

Dividends receivable actually written off in the current period

□Applicable ☑Not applicable

(3) 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 Deposit and security deposit 1,321,832.00 1,627,732.00 Employee reserve fund 81,739.40 9,268.00 Current accounts 1,171,376.30 76,689.00 Social security and provident fund 598,140.73 499,561.27 Others 407,560.82 281,110.04 Total 3,580,649.25 2,494,360.31 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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) 3,348,758.25 827,432.01 1 to 2 years 82,400.00 47,119.30 2 to 3 years 32,682.00 1,606,809.00 More than 3 years 116,809.00 13,000.00 3 to 4 years 106,809.00

More than 5 years 10,000.00 13,000.00 Total 3,580,649.25 2,494,360.31

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

Among them:

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 41,371.60 323,811.93 76,309.00 441,492.53 Balance on January 1, 2025

In this issue

Provisions for the current period 126,066.31 -283,785.53 -157,719.22 Remainder as of December 31, 2025

167,437.91 40,026.40 76,309.00 283,773.31 amount

Basis for division of each stage and provision ratio for bad debts

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 Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Deposit and security deposit 325,578.20 -224,050.10 101,528.10 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Employee reserve fund 463.40 3,623.57 4,086.97 Others 115,450.93 62,707.31 178,158.24Total 441,492.53 -157,719.22 283,773.31

Other receivables actually written off in the current period

There is no write-off in this period.

Other receivables with the top five closing balances based on debtors

Unit: Yuan accounted for other receivables at the end of the period

Unit name Nature of payment Closing balance Account age Closing balance of bad debt provision

Proportion of total balance

Fengyi Oil Technology Co., Ltd. Deposit 1,160,000.00 Within 1 year 32.40% 58,000.00 Zhu Lijun Advance medical expenses for employees 1,000,000.00 Within 1 year 27.93% 50,000.00 Employees’ personal share of social security Social security 399,630.03 Within 1 year 11.16% 19,981.50 Export shipping premium Shipping premium 324,860.82 Within 1 year 9.07% 16,243.04 Employee provident fund individual responsibility department

Provident fund 198,510.70 Within 1 year 5.54% 9,925.54 points

Total 3,083,001.55 86.10% 154,150.08

Presented in other receivables due to centralized management of funds

□Applicable ☑Not applicable

Advance payment

(1) Prepayments are listed based on aging

Unit: Yuan Ending balance Beginning balance

Aging

Amount Ratio Amount Ratio

Within 1 year 6,789,326.43 96.77% 9,069,149.43 84.59% 1 to 2 years 122,215.80 1.74% 1,601,063.98 14.93% 2 to 3 years 64,674.95 0.92% 14,149.38 0.13% More than 3 years 39,931.27 0.57% 37,249.51 0.35% Total 7,016,148.45 10,721,612.30

Explanation on the reasons why prepayments with an aging of more than 1 year and significant amounts were not settled in a timely manner: None

(2) Prepayments with the top five closing balances by prepayment objects

Unit name Closing balance Proportion (%) of the total closing balance of prepayments No. 1 4,387,826.48 62.54

Second place 433,086.29 6.17

Third place 292,000.00 4.16

Fourth place 240,993.62 3.43

Fifth place 199,757.28 2.85

Total 5,553,663.67 79.15

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Other instructions: none

Inventory

Whether the company needs to comply with the real estate industry’s disclosure requirements

(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 impairment provision

139,563,660. 138,089,493. 111,094,390. 110,491,630. Raw materials 1,474,167.27 602,759.82

54 27 44 62

77,735,456.7 72,858,220.5 59,040,751.7 55,719,971.5 Products in progress 4,877,236.17 3,320,780.26

3 6 7 1

273,412,721. 18,700,194.8 254,712,526. 223,198,849. 10,633,933.8 212,564,915. Inventory goods

54 7 67 45 4 61 Turnover materials 5,080,873.54 5,080,873.54 3,012,550.40 3,012,550.40 Goods shipped 3,086,106.43 70,449.37 3,015,657.06 3,008,173.95 3,008,173.95

498,878,818. 25,122,047.6 473,756,771. 399,354,716. 14,557,473.9 384,797,242.Total

78 8 10 01 2 09

(2) Data resources confirmed as inventory

□Applicable ☑Not applicable

(3) 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 602,759.82 1,028,457.00 157,049.55 1,474,167.27 Work in progress 3,320,780.26 3,636,061.07 2,079,605.16 4,877,236.17

18,700,194.8 Inventory goods 10,633,933.84 15,012,131.83 6,945,870.80

Shipment of goods 70,449.37 70,449.37

25,122,047.6 Total 14,557,473.92 19,747,099.27 9,182,525.51

[Note 1]: For raw materials and work-in-progress used for further processing and production, the net realizable value = the salable amount - the costs that still need to be incurred until completion - the possible sales expenses and related taxes; for the raw materials held for sale, the net realizable value = the salable amount - the possible sales expenses and related taxes.

[Note 2]: For finished products and shipped goods for direct sales, net realizable value = salable amount - possible sales expenses and related taxes.

(4) Explanation that the closing balance of inventory includes the capitalized amount of borrowing costs

□Applicable ☑Not applicable

Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report (5) Explanation of the amortization amount of contract performance costs for the current period □ Applicable ☑ Not applicable

Assets held for sale

□Applicable ☑Not applicable

Non-current assets due within one year

□Applicable ☑Not applicable

(1) Debt investments due within one year

□Applicable ☑Not applicable

(2) Other debt investments due within one year

□Applicable ☑Not applicable

Other current assets

Unit: Yuan

Item Closing balance Opening balance Amount of input tax to be deducted 10,213,706.84 13,188,986.42 Amount of input tax to be certified 1,054,823.25 3,547,492.90 Prepaid income tax 245,313.43 Total 11,268,530.09 16,981,792.75Other instructions: None

Debt investment

(1) Situation of debt investment

□Applicable ☑Not applicable

(2) Important debt investments at the end of the period

□Applicable ☑Not applicable

(3) Provision of impairment provisions

□Applicable ☑Not applicable

(4) Debt investment actually written off in this period

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Other debt investments

(1) Situation of other debt investments

□Applicable ☑Not applicable

(2) Other important debt investments at the end of the period

□Applicable ☑Not applicable

(3) Provision of impairment provisions

□Applicable ☑Not applicable

(4) Other debt investments actually written off in the current period

□Applicable ☑Not applicable

Investment in other equity instruments

□Applicable ☑Not applicable

Long-term receivables

(1) Long-term receivables

□Applicable ☑Not applicable

(2) Classified disclosure according to bad debt accrual method

□Applicable ☑Not applicable

(3) Bad debt provisions accrued, recovered or reversed in the current period □ Applicable ☑ Not applicable

(4) Long-term receivables actually written off in the current period

□Applicable ☑Not applicable

Long-term equity investment

Unit: Beginning of the current period Increase or decrease in the current period End of the period

Impairment Impaired investment balance Provision Equity Other Other Declaration Provision Balance Provision note (Accounting period beginning Additional Decrease method Comprehensive equity issuance Impairment Others (Accounting period end position Face value Balance Investment Investment Recognition Income Change Cash Provision Par value Balance

Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd. (value) investment adjustment (dividend value)

capital loss or profit

profit

1. Joint ventures

2. Joint ventures

Shandong

Tongxin 48,26 - 48,29

1,456 29,43

Pharmaceutical industry 8,996 5,170 4,720

.43 8.66

Limited .23 .40 .92 Company

48,26 - 48,29

1,456 29,43

Subtotal 8,996 5,170 4,720 .43 8.66

.23 .40 .92 48,26 - 48,29

1,456 29,43

Total 8,996 5,170 4,720 .43 8.66

.23 .40 .92 The recoverable amount is determined based on the net amount of fair value minus disposal costs.

□Applicable ☑Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable ☑Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

Other explanations: [Note 1]: The reason for the change in "other equity changes" in the current period's increase and decrease: the associate Shandong Tongxin Pharmaceutical Co., Ltd. accrued special reserves, and the company

The company adjusted the book value of the long-term equity investment of RMB 29,438.66 based on the shareholding ratio and included it in the capital reserve - other capital reserve.

[Note 2]: Reasons for changes in "other" in the current period's increases and decreases: This period's reversal of unrealized internal transactions with the associate Shandong Tongxin Pharmaceutical Co., Ltd. in the previous period

The profit amount is 5,170.40 yuan.

Other non-current financial assets

□Applicable ☑Not applicable

Investment real estate

(1) Investment real estate using cost measurement model

☑Applicable □Not applicable

Unit: Yuan

Projects Houses and buildings Land use rights Construction in progress Total

1. Original book value

Opening balance 3,320,146.97 16,137,696.96 19,457,843.93 2. Increase in the current period

(1) Outsourcing

(2) Inventory\fixed assets\

Transferring projects under construction

(3) Increase in business mergers

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Reduction amount in this period

(1) Disposal

(2) Other transfer-out

Closing balance 3,320,146.97 16,137,696.96 19,457,843.93

2. Accumulated depreciation and accumulated amortization

Opening balance 341,698.50 1,101,592.59 1,443,291.09 2. Increase in the current period 157,707.00 472,332.24 630,039.24

(1) Provision or amortization 157,707.00 472,332.24 630,039.24

Reduction amount in this period

(1) Disposal

(2) Other transfer-out

Closing balance 499,405.50 1,573,924.83 2,073,330.33

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

(2) Other transfer-out

Ending balance

4. Book value

Book value at the end of the period 2,820,741.47 14,563,772.13 17,384,513.60 2. Book value at the beginning of the period 2,978,448.47 15,036,104.37 18,014,552.84 The recoverable amount is determined based on the net amount of fair value minus disposal costs.

□Applicable ☑Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable ☑Not applicable

Reasons for the difference between the above information and the information used in the impairment test of previous years or external information. Reasons for the difference between the information used in the company's impairment test in previous years and the actual situation of the year. Other explanations: None

(2) Investment real estate using fair value measurement model

□Applicable ☑Not applicable

(3) Converted to investment real estate and measured at fair value

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(4) Investment real estate that has not completed the ownership certificate

□Applicable ☑Not applicable

Fixed assets

Unit: Yuan

Item Ending balance Beginning balance

Fixed assets 1,549,043,605.12 1,154,486,627.36 Fixed assets liquidation 195,723.61

Total 1,549,239,328.73 1,154,486,627.36

(1) Fixed assets

Unit: Yuan Tools and Office Equipment

Items Houses and buildings Machinery and equipment Electronic equipment Transport equipment Total

Prepare

1. Original books

Value:

Opening balance 506,332,572. 780,066,197. 10,658,729.6 22,401,856.3 1,329,286,15

9,826,802.89

Amount 71 25 5 0 8.80 2. Increase in this period 295,784,613. 216,990,671. 12,351,622.9 527,221,406.

1,877,165.65 217,331.80

Add amount 62 98 8 03 (1

112,004.59 4,886,840.70 7,920.30 138,570.74 372.65 5,145,708.98) Purchase

295,672,609. 220,469,901. 522,075,697.) Transfer of projects under construction 1,869,245.35 78,761.06 3,985,180.12

03 49 05 in

) Business merger increases

add

(4) Others

(5) Category adjustment -

8,366,070.21

Whole 8,366,070.21

Less for this period 22,511,192.1 25,339,335.1

1,838,093.00 7,920.30 841,014.00 141,115.75

Small amount 3 8 (1 22,511,192.1 25,339,335.1

1,838,093.00 7,920.30 841,014.00 141,115.75

) Disposal or scrap 3 8

Ending balance 800,279,093. 974,545,677. 11,696,048.2 10,035,047.4 34,612,363.5 1,831,168,22 33 10 4 5 3 9.65

2. Accumulated depreciation

Opening balance 40,170,336.5 113,406,642. 172,636,271.

6,099,957.62 7,814,727.93 5,144,606.74

Amount 7 14 00 2. Increase in this period 29,036,989.9 75,704,325.6 113,647,261.

1,639,223.04 1,538,936.07 5,727,786.88

Add amount 7 5 61 (1 29,036,989.9 76,677,873.9 113,647,261.

1,639,223.04 1,538,936.07 4,754,238.56

) Provision 7 7 61 (2) Others

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(3) Category adjustment

-973,548.32 973,548.32

Whole

Less for this period

802,036.81 4,279,939.00 798,963.30 96,439.98 5,977,379.09 Small amount

802,036.81 4,279,939.00 798,963.30 96,439.98 5,977,379.09) Disposal or scrapping

Ending balance 68,405,289.7 184,831,028. 10,775,953.6 280,306,153.

7,739,180.66 8,554,700.70

Amount 3 79 4 52

3. Impairment provision

Balance at the beginning of the period

2,163,260.44 2,163,260.44 amount

2.Increase in this period

Add amount

) accrual

Less for this period

344,789.43 344,789.43 Less amount

343,315.21 343,315.21) Disposal or scrapping

(2) Others 1,474.22 1,474.22 4. Ending balance

1,818,471.01 1,818,471.01 amount

4. Book value

Closing accounts 731,873,803. 787,896,177. 23,836,409.8 1,549,043,60

3,956,867.58 1,480,346.75

Face value 60 30 9 5.12 2. Opening account 466,162,236. 664,496,294. 17,257,249.5 1,154,486,62

3,726,845.27 2,844,001.72

Face value 14 67 6 7.36

(2) Temporarily idle fixed assets

Unit: Yuan

Item Original book value Accumulated depreciation Impairment provision Book value Remarks Machinery and equipment 1,544,361.00 922,451.14 621,909.86

Electronic equipment 8,985.59 8,536.31 449.28

Tools and office equipment 16,871.95 10,674.50 6,197.45

Total 1,570,218.54 941,661.95 628,556.59

(3) Fixed assets leased through operating leases

□Applicable ☑Not applicable

(4) Fixed assets whose property rights certificates have not been obtained

Unit: Yuan

Item Book value Reason for not completing the property rights certificate

Houses and buildings 351,559,163.15 The biological capital raising and conversion of new factories are in process. Houses and buildings 1,207,788.02 After the expansion and renovation of the pharmaceutical industry, it is under planning. Houses and buildings 236,322,753.10 Huahai’s new office buildings and factories have not yet been completed. Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd.

Houses and buildings 489,497.75 After biological expansion and renovation, planning is in progress Total 589,579,202.02

Other notes:

[Note 1] As of December 31, 2025, the original value of fixed assets that have been fully depreciated and are still in use is 49,743,112.49 yuan.

[Note 2] As of December 31, 2025, the original value of fixed assets that have not completed the ownership certificate is 621,070,589.20 yuan, and the book value is 589,579,202.02 yuan. [Note 3] The original value of fixed assets under mortgage guarantee as of December 31, 2025 is 48,390,411.26 yuan.

[Note 4] The amount transferred from construction in progress in this period includes the amount of equipment purchased and installed in this period.

(5) Impairment testing of fixed assets

☑Applicable □Not applicable

The recoverable amount is determined as the net amount after fair value minus disposal costs.

☑Applicable □Not applicable

Unit: Yuan fair value and disposal

Determination of key parameters: Book value, Recoverable amount, Impairment amount, Determination of purchase expenses, Basis method for determining key parameters

According to the residual value amount

Machinery and equipment

2,171,115.25 352,644.24 1,818,471.01 and estimated disposal fees

Other equipment

Use OK

Total 2,171,115.25 352,644.24 1,818,471.01

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable ☑Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

None

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

Other instructions: none

(6) Fixed assets liquidation

Unit: Yuan

Item Ending balance Beginning balance Equipment to be disposed of 195,723.61

Total 195,723.61

Other instructions: none

Projects under construction

Unit: Yuan

Item Closing balance Opening balance Construction in progress 321,632,437.21 656,202,232.22 Engineering materials 11,953,758.94 38,210,778.52 Total 333,586,196.15 694,413,010.74 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(1) Projects under construction

Unit: Yuan

Closing balance Beginning balance items

Book balance Impairment provision Book value Book balance Impairment provision Book value Co-bioluteo

Ketones and intermediates BA

5,931,506.87 5,931,506.87 8,578,057.37 8,578,057.37 Production and construction investment

Project

common biosteroids

Industrial chain upgrade 125,800,282.43 125,800,282.43 140,632,587.00 140,632,587.00 construction projects

common biological organisms

Enzyme production and conversion 15,697,997.77 15,697,997.77

construction project

common biosolvent

33,500,840.62 33,500,840.62

Refined items

Huahai joint annual output

370 tons steroid system

List of API production 138,639,249.78 138,639,249.78 504,933,165.09 504,933,165.09 Construction projects and products

Industry chain extension project

Common pharmaceutical high-end

Steroid series raw materials

2,012,662.04 2,012,662.04 1,375,537.57 1,375,537.57 Drugs and intermediates

Industrial construction projects

Equipment installed 49,897.70 49,897.70 682,885.19 682,885.19Total 321,632,437.21 321,632,437.21 656,202,232.22 656,202,232.22

(2) Changes in important projects under construction during the current period

Unit: Yuan

its

Engineering

Interest in this period:

Current period Cumulative Current period

Capital transferred in this period This period

Project Budget Beginning of Period Others End of Period Investment Project Interest

Increase Fixed Accumulated Interest Fund Source Name Number Balance Decrease Balance Accounting for Advance Progress Capital Amount Asset Calculation Capital

Amount Ratio Conversion rate Amount Conversion fund

Example

common

biology

corpus luteum

Ketones and 826, 46,8

8,57 1,47 4,06 63,4 5,93

Middle 000, 122. 100. 11,4 Raised funds, financial institutions

8.05 9.61 2.71 53.1 1.50

Body BA 000. 77% 00% 32.4 Loans, others

7.37 5.12 2.47 5 6.87

Production 00 3

construction

Raise investment

Project

Huahai

Together 1,00 504, 80,1 446, 138, 16,3

21,3 3,98

Annual production 0,00 933, 14,2 386, 639, 58.8 58.8 35,3

06.8 5,34 Loans from financial institutions, others 370 0,00 165. 32.3 840. 249. 0% 0% 56.4

1 3.75

Ton sterol 0.00 09 4 84 78 1

System

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

lieyuan

Ingredients and medicines

produce

construction

Project

and production

Industry chain

extend

Project

common

biology

Steroids 300, 140, 53,2 68,1 125,

2,18 1,36 products 000, 632, 73,6 05,9 800, 65.0 75.0

0,41 0,43 Financial institution loans, other industry chains 000. 587. 48.3 52.9 282. 0% 0%

3.14 6.00 upgrade 00 00 8 5 43

construction

Project

common

biology

Biology 300, 15,6 15,6

Enzyme 000, 97,9 97,9 52.3 80.0

Other products and services 000. 97.7 97.7 3% 0%

Conversion 00 7 7

construction

Project

common

100, 33,5 33,5

biology

000, 00,8 00,8 33.5 70.0

Solvent Others

40.6 40.6 0% 0%

Refined

00 2 2

Project

2,52 654, 184, 518, 319, 65,3 84,7 5,34

6,00 143, 066, 555, 569, 27,2Total 59.9 5,77 0,00 809. 334. 506. 877. 01.9 6 9.75

0.00 46 23 26 47 8

(3) Provision for impairment of projects under construction in the current period

□Applicable ☑Not applicable

(4) Impairment testing of projects under construction

□Applicable ☑Not applicable

(5) Engineering materials

Unit: Yuan

Closing balance Beginning balance items

Book balance Impairment provision Book value Book balance Impairment provision Book value Hardware and equipment 11,953,758.94 11,953,758.94 45,025,014.85 6,814,236.33 38,210,778.52 Total 11,953,758.94 11,953,758.94 45,025,014.85 6,814,236.33 38,210,778.52

Other instructions: none

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Productive biological assets

(1) Productive biological assets using cost measurement model

□Applicable ☑Not applicable

(2) Impairment testing of productive biological assets using the cost measurement model □ Applicable ☑ Not applicable

(3) Productive biological assets using fair value measurement model

□Applicable ☑Not applicable

Oil and gas assets

□Applicable ☑Not applicable

Right-of-use assets

(1) Right-of-use assets

Unit: Yuan

Project Houses and Buildings Total

1. Original book value

Opening balance 170,103.90 170,103.90 2. Increase in the current period
Reduction amount in this period
Ending balance 170,103.90 170,103.90

2. Accumulated depreciation

Balance at the beginning of the period 99,227.30 99,227.30 2. Increase in the current period 56,701.32 56,701.32

(1) Provision 56,701.32 56,701.32 3. Decrease amount in the current period

(1) Disposal

Ending balance 155,928.62 155,928.62

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Ending balance

4. Book value

Book value at the end of the period 14,175.28 14,175.28 2. Book value at the beginning of the period 70,876.60 70,876.60

(2) Impairment testing of right-of-use assets

□Applicable ☑Not applicable

Intangible assets

(1) Intangible assets

Unit: Yuan

Item Land use rights Patent rights Non-patented technology Total

1. Original book value

Opening balance 55,239,545.56 55,239,545.56 2. Increase in current period 5,046,113.28 5,046,113.28 (1) Purchase 5,046,113.28 5,046,113.28 (2) Internal research and development

(3) Increase in business mergers

Reduction amount in this period

(1) Disposal

Closing balance 60,285,658.84 60,285,658.84

2. Accumulated amortization

Balance at the beginning of the period 5,358,479.60 5,358,479.60 2. Increase in the current period 1,139,655.69 1,139,655.69

(1) Provision 1,139,655.69 1,139,655.69

Reduction amount in this period

(1) Disposal

Ending balance 6,498,135.29 6,498,135.29

3. Impairment provision

Opening balance
Increase amount in this period

(1) Provision

Reduction amount in this period

(1) Disposal

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Ending balance

4. Book value

Book value at the end of the period 53,787,523.55 53,787,523.55
Book value at the beginning of the period 49,881,065.96 49,881,065.96 The intangible assets formed through the company’s internal research and development at the end of the period accounted for 0.00% of the balance of intangible assets. (2) Data resources recognized as intangible assets

□Applicable ☑Not applicable

(3) Land use rights for which property rights certificates have not been obtained

Other explanations: [Note 1]: At the end of the reporting period, the company inspected the use of intangible assets and found no impairment. [Note 2]: As of December 31, 2025, the original value of the intangible assets under mortgage guarantee is 15,319,285.66 yuan. (4) Impairment testing of intangible assets

□Applicable ☑Not applicable

Goodwill

(1) Original book value of goodwill

□Applicable ☑Not applicable

(2) Goodwill impairment provision

□Applicable ☑Not applicable

(3) Relevant information on the asset group or asset group combination where the goodwill is located □ Applicable ☑ Not applicable

(4) Specific determination method of recoverable amount

The recoverable amount is determined as the net amount after fair value minus disposal costs.

□Applicable ☑Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable ☑Not applicable

(5) Completion of performance commitments and corresponding impairment of goodwill

There is a performance commitment when goodwill is formed and the reporting period or the previous period of the reporting period is within the performance commitment period □ Applicable ☑ Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Long-term deferred expenses

Unit: Yuan

Item Beginning balance Increase in the current period Amortization amount in the current period Other decreases Ending balance Kyoto Pharmaceutical office building decoration fee 1,495,000.00 390,000.00 1,105,000.00 Kyoto Biotech employee dormitory decoration

1,931,376.18 690,941.64 1,240,434.54 fee

Decoration costs for joint office building 5,972,257.16 2,171,729.88 3,800,527.28 Office and laboratory renovation 219,469.02 6,170.34 57,335.40 168,303.96 Public area renovation 265,000.00 17,666.67 247,333.33 Total 9,618,102.36 271,170.34 3,327,673.59 6,561,599.11

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 46,398,796.77 6,967,473.00 44,378,492.78 6,658,066.41 Unrealized profits from internal transactions 182,414.00 38,140.44 715,575.11 127,872.26 Deductible losses 193,577,485.18 35,162,314.17 42,323,865.03 8,916,589.99 Deferred income 137,352,391.97 20,602,858.79 143,310,753.02 21,496,612.96 Lease liabilities 58,679.16 8,801.87 Estimated liabilities 314,769.96 47,215.49 Share-based payment 219,699.07 35,713.17 Total 377,511,087.92 62,770,786.40 231,321,834.13 37,290,872.15

(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 Trading financial instruments, derivatives

Fair value of financial instruments 10.76 1.61 10.63 1.59 change

Right-of-use assets 14,175.28 2,126.29 70,876.60 10,631.49 Unrealized profits from internal transactions 4,731,863.95 980,359.14

Total 4,746,049.99 982,487.04 70,887.23 10,633.08

(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 62,770,786.40 37,290,872.15 Deferred income tax liabilities 982,487.04 10,633.08 Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(4) Details of deferred income tax assets not recognized

Unit: Yuan

Item Ending balance Beginning balance

Deductible losses 12,891,951.52 15,386,911.51 Tax-free government subsidies 6,940,000.00 6,940,000.00 Total 19,831,951.52 22,326,911.51

(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 1,223,190.94

2026 1,118,422.40 852,261.94

2027 1,650,114.92 1,164,698.71

2028 7,793,665.79 1,650,114.92

2029 2,285,143.74 7,793,665.79

2029 and subsequent years 44,604.67 2,702,979.21

Total 12,891,951.52 15,386,911.51

Other instructions: none

Other non-current assets

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value Prepaid long-term assets

5,542,813.37 5,542,813.37 3,692,584.21 3,692,584.21 Purchase money

Prepaid project funds 3,189,193.91 3,189,193.91 4,076,573.50 4,076,573.50 Prepaid entrusted research and development

Fees and other long-term expenses 69,689.79 69,689.79

Total 8,732,007.28 8,732,007.28 7,838,847.50 7,838,847.50

Other instructions: none

Assets whose ownership or use rights are restricted

Unit: End of the period Beginning of the period

Project

Book balance Book value Restriction type Restriction situation Book balance Book value Restriction type Restriction situation Credit guarantee Credit guarantee/acceptance deposit/acceptance guarantee

20,708,56 20,708,56 Margin/Division Securities Fund/ETC 41,059,17 41,059,17 Margin/Division Securities Fund/ETC Monetary Funds

8.48 8.48 Legal freeze Freeze guarantee 2.21 2.21 Legal freeze Freeze deposit/judicial freeze/judicial freeze

48,390,41 40,728,48 Bank loans 774,446,6 766,725,2 Bank loans Fixed assets Mortgage Mortgage

1.26 8.90 Mortgage 58.26 31.78 Mortgage

15,319,28 13,554,65 43,449,37 40,586,48

Intangible assets Mortgage Mortgage of borrowings Mortgage Mortgage of borrowings

5.66 6.16 5.56 1.52

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Among them: number

data resources

210,152,7 210,152,7 Bank loan 148,279,5 148,279,5 Bank loan for construction in progress Mortgage Mortgage

75.57 75.57 Mortgage 32.72 32.72 Mortgage investment house 19,457,84 17,384,51 Bank loan 19,457,84 18,014,55 Bank loan

mortgage mortgage

Real estate 3.93 3.60 Mortgage 3.93 2.84 Total mortgage 314,028,8 302,529,0 1,026,692 1,014,664

84.90 02.71 ,582.68 ,971.07

Other instructions: none

Short-term borrowing

(1) Classification of short-term loans

Unit: Yuan

Item Ending balance Beginning balance

Guaranteed loan 76,000,000.00 123,100,000.00 Credit loan 13,000,000.00 Portfolio loan 96,500,000.00 67,000,000.00 Forfeiting 37,100,000.00 59,000,000.00 Short-term loan interest 153,280.41 203,069.17 Discounted undue bills continue to be recognized 20,000,000.00 32,000,000.00 Total 229,753,280.41 294,303,069.17 Description of short-term loan classification: None

(2) Overdue short-term borrowings that have not been repaid

□Applicable ☑Not applicable

Trading financial liabilities

□Applicable ☑Not applicable

Derivative financial liabilities

□Applicable ☑Not applicable

Notes payable

Unit: Yuan

Category Ending balance Beginning balance

Bank acceptance bill 37,000,000.00 18,500,000.00 International letter of credit 18,617,956.00 Total 37,000,000.00 37,117,956.00 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Accounts payable

(1) Presentation of accounts payable

Unit: Yuan

Item Closing balance Opening balance Within one year (including one year) 231,735,681.25 269,815,013.53 More than one year 192,522,770.06 152,980,454.17 Total 424,258,451.31 422,795,467.70

(2) Important accounts payable that are aged more than 1 year or are overdue

Unit: Yuan

Item Closing balance Reasons for outstanding repayment or carry-forward MCC Huaya Construction Group Co., Ltd. 44,605,296.11 The project is not completed

Xiangyang Haiyu Industrial Equipment Installation Co., Ltd. 35,094,511.56 Not yet due in settlement period

Chongqing Wanggang Construction Engineering Co., Ltd. 27,293,417.06 Not yet due settlement period

Zhejiang Zhongkong System Engineering Co., Ltd. 12,414,523.45 Project not completed

Guqiang Fire Protection Technology Co., Ltd. 10,281,146.68 The project is not completed

Total 129,688,894.86

Other instructions: none

(3) Is there any overdue payment to small and medium-sized enterprises?

Is it a large enterprise?

□Yes ☑No

Other payables

Unit: Yuan

Item Closing balance Opening balance Other payables 1,356,502.77 899,641.66 Total 1,356,502.77 899,641.66

(1) Interest payable

□Applicable ☑Not applicable

(2) Dividends payable

□Applicable ☑Not applicable

(3) Other payables

List other payables according to the nature of the payment

Unit: Yuan

Item Ending balance Beginning balance Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Collection and payment 420,000.00 201,000.00 Employee current accounts 226,903.49 220,991.16 Deposits and security deposits 243,000.00 255,000.00 Others 466,599.28 222,650.50Total 1,356,502.77 899,641.66

Important other payables aged more than 1 year or overdue

Unit: Yuan

Item Closing balance Reason for outstanding or carried forward

Zhejiang Haitong Construction Engineering Co., Ltd. 190,000.00 The project has not yet been settled

Shanghai Institutes for Advanced Study, Chinese Academy of Sciences 100,000.00 Payment terms have not been met yet

Total 290,000.00

Other instructions: none

Advance payments

(1) Presentation of advance receipts

Unit: Yuan

Item Ending balance Beginning balance

Within 1 year (including 1 year) 47,266.10 47,266.05 Total 47,266.10 47,266.05

(2) Important advances from customers aged more than 1 year or overdue

□Applicable ☑Not applicable

Contract liabilities

Unit: Yuan

Item Ending balance Beginning balance

Advance payments (tax excluded) 6,593,536.43 1,226,484.65 Total 6,593,536.43 1,226,484.65

Employee compensation payable

(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 9,514,285.40 85,490,953.28 85,364,839.51 9,640,399.17

2. Post-employment benefits-settings

7,285,138.73 7,285,138.73

Contribution plan

3. Dismissal benefits 46,279.00 46,279.00

Total 9,514,285.40 92,822,371.01 92,696,257.24 9,640,399.17 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(2) Presentation of short-term remuneration

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance

Salaries, bonuses, allowances and subsidies 9,404,699.40 73,771,280.64 73,791,891.59 9,384,088.45
Employee welfare fees 4,150,069.01 4,150,069.01
Social insurance premiums 4,041,081.69 4,041,081.69

Including: medical insurance premium 3,680,139.78 3,680,139.78

Work injury insurance premium 348,803.91 348,803.91

Others 12,138.00 12,138.00

Housing provident fund 109,586.00 2,313,971.49 2,423,557.49
Trade union funds and employee education funds 1,214,550.45 958,239.73 256,310.72 Total 9,514,285.40 85,490,953.28 85,364,839.51 9,640,399.17

(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 6,977,417.08 6,977,417.08
Unemployment insurance premium 307,721.65 307,721.65

Total 7,285,138.73 7,285,138.73

Other instructions: none

Taxes payable

Unit: Yuan

Item Ending balance Beginning balance

Value-added tax 2,277,211.63 Corporate income tax 76,383.21 Personal income tax 96,969.81 102,576.42 Urban maintenance and construction tax 9,584.34 Environmental protection tax 75,818.96 21,993.64 Property tax 94,556.42 60,556.30 Land use tax 45,888.46 16,546.42 Education surcharge 28,753.03 Local education surcharge 19,168.69 Stamp tax 114,231.12 231,656.62 Resource tax 206.55 372.00 Total 427,671.32 2,844,802.30

Liabilities held for sale

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Non-current liabilities due within one year

Unit: Yuan

Item Ending balance Beginning balance

Long-term borrowings due within one year 94,708,627.82 24,161,726.29 Bonds payable due within one year 636,503.77 389,305.41 Lease liabilities due within one year 58,679.16 Total 95,345,131.59 24,609,710.86

Other current liabilities

Unit: Yuan

Item Ending balance Beginning balance

Endorsed unexpired banks with average credit ratings

17,152,904.99 14,218,237.38 Acceptance bill

Items to be written off 501,635.48 110,123.06 Total 17,654,540.47 14,328,360.44

Long-term borrowing

(1) Classification of long-term loans

Unit: Yuan

Item Ending balance Beginning balance

Guaranteed loans 209,193,763.87 100,489,646.66 Portfolio loans (Note 1) 506,820,369.75 408,591,726.29 Long-term loans due within one year -94,708,627.82 -24,161,726.29Total 621,305,505.80 484,919,646.66 Description of long-term loan classification:

[Note 1]: (1) The parent company signed the "Stock Repurchase and Holding Increase Loan Contract" with Shanghai Pudong Development Bank Co., Ltd. Xiangyang Branch in March 2025. The loan amount is

27,000,000.00 yuan, used to repurchase the company's stocks, the loan period is from March 6, 2025 to March 5, 2028, and the interest rate is 2.00% (2) Subsidiary Hubei Tongyang Biotechnology Co., Ltd. signed a "Fixed Asset Loan Contract" with Shanghai Pudong Development Bank Co., Ltd. Xiangyang Branch in June 2022, with a loan amount of 143,500,000.00 Yuan will be used for the construction of investment projects. The loan period is from June 30, 2022 to June 30, 2030, with interest rates of 3.50% and 3.15%; (3) Subsidiary Hubei Huahai Joint Pharmaceutical Co., Ltd. signed a "Fixed Asset Loan Contract" with Shanghai Pudong Development Bank Co., Ltd. Xiangyang Branch in June 2024, with a loan amount of RMB 200,000,000.00 Yuan will be used to repay loans from other banks and the production and construction project of steroid series APIs with an annual output of 370 tons. The loan period is from June 28, 2024 to June 28, 2030, with interest rates of 3.00%, 2.90%, and 2.55%; (4) Subsidiary Hubei Huahai Tongye Pharmaceutical Co., Ltd. in June 2024 A "Fixed Asset Loan Contract" was signed with Shanghai Pudong Development Bank Co., Ltd. Xiangyang Branch in May. The loan amount is RMB 360,000,000.00, which will be used for the construction of the industrial chain extension project of Hubei Huahai Kyodo Pharmaceutical Co., Ltd.. The loan period is from September 5, 2024 to September 4, 2030, and the interest rate is 2.90% and 2.55%; (5) The subsidiary Hubei Kyodo Steroid Drug Research Institute Co., Ltd. In September 2023, a "Fixed Asset Mortgage Loan Contract" was signed with Industrial Bank Co., Ltd. Xiangyang Branch. The loan amount is RMB 20,200,000.00, which is used to purchase industrial plants. The loan period is from October 19, 2023 to October 18, 2033, and the interest rates are 3.80% and 3.70%;

[Note 2]: (1) The parent company signed a "Credit Line Contract" with Guangfa Bank Co., Ltd. Xiangyang Branch in November 2024. The credit line is RMB 50,000,000.00. The loan period is from December 27, 2024 to December 26, 2026. It is used for daily production and operation. The loan interest rate 2.95%; (2) The subsidiary Hubei Mutual Biotechnology Co., Ltd. signed a "Fixed Asset Loan Contract" with the Xiangyang High-tech Industrial Development Zone Branch of China Construction Bank Co., Ltd. in November 2024. The loan amount is RMB 180,000,000.00. The loan period is from July 17, 2024 to July 16, 2031. It will be used for the steroid industry chain upgrading and construction project. The loan interest rate 3.00%, 2.55%. (3) The subsidiary Hubei Gongyang Biotechnology Co., Ltd. signed the "RMB Working Capital Loan Contract" with China CITIC Bank Co., Ltd. Xiangyang Branch on April 27, 2025, for the purpose of working capital turnover, and the loan amount is

22,900,000.00 yuan, the loan period is from April 27, 2025 to July 27, 2026. The interest rate is 2.90%. (4) The full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd., a subsidiary of Hubei Tongyong Biotechnology Co., Ltd., on May 21, 2025

On the same day, a "Working Capital Loan Contract" was signed with Hubei Danjiangkou Rural Commercial Bank Co., Ltd. for working capital. The loan amount is 20,000,000.00 yuan, the loan period is from May 21, 2025 to May 21, 2028, and the interest rate is 3.10%.

Other instructions, including interest rate ranges:

Bonds payable

(1) Bonds payable

Unit: Yuan

Item Ending balance Beginning balance

Convertible corporate bonds 353,487,044.07 328,111,481.82 Less: Bonds payable due within one year -636,503.77 -389,305.41 Total 352,850,540.30 327,722,176.41 (2) Increases and decreases in bonds payable (excluding preference shares, perpetual bonds and other financial instruments classified as financial liabilities)

Unit: yuan per face

Overflow discount current period

Bond Par Issue Bond Issuance Beginning of Period Value of Current Period End of Period Whether

Face value Price spread Others

Name Interest Rate Date Term Amount Balance Issuance Profit Repayment Balance Default Sale Reduction

information

2022

380,0 327,7 4,815 25,17 4,225 352,8

Common 100.0 Year 11 636,5

6 years 00,00 22,17 ,778. 4,663 ,575. 50,54 No convertible bonds 0 month 28 03.77

0.00 6.41 87 .89 10 0.30

day

380,0 327,7 4,815 25,17 4,225 352,8

636,5

Total —— 00,00 22,17 ,778. 4,663 ,575. 50,54 —— 03.77

0.00 6.41 87 .89 10 0.30

(3) Description of convertible corporate bonds

[Note 1:] Other decreases are the amount of non-current liabilities due within one year adjusted based on liquidity.

[Note 2:] In 2025, a total of 463.00 bonds will be reduced by stock conversion, and the number of shares will be increased by 1,697.00 shares. For the face value of the bonds that is less than 1 share converted, 278.16 yuan will be paid in cash. Conversion conditions and conversion time of convertible corporate bonds:

As approved by the China Securities Regulatory Commission with the "Reply on the Registration of Hubei Gongyong Pharmaceutical Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Objects" by China Securities Regulatory Commission [2022] No. 2721, the company was approved to publicly issue convertible corporate bonds with a total face value of 380,000,000.00 yuan (hereinafter referred to as "convertible bonds") with a term of 6 years.

The coupon rates of the above-mentioned convertible bonds are: 0.40% in the first year, 0.60% in the second year, 1.10% in the third year, 1.80% in the fourth year, 2.50% in the fifth year, and 3.00% in the sixth year. The convertible bonds adopt an annual interest payment method. The principal of all convertible bonds that have not been converted into shares will be returned at maturity and the interest for the last year will be paid. The remaining principal and interest of the bond will be repaid within five working days after the expiration of the convertible bonds.

The initial conversion price of the convertible bonds is 27.14 yuan per share, which is not lower than the average trading price of the company's stock on the twenty trading days before the announcement of the prospectus (if there is a stock price adjustment due to ex-rights and ex-dividends within the twenty trading days, the trading price on the trading day before the adjustment will be calculated based on the price adjusted for the corresponding ex-rights and ex-dividends. Full text of the 2025 Annual Report of Hubei Gongyong Pharmaceutical Co., Ltd.

Calculated) and the average trading price of the company's stock on the previous trading day. The conversion period of the convertible bonds issued this time starts from the first trading day six months after the completion of the issuance of the convertible bonds and ends on the maturity date of the convertible bonds. Bond holders have the option of converting or not converting shares and become shareholders of the company on the next day of conversion.

On June 4, 2024, the company disclosed the "Announcement on Adjustment of the Conversion Price of Common Convertible Bonds" (Announcement Number: 2024-041). Due to the company's implementation of equity distribution in 2023, the conversion price of "Co-Convertible Bonds" was adjusted from 27.14 yuan/share to 27.12 yuan/share. The adjusted conversion price will take effect from June 12, 2024.

On September 23, 2025, the company held the ninth meeting of the third board of directors and reviewed and approved the "Proposal on Not Revising the Conversion Price of Common Convertible Bonds Downward." The company's Board of Directors decided not to revise the conversion price of "Co-Convertible Bonds" downwards this time. At the same time, from the trading day after the Board of Directors reviewed and approved the meeting to March 23, 2026, if the conditions for downward revision of the conversion price of "Co-Convertible Bonds" are triggered again, no downward revision plan will be proposed. After this period (restarting from March 24, 2026), if the conditions for downward revision of the conversion price of the "common convertible bonds" are triggered again, the company's board of directors will convene another meeting to decide whether to exercise the right to downward revision of the conversion price of the "common convertible bonds".

The company's public issuance of convertible bonds raised a total amount of RMB 380,000,000.00. After deducting related tax-exclusive issuance expenses totaling RMB 6,776,886.79, the actual net amount of funds raised was RMB 373,223,113.21.

(4) Description of other financial instruments classified as financial liabilities

□Applicable ☑Not applicable

Lease liabilities

Unit: Yuan

Item Ending balance Beginning balance

Lease payments 59,352.00 Less: Unrecognized financing costs -672.84 Less: Lease liabilities due within one year -58,679.16 Other notes: None

Long-term payables

□Applicable ☑Not applicable

(2) Special accounts payable

□Applicable ☑Not applicable

Long-term employee benefits payable

(1) Long-term employee salary payable table

□Applicable ☑Not applicable

(2) Changes in defined benefit plans

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Estimated liabilities

Unit: Yuan Item Ending balance Beginning balance Reason for formation

Pending litigation 24,941.97 4,648,020.47 Labor disputes

Total 24,941.97 4,648,020.47

Deferred income

Unit: Yuan Item Beginning balance Increase in the current period Decrease in the current period Ending balance Reasons for formation

Related to assets/receiving government subsidies 150,250,753.02 7,405,800.00 13,595,494.37 144,061,058.65

benefit related

Total 150,250,753.02 7,405,800.00 13,595,494.37 144,061,058.65

Other non-current liabilities

□Applicable ☑Not applicable

Share capital

Unit: Yuan Increase or decrease in this change (+, -)

Beginning balance Closing balance

Issuance of new shares Bonus shares Conversion of provident funds Others Subtotal

Total number of shares 115,279,416.00 1,697.00 1,697.00 115,281,113.00 [Note 1]: Others represent the number of convertible bonds converted into shares as of December 31, 2025, 1,697.00.

Other equity instruments

(1) Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

□Applicable ☑Not applicable

(2) Statement of changes in outstanding preferred stocks, perpetual bonds and other financial instruments at the end of the period

Unit: yuan outstanding. Beginning of the period. Increase in the current period. Decrease in the current period. End of the period.

financial engineering

Quantity Book value Quantity Book value Quantity Book value Quantity Book value instrument

Convertible 3,799,341 96,489,94 3,798,878 96,478,49 463.00 11,454.73

Corporate bonds .00 7.36 .00 2.63 3,799,341 96,489,94 3,798,878 96,478,49Total 463.00 11,454.73

.00 7.36 .00 2.63 Changes in other equity instruments during the current period, explanations of reasons for changes, and the basis for relevant accounting treatments:

[Note 1:] In 2025, a total of 463.00 bonds will be reduced by equity conversion, and the corresponding reduced equity amount will be 11,454.73 yuan.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Capital reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Capital premium (equity premium

408,935,587.71 57,914.05 408,993,501.76 price)

Other capital reserves 1,664,120.32 -1,634,681.66 29,438.66 of which: equity-settled

1,664,120.32 -1,664,120.32

share-based payment

Others 29,438.66 29,438.66 Total 410,599,708.03 -1,576,767.61 409,022,940.42 Other explanations, including changes in increases and decreases in the current period and explanations of reasons for changes:

[Note]: The increase in capital premium in this period is due to the conversion of 1,697 convertible bonds of the company into shares during the reporting period, which increased the equity premium by RMB 57,914.05;

Other capital reserves - changes in equity-settled share-based payments are due to the failure to meet the exercise conditions for the current period and employees voluntarily leaving the company, the unlocking of share incentives failed, and all share-based payments were transferred back;

Other capital reserves - Others are affected by the special reserve provision made by the associated company Shandong Tongxin Pharmaceutical Co., Ltd.

Treasury stocks

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Repurchase of shares [Note 1] 21,972,301.43 21,972,301.43 Total 21,972,301.43 21,972,301.43 Other explanations, including changes in the current period and reasons for changes: [Note 1]: In 2025, the company repurchased 1,069,600 shares, with a total repurchase expenditure of 21,972,301.43 yuan.

Other comprehensive income

□Applicable ☑Not applicable

Special reserves

□Applicable ☑Not applicable

Surplus reserve

Unit: Yuan

Item Opening balance Increase in the current period Decrease in the current period Ending balance Statutory surplus reserve 9,953,911.25 9,953,911.25 Total 9,953,911.25 9,953,911.25

Undistributed profits

Unit: Yuan

Projects in this issue Previous issue

Undistributed profit at the end of the previous period before adjustment 290,814,696.93 320,341,025.75 Undistributed profit at the beginning of the period after adjustment 290,814,696.93 320,341,025.75 Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd.

Add: Net profit attributable to owners of the parent company for the current period -73,359,121.23 -27,591,132.24 Less: Withdrawal of statutory surplus reserve 92,612.76

Dividends payable on ordinary shares 1,842,583.82 Undistributed profits at the end of the period 217,455,575.70 290,814,696.93 Details of adjustments to undistributed profits at the beginning of the period:

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.
Due to changes in accounting policies, the undistributed profit at the beginning of the period was affected.
Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected.
Changes in the scope of consolidation due to the same control will affect the undistributed profit at the beginning of the period.
The total impact of other adjustments on the undistributed profit at the beginning of the period is RMB.

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

Revenue Cost Revenue Cost Main business 595,450,580.79 512,841,014.05 532,568,105.18 428,292,143.62 Other business 10,727,686.52 9,839,816.22 4,027,486.85 2,741,175.23 Total 606,178,267.31 522,680,830.27 536,595,592.03 431,033,318.85 The company’s total audited profit, net profit, and net profit after deducting non-recurring gains and losses during the reporting period, whichever is lower, is negative.

☑Yes □No

Unit: Yuan

Items Specific deductions for the current year Specific deductions for the previous year Operating income amount 606,178,267.31 - 536,595,592.03 -

Total amount of items deducted from operating income 10,727,686.52 - 4,027,486.85 -

The total amount of items deducted from operating income accounts for

1.77% - 0.75% -

Proportion of industry income

1. Business income unrelated to the main business

1． Income from other businesses other than normal operations

Enter. Such as leasing fixed assets and intangible assets

Products, packaging, sales materials, materials

House rental, raw materials House rental, raw materials and non-monetary asset exchange, operating income 10,727,686.52 4,027,486.85

Material and patent transfer Hot water sales

Income from trust management business, etc., and

Although included in the main business income, it belongs to the above

Income from municipal companies other than normal operations.

House rental, raw materials Subtotal of house rental, raw materials and business income unrelated to the main business 10,727,686.52 4,027,486.85

Material and patent transfer Hot water sales

2. Income without commercial substance

Subtotal of income without commercial substance 0.00 Not applicable 0.00 Not applicable

Amount after deduction of operating income 595,450,580.79 Not applicable 532,568,105.18 Not applicable

Breakdown information of operating income and operating costs:

Unit: Yuan

Division 1 Division 2 Total Contract Classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Among them:

147,943,2 151,656,7 147,943,2 151,656,7 Starting materials

38.30 94.73 38.30 94.73 447,507,3 361,184,2 447,507,3 361,184,2 Intermediate

42.49 19.32 42.49 19.32Technology and inspection

Testing service

Other business 10,727,68 9,839,816 10,727,68 9,839,816Income 6.52 .22 6.52 .22By business location

Distinguish classification

Among them:

381,665,5 361,558,1 381,665,5 361,558,1 Domestic

06.27 55.93 06.27 55.93 224,512,7 161,122,6 224,512,7 161,122,6 Overseas

61.04 74.34 61.04 74.34Market or customer

Household type

Among them:

Contract type

Among them:

Transfer by product

give time

Classification

Among them:

According to contract period

Limited classification

Among them:

According to sales channel

Road classification

Among them:

606,178,2 522,680,8 606,178,2 522,680,8 Direct sales

67.31 30.27 67.31 30.27 Distribution

606,178,2 522,680,8 606,178,2 522,680,8Total

67.31 30.27 67.31 30.27Other instructions

Revenue recognition time Core raw materials for steroid drugs Other business income

Confirmed at a certain point in time 595,450,580.79 10,160,493.91 Confirmed within a certain period of time -- --

Total 595,450,580.79 10,160,493.91

[Note 1]: The above table does not include lease income recognized in "Accounting Standards for Business Enterprises No. 21 - Lease".

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 yet been performed or have not been completed is 0.00 yuan, of which 0.00 yuan is expected to be confirmed in the year. Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Revenue is recognized in the year, Yuan is expected to recognize revenue in the year, Yuan is expected to recognize revenue in the year.

Taxes and surcharges

Unit: Yuan

Item Amount for the current period Amount for the previous period

Urban maintenance and construction tax 9,789.55 Education surcharge 29,368.69 Resource tax 952.20 372.00 Property tax 502,955.66 337,050.07 Land use tax 184,028.78 163,185.73 Vehicle and vessel use tax 14,646.24 16,926.24 Stamp tax 467,498.55 641,602.02 Environmental protection tax 122,493.88 49,343.54 Local education surcharge 19,579.14 Total 1,292,575.31 1,267,216.98

Management expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 26,641,066.93 25,923,931.78 Depreciation and amortization 11,727,774.57 8,827,188.83 Safety, environmental protection, greening and sewage discharge fees 3,084,314.89 10,139,441.68 Consulting and service fees 4,388,031.32 4,565,656.81 Business entertainment expenses 2,302,798.58 3,025,742.26 Property rental and water, electricity and gas expenses 2,551,017.39 1,759,733.95 Office expenses 1,038,294.61 861,364.29 Decoration expenses 878,057.09 879,213.16 Share-based payment -759,482.88 -83,629.22 Amortization of right-of-use assets 56,701.32 56,701.32 Equipment maintenance fee 245,133.53 531,119.47 Others 4,733,482.45 4,485,386.62 Total 56,887,189.80 60,971,850.95

Sales expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Employee compensation 3,398,669.47 2,917,362.80 Exhibition and travel expenses 2,270,834.99 1,952,757.71 Business entertainment expenses 560,611.09 507,809.48 Share-based payment -152,931.65 65,722.47 Others 2,678,219.13 1,407,988.94 Total 8,755,403.03 6,851,641.40

Research and development expenses

Unit: Yuan Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Item Amount for the current period Amount for the previous period

Employee compensation 19,472,240.42 18,480,753.72 Materials and fuel and power expenses 28,331,831.85 22,834,896.21 Depreciation and amortization of fixed assets and right-of-use assets 7,395,476.54 6,322,854.05 New process development expenses 12,511,548.06 1,513,417.16 Share-based payment -689,984.46 -33,143.17 Amortization of research institute decoration costs 214,595.97 414,765.94 Other expenses 2,615,311.53 1,549,821.36 Total 69,851,019.91 51,083,365.27

Financial expenses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Interest expense 47,732,650.03 23,518,169.69 Less: Interest income 796,397.47 1,053,429.94 Exchange loss 2,656,308.47 1,985,933.19 Less: Exchange income 1,046,837.85 3,108,461.82 Handling fee expenses 670,638.51 707,233.61 Other expenses 500,000.00 Total 49,216,361.69 22,549,444.73

Other income

Unit: Yuan

Sources of other income Amount incurred in the current period Amount incurred in the previous period

Government subsidies related to daily activities 17,181,691.71 8,892,352.05 Personal tax processing fee refund 29,440.37 30,350.69 Value-added tax additional deduction 2,499,542.79 3,600,057.87 Total 19,710,674.87 12,522,760.61

Net exposure hedging income

□Applicable ☑Not applicable

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 0.13 0.18 Total 0.13 0.18

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Long-term equity investment income calculated using the equity method 1,456.43 -50,757.59 Bill discount interest -266,862.34 -298,650.00 Total -265,405.91 -349,407.59 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Other explanations: [Note 1]: Shandong Tongxin Pharmaceutical Co., Ltd., an associate company accounted for by the company according to the equity method, recognized investment income of RMB 1,456.43 based on the net profit of the invested enterprise in the current period.

Credit impairment losses

Unit: Yuan

Item Amount for the current period Amount for the previous period

Bad debt losses on accounts receivable -6,082,600.55 -4,224,934.66 Bad debt losses on other receivables 157,719.22 -204,354.33 Total -5,924,881.33 -4,429,288.99

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

-10,564,573.76 -4,140,825.85 value loss

Impairment losses on fixed assets 1,474.22 -2,163,260.44
Impairment losses on construction in progress -6,814,236.33 Total -10,563,099.54 -13,118,322.62
Income from asset disposal

Unit: Yuan

Source of asset disposal income Amount incurred in the current period Amount incurred in the previous period

Loss on disposal of fixed assets not classified as held for sale -1,437,181.19 113,563.03 Total -1,437,181.19 113,563.03

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

Government subsidy 130,000.00

Others 542,209.87 402,043.14 542,209.87 Total 542,209.87 532,043.14 542,209.87

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 donations 50,000.00 1,345,000.00 50,000.00 Loss from damage and scrapping of non-current assets 3,787,843.14 1,481,684.71 3,787,843.14 Others 934,165.03 818,572.29 934,165.03 Total 4,772,008.17 3,645,257.00 4,772,008.17 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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 1,019,538.66 1,068,953.72 Deferred income tax expense -24,508,060.29 -14,947,970.24 Others

Total -23,488,521.63 -13,879,016.52

(2) Adjustment process of accounting profits and income tax expenses

Unit: Yuan

Item Amount incurred in this period

Total profit -105,214,803.97 Income tax expense calculated at statutory/applicable tax rates -15,782,220.60 Impact of different tax rates applicable to subsidiaries -2,205,869.62 Impact of adjusting income tax in previous periods 1,793,493.71 Impact of non-taxable income -218.46 Impact of non-deductible costs, expenses and losses 4,174,906.45 Effect of using deductible losses that have not been recognized in the previous period of deferred income tax assets -297,007.01 Deductible temporary differences or deductible losses that have not been recognized in the current period with deferred income tax assets

2,230.24 Impact of loss

Impact of super deduction of R&D expenses -11,173,836.34 Income tax expense -23,488,521.63

Other comprehensive income

See notes for details.

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

Interest income 554,228.19 1,068,232.01 Scrap sales and others 617,641.25 491,175.46 Government subsidies 15,762,612.53 75,202,420.00 Bill acceptance deposit 21,667,230.65 27,551,014.82 Collection and payment 187,257.51 128,898.84 Current accounts and others 239,192.90 4,023,618.39 Security deposit and deposit 13,000.00 8,104,756.11 Individual tax withheld and paid 10,919.17 60,366.33 Total 39,052,082.20 116,630,481.96 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

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

Financial expenses and handling fees 640,708.23 656,100.80 Operating expenses paid 35,973,942.35 36,482,776.89 Donation expenses 50,000.00 1,345,000.00 Bill acceptance deposit 1,770,678.37

Collection and payment 39,953.37 2,379.25 Deposits and security deposits 57,000.00 8,023,400.00 Current accounts and others 1,531,947.95 4,120,203.50 Late fees and fines 410,243.54 730,331.79 Total 40,474,473.81 51,360,192.23

(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

Bank financial management principal

Recovery of asset-related bill acceptance deposit 17,157,465.13 Total 17,157,465.13

Significant cash payments related to investing activities

Unit: Yuan

Item Amount for the current period Amount for the previous period

Purchase and construction of fixed assets, intangible assets and other long-term

166,326,364.17 311,613,852.76 Cash paid for assets

Total 166,326,364.17 311,613,852.76

(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

Bank returns appraisal fee

Lease deposit returned 1,500.00 Bill discount unexpired 32,000,000.00 Total 32,001,500.00

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

Note discount interest 266,862.34 298,650.00 Lease deposit and lease fees 59,352.00

Share repurchase 21,972,301.43

Special loan account management fee 500,000.00 Total 22,298,515.77 798,650.00 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Description of other cash paid related to financing activities: None

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

294,303,069. 209,600,000. 262,100,000. 12,203,069.1 229,753,280. Short-term borrowings 153,280.41

17 00 00 7 41 Non-current liabilities due within one year 24,609,710.8 70,735,420.7 95,345,131.5 6 3 9

484,919,646. 238,793,016. 23,690,000.0 31,977,157.0 94,120,000.0 621,305,505. Long-term borrowings

66 15 0 1 0 80

327,722,176. 29,601,137.3 352,850,540. Bonds payable 4,178,765.80 294,007.66

41 5 30

1,131,554,60 448,393,016. 124,179,838. 298,255,922. 106,617,076. 1,299,254,45Total

3.10 15 49 81 83 8.10

(4) Explanation on presenting cash flow in net amount

Item Relevant facts and circumstances Basis for net presentation Financial impact

Export transportation premium Export collection and delivery transportation premium Collection and payment No impact

(5) Major activities and financial impacts that do not involve current cash receipts and payments but affect the company's financial status or may affect the company's cash flow in the future

Item Number of current period Number of previous period

Bank acceptance bill endorsed for transfer 71,088,490.94 220,437,627.94 Including: payment for goods 55,892,290.83 146,109,189.86

Payment expenses 11,037,310.11 524,030.15 Payment for the purchase of long-term assets such as fixed assets and projects under construction 4,158,890.00 73,804,407.93

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 -81,726,282.34 -31,656,138.87 plus: asset impairment provision 16,487,980.87 17,547,611.61 Depreciation of fixed assets, depreciation of oil and gas assets, depreciation of productive biological assets 114,319,810.89 42,618,192.09 Depreciation of right-of-use assets 56,701.32 262,602.36 Amortization of intangible assets 1,037,899.20 363,969.88 Amortization of long-term prepaid expenses 3,327,673.59 3,307,538.77 Loss on disposal of fixed assets, intangible assets and other long-term assets (income is marked with "-"

1,437,181.19 -113,563.03 fill in the column)

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Losses from scrapping of fixed assets (income is listed with "-") 3,789,921.83 1,481,684.71 Loss from changes in fair value (income is listed with "-") -0.13 -0.18 Financial expenses (income is listed with "-") 47,639,353.36 24,808,489.94 Investment losses (income is shown with "-") 291,446.56 349,407.59 Decrease in deferred income tax assets (increase is shown with "-") -25,479,914.25 -14,669,186.77 Increase in deferred income tax liabilities (decrease is shown with "-") 971,853.96 -278,783.48 Decrease in inventory (increases are indicated with "-") -99,524,102.77 -43,313,376.35 Decrease in operating receivables (increases are indicated with "-") 25,467,407.79 8,557,292.44 Increase in operating payables (decreases are indicated with "-") 34,603,579.58 -29,828,982.38 Others -1,664,120.32 -25,205.96 Net cash flow from operating activities 41,036,390.33 -20,588,447.63 2. Major investment and financing activities that do not involve cash receipts and payments

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 65,137,377.13 100,122,033.02 Less: Opening balance of cash 100,122,033.02 96,206,159.29 Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents -34,984,655.89 3,915,873.73

(2) Net cash paid in the current period to acquire subsidiaries

□Applicable ☑Not applicable

(3) Net cash received from disposal of subsidiaries in the current period

□Applicable ☑Not applicable

(4) Composition of cash and cash equivalents

Unit: Yuan

Item Ending balance Beginning balance

Cash 65,137,377.13 100,122,033.02 Bank deposits that can be used for payment at any time 65,137,377.13 100,122,033.02
Balance of cash and cash equivalents at the end of the period 65,137,377.13 100,122,033.02

(5) Situations where the scope of use is limited but still represents cash and cash equivalents

□Applicable ☑Not applicable

(6) Monetary funds that are not cash and cash equivalents

Unit: Yuan Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Item Amount of the current period Reasons why the amount of the previous period does not belong to cash and cash equivalents

Bank acceptance bill and letter of credit deposit and ETC deposit and security deposit 20,708,568.48 41,059,172.21

Judicial freezing of funds

Total 20,708,568.48 41,059,172.21

(7) Description of other major activities

□Applicable ☑Not applicable

Notes on items in the statement of changes in owners’ equity

□Applicable ☑Not applicable

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 665,567.33 Including: US dollars 94,691.46 7.0288 665,567.33 Euros

Hong Kong dollar

Accounts receivable 43,663,123.49 Including: USD 6,212,031.00 7.0288 43,663,123.49 Euros

Hong Kong dollar

long term borrowing

Of which: US dollars

Euro

Hong Kong dollar

Accounts payable

Including: Euro 43,279.99 8.2355 356,432.36 Other payables

Of which: USD 3,850.33 7.0288 27,063.20

(2) Description of overseas operating entities, including for important overseas operating entities, their main overseas business location, accounting standard currency and basis for selection should be disclosed. If the accounting standard currency changes, the reasons should also be disclosed.

☑Applicable □Not applicable

Important overseas business entity Main overseas business location Accounting currency Basis for selection America AURORA Co.,Ltd Delaware, United States U.S. dollar Full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd., an overseas operating subsidiary established in the United States

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

Item The amount of variable lease payments that are included in the relevant asset cost or current profit and loss and are not included in the measurement of lease liabilities -- including: the portion resulting from the sale and leaseback transaction -- the simplified short-term lease expense included in the relevant asset cost or current profit and loss 406,920.00 The simplified treatment of low-value asset lease expenses included in the relevant asset cost or current profit and loss (short-term lease expense of low-value assets)

--Except for term rental fees)

Total cash outflow related to leasing 466,272.00 Involving sale and leaseback transactions

□Applicable ☑Not applicable

(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

Income investment real estate related to payment amount 567,192.61

Total 567,192.61

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

[Note 1] The house (including the site) rented by the company to Xiangyang Shengshi Kaiyuan Automobile Sales Co., Ltd. is located at No. 18, Hanjiang North Road, High-tech Zone, Xiangyang City, Hubei Province. The leased area totals 3,131 square meters, including a building area of 2,220 (factory building) + 911 (office building) square meters. The period of renting the house starts from January 4, 2023 (start date) to February 17, 2028 (end date).

(3) Recognizing financial lease sales profits and losses as a manufacturer or distributor

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Data resources

□Applicable ☑Not applicable

Others

□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

□Applicable ☑Not applicable

Important outsourced research projects

□Applicable ☑Not applicable

9. Changes in consolidation scope

Business merger not under common control

(1) Business mergers not under common control that occurred during the current period

□Applicable ☑Not applicable

(2) Merger costs and goodwill

Only applicable ☑Not applicable

(3) The identifiable assets and liabilities of the purchased party on the purchase date

□Applicable ☑Not applicable

Full text of the 2025 Annual Report of Hubei Gongyong Pharmaceutical Co., Ltd. (4) Is there any gain or loss arising from the re-measurement of the equity held before the purchase date at fair value? Is there a transaction in which the enterprise merger was realized in stages through multiple transactions and control was obtained during the reporting period Yes ☑ No

(5) Relevant explanations on whether the merger consideration or the fair value of the identifiable assets and liabilities of the acquiree cannot be reasonably determined on the acquisition date or at the end of the current period of merger □ Applicable ☑ Not applicable

(6) Other instructions

□Applicable ☑Not applicable

Merger of enterprises under common control

(1) Business mergers under the same control that occurred in the current period

□Applicable ☑Not applicable

(2) Merger cost

Only applicable ☑Not applicable

(3) Book value of assets and liabilities of the merged party on the merger date □ Applicable ☑ Not applicable

Reverse purchase

□Applicable ☑Not applicable

Disposal of subsidiaries

Are there any transactions or events that resulted in the loss of control of subsidiaries during this period Yes ☑ No

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 situations: □ Applicable ☑ Not applicable

Others

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

10. Interests in other entities

Interests in subsidiaries

(1) Composition of enterprise groups

Unit: Yuan

Shareholding ratio

Name of subsidiary company Registered capital Main place of business Place of registration Nature of business How to obtain

direct indirect

Hubei Tongsheng

100,000,00 Hubei Danjiangkou Biotechnology Co., Ltd. under the same control Danjiangkou City, Hubei Chemical API production 100.00%

0.00 City Acquisition Company

Hubei Tongyi Medical

5,000,000. Medical technology research and development and pharmaceutical health industry under common control Xiangyang City, Hubei Xiangyang City, Hubei 100.00%

00 Services Acquisition Ltd.

Hubei Huahai Communist Party

240,000,00 Danjiangkou, Hubei

Tong Pharmaceutical Co., Ltd. Danjiangkou City, Hubei Province Chemical API production 48.37% Established

0.00 City

Company [Note 1]

Hubei common steroid

100,000,00 Wuhan, Hubei Province

Body drug research Wuhan City, Hubei Province Technology development services 100.00% established

0.00 City

Institute Co., Ltd.

Hubei common

New Medical Technology 20,000,000 Wuhan, Hubei Province

Wuhan City, Hubei Province Technology development services 100.00% Establishment of a limited company .00 City

[Note 2]

Hubei Tongchuang High

Terminal Steroid Innovations

20,000,000 Wuhan, Hubei Province

Pharmaceutical Research Institute Wuhan City, Hubei Province Technology Development Services 100.00% Established

.00 city

Ltd.

[Note 2]

America

7,190,058. Delaware, United States Pharmaceutical Technology Development and

AURORA Delaware, USA 70.00% established

43 states technical services

Co.,Ltd

Unit: Explanation on the difference between Yuan’s shareholding ratio in the subsidiary and the voting rights ratio:

[Note 1]: (1) In June 2023, upon the resolution of the shareholders' meeting, Hubei Huahai Pharmaceutical Co., Ltd. increased its registered capital from 100 million to 240 million, of which the company subscribed for an additional registered capital of 71.40 million yuan; Zhejiang Huahai Pharmaceutical Co., Ltd. subscribed for an additional registered capital of 68.60 million yuan. As of the end of the period, based on the ratio of paid-in registered capital, the company's shareholding ratio was 48.37%. (2) The reason why the 48.37% shares held by the company in Hubei Huahai Common Pharmaceutical Co., Ltd. are still included in the scope of consolidation is that the company is the largest shareholder of Hubei Huahai Common Pharmaceutical Co., Ltd. and holds a majority of voting rights in the board of directors of the invested unit and has the right to decide the financial and operating policies of the invested unit and can control the invested unit, so it is included in the scope of consolidation during the reporting period. (3) In January 2026, the company name was changed to Hubei Steling Pharmaceutical Co., Ltd.

[Note 2]: In November 2025, the registered address of Zhejiang Gongxin Pharmaceutical Technology Co., Ltd. was changed from Hangzhou City, Zhejiang Province to Wuhan City, Hubei Province, and its name was changed to Hubei Gongxin Pharmaceutical Technology Co., Ltd.

[Note 3]: As of December 31, 2025, America AURORA Co., Ltd. has not yet commenced operations.

(2) Important non-wholly owned subsidiaries

Unit: Yuan

Subsidiary name Shareholding ratio of minority shareholders Attributable to minority shareholders in the current period Announcement to minority shareholders in the current period Minority shareholders’ equity at the end of the period Full text of the 2025 Annual Report of Hubei Tongyong Pharmaceutical Co., Ltd.

Profit and loss Amount of dividends distributed

Hubei Huahai Joint Pharmaceutical Co., Ltd.

51.63% -8,367,161.11 83,137,214.31 Co., Ltd.

(3) Main financial information of important non-wholly owned subsidiaries

Unit: Yuan

Ending balance Beginning balance

Zigong

non-flow non-flow non-flow non-flow

Company name Current assets Current liabilities Current assets Current liabilities

dynamic capital dynamic negative dynamic capital dynamic negative

Said Assets Total Liabilities Total Assets Total Liabilities Total

property debt property debt

hubei

Huahai

51,97 616,6 668,5 139,0 368,3 507,3 50,81 555,5 606,3 158,0 270,9 428,9Together

5,604 21,95 97,55 22,45 32,44 54,90 6,400 37,64 54,04 12,42 40,00 52,42Pharmaceutical industry

.70 4.89 9.59 9.56 7.43 6.99 .06 6.08 6.14 3.10 0.00 3.10 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 Hubei Huahai - - - - -

1,606,040 24,745,94 Kyodo Pharmaceutical 15,938,69 15,938,69 14,083,14 23,008.85 7,873,426 7,873,426

.71 5.14 Co., Ltd. 2.75 2.75 4.37 .95 .95

(4) Significant restrictions on the use of enterprise group assets and settlement of enterprise group debts

□Applicable ☑Not applicable

(5) Financial support or other support provided to structured entities included in the scope of consolidated financial statements

□Applicable ☑Not applicable

Transactions in which the ownership share of the subsidiary changes and the subsidiary is still controlled

(1) Description of changes in owner’s equity shares of subsidiaries

□Applicable ☑Not applicable

(2) The impact of the transaction on minority shareholders’ equity and owner’s equity attributable to the parent company

□Applicable ☑Not applicable

Interests in joint ventures or associated enterprises

(1) Important joint ventures or associates

Shareholding ratio of joint ventures or joint ventures or associates

Main place of business Registration place Nature of business Name of joint venture investment company Direct Indirect

The full text of the 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd. as the accounting treatment method

law

Steroid APIs and

Shandong Tongxin Pharmaceutical Shou, Weifang City, Shandong Shou, Weifang City, Shandong

Intermediate production and sales 40.00% Equity method

Co., Ltd. Kwangshi Kwangshi

for sale

(2) Main financial information of important joint ventures

□Applicable ☑Not applicable

(3) Main financial information of important associates

Unit: Yuan

Ending balance/amount of the current period Beginning balance/amount of the previous period

Current assets 27,914,510.90 37,338,332.57 Non-current assets 230,097,447.28 198,095,788.13 Total assets 258,011,958.18 235,434,120.07 Current liabilities 103,339,147.61 99,558,444.63 Non-current liabilities 33,936,852.95 15,259,528.66 Total liabilities 137,276,000.56 114,817,973.29

minority interests

Equity attributable to shareholders of the parent company 120,735,957.62 120,658,719.91 Share of net assets calculated based on shareholding ratio 48,294,383.05 48,263,487.96 Adjustment matters

--Goodwill

--Unrealized profits from internal transactions

--Others

Book value of equity investments in associates 48,294,383.05 48,263,487.96 Equity investments in associates with publicly quoted prices

fair value

Operating income 46,008,435.67 21,050,059.61 Net profit 3,641.07 69,688.90 Net profit from discontinued operations

other comprehensive income

Total comprehensive income 3,641.07 69,688.90

Dividends received from associates during the year

(4) Summary financial information of unimportant joint ventures and associates

□Applicable ☑Not applicable

(5) Explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the company

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(6) Excess losses incurred by joint ventures or associates

□Applicable ☑Not applicable

(7) Unconfirmed commitments related to investment in joint ventures

□Applicable ☑Not applicable

(8) Contingent liabilities related to investments in joint ventures or associates

□Applicable ☑Not applicable

Important joint operations

□Applicable ☑Not applicable

Equity in structured entities not included in the scope of consolidated financial statements

□Applicable ☑Not applicable

Others

□Applicable ☑Not applicable

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 Included in this period

New additions in this period Transfer to others in this period Other changes in this period Accounting items related to assets/receipts Opening balance Non-operating income Ending balance Subsidy amount Income amount Dynamic Interest-related entry amount

150,250,75 6,655,800. 143,311,058. Deferred income 13,395,494.37 -200,000.00 Related to assets

3.02 00 65 Deferred income 750,000.00 750,000.00 Related to income

150,250,75 7,405,800. 144,061,058. Total 13,395,494.37 -200,000.00

3.02 00 65

Government subsidies included in current profits and losses

☑Applicable □Not applicable

Unit: Yuan Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report Full Text

Accounting accounts Amount for the current period Amount for the previous period

Other income 17,181,691.71 8,922,702.74 Non-operating income 130,000.00Financial expenses 242,000.00 226,800.00Total 17,423,691.71 9,279,502.74

12. Risks related to financial instruments

Various risks arising from financial instruments

(1) Risks of financial instruments

The company's main financial instruments include monetary funds, notes receivable, accounts receivable, receivable financing, other receivables, other current assets, trading financial assets, notes payable, accounts payable, other payables, short-term borrowings, non-current liabilities due within one year, long-term borrowings, lease liabilities, etc. Details of each financial instrument have been disclosed in the relevant notes. The risks associated with these financial instruments, and the risk management policies adopted by the Company to mitigate these risks, are described below. The company's management manages and monitors these risk exposures to ensure that the above risks are controlled within limited limits.

1.Risk management objectives and policies

The Company's goal in risk management is to achieve an appropriate balance between risks and returns, and strive to reduce the adverse impact of financial risks on the Company's financial performance. Based on this risk management objective, the Company has formulated risk management policies to identify and analyze the risks faced by the Company, set appropriate risk acceptance levels and design corresponding internal control procedures to monitor the Company's risk levels. The Company will regularly review these risk management policies and related internal control systems to adapt to changes in market conditions or the Company's operating activities. The Company's internal audit department also regularly or randomly checks whether the implementation of the internal control system complies with the risk management policy.

The main risks caused by the company's financial instruments are credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and commodity price risk).

The board of directors is responsible for planning and establishing the company's risk management structure, formulating the company's risk management policies and relevant guidelines, and supervising the implementation of risk management measures. The Company has formulated risk management policies to identify and analyze the risks faced by the Company. These risk management policies clearly define specific risks and cover many aspects such as market risk, credit risk and liquidity risk management. The Company regularly evaluates changes in the market environment and the Company's operating activities to determine whether to update risk management policies and systems. The Company's risk management is carried out by the Risk Management Committee in accordance with policies approved by the Board of Directors. The Risk Management Committee identifies, evaluates and avoids relevant risks through close cooperation with other business departments of the Company. The Company's internal audit department conducts regular audits on risk management controls and procedures and reports the audit results to the Company's Audit Committee.

The Company diversifies financial instrument risks through appropriate diversification of investments and business portfolios, and reduces risks concentrated in a single industry, specific region or specific counterparty by formulating corresponding risk management policies.

(1) Credit risk

Credit risk refers to the risk that the counterparty fails to perform its contractual obligations, resulting in financial losses for the company.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits, notes receivable, accounts receivable, receivable financing, other receivables, etc.

The Company's bank deposits are mainly deposited in financial institutions with good reputations and high credit ratings. The Company does not expect that there will be significant credit risk in bank deposits. For notes receivable, receivable financing, accounts receivable, and other receivables, the Company sets relevant policies to control credit risk exposure. The company evaluates the customer's credit qualifications and sets corresponding credit periods based on the customer's financial status, credit history and other factors such as current market conditions. The company will regularly monitor customer credit records. For customers with poor credit records, the company will use written reminders, shorten the credit period or cancel the credit period to ensure that the company's overall credit risk is within a controllable range.

The debtors of the Company's accounts receivable are customers located in different industries and regions. The Company continues to conduct credit assessments on the financial status of accounts receivable and purchases credit guarantee insurance when appropriate.

The Company's maximum exposure to credit risk is the carrying amount of each financial asset on the balance sheet. The Company has not provided any other guarantees that may expose the Company to credit risk.

Among the company's accounts receivable, the accounts receivable of the top five customers accounted for 44.91% of the company's total accounts receivable (2024: 31.01%); among the company's other receivables, the other receivables of the top five companies in arrears accounted for 86.10% of the company's total other receivables (2024: 92.32%).

(2) Liquidity risk

Liquidity risk refers to the risk that the company encounters a shortage of funds when fulfilling its obligations to settle by delivering cash or other financial assets.

When managing liquidity risk, the Company maintains and monitors cash and cash equivalents that management considers sufficient to meet the Company's operating needs and reduce the impact of cash flow fluctuations. The Company's management monitors the use of bank borrowings and ensures compliance with borrowing agreements. At the same time, obtain commitments from major financial institutions to provide sufficient backup funds to meet short-term and long-term funding needs.

The Company raises working capital through funds generated from operating businesses and bank and other borrowings.

At the end of the period, the financial assets, financial liabilities and off-balance sheet guarantee items held by the company are analyzed according to the maturity period of the undiscounted remaining contract cash flows as follows (unit: RMB):

Ending balance

Project

Within 1 year 1-2 years 2-3 years More than 3 years Total

Financial assets:

Monetary funds 85,845,945.61 -- -- -- 85,845,945.61 Trading financial assets 1,010.76 -- -- -- 1,010.76

18,545,191.89

Notes receivable -- -- -- 18,545,191.89

159,349,878.

Accounts receivable -- -- -- 159,349,878.22

11,207,056.1

Receivables financing -- -- -- 11,207,056.13 Other receivables 3,296,875.94 -- -- -- 3,296,875.94 Other non-current finance

assets

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

278,245,958.55

Total financial assets -- -- -- 278,245,958.55 Financial liabilities:

Short-term borrowings 229,753,280.41 -- -- -- 229,753,280.41 Notes payable 37,000,000.00 37,000,000.00 Accounts payable 424,258,451.31 424,258,451.31 Other payables 1,356,502.77 -- -- -- 1,356,502.77 non-payments due within one year 95,345,131.59

-- -- -- 95,345,131.59 Current liabilities

17,654,540.4

Other current liabilities -- -- -- 17,654,540.47

70,660,000 411,800,434.

Long-term borrowings -- 138,845,071.29 621,305,505.80

.00 51

Lease liabilities -- -- -- -- --Bonds payable -- -- 352,850,540.30 -- 352,850,540.30 Financial liabilities and contingencies

805,367,906.55 70,660,000.0 491,695,611.59 1,779,523,952.65 Total liabilities 411,800,434.51

The amounts of financial liabilities disclosed in the table above represent undiscounted contractual cash flows and therefore may differ from the carrying amounts in the balance sheet.

The maximum guarantee amount of a signed guarantee contract does not represent the amount to be paid.

(3) 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, including interest rate risk, exchange rate risk and other price risks.

interest rate risk

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 rate risk can arise from both recognized interest-bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).

The Company's interest rate risk mainly arises from long-term and short-term bank borrowings. Financial liabilities with floating interest rates expose the Company to cash flow interest rate risks, while financial liabilities with fixed interest rates expose the Company to fair value interest rate risks. The Company determines the relative proportions of fixed-rate and floating-rate contracts based on the prevailing market environment, and maintains an appropriate portfolio of fixed-rate and floating-rate instruments through regular review and monitoring.

The Company pays close attention to the impact of interest rate changes on the Company's interest rate risk. The Company currently does not adopt an interest rate hedging policy. However, management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risk if necessary. Rising interest rates will increase the cost of new interest-bearing debt and the interest expense of the company's unpaid interest-bearing debt with floating interest rates, and will have a significant adverse impact on the company's financial performance. The management will make timely adjustments based on the latest market conditions. These adjustments may involve interest rate swap arrangements to reduce interest rate risks.

The interest-bearing financial instruments held by the Company are as follows:

Item Number of current period Number of previous period

Fixed rate financial instruments -- --

Financial liabilities --Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 annual report

Including: short-term borrowings 209,600,000.00 294,303,069.17 long-term borrowings 715,425,505.80 484,919,646.66

Total 925,025,505.80 779,222,715.83

(4) Exchange 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. Exchange rate risk can arise from financial instruments denominated in foreign currencies other than the functional currency of accounting.

Exchange rate risk is mainly due to the impact of the company's financial position and cash flows on foreign exchange rate fluctuations. The company's main operations are located in China, and its main business is settled in RMB. However, the Company's confirmed foreign currency assets and liabilities and future foreign currency transactions (the denominated currency of foreign currency assets and liabilities and foreign currency transactions are mainly US dollars) still have foreign exchange risks.

As of December 31, 2025, the amounts of foreign currency financial assets and foreign currency financial liabilities held by the Company converted into RMB are listed as follows (unit: RMB):

Foreign currency liabilities Foreign currency assets

Project

Ending balance Last year's end balance Last year's end balance USD 27,063.20 19,453,489.62 44,328,690.82 36,463,912.70 Euros 356,432.36 -- -- 283,929.46

The Company pays close attention to the impact of exchange rate changes on the Company's exchange rate risk. The Company currently has not taken any measures to avoid exchange rate risks. However, management is responsible for monitoring exchange rate risks and will consider hedging significant exchange rate risks if necessary.

Other price risks

Other price risks refer to the risk of fluctuations caused by market price changes other than exchange rate risk and interest rate risk, whether these changes are caused by factors related to a single financial instrument or its issuer, or due to factors related to all similar financial instruments traded in the market. Other price risks can arise from changes in commodity prices, stock market indexes, equity instrument prices, and other risk variables

The financial products held by the Company that are classified as trading financial assets are measured at fair value on the balance sheet date. Therefore, the Company bears the risk of market changes.

Hedging

(1) The company carries out hedging business for risk management

□Applicable ☑Not applicable

(2) The company carries out qualified hedging business and applies hedging accounting

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(3) The company carries out hedging business for risk management and expects to achieve risk management objectives but does not apply hedging accounting

□Applicable ☑Not applicable

Financial assets

(1) Classification of transfer methods

☑Applicable □Not applicable

Unit: Yuan Determining transfer method of derecognition. Nature of financial assets transferred. Amount of financial assets transferred. Derecognition status.

Basis

Bill endorsement/discount Bank acceptance bill 48,170,469.79 Endorsed and discounted confirmation "6+9" bank acceptance bill has been endorsed/discount cannot be terminated Non-"6+9" bank acceptance bill endorsement/discount Bank acceptance bill 17,152,904.99

Confirm ticket

Total 65,323,374.78

(2) Financial assets derecognized due to transfer

☑Applicable □Not applicable

Unit: yuan Gain or loss items related to derecognition Method of transferring financial assets Amount of financial assets derecognized

lose

Bank acceptance bill endorsement discount 48,170,469.79

Total 48,170,469.79

(3) Asset transfer financial assets that continue to be involved

☑Applicable □Not applicable

Unit: Yuan Item Asset transfer method Amount of assets formed by continued involvement Amount of liabilities formed by continued involvement Bank acceptance bill Endorsement/discount 17,152,904.99 17,152,904.99 Total 17,152,904.99 17,152,904.99

13. Disclosure of fair value

Closing fair value of assets and liabilities measured at fair value

Unit: Yuan Ending Fair Value

Item Level 1 Fair Value Measurement Level 2 Fair Value Measurement Level 3 Fair Value Measurement

total

quantity quantity measurement

1. Continuous fair value measurement -- -- -- --

(1) Trading financial assets 1,010.76 1,010.76 1. Measured at fair value and its changes

1,010.76 1,010.76 Financial assets included in current profits and losses

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Receivables financing 11,207,056.13 11,207,056.13

Non-continuous fair value measurement -- -- -- --
Basis for determining the market price of continuous and non-continuous first-level fair value measurement items

The financial assets held by the company that are measured at fair value and whose changes are included in the current profit and loss include 1-day quoted standard bonds and Huaxia Huili Currency A Securities Investment Fund. The fair value on the balance sheet date can be determined based on the real-time transaction balance.

For continuous and non-continuous second-level fair value measurement items, the valuation techniques used and the qualitative and quantitative information on important parameters are not applicable.
Continuous and non-continuous third-level fair value measurement items, valuation techniques used and qualitative and quantitative information on important parameters. The company’s financial assets and financial liabilities measured at amortized cost mainly include: monetary funds, notes receivable, accounts receivable, other receivables, notes payable, accounts payable, and other payables. The carrying value of financial assets and financial liabilities not measured at fair value differs only slightly from fair value.
Continuous third-level fair value measurement items, reconciliation information between the opening and closing book values and sensitivity analysis of unobservable parameters. The company’s financial assets and financial liabilities measured at amortized cost mainly include: monetary funds, notes receivable, accounts receivable, other receivables, notes payable, accounts payable, and other payables. The carrying value of financial assets and financial liabilities not measured at fair value differs only slightly from fair value.
For ongoing fair value measurement items that are converted between levels during the current period, the reasons for the conversion and the policy for determining the time of conversion do not apply.
Valuation technology changes that occurred during the current period and reasons for the changes

Not applicable.

Fair value of financial assets and financial liabilities not measured at fair value

Not applicable.

Others

Not applicable.

14. Related parties and related transactions

Information about the parent company of this enterprise

□Applicable ☑Not applicable

Information about the company’s subsidiaries

For details of the company's subsidiaries, please refer to Note "10. Equity in Other Entities". .

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Information on joint ventures and associated enterprises of the enterprise

For details of the company's important joint ventures or associates, please refer to Note "10. Interests in Other Entities". .

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 Shandong Tongxin Pharmaceutical Co., Ltd. Shareholding ratio 40.00%

Other related parties

Names of other related parties: The relationship between other related parties and the company is Zu Bin, Chairman, General Manager, R&D Director

Li Minglei Director, Deputy General Manager

Chen Wenjing Deputy General Manager and Secretary of the Board of Directors, the actual controller is Zu Bin’s wife Ren Wei Employee Representative Supervisor (resigned on September 15, 2025) Jiang Jianjun Chairman of the Board of Supervisors (resigned on September 15, 2025)

Liu Xiangdong Director, Chief Financial Officer

Qi Fei Independent Director

Long Ziwu Independent Director

He Deliang Independent Director

Zhang Xinghong’s family members who are closely related to the actual controller

Zhang Xinmei’s family members who are closely related to the actual controller

Zhao Haiyan, a family member closely related to the actual controller

Chen Dekuan, a family member closely related to the actual controller

Wang Xueming Director

Cao Huan Supervisor (resigned on September 15, 2025)

Daughter of the chairman, assistant to the dean of the subsidiary research institute, Siyi, legal major of Hubei Win-Win Centenary E-Commerce Co., Ltd.

representative

The actual controller of Hubei Yuanke Biomedical Technology Co., Ltd. is Zubin Holding Company

The actual controllers of Hubei Win-Win Centenary E-Commerce Co., Ltd. are Zu Bin and Deputy General Manager Li Minglei Holding Company.

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

Related parties Contents of related transactions Amount incurred in the current period Approved transaction limit Whether the transaction limit is exceeded Amount incurred in the previous period Shandong Tongxin Pharmaceutical Co., Ltd.

Steroid raw materials 7,999,778.61 89,725,663.00 Co., Ltd.

Hubei Yuanke Biomedical

Transfer of land use rights 5,326,100.00

Pharmaceutical Technology 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 Shandong Tongxin Pharmaceutical Co., Ltd. Steroid raw materials 10,249,026.57 5,220,353.98

(2) Related entrusted management/contracting and entrusted management/outsourcing situation

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(3) Related leasing situation

□Applicable ☑Not applicable

(4) Related guarantees

The company as the guaranteed party

Unit: Yuan

Whether the guarantee has been fulfilled by the guarantor, the guarantee amount, the guarantee starting date, the guarantee expiry date

Completed May 13, 2025 May 13, 2029 No Zu Bin June 18, 2025 June 18, 2029 No 90,000,000.00

December 10, 2025 December 10, 2029 No December 26, 2025 December 26, 2029 No Zu Bin 50,000,000.00 June 9, 2025 June 9, 2029 No May 29, 2025 May 29, 2029 No. Zu Bin 44,000,000.00

October 10, 2025 October 10, 2029 No July 31, 2025 July 31, 2029 No Zu Bin 30,000,000.00

September 12, 2025 September 12, 2029 No. Zu Bin 13,500,000.00 November 10, 2025 November 10, 2029 No. Zu Bin 50,000,000.00 December 27, 2024 December 26, 2029 No August 8, 2025 August 8, 2029 No Zu Bin 370,000,000.00 August 28, 2025 August 28, 2029 No June 30, 2022 June 30, 2033 No August 29, 2025 August 29, 2029 No. Zu Bin 60,000,000.00

April 27, 2025 April 27, 2029 Whether it is Zu Bin 55,000,000.00 October 23, 2025 October 23, 2028 Whether it is Zu Bin 20,000,000.00 January 8, 2025 January 8, 2029 No: Zu Bin 20,000,000.00 May 21, 2025 May 21, 2031 No

(5) Fund lending from related parties

□Applicable ☑Not applicable

(6) Asset transfer and debt restructuring of related parties

□Applicable ☑Not applicable

(7) Remuneration of key management personnel

Unit: Yuan Item Amount for the current period Amount for the previous period Remuneration of key management personnel 3,248,633.74 3,038,868.50

(8) Other related transactions

None.

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Accounts receivable and payable from related parties

(1) Items receivable

Unit: Yuan Ending balance Beginning balance

Project name Related parties

Book balance Provision for bad debts Book balance Provision for bad debts

Shandong Tongxin Pharmaceutical Co., Ltd.

Accounts receivable 7,880,400.00 394,020.00 4,159,000.00 207,950.00 Co., Ltd.

Shandong Tongxin Pharmaceutical Co., Ltd.

Prepaid accounts 1,532,903.33

Ltd.

Total 7,880,400.00 394,020.00 5,691,903.33 207,950.00

(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 Other payables Liu Xiangdong 1,028.75 1,640.75 Other payables Zhao Haiyan 388.00 388.00 Other payables Wang Xueming 1,113.95 Other payables Zhang Xinmei 14,930.00 Other payables He Zubin 15,677.90 3,776.00 Other payables Jiang Jianjun 460.00 Other payables Li Minglei 30,173.45 11,928.26 Accounts payable Hubei Yuanke Biomedical Technology Co., Ltd. 2,326,100.00

Related party commitments

None.

Others

□Applicable ☑Not applicable

15. Share-based payment

Overall situation of share-based payment

☑Applicable □Not applicable

Unit: Yuan Grant object Granted in this period Exercise in this period Unlocked in this period Expired in this period

Category Quantity Amount Quantity Amount Quantity Amount Quantity Amount Sales personnel 42,650 152,931.65 Management personnel 98,000.00 759,482.88 R&D personnel 114,100 689,984.46 Production personnel 13,700.00 61,721.33

Total 268,450 1,664,120.32 Stock options or other equity instruments outstanding at the end of the period

☐Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Equity-settled share-based payment

☑Applicable □Not applicable

Unit: Yuan Determination method of the fair value of equity instruments on the date of grant Stock options are based on the BS model, and restricted stocks are based on the market price on the date of grant

Important parameters for the fair value of equity instruments on the grant date: historical volatility, risk-free rate of return, dividend rate

The basis for determining the number of exercisable equity instruments is determined based on the actual number of options exercised.

The cumulative amount of equity-settled share-based payments included in capital reserves 0.00 Total expenses recognized for equity-settled share-based payments in the current period 0.00

Share-based payment settled in cash

□Applicable ☑Not applicable

Share-based payment expenses for this period

☑Applicable □Not applicable

Unit: Yuan

Category of grant objects Equity-settled share-based payment expenses Cash-settled share-based payment expenses Salesperson -152,931.65

Management staff -759,482.88

R&D personnel -689,984.46

Production personnel -61,721.33

Total -1,664,120.32

Modification and termination of share-based payment
The company held the 12th meeting of the second board of directors and the 11th meeting of the second board of supervisors on March 14, 2023, and reviewed and approved the "Proposal on the First Grant of Restricted Stocks to Incentive Objects", agreed and determined that the first grant date of the company's incentive plan is March 14, 2023, and will grant 649,500 restricted shares to 39 eligible incentive objects at a grant price of 14.67 yuan/share. The equity incentive plan is unlocked in three phases, with 30% unlocked in the first phase, 30% unlocked in the second phase, and 40% unlocked in the third phase. As of December 31, 2025, all the first, second and third phases failed to be unlocked due to failure to meet the vesting conditions.
The company held the 21st meeting of the second board of directors and the 17th meeting of the second board of supervisors on March 5, 2024, and reviewed and approved the "Proposal on the Reserved Grant of Restricted Stocks to Incentive Objects", agreed and determined the reserved grant date of restricted stocks as March 5, 2024, and granted 150,500 restricted shares to 9 incentive objects who meet the grant conditions at a grant price of 14.67 yuan/share. The equity incentive plan is unlocked in two phases, with 50% unlocked in each of the first and second phases. As of December 31, 2025, all the first and second phases failed to be unlocked due to failure to meet the vesting conditions.
Others

None

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

16. Commitments and contingencies

Important commitments

Significant commitments existing at the balance sheet date: None

Contingent matters

(1) Important contingencies existing on the balance sheet date

Contingent liabilities arising from pending litigation and arbitration and their financial impact

Plaintiff Defendant Cause of action Amount involved Progress of the case Provision for estimated liabilities Hubei Gong Biotechnology Co., Ltd.

Su Zhengding Intellectual Property Dispute/In Second Instance --Company

Ai Xihang, Cheng Xian Hubei Huahai Pharmaceutical Co., Ltd. ruled that the company should pay 24,941.97

Labor dispute 24,941.97 24,941.97 Jin, Zhang Bo Company Yuan, the case is being filed in the first instance.

As of the balance sheet date, the Company has no other 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

As of the balance sheet date, the Company has no other major contingencies that need to be disclosed.

17. Events after the balance sheet date

Important non-adjustment matters

□Applicable ☑Not applicable

Profit distribution

The number of dividends to be distributed per 10 shares (yuan) 0.45 The number of dividend shares to be distributed per 10 shares (shares) 0 The number of dividends to be distributed per 10 shares (shares) 0 The number of dividends to be distributed per 10 shares (yuan) after review and approval 0.45 The number of dividends to be distributed per 10 shares (shares) 0 The number of dividends to be distributed per 10 shares (shares) 0 According to the 2025 profit distribution plan reviewed and approved at the 13th meeting of the company’s third board of directors, it is planned to exclude the repurchased shares from the company’s existing total share capital of 115,281,113 shares.

The base number is 114,211,513 shares after 1,069,600 shares, and a profit distribution plan will be distributed to all shareholders for every 10 shares.

A cash dividend of 0.45 yuan (tax included) was distributed, and a total cash dividend of 5,139,518.09 yuan (tax included) was distributed. No bonus shares were given, and the capital reserve was not converted into share capital. The remaining accumulated undistributed

Profits are carried forward and distributed in subsequent years. The above profit distribution plan still requires the full text of the company's 2025 annual report of Hubei Tongyong Pharmaceutical Co., Ltd.

Reviewed by shareholders meeting.

Sales return

None.

Description of other post-balance sheet events
Regarding not revising downward the conversion price of “joint convertible bonds”

The company held the twelfth meeting of the third board of directors on April 14, 2026, and reviewed and approved the "Proposal on Not Revising the Conversion Price of Common Convertible Bonds Downward." The company's board of directors decided not to revise the conversion price of "common convertible bonds" downward this time. At the same time, from the trading day after the board of directors reviewed and approved it to October 14, 2026, if the conditions for downward revision of the conversion price of "common convertible bonds" are triggered again, no downward revision plan will be proposed. After this period (restarting from October 15, 2026), if the conditions for downward revision of the conversion price of the "common convertible bonds" are triggered again, the company's board of directors will convene another meeting to decide whether to exercise the right to downward revision of the conversion price of the "common convertible bonds".

18. Other important matters

Correction of accounting errors in the previous period

(1) Retrospective restatement method

□Applicable ☑Not applicable

(2) Prospective applicable law

□Applicable ☑Not applicable

Debt restructuring

□Applicable ☑Not applicable

Asset replacement

□Applicable ☑Not applicable

(1) Non-monetary asset exchange

□Applicable ☑Not applicable

(2) Other asset swaps

□Applicable ☑Not applicable

Annuity plan

□Applicable ☑Not applicable

Termination of operations

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Branch information

(1) Determination basis and accounting policies of reporting segments

The company's business is single, mainly the research and development, production and sales of steroid drug raw materials. The parent company Hubei Tongyong Pharmaceutical Co., Ltd. and its subsidiary Hubei Tongyong Biotechnology Co., Ltd. are responsible for the production of starting materials and intermediates. The subsidiary Hubei Tongyong Medicine and Health Industry Co., Ltd. is responsible for selling products produced by the other two companies as well as steroid drug raw material products from units outside the trading and sales department. Hubei Huahai Joint Pharmaceutical Co., Ltd., a non-wholly owned subsidiary, established a production plant in May 2020 and is currently under construction. Hubei Kyodo Steroid Drug Research Institute Co., Ltd., Hubei Kyodo Gongxin Pharmaceutical Technology Co., Ltd., and Hubei Tongchuang High-end Steroid Innovative Drug Research Institute Co., Ltd. are all newly established subsidiaries in 2021. As of now, they mainly focus on the internal research and development business of the entrusted group, with less external business. The subsidiary America AURORAC Co., Ltd. is a newly established company in 2024 and has not yet carried out specific business. The management manages the group's business as a whole and evaluates operating results. Therefore, this financial statement does not present segment information.

(2) Financial information of reporting segments

□Applicable ☑Not applicable

(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

□Applicable ☑Not applicable

(4) Other instructions

□Applicable ☑Not applicable

Other important transactions and matters that have an impact on investors’ decision-making

□Applicable ☑Not applicable

Others
Important litigation matters

(1) Disputes over infringement of technical secrets

In April 2023, the company filed a lawsuit with the Wuhan Intermediate People's Court of Hubei Province over the trade secret infringement dispute between Su Zhengding and Hunan Xinhexin Biopharmaceutical Co., Ltd. Litigation requests: (1) Request a judgment against the first defendant, Su Zhengding, to stop infringing the company’s trade secrets, including but not limited to stopping disclosing, using or allowing others to use the trade secrets involved in the case, returning or destroying all original bacterial strains and enzyme fragments extracted therefrom, etc.; (2) Requesting a judgment against the second defendant, Hunan Xinhexin Biopharmaceutical Co., Ltd., to stop infringing the company’s trade secrets, including but not limited to Return or destroy all illegally obtained original bacterial strains and enzyme fragments extracted therefrom, stop the production and sale of infringing products, destroy inventory of infringing products, etc.; (3) Request an order that the two defendants jointly compensate for the economic losses of RMB 228 million caused by the infringement of the company’s trade secrets; (4) Request an order that the two defendants jointly bear all litigation costs and reasonable expenses for rights protection in this case.

In June 2023, the company received the "Civil Ruling" No. 143 of E01 Zhiminchu (2023). The company withdrew its application to sue Hunan Xinhexin Biopharmaceutical Co., Ltd. The court ruled to allow the plaintiff company to withdraw the lawsuit against Hunan Xinhexin Biopharmaceutical Co., Ltd., and the lawsuit against Su Zhengding continued in this case. The company filed a lawsuit with the Intermediate People's Court of Wuhan City, Hubei Province, requesting the defendant Su Zhengding to compensate for the economic losses caused by the infringement of the company's trade secrets and reasonable rights protection expenses. Full text of Hubei Gongyong Pharmaceutical Co., Ltd. 2025 Annual Report

228,000,000.00 yuan; during the litigation process, the company applied to change the reasonable expenses for compensation for economic losses and rights protection to 5,000,000.00 yuan. The second instance judgment was rejected

On appeal, the original judgment was upheld. So far, the retrial has been filed and will not have any impact on the company's finances and business.

19. 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) 16,419,226.19 59,274,804.68 1 to 2 years 3,751,159.81 3,158,140.27 2 to 3 years 1,152,500.00 3,393,501.34 More than 3 years 4,722,492.88 3,400,000.00 3 to 4 years 1,557,492.88 3,400,000.00

4 to 5 years 3,165,000.00

Total 26,045,378.88 69,226,446.29

(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

5,996,2 5,996,2

Account preparation 23.02% 100.00% 0.00

09.69 09.69

receivables

Accounts

its

Medium:

by combination

bad provision

20,049, 1,176,1 18,872, 69,226, 5,628,7 63,597, Account provision 76.98% 5.87% 100.00% 8.13%

169.19 80.61 988.58 446.29 61.11 685.18 receivables

Accounts

its

Medium:

Among them:

Combination 19,916, 1,176,1 18,739, 68,696, 5,628,7 63,068,

76.47% 5.91% 99.24% 8.19%

1: Aging 169.19 80.61 988.58 927.71 61.11 166.60 combination

combination

2: Consolidated 133,000 133,000 529,518 529,518

0.51% 0.76%

Within the range .00 .00 .50 .50 related parties

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

26,045, 7,172,3 18,872, 69,226, 5,628,7 63,597, total 100.00% 27.54% 100.00% 8.13%

378.88 90.30 988.58 446.29 61.11 685.18 Provision for bad debts on an individual basis: 5,996,209.69

Unit: Yuan Beginning balance Ending balance

Name

Book balance Bad debt provision Book balance Bad debt provision Provision ratio Reason for provision AMRI Estimated recoverable amount

132,492.88 132,492.88 100.00%

Cedarburg Lower Potential Chenggu Yangbang Biotech Estimated Recovery

143,716.81 143,716.81 100.00%

Technology Co., Ltd. Taizhou Pukang Chemical Co., Ltd. is less likely to recover the expected

5,720,000.00 5,720,000.00 100.00%

Co., Ltd. Total lower performance 5,996,209.69 5,996,209.69

Provision for bad debts by combination: ① Portfolio 1: Aging combination

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio within 1 year 16,308,726.19 815,436.31 5.00% 1 to 2 years 3,607,443.00 360,744.30 10.00% 2 to 3 years

3 to 4 years

4 to 5 years

More than 5 years

Total 19,916,169.19 1,176,180.61

Provision for bad debts by combination: ② Portfolio 2: Related parties within the scope of consolidation

Unit: Yuan ending balance

Name

Book balance Bad debt provision Provision ratio within 1 year 110,500.00

1 to 2 years

2 to 3 years 22,500.00

Total 133,000.00

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

Confirmation based on aging

Credit risk characteristics 5,628,761.11 1,176,180.61

4,452,580.50

combination

Based on individual assessment

5,996,209.69 5,996,209.69 Provision for bad debts

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Accounts receivable

Total 5,628,761.11 1,543,629.19 7,172,390.30

(4) Accounts receivable actually written off in the current period

□Applicable ☑Not applicable

(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 amount Value preparation closing balance No. 1 5,720,000.00 0.00 5,720,000.00 21.96% 5,720,000.00 No. 2 3,642,250.00 0.00 3,642,250.00 13.98% 182,112.50 No. 3 3,404,750.72 0.00 3,404,750.72 13.07% 170,237.54 Fourth place 3,394,910.40 0.00 3,394,910.40 13.03% 169,745.52 Fifth place 2,670,000.00 0.00 2,670,000.00 10.25% 267,000.00Total 18,831,911.12 0.00 18,831,911.12 72.29% 6,509,095.56

Other receivables

Unit: Yuan

Item Ending balance Beginning balance

Interest receivable 5,835,922.50 Other receivables 346,513,669.98 383,077,495.98 Total 346,513,669.98 388,913,418.48 (1) Interest receivable

Classification of interest receivable

Unit: Yuan

Item Ending balance Beginning balance

Interest on borrowings from subsidiaries 0.00 5,835,922.50 Total 5,835,922.50 2) Important overdue interest

□Applicable ☑Not applicable

Classified disclosure according to bad debt accrual method

□Applicable ☑Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Interest receivable actually written off in the current period

□Applicable ☑Not applicable

(2) Dividends receivable

Classification of dividends receivable

□Applicable ☑Not applicable

Important dividends receivable aged more than 1 year

□Applicable ☑Not applicable

Classified disclosure according to bad debt accrual method

□Applicable ☑Not applicable

Bad debt provisions accrued, recovered or reversed in the current period

□Applicable ☑Not applicable

Dividends receivable actually written off in the current period

□Applicable ☑Not applicable

(3) 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

Current accounts within the scope of consolidation 346,070,025.47 382,840,232.80 Current accounts 32,700.00

Employee reserve fund 2,000.00

Social security and provident fund 94,629.61 83,099.88 Deposit and security deposit 18,392.00 21,392.00 Collection and delivery of premiums 324,860.82 150,121.57 Total 346,542,607.90 383,094,846.25 2) Disclosure by age

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) 212,563,650.87 330,624,655.72 1 to 2 years 133,960,565.03 52,439,436.76 2 to 3 years 9,892.00 27,753.77 More than 3 years 8,500.00 3,000.00

3 to 4 years 8,500.00

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

More than 5 years 3,000.00 Total 346,542,607.90 383,094,846.25

Classified disclosure according to bad debt accrual method

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 Expected total losses in the next 12 months (credit losses have not occurred (credit losses have occurred)

credit loss

Use impairment) value)

Balance on January 1, 2025 11,661.07 5,689.20 17,350.27 Balance on January 1, 2025 in the current period

Provision for the current period 11,048.45 539.20 11,587.65 Balance on December 31, 2025 22,709.52 6,228.40 28,937.92 Basis for division of each stage and provision ratio for bad debts

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 Beginning Balance Ending Balance

Provision Recovery or transfer Write-off or write-off Others

Employee reserve fund 100.00 100.00 Deposit and security deposit 5,689.20 6,228.40 11,917.60 Others 11,661.07 5,259.25 16,920.32 Total 17,350.27 11,587.65 28,937.92

Other receivables actually written off in the current period

□Applicable ☑Not applicable

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

Hubei Common Biology Department

Internal transactions 345,369,780.88 More than 1 year 99.66%

Technology Co., Ltd.

Hubei Tongyang Medical Health

Internal transactions 689,973.10 Within 1 year 0.20%

Kang Industrial Co., Ltd.

Export transportation premiums Transportation premiums 324,860.82 Within 1 year 0.09% 16,243.04 Employees’ social security individual coverage

Social security 62,997.61 Within 1 year 0.02% 3,149.88 share

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Employees Provident Fund Individual

Social Provident Fund 31,632.00 Within 1 year 0.01% 1,581.60 Partial commitment

Total 346,479,244.41 99.98% 20,974.52

Presented in other receivables due to centralized management of funds

□Applicable ☑Not applicable

Long-term equity investment

Unit: Yuan Ending balance Beginning balance

Project

Book balance Impairment provision Book value Book balance Impairment provision Book value

501,185,000. 501,170,481. 501,170,481. Investment in subsidiaries 501,185,000.00

00 09 09 Associates and joint ventures 48,294,383.0 48,263,487.9 48,263,487.9

48,294,383.05

Corporate investment 5 6 6

549,479,383. 549,433,969. 549,433,969. Total 549,479,383.05

05 05 05

(1) Investment in subsidiaries

Unit: Yuan

Impairment allowance Changes in increases and decreases in the current period Ending balance of invested orders Beginning balance (account Impairment provision at the beginning of the period Impairment provision (book price face value) Additional investment Decrease in investment Others Ending balance

Balance Reserve Value) Hubei Common -

350,621,456. 350,000,0Biotechnology 621,456.8

85 00.00 Co. 5

Hubei Common

Medicine and health 5,000,000

5,000,000.00

Industries Co., Ltd. .00

Hubei Huahai -

92,120,277.6 91,900,00 Kyodo Pharmaceutical 220,277.6

9 0.00 Limited 9

Hubei Common

Steroid drugs 38,158,746.5 1,000,000. 39,015,00

143,746.5

The institute has 5 00 0.00 Co., Ltd.

Hubei Common

Gongxin Pharmaceutical 13,600,000.0 13,600,00 Technology Co., Ltd. 0 0.00 Company

Hubei Tongchuang

high end steroids

1,670,000Innovative drugs 1,670,000.00

.00The institute has

Ltd.

501,170,481. 1,000,000. 501,185,0 Total 985,481.0

09 00 00.00Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

(2) Investment in associates and joint ventures

Unit: Yuan Increase or decrease in the current period

Beginning of period Equity declaration End of period

Impairment Impairment investment balance Other disbursement balance under the law

Preparation Other Provision Provision Note (Account Addition Decrease Confirmation Comprehensive Cash (Accounting Period Equity Impairment Others Ending Position Face Price Investment Investment Income Dividends Face Price Balance Change Reserve Balance Value) Capital Loss Adjustment or Profit Value)

profit

1. Joint ventures

2. Joint ventures

Shandong

Tongxin 48,26 48,29

1,456 29,43

Pharmaceutical industry 3,487 4,383

.43 8.66

Limited .96 .05 Company

48,26 48,29

1,456 29,43

Subtotal 3,487 4,383 .43 8.66

.96 .05 48,26 48,29

1,456 29,43

Total 3,487 4,383 .43 8.66

.96 .05 The recoverable amount is determined based on the net amount of fair value minus disposal costs.

□Applicable ☑Not applicable

The recoverable amount is determined based on the present value of expected future cash flows.

□Applicable ☑Not applicable

Reasons for the obvious inconsistency between the aforementioned information and the information used in impairment testing in previous years or external information

Reasons for the discrepancy between the information used in the company's impairment testing in previous years and the actual situation of that year.

(3) Other instructions

Operating income and operating costs

Unit: Yuan Amount of current period Amount of previous period

Project

Revenue Cost Revenue Cost Main business 186,028,049.14 131,993,235.99 215,731,418.68 166,667,344.14 Other business 17,503,785.55 17,757,928.48 71,285,038.29 70,954,928.77 Total 203,531,834.69 149,751,164.47 287,016,456.97 237,622,272.91 Decomposition information of operating income and operating costs:

Unit: Yuan Division 1 Division 2 Total Contract Classification

Operating income Operating cost Operating income Operating cost Operating income Operating cost Business type

Among them:

Starting materials 28,307,391.88 24,213,429.74 28,307,391.88 24,213,429.74 Intermediates 157,720,657.26 107,779,806.25 157,720,657.26 107,779,806.25 Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

Other business income 17,503,785.55 17,757,928.48 17,503,785.55 17,757,928.48 By operating region

class

Among them:

Domestic 104,609,747.16 86,366,961.33 104,609,747.16 86,366,961.33 Overseas 98,922,087.53 63,384,203.14 98,922,087.53 63,384,203.14Market or customer category

Type

Among them:

Contract type

Among them:

transferred by merchandise

time classification

Among them:

According to contract period

class

Among them:

By sales channel

class

Among them:

Direct sales 203,531,834.69 149,751,164.47 203,531,834.69 149,751,164.47 Distribution

Total 203,531,834.69 149,751,164.47 203,531,834.69 149,751,164.47Other instructions

Time of revenue recognition Core raw materials of steroid drugs Processing fees Other services Other business revenue is recognized at a certain point in time 186,028,049.14 -- -- 16,936,592.94 is recognized within a certain period of time -- -- -- --

Total 186,028,049.14 -- -- 16,936,592.94 [Note 1]: The above table does not include lease income recognized in "Accounting Standards for Business Enterprises No. 21 - Lease".

Investment income

Unit: Yuan

Item Amount for the current period Amount for the previous period

Long-term equity investment income calculated using the equity method 1,456.43 27,875.56 Bill discount interest -226,250.00 Total 1,456.43 -198,374.44

Others

□Applicable ☑Not applicable

Full text of Hubei Tongyong Pharmaceutical Co., Ltd. 2025 Annual Report

20. Supplementary information

Detailed statement of non-recurring profits and losses for the current period

☑Applicable □Not applicable

Unit: Yuan

Item Amount Description Profit and loss from disposal of non-current assets -1,437,181.19

Government subsidies included in the current profit and loss (closely related to the company's normal operating business, in line with

Comply with national policies and regulations, enjoy according to determined standards, and have a continuous impact on the company’s profits and losses 4,028,197.34

(Except for government subsidies that affect)

In addition to effective hedging business related to the company's normal business operations, non-financial enterprises

Gains and losses from changes in fair value of financial assets and financial liabilities held by the enterprise and disposal 0.13

Gains and losses arising from financial assets and financial liabilities

Other non-operating income and expenses other than the above items -4,229,798.30

Profit and loss from estimated liabilities unrelated to the company's main business -24,941.97

Less: Income tax impact 82,105.22

Amount of impact on minority shareholders’ equity (after tax) 114,713.97

Total -1,860,543.18 --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.

☑Applicable □Not applicable

Item Amount involved (yuan) Reason for withholding and paying personal tax refunds 29,440.37 Continuously occurring every year, not contingency, can be recognized as recurring gains and losses Other income 13,395,494.37 Government subsidy amortization and value-added tax deduction related to assets/income 2,499,542.79 Continuously occurring every year, not contingency, can be recognized as recurring gains and losses

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 profit attributable to the company's ordinary shareholders -8.38% -0.64 -0.64 After deducting non-recurring gains and losses, net profit attributable to the company's ordinary shareholders

-8.17% -0.62 -0.62 Net profit for common 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

Full text of the 2025 annual report of Hubei Gongyong Pharmaceutical Co., Ltd. (2) Differences in net profit and net assets in financial reports disclosed in accordance with both overseas 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.

□Applicable ☑Not applicable

Others